Statutory Instruments
education, England and Wales
Made
22nd November 2006
Laid before Parliament
7th December 2006
Coming into force
1st January 2007
The Secretary of State for Education and Skills makes these Regulations in exercise of powers conferred by sections 9, 12 and 24 of, and Schedule 3 to, the Superannuation Act 1972(1).
In accordance with section 9(5) of that Act he has consulted with representatives of local education authorities and of teachers and with representatives of other persons likely to be affected.
In accordance with sections 9(1) and 24(1) of that Act these Regulations are made with the consent of the Treasury(2).
1. These Regulations may be cited as the Teachers Pensions etc. (Reform Amendments) Regulations 2006 and come into force on 1st January 2007.
2.—(1) The Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994 (3) are amended in accordance with Schedule 1.
(2) The Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997 (4) are amended in accordance with Schedule 2.
(3) The Teachers’ Pensions Regulations 1997(5) are amended in accordance with Schedule 3, together with Schedule 4.
3. Schedule 5 (which contains transitional provisions and savings) has effect.
4.—(1) In this regulation—
“the 1994 Regulations” means the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994,
“the 1997 Pensions Regulations” means the Teachers’ Pensions Regulations 1997.
(2) This regulation applies to a person—
(a)to whom a protected benefit is being paid or may become payable, and
(b)who is placed in a worse position than he would have been if a provision made by these Regulations had not applied in relation to the protected benefit.
(3) A protected benefit is one which is being paid, or may become payable, under the 1994 Regulations or the 1997 Pensions Regulations to, or in respect of, a person who was employed in qualifying employment but ceased to be employed, or died, before 1st January 2007.
(4) A person to whom this regulation applies may, by giving written notice to the Secretary of State before 1st April 2007, elect that the relevant provision shall not apply in relation to the protected benefit.
(5) If the election under paragraph (4) is made in relation to the benefit of a person who is in pensionable employment or subsequently becomes re-employed in pensionable employment—
(a)the election shall have effect in relation to the benefit only to the extent that it accrues or has accrued by virtue—
(i)of periods of reckonable service before the cessation referred to in paragraph (3) (or, if there has been more than one cessation, the last of them before 1st January 2007), or
(ii)of contributions paid in respect of such periods of reckonable service, and
(b)in determining entitlement to, or the amount of, the benefit to that extent he shall be treated as if he had never re-entered pensionable employment again at any time after the cessation referred to in paragraph (3) (but without prejudice to the application of this paragraph),
and the 1994 Regulations and the 1997 Pensions Regulations shall apply accordingly.
(6) In paragraph (3) “qualifying employment”, in relation to the 1994 Regulations, means pensionable employment within the meaning of those regulations and, in relation to the 1997 Regulations, means pensionable employment or excluded employment within the meaning of those regulations.
Andrew Adonis
Parliamentary Under Secretary of State
Department for Education and Skills
19th November 2006
Alan Campbell
Kevin Brennan
Two of the Lords Commissioners of Her Majesty’s Treasury
22nd November 2006
Regulation 2(1)
1. In regulation 2(3)—
(a)insert the following definition at the appropriate place in alphabetical order—
““normal pension age” is to be construed in accordance with the 1997 Regulations;”,
(b)in the definition of “dependant” in sub-paragraph (c) after “a nomination under regulation” insert “E22A or”,
(c)omit the definition of “retire”.
2. For regulation 5(4) substitute—
“(4) A person who has continued to pay regular contributions up to his normal pension age, but does not then cease to be in pensionable employment, may elect to pay regular contributions up to his first birthday after he reached the normal pension age to provide for a lump sum death benefit; and, so long as he has not ceased to be in pensionable employment, further elections may be made annually in respect of years commencing on his first birthday after he reached the normal pension age and subsequent birthdays.”.
3. In regulation 6(1)(a) omit “subject to regulation 8(3)”.
4. In regulation 12 —
(a)for paragraph (1) substitute—
“(1) In this regulation “the relevant date”, in relation to a contributor or participator, means—
(a)the date on which he attains the age of 55, or
(b)the date on which he becomes entitled to payment of retirement benefits under regulation E4 of the 1997 Regulations,
whichever is the earlier.
(1A) The benefits that may be provided at any time after the relevant date in accordance with this regulation under a pension policy purchased as described in paragraph (7) are a retirement pension, one or more dependants’ pensions or a lump sum which is a pension commencement lump sum for the purposes of Part 1 of Schedule 29 to the 2004 Act.”,
(b)in paragraph (2) for “the date of retirement” substitute “the relevant date”,
(c)in paragraph (5) for “Not earlier than one month before retirement, a participator, by giving written notice to the Secretary of State, may” substitute “A participator may, at any time, but not earlier than one month before the relevant date, by giving written notice to the Secretary of State”.
(d)for paragraph (6) substitute—
“(6) In the case of a retirement pension, the notice may also specify that, if the participator dies within the period of 5 years beginning when the retirement pension commences, the pension shall continue to be paid during the remainder of that period to such person as the authorised provider or the Secretary of State, where he is liable to make payments of the pension pursuant to regulation 16(2), determines.”.
(e)in paragraph (9) for “retirement” in both places where the word occurs substitute “the relevant date”.
5. In regulation 13A—
(a)in paragraph (4) for “the age of 60” substitute “the normal pension age”,
(b)in paragraph (7)(b) for “retirement” substitute “the relevant date”.
6. In regulation 16—
(a)in paragraph (2A) at the beginning insert “Subject to paragraphs (2B) and (2C)”,
(b)after paragraph (2A) insert—
“(2B) The Secretary of State may, before paying any lump sum as mentioned in regulation 12(1A) require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2C) by a date determined by the Secretary of State.
(2C) The declaration is a declaration, in a form specified by the Secretary of State, signed by that person, to the effect that paragraph 3A of Schedule 29 to the 2004 Act (6) does not apply.
(2D) Where no such declaration is received by the Secretary of State by the date referred to in paragraph (2B) the Secretary of State may treat the election under regulation 12 for a lump sum benefit as of no effect, and may apply the amount of the lump sum to the purchase of a pension policy from the insurance company referred to in regulation 9 to provide such benefits as appear to him to be suitable.”.
Regulation 2(2)
1. In regulation 2—
(a)in paragraph (1)(c) for “the Superannuation Regulations” substitute “the Pensions Regulations”,
(b)in paragraph (2) omit the definitions of —
(i)“civil partner” and “civil partnership”, and
(ii)“tax year”.
2. In regulation 3—
(a)in paragraph (3) omit “7 or 25”,
(b)in paragraph (5)—
(i)insert “or” at the end of sub-paragraph (a),
(ii)omit sub-paragraphs (c), and (d),
(c)omit paragraph (6),
(d)in paragraph (7)—
(i)insert “and” at the end of sub-paragraph (c),
(ii)omit sub-paragraph (d).
3. In regulation 4(7)—
(a)for sub-paragraph (b) (iii)substitute—
“(iii)in the case of a person who was in part-time employment, he would have completed such a qualifying period if he had made an election under regulation B1(4) of the Pensions Regulations in respect of any period of employment for which an election is required pursuant to that paragraph for part-time employment to be pensionable,”,
(b)in sub-paragraph (e)(ii) for “the age of 60” substitute “the normal pension age”.
4. In regulation 7—
(a)in paragraph (1) for “E5(3) and E6(3)” substitute “E5(6) and E6(5)”,
(b)in paragraph (2) for “E6(3)” substitute “E6(5)”,
(c)in paragraph (3) for “E5(3)” substitute “E5(6)”,
(d)in paragraph (4) for “E5(5)”, in both places where it occurs, substitute “E5(9)”.
5. In regulation 12—
(a)in paragraph (4)(c) for “E5(3) or E6(3)” substitute “E5(6) or E6(5)”, and
(b)in paragraph (5) for “E5(3) or E6(3)”, in both places where it occurs, substitute “E5(6) or E6(5)”.
6. Omit regulation 13.
7. In regulation 15(7) omit “any allocation under regulation 13 and”.
8. In regulation 16 —
(a)in paragraph (1) and the Table after “civil partner” (in both cases) insert “, surviving nominated partner”,
(b)after paragraph (4) insert—
“(4A) But paragraph (4) does not apply to any long-term adult compensation payable following the death of a person who was in pensionable employment after 31st December 2006 or who would have been in such employment after that date but for an election under regulation B5 of the Pensions Regulations.”.
9. In regulation 22—
(a)in paragraph (3)(a) omit “D or”,
(b)in paragraph (4)(a) omit “D or”.
10. After regulation 23 insert—
23A.—(1) The compensating authority may, before paying any lump sum under regulation 7, require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the compensating authority.
(2) The declaration is a declaration, in a form specified by the Secretary of State, signed by that person, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004(7) does not apply.
(3) Where no such declaration is received by the compensating authority by the date referred to in paragraph (1) the compensating authority may, in place of the lump sum, pay additional annual compensation representing the value of the lump sum.
(4) The amount of additional compensation referred to in paragraph (3) shall be determined by the compensating authority on the same basis as an additional pension is determined by the Secretary of State pursuant to regulation H6A of the Pensions Regulations.”
11. In regulation 29(3) omit “and where it fell within category G it shall be regarded as fully within category D in these Regulations.”
12. In Schedule 1, Part 1 omit “D,”.
Regulation 2(3)
1. In regulation A3(2)—
(a)for “regulations C4(3)” substitute “old regulation C4(3) and regulations C3C,”,
(b)for “regulation C4(3)” substitute “old regulation C4(3), or regulation C3C,”,
(c)after “G8(1)” insert “G8(1A),”.
2. In regulation B1—
(a)in paragraph (1) for “B7” substitute “B6”,
(b)for paragraph (4) substitute—
“(4) A person who was in part-time employment on the 31st December 2006 is not, for so long as he remains in the same employment, in pensionable employment unless he has at some time made an election for the purposes of this paragraph.”,
(c)after paragraph (4) insert—
“(4A) Where a person is in full-time employment and at the same time in part-time employment the part-time employment is not pensionable employment, and accordingly —
(a)where an election was made before 1st January 2007, pursuant to paragraph (4), that such part-time employment should be pensionable, any such part-time employment on or after 1st January 2007 is (despite the election) no longer pensionable, and
(b)any election made on or after 1st January 2007 pursuant to paragraph (4) that such part-time employment is to be pensionable is of no effect.”,
(d)after paragraph (5) insert—
“(5A) A person who, before 1st January 2007,
(a)was entitled to be paid a teacher’s pension, including cases where the annual rate of pension had been reduced to zero in accordance with regulation E14 (abatement of retirement pension during further employment),
(b)was in employment of a kind referred to in paragraph (1), and
(c)had not made an election under regulation B7 (as it had effect before 1st January 2007) that his employment should be pensionable
is not, for so long as he remains in the same employment, in pensionable employment unless he makes an election under regulation B6 or falls within paragraph (5B).
(5B) A person falls within this paragraph if he is entitled to payment of retirement benefits by virtue of regulation E4(3) or (4) (incapacity) and ceases to be incapacitated.”.
(e)after paragraph (7) insert—
“(7A) Where the election is made by a person with mixed service or a 2007 or later entrant and, pursuant to paragraph (7), has effect from a date earlier than that referred to in paragraph (6) all pensionable employment during the back period shall be treated as having occurred—
(a)after the post-break employment start, where the election is made by a person with mixed service, or
(b)on or after 1st January 2007, where the election is made by a 2007 or later entrant. ”.
3. In regulation B4—
(a)in paragraph (1)(a) for “under 70” substitute “under 75”,
(b)after paragraph (1) insert—
“(1A) Unless he has attained the age of 60, a person to whom a teacher’s pension is paid by virtue of him being entitled to such a pension pursuant to regulation E4(4) or regulation E4(6) of the 1988 Regulations (incapacity) and who is in employment of a kind referred to in regulation B1(1), even though he has not ceased to be incapacitated, is not in pensionable employment.”,
(c)omit paragraph (2).
4. In regulation B5—
(a)for paragraph (2)(a) substitute—
“(a)the person ceases to be in pensionable employment for all purposes of these Regulations (and accordingly if, when the election has effect, the person is a party to more than one contract of employment then all the employments in which the person is engaged cease to be pensionable), and”,
(b)in paragraph (2) (b) omit “in any case”,
(c)at the end of paragraph (4) insert “(without prejudice to the effect of paragraph (2)(a) in relation to any other employment in which the person is engaged at the time when the election has effect)”.
5. In regulation B6—
(a)after paragraph (1) insert—
“(1A) A person to whom sub-paragraphs (a) to (c) of regulation B1(5A) applies or has applied who—
(a)is in employment which would otherwise have been pensionable employment, or
(b)is not in, but expects to enter, such employment,
may also at any time, by giving written notice to the Secretary of State, make an election under this regulation.”,
(b)in paragraph (3) after “paragraph (1)(a)” insert “or, subject to paragraph (5), paragraph (1A)(a)”,
(c)in paragraph (4) after “paragraph (1)(b)” insert “or (1A)(b)”,
(d)after paragraph (4) insert—
“(5) Where the person making the election falls within paragraph (1A) and is in the same employment as he was in immediately before 1st January 2007 the election may, provided that the contributions payable under regulations C3B and G8(9) are paid, have effect as from such date earlier than that specified in paragraph (3) as the employer may agree.
(6) The earlier date referred to in paragraph (5) may not however be a date before 1st April 2000 or the date on which the further employment started, if after 1st April 2000.
(7) Where the person making the election falls within paragraph (1A) and is a person with mixed service, and the election has effect, pursuant to paragraph (5), as from a date earlier than that specified in paragraph (3) all pensionable employment before the date specified in paragraph (3) shall be treated as having occurred—
(a)after the post-break employment start, where the election is made by a person with mixed service, or
(b)on or after 1st January 2007, where the election is made by a 2007 or later entrant. ”.
6. Omit regulation B7.
7. In regulation C2—
(a)in paragraph (6)(c)(i) for “regulations C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)omit paragraph (11),
(c)for paragraph (12) substitute—
“(12) Paragraph (1) shall not apply where a person was in pensionable employment (before 1st October 2006) by virtue of regulation B7 as it had effect before 1st January 2007.”.
8. For regulation C3 substitute—
C3.—(1) In this regulation “relevant period” is to be construed in accordance with regulation G4(3).
(2) A person, other than a services education officer, who is in pensionable employment is to pay contributions of—
(a)6% of his contributable salary for the time being in respect of any period before 1st January 2007,
(b)6.4% of his contributable salary for the time being in respect of the relevant period starting on 1st January 2007, and
(c)X% of his contributable salary for the time being in respect of any subsequent relevant period, where X is the net contribution rate as defined in regulation G5(1) (b) less the required percentage determined in accordance with regulation G5 (employers’ contributions).
(3) A services education officer is to pay contributions equivalent to the total of—
(a)the contributions specified in paragraph (2), and
(b)the employer’s contributions that would have been payable if regulation G5 had applied.
(4) A person who has made an election under regulation C2(1) shall, in addition to the contributions referred to in paragraph (2), pay contributions of the required percentage of the difference between the person’s actual contributable salary and the contributable salary at the rate referred to in regulation C2(4) to the extent that such contributions are not paid by any employer referred to in regulation G6 under an election mentioned in that regulation.
(5) No contributions are to be paid by any person to whom regulation E32(2)(a) (restriction of reckonable service to 45 years) has become applicable.”.
9.—(1) For the heading to regulation C3A substitute “Contributions where an election has been made under regulation B1”.
(2) In regulation C3A(1) for paragraph (a) substitute—
“(a)a person has elected under regulation B1 that his employment should be pensionable;”.
10.—(1) For the heading to regulation C3B substitute “Contributions where an election under regulation B6(1A) is to take effect from an earlier date”.
(2) In regulation C3B—
(a)in paragraph (1)(a) for “regulation B7” substitute “regulation B6(1A)”,
(b)in paragraph (1)(b) for “regulation B7(2)(c)” substitute “regulation B6(5)”.
11. After regulation C3B insert—
C3C.—(1) Any person in pensionable employment who has not attained the normal pension age may at any time elect to pay additional contributions in accordance with Schedule 2A in order to be credited with additional benefits.
(2) The employer of a person in pensionable employment may at any time elect to pay additional contributions in accordance with Schedule 2A in order for that person to be credited with additional benefits.
(3) Where, pursuant to such an election and Schedule 2A, a person is credited with an increased retirement pension that pension—
(a)is to be paid to him in accordance with regulation E5A when he becomes entitled to payment of retirement benefits in accordance with regulation E4 or,
(b)is to be paid to him in accordance with regulation E4A if he is eligible for phased retirement benefits.
(4) Where, pursuant to such an election and Schedule 2A, a person is credited with increased benefits for his dependants, those benefits are to be paid in accordance with regulation E29A.”.
12. Omit regulations C4 and C5.
13. For regulation C6 substitute—
C6.—(1) Schedule 4 has effect where immediately before 1st January 2007 a person had elected to pay additional contributions under old regulation C4 and additional contributions remain to be paid.
(2) Schedule 5 has effect where immediately before 3rd February 1998 additional contributions remained to be paid by virtue of regulations 26, 28 or 29 of the 1976 Regulations or Part III of Schedule 4 to the 1988 Regulations.”.
14. In regulation C7(1)(a) for “regulation C4 or C5” substitute “old regulation C4 or old regulation C5”.
15. Omit regulation C9.
16. In regulation C10—
(a)in paragraph (3) for sub-paragraph (a) substitute—
“(a)the same percentage of the notional salary for so much of the period as falls within that financial year as would be paid if the person was liable to pay contributions under regulation C3(2); and”,
(b)in paragraph (4A) omit “(as defined in regulation C2(11))”,
(c)in paragraph (6) before “regulation C4” insert “old”.
17. In regulation C11 after paragraph (3) insert—
“(4) Parts IIB and III of Schedule 6 have effect for enabling family benefit contributions to be paid in order to secure, or to increase, family benefits for a surviving nominated partner in respect of reckonable service which is not relevant service as mentioned in regulation E27(2B).”.
18. In regulation C12(1)(e) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
19. In regulation C13(3)(a) for “regulations C3, C4, C9, C10 and C11” substitute “regulations C3 and C3C, old regulation C9, regulations C10 and C11 and under Part I of Schedule 4 as a result of an election under old regulation C4”.
20. In regulation C16—
(a)in paragraph (1)(a) for “otherwise than by virtue of regulation B7” substitute “other than a person who was entitled to be paid a teacher’s pension and, after becoming entitled to payment of a teacher’s pension re-entered pensionable employment”,
(b)in paragraph (10) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
21. In regulation C17(6)(a) for “if he elects to pay additional contributions for a current period under regulation C9 or C10” substitute “if he has elected to pay additional contributions for a current period under old regulation C9 or if he elects to pay additional contributions for a current period under regulation C10”.
22. In regulation C18—
(a)in paragraph (1)—
(i)after sub-paragraph (a) insert—
“(za)any additional contributions payable as a result of an election under regulation C3C,”,
(ii)in sub-paragraph (b) before “regulation C4” insert “old”,
(b)in paragraph (1A)—
(i)for “B7” substitute “B6(1A)”,
(ii)for “B7(2)(c)” substitute “B6(5)”,
(c)in paragraph (6) for “regulation C3A, C9, C10, C16 or C17” substitute “regulation C3A, old regulation C9, or regulations C10, C16 or C17”.
23. In regulation D4(1) before “regulation C9” insert “old”.
24. Before regulation E1 insert—
EA1.—(1) In these Regulations the expressions set out in paragraphs (2), (5), (7), (8), (9) and (10) have the meanings specified in those paragraphs.
(2) A “pre-2007 entrant” means a person who satisfies one of the conditions in paragraph (3).
(3) The conditions are—
(a)that the person was in pensionable employment before 1st January 2007 but is not in such employment on, or at any time after, that date, or
(b)that the person was in pensionable employment before 1st January 2007 and is also in pensionable employment at any time on or after that date but does not cease to be a pre-2007 entrant by virtue of paragraph (4).
(4) A person ceases to be a pre-2007 entrant if he takes up pensionable employment again (“the new employment”) after 31st December 2007 after a relevant break of service.
(5) A “relevant break of service” means a period ending after 31st December 2007 (and where there is more than one such period, the first of them) when a person is not in pensionable employment such that the interval between the first day of the new employment and the last day of the most recent previous period of pensionable employment is more than 5 years, and it is immaterial whether the last day of the most recent previous period of pensionable employment was before 1st January 2007 or not.
(6) For the purposes of determining the interval referred to in paragraph (5) any period of employment is ignored unless—
(a)the employment is pensionable employment of at least 60 days (which need not be continuous), or
(b)the employment which the person is entitled to count as reckonable service amounts to at least 30 days,
(in either case) in a period of 12 months starting at any time in the year.
(7) ”Post-break employment start” means the start of the new employment after a relevant break of service, and for the purposes of this definition, any periods of employment which are ignored for the purposes of determining the interval referred to in paragraph (5) are treated as having taken place before the start of the new employment.
(8) A “person with mixed service” means a person who was in pensionable employment before 1st January 2007 but who has ceased to be a pre-2007 entrant by virtue of paragraph (4).
(9) A “2007 or later entrant” means anyone other than a pre-2007 entrant or a person with mixed service who is or has been in pensionable employment.
(10) The “normal pension age” means the age of 60 in the case of a pre-2007 entrant and the age of 65 in any other case (except in relation to a pension credit member whose normal pension age is determined in accordance with regulation I2A).
(11) Where a person has been in comparable British service before entering pensionable employment the comparable British service shall, for the purposes of this regulation, be treated as if it were pensionable employment provided that neither a cash equivalent transfer value nor a transfer value has been paid in respect of the comparable British Service (other than a cash equivalent transfer value or transfer value accepted by the Secretary of State) nor has the balance of the person’s contributions relating to the comparable British service been repaid.
(12) For the purposes of this regulation—
(a)a person is treated as being in pensionable employment during any period for which he is paying additional contributions under old regulation C9 or regulation C10, and
(b)“comparable British service” does not include service which is pensionable under a superannuation scheme for teachers in public employment in the Channel Islands and the Isle of Man.”.
25. In regulation E1A(2)(b) for “the age of 60” substitute “the normal pension age”.
26. For regulation E2 substitute—
E2. Retirement benefits consist of—
(a)a retirement pension,
(b)a retirement lump sum where regulation E6 applies, and
(c)where applicable, a lump sum in place of part of a retirement pension (referred to in regulation E6A),
calculated in accordance with this Part.”.
27. In regulation E3(2A) for “If the person was in pensionable employment by virtue of regulation B7” substitute “If the person was entitled to be paid a teacher’s pension and has re-entered pensionable employment”.
28. In regulation E4—
(a)for paragraph (2)(a) substitute—
“(a)has, subject to paragraphs (2A) and (2B), attained the normal pension age,”,
(b)after paragraph (2) insert—
“(2A) Where the person is a person with mixed service, paragraph (2)(a) has effect —
(a)in relation to the part of the retirement pension referred to in regulation E5(2)(c)(i), and
(b)in relation to the retirement lump sum,
as if for “the normal pension age” there were substituted “the age of 60”.
(2B) Where the person is a person with mixed service in respect of whom an election under regulation C3C has been made and, at the time when the election was made the person had not ceased to be a pre-2007 entrant by virtue of regulation EA1(4), paragraph (2)(a) has effect, in relation to the part of the retirement pension referred to in regulation E5A, as if for “the normal pension age” there were substituted “the age of 60.”
(c)in paragraph (3)(a) for “the age of 60” substitute “the normal pension age”,
(d)in paragraph (4)—
(i)in sub-paragraphs (a) and (b) for “the age of 60” substitute “the normal pension age” and
(ii)for sub-paragraph (c) substitute—
“(c)is incapacitated, became so before attaining the normal pension age, and
(i)immediately before he became incapacitated—
(aa)was in pensionable employment, or
(bb)was taking a period of unpaid sick leave, maternity, paternity or adoptive leave (taken with the consent of the person’s employer) or a career break which, in each case, followed on immediately after a period of pensionable employment, or
(cc)was paying additional contributions under old regulation C9 or regulation C10, or
(ii)made an application for payment under regulation E33(2) such that it was received by the Secretary of State before 6th January 2007, or
(iii)(where neither paragraph (i) nor (ii) applies) his ability to carry out any work is impaired by more than 90% and is likely permanently to be so.”
(e)in paragraph (5)—
(i)for sub-paragraph (a) substitute—
“(a)has attained the age—
(i)of 50, if he is not a post-5th April 2006 entrant and attained that age before 6th April 2010, or
(ii)of 55 in any other case,”,
(ii)in sub-paragraph (b) for “the age of 60” substitute “the normal pension age”,
(f)in paragraph (5A)(b) for “the age of 60” substitute “the normal pension age”,
(g)in paragraph (5B) for “Those conditions are” substitute “The conditions in this paragraph are”,
(h)in paragraph (5B)(b) for “(otherwise than by virtue of regulation B7)” substitute “(except where the person was entitled to be paid a teacher’s pension and, after becoming entitled to a teacher’s pension, re-entered pensionable employment)”.
29. For regulations E5 and E6 substitute—
E4A.—(1) In these Regulations “phased retirement benefits” means retirement benefits to which a person may be eligible under this regulation.
(2) A person in pensionable employment who is qualified for retirement benefits is eligible to receive a part of his retirement benefits before he becomes entitled to payment of them if—
(a)he has attained the age of 55, and
(b)his employer at the time of an election pursuant to paragraph (4) has certified that he will continue in pensionable employment such as to result in a reduction of contributable salary of at least 25%, as compared with the average annual rate of his contributable salary for the six months prior to the end of his previous employment, from the first day of pensionable employment at the reduced contributable salary.
(3) A person who is qualified for retirement benefits is also eligible to receive part of his retirement benefits before he becomes entitled to payment of them if—
(a)he has attained the age of 55,
(b)after attaining that age he ceases to be in pensionable employment,
(c)within six months of the last day of that employment has—
(i)secured further pensionable employment, or
(ii)secured further employment in a school, college or university otherwise than as a teacher, and
(d)his employer in the further employment has certified that there has been a reduction in his contributable salary of at least 25%, as compared with the average annual rate of his contributable salary for the six months prior to the end of his previous employment, from the first day of further employment at the reduced contributable salary.
(4) Eligibility to phased retirement benefits pursuant to this regulation is conditional upon—
(a)the person making a maximum of two elections for such benefits, and each election is accompanied by certification as prescribed in paragraph (2)(b) or (3)(d) and
(b)the election being made within three months of starting employment as referred to in paragraph (2)(b) or securing further employment as referred to in paragraph (3).
(5) Subject to paragraph (7) the election shall specify a percentage (“the election percentage”), not exceeding 75% by reference to which retirement benefits are to be calculated in accordance with paragraphs (8) to (10).
(6) Where in the 12 month period following the reduction of contributable salary, a person receives an increase in excess of the standard increase as defined in regulation E31(13)(d) in remuneration such as to give that person 75% or more of his salary prior to that reduction, then any election made pursuant to this regulation ceases to have effect.
(7) Where the person is a person with mixed service the election may specify that it only applies to the part of the person’s effective reckonable service which was before the start of the new employment after the relevant break of service or only applies to the part of the person’s effective service which was after the start of the new employment after the relevant break of service.
(8) Where the election is the first or only election the phased retirement benefits are calculated on the basis specified in regulation E5(2) and (where applicable) E6(2) but—
(a)the person’s average salary is calculated as if his average salary service ended immediately at the date of the change in pensionable employment, and
(b)the person’s effective reckonable service is the election percentage of his reckonable service up to the date of the change in pensionable employment.
(9) Where the election is the second election, phased retirement benefits are calculated on the basis specified in regulation E5(2) and (where applicable) E6(2) but—
(a)the person’s average salary is calculated in the manner specified in paragraph (8), and
(b)the person’s effective reckonable service is—
(i)the election percentage of the person’s reckonable service up to the date of the second change in pensionable employment, less
(ii)the amount of reckonable service calculated in accordance with paragraph (8)(b).
(10) Phased retirement benefits calculated in accordance with paragraph (8) or (9) are adjusted by multiplication by the appropriate factor, and (in the case of a retirement pension) the adjustment is effected in the same way as is specified in regulation E5(7).
(11) A person who has elected to pay additional contributions under regulation C3C and who has elected for phased retirement benefits, may elect also for payment in full of those additional benefits to which he is entitled under that regulation, multiplied by the appropriate factor in the same way as is specified in regulation E5A(6).
(12) In calculating the factor by which additional benefits referred to in paragraph (11) are to be multiplied and divided pursuant to regulation E5A(3) and (4)—
(a)RI is the retail prices index for the second month before the month in which the change in pensionable employment occurred, and
(b)the definition of X has effect as if for “the date on which the person became entitled to payment of retirement benefits” there were substituted “the date of the change in pensionable employment”.
(13) Where the employer referred to in paragraph (3)(d) is unable to certify as prescribed in that paragraph because the previous employer has not provided him with the necessary information, the Secretary of State may determine nevertheless whether the person shall be entitled to phased retirement benefits.
(14) In this regulation “change in pensionable employment”, where the person falls within paragraph (2), is the day before the date on which contributable salary is reduced, and where the person falls within paragraph (3) is the date of leaving previous pensionable employment.
E5.—(1) The annual rate of a person’s retirement pension is the rate specified in paragraph (2) together with the rate specified in regulation E5A where that regulation applies (but nothing in this regulation or regulation E5A shall prevent different parts of a person’s retirement pension being paid at different times if the person becomes entitled to the parts at different times).
(2) Subject to paragraphs (4) and (6) to (14) and regulations E6A to E10, the rate is —
(a)in the case of a pre-2007 entrant, 1/80th of the person’s average salary multiplied by his effective reckonable service,
(b)in the case of a 2007 or later entrant, 1/60th of the person’s average salary multiplied by his effective reckonable service, and
(c)in the case of a person with mixed service the aggregate of—
(i)1/80th of the person’s average salary multiplied by that part of his effective reckonable service which was before the post-break employment start, and
(ii)1/60th of the person’s average salary multiplied by that part of his effective reckonable service which was after the post-break employment start.
(3) For the purposes of paragraph (2) reckonable service is to be expressed in years and fractions of a year.
(4) If—
(a)the person is entitled to count a period as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid), and
(b)by reason of regulation E32(3) part of that period does not count in calculating his retirement lump sum,
the annual rate calculated in accordance with paragraph (2) is, in respect of each year comprised in that part, increased by 1/350th of his average salary.
(5) In paragraphs (6) to (10) “the basic rate” is the rate calculated in accordance with paragraphs (2) and (4) and, where appropriate, regulation E7 or E9 (but disregarding the effect of regulation E10).
(6) Subject to paragraphs (7) to (10), where—
(a)a person who has become entitled to payment of retirement benefits by virtue of regulation E4(5) has ceased to be in pensionable employment or excluded employment on or after 1st September 1997, or
(b)a person has become entitled to payment of retirement benefits by virtue of regulation E4(5A),
the basic rate is adjusted as specified in paragraph (7).
(7) The adjustments are—
(a)in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60,
(b)in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65,
(c)in the case of a person with mixed service who has not attained the age of 60, multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(i) by the appropriate factor for a person with a normal pension age of 60 and multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(ii) by the appropriate factor for a person with a normal pension age of 65, and
(d)in the case of a person with mixed service who has attained the age of 60, multiplication of that part of the annual rate of such pension as is mentioned in paragraph (2)(c)(ii) by the appropriate factor for a person with a normal pension age of 65.
(8) Paragraph (6) does not apply where, in the case of a person who falls within paragraph (4)(a), notice to terminate the person’s employment was given, or his resignation tendered, on or before 22nd October 1996.
(9) Where the person falls within paragraph (6)(a) and—
(a)the person has a guaranteed minimum in relation to employment up to 6th April 1997, and
(b)A exceeds B, where
A is the annual equivalent of his guaranteed minimum pension together with that of any equivalent pension benefits, and
B is the basic rate, where applicable, adjusted in accordance with paragraphs (6) and (7)
the annual rate of his retirement pension is A.
(10) Where a 2007 or later entrant or a person with mixed service has effective reckonable service which has occurred after he attained the age of 65 the basic rate is adjusted as specified in paragraph (11).
(11) The adjustments are—
(a)in the case of a 2007 or later entrant, multiplication of the annual rate of that part of his retirement pension which relates to effective reckonable service before the person attained the age of 65, by the relevant enhancement factor, and
(b)in the case of a person with mixed service, multiplication of that part of his retirement pension which relates to the part of his effective reckonable service before the person attained the age of 65 but after the post-break employment start, by the relevant enhancement factor.
(12) In paragraph (11) “the relevant enhancement factor” means a factor (related to the length of the period which has elapsed between the person’s 65th birthday and the date (after his 65th birthday) on which he became entitled to retirement benefits) determined from time to time for the purpose of this regulation by the Secretary of State after taking advice from the Government Actuary.
(13) If a contributions equivalent premium has been paid in respect of the person and has not been refunded (and his entitlement to a guaranteed minimum pension is therefore extinguished) the annual rate of his retirement pension is reduced by the annual equivalent of the guaranteed minimum pension to which he would otherwise have been entitled.
(14) Where a person has received phased retirement benefits, the person’s effective reckonable service is reduced by the amount of reckonable service (determined under regulation E4A(8) and, where, applicable, regulation E4A(9)) taken into account in calculating phased retirement benefits.
E5A.—(1) This regulation applies where one or more elections under regulation C3C have been accepted by the Secretary of State and have not ceased to have effect.
(2) Where this regulation applies the annual rate of a person’s retirement pension is (in addition to the annual rate specified in regulation E5(2)) the aggregate of the annual rates with which the person has been credited pursuant to each election and Schedule 2A, multiplied by the factor specified in paragraph (3) and divided by the factor (if it is greater than one) specified in paragraph (4).
(3) The factor in this paragraph is RI/RE where—
RI is the retail prices index for second month before the month in which the person becomes entitled to the part of his retirement pension referred to in this regulation, and
RE is the retail prices index for the month which includes the start date, as defined in paragraph 1 of Schedule 2A, for the election in question.
(4) The factor in this paragraph is X/Y where—
X is the amount which would have been the annual rate of the person’s retirement pension calculated in accordance with the combined effect of paragraphs (2) and (3) (as if in paragraph (2) the words “and divided by the factor (if it is greater than one) specified in paragraph (4)” had been omitted) and any increases effected by the 1971 Act up to the date on which the person became entitled to payment of retirement benefits, and
Y is the amount which would have been the annual rate of the person’s retirement pension calculated in accordance with paragraphs (2) and (3) if in paragraph (2) the words “and divided by the factor (if it is greater than one) specified in paragraph (4)” had been omitted and if the 1971 Act did not apply.
(5) Where regulation E5(6) applies, the annual rate of the person’s retirement pension calculated in accordance with paragraphs (2) and (3) shall be adjusted as specified in paragraph (6).
(6) The adjustments are—
(a)in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60,
(b)in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65, and
(c)in the case of a person with mixed service who falls within regulation E4(2B) who has not attained the age of 60, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60, and
(d)in the case of a person with mixed service other than a person such as is referred to in regulation E4(2B), multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65.
(7) In this regulation “the 1971 Act” means the Pensions (Increase) Act 1971(8).
E6.—(1) This regulation applies to a pre-2007 entrant and a person with mixed service.
(2) Subject to paragraphs (4), (5), (7) and (8) and regulations E7 and E8, the amount of retirement lump sum for a person to whom this regulation applies is Ax(B+C) where—
A is 3/80ths of the person’s average salary,
B is, in the case of a pre-2007 entrant, his effective reckonable service or, in the case of a person with a mixed service, that part of his effective reckonable service which was before the post-break employment start (except, in either case, any falling within C), and
C is any period which he is entitled to count as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid).
(3) For the purposes of paragraph (2), reckonable service is to be expressed in years and fractions of a year.
(4) A person’s retirement lump sum cannot exceed his permitted maximum.
(5) Subject to paragraph (6), where—
(a)a person to whom this regulation applies who has become entitled to payment of retirement benefits by virtue of regulation E4(5) before attaining the age of 60 has ceased to be in pensionable or excluded employment on or after 1st September 1997, or
(b)a person to whom this regulation applies has become entitled to payment of retirement benefits by virtue of regulation E4(5A) before attaining the age of 60,
the amount of the person’s retirement lump sum shall be the amount calculated in accordance with paragraph (2) multiplied by the appropriate factor.
(6) Paragraph (5) shall not apply where, in the case of a person who falls within paragraph (5)(a), notice to terminate the person’s employment was given or his resignation tendered on or before 22nd October 1996.
(7) A person who has attained the age of 75 is not entitled to a lump sum.
(8) Where a person has received phased retirement benefits the person’s effective reckonable service shall be calculated in accordance with regulation E5(14).
(9) Where an election to receive phased retirement benefits ceased to have effect by virtue of regulation E4A(6), then the amount of a person’s retirement lump sum on entitlement to retirement benefits is reduced by any lump sum under regulation E6 received pursuant to that election.
E6A.—(1) Subject to paragraph (4) a person may, by an election made with the application for payment under regulation E33(2), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his retirement pension.
(2) The amount of such lump sum must be a multiple of £12 and cannot exceed—
(a)in the case of a 2007 or later entrant, his permitted maximum, and
(b)in the case of a pre-2007 entrant or a person with mixed service, his permitted maximum less his retirement lump sum.
(3) Where a lump sum is paid under this regulation, the annual rate of the person’s retirement pension is reduced by £1 for every £12 of lump sum.
(4) This regulation does not apply to a person who is a pre-2007 entrant and falls within regulation EA1(3)(a).
(5) Paragraph (6) applies where—
(a)a person has elected to receive phased retirement benefits and has also elected pursuant to this regulation (“the first election”) to receive a further lump sum in place of part of the retirement pension comprised in the phased retirement benefits, but
(b)the election to receive phased retirement benefits ceased to have effect by virtue of regulation E4A(6).
(6) Where this paragraph applies the person is treated, on becoming entitled to payment of retirement benefits, as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum paid to the person pursuant to the first election.
(7) Paragraph (8) applies where a person to whom regulation E15 applies elected pursuant to this regulation (“the first election”) to receive a further lump sum in place of part of the first pension.
(8) Where this paragraph applies the person is treated, on becoming entitled to payment of retirement benefits pursuant to regulation E15(2) or (4) as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum paid to the person pursuant to the first election.
(9) In this regulation—
(a)“the appropriate amount” is the amount (rounded to the nearest £12) such that the proportion which the rate of retirement pension forgone bears to the rate of retirement pension to which the person is entitled is the same as the proportion which the rate of retirement pension forgone pursuant to the first election bore to—
(i)the rate of retirement pension to which the person was eligible pursuant to the election made under regulation E4A, where the person falls within paragraph (5), or
(ii)the rate of the first pension, where the person falls within paragraph (7),
(b)“the first pension” has the same meaning as in regulation E15(1)(a).
E6B.—(1) Where a person would be entitled to a retirement lump sum but for regulation E6(7), the annual rate of that person’s retirement pension shall be increased by an amount which represents the value of the retirement lump sum to which the person would have been entitled, payable from the date when that person’s application made under regulation E33 is received by the Secretary of State.
(2) The increase in the annual rate of the person’s retirement pension shall be determined by the Secretary of State after taking advice from the Government Actuary.”
30. In regulation E7(6) for “E5(3) or E6(3)” substitute “E5(6) and (7) or E6(5)”.
31.—(1) At the end of the heading to regulation E8 insert “where application is received before 6th January 2007”.
(2) In regulation E8—
(a)in paragraph (1) after “in pensionable employment” insert “and whose application for payment under regulation E33(2) is received by the Secretary of State before 6th January 2007”,
(b)in paragraph (3)(b) for “an election under regulation B7” insert “an election under regulation B7 as it had effect immediately before 1st January 2007 or an election under regulation B6(1A)”,
(c)in paragraph (8) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
(3) After regulation E8 insert the following—
E8A.—(1) This regulation applies to a person who has become entitled to payment of retirement benefits by reason of his having become incapacitated and where, immediately before he became incapacitated—
(a)he was in pensionable employment, or
(b)he was taking a period of unpaid sick leave, maternity, paternity or adoptive leave (taken with the consent of the person’s employer) or a career break which, in each case, followed on immediately after a period of pensionable employment, or
(c)he was paying additional contributions under old regulation C9 or regulation C10,
and whose application for payment under regulation E33(2) is received by the Secretary of State on or after 6th January 2007 and who satisfies the condition in paragraph (2)(a) and either the condition in paragraph (2)(b) or the condition in paragraph (2)(c).
(2) The conditions are—
(a)that (in addition to being incapacitated) the person’s ability to carry out any work is impaired by more than 90% and is likely permanently to be so, and
(b)where the person falls within paragraph (1)(a) or (1)(c), that the application for payment required by regulation E33(2) is made within 6 months after the end of the pensionable employment or within 6 months after the last payment of additional contributions under old regulation C9 or regulation C10 as the case may be, or
(c)where the person falls within paragraph (1)(b) that the application for payment required by regulation E33(2) is made—
(i)where the person was on unpaid sick leave, before the period of sick leave ends, and
(ii)in any other case before the date on which, under the arrangements made with the person’s employer, the leave or career break is due to end.
(3) The person becomes entitled (subject to regulation E32(2) (limitation of effective reckonable service to 45 years)) to payment of a total incapacity pension and (where applicable) a total incapacity lump sum calculated in accordance with regulation E5 or (where applicable) E6 but with the amount of effective reckonable service calculated in accordance with paragraph (4).
(4) The effective reckonable service is (X-Y)/2 where—
X is the amount which would have been the person’s reckonable service if the person had ceased to be in pensionable employment on his attaining the normal pension age, and
Y is the amount specified in paragraph (5).
(5) The amount specified in this paragraph is—
(a)the actual amount of the person’s effective reckonable service where—
(i)immediately before the person became incapacitated he was in excluded employment,
(ii)immediately before the person became incapacitated he was paying additional contributions under old regulation C9 or regulation C10, or
(iii)immediately before the person became incapacitated he was in pensionable employment and entitlement to payment of retirement benefits took effect under regulation E4(8) at the same time as he ceased to be in pensionable employment, or
(b)the amount which would have been the person’s effective reckonable service if he had remained in pensionable employment until the date on which entitlement to retirement benefits took effect under regulation E4(8) in any other case.
(6) Where the person is a person with mixed service, the effective reckonable service specified in paragraph (4) shall be treated as having occurred after the relevant break of service.
(7) The entitlement to payment of a total incapacity pension and (where applicable) lump sum takes effect on the same day as the entitlement to payment of the retirement pension and lump sum.”.
32. In regulation E9—
(a)in paragraph (4), in the definition of “C” for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)in paragraph (6)(b) for “E5(3) or E6(3)” substitute “E5(6) and (7) or E6(5)”.
33. Omit regulation E11.
34.—(1) At the end of the heading to regulation E13 insert “where application for payment was received before 6th January 2007”.
(2) In regulation E13(1) after “regulation E4(9) of the 1988 Regulations” insert “and where the person’s application for payment under regulation E33(2) was received by the Secretary of State before 6th January 2007”.
(3) After regulation E13 insert—
E13A.—(1) This regulation applies where a person is entitled to a payment of a retirement pension by virtue of regulation E4(4) and the person’s application for payment was received by the Secretary of State on or after 6th January 2007.
(2) Paragraph (4) has effect where the person was entitled to payment of a total incapacity pension under regulation E8A but the person subsequently ceases to satisfy the condition contained in regulation E8A(2)(a).
(3) For the purposes of paragraph (2) a person is treated as having ceased to satisfy the condition in regulation E8A(2)(a) if he takes up any employment unless—
(a)the employment which he takes up is not employment in a capacity described in Schedule 2 or employment as a teacher in an accepted school or with an accepted function provider,
(b)he provides the Secretary of State with a certificate from a registered medical practitioner that in the opinion of the medical practitioner he still meets the condition, and
(c)the Secretary of State determines that he still meets the condition.
(4) Subject to paragraph (5), on the date on which the person ceases to satisfy the condition contained in regulation E8A(2)(a), the total incapacity pension referred to in regulation E8A ceases to be payable.
(5) Where however the person satisfies the requirements of sub-paragraphs (a), (b) and (c) of paragraph (3) but satisfies the requirements of sub-paragraphs (b) and (c) of that paragraph after he has taken up the employment the total incapacity pension is payable again as from the date on which the person took up the employment.
(6) Paragraph (8) has effect where the person subsequently ceases to be incapacitated.
(7) For the purposes of paragraph (6) a person is treated as having ceased to be incapacitated if it takes up employment in a capacity described in Schedule 2 or as a teacher in an accepted school or with an accepted function provider.
(8) On the date on which the person ceases to be incapacitated the person’s retirement pension ceases to be payable, but any equivalent pension benefits continue to be payable.
(9) Where paragraph (8) had effect, the retirement pension becomes payable again (subject to paragraph (10) and to regulation E33(2) (application for payment))—
(a)from the date on which the person attains his normal pension age, or
(b)if earlier, from the start of any renewed incapacity.
(10) Paragraph (9) does not apply if the person has been in pensionable employment at any time after he first became entitled to payment of the retirement pension.
(11) If the pension becomes payable again under paragraph (9)(a) it is to be treated for purposes of regulation E14 as one to the payment of which the person has become entitled by virtue of regulation E4(2).”.
35. In regulation E14—
(a)for paragraph (1) substitute—
“(1) Subject to paragraph (1B), this regulation applies while a person who has become entitled to payment of a teacher’s pension is employed—
(a)in pensionable employment, comparable British service or employment which would have been pensionable but for—
(i)his having made an election under regulation B5 (election for employment not to be pensionable), or
(ii)his having attained the age of 75,
(b)in full-time employment which is not pensionable employment by reason of the fact that the employment commenced on or after 1st April 1997 and the person falls within regulation B1(5A) but has not made an election under regulation B6(1A), or
(c)in part-time employment in a capacity described in paragraphs 1 to 9 of Schedule 2 which is not pensionable employment.”,
(b)omit paragraph (1A),
(c)in paragraph (3)(a) for “(B+C-D)” substitute “B+C”
(d)in paragraph (3)(b)—
(i)for the definition of “B” substitute the following—
“B is the salary of reference determined in accordance with paragraph (3A), (3B) or (3C) ”,
(ii)in the definition of “C” for “the pension” substitute—
“(i)where the salary of reference is determined in accordance with paragraph (3A), the pension, and
(ii)where the salary of reference is determined in accordance with paragraph (3B), the last day of employment at that salary.”,
(iii)omit the definition of “D”,
(e)after paragraph (3) insert the following—
“(3A) The salary of reference for a person whose most recent entitlement to payment of a teacher’s pension arose before 1st January 2007 is, or where his previous employment was part-time, is the full-time equivalent of, the highest annual rate of contributable salary that was payable to the person during the 3 years ending immediately before he became entitled to payment of the pension, or, if applicable, the highest annual rate of contributable salary that was payable to him during the 3 years ending immediately before he ceased to be employed in any pensionable employment entered into by him after he became entitled to payment of the pension, whichever is greater.
(3B) The salary of reference for a person whose most recent entitlement to payment of a retirement pension arises on or after 1st January 2009 is —
(a)where the person’s average salary was the amount specified in regulation E31(2) (a), the highest annual rate of contributable salary that was payable to him during the 365 days ending immediately before he became entitled to payment of the pension, or, if applicable, the highest rate of contributable salary that was payable to him during the 365 days ending immediately before he ceased to be employed in any pensionable employment entered into by him after he became entitled to payment of the pension, whichever is the greater, and
(b)where the person’s average salary was the amount specified in regulation E31(2)(b) or (2A), the highest annual rate of contributable salary that was payable to him during his average salary service or, if applicable, the highest rate of contributable salary that was payable to him during any period of pensionable employment entered into by him after he became entitled to payment of pension, whichever is the greater
or, in either case, where the previous employment was part-time, the full-time equivalent of such salary.
(3C) The salary of reference for a person whose most recent entitlement to payment of a retirement pension arises on or after 1st January 2007 but before 1st January 2009 is the salary referred to in paragraph (3A) or (3B) whichever is the higher.”.
36. In regulation E15—
(a)for paragraph (1) substitute—
“(1) This regulation applies to—
(a)a person who became entitled to payment of a teacher’s pension (“the first pension”) and was subsequently in pensionable employment which commenced before 1st April 1997 (“the further employment”), or
(b)a person (not falling within sub-paragraph (a)) who became entitled to payment of a teacher’s pension by virtue of regulation E4(3) or (4) or regulation E4(6) of the 1988 Regulations (incapacity) (“the first pension”) and was subsequently in pensionable employment (“the further employment”)
and (in either case) has ceased to be in the further employment.”.
(b)in paragraph (2) after “E8 (enhancement of retirement benefits in case of incapacity)” insert “or if a total incapacity pension has not been paid under regulation E8A”,
(c)in paragraph (4) after “regulation E8” insert “or if a total incapacity pension has been paid under regulation E8A”,
(d)in paragraph (9)—
(i)in sub-paragraph (a) for “E5(3)” substitute “E5(6)”,
(ii)in sub-paragraph (b) for “E6(3)” substitute “E6(5)”.
37.—(1) For the heading to regulation E15A substitute “Retirement benefits on cessation of further employment where regulation E15 does not apply”
(2) In regulation E15A—
(a)for paragraph (1) substitute—
“(1) This regulation applies to a person, other than a person to whom regulation E15 applies, who—
(a)was entitled to be paid a teacher’s pension,
(b)has, after becoming entitled to a teacher’s pension, re-entered pensionable employment (“the further employment”), and
(c)ceases to be in the further employment.”,
(b)in paragraph (7) for “further employment which is pensionable by virtue of regulation B7” substitute “further employment such as is mentioned in paragraph (1)(b)”.
38. In regulation E20—
(a)in paragraph (1)(b) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)in paragraph (2)—
(i)omit “or” at the end of sub-paragraph (b)(i),
(ii)for sub-paragraph (b)(ii) substitute—
“(ii)in the case of a death occurring on or after 1st April 1998 but before 1st January 2007, twice his average salary, or
(iii)in the case of a death occurring on or after 1st January 2007, three times his average salary,”
(c)in paragraph (6)(b) after “surviving civil partner” insert “, surviving nominated partner”,
(d)for paragraph (7)(a) substitute—
“(a)if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,”,
(e)in paragraph (7)(c) for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner”.
39. In regulation E21—
(a)in paragraphs (2),(3) and (3A) for “E5(3)” substitute “E5(6),
(b)in paragraph (4)—
(i)in sub-paragraph (a) for “E5(3)” substitute “E5(6) and (7)”,
(ii)in sub-paragraph (b) for “E6(3)” substitute “E6(5)”,
(c)for paragraph (6)(a) substitute—
“(a)if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,”,
(d)in paragraph (6)(c) for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner”.
40. In regulation E22—
(a)in paragraph (1) after “surviving civil partners,” insert “surviving nominated partners”,
(b)for paragraph (1A) substitute—
“(1A) Where a person was entitled to be paid a teacher’s pension and, after becoming entitled to a teacher’s pension, re-entered pensionable employment (“the further employment”), in calculating the benefits payable under regulations E24 to E30, the further employment shall not be taken into account but those regulations shall apply separately to the further employment as they apply to any other pensionable employment.”,
(c)in paragraph (2)(a) and (b) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
41. After regulation E22 insert—
E22A.—(1) A person (A) may nominate another person (B) to receive a pension by giving to the Secretary of State a declaration signed by both A and B that the condition in paragraph (2) has been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.
(2) The condition is that—
(a)A is able to marry, or form a civil partnership with, B,
(b)A and B are living together as if they were husband and wife or as if they were civil partners,
(c)neither A nor B is living with a third person as if they were husband and wife or as if they were civil partners, and
(d)either B is financially dependent on A or A and B are financially interdependent.
(3) But a nomination has no effect if the condition in paragraph (2) has not been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.
(4) A nomination ceases to have effect if—
(a)either A or B gives written notice of revocation to the Secretary of State,
(b)A makes a subsequent nomination under this regulation,
(c)either A or B marries, forms a civil partnership or lives with a third person as if they were husband and wife or as if they were civil partners, or
(d)B dies.
(5) B is A’s surviving nominated partner if—
(a)the nomination has effect at the date of A’s death, and
(b)B satisfies the Secretary of State that the condition in paragraph (2) was satisfied for a continuous period of at least 2 years immediately prior to A’s death.
(6) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.”.
42.—(1) For the heading to regulation E23 substitute “Nomination of other adult beneficiary”.
(2) In regulation E23—
(a)in paragraph (2) after “a previous nomination under this regulation” insert “or regulation E22A”,
(b)in paragraph (4)(b) after “appointor” insert “makes a nomination under regulation E22A,”.
43. In regulation E24—
(a)in paragraph (1)(b) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)for paragraph (2)(a) substitute—
“(a)subject to paragraph (4), to the deceased’s surviving spouse, surviving civil partner, surviving nominated partner or, where the conditions in regulation E26(6) are satisfied, his nominated beneficiary, and”,
(c)omit paragraph (4)(b),
(d)in paragraph (4)(c) after “surviving civil partner,” insert “surviving nominated partner,”.
44. In regulation E25—
(a)in paragraph (2) for “surviving spouse or surviving civil partner” (in both cases) substitute “surviving spouse, surviving civil partner or surviving nominated partner”,
(b)in paragraph (3) and the Table for “spouse, civil partner” (in both cases) substitute “surviving spouse, surviving civil partner, surviving nominated partner”.
45. In regulation E26—
(a)in paragraph (2) for “was in pensionable employment by virtue of an election under regulation B7” substitute “was entitled to be paid a teacher’s pension and, after becoming entitled to a teacher’s pension, re-entered pensionable employment”,
(b)in paragraph (4) after “his surviving civil partner” insert “, his surviving nominated partner”,
(c)in paragraph (6)(b) after “the deceased” insert “and was not living with someone as if they were husband and wife or as if they were civil partners”,
(d)after paragraph (8) insert—
“(9) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.”.
46. In regulation E27—
(a)in paragraph (1)(b) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)in paragraph (1)(c) for “regulation C4 or under Schedule 5” substitute “Schedule 4 or 5”,
(c)in paragraph (2)(a) for “paragraph (1)(a), (b) and (d)” substitute “paragraph (1)(a) and (b)”,
(d)in paragraph (2)(b) for “regulation C4” substitute “Schedule 4”,
(e)in paragraph (2)(c) omit “and”,
(f)in paragraph (2)(d)—
(i)for “transfer value offered in respect of him” substitute “transfer value (other than one mentioned in sub-paragraph (e)) offered in respect of her”, and
(ii)for “acceptance of the transfer value.” substitute “acceptance of the transfer value, and”,
(g)after paragraph (2)(d) insert—
“(e)where a transfer value has been accepted in respect of comparable British service—
(i)any period which consists of, or is attributable to, service after 5th April 1988, and
(ii)any other period which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to the deceased’s widower.”,
(h)in paragraph (2A)(b) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(i)in paragraph (2A)(c) for “regulation C4 or C5” substitute “Schedule 4 or 5”,
(j)for paragraph (2A)(e) substitute—
“(e)where a transfer value has been accepted in respect of comparable British service—
(i)any period which consists of, or is attributable to, service after 5th April 1988, and
(ii)any other period which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to the deceased’s surviving civil partner, and”,
(k)after paragraph (2A) insert—
“(2B) Where the deceased is survived by a surviving nominated partner, the deceased’s relevant service comprises, subject to paragraph (3)—
(a)any period of pensionable employment after 31st December 2006,
(b)any period beginning after 31st December 2006 in respect of which additional contributions have been paid under old regulation C9 or regulation C10,
(c)any period of reckonable service in respect of which family benefit contributions have been paid under Part IIB of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIB,
(d)where a transfer value has been accepted in respect of comparable British service, any period which consists of, or is attributable to, service which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to a person (other than the deceased’s surviving spouse or surviving civil partner) with whom at the date of his death the deceased was living as if they were husband and wife or as if they were civil partners, and
(e)where the deceased entered pensionable employment after 31st December 2006 and a transfer value (other than one mentioned in sub-paragraph (d)) has been accepted, any period counting as reckonable service by virtue of the acceptance of the transfer value.”,
(l)after paragraph (3) insert—
“(4) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.”.
47.—(1) For the heading to regulation E28 substitute “Amount of surviving spouse’s, surviving civil partner’s, surviving nominated partner’s or nominated beneficiary’s long-term pension”.
(2) In regulation E28—
(a)in paragraph (1) after “surviving civil partner” insert “, surviving nominated partner”,
(b)in paragraph (2A) after “surviving civil partner” insert “, surviving nominated partner”,
(c)in paragraph (6)(b) for “regulation C4” substitute “Schedule 4”,
(d)in paragraph (6) (c) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(e)after paragraph (7A) insert—
“(7B) If the pension is payable to a surviving nominated partner, the deceased’s family benefit service, subject to paragraphs (3) and (8) to (10), comprises the relevant service described in regulation E27(2B).”,
(f)in paragraph (8)(b) for “regulation C9 or 10” substitute “old regulation C9 or regulation C10”,
(g)in paragraph (9) for “paragraphs (3) to (5), (7) and (7A)” (in both cases) substitute “paragraphs (3) to (5) and (7) to (7B)”.
48. In regulation E29—
(a)in paragraph (1)(a) after “surviving civil partner” insert “, surviving nominated partner”,
(b)for paragraph (1A) substitute—
“(1A) Where an adult pension is payable to the surviving civil partner of a man, to the surviving civil partner of a woman whose nomination under regulation E23 ceased to have effect when she formed a civil partnership or to a surviving nominated partner, the annual rate of the children’s pension is the appropriate fraction of the deceased’s average salary multiplied by the sum of the notional family benefit service and the additional family benefit period.”,
(c)in paragraph (8)—
(i)after “family benefit contributions have been paid” insert “(where the adult pension is paid to a surviving civil partner)”, and
(ii)after “made under Part IIA” insert “or (where the adult pension is paid to a surviving nominated partner) under Part IIB of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIB”.
49. After regulation E29 insert—
E29A.—(1) Where an election (other than one which has ceased to have effect) was made under paragraph 5(b) or 12(b) of Schedule 2A by, or in respect of, the deceased, the annual rate of the pension referred to in regulation E25(1), E28(1), E29(1) and E29(1A) must be increased by half the additional pension.
(2) The additional pension is the annual rate with which the deceased had been credited, increased as specified in regulation E5A(3).”.
50. In regulation E30—
(a)in paragraph (1) after “surviving civil partner” insert “, surviving nominated partner”,
(b)in paragraph (3A) after “does not apply” insert “to any pension payable following the death of a person who was in pensionable employment after 31st December 2006 or who was paying or had paid additional contributions under old regulation C9 or regulation C10 in respect of a period after that date or”.
51. In regulation E31—
(a)for paragraphs (1) and (2) substitute—
“(1) A person’s average salary is either that specified in paragraph (2) or calculated in accordance with regulation E31A.
(2) Where—
(a)the person’s full salary in the last 365 days of his average salary service is greater than the salary determined under regulation E31A(3), or
(b)the person has an average salary service of 365 days or less,
the person’s average salary is (subject to paragraph (11)) his full salary in the last 365 days of his average salary service.
(2A) Where the salary determined under regulation E31A(3) is greater than the person’s full salary in the last 365 days of his average salary service the person’s average salary is that specified in regulation E31A.”.
(b)omit paragraph (4),
(c)for paragraph (5) substitute the following—
“(5) For the purposes of paragraphs (2), (2A) and (11) periods when the person was not in pensionable employment shall be disregarded and accordingly the periods of 365 days and 1095 days referred to in paragraphs (2), (2A) and (11) may be discontinuous.”,
(d)in paragraph (6) omit “(2)”,
(e)in paragraph (7)(b) for “regulation C9 or, as the case may be, C10” substitute “old regulation C9 or, as the case may be, regulation C10”,
(f)after paragraph (10) insert the following—
“(10A) Paragraph (11) applies where (disregarding the effect of that paragraph) a person’s average salary would be that specified in paragraph (2),”
(g)in paragraph (11) for “where at any time during the material part of a person’s average salary service a person has received” substitute “where at any time during the last 1095 days of his average salary service a person to whom this paragraph applies has received”,
(h)in paragraph (12)(b)(ii) for “E28 (amount of surviving spouse’s, surviving civil partner’s or nominated beneficiary’s long-term pension)” substitute “E28 (amount of surviving spouse’s, surviving civil partner’s, surviving nominated partner’s or nominated beneficiary’s long-term pension)”,
(i)in paragraph (14)(a) after “lump sum payment” insert “(where regulation E6 applies to the person)”,
(j)after paragraph (14) insert—
“(14A) For the purposes of this regulation, in computing periods consisting of numbers of days, no account shall be taken of a leap year day (29th February) except as provided by paragraph (14B).
(14B) Where however a person’s average salary service ends in a leap year on or after the leap year day that leap year day shall be included in the period of 365 days referred to in paragraph (2).”.
52. After regulation E31 insert—
E31A.—(1) This regulation has effect for the purpose of determining a person’s salary where regulation E31(2A) applies (“the alternative average salary”).
(2) In this regulation “salary period” is each period in which the person’s salary rate is unchanged.
(3) The average of the person’s full salary for the best consecutive 1095 days of average salary service (increased as specified in paragraph (4)) during the period of 10 years ending on the last day of the person’s average salary service shall first be determined.
(4) For the purposes of paragraph (3) the person’s full salary for each salary period is increased by the amount (if any) by which, immediately before the end of the person’s average salary service, it would have increased if it had been the annual rate of an official pension within the meaning of section 5(1) of the Pensions Increase Act 1971 beginning, and first qualifying for increases under that Act, on the same day as the salary period ended.
(5) The alternative average salary is the average of the actual full salary for the 1095 days which, resulting from and in accordance with the determination under paragraph (3), are the best consecutive 1095 days of average salary service, multiplied by A/B.
(6) “A” in paragraph (5) is the annual rate of retirement pension to which the person would have been entitled by virtue of these Regulations if—
(a)in calculating the person’s full salary for each salary period the person’s full salary for that period had in fact been increased as specified in paragraph (4), and
(b)the Pensions (Increase) Act 1971 did not apply.
(7) “B” in paragraph (5) is the annual rate of retirement pension to which the person would have been entitled by virtue of the combined effect of these Regulations and the increase effected by the Pensions (Increase) Act 1971 up to the last day of the person’s average salary service, if the person’s average salary had been the amount determined under paragraph (5) without the multiplication by A/B.
(8) For the purposes of paragraph (3) periods when the person was not in pensionable employment shall be disregarded, except in relation to the period of 10 years, and accordingly the 1095 days referred to in paragraphs (3) and (5) may be discontinuous.
(9) In computing the period of 1095 days referred to in paragraphs (3) and (5) no account shall be taken of a leap year day (29th February).
(10) Where however a person’s average salary service ends in a year on or after the leap year day that leap year day shall be included in the period of 1095 days referred to in paragraphs (3) and (5).
(11) In this regulation “full salary” has the same meaning as in regulation E31.”.
53. In regulation E32—
(a)omit paragraph (2)(b),
(b)in paragraph (4) for “the age of 60” substitute “the normal pension age”.
54. In regulation E33—
(a)after paragraph (2) insert—
“(2A) Where the application for payment is made on the basis that the person is entitled to retirement benefits under regulation E4(3) or (4)(incapacity), the application shall—
(a)where the person falls within regulation E4(4)(c)(i)(aa) or (bb), be signed by, or on behalf of, the person’s employer, and
(b)shall be accompanied by all medical evidence necessary to determine whether the person falls within regulation E4(3) or (4) and, where applicable, that the person’s ability to carry out any work is impaired by more than 90% and is likely permanently to be so.”.
(b)In paragraph (3) after “any relevant information” insert “(including medical evidence such as is mentioned in paragraph (2A))”.
55. In regulation E34—
(a)in paragraph (1) after “pension payable under” insert “regulation E4A or”,
(b)after paragraph (4) insert—
“(4A) Where, pursuant to regulation E13A(5) a total incapacity pension is payable again as from the date on which the person took up employment the person shall, for the purposes of this regulation, be treated as having become entitled to the total incapacity pension again on the date on which the Secretary of State determines that the person still meets the condition specified in regulation E8A(2)(a).”
56. In regulation E35(2) omit “An allocation under regulation E11 is not an assignment, and”.
57. In regulation F1(4A)(b)(ii) after “his 60th birthday” insert “in the case of a pre-2007 entrant or his 65th birthday in any other case”.
58. In regulation F4(7)(b) after “his 60th birthday” insert “in the case of a pre-2007 entrant or his 65th birthday in any other case”.
59. In regulation G2—
(a)in paragraph (2)(a) for “regulations C3(1) and (3), C4, C5, C6, C8, C11 and paragraph 36 of Schedule 10” substitute “regulations C3(1) and (3), C3C, C8 and C11, Schedules 4 and 5 and paragraph 36 of Schedule 10”,
(b)in paragraph (2)(c) and (3)(c) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
60. For regulation G5 substitute—
G5.—(1) In this regulation—
(a)“relevant period” is to be construed in accordance with regulation G4(3),
(b)the “net contribution rate” for any relevant period is the aggregate of the percentage specified for that period under regulation G4(3) and any percentage specified for that period under regulation G4(7) less any percentage specified for that period under regulation G4(8).
(2) The employer of a person in pensionable employment, other than a services education officer, is, during every relevant period, to pay contributions of the required percentage of the person’s contributable salary for the time being.
(3) The required percentage for the relevant period starting on 1st January 2007 is 14.1%.
(4) The required percentage for subsequent relevant periods shall be determined in accordance with paragraphs (5) to (9).
(5) For the purposes of this regulation the element appropriate for cost sharing in relation to any relevant period is that part of the difference between the net contribution rate for that period and the net contribution rate for the previous period determined by the Secretary of State in relation to each relevant period and in making such a determination the Secretary of State shall secure that—
(a)changes in assumptions about life expectancy and differences between assumptions made in the previous review under regulation G4 about the values of any items and the actual values of those items are included in the element appropriate for cost sharing, and
(b)any reduction in the net contribution rate arising from the fact that the normal retirement age for —
(i)a 2007 or later entrant, or
(ii)a person with mixed service
is 65, is not included in the element appropriate for cost sharing.
(6) In relation to any relevant period the Secretary of State shall also calculate separately the part of the difference between the net contribution rate for that period and the net contribution rate for the previous period which is not appropriate for cost sharing (“the unshared element”) and the Secretary of State shall then—
(a)determine the part of the unshared element which is appropriate for the employer contribution cap, and
(b)calculate separately the part of the unshared element which is not appropriate for the employer contribution cap.
(7) Any determination made by the Secretary of State pursuant to paragraph (5) or (6) shall be made after consultation with such representatives of local education authorities and of teachers as appear to the Secretary of State to be appropriate and with the consent of the Treasury.
(8) In paragraphs (9) and (10)—
X is the element appropriate for cost sharing determined pursuant to paragraph (5),
Y is the part of the unshared element which is appropriate for the employer contribution cap, determined pursuant to paragraph (6)(a), and
Z is the part of the unshared element which is not appropriate for the employer contribution cap, calculated in accordance with paragraph (6)(b),
and X, Y and Z may be positive or negative depending on whether there is an increase or a decrease.
(9) In the formula in paragraph (10) A is the lesser of B and C+Y+1/2X where—
(a)B is—
(i)for the relevant period immediately after the one starting on 1st January 2007, 14, and
(ii)for each subsequent relevant period, the value which B had for the previous relevant period together with the value of Z which applied in determining the required percentage for the previous relevant period, and
(b)C is—
(i)for the relevant period immediately after the one starting on 1st January 2007, 14.1,
(ii)for the next relevant period, the amount which would have been the required percentage for the previous relevant period if it had been calculated as 14.1+Y+1/2X+Z, and
(iii)for each subsequent relevant period, the amount which would have been the required percentage for the previous relevant period if it had been calculated as D+Y+1/2X+Z, where D is the amount which would have been the required percentage for the relevant period before the previous relevant period calculated in accordance with this sub-paragraph.
(10) The required percentage for each relevant period is A+Z.
(11) Paragraph 9 of Schedule 15 has effect for the purpose of determining the required percentage for relevant periods before the relevant period starting on 1st January 2007.
(12) No contributions are to be paid in respect of any person to whom regulation E32(2) (a) (restriction of reckonable service to 45 years) has become applicable.”.
61. In regulation G8 —
(a)in paragraph (1) after “elected under” insert “old”,
(b)after paragraph (1) insert—
“(1A) Where an employer has elected under regulation C3C to pay additional contributions in respect of a person, payment to the Secretary of State of the lump sum referred to in paragraph 12 of Schedule 2A shall be made within the period referred to in paragraph 27(a) of that Schedule.”,
(c)in paragraph (9)(a) and (c) for “regulation B7(2)(c)” substitute “regulation B6(5)”.
62. In regulation H1(1)—
(a)for sub-paragraph (a) substitute—
“(a)a person who has been in pensionable employment either—
(i)continues to be employed by the same employer at a reduced rate of contributable salary, where the reduced rate of contributable salary had effect before 1st January 2007, or
(ii)ceases to be employed before 1st January 2007 and is re-employed before 1st February 2007 (whether by the same or a different employer) as a reduced rate of contributable salary, and”,
(b)for sub-paragraph (d) substitute—
“(d)the relevant employer notifies the Secretary of State in writing of the matters specified in paragraph (2) before 1st March 2007.”,
(c)for sub-paragraph (f) substitute—
“(f)where he was not, immediately before 1st January 2007, in pensionable employment by virtue of regulation B7 as it had effect before 1st of January 2007.”.
63. In regulation H6(3) in the definitions of “A” and “B” for “regulation C3, C4, C6 or C11” substitute “regulation C3 or C11 or Schedules 4 or 5”.
64. After regulation H6 insert—
H6A.—(1) The Secretary of State may, before paying any lump sum under regulations E4A,E6, E6A, E19A, E31(14), I3 or I5A require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the Secretary of State.
(2) The declaration is a declaration, in a form specified by the Secretary of State, signed by the person, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004(9) (recycling of lump sum) does not apply.
(3) Where no such declaration is received by the Secretary of State by the date referred to in paragraph (1) —
(a)where the payment in question would otherwise have been a lump sum under regulation E4A, E6A, or I5A, the Secretary of State may treat the election under regulation E4A, E6A or I5A as being of no effect,
(b)where the payment in question would otherwise have been a lump sum under regulation E6, E31(14) or I3, the Secretary of State may, in place of the lump sum, pay an additional pension representing the value of the lump sum,
(c)where the payment in question would otherwise have been a lump sum under regulation E19A, the Secretary of State need not pay the lump sum.
(4) The amount of the additional pension referred to in paragraph (3)(b) shall be determined by the Secretary of State after taking advice from the Government Actuary.”.
65. In regulation H11 omit paragraphs (11) to (14).
66. After regulation I2 insert—
I2A.—(1) For the purposes of this Part a pension credit member’s normal pension age is, subject to paragraph (2),the normal pension age of the corresponding debit member.
(2) Where—
(a)the corresponding debit member is a person with mixed service, and
(b)at the time when the relevant arrangement referred to in section 28 of the 1999 Act took effect the corresponding debit member had not ceased to be a pre-2007 entrant by virtue of regulation EA1(4),
the pension credit member’s normal pension age shall be 60.”.
67. In regulation I3—
(a)in paragraph (1) after “shall consist of a pension and” insert “(where paragraph (3) applies)”,
(b)after paragraph (2) insert —
“(2A) Paragraph (3) applies where the pension credit member’s normal pension age is 60.”,
(c)at the beginning of paragraph (3) insert “Where this paragraph applies,”,
(d)in paragraph (5) for “the age of 60” substitute “the normal pension age”.
68. In regulation I5(1) and (2) for “the age of 60” substitute “the normal pension age”.
69. After regulation I5 insert—
I5A.—(1) A pension credit member may, by an election made with the application for payment under regulation E33(2), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his pension.
(2) The amount of such lump sum must be a multiple of £12 and cannot exceed—
(a)in the case of a pension credit member with a normal pension age of 65, his permitted maximum, and
(b)in the case of a pension credit member with a normal pension age of 60, his permitted maximum less the lump sum paid under regulation I3(3).
(3) Where a lump sum is paid under this regulation the annual rate of the pension credit member’s pension is reduced by £1 for every £12 of lump sum.”.
70. In regulation I7(3)(a), (3)(b) and (4)(b) for “the age of 60” substitute “the normal pension age”.
71. In Schedule 1—
(a)After the definition of “The 1988 Regulations” insert—
| ““2007 or later entrant” | Construe in accordance with regulation EA1(9) .”, |
(b)Insert the following definitions at the appropriate place in alphabetical order—
| ““Career break” | A period when, with the agreement of the person’s former employer, the person is not in pensionable employment but expects to return to employment with the same employer and during which the person does not take up any other employment |
| “Normal pension age” | Construe in accordance with regulation EA1(10) or, where applicable regulation I2A |
| “Old regulation C4” | Regulation C4 as it had effect immediately before 1st January 2007 |
| “Old regulation C5” and “old regulation C9” | Regulation C5 or C9 as it had effect immediately before 1st January 2007 and as it has effect on and after that date by virtue of paragraph 8 or 9 of Schedule 5 to the Teachers’ Pensions etc. (Reform Amendments) Regulations 2006 |
| “Permitted maximum” | Construe in accordance with paragraph 2 of Schedule 29 to the Finance Act 2004(10) |
| “Person with mixed service” | Construe in accordance with regulation EA1(8) |
| “Phased retirement benefits” | Construe in accordance with regulation E4A(1) |
| “Post-break employment start” | Construe in accordance with regulation EA1(7) |
| “Pre-2007 entrant” | Construe in accordance with regulation EA1(2) |
| “Relevant break of service” | Construe in accordance with regulation EA1(5) |
| “Retail prices index” | The index of retail prices published by the Office for National Statistics |
| “Surviving nominated partner” | Construe in accordance with regulation E22A(6)”, |
(c)for the definition of “appropriate factor” substitute—
| ““Appropriate factor” | A factor from time to time specified in relation to the age of a person by the Secretary of State after taking advice from the Government Actuary, and different factors may be specified— (a) for persons with a normal pension age of 60, for persons with a normal pension age of 65, and for persons to whom Part VI of Schedule 10 applies, and (b) for different provisions of these Regulations.”, |
(d)for the definition of “retirement lump sum” substitute—
| ““Retirement lump sum” | A retirement lump sum payable under Part E (including any retirement lump sum paid as part of phased retirement benefits).”, |
(e)for the definition of “retirement pension” substitute—
| ““Retirement pension” | A retirement pension payable under Part E including— (a) any retirement pension paid as part of phased retirement benefits, and (b) except in regulation E13A, a total incapacity pension paid pursuant to regulation E8A”, |
(f)in the definition of “actuarial reduction” for “E5(3) or E6(3)” substitute “E5(6) and (7) or E6(5)”,
(g)at the end of the definition of “average salary” insert “or, where applicable, regulation E31A”,
(h)for paragraph (a)(i) and (ii) of the definition of “entitled” substitute—
“(i)has not yet attained the normal pension age, or
(ii)regardless of his age has ceased to be in further employment in circumstances where regulation E15A applies, and”,
(i)for paragraph (b) of the definition of “excluded employment” substitute—
“(b)being in part-time employment—
(i)has not made an election pursuant to regulation B1(4), where such an election is required pursuant to that paragraph for part-time employment to be pensionable, or
(ii)is at the same time in full-time employment.”.
72. After Schedule 2 insert as Schedule 2A the Schedule set out as Schedule 4 to these Regulations.
73. In Schedule 3—
(a)omit paragraphs 1 and 2,
(b)in paragraph 3 before “regulation C4” insert “old”.
74. At the end of the heading to Schedule 4 insert “UNDER OLD REGULATION C4”.
75. In Schedule 4—
(a)for the definitions of “the principal election”, “the past period” and “the contribution period” substitute—
“ “the principal election” means the election under old regulation C4(2);
“the past period” means the period specified in that election pursuant to old regulation C4(7)(a);
“the contribution period” means the period specified in that election pursuant to old regulation C4(7)(c)”. ”,
(b)in paragraph 1(3) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(c)in paragraph 1(3)(b) before “regulation C9(7)(a)” insert “old”,
(d)in paragraph 3 omit “Subject to paragraphs 4 and 5”,
(e)omit paragraphs 4 and 5,
(f)in paragraph 6(2) for “such sum as would be payable under Part II of this Schedule” substitute “the actuarial equivalent of the additional contributions that would have been payable”,
(g)in paragraph 9(3) for “such amount as would be payable under Part II of this Schedule” substitute “the actuarial equivalent of the additional contributions that would have been payable”,
(h)omit paragraph 11,
(i)in paragraph 12—
(i)insert “and” at the end of sub-paragraph (2)(b) and omit “and” at the end of sub-paragraph(2)(c),
(ii)omit sub-paragraph (2)(d).
76. In Schedule 5—
(a)in paragraph 1(1)—
(i)for “Subject to sub-paragraphs (2) to (5) and paragraphs 2, 3 and 4” substitute “Subject to paragraphs 3 and 4”
(ii)for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(b)omit paragraphs 1(2) to (5) and 2.
(c)in paragraph 3—
(i)omit “or 2”,
(ii)for “regulation C4” substitute “Schedule 4”,
(d)omit paragraphs 6(3) and 9(5).
(e)in paragraph 10 for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”.
77. In Schedule 6—
(a)in paragraph 10(1)(b) for “C4, C6, C9 or C10” substitute “old regulation C9, regulation C10 or Schedules 4 or 5”,
(b)for paragraph 12(1) substitute—
“(1) Subject to sub-paragraph (2) and except as otherwise provided in Part III, where payment is to be made by method A, the payment period (in years) is A/B x C, where A is the period (in years) specified under paragraph 11(1)(b), B is the rate specified under paragraph 11(1)(d), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part.
(1A) The multiplier determined for the purpose of this Part may differ depending on whether the election is made under paragraph 10(1) or 10(2).”,
(c)omit Table 5,
(d)in paragraph 12(2)—
(i)omit “(“the Table period”)”, and
(ii)for “in which the Table period ends” substitute “in which that period ends”,
(e)for paragraph 12(3) substitute—
“(3) Where payment is to be made by Method B, the lump sum payable, which must be paid within 3 months after its amount is notified by the Secretary of State, is A x B x C, where A is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part, B is the period (in years) in respect of which the election was made, and C is the appropriate amount.”,
(f)for paragraph 13B(3) substitute—
“(3) Except as otherwise provided in Part III, the payment period (in years) is A/B x C, where A is the period (in years) specified under paragraph 13A(5), B is the percentage rate specified under paragraph 13A(6), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying person.”,
(g)omit Table 5A,
(h)in paragraph 13C(2) for “1.9% if the qualifying person is a man and 1.7% if the qualifying person is a woman” substitute “the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying person”,
(i)after Part IIA insert—
13D.—(1) A person (other than a person who has previously made an election under sub-paragraph (2)) who has nominated a person under regulation E22A is a qualifying person for the purposes of this Part while—
(a)the nomination continues to have effect, and
(b)he is in pensionable employment.
(2) A qualifying person may by giving notice in writing to the Secretary of State before the end of the election period elect to pay family benefit contributions attributable to a period of his reckonable service which is not relevant service as mentioned in regulation E27(2B).
(3) An election under sub-paragraph (2) must be accompanied by a declaration signed by the qualifying person that he is in normal health.
(4) If a qualifying person dies before the end of the election period without making an election under sub-paragraph (2), his surviving nominated partner may by giving notice in writing to the Secretary of State within 3 months of the qualifying person’s death elect to pay family benefit contributions attributable to a period of the qualifying person’s reckonable service which is not relevant service as mentioned in regulation E27(2B).
(5) The election period begins on the day on which the qualifying person makes the nomination and ends on the earlier of the day on which—
(a)any election he makes under regulation B5 has effect,
(b)he has been a qualifying person for a period of 6 months in relation to that nomination.
(6) The person who makes an election under this paragraph must specify in the notice the period in respect of which the election is made, which must be either the whole of the qualifying person’s reckonable service which is not relevant service as mentioned in regulation E27(2B) or such part of such service as consists of one or more whole years.
(7) Where an election is made under sub-paragraph (2), the qualifying person must state in the notice whether family benefit contributions are to be paid by Method 1 (monthly payments) or by Method 2 (lump sum) and, if the former, must specify the percentage rate of his contributable salary at which they are to be paid, which must comply with paragraphs 14(2) and (3).
(8) Where a qualifying person’s pensionable employment is part-time, for the purpose of specifying (under sub-paragraph (7)) a percentage rate at which family benefit contributions are to be paid or varying (under paragraph 14(4)) that rate, sub-paragraph (7) and paragraph 14(2) have effect as if the reference to the qualifying person’s contributable salary were to his full-time equivalent salary.
(9) Except as provided in paragraph 14(4), an election under this paragraph is irrevocable.
13E.—(1) This paragraph applies where—
(a)the qualifying person states under paragraph 13D(7) (in accordance with an election made under paragraph 13D(2)) that family benefit contributions are to be paid by Method 1, and
(b)the payment period exceeds a year.
(2) Where this paragraph applies, except as otherwise provided in Part III, the qualifying person must pay family benefit contributions to the Secretary of State by way of monthly payments from his contributable salary at the percentage rate specified under paragraph 13D(7) or, where the rate is varied under paragraph 14(4), at the specified higher rate for the duration of the payment period.
(3) Except as otherwise provided in Part III, the payment period (in years) is A/B x C, where A is the period (in years) specified under paragraph 13D(6), B is the percentage rate specified under paragraph 13D(7), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the person nominated under regulation E22A.
(4) Where the payment period would (apart from this sub-paragraph) end on a day other than the last day of a month, the payment period ends with the last day of the month in which it would otherwise end.
13F.—(1) Except where paragraph 13E applies, the person who makes an election under paragraph 13D must pay family benefit contributions to the Secretary of State by way of a lump sum calculated in accordance with the Method 2 formula in sub-paragraph (2) within 3 months of receiving written notice of the amount of the lump sum.
(2) The Method 2 formula is A x B x C,
where—
A is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the person nominated under regulation E22A,
B is the period (in years) specified under paragraph 13D(6), and
C is the annual rate of the qualifying person’s contributable salary.”,
(j)in paragraph 14(1)(c) after “paragraph 13B (Method 1)” insert “or paragraph 13D (Method 1)”,
(k)in paragraph 14(3) for “regulation C4 or C6” substitute “Schedules 4 or 5”,
(l)in paragraph 14(7) and (11) for “regulation C9 or C10” substitute “old regulation C9 or regulation C10”,
(m)in paragraph 15—
(i)in sub-paragraph (2) for “the age of 60” substitute “the normal pension age”,
(ii)in sub-paragraph (2)(b) after “his 60th birthday” insert “in the case of a pre-2007 entrant or his 65th birthday in any other case”,
(iii)after sub-paragraph (2) insert—
“(2A) But sub-paragraph (2) does not apply in a case to which sub-paragraph (2B) applies.
(2B) This sub-paragraph applies in a case where—
(a)the qualifying person dies before attaining the normal pension age or becomes entitled to payment of retirement benefits by virtue of regulation E4(4),
(b)family benefit contributions were payable by monthly payments under paragraph 13D (Method 1), and
(c)the Secretary of State is not satisfied that the declaration under paragraph 13D(3) was made in good faith.”,
(iv)in sub-paragraph (3) for “the age of 60” substitute “the normal pension age, or in a case to which sub-paragraph (2B) applies”,
(n)in paragraph 16 after “surviving civil partner” insert “, surviving nominated partner”.
78. Omit Schedule 9.
79. In Schedule 10—
(a)in paragraph 1 for the definition of “part-time teacher” substitute—
“ “part-time teacher” means a person whose part-time employment is pensionable employment;”.
(b)in paragraph 16(1) for “regulation C4” substitute “Schedule 4”,
(c)omit paragraph 21,
(d)in paragraph 28A —,
(i)for sub-paragraph (1) substitute—
“(1) Where regulation E5(6) applies to a person who is also entitled to an annual pension in respect of admitted service the rate of that pension is the rate calculated in accordance with paragraph 28(1) multiplied by the appropriate factor.”.
(ii)for sub-paragraph (ii) substitute—
“(2) Where regulation E6(5) applies to a person who is also entitled to a lump sum in respect of admitted service then the amount of the lump sum is the amount calculated in accordance with paragraph 28(2) multiplied by the appropriate factor.”.
(e)in paragraph 30 for “the age of 60” substitute “the normal pension age”,
(f)in paragraph 37 for “the age of 60” in both places where those words occur substitute “the normal pension age”.
80. Omit Schedule 11.
81. In paragraph 9(2)(b) of Schedule 15 for “determined in accordance with substituted regulation G7(10)” substitute “13.5%”.
Paragraph 72 of Schedule 3
1. In this Schedule—
“additional benefits” means—
where the election is an election such as is mentioned in paragraph 5(a) or 12(a), an increased retirement pension, and
where the election is an election such as is mentioned in paragraph 5(b) or 12(b), an increased retirement pension and increased benefits for the person’s dependants,
“financial year” means—
the period starting on 1st January 2007 and ending on 31st March 2008, and
each subsequent period of 12 months ending on 31st March.
“monthly contribution election” means an election which, pursuant to paragraph 3(a) states that the additional contributions are to be paid in monthly payments,
“the payment period” has the meaning in paragraph 3(a),
“the start date” in relation to any election means the date on which the first contribution or, as the case may be, the lump sum contribution is received by the Secretary of State pursuant to the election.
2. Paragraphs 3 to 10 apply in relation to an election by a person in pensionable employment pursuant to regulation C3C(1).
3. An election shall state whether the additional contributions—
(a)are to be paid in monthly payments and, if so, the length of the period over which they are to be paid (“the payment period”), or
(b)are to be paid in a single lump sum.
4. The length of the payment period must be such that—
(a)the period ends before the person attains the normal pension age, and
(b)the period does not end on a date which is more than 20 years after the date of the election.
5. An election shall be an election—
(a)to be credited with an increased retirement pension of an amount specified in the election (but subject to paragraphs 7 and 18 to 22), or
(b)to be credited with an increased retirement pension as mentioned in sub-paragraph (a) and with increased benefits for the person’s dependants.
6. An election shall contain such further information as may be specified by the Secretary of State.
7. The amount of an increased retirement pension specified in the election must be a multiple of such amount as may be specified from time to time by the Secretary of State.
8. An election is to contain a declaration by the person making it that he is in normal health.
9. An election only has effect if the Secretary of State notifies the person making it in writing that it has been accepted.
10. Where an election has been made, nothing in this Schedule shall prevent further elections being made (but subject to paragraphs 18 to 22).
11. Paragraphs 12 to 16 apply in relation to an election made by an employer under regulation C3C(2).
12. An election shall be an election that additional contributions are to be paid in a single lump sum and shall be an election—
(a)that the person in respect of whom the election is made should be credited with an increased retirement pension of an amount specified in the election (but subject to paragraphs 15 and 18 to 22), or
(b)that the person in respect of whom the election is made should be credited with an increased retirement pension as mentioned in sub-paragraph (a) and with increased benefits for his dependants.
13. An election shall be accompanied by a declaration by the person in respect of whom it is made that he is in normal health.
14. An election shall contain such other information as may be specified from time to time by Secretary of State.
15. The amount of increased retirement pension specified in the election must be a multiple of such amount as may be specified from time to time by the Secretary of State.
16. An election only has effect if—
(a)it is made with the consent of the person in respect of whom it is made, and
(b)the Secretary of State notifies the employer in writing that it has been accepted.
17. Where an election has been accepted by the Secretary of State, and has not ceased to have effect, the person in respect of whom the election was made shall, subject to paragraphs 26, 28, 29 to 31,32(2), 33, 35, and 36(2) be credited with the additional benefits specified in the election.
18. Where the election is the first election made by, or in respect of, a person the maximum amount of increased retirement pension that may be specified in the election is—
(a)where the election is made in the financial year starting on 1st January 2007 and ending on 31st March 2008, £5000,
(b)where the election is made in any subsequent financial year, AxRI/RE rounded to the nearest £100 where—
A is the maximum amount of increased retirement pension for the financial year before the financial year in which the election is made (whether determined under this paragraph or under paragraph 19),
RI is the retail prices index for the month of February in the financial year before the financial year in which the election is made, and
RE is the retail prices index for the month of February in the second financial year before the financial year in which the election is made (or the index for January 2007 where the financial year before the financial year in which the election is made is the period starting on 1st January 2007 and ending on 31st March 2008).
19. The Treasury shall from time to time review the operation of paragraph 18 and as a result of such review may substitute a different maximum amount of increased pension for the amount determined under paragraph 18.
20. Where an election has previously been made in relation to a person (whether by the person under regulation C3C(1), or by the person’s employer under regulation C3C(2)) the maximum amount of increased retirement pension is the amount specified in paragraph 18, or, as the case may be, paragraph 19, less the aggregate of the amounts of increased retirement pensions, multiplied by the factor specified in paragraph 21, specified in previous elections.
21. For the purposes of paragraph 20 the factor is RI/RE where—
RI is the retail prices index for the month of February in the financial year before the financial year in which the new election is made, and
RE is the retail prices index for the month of February in the financial year before the financial year in which the start date in relation to the previous election in question election fell (or the index for January 2007, where the start date in relation to that election fell in the financial year starting on 1st January 2007 and ending on the 31st March 2008).
22. Where a previous election has been revoked the references in paragraph 20 to the amount of an increased retirement pension specified in a previous election shall be taken as the amount of an increased pension with which a person has been credited pursuant to regulation 26.
23. The Secretary of State shall from time to time determine the amount of monthly payments of contributions or lump sum payment of contributions required for any given amount of increased retirement pension and different amounts may be specified—
(a)in relation to different classes or descriptions of persons, and
(b)depending on whether the election is one specified in paragraph 5(a) or 12(a) or in paragraph 5(b) or 12(b),
and, where additional contributions are paid in monthly payments, different amounts may be determined depending on the length of the contribution period.
24. Where the Secretary of State has, pursuant to paragraph 23, determined any amount of monthly payments of contributions or lump sum payment of contributions required for any given level of increased retirement pension he may at any time redetermine any of the amounts previously determined, and where any amounts are redetermined during a period when the person is paying monthly contributions the person shall, from 1st April following the date of the redetermination, pay the monthly payments in accordance with the redetermination but without prejudice to paragraph 25 (revocation of election) or to any right of the person to make a further election.
25. A person who has made a monthly contribution election may revoke the election before the end of the payment period.
26. Where an election is revoked the person shall be credited with additional benefits of an amount, determined by the Secretary of State, having regard to the contributions paid before the revocation.
27. An election which states that the additional contributions are to be paid in a single lump sum ceases to have effect if —
(a)the payment of contributions is not received by the Secretary of State within one month after the date on which the Secretary of State notified the person making the election that the election had been accepted, or
(b)the payment of contributions is received by the Secretary of State after the person in respect of whom the election is made attains the normal pension age.
28.—(1) Where a person who has made a monthly contribution election ceases to be in pensionable employment before the end of the payment period and does not again enter pensionable employment within one month the person may (except where paragraph 29 applies)—
(a)pay to the Secretary of State a lump sum of such amount, determined by him, so that he may be credited with the amount of additional benefits specified in the election, or
(b)elect to be credited with an amount of additional benefits, determined by the Secretary of State having regard to the contributions paid before he ceased to be in pensionable employment.
(2) Where the lump sum referred to in sub-paragraph (1)(a) is not received by the Secretary of State within one month after the date on which the person ceased to be in pensionable employment the person is treated as having elected to be credited with additional benefits under sub-paragraph (1)(b).
29. Where a person who has made a monthly contribution election becomes entitled to retirement benefits by virtue of regulation E4(5) or (5A) before the end of the payment period the person shall be credited with an amount of additional benefits, determined by the Secretary of State, having regard to the contributions paid before he became entitled to retirement benefits.
30. Where a person who has made a monthly contribution election makes an election under paragraph (11) of regulation E4A (phased retirement) before the end of the payment period the person shall be credited with an amount of additional benefits, determined by the Secretary of State, having regard to the contributions paid before the date on which the first payment of additional benefits was made.
31. Where a person becomes entitled to payment of retirement benefits by reason of his having become incapacitated within one year after the date on which the election was made—
(a)where the contributions were made by the person pursuant to an election made by him those contributions shall be repaid to the person, and
(b)where contributions were made by the person’s employer pursuant by an election made by him those contributions shall be repaid to the employer,
but in either event the person will not be credited with any additional benefits.
32.—(1) Where a person who has made a monthly contribution election becomes entitled to payment of retirement benefits by reason of his having become incapacitated more than one year after the date on which the election was made but before the end of the payment period the person shall nevertheless be credited, pursuant to paragraph 17, with the amount of additional benefits specified in the election unless paragraph (2) applies.
(2) Where a person falls within paragraph (1) but the declaration required by paragraph 8 or 13 was not made in good faith the person shall be credited with an amount of additional benefits determined by the Secretary of State, having regard to the contributions paid before the date on which he became entitled to payment of retirement benefits.
33.—(1) This paragraph applies where a person has become entitled to payment of retirement benefits by virtue of regulation E4(4) (incapacity) and subsequently ceases to be incapacitated (so that by virtue of regulation E13A(8) the increased retirement pension with which the person was credited pursuant to paragraph 32(1) ceases to be payable).
(2) Where this paragraph applies the person shall be credited with an amount of additional benefits determined by the Secretary of State having regard to—
(a)the contributions paid before he became entitled to payment of retirement benefits by virtue of regulation E4(4), and
(b)the contributions which would have been paid during the period when he was entitled to payment of those retirement benefits, if he had continued to pay monthly contributions during that period.
34. Paragraphs 35 and 36 apply where the election is an election, pursuant to paragraph 5(b) or (where applicable) paragraph 12(b) for increased benefits to be paid to the person’s dependants (as well as for an increased retirement pension).
35. Where the person dies within one year after the date on which the election was made—
(a)where the contributions were made by the person pursuant to an election made by him, those contributions shall be repaid to the person’s personal representatives, and
(b)where the contributions were made by the person’s employer, pursuant to an election made by him, those contributions shall be repaid to the employer,
but in either event there shall be no credit relating to increased benefits for the person’s dependants.
36.—(1) Where the person has made a monthly contribution election and dies more than one year after the date on which the election was accepted, but before the end of the payment period, there shall nevertheless be a credit, pursuant to paragraph 17, relating to increased benefits for the person’s dependants as specified in the election, unless paragraph (2) applies.
(2) Where the person falls within paragraph (1) but the declaration required by paragraph 8 or 13 was not made in good faith there shall be a credit relating to increased benefits for the person’s dependants of an amount determined by the Secretary of State having regard to the contributions paid before the date of the person’s death.
37. The Secretary of State shall take advice from the Government Actuary before determining any amount pursuant to paragraphs 23, 24, 26, 28(1), 29, 30, 32(2), 33(2) or 36(2).
Regulation 3
1. Any notice given before 1st January 2007 under regulation 12(6) of the Teachers’ Superannuation (Additional Voluntary contributions) Regulations 1994 shall be treated as having been given under that regulation as substituted by paragraph 4(d) of Schedule 1.
2. In this Part “the 1997 Compensation Regulations” means the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997.
3.—(1) Where, before 1st January 2007—
(a)a person employed in an institution within category D became entitled to compensation under Part IV of the 1997 Compensation Regulations, or
(b)the governing body of an institution within category D decided to credit an eligible teacher with a period of service under Part V of the 1997 Compensation Regulations,
then, despite the provisions of paragraph 2(a) of Schedule 2 to these Regulations and without prejudice to section 16 of the Interpretation Act 1978(11), the governing body of the institution within category D shall continue to make or abate payments of compensation to or in respect of the person in accordance with Parts IV or V of the 1997 Compensation Regulations and shall be entitled to adjust such payments in accordance with those regulations.
(2) Where former employment fell within category G for the purposes of regulation 29(3) of the 1997 Compensation Regulations, it shall be regarded as falling within category D where sub-paragraph (1) applies.
4.—(1) Regulation 13 of the 1997 Compensation Regulations shall (despite paragraph 6 of Schedule 2) continue to have effect where a declaration was delivered to the compensating authority pursuant to paragraph (2) of that regulation before 1st January 2007.
(2) Where regulation 13 of the 1997 Compensation Regulations continues to have effect pursuant to paragraph (1)—
(a)the references in paragraphs (3) and (6)(a) of those regulations to regulation E5(3) of the Pensions Regulations shall have effect as references to regulation E5(6) and (7) of the Pensions Regulations,
(b)regulation 15(7) of the 1997 Compensation Regulations shall have effect without the amendment made by paragraph 7 of Schedule 2.
5. In this Part “the 1997 Pensions Regulations” means the Teachers’ Pensions Regulations 1997.
6. Where, before 1st January 2007, a person aged 70 or over was in employment which would have been pensionable but for regulation B4(1)(a) of the 1997 Pensions Regulations, the amendment made to that provision by paragraph 3(a) of Schedule 3 does not have the effect of making pensionable any employment which occurred before 1st January 2007 but after the person was age 70.
7. Paragraphs (9) to (11) of regulation C4 of the 1997 Pensions Regulations shall (despite paragraph 12 of Schedule 3) continue to have effect in relation to any election made under that regulation before 1st January 2007.
8.—(1) Regulation C5 of the 1997 Pensions Regulations shall (despite paragraph 12 of Schedule 3) continue to have effect in relation to any person who died before 1st January 2007.
(2) Where that regulation continues to have effect—
(a)references in that regulation to regulation C4 shall have effect as references to old regulation C4, and
(b)regulation G2(2)(a) of the 1997 Pensions Regulations shall have the effect as if it included a reference to regulation C5.
9.—(1) Regulation C9 of the 1997 Pensions Regulations shall (despite paragraph 15 of Schedule 3) continue to have effect in relation to any person who left pensionable employment before 1st January 2007.
(2) Where a person left pensionable employment before 1st January 2007 but has not made an election before that date that regulation shall have effect as if for paragraph (10) there were substituted—
“(10) An election under this regulation must be made by giving written notice to the Secretary of State which must specify the period and must be given before 28th February 2007.”.
(3) Where regulation C9 of the 1997 Pensions Regulations continues to have effect by virtue of sub-paragraph (1)—
(a)paragraph (7) of that regulation shall have effect as if for sub-paragraph (b) there were substituted—
“(b)the percentage is the aggregate of the rate of contributions specified under regulation C3(2) and the required percentage determined in accordance with regulation G5.”,
(b)paragraphs 1 and 2 of Schedule 3 to the 1997 Pensions Regulations shall continue to apply for the purpose of determining the maximum length of the period in respect of which any election may be made.
10. In relation to contributions to be paid by a person who, before 1st January 2007, made an election under regulation B7 of the 1997 Pensions Regulations regulation C18(1A) of those regulations shall continue to have effect without the amendments made by paragraph 22(b) of Schedule 3.
11.—(1) Regulation E11 of, and Schedule 11 to, the 1997 Pensions Regulations shall (despite paragraphs 33 and 80 of Schedule 3 to these Regulations, shall continue to have effect where a declaration was delivered to the Secretary of State pursuant to regulation E11(4) of the 1997 Pensions Regulations before 1st January 2007.
(2) Where the provisions mentioned in sub-paragraph (1) continue to have effect by virtue of that sub-paragraph regulations E14(3) and E35(2) of the 1997 Pensions Regulations shall have effect without the amendments made by paragraphs 35(c) and (d)(iii) and 56 respectively.
12.—(1) Regulation E31 of the 1997 Pensions Regulations shall continue to have effect without the amendments made by paragraph 51 of Schedule 3 for the purpose of determining the average salary of a person where—
(a)the person’s entitlement to payment of retirement benefits took effect before 1st January 2007, or
(b)(where the person does not fall within paragraph (a)) the person ceased to be in pensionable employment before 1st January 2007 and is not at any time in pensionable employment on or after that date before attaining the age of 60.
(2) For the purposes of sub-paragraph (1) a person is to be treated as being in pensionable employment during any period for which he is paying additional contributions under old regulation C9 or regulation C10 of the 1997 Pensions Regulations.
(3) Where the entitlement of a person (other than a person falling within paragraph (1)(b)) to payment of retirement benefits took effect on or after 1st January 2007 but before 1st January 2009 the average salary of that person shall be the greater of——
(a)the average salary determined in accordance with regulation E31, or, where applicable, regulation E31A of the 1997 Pensions Regulations, and
(b)the average salary determined in accordance with regulation E31 of the 1997 Pensions Regulations without the amendments made by paragraph 51 of Schedule 3.
13. Where, before 1st January 2007, a person was in pensionable employment and would, but for regulation E32(2)(b) of the 1997 Pensions Regulations have reckonable service in excess of 40 years before attaining the age of 60, the amendment to regulation E32(2) of the 1997 Pensions Regulations made by paragraph 53(a) of Schedule 3 does not have the effect of increasing reckonable service undertaken before 1st January 2007.
(This note is not part of the Regulations.)
These Regulations amend the Teachers’ Pensions Regulations 1997 and also the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994 and the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997.
The amendments to the Teachers Pensions’ Regulations 1997 (“the Principal Regulations”) are contained in Schedule 3.
Regulation B1 of the Principal Regulations is amended so that part-time employment is pensionable without the person having to make an election. However, where the person was in part-time employment on 31st December 2006 the employment is not pensionable unless an election is made to this effect. Regulation B1 of the Principal Regulations is also amended to provide that, where a person is in full-time employment and at the same time in part-time employment, the part-time employment is not pensionable. (Paragraph 2(b) and (c) of Schedule 3).
Regulation B4 of the Principal Regulations is amended so that the maximum age at which a person can be in pensionable employment is increased from 70 to 75. (Paragraph 3(a) of Schedule 3).
Regulation B7 of the Principal Regulations is omitted. That regulation provided that where a person was entitled to be paid a teacher’s pension and took up further employment within the scope of the regulations the employment was pensionable if an election was made. The effect of omitting Regulation B7 is that all such employment will automatically be pensionable unless the teacher elects (under regulation B5) otherwise. However, a further amendment to Regulation B1 provides that where a person was in such employment on 31st December 2006 the employment is not pensionable unless an election to that effect is made and there are also special provisions relating to persons who go back to employment after retiring on ill health grounds. (Paragraphs 2(d), 3(b) and 6 of Schedule 3).
New provisions are made about employers’ and employees’ contributions, in the substituted regulations C2 and G5 of the Principal Regulations. Under the new provisions some changes in the required contributions contained in the Government Actuary’s Report under Regulation G4 are shared between employers and employees. (Paragraphs 8 and 60 of Schedule 3).
New provisions are made under which members may acquire additional pension benefits. Regulations C4, C5 and C9 of the Principal Regulations which provided for members to be able to purchase added years are omitted. However, where persons are currently making contributions in order to purchase added years they can continue to do so. In place of these provisions the new regulation C3C of, and the new Schedule 2A to, the Principal Regulations provides for persons to be able to elect to pay additional contributions, either as a lump sum or in monthly payments, and in return to receive an increased pension with or without increased benefits for dependants. The new regulation E5A provides for such increased pension; the amount of the pension specified in the election is indexed linked up to the second month before the month in which the person becomes entitled to retirement benefits. If the election specifies benefits for dependants the new Regulation E29A provides that they are at a rate which is half the rate of the increased pension. (Paragraphs 11 – 15, 29, 49 and 72 of Schedule 3, Schedule 4 and paragraphs 7 to 9 of Schedule 5).
Regulation E4 of the Principal Regulations is amended to provide that the minimum age at which a person who is not a “post 5th April 2006 entrant” can be entitled to benefits under regulation E4(5) (redundancy or efficient discharge of employer’s functions) is raised from 50 to 55 where the person has not reached the age of 50 before 6th April 2010. (Paragraph 28(e)(i) of Schedule 3).
New provisions are made for normal pension age in place of the provision that persons are, broadly speaking, entitled to benefits at the age of 60. Where a person enters pensionable employment for the first time on or after 1st January 2007, his normal pension age will be 65. A person who was in employment on 1st January 2007 however retains a normal pension age of 60. If such a person has a break of service of five years or less this will not affect his pension age. However, there are special provisions for a person who has a break of service of five years or more (defined as a person with mixed service). The definitions of “normal pension age” and related terms are contained in the new regulation EA1 of the Principal Regulations and regulation E4 which deals with entitlement to benefits is amended accordingly. (Paragraphs 24 and 28 (a) to (c), (d)(i), e(ii) and (f) of Schedule 3).
There are related changes to the way in which retirement benefits are calculated. Where a person has a normal pension age of 60 there is no change; the person receives a lump sum and pension calculated by reference to 80ths of the person’s average salary. Where, however, the person has a pensionable age of 65 he will receive a pension calculated by reference to 60ths of his average salary but will not receive a lump sum (unless he elects to commute a part of his pension under new regulation E6A described below). Again, there are special provisions for persons with mixed service. (Paragraph 29 of Schedule 3 – the substituted regulations E5 and E6).
Provision is made by the new regulation E4A of the Principal Regulations to allow a person to elect to receive some of his pension benefits without the requirement of having to retire, known as phased retirement benefits. To be eligible, a person needs to have reached the age of 55 and either is to continue in his employment or has secured further employment elsewhere. In both cases, his employer has to certify that he taken a minimum reduction in salary of 25% compared to before he applied for phased retirement benefits. A person can choose to make up to two such elections of his pension benefits before retirement. The amount of phased retirement benefits is calculated as set out in regulation E5 and (where applicable) E6 but taking into account adjustments. The average salary is calculated as the person’s average salary immediately before the change in employment and the effective reckonable service is the percentage of the election up to the date of that change. Similar adjustment is made for any additional benefits to be paid as part of the phased retirement benefits.
New provision is made under which, where a person has a normal pension age of 65, and accrues reckonable service after reaching that age, his pension is actuarially enhanced – the substituted regulation E5(10) to (12).
Further changes are made to the provisions relating to the lump sum (regulation E6 of the Principal Regulations). Paragraph (4) of the substituted regulation E6 provides that a person’s lump sum cannot exceed his “permitted maximum” defined in Schedule 1 by reference to the Finance Act 2004; paragraph (7) provides that a person aged 75 or over cannot receive a lump sum. The new regulation E6B however provides that where a person is prevented from receiving a lump sum because he is 75 or over he will receive an increased pension.
New regulation E6A of the Principal Regulations contains new provisions whereby a person may elect to receive a further lump sum in place of part of his pension. If such an election is made the annual rate of pension is reduced by £1 for every £12 of lump sum.
New provisions are made for persons who retire on ill health grounds; they apply where the application for retirement benefits was received by the Secretary of State on or after 6th January 2007. The existing provisions will continue to apply where the application was received before that date. Under the new provisions, a person who is not in pensionable employment or taking a period of unpaid leave or a career break immediately following pensionable employment is only entitled to benefits if, as well as being incapacitated, his ability to carry out work is impaired by more than 90% and likely permanently to be so (regulation E4(4) Principal Regulations). Where however a person is in pensionable employment or taking unpaid leave or a career break immediately following pensionable employment and is entitled to benefits he will also be entitled to payment of an additional “total incapacity pension” and, where applicable, lump sum if his ability to carry out work is impaired by more than 90% and is likely permanently to be so (new regulation E8A). New regulation E13A provides for a person who ceases to be incapacitated. Where he has received the additional total incapacity pension but the person’s ability to carry out work ceases to be impaired by more than 90% the total incapacity pension ceases to be payable. If a person ceases to be incapacitated his retirement pension ceases to be payable. If a person takes up certain types of employment his ability to carry out work is treated as ceasing to be 90% impaired or (as the case may be) he is treated as ceasing to be incapacitated. Regulation E33 is also amended to make explicit provision that an application for ill health retirement pension must be signed by the person’s employer and must be accompanied by necessary medical evidence. (Paragraphs 28(d)(ii), 31 , 34 and 54(a) of Schedule 3).
Regulation E11 of, and Schedule 12 to, the Principal Regulations, which provide for allocation of part of retirement pension to the provision of alternative benefits is omitted, subject to savings. (Paragraphs 33 and 80 of Schedule 3 and paragraph 11 of Schedule 5).
Regulation E20 (death grant) is amended to provide that where the death occurs on or after 1st January 2007 death grant is three times average salary (Paragraph 38(b) of Schedule 3).
Provision is made for benefits under the Principal Regulations to be paid to the surviving partner of a member (who is not his surviving spouse or surviving civil partner). New regulation E22A provides for the member to make a nomination and for the circumstances in which the nominee becomes a “surviving nominated partner” who is entitled to benefits (paragraph 41 of Schedule 3).
Regulations E20 and E21 are amended to require any death grant or supplementary death grant to be paid, in the absence of another nominee, to a surviving nominated partner (paragraphs 38(d) and 39(c) of Schedule 3).
Regulations E22, E24 to E28 and E30 are amended to provide for short- and long-term pensions to be paid to the surviving nominated partner (paragraphs 40(a), 43(b) and (d), 44, 45(b), 46(k) and (l), 47(2)(a), (b), (e) and (g) and 50(a)) of Schedule 3). The service that counts for the purpose of calculating a surviving nominated partner’s pension is specified in new paragraph (7B) of regulation E28; but regulation C11 and Schedule 6 are amended to enable a member to pay family benefit contributions to make periods of his service (which would otherwise not do so) count for the purpose of calculating such a pension (paragraphs 17 and 77(i) of Schedule 3). Regulation E29 is amended to provide for the calculation of long-term pensions payable to children where a pension is payable to a surviving nominated partner (paragraph 48 of Schedule 3).
Regulation E23, which relates to the nomination of close relatives to receive benefits under the Principal Regulations, is given a new heading to avoid confusion with new regulation E22A. Amendments are made to provide that, if a partner is nominated under regulation E22A, any previous nomination made under regulation E23 ceases to have effect and no such nomination may be made while the nomination under regulation E22A is current (paragraph 42 of Schedule 3). Regulation E26 is amended so that a person nominated under regulation E23 does not receive a pension if he is co-habiting at the date of the member’s death (paragraph 45(c) and (d) of Schedule 3).
Regulation E27 is amended to clarify the periods of service which count for the purpose of a pension payable to widowers and to surviving civil partners where a transfer value has been accepted in respect of comparable British service (paragraph 46(c), (e), (f), (g) and (j) of Schedule 3).
Regulation E30 is amended so that a pension payable to a survivor is payable for life if the member was in pensionable employment after 31 December 2006 or was paying or had paid additional contributions under old regulation C9 or regulation C10 in respect of that period.
Regulation E31 of the Principal Regulations is amended and regulation E31A inserted to make new provisions for determining a person’s average salary on which benefits are calculated. The effect of the amendments, when taken with section 8(2)(a) of the Pensions (Increase) Act 1971, is that a person’s salary is either the salary in the last 365 days of service or the average of the salary, indexed linked up to the date when the average salary service ended, for the best 1,095 consecutive days of service in the previous ten years. Consequential amendments are made to regulation E14. Under transitional provisions, the existing provisions continue to apply where a person’s entitlement to benefits took effect before 1st January 2007. Where a person became entitled to benefits on or after 1st January 2007 but before 1st January 2009, the average salary will either be that calculated under the old provisions or that calculated under the new provisions whichever is the higher. (Paragraphs 35(d)(i) and (ii) and (e), 51 and 52 of Schedule 3 and paragraph 12 of Schedule 5).
Regulation E32 (effective reckonable service) of the Principal Regulations is amended so that there is no longer a restriction on reckonable service including service in excess of 40 years before reaching 60. (Paragraph 53(a) of Schedule 3).
Regulation H1 of the Principal Regulations, which provides for modifications where a person is employed at a reduced salary, is amended so that it will only apply (where the person continues to be employed by the same employer) where the reduced rate of contributable salary had effect before 1st January 2007 or (where the person had a break in employment) where the old employment ceased before 1st January 2007 and the new employment started before 1st February 2007. (Paragraph 62 of Schedule 3).
New provisions are made (new regulation H6A of the Principal Regulations) whereby the Secretary of State may, before paying a lump sum require a declaration to be made relating to the recycling of the lump sum by the person to whom the payment is to be made. (Paragraph 64 of Schedule 3).
Paragraphs 66 – 70 of Schedule 3 amend Part I of the Principal Regulations (pension sharing). The amendments reflect the change to the normal pension age described above and the new provisions whereby persons can commute part of their pension into a lump sum.
The definition of “appropriate factor” in Schedule 1 to the Principal Regulations, which is the factor by which a pension or lump sum is actuarially reduced in the case of early retirement, is amended and Schedule 9 to the Principal Regulations containing tables of reduction factors is omitted. Instead, under the amended definition, the “appropriate factor” is determined from time to time by the Secretary of State after taking advice from the Government Actuary.(Paragraphs 71(c) and 78 of Schedule 3). Parts II and IIA of Schedule 6 are also amended to remove the tables and factors (for the purpose of calculating the cost of making past years service count for pension benefits for survivors) from the Principal Regulations and provide for these to be determined in the same way (paragraph 77(b)-(h) of Schedule 3).
The other amendments to the Principal Regulations are consequential on the matters set out above or are drafting amendments.
Schedule 1 contains amendments to the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994. Paragraph 1(b) amends regulation 2 so that “dependant” includes a person in whose favour a nomination under regulation E22A of the Principal Regulations has effect. Paragraph 4 amends regulation 12 so that benefits may be provided from the age of 55 (rather than when a person became entitled to benefits under the Principal Regulations) and to change the options available if the participator dies within five years after the retirement pension commences. The other amendments are consequential on the amendments to the Principal Regulations or are drafting amendments.
Schedule 2 contains amendments to the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997. The amendments include the removal of employment at certain institutions within the higher education sector as relevant employment for the purposes of these Regulations (paragraphs 2, 9 and 12 of Schedule 2). The transitional provisions, however, allow for the continuing of payments of compensation to a person entitled to them from such institutions under the Regulations before 1st January 2007 and for such an institution to adjust payments accordingly. Paragraph 8(b) amends regulation 16 so that long-term compensation payable to a survivor is payable for life if the teacher was in pensionable employment after 31 December 2006. The other amendments are consequential on the amendments to the Principal Regulations or are drafting amendments.
1972 c.11; section 9 was amended by sections 4, 8 and 11 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7) and paragraph 7 of Schedule 8 to the Pension Schemes Act 1993 (c.48) and article 107 of S.I. 2001/3649; section 12 was amended by section 10 of the Pensions (Miscellaneous Provisions) Act 1990; section 24 has been amended but the amendments are not relevant to these Regulations. The Secretary of State’s functions under sections 9, 12, and 24 of the Superannuation Act 1972 were transferred, in or as regards Scotland, to the Scottish Ministers by virtue of section 63 of the Scotland Act 1998 (c.46) read with article 2 of, and Schedule 1 to, the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I.1999/1750).
See S.I 1981/1670.
S.I.1994/2924; relevant amending regulations are S.I. 2000/666, 2000/3028 and 2006/736.
S.I. 1997/311; relevant amending regulations are S.I.1998/2256 and 2005/2198.
S.I 1997/3001; relevant amending regulations are S.I. 1998/2255, 1999/607, 2000/665 , 2000/3028, 2004/587, 2005/2198 2006/736 and 2006/2214.
Paragraph 3A of Schedule 29 to the Finance Act 2004 was inserted by section 159 of the Finance Act 2006 (c. 25).
2004 c.12; paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006 (c.25).
1971 c. 56 to which there are amendments not relevant to this regulation.
2004 c. 12; paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006 c .25.