Regulation 9 Pensionable pay and average pensionable payI1

in paragraph (1), by substituting for the words “The pensionable pay” the words “Subject to paragraph (1A), the pensionable pay” and deleting the proviso; and

by inserting after paragraph (1)—

“(1A)

For the purposes of paragraph (1), in the case of a person by whom contributions became payable after 31st May 1989 either—

(a)

for the first time, or

(b)

following any period in respect of which they were not payable,

except where regulation 4 of the Retirement Benefit Schemes (Tax Relief on Contributions) (Disapplication of Earnings Cap) Regulations 1990^f1 applies his pay shall be taken not to include any excess, in any tax year, over the figure which is the permitted maximum for that year for the purposes of section 594(2) and (3) of the Income and Corporation Taxes Act 1988^f2 (that is to say, the figure specified for the year by an order made by the Treasury under section 590C(6) of that Act).”.