The Teachers' Superannuation (Amendment) Regulations 1988

Explanatory Note

(This note is not part of the Regulations)

These Regulations further amend the Teachers' Superannuation Regulations 1976 (“the principal Regulations”).

Regulation 2 adds a number of definitions of expressions used in later provisions concerning transfer values, and also amends the definition of “salary”.

Regulation 3 adds to the categories of part-time employment that may, on election, be treated as full-time (and therefore pensionable).

Regulation 4(a) requires the return by instalments of contributions that have been repaid to a full-time teacher employed in England or Wales to be completed by his 61st birthday; regulation 4(b) provides that if payment of such instalments is discontinued those already paid are to be repaid, unless the teacher pays the outstanding balance as a lump sum, and regulation 5 makes similar provision in relation to instalments payable by part-time teachers and teachers employed elsewhere in the British Islands.

Regulation 6, with the Schedule substituted by regulation 13 for Schedule 4 to the principal Regulations, effects the replacement of provisions in those Regulations which concerned the payment of contributions for family benefits; regulations 8 and 9 make related amendments to provisions governing entitlement to such benefits. The main effect of these regulations is that married women are enabled to purchase service before 6th April 1988 (the date from which provision for widowers' benefits was introduced by the Teachers' Superannuation (Miscellaneous Provisions) (No. 2) Regulations 1988, (S.I. 1988/816) ) which would otherwise not have counted towards widowers' benefits. There are also minor changes in the effect of provisions governing the payment of family benefit contributions by men and unmarried women.

Regulation 7, with regulation 1(1), retrospectively corrects a provision substituted by S.I. 1988/816.

Regulation 10, with the Schedule substituted by regulation 14 for Schedule 7 to the principal Regulations, effects the replacement of provisions in those Regulations which concerned the payment and receipt of transfer values. The substituted provisions are compatible with the rights to cash equivalents conferred from 1st January 1986, with direct and overriding effect, by Schedule 1A to the Social Security Pensions Act 1975.

As a general rule, where such a right is acquired there is no right to a transfer value under the Regulations; where there is, the transfer value is to be calculated in the same way as a cash equivalent except in cases where it is payable to a scheme outside the public-sector “club” and the relevant service includes service before the commencement of these Regulations. Rights in relation to such earlier service are preserved by calculating that element of the transfer value on the previously existing basis if that produces a more favourable result. On most inward transfers, the service credit allowed on receipt of a transfer value is the amount of service that would have enabled a cash equivalent of that value to be paid. Where the transfer was from a scheme outside the “club” and occurred before 1st January 1986, the service credit is calculated on the basis that existed before the commencement of these Regulations.

Regulation 11 adds to the categories of full-time employment that are pensionable.

Regulation 12 reduces from 5 years to one year the minimum contribution period for the purchase of past added years, and supplies the necessary tables.

Section 12 of the Superannuation Act 1972 confers express power to make regulations retrospective in effect. These Regulations are to a certain extent retrospective, but regulation 15 makes transitional provision for opting out where rights in relation to ex-employees are adversely affected.