Regulation 16 Additional factors governing payment of retirement compensation
Where retirement compensation is payable under any one of regulations 17, 18 and 19, compensation shall not be payable under any other of those regulations.
If a person has attained the age of 40 at the date on which he lost his employment or suffered a diminution of his emoluments, the Secretary of State, in calculating the amount of the retirement compensation payable to that person, shall credit him with an additional period of service on the following basis, namely—
2 years, whether or not he has completed any years of service after attaining the age of 40,
2 years for each of the first 4 years of his reckonable service between the date when he attained the age of 40 and the date of the loss or diminution, and
one year for each such year of that reckonable service after the fourth, but the additional period so credited shall not exceed the shortest of the following periods, namely—
a period beginning on the day immediately following the date of the loss or diminution and ending on the date on which he would attain normal retiring age; or
a period equivalent to his reckonable service; or
fifteen years;
and the retirement compensation shall not exceed any maximum pension and retiring allowance prescribed by the last relevant pension scheme.
In calculating the amount of any retirement compensation payable to him, any period so added shall be aggregated with any period entailing reduction of the relevant pension or retiring allowance as a consequence of the provisions of section 30 of the National Insurance Act 1965.
The benefit in respect of the additional period described in paragraph (2) shall be calculated at the same rate as is applicable for the day immediately preceding the loss or diminution, except that where the last relevant pension scheme provides benefits at an enhanced rate in consequence of the nature of an officer's duties, the additional period of service shall be treated as if it were a period during which he was not engaged on such duties.
When retirement compensation is awarded, or when an award is reviewed under regulation 31, the additional compensation payable in consequence of any period credited to a person under paragraph (2) may be reduced or withheld to the extent that the Secretary of State may think reasonable having regard to the pension scheme (if any) associated with any further employment obtained by that person.
If the amount of any benefit to which a person might have become entitled under his last relevant pension scheme could have been supplemented at the discretion of the authority administering the pension scheme or of any other body, the Secretary of State may supplement, to an extent not exceeding that to which the person's accrued pension, accrued retiring allowance, accrued incapacity pension or accrued incapacity retiring allowance might have been supplemented, the corresponding component of any retirement compensation payable to him.
If under his last relevant pension scheme a person would have been entitled to surrender a proportion of any pension which might have become payable to him in favour of his spouse or any dependant, then, if he so desires and informs the Secretary of State by notice in writing accordingly within one month after becoming entitled to retirement compensation under these regulations, he may surrender a proportion of so much of the said compensation as is payable by way of an annual sum on the like terms and conditions and in consideration of the like payments by the Secretary of State as if the said annual sum were a pension to which that person had become entitled under the said pension scheme.
In calculating for the purposes of regulation 17 or 18 the amount of the annual sum which is equal to a person's accrued pension, no account shall be taken of any reduction falling to be made in that pension as a consequence of the provisions of any enactment relating to national insurance until the person reaches the age at which under his last relevant pension scheme the pension would have been so reduced.