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Lower earnings limit and offsets for state retirement pension

7.—(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..