Paragraph 10

(1)

The annual rate of a dependant’s pension under these Regulations, or where more than one such pension is payable the total of their annual rates, must not be such as to cause the total of the annual rates of the relevant benefits to exceed the permitted amount.

(2)

Where only one dependant’s pension is payable, the relevant benefits are–

(a)

that pension,

(b)

any similar pension payable to the dependant under the 1988 Regulations or under a free-standing additional voluntary contributions scheme to which contributions were paid while the participator was in pensionable employment, and

(c)

any retained benefits,

and the permitted amount is 2/3rds of the annual rate of the maximum retirement pension.

(3)

Where two or more dependant’s pensions are payable, the relevant benefits are–

(a)

those pensions,

(b)

any similar pensions payable as mentioned in sub-paragraph (2)(b), and

(c)

any retained benefits,

and the permitted amount is the annual rate of the maximum retirement pension.

(4)

In sub-paragraph (2) and (3) “retained benefits” means pensions payable to a dependant as such which, if they had been pensions payable to the participator, would have fallen within paragraph 4.

(5)

The maximum retirement pension is the largest retirement pension that could have been paid to the participator under these Regulations if any retained benefits were left out of account for the purposes of paragraphs 7 to 9.

(6)

In calculating the maximum retirement pension–

(a)

if the participator died in relevant employment and had not attained the age of 60, it is to be assumed that he continued in relevant employment at the same salary up to, and retired on, his 60th birthday, and

(b)

if he died in relevant employment and had attained the age of 60, it is to be assumed that he retired on the day before that of his death.