The Teachers' Superannuation (Scotland) Amendment Regulations 1998

Salary on which contributions are payable – electionC1A

1

A teacher who–

a

continues in pensionable employment but whose contributable salary is reduced, otherwise than by reason of sick leave or maternity leave, and who satisfies the conditions in paragraph (2); or

b

leaves pensionable employment with one employer (“employer A”) and–

i

takes up employment again with employer A, or

ii

takes up employment with another employer (“employer B”)

at a lower contributable salary and who satisfies the conditions in paragraph (3),

may make an election that his salary is to be treated as having continued at the rate specified in paragraph (4).

2

The conditions referred to in paragraph (1)(a) are–

a

that on the date when the contributable salary was reduced the teacher had attained the age of 50;

b

that on that date he had been in pensionable employment or excluded employment for at least five years; and

c

that the responsibility of his post after the reduction in contributable salary is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date of the reduction in contributable salary.

3

The conditions referred to in paragraph (1)(b) are–

a

that on the date of leaving pensionable employment with employer A the teacher had attained the age of 50;

b

that on that date he had been in pensionable employment or excluded employment for at least five years;

c

that the responsibility of his new post with employer A or, as the case may be, his post with employer B is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date on which he left employment with employer A as described in paragraph (1);

d

that employer A notifies the Secretary of State that the teacher has provided satisfactory service during the period of five years referred to in sub-paragraph (c) or, where he has been employed by employer A for less than five years, during the period when he was employed by employer A; and

e

that no more than one year had elapsed between leaving pensionable employment with employer A as described in paragraph (1) and taking up pensionable employment again with employer A or, as the case may be, taking up pensionable employment with employer B.

4

The rate of salary referred to in paragraph (1) is–

a

where the teacher falls within paragraph (1)(a) and is employed in full-time service after the reduction in contributable salary, the rate applicable immediately before the reduction;

b

where the teacher falls within paragraph (1)(b) and is re-employed in full-time service with employer A, or is employed in full-time service with employer B, the rate applicable immediately before he left employment with employer A as described in paragraph (1);

c

where the teacher falls within paragraph (1)(a) and is employed in part-time service after the reduction in contributable salary, the rate which would have been applicable immediately before the reduction if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed immediately after the reduction; and

d

where the teacher falls within paragraph (1)(b) and is employed in part-time service at the start of his re-employment with employer A or his employment with employer B, the rate which would have been applicable immediately he left his employment with employer A as described in paragraph (1) if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed at the start of his re-employment with employer A or, as the case may be, his employment with employer B,

increased, in each case, on each increase day by

$\genfrac{}{}{0.1ex}{}{\left(\mathrm{RI}-\mathrm{RE}\right)}{\mathrm{RE}}$

where–

• RI is the retail prices index for the month in which the increase day occurs; and

• RE is the retail prices index for the month in which the election was made.

5

For the purposes of paragraph (4) the increase day is the first day of the month in each year following the month in which–

a

the salary was reduced, in a case where the teacher falls within paragraph (1)(a), or

b

the teacher left his employment with employer A as described in paragraph (1) in a case where the teacher falls within paragraph (1)(b),

and the first increase day is that falling in the year after the year in which the salary was reduced or the teacher left his employment with employer A, as the case may be.

6

An election for the purposes of paragraph (1)–

a

must be made by giving written notice to the Secretary of State before the date which is three months after–

i

the reduction in salary, in a case where the teacher falls within paragraph (1)(a); or

ii

taking up employment again with employer A or, as the case may be, taking up employment with employer B, in a case where the teacher falls within paragraph (1)(b);

or before 15th July 1998, whichever date is later;

b

has effect from–

i

the day after the last day on which the teacher’s salary was payable at the rate applicable immediately before the reduction in contributable salary, in a case where the teacher falls within paragraph (1)(a); or

ii

the day on which the teacher takes up employment again with employer A or, as the case may be, takes up employment with employer B, in a case where the teacher falls within paragraph (1)(b); and

c

subject to paragraph (7), continues to have effect until the teacher ceases to be in pensionable employment unless he–

i

elects to pay additional contributions under regulations C8 or C8A; or

ii

takes up pensionable employment with another employer (“employer C”) within six months of ceasing to be in pensionable employment.

7

An election for the purposes of paragraph (1) may be cancelled by giving written notice to the Secretary of State at any time.

8

Notice of cancellation–

a

has effect from the first day of the month following that in which it was received; and

b

is irrevocable.

9

If, while an election made for the purposes of paragraph (1) has effect, there is any further reduction in salary during a period of sick leave or maternity leave, the rate of salary specified in paragraph (4) is, during that period, to be treated as having been reduced in the same proportion as the actual rate.

10

In paragraphs (1)(a) and (1)(b) the reference to contributable salary is, in the case of a teacher employed in part-time service, a reference to the salary which would have been the teacher’s contributable salary if the teacher had been in full-time service.

11

In this regulation “the retail prices index” means the index of retail prices published by the Office for National Statistics.

1A

A teacher who has made an election under regulation C1A(1) shall, in addition to the contributions referred to in paragraph (1), pay contributions of the required percentage of the difference between the teacher’s actual contributable salary and the contributable salary at the rate referred to in regulation C1A(4) to the extent that such contributions are not paid by any employer referred to in regulation G9A under an election mentioned in that regulation.

E2

1

This regulation applies where–

a

a teacher has ceased to be employed in reckonable service; and

b

the guaranteed minimum in relation to his pension is appropriately secured (within the meaning of section 19 of the Pension Schemes Act 1993).

2

The earnings factors of such a teacher shall be determined for the purposes of section 14(2) of that Act–

a

by reference to the last order under section 21 of the Social Security Pensions Act 19755 or section 148 of the Social Security Administration Act 19926 to come into force before the end of the tax year in which he ceased to be a pensionable employee; and

b

without reference to the last such order to come into force before the end of the final relevant year.

3

The weekly equivalent mentioned in section 14(2) of the Pension Schemes Act 1993 shall be increased by at least the prescribed percentage for each relevant year after the end of the tax year in which he ceased to be a pensionable employee and in accordance with such additional requirements as may be prescribed for the purposes of section 16(3)7 of that Act.

4

In this regulation–

• “relevant year” and “final relevant year” have the meanings given respectively in sections 14(8)8 and 16(5) of the Pensions Schemes Act 1993;

• “prescribed percentage” has the meaning given in regulation 62 of the Occupational Pension Schemes (Contracting-out) Regulations 19969.

Pensionable salaryE29

1

Subject to paragraph (13), a teacher’s pensionable salary–

a

where the material part of his terminal service is one year or more, is his full salary for the best consecutive 365 days of that part; and

b

in any other case, is the average annual rate of his full salary for that part.

2

In determining, for the purposes of paragraph (1), what are the best consecutive 365 days of the material part of the teacher’s terminal service, days on which the teacher is not in pensionable employment are disregarded.

3

Terminal service comprises–

a

any period spent by the teacher in pensionable employment;

b

any period counting as reckonable service by virtue of regulation D4 (current added years purchased by additional contributions);

c

any period of comparable British service which began before 1st April 1974 and has not been followed by a period of pensionable employment and for which a transfer value has been accepted;

d

subject to paragraph (4), any period of a kind described in paragraphs 5 to 8 of Schedule 8; and

e

any period counting as reckonable service by virtue of regulation C8A (service in a reserve force).

4

A teacher who is in an employment falling within paragraphs 5 to 8 of Schedule 8 may, by giving written notice to the Secretary of State, elect that from the date from which the election takes effect the employment is not to constitute terminal service.

5

An election under paragraph (4)–

a

if the notice is received before the teacher attains the age of 60, takes effect from his 60th birthday; and

b

in any other case, takes effect from the first day of the month following that in which the notice was received.

6

The material part of a teacher’s terminal service is–

a

where he has less than three years of such service, the whole of it; or

b

in any other case, the last three years of it.

7

In determining the material part of a teacher’s terminal service, periods when the teacher was not in pensionable employment shall be disregarded and accordingly the period of three years referred to in paragraph (6) may be discontinuous.

8

For the purposes of paragraphs (2), (3)(a) and (7) a teacher who is employed under a contract whereby that teacher is available for work but only undertakes (and accordingly is only paid for) work when, and for periods, requested by the employer is not treated as being in pensionable employment during periods when he is not undertaking work (whether or not such a teacher would be so treated apart from this paragraph).

9

Subject to paragraphs (10) and (11), a teacher’s full salary–

a

for a period falling within paragraph (3)(a), is his contributable salary for the period of pensionable employment, disregarding any reduction during sick leave or maternity leave;

b

for a period falling within paragraph (3)(b), is the notional salary by reference to which the additional contributions paid under regulation C8 or C8A were calculated; and

c

for a period falling within paragraph (3)(c), is what would have been his salary for the purpose of calculating benefits under the pension scheme to which he was subject in the relevant employment;

d

for a period falling within paragraph (3)(d), is what would have been his salary for the purpose of calculating benefits under the superannuation scheme to which he was subject in the relevant employment; and

e

for the period falling within paragraph (3)(e), is the notional salary by reference to which the additional contributions paid under regulation C8A were calculated.

10

For–

a

a period of pensionable employment; or

b

a period counting as reckonable service by virtue of regulation D4,

beginning after 31st July 1975 and ending before 1st August 1978, a teacher’s full salary includes any sums that would have been payable to him if payment of them had not been withheld, whether by virtue of an enactment or otherwise, in order to comply with limits referred to in section 1 of the Remuneration, Charges and Grants Act 197512.

11

For–

a

a period of pensionable employment; or

b

a period counting as reckonable service by virtue of regulation D4,

beginning after 31st March 1979 and ending before 1st September 1980, a teacher’s full salary is the notional salary resulting from the application to him of the Teachers' Superannuation (Notional Salaries) (Scotland) Regulations 198213.

12

Where a teacher has during the material part of his terminal service spent any period employed in part-time service, the full salary for that period shall be the amount which it would have been if the employment had been in full-time service during that period.

13

If the Secretary of State is satisfied that the salary of a teacher has been unreasonably increased in respect of any period which is in the opinion of the Secretary of State relevant for the purposes of this regulation, his pensionable salary shall be calculated by reference to such a salary in respect of that period as the Secretary of State considers reasonable.

a

the date six months after the guarantee date

Employers' contributions – employees' elections under regulation C1AG9A

1

In this regulation “employer A”, “employer B” and “employer C” have the same meaning as in regulation C1A(1)(b) and (6)(c).

2

Where a teacher who falls within regulation C1A(1)(a) has made an election under regulation C1A(1), the teacher’s employer may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by that employer.

3

Where a teacher who falls within regulation C1A(1)(b) has made an election under regulation C1A(1), either employer A or employer B may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by employer A or employer B, as the case may be.

4

Where a teacher who has made an election under regulation C1A(1) ceases to be in pensionable employment in circumstances where–

a

his election continues to have effect by virtue of regulation C1A(6)(c)(ii); and

b

an election has been made under paragraph (2) or under paragraph (3) by employer B; and

c

the employer who made the election does not confirm that election under paragraph (7)(a)(ii),

employer C may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by employer C.

5

In paragraphs (2) and (3) “the contribution deficit” means contributions of the required percentage of the difference between the teacher’s actual contributable salary and his contributable salary at the rate referred to in regulation C1A(4).

6

An election for the purposes of paragraph (2), (3) or (4)–

a

must be made by giving written notice to the Secretary of State;

b

has effect–

i

in the case of an election under paragraph (2) or (3), from the date on which the teacher’s election under regulation C1A(1) has effect, or from the end of the month in which the election was made, whichever is the later; and

ii

in the case of an election under paragraph (4), from the date on which the teacher takes up employment with employer C or from the end of the month in which the election was made, whichever is the later;

c

shall state whether the employer elects to pay the whole of the contribution deficit or a proportion of it and if so what that proportion is; and

d

is irrevocable.

7

An election made under paragraph (2), under paragraph (3) by employer B or under paragraph (4) ceases to have effect–

a

in the case of an election under paragraph (2) or (3), if the teacher ceases to be employed by the employer who made the election unless–

i

the teacher elects to pay additional contributions under regulation C8A; or

ii

by virtue of regulation C1A(6)(c)(ii) the teacher’s election does not cease to have effect and the employer confirms the election before the date on which the teacher takes up employment with the new employer; and

b

in the case of an election under paragraph (4), if the teacher ceases to be employed by the employer who made the election unless he elects to pay additional contributions under regulation C8A.

8

An election made under paragraph (3) by employer A ceases to have effect if the teacher ceases to be in pensionable employment unless he–

a

elects to pay additional contributions under regulation C8A, or

b

takes up pensionable employment with another employer within six months of ceasing to be in pensionable employment.

9

Where, in relation to a teacher who falls within regulation C1A(1)(b)–

a

there are at any time elections by both employer A and employer B, or, as the case may be, both employer A and employer C; and

b

if both elections were fully effective their combined effect would be that more than the contribution deficit would be paid to the Secretary of State,

the election by employer B or, as the case may be, employer C shall have full effect but the election by employer A shall have effect only to the extent of the difference (if any) between the contribution deficit and the amount which is the subject of the election by employer B or employer C.

Modified application in case of employment at reduced salaryH1

1

If–

a

a teacher who has been in pensionable employment either–

i

continues to be employed by the same employer, or

ii

ceases to be employed and is re-employed within six months (whether by the same or a different employer)

at a reduced rate of contributable salary; and

b

where he continues to be employed by the same employer, is employed in a different post; and

c

he does not make an election under regulation C1A(1) that his contributable salary is to be treated as having continued at the previous rate; and

d

the relevant employer notifies the Secretary of State in writing of the matters specified in paragraph (2) before–

i

the date which is three months after the first day of his employment at the reduced rate, or

ii

15th July 1998,

whichever is the later; and

e

the application to him of this paragraph would, taking into account prospective increases under the Pensions (Increase) Act 1971 of benefits under Part E, be beneficial,

these Regulations have effect in relation to him with the modifications set out in Part II of Schedule 9.

2

For the purposes of paragraph (1)(d) the matters which are to be notified to the Secretary of State are–

a

where the teacher continues to be employed with the same employer or ceases to be employed and is re-employed by the same employer, that the teacher’s employment at a reduced rate of contributable salary is in the interests of the efficient discharge of the employer’s functions; and

b

where the teacher ceases to be employed by one employer and is re-employed by a different employer–

i

that the teacher had provided satisfactory service throughout the period of the teacher’s employment with the relevant employer; and

ii

that the teacher had ceased employment with the relevant employer with the intention of seeking employment in a new post with less responsibility.

3

For the purposes of this regulation–

a

the contributable salary of a teacher in part-time service is to be taken to be what it would have been if he had been employed in full-time service; and

b

the “relevant employer” is–

i

where the teacher ceases to be employed by one employer and takes up employment with a different employer, the teacher’s former employer; and

ii

in any other case, the teacher’s employer.

4

A second or subsequent application of paragraph (1) does not affect its previous operation.

3

1

Subject to sub-paragraph (5), this paragraph applies where a teacher paying additional contributions for a past period in accordance with Part III of Schedule 4–

a

ceases to be in full-time pensionable employment before the end of the contribution period; and

b

does not again enter such employment within one month and before becoming entitled to payment of retiring allowances,

and no lump sum payment is made under paragraph 15 of Schedule 4.

2

Subject to sub-paragraph (4), the teacher is entitled to count as reckonable service–

$A\times \genfrac{}{}{0.1ex}{}{C}{B}$

where–

• A is the past period,

• B is the contribution period, and C is so much of the contribution period as had elapsed when the pensionable employment ended.

3

This sub-paragraph applies where–

a

when the pensionable employment ended the teacher was incapacitated and had not attained the age of 60; or

b

he died while in the pensionable employment; or

c

he dies within three months after the end of the pensionable employment without having made an election under paragraph 15 of Schedule 4.

4

Where sub-paragraph (3) applies–

a

if when the pensionable employment ended at least one year of the contribution period had elapsed, the teacher is entitled to count the whole of the past period as reckonable service; and

b

in any other case, he is not entitled to count any period as reckonable service and the additional contributions paid are to be refunded.

5

This paragraph also applies where an election in respect of which additional contributions for a past period were paid by a teacher in accordance with Part III of Schedule 4 is revoked in accordance with regulation C3(13), but in this case references to the end of pensionable employment shall be read as references to the first day of the month following the date on which revocation of that election was accepted by the Secretary of State.