PART 5 Retirement benefits for teachers

CHAPTER 8Short-service annuity for post-benefit service

Meaning of “entitlement day” (short-service annuity)123.

The entitlement day for a short-service annuity is the date specified in an application under regulation 162 for payment of the annuity, which must be no earlier than 6 weeks after the day on which the application is made.

Entitlement to short-service annuity124.

(1)

A person (P) is entitled to payment from the entitlement day of a short-service annuity in respect of post-benefit service if—

(a)

P enters a period of post-benefit service;

(b)

P is not re-qualified for retirement benefits in respect of that service;

(c)

P leaves all eligible employment; and

(d)

P has applied under regulation 162 for payment of the annuity.

(2)

A short-service annuity is payable for life.

Annual rate of short-service annuity125.

The annual rate of a short-service annuity is the actuarial equivalent of the sum of—

(a)

all of the members' contributions, faster accrual contributions (if any) and additional pension contributions (if any) in respect of a period of post-benefit service paid up to the date of receipt of the application under regulation 162; and

(b)

interest to the date of payment at 3% per year, compounded with yearly rests on those contributions from the first day of the financial year following that in which they were paid.