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Regulation 3.F.12 Meaning of “Capped increase to pensionable earnings”F1F4

England and Wales

(1)

This regulation applies if—

(a)

the Secretary of State accepts a transfer value payment in respect of a member under a transfer to which the public sector transfer arrangements apply, and

(b)

the service in respect of which the transfer is made was, or included, capped service in employment to which the Scheme by which the payment is made (“the transferring Scheme”) applied.

(F22)

For the purposes of this Part—

(a)

any part of the increase to pensionable earnings that the member is entitled to count under regulation 3.F.10(2)(a), and

(b)

which is the result of capped service in employment to which the transferring scheme applied,

is a capped increase to pensionable earnings.

(3)

For the purposes of paragraph (1)(b), the service in respect of which the transfer is made was capped service so far as—

(a)

in the case of service before 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) of the Income and Corporation Taxes Act 1988f1, or

(b)

in the case of service on or after 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under that section was calculated for tax years ending before that date.

(4)

For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the member’s remuneration in any tax year would have exceeded the amount of the limit.

(F35)

In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.10.

Annotations

Textual amendments

F1

Words in Regulations substituted (6.11.2023) by The Health and Care Act 2022 (Further Consequential Amendments) (No. 2) Regulations 2023 (S.I. 2023/1071), reg. 1(1), Sch. para. 1

F2

Reg. 3.F.12(2) substituted (1.10.2009) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2009 (S.I. 2009/2446), regs. 1(2), 92(3)

F3

Reg. 3.F.12(5) inserted (1.10.2009) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2009 (S.I. 2009/2446), regs. 1(2), 92(4)

F4

Words in reg. 3.F.12 heading substituted (1.10.2009) by The National Health Service Pension Scheme, Injury Benefits and Additional Voluntary Contributions (Amendment) Regulations 2009 (S.I. 2009/2446), regs. 1(2), 92(2)

Footnotes

f1

1984 c. 8 (Tynwald).