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

Enhancement of retirement benefits in case of incapacity

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—

“Total incapacity benefit where application received on or after 6th January 2007

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.”.