Paragraph 3 Qualifying members receiving pensions from the qualifying pension schemeF1

This paragraph applies to—

The annual payment payable to a qualifying member to whom this paragraph applies shall be—

F4 $(\text{expected pension}x0.9)-\text{actual pension}$.

Subject to sub-paragraphs (4) and (5) and paragraphs 4A and 4B, in this paragraph “expected pension” means—

In sub-paragraph (3)(b)(ii) F9..., the revaluation amount is—

In sub-paragraph (3)(c)(ii) and (iii), the revaluation amount is—

In F12sub-paragraphs (3A) and (3AA), “the revaluation percentage” means the lesser of—

The method for determining the percentage increase in the general level of prices ... during the revaluation period determined in accordance with sub-paragraph (3)(b)(ii) is—

where—

• A is the level of the retail prices index for March 2004; and

• B is the level of the retail prices index for the month two months before the month during which the relevant qualifying pension scheme began to be wound up.

The method for determining the percentage increase in the general level of prices ... during the revaluation F16periods determined in accordance with sub-paragraph (3)(c)(ii) F17and (iii)(aa) is—

where—

• A is the level of the retail prices index for the month which falls two months before the month F18in which the last day of that revaluation period falls; and

• B is the level of the retail prices index for the month which falls two months before the month during which the relevant qualifying pension scheme began to be wound up.

The method for determining the percentage increase in the general level of prices during the revaluation period determined in accordance with sub-paragraph (3)(c)(iii)(bb) is—

where—

• A is the general level of prices for the month which falls two months before the month during which the qualifying member attains normal retirement age; and

• B is the general level of prices for January 2011.

In sub-paragraph (3B)(b), “the maximum revaluation rate” in relation to the revaluation period F20or periods is—

Where the scheme manager is satisfied that it is not possible for F24it to determine the annual rate of the pension for the purposes of sub-paragraph (3) having regard to all the information available to it, F25it shall determine that annual rate, having regard to such matters as it considers relevant.

Where—

the scheme manager shall determine the expected pension having regard to the expected pension which would have been determined in accordance with paragraph 4A if that paragraph had applied and to such other matters as it considers relevant.