SCHEDULE 3 - Calculation of Certain Pensions for Existing Contributors and Amalgamated Contributors

Regulations 56(1) , (2) and (3) , 86(2) , 91(1) , 92(1) and 95(2)

1.    Interpretation

(1) In this Schedule –

average annual salary means the average annual salary that an existing contributor received in respect of the 12 months before he or she ceased to be an existing contributor.

(2) For the purposes of this Schedule, if at any time during the period of 12 months immediately before retirement or death, a contributor has been absent on leave without pay or on less than full pay, the contributor's average annual salary is to be calculated as if he or she had continued to be employed in the same capacity on full pay during the whole of that period.

2.    Determination of prospective service for purposes of pension payable on total and permanent incapacity or partial and permanent incapacity

(1) If the Board determines under regulation 118 that an existing contributor is suffering from total and permanent incapacity, his or her prospective service for the purpose of clause 7 is taken to commence on the day immediately following the date of cessation of employment and end on the day on which he or she attains, or would have attained –

(a) the age of 65 years, in the case of an existing contributor who was contributing to the contributory scheme immediately before 1 April 1987 and who has continued at all times to be such a contributor; or

(b) the age of 60 years, in the case of a police officer who is an existing contributor who was contributing to the contributory scheme immediately before 1 April 1987 and who has continued at all times to be such a contributor; or

(c) the age of 60 years, in the case of a woman who was a contributor within the meaning of the Retirement Benefits Act 1970 or the Superannuation Act 1938 ; or

(d) the age of 55 years, in the case of any other existing contributor.

(2) If the Board determines under regulation 118 that an existing contributor is suffering from partial and permanent incapacity, his or her prospective service for the purposes of clause 7 is taken to commence on the day immediately following the date of cessation of employment and end on the day on which he or she attains, or would have attained –

(a) the age of 60 years, in the case of an employee who is an existing contributor and who was contributing to the contributory scheme immediately before 1 April 1987 and who has continued at all times to be such a contributor; or

(b) the age of 55 years, in any other case.

(3) If the Board determines under regulation 118 that an existing contributor who has at any time been employed otherwise than on a full-time basis is suffering from total and permanent incapacity or partial and permanent incapacity, his or her prospective service is to be calculated in accordance with the following formula:

where –

PS is the existing contributor’s prospective service expressed in years;

A is the period expressed in years commencing on the day immediately following the date of cessation of employment of the existing contributor and ending on the day on which he or she attained, or would have attained, the relevant age specified in subclause (1) or (2) , as appropriate;

B is the full-time equivalent of the existing contributor’s length of service expressed in years as at the date of cessation of employment;

C is the existing contributor’s length of service expressed in years as at the date of cessation of employment.

(4) For the purposes of subclause (3) , a reference to being employed otherwise than on a full-time basis is taken to include employment on a part-time basis or participating in an accumulated leave scheme or any similar arrangement.

(5) Notwithstanding subclauses (3) and (4) , if, after such inquiry as it thinks fit, the Board is satisfied that the hours of employment of an existing contributor were reduced by his or her Agency for medical reasons which subsequently led to his or her retirement on the grounds of total and permanent incapacity or partial and permanent incapacity, the Board may, for the purposes of this clause, calculate the existing contributor’s prospective service as if the reduction in hours had not occurred.

3.    Determination of service for existing contributor employed otherwise than full-time

For the purposes of calculating the pension to be paid to an existing contributor who has at any time been employed otherwise than on a full-time basis, his or her length of service is to be adjusted to full-time equivalent service.

4.    Determination of salary for existing contributor employed otherwise than full-time

For the purpose of calculating the pension to be paid to an existing contributor who has at any time been employed otherwise than on a full-time basis, his or her salary is taken to be the average of the annual salary that he or she would have received if he or she had been employed as a full-time employee in that office or position.

5.    Pension payable to existing contributor on retirement due to age

The pension payable to an existing contributor to whom regulation 47 applies is an annual sum calculated in accordance with the following formula:

where –

P is the annual amount of pension;

FAS(1) is the average annual salary paid or payable to the existing contributor in respect of the year preceding retirement;

ABMF is the existing contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the existing contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 44 by the existing contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PP is the percentage of the lump sum benefit payable under regulation 47 that the existing contributor has elected, under regulation 79 , to be converted to a pension;

ERP is the early retirement penalty calculated in accordance with clause 9 .

6.    Pension payable to existing contributor on redundancy or compulsory retirement

The pension payable to an existing contributor to whom regulation 48 or 49 applies and who is aged 55 years or over is an annual sum calculated in accordance with the following formula:

where –

P is the annual amount of pension;

FAS(1) is the average annual salary paid or payable to an existing contributor in respect of the year preceding redundancy or retirement;

ABMF is the existing contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the existing contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 44 by the existing contributor's length of service in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PP is the percentage of the lump sum benefit payable under regulation 48 or 49 that the existing contributor has elected, under regulation 79 , to be converted to a pension;

ERP is the early retirement penalty calculated in accordance with clause 9 .

7.    Pension payable to full benefits contributor on retirement due to total and permanent incapacity or partial and permanent incapacity

(1) If –

(a) the Board has determined under regulation 118 that an existing contributor is suffering from partial and permanent incapacity or total and permanent incapacity; and

(b) he or she retires on the grounds of ill-health within 6 months after the Board's determination –

the annual pension payable is to be calculated in accordance with the following formula:

where –

P is the annual amount of pension;

FAS(1) is the average annual salary paid or payable to the existing contributor in respect of the year preceding retirement;

ABMF is the existing contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the existing contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 44 by the existing contributor's length of service expressed in years at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PBMF is the existing contributor's prospective benefit multiple factor, calculated by taking the basic contribution rate applicable to the existing contributor and multiplying the benefit multiple factor prescribed for that rate of contribution under regulation 44 by the existing contributor's length of service in years commencing on and from the date of his or her retirement and concluding –

(a) if he or she has retired due to total and permanent incapacity, on the date when he or she attains the relevant age provided in clause 2(1) ; or

(b) if he or she has retired due to partial and permanent incapacity, on the date when he or she attains the relevant age provided in clause 2(2) .

(2) Where the Board, under regulation 118 , has determined that a pension is payable to an amalgamated contributor, his or her pension on retirement is to be an annual sum calculated in accordance with the following formula:

where –

P is the annual amount of pension payable;

SB is the pension value of the amalgamated contributor's superannuation units as at 30 June 1982;

DS is the differential salary of the amalgamated contributor, which is to be the FAS(1) of the amalgamated contributor less the annual salary payable in respect of him or her as at 30 June 1982;

FAS(1) , in the definition of "DS" , is the salary paid or payable to the amalgamated contributor in respect of the 12 months immediately preceding the cessation of his or her service or, in the case of a contributor whose length of service at the time of his or her cessation of employment is less than 12 months, the average annual salary paid or payable in respect of the actual period of service.

8.    Pension payable to existing contributor who retires after attaining 65 years

The pension payable to an existing contributor to whom regulation 53 applies is an annual sum calculated in accordance with the following formula:

where –

P is the annual amount of pension;

FAS(1) is the average annual salary paid or payable to an existing contributor in respect of the year preceding retirement;

ABMF is the existing contributor's adjusted benefit multiple factor, calculated by taking the rate or rates of contribution made by the existing contributor and multiplying the benefit multiple factor prescribed for that rate or those rates of contribution under regulation 44 by the existing contributor's length of service expressed in years to the date when he or she ceased paying contributions under regulation 34(3)(e) or regulation 34(5) at that rate or for each of those rates of contribution and accumulating each result obtained from those multiplications;

PP is the percentage of the lump sum benefit payable under regulation 53 that the existing contributor has elected, under regulation 79 , to be converted to a pension;

PRS is the contributor's length of service after attaining the age of retirement expressed in years commencing on the date when he or she ceased paying contributions under regulation 34(3)(e) or regulation 34(5) and ending on the date of his or her actual retirement or at the age of 70 years, whichever is the earlier.

9.    Early retirement penalty

(1) On the retirement of an existing contributor to whom regulation 47 , 48 or 49 applies, other than –

(a) a police officer; or

(b) a woman who was appointed as a full-time employee before 1 July 1982 and has been continuously employed in an Agency since that time –

the amount of pension to which he or she is entitled is, subject to subclause (2) , to be reduced by 1% for each 3 months or part of 3 months by which he or she retires before attaining the age of 60 years.

(2) A reduction is not to be made under subclause (1) to the amount of pension payable to an existing contributor if, at the time when he or she becomes entitled to the pension, the pension before an election under regulation 79 is made is greater than or equal to two-thirds of his or her average annual salary in the year immediately preceding retirement.