OpenLegislation

Paragraph 5 I1

England, Wales and Scotland Not yet in force

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

(1)

Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant for a Class B member on retirement at or before NRD must not exceed the lesser of–

(a)

three times the initial pension paid to the member under Part II and Part III, excluding Chapter IV of Part III; and

(b)

one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(2)

Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant on retirement at NRD for a Class C member must not exceed the lesser of–

(a)

if the member has less than 20 years service, his final remuneration multiplied by the fraction set out in the table below–

Years of service to NRD80ths of final remuneration for each year
1 to 83
930
1036
1142
1248
1354
1463
1572
1681
1790
1899
19108
(b)

one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(3)

If it results in a higher sum than the maximum under sub-paragraph (1) or (2), the maximum aggregate retirement grant is three eightieths of the member’s final remuneration multiplied by each year of service or 40 years if less.

(4)

However for a retirement grant payable under regulation 26, the limit is the maximum retirement grant payable under sub-paragraph (1), (2) or (3) assuming the member had continued as an active member until his NRD.

(5)

The aggregate benefit payable to a Class C member by way of retirement grant before NRD is the greater of–

(a)

three eightieths of the member’s final remuneration multiplied by his years of service or 40 years if less; and

(b)

the maximum lump sum that could have been payable on retirement at NRD under sub-paragraph (2) multiplied by the fraction of which–

(i)

the numerator is the member’s actual period of local government employment prior to leaving the scheme or 40 years if less, and

(ii)

the denominator is his years of service assuming he had remained an active member until his NRD or 40 years if less.

  • This amount may be increased in line with any increase in the retail prices index between the relevant date and the date on which the benefit becomes payable.

(6)

The aggregate benefit payable to a Class B member or a Class C member by way of a retirement grant on retirement after NRD must not exceed the greatest of–

(a)

the amount payable under sub-paragraph (1), (2) or (3) on the basis that the actual retirement date was the member’s NRD;

(b)

the amount that could have been payable under sub-paragraph (1), (2) or (3) on retirement at NRD together with interest in respect of the period of the delay in payment between his NRD and the actual date of payment;

(c)

three eightieths of the member’s final remuneration multiplied by his increased period of membership.

(7)

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.

(8)

The benefits payable by way of lump sum on the death of an active or deferred member must not exceed four times his final remuneration (ascertained disregarding paragraphs 1(7)(d) and (e) and (6)) less any lump sum death in service retained benefits (other than a refund of the member’s contributions and any interest on such contributions or, if greater, £5,000.

Annotations

Commencement

I1

Sch. 4 para. 5 in force at 1.4.1998, see reg. 1