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Paragraph 4

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

(1)

The aggregate pension payable on retirement at or before the member's NRD must not exceed one sixtieth of the member's final pay, multiplied by his total membership.

(2)

But for a pension payable under regulation 27 the limit is one sixtieth of the member's final pay, multiplied by the total membership the member would have had if he had continued as an active member until his NRD.

(3)

For a pension payable under regulation 31, if it results in a higher sum, for the maximum under sub-paragraph (1) there is substituted an amount equal to the amount that would be the maximum under that sub-paragraph if the member had remained an active member until his NRD (taking into account any reduction for retained benefits), multiplied by the fraction of which—

(a)

the numerator is—

(i)

the member's total membership, or

(ii)

40 years,

whichever is less, and

(b)

the denominator is—

(i)

his total membership, assuming he had remained an active member until his NRD, or

(ii)

40 years,

whichever is less.

(4)

But sub-paragraphs (1) and (2) do not apply to benefits under Chapter IV of Part III.

(5)

The aggregate pension payable on retirement after the member's NRD must not exceed—

(a)

one sixtieth of the member's final pay, multiplied by his total membership;

(b)

one sixtieth of the member's final pay at his NRD, multiplied by his total membership at his NRD—

(i)

with such an increase as an actuary appointed by the appropriate administering authority considers appropriate in view of the period of delay in payment between his NRD and the actual date the pension becomes payable, or

(ii)

adjusted to reflect any increase in the general level of retail prices obtaining in Great Britain during that period;

(c)

one sixtieth of the member's final pay, multiplied by his increased period of membership,

whichever is the greatest.

(6)

For sub-paragraphs (1) to (5) a member who is entitled to be paid a lump sum on retirement is treated as if he were entitled instead to be paid a pension on retirement of an annual amount equal to one twelfth of the lump sum.

(7)

A member's increased period of membership is the sum of—

(a)

his total membership ending with his NRD, and

(b)

his total membership after his NRD,

but must not exceed 45 years.