Paragraph 44 Average salaryI1

for paragraphs (1) and (2) substitute—

“(1)

A person’s average salary is either that specified in paragraph (2) or calculated in accordance with regulation E31A.

(2)

Where—

(a)

the person’s full salary in the last 365 days of his average salary service is greater than the salary determined under regulation E31A(3), or

(b)

the person has an average salary service of 365 days or less,

the person’s average salary is (subject to paragraph (11)) his full salary in the last 365 days of his average salary service.

(2A)

Where the salary determined under regulation E31A(3) is greater than the person’s full salary in the last 365 days of his average salary service the person’s average salary is that specified in regulation E31A.”.

omit paragraph (4),

for paragraph (5) substitute the following—

“(5)

For the purposes of paragraphs (2) and (2A) periods when the person was not in pensionable employment shall be disregarded and accordingly the periods of 365 days and 1095 days referred to in paragraphs (2) and (2A) may be discontinuous.”,

in paragraph (6) omit “(2)”,

in paragraph (7)(b) for “regulation C6 or, as the case may be, C7” substitute “old regulation C6 or, as the case may be, regulation C7”,

after paragraph (10) insert the following—

“(11)

Subject to paragraph (12), where at any time during the last 1095 days of his average salary service a person to whom this paragraph applies has received an increase in his contributable salary such that—

• (B/A – 1) x 100 – C – 10

is greater than zero where—

• A is the person’s salary before the increase,

• B is the person’s salary after the increase, and

• C is the standard increase of salary (expressed as a percentage),

the person is treated as having received an increase in his contributable salary such that his salary after the increase is—

• A (1+ ((C+10)/100))

unless an election is made under regulation G7(2) to pay the additional contribution referred to in that regulation.

(12)

Paragraph (11) does not apply —

(a)

in relation to a person who becomes entitled to the payment of retirement benefits by virtue of regulation E4(4),

(b)

for the purpose of calculating—

(i)

a death grant under regulation E20, or

(ii)

a pension payable under regulation E28 (amount of surviving spouses’, surviving civil partner’s, surviving nominated partner’s or nominated beneficiary’s long-term pensions) in relation to a person who died while in pensionable employment, or

(c)

to any increase in contributable salary which was received while the person was employed by an employer other than the body which was the person’s employer immediately before he became entitled to the payment of retirement benefits.

(13)

For the purposes of paragraph (11), paragraph (12) and this paragraph—

(a)

where the person receives more than one increase in salary in a financial year the increases taken together shall be treated as one increase and accordingly, in paragraph (11), A is the person’s salary before the first increase and B is the person’s salary after the last increase,

(b)

the material date is the date on which the increase of salary took effect,

(c)

the standard increase of salary is the average percentage of the increases, if any, that would have been received on the material date by persons (the comparable employees”) who were employed at the school or institution where the person in question was employed and whose circumstances corresponded, most closely to those of that person or, if there were no comparable employees, by persons so employed as teachers (as the case may be) would have received no increases on that date, the next increases they would have received.

(14)

For the purposes of this regulation, in computing periods consisting of numbers of days, no account shall be taken of a leap year day (29th February) except as provided by paragraph (15).

(15)

Where however a person’s average salary service ends in a leap year on or after the leap year day that leap year day shall be included in the period of 365 days referred to in paragraph (2).

(16)

Where an election under regulation G7 is made after the person becomes entitled to payment of retirement benefits the person is, until the date on which the election is received by the Department, entitled to retirement benefits calculated on the basis only of the contributable salary he is treated as receiving in the absence of such an election and accordingly as from the date on which the election is received by the Department becomes entitled to—

(a)

a lump sum payment (where regulation E6 applies to the person) equal to the difference between the retirement lump sum to which the person is entitled taking into account the election and the retirement lump sum previously paid to the person; and

(b)

a retirement pension taking into account the election.”.