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Regulation 4 Contributions credit

Original text. Later amendments are not shown.

(1)

This regulation applies to any office-holder to whom Part I applies by virtue of section 1(1)(b), (c) or (d).

(2)

In this Regulation a person’s “pension-capped salary” for any period of 12 months is so much of his aggregate salary in that period as, within the meaning of section 590C(1) of the Income and Corporation Taxes Act 1988f1(earnings cap) does not exceed the permitted maximum for the relevant year of assessment, except that for any period before the year of assessment 1988 − 1989 the earnings cap shall be determined by reference to the table set out in the Schedule to these Regulations.

(3)

Where an office-holder has only a last existing scheme he shall be credited with a contributions credit calculated in accordance with the formula

(A/B)×C

where —

a

  • A is the amount of contributions actually made into the last existing scheme;

    • b

  • subject to paragraph (5)(c), B is the amount of contributions that the office-holder would have made throughout the length of the notional service (ending on the last day of service while a member of the last existing scheme) at the rate of 3% of the pension-capped salary of the office-holder during his period of service while a member of the last existing scheme;

    • c

  • C is the notional service.

    • (4)

    Where an office-holder has both a last existing scheme and one or more former schemes, he shall be credited with a contributions credit calculated in accordance with the formula

    (A/B)×C

    where —

    a

  • A is the total amount of the contributions made into the last existing scheme and any former scheme;

    • b

  • subject to paragraph (5)(c), B is the total amount of the contributions calculated in accordance with paragraph (3)(b) in respect of the last existing scheme and the contributions that the office-holder would have paid throughout the length of the notional service that relates to any former scheme (ending on the day immediately prior to the first day of service while a member of the last existing scheme) at the rate of 3% of the pension-capped salary of the office-holder during his period of service while a member of any former scheme;

    • c

  • C is the combined periods of notional service that relate to the existing scheme and any former scheme.

    • (5)

    For the purposes of the calculations in paragraphs (3) and (4) —

    (a)

    the number of days in C shall be expressed in decimal form to four decimal places by dividing them by 365;

    (b)

    the decimal part of the product

    (A/B)×C

    shall be converted back into days by multiplying it by 365;

    (c)

    where, in paragraphs (3)(b) and (4)(b), the length of notional service exceeds the length of service of the office-holder such that the office held had not yet been created, then, in respect of the excess period during which the office did not exist, the office-holder shall be deemed to have held the office which he held at the date his service commenced at the salary attributable to that office at that date.

    (6)

    The contributions credit arrived at by applying the formula shall be rounded up to the next full day.

    Annotations

    Footnotes

    f1

    1988 c. 1.