Regulation 2.H.4 Meaning of “relevant income”

The employed pensioner’s relevant income for a F1financial year is the aggregate of—

The enhancement amount, in relation to an old service pension, is the difference between—

If the old service pension is payable under 2.D.8 or 2.D.10 (ill-health pensions) to an employed pensioner who had not reached the age of 55 at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)—

If the old service pension is a tier 2 ill-health pension, for the purposes of paragraph (2)(b), only the employed pensioner’s actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 2.D.4.

If the employed pensioner exercised the option under regulation 2.D.14 (general option to exchange part of pension for lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

The resulting reduction in the pension is taken into account for the purposes of this regulation if the employed pensioner—

References in this regulation to the amount of a pension for any financial year are to its amount for that year after any increases payable under the Pensions (Increase) Act 1971^f1 in respect of that pension, including the increases that would have been payable in respect of any amount not paid because of a reduction ignored under paragraph (5).