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SECTION 2: MEMBERS’ PERIODICAL CONTRIBUTIONS FROM PENSIONABLE EARNINGS
  

Pensionable earnings
  

2.13 (1) Except as otherwise provided in the Rules, for the purpose of computing any contribution and of calculating pensionable final earnings, "pensionable earnings" means the gross sums payable in respect of the member by his employer by way of:
  
    (a) salary or wages (excluding overtime);
   
    (b) responsibility allowances;
   
    (c) any other emoluments of a kind which the Authority may from time to time in their discretion declare to be reckonable for the purposes of the Scheme as part of the pensionable earnings of a member.
  
  (2)

Except that any pensionable earnings in excess of the permitted maximum as defined in Section 590 (c) of the Income and Corporation Taxes Act 1988, shall be disregarded for the purposes of calculating the pensionable pay of a person who became a member on or after 1 June 1989. The permitted maximum as defined in Section 590 (c) of the Income and Corporation Taxes Act, 1988 shall be deemed to be 93.5% of the pensionable earnings from which contributions shall be deducted.

The proviso at (2) above will not apply to a member where benefits cease to accrue to him in the following circumstances:
  

    (a) by reason of his secondment to another employer and
  
     

– the period of his secondment or posting ends and he becomes a member; and

– at the time of his secondment he had a definite expectation that he would again become a member; or
  

    (b) by reason of his unpaid absence and, within one month of returning to work, he becomes a member; or
  
    (c) by reason of her pregnancy or confinement and, within one month of returning to work, she becomes a member; or
   
    (d) where the circumstances are other than those prescribed in (a), (b) or (c) above and, within one month of benefits ceasing so to accrue, he becomes a member; provided the person was a member of this Scheme before 1 June, 1989 and continued to be such a member until benefits so ceased to accrue to him.
    
  (3) Where a person who has become a member on or after 1 June, 1989 has been credited with reckonable service applicable to a transfer value under Rule 9.18(3), Rule 2.13(2) will not apply in calculating benefits referable to service rendered by him when he was a member of the scheme from which the transfer was accepted and paragraph 20 of Schedule 6 to the Finance Act 1989, or equivalent Scheme provision, did not apply to him.
   
Benefits and contributions where pensionable earnings are reduced
  
2.14

When pensionable earnings are reduced (other than as described in Rule 4.07(i) or because the member is on sick leave) and this occurs without cessation of employment:    

 
  (a) if the reduction is a consequence of movement from a higher to a lower grade, or as a result of the member exercising an option granted to him by the Authority to join the Shift Pay Pension Plan or if he is a member of the UKAEA Constabulary and his employment in the UKAEA Constabulary began before 1 September 1997, he may, when his employment ceases and if this produces a larger total pension than would otherwise be the case, be deemed to have resigned at the time of the reduction and to have been immediately re-employed. Subject to total reckonable service not exceeding the limitations in Rule 3.07, reckonable service before the reduction may count as qualifying (but not reckonable) service for the purposes of a pension under Rule 4.53(ii) in respect of service after the reduction (notwithstanding the proviso to Rule 4.53). On or after 1 April 2000, when determining whether this Rule would give rise to a larger total pension, account will be taken of increases (under the Pensions (Increase) Act 1971 as amended) that would be due on the pension before the reduction, irrespective of whether the member meets the qualifying conditions for the payment of such increases.

With effect from 1 April 2005 this provision will apply to employees of the Civil Nuclear Police Authority who were previously employed by UKAEA in the Atomic Energy Authority Constabulary.
   

  (b) if the reduction is a consequence of downgrading during re-employed service to which Rule 4.50 applies, the occasion of the reduction may be regarded as a retirement for the purpose of that Rule;
  
  (c) in the case of a former non industrial scheme member if the reduction occurred before 1 June 1972 and the member exercised the option under Former Rule 7 of the Principal Non Industrial Superannuation Scheme, that Rule shall continue to apply accordingly.
  
 

Except that on or after 1 December 2004 enhancement to service on ill-health retirement will not exceed the service enhancement due but for the application of this provision.
  

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