Regulation H1 Modified application in case of employment at reduced salary

(1)

If—

(a)

a person who has been in pensionable employment either—

(i)

continues to be employed by the same employer, or

(ii)

ceases to be employed and is re-employed within six months (whether by the same or a different employer),

at a reduced rate of contributable salary, and

(b)

where he continues to be employed by the same employer, is employed in a different post, and

(c)

he does not make an election under regulation C2(1) that his contributable salary is to be treated as having continued at the previous rate, and

(d)

the relevant employer notifies the Secretary of State in writing of the matters specified in paragraph (2) before—

(i)

the date which is 3 months after the first day of his employment at the reduced rate, or

(ii)

3rd May 1998,

whichever is the later

(e)

the application to him of this paragraph would, taking into account prospective increases under the Pensions (Increase) Act 1971 of benefits under Part E, be beneficial,

these Regulations have effect in relation to him with the modifications set out in Part II of Schedule 10.

(2)

For the purposes of paragraph (1)(d) the matters which are to be notified to the Secretary of State are—

(a)

where the person continues to be employed with the same employer or ceases to be employed and is re-employed by the same employer, that the person’s employment at a reduced rate of contributable salary is in the interests of the efficient discharge of the employer’s functions, and

(b)

where the person ceases to be employed by one employer and is re-employed by a different employer—

(i)

that the person had provided satisfactory service throughout the period of the person’s employment with the relevant employer; and

(ii)

that the person had ceased employment with the relevant employer with the intention of seeking employment in a new post with less responsibility.

(3)

For the purpose of this regulation—

(a)

the contributable salary of a person in part-time employment is to be taken to be what it would have been if the employment had been full-time, and

(b)

the “relevant employer” is—

(i)

where the person ceases to be employed by one employer and takes up employment with a different employer, the person’s former employer, and

(ii)

in any other case, the person’s employer.

(4)

A second or subsequent application of paragraph (1) does not affect its previous operation.