Regulation 39 Restriction on average salary

This regulation applies for calculating the average salary of a person (P), except where P dies in pensionable employment.

For the purpose of regulation 37(2)(a)—

In paragraph (2)— I is the greater of—

RS0 is the average annual rate of P's relevant salary during Year 0; RS1 is the average annual rate of P's relevant salary during Year 1 or, where paragraph (2)(c) applies, the relevant salary during Year 1 which P is to be treated as receiving in accordance with that sub-paragraph; RS2 is the average annual rate of P's relevant salary during Year 2 or, where paragraph (2)(b) applies, the relevant salary during Year 2 which P is to be treated as receiving in accordance with that sub-paragraph.

The fixed amount where the last day of P's average salary service falls before F21st April 2011 is £ 5,000.

The fixed amount where the last day of P’s average salary service falls in the financial year ending on 31st March 2012, or in any subsequent financial year, is the amount to which the sum of £5,000 would have been increased in the relevant financial year if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on 1st April 2010.

This regulation is subject to paragraph 23 of Schedule 13.

In this regulation—

• “Year 0” means the 365 days of P's average salary service preceding Year 1 or, where P has less than 1,460 days of average salary service, the number of days of P's average salary service preceding Year 1;

• “Year 1” means the 365 days of P's average salary service preceding Year 2 or, where P has less than 1,095 days of average salary service, the number of days of P's average salary service preceding Year 2;

• “Year 2” means the 365 days of P's average salary service preceding the last 365 days of P's average salary service or, where P has less than 730 days of average salary service, the number of days of P's average salary service preceding the last 365 days of P's average salary service.