The Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Amendment Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996 (“the 1996 Regulations”). In addition to minor amendments made by regulations 3, 6 and 9, the main changes are as follows.

Regulation 4 amends the existing provisions regarding discretionary compensation for premature retirement (Part II of the 1996 Regulations). The amendments make it clear that teachers are eligible for that type of discretionary compensation only if they do not receive the separate discretionary compensation for termination which is being introduced by regulation 7 (new Part IIIA of the 1996 Regulations). The amendments also make it clear that, in the case of teachers between the ages of 50 and 60, compensation for premature retirement under Part II of the 1996 Regulations is available only if the employing authority agrees that early payment of pension benefits is appropriate.

Regulation 5 provides that, in the calculation of the amounts of compensation awarded under regulation 5 of the 1996 Regulations, there shall be disregarded the actuarial reduction of the lump sum and pension under the teachers' pension scheme (which reduction is consequential upon provisions in the Teachers' Superannuation (Scotland) Amendment Regulations 1997 (“the 1997 Regulations”)).

Regulation 7 inserts 2 new Parts into the 1996 Regulations.

Part IIIA gives teachers' employers the power to make discretionary compensation payments for termination of employment to persons (described in regulation 16A) whose employment has ceased either because of redundancy or in the interests of the efficient exercise of the employer’s functions but who are not then eligible for early payment of pension benefits. The compensation takes the form of a lump sum calculated by reference to length of qualifying employment and the amount of a week’s pay (within specified limits).

Part IIIB adds new provisions for the payment of mandatory compensation, by all teachers' employers, to teachers aged 50 or over who are made redundant or granted premature retirement on the grounds of the efficient exercise of the employer’s functions.

New regulation 16C stipulates that the amount of compensation to be paid is the difference between the lump sum and pension paid, actuarially reduced as a result of the 1997 Regulations, and the lump sum and pension which would have been paid under the teachers' pension scheme if the actuarial reduction had not applied.

New regulation 16D provides that where the retirement pension received from the teachers' pension scheme is to be abated on re-employment, the mandatory compensation received under new regulation 16C is to be abated in the appropriate proportion.

New regulation 16E provides for the payment of a supplementary deficiency grant, equal to the amount by which the deficiency grant from the teachers' pension scheme is reduced as a consequence of the actuarial reduction of benefits payable from the scheme.

New regulation 16F provides for the payment of short-term compensation upon death, equal to any reduction in short-term pension payable from the teachers' pension scheme which follows the payment of an actuarially reduced pension.

New regulation 16G provides for the employer to notify the teacher in writing of compensation payable under regulation 16C or 16F, or of any adjustment under regulation 16D.

Regulations 8 and 10 amend regulations 17 and 19 of the 1996 Regulations, to take account of the fact that compensation under new Parts IIIA and IIIB is payable by any employer (not just employing authorities).

Regulation 11 is a new provision enabling employers, in the context of compensation under Parts II and IIIB of the 1996 Regulations, to arrange for that compensation to be paid by another person with appropriate reimbursement.

Regulation 12 amends paragraph 1 of Schedule 4 to the 1996 Regulations (reduction of annual compensation during new employment) in order to take account of any compensation which a teacher is receiving under new regulation 16C following actuarial reduction of his teachers' scheme pension.