Local Authorities (Cost of Living) Act, 1940

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Calculation of variable remuneration and superannuation allowances.

2.—(1) Where the remuneration of an officer or servant of a local authority who is in the service or employment of such local authority on the 30th day of June, 1940, consists in part of a bonus varying with the cost of living and calculated for that purpose by reference to a figure representing or purporting to represent the cost of living, such bonus shall not, in respect of any period beginning on or after the 1st day of July, 1940, be calculated by reference to a figure greater than the figure by reference to which it was calculated immediately before that date, and accordingly such bonus shall, as on and from the 1st day of July, 1940, cease to that extent to vary with the cost of living.

(2) Where the remuneration of an officer or servant of a local authority who enters the service of such local authority after the 30th day of June, 1940, consists in part of a bonus varying with the cost of living and calculated for that purpose by reference to a figure representing or purporting to represent the cost of living, such bonus shall not be calculated by reference to any greater figure than the figure by reference to which it would have been calculated immediately before the 1st day of July, 1940, if such officer or servant had then been in the service or employment of such local authority, and accordingly such bonus shall to that extent not be variable with the cost of living.

(3) Where the whole of the remuneration or so much of the remuneration as is paid in money of an officer or servant of a local authority varies with the cost of living and is calculated for that purpose by reference to a figure representing or purporting to represent the cost of living, whichever of the foregoing sub-sections of this section is applicable (having regard to the date on which such officer or servant entered the service or employment of such local authority) shall apply to such remuneration or so much thereof as aforesaid as if it were such bonus as is mentioned in that sub-section.

(4) The foregoing provisions of this section shall apply and have effect in relation to every superannuation allowance payable by a local authority as if such allowance were remuneration, and for the purposes of such application all references in those provisions to being in or entering the service or employment of a local authority shall be construed and have effect as references to having retired or retiring from the service or employment in respect of which such allowance is payable.