Regulation 54 Annual rate of ill-health pension: active members with permanent serious ill-healthI1

The annual rate of an ill-health pension payable under regulation 51 (entitlement to ill-health pension: active member with permanent serious ill-health) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member), in the same way as the annual rate of retirement earned pension is calculated, but—

In this regulation—

• “the earnings-related part”, in relation to the member’s retirement earned pension, means the proportion of that pension not attributable to a transferred pension;

• “the enhancement value” means multiplying A by B where—

  1. (a)

     A is the member’s retirement earned pension divided by the sum of—

     1. (i)

        for all years up to the last active scheme year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and

     2. (ii)

        in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and

  2. (b)

     B is the greater of—

     1. (i)

        the number of years (or parts of years) up to a maximum of 25 years which would have remained, if the active member had continued in scheme employment up to normal pension age; or

     2. (ii)

        X plus N (both expressed as a number of years), where

        1. (aa)

           X is the sum of—

           1. (i)

              for all years up to the last active year, the number of scheme years (or parts of scheme years) for which amounts of earned pension were specified in the active member’s account; and

           2. (ii)

              in the last active scheme year, the number of calendar days (expressed as a proportion of a year), where the member was eligible for active membership; and

        2. (bb)

           N is half of the number of years (or parts of years) from the last day of pensionable service until normal pension age.

The annual rate of any added pension payable under regulation 51 (entitlement to ill-health pension: active member with permanent serious ill-health) is calculated in accordance with regulation 45 (annual rate of pension payable to active member who becomes pensioner member) in the same way as the annual rate of retirement added pension is calculated, but any early payment reduction is not subtracted.

The annual rate of any club transfer pension payable under regulation 51 is calculated in accordance with regulation 45 in the same way as the annual rate of club transfer pension is calculated.

For members who have served on flexible terms, when calculating the enhancement value, for the purposes of A and X—