Regulation 5 Notional annuity

Where the period of F.S.S.U. service of a person to whom these Regulations apply ended not later than the coming into operation of these Regulations, there shall be ascribed to him a notional annuity calculated in accordance with the following provisions of this Regulation.

Where a person's superannuation benefit is provided by means of an insurance policy, and he is not such a person as is described in paragraph (5) below, his notional annuity shall, subject to paragraph (4) below, be equal to the annuity, calculated in accordance with the guaranteed rates of the insurance company with whom the policy is taken out, which would have been payable to him if he had elected to take the total benefits payable under the policy at the date of his retirement in the form of an annuity.

Where a person's superannuation benefit is provided not by means of an insurance policy but by means of the investment and accumulation of contributions, and he is not such a person as is described in paragraph (5) below, his notional annuity shall, subject to paragraph (4) below, be equal to the annuity, calculated in accordance with the government annuity tables in force at the date of his retirement, which would have been payable to him if he had elected to take the total sum which would have been payable to him on his retirement in the form of an annuity.

In calculating a person's notional annuity in accordance with paragraph (2) or (3) above, there shall be left out of account any benefit which is not attributable to his period of F.S.S.U. service (which for this purpose shall include service with the National Physical Laboratory prior to its being taken over by the Department of Scientific and Industrial Research).

Where a person has before the date of his retirement ceased to be subject to an F.S.S.U. scheme and has become subject to the Superannuation Acts or the civil service pension scheme otherwise than by reason of his transferring from one appointment to another in the civil service of the State, his notional annuity shall be equal to the annuity, calculated in accordance with the government annuity tables in force at the date of his retirement, which a sum equal to his accumulated contributions would purchase for him at that date.

For the purposes of paragraph (5) above, “accumulated contributions” means, in relation to any person, the total sum which would have accumulated at the date of his retirement if, in respect of each year of the period of his F.S.S.U. service and any uncompleted part of a year at the end of such period, a sum equal to fifteen per cent. of the annual rate of the salary to which he was entitled at the beginning of such year (or, in the case of any such uncompleted part of a year, fifteen per cent. of the proportionate part of such annual rate) had been accumulated with compound interest at three per cent. per annum calculated with yearly rests from the beginning of such year or uncompleted part of a year until the date of his retirement:

Provided that where a person's period of F.S.S.U. service includes a period of service in respect of which a transfer value has been paid, and any such service was, for the purpose of calculating the amount of the transfer value, taken into account at a fraction of its actual length, then in respect of the service so taken into account the percentage of the annual rate of his salary to be used in calculating his accumulated contributions shall, instead of fifteen per cent., be the appropriate fraction of fifteen per cent.