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Article 6 Meaning of “final relevant earnings”

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

For the purposes of the Scheme “final relevant earnings”, in relation to any person, means the greatest amount that is the person’s total relevant earnings for 365 consecutive days falling within the period of three years ending with the last day of his relevant service.

(2)

In paragraph (1) “relevant earnings”, in relation to a person in service as a member of the armed forces, means—

(a)

basic pay in the service by virtue of which the person is a member for a person of his rank and seniority, and

(b)

any other amount if and to the extent that the Secretary of State has determined that it is to be treated as relevant earnings for this purpose.

  • This is subject to paragraph (4).

(3)

Accordingly, subject to paragraph (2)(b), “relevant earnings” does not include—

(a)

any allowances,

(b)

any additional amounts payable in respect of particular qualifications or duties, the location of service or the conditions in which service is temporarily performed, or

(c)

without prejudice to paragraphs (a) and (b), any additional amounts payable to medical or dental officers as such.

(4)

“Relevant earnings” does not include any description of payment that the Secretary of State has determined is not to be treated as relevant earnings, unless it is expressly provided to the member on the basis that it is relevant earnings for this purpose.

(5)

If the person was not in service as a member of the armed forces during any period of 365 consecutive days falling within the period of three years mentioned in paragraph (1), that paragraph applies as if it referred to the person’s annualised relevant earnings in the period of relevant service ending with the last day of his relevant service as such a member.

(6)

The person’s annualised relevant earnings in a period of service are the amount given by the formula—

RE×365N

where—

  • RE is the person’s relevant earnings for the period, and

  • N is the number of days in the period for which relevant earnings were received.

(7)

If at any time during the period of three years mentioned in paragraph (1) the person is treated under rule A.3(1) of the AFPS 2005 as receiving assumed pay, or would be if he were a member of that Scheme, for the purposes of that paragraph his relevant earnings for each day during that period when he is so treated include the assumed pay for that day.