The Railways Pension Scheme Order 1994

MAXIMUM LUMP SUM FOR CLASS A AND CLASS B MEMBERS

4.  In the case of a Class A Member or a Class B Member the total value of all benefits payable in any form other than non–commutable pension under the Scheme and any Associated Scheme shall not exceed an amount equal to the following:

(a) in the case of a Member leaving Service at Minimum Pension Age or attaining age 65 the aggregate of:

(1) ⅜ths of the Member’s Final Remuneration multiplied by the aggregate of:

(I) his or her IR Limit Employment (subject to a maximum of 40 years); and

(II) the number of years (if any) of IR Limit Employment which:

(1) are in excess of 40 such years; and

(2) fall after the Member’s Minimum Pension Age subject to a maximum of 5 such years; and

(2) the Member’s Transferred Membership multiplied by ⅜ths of his or her Final Average Pay;

(b) in the case of a Member who leaves Service and qualifies for a pension on grounds of Incapacity the lump sum which could have been provided under section (a) above had the Member remained in Service until Minimum Pension Age, Final Remuneration being computed as at the date of leaving Service; or

(c) in the case of a Member who leaves Service before Minimum Pension Age but does not qualify for a pension on grounds of Incapacity the aggregate of:

(1) the Member’s IR Limit Employment (subject to a maximum of 40 years) multiplied by ⅜ths of his or her Final Remuneration; and

(2) the Member’s Transferred Membership multiplied by ⅜ths of his or her Final Average Pay

increased by the proportion (if any) by which the Index has increased between the day the Member left Service and the day his or her pension commences.