12 Actuarial reduction of pension on early retirement
In regulation E6 (amount of retirement pension)–
(a) in paragraph (1) for “and (3)” there shall be substituted “to (4)”;
(b) there shall be added at the end the following paragraphs:–

“4 Where this paragraph applies the annual rate of a teacher’s retirement pension shall be the annual rate, calculated in accordance with the foregoing provisions of this regulation, of the retirement pension to which he would be entitled apart from this paragraph and ignoring the effect of regulation E11 (modification for national insurance) multiplied by the appropriate factor.
5 (a) Subject to sub-paragraph (b), paragraph (4) applies where a teacher is entitled to payment of retiring allowances under regulation E5(1)(f) and ceased to be in pensionable employment or in excluded employment on or after 1st September 1997;
(b) paragraph (4) shall not apply where notice to terminate the teacher’s employment was given or his resignation was tendered on or before 22nd October 1996.
This is the date on which the Secretary of State began his consultation on the proposals now enacted.
6 For the avoidance of doubt, references in regulations E8 to E10 to “retirement allowances” and “retirement pension” are references to such benefits as calculated before any actuarial reduction required by paragraph (4).”

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