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Paragraph 5

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

(1)

The aggregate benefit payable by way of lump sum on retirement at or before NRD—

(a)

in the case of a Class B member or a Class C member with a total membership period of less than 20 years, must not exceed three eightieths of the member's final pay, multiplied by his total membership;

(b)

in the case of a Class B member must not be calculated by reference to final pay exceeding £100,000; and

(c)

in the case of a Class C member whose total membership is at least 20 years, must not exceed one and a half times his final pay.

(2)

But for a lump sum payable under regulation 27 the limit is three eightieths 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)

But sub-paragraph (2) does not apply to benefits under Chapter IV of Part III.

(4)

The aggregate benefit payable by way of lump sum on retirement after NRD must not exceed—

(a)

three eightieths of the member's final pay, multiplied by his total membership;

(b)

three eightieths of the member's final pay at his NRD, multiplied by his total membership at his NRD, together with interest in respect of the period of delay in payment between his NRD and the actual date of payment;

(c)

three eightieths of the member's final pay, multiplied by his increased period of membership,

whichever is the greatest.

(5)

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

(a)

his total membership ending with his NRD, and

(b)

his total membership after his NRD,

but must not exceed 45 years.

(6)

The benefits payable by way of lump sum on the death of an active or deferred member must not exceed four times his final pay or, if greater, £5,000.

(7)

If a sum other than £100,000 is specified by the Treasury as respects any year for section 590(3) of the Taxes Act (as that section continues to have effect for Class B members by virtue of paragraph 18(2) of Schedule 6 to the Finance Act 1989f1), then sub-paragraph (1)(b) has effect with the substitution for the reference to £100,000 of a reference to that sum.

Annotations

Footnotes

f1

1989 c. 26.