1. In this Schedule—
“amount of extra pension” means the amount of accrued added pension at any time;
“appropriate pay period” means the pay period that the scheme manager considers appropriate;
“notice of election” has the meaning given in paragraph 5;
“overall limit of extra pension” has the meaning given in paragraph 2;
“periodical payment period” means the period for which periodical payments for added pension payments are payable;
“period of service” in relation to this scheme, means a continuous period of pensionable service under this scheme;
“the relevant day” means the day on which the lump sum is received by the scheme manager;
“the relevant scheme year” means the scheme year in which the relevant day falls.
2.—(1) The overall limit of extra pension is—
(a)£6,500 for any scheme year ending before 1st April 2016; and
(b)for any scheme year beginning on or after 1st April 2016—
(i)the overall limit of extra pension determined by the Treasury in respect of that scheme year as published before the start of that scheme year, or
(ii)if no such determination is made, the amount calculated under sub-paragraph (2).
(2) The amount is the amount to which the annual rate of a pension of an amount equal to the overall limit of extra pension for the previous scheme year would have been increased under the PIA 1971 if—
(a)that pension were eligible to be so increased; and
(b)the beginning date for that pension were the first day of the previous scheme year.
3. An added pension election may not be exercised by an active member if the amount of extra pension would exceed the overall limit of extra pension if that election were made.
4.—(1) At any given time, the total amount of accrued added pension in a member’s added pension account may not exceed the overall limit of extra pension.
(2) If a member has elected to make periodical payments for added pension, the scheme manager may by written notice to the member cancel the election if it appears to the scheme manager that the overall limit of extra pension will be exceeded if the member continues to make the periodical payments.
(3) If the scheme manager cancels the election, the periodical payments cease to be payable from the next pay period beginning after the date specified in the notice of cancellation.