The Teachers’ Pensions etc. (Reform Amendments) Regulations 2006

Regulation 2(1)

SCHEDULE 1 Amendments of the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994

Interpretation

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”.

Provision for lump sum death benefit

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.”.

Variation and cancellation of elections

3.  In regulation 6(1)(a) omit “subject to regulation 8(3)”.

Retirement and dependants’ pensions

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”.

Pension sharing on divorce

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”.

Payment by Secretary of State

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 (1) 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.”.

(1)

Paragraph 3A of Schedule 29 to the Finance Act 2004 was inserted by section 159 of the Finance Act 2006 (c. 25).