Explanatory note

These Regulations amend the Pensions Increase (Federated Superannuation System for Universities) Regulations 1972, which provide for the payment of allowances corresponding to pension increases under the Pensions (Increase) Act 1971 to persons who have been subject to the Federated Superannuation System for Universities (F.S.S.U.) and who have retired from the civil service. The principal changes are:—

(1) The Regulations provide that, in the case of certain persons who have retired on or after 1st April 1972, their “appropriate pension rate”, on which their allowances are based, is to be calculated in accordance with the principal civil service pension scheme on the year's salary in their last three years of service which is most favourable to them, instead of on the average of their salary for such last three years.

(2) The Regulations provide for a more favourable method of calculation of a person's appropriate pension rate in a case where after attaining the age of sixty he continues to serve in the civil service under F.S.S.U. at a reduced rate of salary.

(3) The Regulations provide that certain war service and temporary service in the civil service, in respect of which a contribution has been invested in a single premium policy under F.S.S.U., is to be included, at half its actual length, in the service on which a person's appropriate pension rate is to be calculated.

In accordance with the power conferred by section 13(5) of the 1971 Act, the Regulations provide for any increase in benefit attributable to the change described in paragraph (1) above to take effect from 1st April 1972, and for any increase in benefit attributable to the changes described in paragraphs (2) and (3) above to take effect from 1st September 1971.