The Teachers' Pension Scheme Regulations 2014

PART 1 E+W General

Interpretation of Schedule E+W

1.  In this Schedule—

“additional pension contributions” means contributions for an additional pension;

“additional pension election” means an election under Chapter 1 of Part 2 of this Schedule;

“amount of accrued extra earned pension” means the amount of accrued earned pension attributable to a faster accrual election;

“amount of extra pension” has the meaning given in paragraph 2;

“buy-out contributions” means contributions to buy out the standard reduction;

“buy-out election” means an election under Chapter 1 of Part 4 of this Schedule;

“buy-out value” means an amount determined or re-determined by the scheme manager in accordance with Part 4 of this Schedule;

“contributions” means—

(a)

additional pension contributions;

(b)

faster accrual contributions; or

(c)

buy-out contributions;

“contributions payment period”, for contributions paid monthly, means the period which—

(a)

begins on the start date; and

(b)

ends on the date on which the final monthly payment is due;

“election” means—

(a)

an additional pension election;

(b)

a faster accrual election; or

(c)

a buy-out election;

“faster accrual contributions” means contributions for a faster accrual rate;

“faster accrual election” means an election under Chapter 1 of Part 3 of this Schedule;

“faster accrual rate”, in relation to P's pensionable earnings, means 1/45th, 1/50th or 1/55th;

“monthly payments”, in respect of an election, means contributions paid monthly;

“overall amount” means the overall amount of extra pension as defined in paragraph 3;

“refund period”, in relation to additional pension contributions, means the period ending one year after the start date;

“start date”—

(a)

for contributions paid by lump sum, means the date on which the scheme manager receives the lump sum; and

(b)

for monthly payments, means the first day of the second month after the month in which the election is accepted.

Meaning of “amount of extra pension” E+W

2.  The amount of extra pension for a person (P) at any given time is the sum of the following—

(a) the amount of accrued extra earned pension (if any) at that time;

(b) the amount of accrued additional pension (if any) at that time;

(c) the buy-out value at that time, if P has elected to buy out the standard reduction.

Meaning of “overall amount of extra pension” E+W

3.—(1) The overall amount of extra pension is—

(a) £6,500 for any financial year ending before 1st April 2016; and

(b) for any financial year beginning on or after that date—

(i) an amount determined by the Treasury for that financial year; or

(ii) if the Treasury has not determined an amount for that financial year, the amount calculated under sub-paragraph (2).

(2) If the Treasury has not determined an amount under sub-paragraph (1)(b)(i) for any financial year, the overall amount for that financial year is the amount to which the annual rate of a pension of an amount equal to the overall amount for the previous financial year would have been increased under PIA 1971 [F1 rounded to the nearest £100,] if—

(a) that pension were eligible to be so increased; and

(b) the beginning date for that pension were the first day of the previous financial year.

Textual Amendments

F1 Words in Sch. 2 para. 3(2) inserted (1.4.2015) by The Teachers Pension Scheme (Amendment) Regulations 2014 (S.I. 2014/2652), regs. 1, 30

Limit on elections E+W

4.—(1) The scheme manager must not accept an additional pension election or a faster accrual election in relation to a member (P) at any time if—

(a) the scheme manager has accepted a buy-out election from P; and

(b) the buy-out value at that time exceeds the overall amount of extra pension at that time.

(2) The scheme manager must not accept an additional pension election or a faster accrual election that would result in the amount of extra pension exceeding the overall amount of extra pension.

Actuarial advice E+W

5.  The scheme manager must take advice from the scheme actuary before determining any amount under this Part.