10Benefit to be adjusted in certain circumstances

10 Benefit to be adjusted in certain circumstances

10 Benefit to be adjusted in certain circumstances

(1) This clause applies to a transferred contributor who, in the opinion of the Board, has received, or will receive—

(a) in the case of a transferred contributor whose service was terminated, or who died, before 1 July 1993—a gratuity under section 97 of the Local Government Act 1919, or

(b) in the case of a transferred contributor whose service is terminated, or who dies, on or after that date—a similar gratuity, being a gratuity paid or to be paid by the council as an act of grace on the death or termination of service of an employee of the council and calculated by reference to the period of the employee’s service with the council.

(2) Where the employer-financed benefit payable in respect of a transferred contributor to whom this clause applies is determined without reference to the notional accumulation of that contributor, the amount determined in accordance with subclause (3) shall—

(a) be deducted from the employer-financed benefit otherwise payable under the current Act, and

(b) be paid by the Board to the employer who employed that contributor on that contributor’s exit date.

(3) For the purposes of subclause (2), the amount is—

(a) 0, or

(b) an amount calculated in accordance with the formula set out in subclause (4),

whichever is the greater.

(4) The formula referred to in subclause (3) is as follows—

where—

A represents the amount to be calculated,

G represents the amount referred to in subclause (1) as the gratuity payable under the Local Government Act 1919,

E represents the employer-financed benefit that would be payable but for this clause, and

M represents the employer-financed benefit that would have been payable to the transferred contributor concerned if the employer-financed benefit had been based on the maximum benefit points for that contributor.

Editorial note—