The Teachers' Pensions Regulations 2010

PART 12 E+W+S Finance

Teachers' Pension Budgeting and Valuation Account E+W+S

125.—(1) An account in a form approved by the Treasury is to be prepared by the Secretary of State for every financial year starting with the financial year ending 31st March 2011.

(2) The account shall be open to examination by the Comptroller and Auditor General.

Receipts etc. to be credited E+W+S

126.—(1) Employees' and employers' contributions received during the financial year are to be credited to the account.

(2) Employees' contributions comprise—

(a) all contributions payable under regulations 12(13)(c), 18, 19, Schedule 4, Schedule 5, under Schedules 4 and 5 of TPR 1997 and under paragraph 36 of Schedule 10 to TPR 1997,

(b) the contributions referred to in regulation 28(3)(c),

(c) so much of any additional contributions payable under regulation C9 of TPR 1997 as would have been payable under regulation 18 if pensionable employment had continued,

(d) all amounts payable under regulation 25 and under regulations C16(5) to (7) and C17 of TPR 1997 (return of repaid contributions).

(3) Employers' contributions comprise—

(a) the contributions payable under regulation 27 and under regulation G6 of TPR 1997,

(b) so much of any additional contributions payable under regulation C9 of TPR 1997 as would have been payable under regulation 27 if pensionable employment had continued.

(4) There are also to be credited to the account—

(a) the closing balance in the account for the preceding financial year,

(b) all transfer values accepted during the financial year,

(c) all contributions equivalent premiums refunded, or recovered under section 61 of PSA 1993, during the financial year,

(d) any interest and other payments under these Regulations received during the financial year, and

(e) the notional investment income for the financial year on the balance in the account.

(5) For the purposes of paragraph (4)(e), the notional investment income for each financial year is to be determined by the scheme actuary and derived using a percentage return as specified from time to time by the Treasury.

Payments to be debited E+W+S

127.  There are to be debited to the account all sums paid during the financial year by way of—

(a) benefits under Parts 7 to 10,

(b) payments under paragraph 12 of Schedule 10 to TPR 1997 (equivalent pension benefits) (which continues to have effect by virtue of paragraph 23 of Schedule 13),

(c) repayment of contributions (including interest) under regulation 22 and under regulation C14 of TPR 1997 (which continues to have effect by virtue of paragraph 13 of Schedule 13),

(d) cash equivalents and transfer values,

(e) contributions equivalent premiums, and

(f) increases payable under PIA 1971.

Actuarial review E+W+S

F1 128.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 128 omitted (1.4.2013) by virtue of The Teachers’ Pensions (Amendment) Regulations 2013 (S.I. 2013/275), regs. 1, 4 (with reg. 7(2))

Meaning of “standard rate” of interest E+W+S

129.—(1) Where, under any provision of these regulations, interest is required to be paid at the standard rate, the interest is calculated in accordance with this Regulation.

(2) During any financial year [F2 which ends on or before 31st March 2011] the rate of interest is ((RI-RE)/RE x 100)+3.5 % per year, where—

• RI is the retail prices index for September in the previous financial year, and

• RE is the retail prices index for September in the financial year before the one referred to in the definition of RI

but if RI is lower than RE the rate of interest is 3.5% per year.

[F3 (2A) From 1st April 2011, the rate of interest is the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury.]

(3) Interest is compounded with monthly rests.

Textual Amendments

F2 Words in reg. 129(2) inserted (1.4.2011) by The Teachers’ Pensions (Miscellaneous Amendments) Regulations 2011 (S.I. 2011/614), reg. 1, Sch. 2 para. 10(2)

F3 Reg. 129(2A) inserted (1.4.2011) by The Teachers’ Pensions (Miscellaneous Amendments) Regulations 2011 (S.I. 2011/614), reg. 1, Sch. 2 para. 10(3)