Regulation 30 Cessation of discretionary annual compensation during new employmentI1

If a credited teacher (C) enters further employment, compensation payable under regulation 18(1) is to be reduced in accordance with this regulation.

The reduction mentioned in paragraph (1) is to be made if the result of the calculation in paragraph (3) exceeds F, where F is the total, in years and any fraction of a year, of C’s reckonable service assuming that C had remained in the former employment until, being an existing scheme member, C attained the age of 65 or, being a 2015 scheme member, C attained normal pension age.

The calculation is as follows—

$$A+B+(C-D)+E$$

where—

• A is C’s effective service;

• B is the period, in years and any fraction of a year, between the material date and the later of the date of completion of the further employment and the date C, being an existing scheme member, attains the age of 65 or, being a 2015 scheme member, attains normal pension age;

• C is the credited period;

• D is the total period in respect of which any previous reductions were made to compensation payable under regulation 31(1) as a result of C entering further employment;

• E is the total, in years and any fraction of a year, of any additional periods of service credited to C in respect of termination or redundancy under the provisions referred to in paragraph 1 of Schedule 2.

The reduction mentioned in paragraph (1) is to be calculated in accordance with the following formula—

$$G\times ((H\times J)/80)$$

where—

• G is the period, in years and any fraction of a year, by which the result of the calculation in paragraph (3) exceeds F;

• H is the shorter of B and C-D;

• J is the lower of C’s average salary in the former employment and the figure produced by applying the formula $$K-(K\times L)/(L+100)$$where K is C’s average salary in the new employment and L is the PIA index adjustment.