The Teachers' Pension Scheme Regulations 2014

CHAPTER 5 E+W Miscellaneous

Recovery of overpayment of benefits E+W

177.—(1) This regulation applies in respect of a financial year for which a decrease in prices is specified in the Treasury order.

(2) The scheme manager may recover any overpayment of benefits that occurs as a result of the application of the leaver index adjustment for that year.

Interest on late payment of benefits E+W

178.—(1) This regulation applies to a benefit except—

(a) a phased retirement pension or a lump sum payable under regulation 168 in place of part of that pension; or

(b) a total incapacity pension payable between the date on which the person to whom it is paid first engages in any other form of work as mentioned in regulation 118(2)(c) and the date on which the scheme manager is satisfied that the person continues to meet the total incapacity condition despite engaging in such work.

(2) Except as provided in paragraphs (8) and (9), where a benefit to which this regulation applies is not paid within one month after the due date, the scheme manager must pay interest on the amount unpaid at the Bank of England base rate compounded with 3-monthly rests from the due date to the date of payment.

(3) Where the benefit is a death grant, the due date is the day after the date on which the scheme manager became satisfied that payment may be made.

(4) Where the benefit is a lump sum under regulation 168, 171 or 174 or a grant other than a death grant, the due date is the day on which the benefit is payable.

(5) Where the benefit is a pension or annuity, the due date is—

(a) in the case of a payment under regulation 164(2) or 165(2), the initial payment date (as defined in regulation 163);

(b) in the case of a payment under regulation 164(5) or 165(5), the cessation date (as defined in regulation 163);

(c) in any other case, the date on which payment is to be made under regulation 164(4) or 165(4).

(6) In determining the due date in accordance with paragraphs (4) and (5), no account is to be taken of the requirement to make an application for the benefit under regulation 162.

(7) In this regulation “Bank of England base rate” means—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets, or

(b) where an order under section 19 of the Bank of England Act 1998 M1 is in force, any equivalent rate determined by the Treasury under that section.

(8) Where a payment to the scheme manager is received after the benefit to which it relates becomes payable, the scheme manager may determine that this regulation does not apply to the benefit until the payment is received.

(9) If paragraph (10) applies, the scheme manager may determine that this regulation does not apply to any benefit, either in respect of the whole period or any part of the period referred to in paragraph (10)(a).

(10) This paragraph applies if—

(a) a benefit is payable between the date specified under regulation 175(1) and the date on which the evidence required under that regulation is received by the scheme manager;

(b) that evidence was not provided by the date specified but was provided later; and

(c) it does not appear to the scheme manager that the delay in providing the evidence was due to circumstances outside the control of the person to whom the benefit is payable.

Marginal Citations

M1 1998 c.11.

Payment of benefits in certain cases E+W

179.—(1) Where a person (P) to whom a benefit is payable has not reached 18 or is incapable by reason of infirmity of mind or body of managing P's affairs, the scheme manager may—

(a) pay the benefit to any person having the care of P, or

(b) apply it as the scheme manager thinks fit for the benefit of P or P's dependants.

(2) Where on the death of a person (D) the total of any sums due to D and any sums payable to D's personal representatives under these Regulations does not exceed the amount specified in any order made under section 6 of the Administration of Estates (Small Payments) Act 1965 M2 which applies to D's death, the scheme manager may, without requiring the production of probate or other proof of title, pay the amount due—

(a) to D's personal representatives, or

(b) to the person, or to or among any one or more of any persons, appearing to the scheme manager to be beneficially entitled to D's estate.

Marginal Citations

M2 1965 c.32; the amount currently specified in S.I. 1984/539 is £5,000.

Benefits not assignable E+W

180.—(1) Where a benefit is payable to a person or a person has a right to a future benefit, the benefit or the right to the benefit must not be assigned in favour of the person's surviving spouse, surviving civil partner or dependant, and an agreement to this effect is void.

(2) Section 91 of PA 1995 (inalienability of occupational pensions) prevents assignment in other circumstances.

Forfeiture of benefits E+W

181.—(1) The scheme manager may, in relation to a benefit to which this regulation applies—

(a) defer or suspend payment of the benefit for so long as the scheme manager determines; or

(b) reduce the amount or rate of the benefit by so much and for so long as the scheme manager determines.

(2) This regulation applies in relation to—

(a) a benefit payable to a person convicted of an offence mentioned in paragraph (3) if the offence is committed before the benefit became payable;

(b) a retirement pension or pension credit retirement pension payable to a person convicted of an offence mentioned in paragraph (4) (or a lump sum payable to that person in place of part of a pension) if the offence is committed before the benefit became payable;

(c) a benefit payable to a person convicted of an offence mentioned in paragraph (5) if the person is the beneficiary of the deceased member.

(3) The offence is—

(a) an offence of treason; or

(b) one offence or more under the Official Secrets Acts 1911 to 1989 M3 [F1 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023,] for which the person has been sentenced on the same occasion to—

(i) one term of imprisonment of at least 10 years; or

(ii) 2 or more consecutive terms of imprisonment which add up to at least 10 years.

(4) The offence is an offence—

(a) committed in connection with service as a public servant; and

(b) certified by the Secretary of State as—

(i) gravely injurious to the interests of the State; or

(ii) liable to lead to serious loss of confidence in the public service.

(5) The offence is one of the following offences committed in relation to the death of a member (D)—

(a) the murder of D;

(b) the manslaughter of D;

(c) any other offence of which the unlawful killing of D is an element.

(6) The power in paragraph (1) may not be exercised in relation to the guaranteed minimum pension of a person unless—

(a) the person is convicted of an offence mentioned in paragraph (3), or

(b) in the case of a widow's, widower's or surviving civil partner's guaranteed minimum pension, the person by reference to whose employment the pension is payable is convicted of an offence mentioned in paragraph (3).

Textual Amendments

F1 Words in reg. 181(3)(b) inserted (20.12.2023) by The National Security Act 2023 (Consequential Amendments of Subordinate Legislation) Regulations 2023 (S.I. 2023/1267), reg. 1(2), Sch. para. 38

Marginal Citations

M3 1911 c.28, 1920 c.75, 1939 c.121, 1989 c.6.

Reduction of benefits: annual allowance and lifetime allowance charge E+W

182.—(1) This regulation applies to the situations set out in paragraphs (2) and (3), in relation to a benefit payable under these Regulations, and in paragraphs (4) and (5) “ the charge” refers to either of the charges set out in paragraphs (2) and (3).

(2) The lifetime allowance charge under section 214 of FA 2004 arises because a benefit becomes payable to a person and the person and the scheme manager are jointly and severally liable to the charge.

(3) The annual allowance charge under section 227 of FA 2004 arises in respect of a person who serves a notice under section [F2 237B] of that Act M4 .

(4) The scheme manager must pay the charge.

(5) The amount of the benefit must be reduced to reflect the amount of the charge in such manner as the scheme manager is to determine, after taking advice from the scheme actuary.

Textual Amendments

F2 Word in reg. 182(3) substituted (1.4.2015) by The Teachers Pension Scheme (Amendment) Regulations 2014 (S.I. 2014/2652), regs. 1, 15

Marginal Citations

M4 Section 238A was inserted by the Finance Act 2011 (c.11), Schedule 17.

General prohibition on unauthorised payments E+W

183.  Nothing in these Regulations requires or authorises the making of any payment which, if made, would be an unauthorised payment for the purpose of Part 4 of FA 2004 (see section 160(5) of that Act) unless the scheme manager determines otherwise (in the case of a particular payment).