Regulation 5 Amendment of regulation D3

Regulation D3 (further contributions by employing authorities in respect of excessive pay increases)^f1, is amended as follows.

In sub-paragraph (b) of paragraph (3)—

In sub-paragraph (b) of paragraph (4)—

For sub-paragraph (b) of paragraph (5), substitute—

“(b)

the member’s pensionable pay for the year immediately preceding Year 3 increased by the aggregate of 4.5% and the percentage (if any) by which the consumer prices index for the February before the start of Year 3 is higher than it was for the previous February.”.

In Step 6 (a) in paragraph (6), for “Amount C” substitute “Amount D”.

For paragraph (17), substitute—

“(17)

For the purposes of this regulation an increase in pensionable pay during Year 3, Year 2 or, as the case may be, Year 1 is to be ignored where the Secretary of State is satisfied it arises as a result of—

(a)

the member taking up a new employment with a new employer: provided the Secretary of State is satisfied that the employer in question is a new employer;

(b)

the ending of a salary sacrifice arrangement made before 1st April 2014: for these purposes a salary sacrifice arrangement is one under which the member gives up the right to receive an amount of pensionable pay in return for the provision of a benefit in kind including, but not limited to, a benefit consisting of a motor car or other vehicle, meals, care or vouchers.”.