The Teachers' Superannuation (Scotland) Regulations 2005

Repayment of returned contributions

C14.—(1) A teacher to whom contributions were returned before 1st June 1973–

(a) who is in pensionable employment; or

(b) who is in comparable British service and in respect of whom no transfer value has been paid since the end of his or her last pensionable employment,

may at any time, by giving written notice to the Scottish Ministers, elect to repay the contributions, with interest, to them.

(2) Interest is payable at the rate of 3.5 per cent per annum from the date on which the contributions were returned to the date on which their repayment is completed, and–

(a) where the repayment is made by a single payment, is payable on the full amount of the contributions and is compounded with yearly rests; and

(b) where the repayment is made by instalments, is payable on the balance for the time being outstanding and is compounded with yearly rests on 31st March.

(3) While a teacher is in pensionable employment, payments under this regulation shall be made in instalments and are, subject to paragraph (5), payable–

(a) at equal intervals, of not more than 6 months; and

(b) for a whole number of years not exceeding 5 and ending before his or her 60th birthday.

(4) Instalments are of equal amounts unless in any year the payment of an instalment of an amount equal to that paid in previous years would exceed the limit specified in paragraph (5) and in that event the instalments (and the corresponding period over which they are payable) shall be recalculated so that they do not exceed that limit.

(5) The annual amount of instalments paid under paragraph (3) is to be such that (A + B) does not exceed 15 per cent of the annual rate of the teacher’s contributable salary in the year where–

• A is the annual amount of the instalments; and

• B is the annual amount of other contributions paid under Part C (except any treated as employer’s contributions) or towards the provision of a pension otherwise than under these Regulations.

(6) If a teacher has commenced payment of instalments in accordance with this regulation and before they have all been repaid–

(a) he or she becomes entitled to payment of retirement benefits; or

(b) a death grant becomes payable in respect of him or her,

the balance outstanding, less any interest previously calculated but which relates to a future period of repayment, is to be deducted from the appropriate terminal sum and the repayment of contributions is to be treated as having been completed.

(7) If, in a case not falling within paragraph (6), a teacher who has commenced payment of instalments in accordance with this regulation ceases to be employed in pensionable employment before completing payment, he or she shall make a single payment of the balance outstanding, less any interest previously calculated but which relates to a future period of repayment.

(8) For the purposes of this regulation, a teacher is to be treated as being in pensionable employment if he or she is paying additional contributions under regulation C8 or under regulation C9.

(9) This regulation does not apply to a teacher who is in pensionable employment by virtue of regulation B9.