The Teachers’ Pension Scheme Regulations 2014

Annual rate of total incapacity pension

117.—(1) The annual rate of total incapacity pension payable to a person (P) is—

where—

• AR means P’s annual rate of pensionable earnings—

  (i)

  as at the last day of pensionable service; or

  (ii)

  if P applies for a total incapacity pension while P is in stepped down employment, as at the day before P’s annual rate of pensionable earnings was first reduced under paragraph (2);

• PS means P’s prospective service (in years and fractions of a year);

• “P’s prospective service” means the period beginning with the day after the entitlement day and ending on the day on which P would have reached prospective normal pension age.

(2) P is in stepped down employment if—

(a) P is in an eligible employment;

(b) the terms of that employment are changed wholly or partly because of P’s ill-health; and

(c) as a result of the changed terms of employment, P’s annual rate of pensionable earnings is reduced.

(3) For the purpose of paragraph (b) of the definition of AR, P’s annual rate of pensionable earnings is increased by the amount (if any) by which it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971—

(a) beginning, and first qualifying for increases under that Act, on the day after the day on which P’s annual rate of pensionable earnings is reduced; and

(b) ending on the day on which the scheme manager receives P’s application for the total incapacity pension.