Regulation 70 Calculation of retirement benefits after ill-health pension ceases to be payable
This regulation applies for calculating the retirement benefits of a person (P) if—
the retirement pension which most recently became payable to P (“the previous pension”) was an ill-health pension,
the previous pension ceased to be payable under regulation 68 (cessation and reinstatement of ill-health pension (application received before 6th January 2007) or 69 (cessation of ill-health pension (application received on or after 6th January 2007)), and
P re-entered pensionable employment.
The annual rate of the retirement pension is made up of—
the annual rate of any ill-health pension which became payable before the previous pension and was calculated using an average salary greater than the previous average salary, and
the annual rate of a pension calculated in accordance with regulation 61 (annual rate of phased retirement and retirement pension) except as provided in paragraph (4) and (5).
The amount of any retirement lump sum is the amount of a lump sum calculated in accordance with regulation 62 (amount of phased retirement and retirement lump sum) except as provided in paragraphs (4) and (5).
In regulations 61 (annual rate of phased retirement pension and retirement pension) and 62 (amount of phased retirement lump sum and retirement lump sum) references to P's reckonable service must be taken to—
exclude reckonable service used in the calculation of any pension mentioned in paragraph (2)(a), but
where the previous pension became payable to P following an application received by the Secretary of State before 6th January 2007, include any enhanced period determined in accordance with regulation 71.
Where P's average salary on the date on which retirement benefits become payable (“the final average salary”) is less than the average salary at the date on which the previous pension became payable (“the earlier average salary”) then the average salary for the purposes of regulations 61 and 62 is—
the earlier average salary, in relation to P's reckonable service used in the calculation of P's previous pension, and
the final average salary in relation to the balance of P's reckonable service.
For the purposes of paragraph (5) P's reckonable service used in the calculation of P's previous pension does not include any increase in reckonable service under regulation E8 of TPR 1997, or regulation 71.
Where paragraph (5) applies and any phased retirement pension is payable to P then for the purpose of paragraph 13 of Schedule 7—
where the phased retirement pension became payable before the previous pension became payable the reckonable service taken into account in the calculation of that phased retirement pension is to be treated as reckonable service referred to in paragraph (5)(a), and
where the phased retirement pension became payable after the previous pension became payable—
the reckonable service taken into account in the calculation of that phased retirement pension is to be treated as reckonable service referred to in paragraph (5)(b), but
where the reckonable service taken into account in the calculation of that phased retirement pension is more than the reckonable service referred to in paragraph (5)(b)—
no reckonable service falls within paragraph (5)(b), and
the balance of reckonable service taken into account in the calculation of that phased retirement pension is to be treated as reckonable service referred to in paragraph (5)(a).
Notes on Part 7
Modifications
- C1
Pt. 7 applied (1.4.2015) by The Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015 (S.I. 2015/601), regs. 1, 4 (with reg. 44(2)(3))