1. Paragraphs 2 to 5 have effect for defining expressions used in this Schedule.
2. “Total retirement benefits” means the total of so much of–
(a)the annual rate of the participator’s retirement pension under these Regulations, and
(b)the annual rate of any retirement pension under the 1988 Regulations, and
(c)the actuarial equivalent as an annual pension of any retirement lump sum under the 1988 Regulations,
as is not attributable to the receipt of any transfer value, together with the annual rate of any pension payable to him under a free-standing additional voluntary contributions scheme.
3.—(1) “Final remuneration” means the greater of A and B, where–
Ais the participator’s highest year’s adjusted earnings in respect of pensionable employment, or earnings in respect of a period of contribution under regulation C8 of the 1988 Regulations, during the period of 5 years ending on the material date, and
Bis the average of his total taxable earnings for any period of 3 or more consecutive years ending no earlier than 10 years before the material date,
but, in respect of any year other than the one ending on the material date, earnings are to be taken to have been increased in proportion to any increase in the Index from the end of the year up to the material date.
(2) In this paragraph “adjusted earnings” means C+D, where–
Cis the participator’s total taxable earnings for the year in question less any bonus payments and payments for overtime (“fluctuating emoluments”), and
Dis the average, for a period ending with the year in question, of any fluctuating emoluments; the period is one of at least 3 years or, if shorter, the period during which the fluctuating emoluments have been payable,
and “the material date” means the earliest of–
(a)the retirement date,
(b)the date on which the retirement pension under these Regulations commenced, and
(c)the date on which the participator ceased to be in pensionable employment or, as the case may be, to contribute under regulation C8 of the 1988 Regulations.
4.—(1) “Retained benefits” means the total of any pensions payable to the participator–
(a)in respect of employment before he entered pensionable employment, under a retirement benefits scheme or under an annuity contract falling within section 431(4)(d) of the Taxes Act, or
(b)under a retirement annuity contract or trust scheme approved under Chapter III of Part XIV of the Taxes Act,
and so much of any pension payable to him under these Regulations or the 1988 Regulations as is attributable to a transfer value received from any such scheme or on the termination of any such contract.
(2) In this paragraph “pension” includes the actuarial equivalent as an annual pension of any lump sum.
5. “Relevant employment” comprises employment falling within Schedule 2 to the 1988 Regulations and employment in an accepted school within the meaning of regulation B4 of those Regulations.