Regulation E15 Reduction of retirement pension in the case of certain re-employed pensionersI1
England, Wales and Scotland
Subject to paragraph (12), this regulation applies to a person who, since becoming entitled to a retirement pension in relation to a former employment, has entered a new employment with any scheduled body, other than an employment by virtue of which he is entitled to participate in benefits provided under regulations made under section 9 of the Act of 1972 (superannuation of teachers).
In paragraph (3)—
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A is the annual rate of remuneration of the former employment,
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B is the amount (if any) by which, immediately before the first day of the new employment, A would have been increased if it had been the rate of an official pension, within the meaning of the Pensions (Increase) Act 1971f1, beginning on and payable from the day after the last day of the former employment,
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C is the annual rate of remuneration of the new employment,
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D is the reduced rate of the retirement pension, and
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E is the amount (if any) by which D would, immediately before the first day of the new employment, have been increased under the Pensions (Increase) Act 1971 if it had then been the rate of the retirement pension, assuming that that pension had by then qualified for increases under that Act,
and in paragraph (5), A, B and C have the same meanings as in paragraph (3) and—
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F is the annual rate of remuneration of the concurrent employment on the last day of that employment, and
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G is the amount (if any) by which, immediately before the first day of the new employment, F would have been increased if it had been the rate of an official pension, within the meaning of the Pensions (Increase) Act 1971, beginning on and payable from the day after the last day of the concurrent employment.
Subject to paragraphs (4), (5), (11) and (13), while the person holds the new employment the annual rate of the retirement pension is reduced—
if C equals or exceeds (A + B), to zero, and
in any other case, by the amount (if any) which is necessary to secure that (C + D + E) does not exceed (A + B).
This paragraph applies where within the last 12 months of the former employment the person held another concurrent employment with any scheduled body, former local authority or local Act authority, has ceased to hold the concurrent employment without becoming entitled in relation to it to a retirement pension, and—
has—
ceased to hold the concurrent employment before ceasing to hold the former employment, and
entered the new employment within 12 months after ceasing to hold the concurrent employment, or
has ceased to hold the concurrent employment after ceasing to hold the former employment.
Where paragraph (4) applies—
if the person does not devote substantially more of his time to the new employment than he devoted to the concurrent employment during the 12 months before he ceased to hold it, the annual rate of the retirement pension is not reduced, and
in any other case, the annual rate of the retirement pension is reduced by the amount (if any) by which the aggregate of that rate and C exceeds A + B + F + G.
For the purposes of this regulation the annual rate of remuneration of the former employment is, subject to paragraph (7), to be ascertained in accordance with the Table below.
TABLE
| Source of entitlement to the retirement pension | Annual rate of remuneration | |
|---|---|---|
| Fixed-rate emoluments | Fees | |
| These regulations or the 1974 regulations | Rate on last day of relevant period for the purposes of regulation E22 | Average rate during period by reference to which pensionable remuneration fell to be calculated under regulation E22(10) |
| Other | Rate on last day of employment | Average rate during period, within last 3 years of employment, during which fees were receivable |
For the purposes of paragraph (6), where the person's remuneration was at any material time reduced or discontinued by reason of his absence from duty, and either the absence was due to illness or injury or he made contributions or payments under section 6(5) of the Act of 1937 or regulation C3 or C4, then—
any reduction or discontinuance of fixed-rate emoluments is to be disregarded, and
any fees are to be averaged over a period of the same length as the period mentioned in the Table but ending immediately before the reduction or discontinuance.
For the purposes of this regulation the annual rate of remuneration of the new employment is, subject to paragraph (9), to be ascertained in accordance with the Table below.
TABLE
| Nature of remuneration | Annual rate of remuneration |
|---|---|
| Fixed-rate emoluments | Rate on first day of employment |
| Fees | (1) Where fees were receivable in the former employment, the annual rate of those fees ascertained in accordance with paragraph (6) |
| (2) Where no fees were receivable, a rate agreed by the person and the body employing him or, in default of agreement, determined by the Secretary of State |
For the purposes of paragraph (8), if fees were receivable in the former employment and are receivable in the new employment and H is greater than J, where—
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H is the annual rate of remuneration of the former employment, and
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J is the annual rate of remuneration of the new employment ascertained in accordance with the Table,
the annual rate of the fees receivable in the new employment, ascertained in accordance with the Table, is to be multiplied by
lf—
the person's contractual hours in a part-time new employment are altered, or
he is transferred to another post under the same employing body at an altered remuneration,
this regulation applies as if he had again entered a new employment.
If this regulation applies in relation to two or more retirement pensions, each is reduced in proportion to its amount.
This regulation does not apply to a person who has become entitled to a retirement pension payable to him in respect of service rendered without a disqualifying break of service—
as a designated employee and a contributory employee, or
as a designated employee, a contributory employee and a pensionable employee,
unless, within 3 months after entering his new employment, he elects by notice in writing to the employing authority that it is to apply to him.
Where the new employment commenced before 6th January 1986, this regulation has effect with the substitution for paragraph (3) of the following:
“(3)Subject to paragraphs (4), (5) and (11), while the person holds the new employment the annual rate of the retirement pension is reduced by the amount (if any) by which it exceeds A + B - C.”.
In this regulation, “retirement pension” includes an annual pension under the former regulations and a retirement pension under the 1974 regulations.
Annotations
Commencement
Footnotes
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