Allowances for pensioners6
1
Where a person ceases to be employed in a relevant employment, if—
a
immediately before so ceasing he or she was entitled to an allowance under regulation 3;
b
on so ceasing regulation 4 does not apply, but he or she becomes entitled under the Benefits Regulations and the Administration Regulations to receive payments in respect of an annual retirement pension; and
c
the annual rate of the retirement pension in any year falls short of what it would have been if the amount of the allowance paid under regulation 3 during the period which is the final pay period under regulation 8 (final pay: general) of the Benefits Regulations11, had been part of his or her remuneration in the relevant employment,
the relevant employer may, subject to regulation 8, pay the person an allowance (but not of an amount in any year exceeding that shortfall).
2
An allowance under this regulation continues for such period as the relevant employer may determine.