The Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996

Lump sum compensation and annual compensation

5.—(1) A designated teacher shall, on ceasing to hold his former employment, be entitled to receive lump sum compensation and annual compensation.

(2) Subject to regulations 11 and 12, the amount of the lump sum compensation is

A - B,

where–

• A is the amount which is calculated according to the formula in regulation E7(1) of the Superannuation Regulations, subject to the substitution of the additional period of service credited under regulation 4 in place of effective reckonable service; and

• B is the amount of the lump sum, if any, to which the designated teacher is to be treated, under paragraph 6 of Schedule 2, as previously entitled, calculated in accordance with paragraph 7(a) of that Schedule.

(3) Subject to regulations 13 and 14, the rate of the annual compensation is

C - D,

where–

• C is the annual rate which is calculated according to the formula in regulation E6(1) of the Superannuation Regulations, subject to the substitution of the additional period of service credited under regulation 4 in place of effective reckonable service; and

• D is the annual rate of allowance, if any, to which the designated teacher is to be treated, under paragraph 6 of Schedule 2, as previously entitled, calculated in accordance with paragraph 7(b) of that Schedule.

(4) Where an additional period of service is credited to an eligible teacher who has already died, any payment to which he became entitled while alive in accordance with this regulation shall be payable to his personal representatives.