Regulation 103 Reduction of pension

(1)

If the condition in paragraph (2) is met, the amount of the old service pension for a scheme year is reduced.

(2)

The condition is that the employed pensioner's relevant income for the scheme year exceeds the employed person's previous earnings.

(3)

The amount of the reduction under paragraph (1)—

(a)

is equal to the excess; but

(b)

must not exceed the enhancement amount.

(4)

Relevant income and the enhancement amount must be construed in accordance with regulation 104.

(5)

Previous earnings must be construed in accordance with regulations 105 and 106.

(6)

For the purpose of calculating the reduction to be made under paragraph (1) in respect of any part of a scheme year, the amount of the employed pensioner's previous earnings must be reduced proportionately.

(7)

If the employed pensioner has a guaranteed minimum under section 14 of the 1993 Act M1 in relation to the old service pension, nothing in this regulation requires the reduction of that pension below the amount of the guaranteed minimum.

Annotations

Marginal citations

M1: Section 14 has been amended by sections 151 and 177 of, and paragraphs 27(a) and (b) of Schedule 5 and Part 3 of Schedule 7 to, the Pensions Act 1995 (c.26), section 1(1) of, and paragraph 38(a) to (c) of Schedule 1 to, the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2), section 456 of, and paragraphs 1 and 22(1) and (3) of Schedule 11 to, the Proceeds of Crime Act 2002 (c.29), and is prospectively amended by section 24(1) of, and paragraphs 1 and 15(1) to (3) of Schedule 13 to, the Pensions Act 2014 (c.19).