Lower earnings limit and offsets for state retirement pension7

1

In paragraph 7 of Schedule 2 (admission to schemes), for sub-paragraph (b) substitute—

b

a minimum level of pensionable pay for admission where that minimum—

i

does not exceed one and a half times the lower earnings limit;

ii

does not exceed an amount calculated by reference to the lower earnings limit where the aim is more or less to reflect the amount of the basic state retirement pension; or

iii

does not exceed an amount calculated more or less to reflect the amount of the basic state retirement pension plus the additional state retirement pension;

2

For paragraph 23 of Schedule 2 (limits on benefits) substitute—

23

When determining a member’s pensionable pay by reference to which any age related benefit or death benefit payable to or in respect of a member is calculated, to exclude from the member’s remuneration an amount which—

a

does not exceed one and a half times the lower earnings limit;

b

does not exceed an amount calculated by reference to the lower earnings limit where the aim is more or less to reflect the amount of the basic state retirement pension; or

c

does not exceed an amount calculated more or less to reflect the amount of the basic state retirement pension plus the additional state retirement pension.

3

After paragraph 23 of Schedule 2 insert—

23A

Any difference in the amount of age related benefit or death benefit payable under a scheme to or in respect of members where the difference is attributable to accrual of age related benefit at a higher fraction of pensionable pay for pensionable pay over the upper earnings limit (and a lower fraction of pensionable pay for pensionable pay under the upper earnings limit) where the aim is to reflect the additional state retirement pension.