The Teachers’ Pension Scheme (Amendment) Regulations 2015

Insertion of paragraphs 38A and 38B into Schedule 3

10.  After paragraph 38 of Schedule 3, insert—

“Transition member who has not reached normal pension age under the existing scheme

38A.— (1) This paragraph applies to a transition member (P) whilst P—

(a) is entitled to an ill-health pension under this scheme; and

(b) has not reached normal pension age under the existing scheme.

(2) Whilst this paragraph applies—

(a) no pension is payable to P under the existing scheme before P’s normal pension age in that scheme; and

(b) a pension is payable to P under this scheme, determined in accordance with sub-paragraph (3).

(3) Whilst this paragraph applies, the following are payable to P—

(a) a pension, the annual rate of which is the sum of—

(i) P’s annual rate of ill-health pension calculated under regulation 113 of these Regulations,

(ii) the annual rate of retirement pension that would, if P was entitled to payment of an ill-health pension under the existing scheme, be payable to P under the existing scheme regulations, excluding any total incapacity pension payable under regulation 65 of the existing scheme regulations, and adjusted following any election by P under regulation 116 of those Regulations, and

(iii) the annual rate of total incapacity pension, if any, payable under regulation 116 of these Regulations;

(b) (i) any lump sum payable to P under regulation 168 of these Regulations, and

(ii) the amount of any lump sum that would have been payable to P had P been entitled to payment of an ill-health pension under the existing scheme, including any lump sum payable under regulation 116 of the existing scheme regulations, if P makes such an election.

(4) P’s entitlement to the pension payable under sub-paragraph (3)(a)(ii) is subject to the same conditions, and ceases to be payable in the same circumstances, as the pension which P would have received had P been entitled to payment of an ill-health pension under the existing scheme, in accordance with the existing scheme regulations.

(5) If a transfer of benefits takes place from the existing scheme prior to the existing scheme normal pension age, P’s entitlement to the pension payable under sub-paragraph (3)(a)(ii) comes to an end.

(6) If this paragraph applies, P may not apply under the existing scheme for retirement benefits under Case E as provided in Schedule 7 of the existing scheme regulations.

Transition member in receipt of an ill-health pension who has reached normal pension age under the existing scheme

38B.— (1) This paragraph applies to a transition member (P) in receipt of a pension in accordance with paragraph 38A.

(2) When P reaches normal pension age under the existing scheme, any benefit which is payable under paragraph 38A in respect of P’s service in the existing scheme ceases to be payable under this scheme, and any age pension due to P under the existing scheme becomes payable in accordance with the existing scheme regulations.

(3) In calculating the annual rate of pension payable under the existing scheme for the purposes of sub-paragraph (2), the following are taken into account—

(a) any lump sums paid out, under the existing scheme or this scheme, including by an election under regulation 116 or by commutation under regulation 118 or regulation 119 of the existing scheme regulations;

(b) any transfer payment made to another scheme before P reached normal pension age under the existing scheme.

(4) Before the payments in sub-paragraph (3), if any, are taken into account, they must be increased by the amount by which the annual rate of a retirement pension of that amount would have been increased under PIA 1971 if—

(a) that pension was eligible to be so increased, and

(b) the entitlement day for that pension was the date P’s pension became payable under regulation 38A.”.