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The Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014

Type Scottish-Statutory-Instrument

Publication 2014-11-05

Last updated 2025-08-01

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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Made: 5th November 2014

Laid before the Scottish Parliament: 7th November 2014

Coming into force in accordance with regulation 1(2)

In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.

PART 1 — Preliminary

Citation, extent and commencement

1

(1) These Regulations may be cited as the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014 and extend to Scotland.

(2) These Regulations come into force as follows—

(a) this Part, Part 2 and regulation 215 come into force on 1st January 2015;

(b) the remaining provisions come into force on 1st April 2015.

Establishment of Scottish Teachers’ Pension Scheme 2015

2

(1) These Regulations establish a scheme for the payment of pensions and other benefits to or in respect of teachers in Scotland.

(2) For the purpose of these Regulations, a person in an eligible employment is a teacher.

(3) This scheme is to be known as the Scottish Teachers’ Pension Scheme 2015.

Interpretation

3

In these Regulations—

“the Act” means the Public Service Pensions Act 2013;

“FA 2004” means the Finance Act 2004[^f00002];

“PA 1995” means the Pensions Act 1995[^f00003];

“PA 2008” means the Pensions Act 2008[^f00004];

“PIA 1971” means the Pensions (Increase) Act 1971[^f00005];

“PSA 1993” means the Pension Schemes Act 1993[^f00006];

“WRPA 1999” means the Welfare Reform and Pensions Act 1999[^f00007];

“the 2005 Regulations” means the Teachers’ Superannuation (Scotland) Regulations 2005[^f00008];

“accrued additional pension”—for the purpose of a retirement pension other than a phased retirement pension, has the meaning given in regulation 44;for the purpose of a phased retirement pension, has the meaning given in regulation 45;

“accrued club transfer earned pension” means the amount calculated as described in the definition of “club transfer value” in regulation 192 in relation to earned pension accrued under a club scheme;

“accrued earned pension”—for the purpose of a retirement pension other than a phased retirement pension, has the meaning given in regulation 44;for the purpose of a phased retirement pension, has the meaning given in regulation 45;

“accrued pension” means—accrued earned pension;accrued club transfer earned pension (if any); andaccrued additional pension (if any);

“accrued rights” does not include a right to benefits attributable (directly or indirectly) to a pension credit;

“active member” has the meaning given in section 124(1) of PA 1995;

“active member’s account” has the meaning given in regulation 48;

“actuarial”, in relation to a calculation or value, means determined by, or in accordance with tables or guidance prepared by, the scheme actuary;

“actuarial adjustment” has the meaning given in Chapter 7 of Part 4;

“additional pension” means—additional (self only) pension; oradditional (surviving adult) pension;

“additional pension account” has the meaning given in regulation 55;

“additional pension contributions” has the meaning given in Schedule 2;

“additional pension election” has the meaning given in Schedule 2;

“additional (self only) pension” means an additional pension payable to a pensioner member;

“additional (surviving adult) pension” means an additional pension payable to the member’s surviving adult after the member has died;

“adoption leave” has the meaning given in regulation 2(1) of the Paternity and Adoption Leave Regulations 2002[^f00010];

“age retirement pension” means a pension payable under Chapter 2 of Part 5;

“amount of credited pension” has the meaning given in regulation 77(3);

“annual amount of pensionable earnings”, in relation to any year, means the amount of pensionable earnings payable in that year;

“annual rate of pensionable earnings” means—for a member who is in pensionable service in relation to one full-time employment only, the member’s annual rate of pensionable earnings in that employment; andfor a member who is in pensionable service in relation to a part-time employment or more than one employment, the member’s full-time equivalent annual rate of pensionable earnings;

“balance of contributions” means the amount of contributions repayable under regulation 183;

“buy-out contributions” has the meaning given in Part 1 of Schedule 2;

“carer’s leave” means leave under section 80J of the Employment Rights Act 1996;

“cash transfer sum” has the meaning given in section 101AB of PSA 1993[^f00011];

“child pension” means a pension payable under regulation 146;

“closing date”, in relation to a transition member, has the meaning given in Schedule 3;

“club scheme” means a registered occupational pension scheme (other than a connected scheme) that has agreed to make and receive transfer value payments under the club transfer arrangements;

“club transfer” means a transfer to or from this scheme under the club transfer arrangements;

“club transfer arrangements” means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme and other registered occupational pension schemes for making and receiving transfer value payments;

“club transfer earned pension” means pension attributable to the receipt of a club transfer value;

“club transfer value”, in relation to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10;

“commutation amount” has the meaning given in regulation 72;

“continuity of service”, in relation to a transition member, has the meaning given in Schedule 3;

“contributions equivalent premium” means a premium under section 55(2) of PSA 1993;

“death grant” means a death grant under Part 6;

“deferred member” has the meaning given in section 124(1) of PA 1995;

“deferred member’s account” has the meaning given in Chapter 6 of Part 4;

“dual capacity member” has the meaning given in regulation 20;

“early retirement pension” means a pension payable under regulation 101;

“earned pension” means pension calculated by reference to a member’s pensionable earnings;

“eligible child” has the meaning given in regulation 134;

“eligible employment” has the meaning given in Part 3;

“employed” means employed under a contract of employment;

“employment” means employment under a contract of employment;

“entitlement day” has the meaning given in Part 5;

“an existing club scheme” means a registered occupational pension scheme which belonged to the transfer club on the scheme closing date;

“an existing scheme” means an existing scheme as defined in section 18(2) of the Act;

“the existing scheme” means the scheme set out in the 2005 Regulations;

“faster accrual contributions” has the meaning given in Schedule 2;

“faster accrual earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the faster accrual rate to the member’s pensionable earnings for that year;

“faster accrual election” has the meaning given in Schedule 2;

“financial year” means the 12 months ending with 31st March in any year;

“full protection member” has the meaning given in paragraph 6 of Schedule 3;

“full retirement additional pension” has the meaning given in regulation 67;

“full retirement earned pension” has the meaning given in regulation 66;

“full-time”, in relation to employment, has the meaning given in regulation 15(a);

“GMP age” means 65 in the case of a man or 60 in the case of a woman;

“guaranteed minimum” means a guaranteed minimum under section 14 of PSA 1993;

“guaranteed minimum pension” has the meaning given in section 8(2) of PSA 1993;

“ill-health pension” means a pension payable under regulation 107;

“ill-health retirement benefits” means—an ill-health pension; anda lump sum payable under regulation 162 in place of part of that pension;

“incapacitated” has the meaning given in Chapter 6 of Part 5;

“index adjustment” means—in relation to the opening balance of earned pension for any financial year (other than the opening balance of club transfer earned pension), the percentage increase or decrease specified in a Treasury order under section 9(2) of the Act in relation to the previous financial year, plus 1.6%;in relation to the opening balance of club transfer earned pension for any financial year, the adjustment that would apply to the opening balance of that amount of earned pension under the sending scheme for the previous financial year;

“last active financial year” means the financial year in which the last day of pensionable service falls;

“last day of pensionable service”, in relation to a member, means the day on which a member leaves all pensionable service;

“leaver index adjustment” has the meaning given in Part 4;

“leaver PIA index adjustment” has the meaning given in Part 4;

“maternity leave” means ordinary maternity leave or additional maternity leave within the meaning of the Maternity and Parental Leave etc. Regulations 1999[^f00012];

“member”, in relation to this scheme, means an active member, deferred member, pensioner member or pension credit member;

“non-pensionable family leave” means a period of adoption leave, maternity leave, parental leave , parental bereavement leave, paternity leave , additional paternity leave or carer’s leave during which the employee—does not receive any statutory pay; andis not paid a salary or is paid less than half the salary;

“non-pensionable sick leave” means a period of sick leave taken by an employee with the consent of the employer, during which the employee—does not receive any statutory pay; andis not paid a salary or is paid less than half the salary;

“normal minimum pension age” has the same meaning as in section 279(1) of FA 2004;

“normal pension age”—in relation to this scheme, is determined in accordance with section 10 of the Act; andin relation to the existing scheme, has the meaning given in that scheme;

“notional salary” has the meaning given in regulation 32;

“occupational pension scheme” has the meaning given in section 1 of PSA 1993;

“opening balance”, in relation to earned pension or transferred pension, has the meaning given in regulation 52;

“opening balance”, in relation to additional pension, has the meaning given in regulation 57;

“parental bereavement leave” has the meaning given in regulation 3 of the Parental Bereavement Leave Regulations 2020;

“parental leave” means leave within the meaning of Part 3 of the Maternity and Parental Leave etc. Regulations 1999;

“part-time”, in relation to employment, has the meaning given in regulation 15(b);

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002[^f00013];

“pay period” means a period in respect of which a member’s pensionable earnings are payable;

“pension credit” has the meaning given in Part 7;

“pension credit member” has the meaning given in Part 7;

“pension credit member’s account” has the meaning given in regulation 77;

“pension credit retirement pension” has the meaning given in Part 7;

“pension debit member” has the meaning given in Part 7;

“pensionable earnings” has the meaning given in Chapter 4 of Part 3;

“pensioner member” has the meaning given in section 124(1) of PA 1995;

“pensioner member’s account” has the meaning given in regulation 73;

“pension sharing order” means any provision or order specified in section 28 of WRPA 1999;

“period of permanent service”, in relation to service in the armed forces, has the meaning given in regulation 25;

“permitted maximum” means the amount determined in accordance with paragraph 2 of Schedule 29 to FA 2004;

“personal pension scheme” means a personal pension scheme as defined in section 1 of PSA 1993 that is a registered pension scheme;

“phased retirement application” has the meaning given in Chapter 3 of Part 5;

“phased retirement pension” means a pension payable under regulation 90;

“phased retirement proportion” means the proportion of accrued earned pension specified in a phased retirement application;

“PIA index adjustment”, in relation to the opening balance of additional pension for any financial year, means the amount by which the annual rate of a pension of an amount equal to the opening balance would have been increased in that year under PIA 1971 if—that pension were eligible to be so increased; andthe beginning date for that pension were the first day of the previous financial year;

“post-benefit service” has the meaning given in regulation 80(3);

“premature retirement pension” means a pension payable under regulation 98;

“prospective normal pension age”, in relation to a member’s prospective entitlement to benefits under this scheme, means the normal pension age that the scheme manager determines (by reference to Treasury directions made under section 11(2) of the Act) would apply in relation to those benefits;

“qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 79;

“registered”, in relation to a pension scheme, means registered under Chapter 2 of Part 4 of FA 2004;

“re-qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 80;

“retirement benefits” means—a retirement pension; anda lump sum payable under regulation 162 in place of part of that pension;

“retirement pension” means—an age retirement pension;a phased retirement pension;a premature retirement pension;an early retirement pension;an ill-health pension;a total incapacity pension;

“salary” means gross salary payable under an employment contract;

“this scheme” means the scheme established by these Regulations;

“scheme actuary” means the person appointed by the scheme manager for the time being to provide a consulting service on actuarial matters;

“scheme closing date” has the meaning given in Part 1 of Schedule 3;

“scheme manager” has the meaning given in Part 2;

“sending scheme” means a pension scheme to which an application is made for payment of a transfer value or club transfer value;

“shared parental leave” means leave by virtue of section 75E or 75G of the Employment Rights Act 1996;

“short-service serious-ill health grant” means a grant payable under Chapter 7 of Part 5;

“standard accrual rate”, in relation to a member’s pensionable earnings, means 1/57th;

“standard contributions” means contributions payable under regulation 179(1) for standard earned pension;

“standard contributions rate” has the meaning given in regulation 179(2);

“standard earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the standard accrual rate to the member’s pensionable earnings for that year;

“standard increase”, in relation to pensionable earnings, has the meaning given in Chapter 4 of Part 3;

“standard rate”, in relation to interest, means the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury;

“standard reduction” has the meaning given in Chapter 7 of Part 4;

“statutory pay” means—statutory adoption pay, statutory maternity pay statutory parental bereavement pay or statutory paternity pay within the meaning of the Social Security Contributions and Benefits Act 1992[^f00014]; oradditional statutory paternity pay within the meaning given in regulation 2(1) of the Additional Statutory Paternity Pay (General) Regulations 2010[^f00015];

“surviving adult” has the meaning given in regulation 131;

“surviving adult pension” means a pension payable under regulation 139;

“surviving civil partner” means a person who, at the time of a member’s death, was in a civil partnership[^f00016] with the member;

“surviving nominated beneficiary” has the meaning given in regulation 133;

“surviving nominated partner” has the meaning given in regulation 132;

“surviving spouse” means a person who, at the time of a member’s death, was married to the member;

“survivor’s pension” has the meaning given in Part 6;

“tapered protection member” has the meaning given in paragraph 9 of Schedule 3;

“total incapacity benefits” means—a total incapacity pension; anda lump sum payable under regulation 162 in place of part of that pension;

“total incapacity pension” means a pension payable under regulation 113;

“transfer club” means the club of registered occupational pension schemes which make and receive transfer value payments under the club transfer arrangements;

“transfer day” means the day on which a pension sharing order takes effect;

“transfer payment” means a transfer value payment or a cash transfer sum made or received by this scheme in relation to a member;

“transfer value” in relation to accrued rights to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10;

“transfer value payment” means—the payment of a transfer value or club transfer value under Part 10; orthe payment of a transfer value under Chapter 4 of Part 4 of PSA 1993;

“transferred pension” means pension attributable to the receipt of a transfer value payment;

“transition member” has the meaning given in Schedule 3;

“the Treasury order”, in relation to a given period, means the Treasury order made under section 9 (2) of the Act that specifies a percentage increase or decrease in prices in relation to that period;

“TUPE transfer” means a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006[^f00017].

Connected schemes

4

In these Regulations, “connected scheme” means another statutory pension scheme that is connected, within the meaning of section 4(6) of the Act, with this scheme.

Leaving pensionable service

5

(1) For the purpose of these Regulations, a person (P) leaves all pensionable service—

(a) if P is in pensionable service in relation to one employment only, when P leaves pensionable service in relation to that employment; or

(b) if P is in pensionable service in relation to more than one employment, when P leaves pensionable service in relation to all those employments.

(2) For the purpose of these Regulations, P leaves pensionable service in relation to an eligible employment when—

(a) P begins a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment;

(b) P opts out of this scheme in relation to that employment; or

Leaving eligible employment

6

(1) For the purpose of these Regulations, a person (P) leaves all eligible employment—

(a) if P is in one eligible employment only, when P leaves that employment; or

(b) if P is in more than one eligible employment, when P leaves all those employments.

(2) For the purpose of these Regulations—

(a) P leaves an eligible employment when P ends a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment and does not return to that employment; but

(b) P does not leave an eligible employment unless at least one complete day has passed since P’s last day in that employment.

PART 2 — Governance

Scheme manager

7

(1) The Scottish Ministers are the scheme manager for this scheme and any connected scheme.

(2) The scheme manager is responsible for managing this scheme and any connected scheme.

(3) The scheme manager may delegate any functions under these Regulations, including this power to delegate.

Establishment of pension board

8

(1) A pension board (“the Scottish Teachers’ Pension Scheme Pension Board”) is established.

(2) The Scottish Teachers’ Pension Scheme Pension Board is responsible for assisting the scheme manager in relation to securing compliance with—

(a) these Regulations;

(b) any other legislation relating to the governance and administration of this scheme and any connected scheme; and

(3) The scheme manager is to determine the process by which the Scottish Teachers’ Pension Scheme Pension Board discharges its functions.

Membership of pension board

9

(1) Subject to paragraph (2), the scheme manager may determine—

(a) the membership of the Scottish Teachers’ Pension Scheme Pension Board;

(b) the manner in which the Scottish Teachers’ Pension Scheme Pension Board members may be appointed and removed; and

(2) The Scottish Teachers’ Pension Scheme Pension Board is to include equal numbers of members representing the employers[^f00018] and members.

Establishment of scheme advisory board

10

(1) A scheme advisory board (“the Scottish Teachers’ Pension Scheme Advisory Board”) is established.

(2) The Scottish Teachers’ Pension Scheme Advisory Board is responsible for providing advice to the scheme manager, at the scheme manager’s request, on the desirability of changes to this scheme.

(3) The scheme manager is to determine the process by which the Scottish Teachers’ Pension Scheme Advisory Board discharges its functions.

Membership of scheme advisory board

11

The scheme manager may determine—

(a) the membership of the Scottish Teachers’ Pension Scheme Advisory Board;

(b) the manner in which members of the Scottish Teachers’ Pension Scheme Advisory Board may be appointed and removed; and

Conflict of interest

12

(1) The scheme manager must be satisfied that—

(a) any person to be appointed as a member of the Scottish Teachers’ Pension Scheme Pension Board does not have a conflict of interest within the meaning of section 5(5) of the Act;

(b) any person to be appointed as a member of the Scottish Teachers’ Pension Scheme Advisory Board does not have a conflict of interest within the meaning of section 7(5) of the Act.

(2) The scheme manager must be satisfied from time to time that none of the members of the Scottish Teachers’ Pension Scheme Pension Board or of the Scottish Teachers’ Pension Scheme Advisory Board has a conflict of interest.

(3) A person who is to be appointed as a member of a relevant Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of a relevant Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (2).

PART 3 — Scheme membership

CHAPTER 1 — Interpretation

Meaning of “an eligible employment”

13

An eligible employment is an employment mentioned in Part 2 of Schedule 1.

Meaning of “P’s automatic enrolment date” and “P’s automatic re-enrolment date”

14

For the purpose of this Part—

(a) “P’s automatic enrolment date” is the date on which section 3 of PA 2008 applies to a person (P) in relation to P’s eligible employment; and

(b) “P’s automatic re-enrolment date” is a date determined under regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010[^f00019] in relation to P’s eligible employment.

Meaning of “full-time” and “part-time” employment

15

For the purpose of these Regulations—

(a) an employment is “full-time” if the contract of employment describes it as full-time (whether in those terms or otherwise); and

(b) an employment is “part-time” if the contract of employment describes it as part-time (whether in those terms or otherwise).

Meaning of “irregular employment”

16

(1) For the purpose of these Regulations, an employment is an irregular employment if the contract of employment requires the employee—

(a) to be available for work for the period specified in the contract of employment; and

(b) to undertake and be remunerated for work during that period only when so required by the employer.

(2) A person in pensionable service in relation to an irregular employment is in pensionable service for the period specified in the contract of employment.

Meaning of “opt-out notice” and “opt-in notice”

17

For the purpose of these Regulations—

(a) “opt-out notice”, in relation to service in an eligible employment, means a notice under regulation 27 or 30; and

(b) “opt–in notice”, in relation to service in an eligible employment, means a notice under regulation 28 or 31.

CHAPTER 2 — Membership

Eligibility for active membership

18

(1) A person (P) is eligible to be an active member of this scheme if—

(a) P is in an eligible employment; and

(b) P has reached the age of 16 and has not reached the age of 75.

(2) P is not eligible to be an active member of this scheme if—

(a) P is employed in an accepted school in which P has a financial interest;

(b) P is a full protection member of the existing scheme;

(d) but for an election made under regulation B7 of the 2005 Regulations, P would fall within sub-paragraph (b) or (c).

(3) In this regulation—

“financial interest” does not include the right to receive a salary; and

“accepted school” has the meaning given in paragraph 2 of Schedule 1.

More than one employment

19

A person may be an active member of this scheme in relation to more than one employment.

Dual capacity membership

20

A person is a dual capacity member of this scheme if the person is a member in 2 or more of the following capacities—

(a) an active member;

(b) a deferred member;

(2) In determining whether a person who is an active member is also a pensioner member, the fact that the person is an active member and the person’s rights in that capacity are to be disregarded.

(3) In determining whether a person who is an active member or a pensioner member is also a deferred member, the fact that the person is an active member or a pensioner member and the person’s rights in that capacity are to be disregarded.

Payment of retirement benefits to dual capacity members

21

Retirement benefits under this scheme are payable to a dual capacity member as if the member were 2 or more members and the amounts payable are determined accordingly[^f00020].

CHAPTER 3 — Pensionable service

SECTION 1 — General provisions

Service not pensionable unless member is entitled to pay

22

(1) A person (P) in an eligible employment is not in pensionable service in relation to that employment unless P is entitled to be paid—

(a) P’s salary in respect of that employment;

(b) if P is on adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave, ... paternity leave or carer’s leave—

(i) at least half P’s salary in respect of that employment; or

(ii) statutory pay; or

(2) P is not in pensionable service in relation to an employment during a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave from that employment.

Service not pensionable unless members’ contributions are paid

23

(1) The scheme manager may decide that a period of service in respect of which a member’s contributions are not paid is not a period of pensionable service if—

(a) the scheme manager has sent the member a demand under regulation 188 (“the demand”) in respect of those contributions; and

(b) within 3 years after the date of the demand, the member has not paid the whole of the amount and interest stated in the demand.

(2) The period of service is not a period of pensionable service if the scheme manager—

(a) gives the member written notice to that effect; and

(b) repays the member any amount paid in part satisfaction of the demand.

SECTION 2 — Service in Her Majesty’s armed forces

Pensionable service – armed forces service

24

For the purpose of these Regulations, a person is in pensionable service during any period of permanent service in the armed forces in respect of which an election under regulation 25 has effect or is taken to have effect.

Election for armed forces service to be pensionable

25

(1) This regulation applies in relation to an active member (P) who is called out, or recalled, for permanent service in Her Majesty’s armed forces under a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996[^f00021].

(2) P may by written notice to the scheme manager elect to treat the period of permanent service as pensionable service.

(3) For the purpose of these Regulations, P leaves all pensionable service from the beginning of the period of permanent service if P does not make an election within 6 months after the period of permanent service ends.

(4) If P makes an election, the scheme manager must give P a written notice setting out the contributions payable in respect of the period of permanent service.

(5) The election has effect from the beginning of the period of permanent service if—

(a) P pays the contributions by lump sum within 3 months after receiving the notice; or

(b) P pays contributions by monthly payments in accordance with regulation 181 in respect of the whole period.

(6) If P only pays contributions in respect of part of the period of permanent service, the election has effect only in respect of that part of the period.

(7) In this regulation, a period of permanent service begins when P is called out or recalled and ends on whichever is the earlier of—

(a) the day on which P’s permanent service ends; or

(b) the day on which P begins to accrue benefits under the Armed Forces Pension Scheme or any other occupational pension scheme in respect of P’s permanent service.

(8) If P dies while in permanent service and P has not made an election—

(a) P is taken to have made an election;

(b) any contributions payable are to be deducted from any benefits payable under these Regulations; and

SECTION 3 — Pensionable service on or after automatic enrolment date

Pensionable service on or after automatic enrolment date

26

(1) This Section applies in relation to a person (P) who—

(a) is eligible to be an active member of this scheme; and

(b) is in an eligible employment on or after P’s automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice under this Section does not have effect in relation to service in that employment.

Opting out of this scheme after automatic enrolment date

27

(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise this option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt-out notice has effect as follows—

(a) if the scheme manager receives the opt-out notice within 3 months after P enters the employment, from the first day of the employment;

(b) if sub-paragraph (a) does not apply and the scheme manager receives the opt-out notice within 3 months after P’s automatic enrolment date for the employment, from P’s automatic enrolment date;

(c) if neither sub-paragraph (a) nor (b) applies and the scheme manager receives the opt-out notice within 3 months after P’s automatic re-enrolment date, from P’s automatic re-enrolment date;

(d) otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt–out notice ceases to have effect from the earlier of—

(a) the date on which a subsequent opt-in notice has effect in relation to service in that employment; and

(b) P’s automatic enrolment date for that employment.

Opting into this scheme after automatic enrolment date

28

(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if the employment is mentioned in Part 2 of Schedule 1, and P has previously opted out of this scheme in relation to service in that employment.

(4) For an employment mentioned in Part 2 of Schedule 1, an opt-in notice has effect—

(a) if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment, from the first day of the employment; or

(b) if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

SECTION 4 — Pensionable service before automatic enrolment date

Pensionable service before automatic enrolment date

29

(1) This Section applies in relation to a person (P) who—

(a) is eligible to be an active member of this scheme; and

(b) is in an eligible employment before P’s automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice under this Section does not have effect in relation to service in that employment.

Opting out of this scheme before automatic enrolment date

30

(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt–out notice has effect—

(a) if the scheme manager receives the opt-out notice no later than 3 months after P enters the employment, from the first day of the employment; or

(b) otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt–out notice ceases to have effect from the earlier of—

(a) the date on which a subsequent opt-in notice has effect; and

(b) P’s automatic enrolment date for that employment.

Opting into this scheme before automatic enrolment date

31

(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice has effect.

(4) For an employment mentioned in Part 2 of Schedule 1, an opt-in notice has effect—

(a) if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment, from the first day of the employment; or

(b) if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

CHAPTER 4 — Pensionable earnings

Interpretation

32

In this Chapter—

“notional pensionable earnings” means the amount by which a member’s pensionable earnings are reduced during—a period of sick leave (other than a period of non-pensionable sick leave); ora period of adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave , paternity leave or carer’s leave (other than a period of non-pensionable family leave);

“notional salary”, in relation to a period of permanent service in respect of which an election under regulation 24 has effect or is taken to have effect, means P’s pensionable earnings for the pay period immediately before the period of permanent service began, increased by—the amount (if any) of any standard increase applied in relation to P’s eligible employment during P’s period of permanent service; andthe amount (if any) by which those pensionable earnings together with any standard increase would have been increased if they had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the day after the day on which the period of permanent service began;

“residential accommodation” means residential accommodation provided to a person (P) in connection with P’s employment;

“residential benefits in kind” means—any residential accommodation provided to a person (P);any heat, lighting or water provided free in respect of residential accommodation; andany council tax paid on P’s behalf in respect of residential accommodation;

“salary sacrifice arrangement” means an arrangement specified by the scheme manager under which P gives up the right to receive part of P’s salary in return for P’s employer agreeing to provide P with benefits in kind as specified by the scheme manager; and

“standard increase” means an increase in pensionable earnings that—is applied generally to employees in P’s position or by P’s employer; andis unrelated to any change in P’s duties or hours of work or otherwise to the particular circumstances of P’s case.

Pensionable earnings

33

(1) This regulation applies to an active member (P).

(2) P’s pensionable earnings for any pay period are the sum of the following amounts paid in that pay period to P by P’s employer in respect of P’s pensionable service—

(a) all salary and allowances paid for the performance of P’s contractual duties;

(b) the amount of any payment in respect of overtime;

(c) any salary or statutory pay paid while P is on sick leave, carer’s leave, maternity leave, paternity leave, parental leave, shared parental leave , parental bereavement leave or adoption leave;

(d) an amount equal to any part of P’s salary which P has given up the right to receive under a salary sacrifice arrangement;

(e) the amount of any payment made to P by way of bonus under a pay settlement that applies to all employees (or all employees of a particular class or description) at the institution where P is employed.

(3) P’s pensionable earnings do not include any amounts mentioned in regulation 34.

Amounts not forming part of pensionable earnings

34

(1) This regulation applies to any active member (P).

(2) P’s pensionable earnings do not include any of the following amounts paid to P by P’s employer—

(a) any benefit in kind, or the money value of such a benefit, excluding—

(i) any residential benefits in kind; or

(ii) a benefit in kind under a salary sacrifice arrangement;

(b) any bonus other than a payment under regulation 33(2)(e));

(d) any amount paid for the performance of duties that are not carried out in the course of P’s pensionable service;

(e) any payment in consideration for the loss of, or the agreement to give up the right to, paid leave under P’s contract of employment;

(f) any payment in lieu of notice to terminate P’s contract of employment.

Application for residential benefits in kind to form part of pensionable earnings

35

(1) This regulation applies to a person (P) who receives residential benefits in kind.

(2) P’s employer (E) may apply in writing to the scheme manager asking for the money value of those residential benefits in kind to form part of P’s pensionable earnings.

(3) The application must be made within 3 months after the later of—

(a) the first day of P’s employment; or

(b) the first day on which residential accommodation is provided to P.

(4) The application must be accompanied by a statement certifying that E will—

(a) review the value of the residential benefits in kind at the times mentioned in paragraph (5); and

(b) inform the scheme manager in writing of the results of each review.

(5) E must review the money value of the residential benefits in kind as follows—

(a) the first review must be carried out within 2 years after the later of—

(i) the first day of P’s employment; or

(ii) the first day on which residential accommodation is provided to P; and

(b) each subsequent review must be carried out within 2 years after the previous review.

Money value of residential benefits in kind to form part of pensionable earnings

36

(1) The scheme manager, if satisfied that it is reasonable for residential accommodation to be provided to a person (P) by P’s employer (E) in connection with P’s employment, may decide that the money value of residential benefits in kind forms part of P’s pensionable earnings from—

(a) the first day of P’s employment; or

(b) if later, the first day on which residential accommodation is provided to P.

(2) If the money value of the residential accommodation exceeds 1/6th of the aggregate of the amounts mentioned in regulation 33(2)(a) to (d), the excess does not form part of P’s pensionable earnings.

(3) The scheme manager may revoke a decision that the money value of residential benefits in kind forms part of P’s pensionable earnings if E does not—

(a) carry out the reviews in accordance with regulation 35; or

(b) inform the scheme manager of the results of those reviews within a reasonable time.

(4) If paragraph (3) applies, the scheme manager must—

(a) calculate the amount attributable to the overpayment of contributions (“the amount”); and

(b) repay that amount to E together with interest applied in accordance with paragraph (6).

(5) The amount is the difference between—

(a) the sum of the amount of members’ contributions, any faster accrual contributions and any buy-out contributions E deducted from P’s pensionable earnings[^f00022] during the period in which the residential benefits in kind formed part of P’s pensionable earnings; and

(b) the sum of the amount of members’ contributions, any faster accrual contributions and any buy-out contributions which E would have deducted from P’s pensionable earnings during that period had the residential benefits in kind not formed part of P’s pensionable earnings.

(6) Interest is applied at the rate of 3% each year, compounded with yearly rests—

(a) from the first day of the financial year following the year in which the contributions were first deducted;

(b) until the day on which the amount attributable to the overpayment of contributions is repaid.

Pensionable earnings for the purpose of accruing benefits

37

For the purpose of calculating a member’s (P’s) amount of earned pension for a pay period—

(a) if P’s pensionable earnings are reduced during sick leave, carer’s leave, adoption leave, maternity leave, parental leave, shared parental leave , parental bereavement leave, or paternity leave, P’s pensionable earnings for that period include P’s notional pensionable earnings; and

(b) if an election under regulation 25 has effect or is taken to have effect for that period, P’s pensionable earnings for that period are an amount equal to P’s notional salary.

CHAPTER 5 — Annual rate of pensionable earnings for multiple employments

Multiple regular full-time or part-time employments

38

(1) This regulation applies if—

(a) a person (P) is in pensionable service in relation to more than one employment; and

(b) each employment is a regular full-time or part-time employment.

(2) P’s annual rate of pensionable earnings is found by—

(a) calculating the D value for each employment; and

(b) adding all the D values.

(3) The D value for an employment is FT x C.

(4) FT means the annual rate of pensionable earnings for that employment.

(5) C means—

$The A value B$

where—

(a) for a full-time employment, the A value is 1;

(b) for a part-time employment, the A value is—

$PT FT;$

(d) B is the sum of all the A values.

Multiple employments including at least one irregular employment

39

(1) This regulation applies if—

(a) a person (P) is in pensionable service in relation to more than one employment; and

(b) at least one employment is an irregular employment.

(2) P’s full-time equivalent annual rate of pensionable earnings is the higher of—

(a) Figure 1; and

(b) either—

(i) Figure 2, if P is in more than one regular employment; or

(ii) Figure 3, if P is only in one regular employment.

(3) In paragraph (2)—

(a) Figure 1 is obtained by dividing the sum of the annual rate of each of P’s employments by the total number of P’s employments;

(b) Figure 2 is the result of the calculation set out in regulation 38 for P’s regular employments, disregarding P’s irregular employment or employments;

(d) if Figure 1 and either Figure 2 or Figure 3 are the same amount, P’s annual rate of pensionable earnings is that amount.

PART 4 — Pension accounts

CHAPTER 1 — Interpretation

Interpretation

40

In this Part—

“the leaving year” means the financial year in which the relevant last day falls;

“the relevant last day” means— for a member who has made a phased retirement application, the day before the entitlement day for a phased retirement pension; and otherwise, the last day of pensionable service.

Pensionable service

41

For the purpose of this Part, a person (P) who re-enters pensionable service after a gap in service not exceeding 5 years is taken to be in pensionable service during the gap.

Meaning of “leaver index adjustment”

42

(1) The leaver index adjustment for an amount of accrued earned pension other than an amount of accrued club transfer earned pension is an amount calculated as follows—

Meaning of “leaver PIA index adjustment”

43

(1) The leaver PIA index adjustment for an amount of accrued additional pension is calculated in accordance with paragraph (2).

(2) The leaver PIA index adjustment is the amount by which the annual rate of a pension of an amount equal to the amount of accrued additional pension would have been increased in the leaving year under PIA 1971 if—

(a) that pension were eligible to be so increased; and

(b) the beginning date for that pension were the day after the relevant last day.

CHAPTER 2 — Calculation of accrued pension

Calculation of amount of accrued pension for purposes of retirement other than phased retirement

44

(1) For the purpose of a full retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) For the purpose of a deferred member’s account, the amount of accrued earned pension is calculated in accordance with paragraph (3).

(3) The amount of accrued earned pension is the sum of the following amounts specified in the active member’s account as at the end of the last day of pensionable service—

(a) the opening balance of standard earned pension for the last active financial year and the index adjustment for that opening balance;

(b) the amount of standard earned pension (if any) for the last active financial year;

(c) the opening balance of faster accrual earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(d) the amount of faster accrual earned pension (if any) for the last active financial year;

(e) the opening balance of club transfer earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(f) the amount of club transfer earned pension (if any) for the last active financial year;

(g) the opening balance of transferred pension (if any) for the last active financial year and the index adjustment for that opening balance; and

(h) the amount of transferred pension for the last active financial year.

(4) The amount of accrued additional pension is—

(a) the sum of the following amounts specified in the additional pension account as at the end of the last day of pensionable service—

(i) the opening balance of additional pension for the last active financial year; and

(ii) the PIA index adjustment (if any) for that opening balance; or

(b) an amount determined by the scheme manager under Part 2 of Schedule 2.

(5) In these Regulations, “the last active financial year” means the financial year in which the last day of pensionable service falls.

Calculation of amount of accrued pension for purpose of phased retirement

45

(1) For the purpose of a phased retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) The amount of accrued earned pension is the phased retirement proportion of the sum of the following amounts specified in the active member’s account as at the end of the relevant last day—

(a) the opening balance of standard earned pension for the leaving year and the index adjustment for that opening balance;

(b) the amount of standard earned pension for the leaving year;

(c) the opening balance of faster accrual earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(d) the amount of faster accrual earned pension (if any) for the leaving year;

(e) the opening balance of club transfer earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(f) the amount of club transfer earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(g) the opening balance of transferred pension (if any) for the leaving year and the index adjustment for that opening balance; and

(h) the amount of transferred pension for the leaving year.

(3) If a member claims payment of additional pension under regulation 91, the amount of accrued additional pension is—

(a) the sum of the following amounts specified in the additional pension account as at the end of the relevant last day—

(i) the opening balance of additional pension for the leaving year; and

(ii) the PIA index adjustment (if any) for that opening balance; or

(b) an amount determined by the scheme manager under Part 2 of Schedule 2.

CHAPTER 3 — Pension accounts: general

Establishment of pension accounts: general

46

(1) The scheme manager must establish and maintain one or more pension accounts for each member of this scheme in accordance with this Part.

(2) A pension account—

(a) may be kept in any form the scheme manager considers appropriate; and

(b) must specify the details required by these Regulations.

(3) References in these Regulations to any amount specified in a pension account are references to the amount that is required by these Regulations to be so specified and not, if different, the amount actually so specified.

Closure of pension accounts on transfer out or repayment of balance of contributions

47

All pension accounts relating to a member (P) (other than a pension credit member’s account) must be closed if—

(a) a transfer payment is made in respect of P’s accrued rights under this scheme; or

(b) P is repaid the balance of contributions under regulation 183.

CHAPTER 4 — Active member’s account

Establishment of active member’s account

48

(1) A pension account must be established for each active member (“the active member’s account”) from the first day of pensionable service under this scheme.

(2) If a person is an active member in relation to more than one employment, only one active member’s account is to be established.

(3) The active member’s account must remain open until the member leaves all pensionable service under this scheme.

Receipt of transfer values

49

(1) This regulation applies if a transfer value is received from another pension scheme (other than a connected scheme) in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member’s account must be credited with the amount of transferred pension the member is entitled to count under Part 10.

Receipt of club transfer values

50

(1) This regulation applies if a club transfer value is received from another club scheme in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member’s account must be credited with an amount of club transfer earned pension the member is entitled to under Part 10.

Account to specify amount of pension for a financial year

51

(1) This regulation applies in relation to every financial year in which an active member’s account is open.

(2) The active member’s account must specify—

(a) the amount of standard earned pension (if any) for the financial year;

(b) the amount of faster accrual earned pension (if any) for the financial year; and

(d) the amount of transferred pension (if any) for the financial year.

(3) The amount is—

(a) for standard earned pension, 1/57th of the member’s pensionable earnings for that year;

(b) for faster accrual earned pension, the fraction of the member’s pensionable earnings for that year specified in a faster accrual election;

(c) for club transfer earned pension, the sum of all club transfer values received in relation to the member in that year; and

(d) for transferred pension, the amount which a member is entitled to count under Part 10 for that year.

Account to specify opening balance and index adjustment

52

(1) This regulation applies in relation to every financial year in which an active member’s account is open other than the financial year in which the account is established.

(2) The active member’s account must specify—

(a) the opening balance of standard earned pension for the financial year and the index adjustment for that opening balance;

(b) the opening balance of faster accrual earned pension (if any) for the financial year and the index adjustment for that opening balance; and

(c) the opening balance of transferred pension (if any) for the financial year and the index adjustment for that opening balance.

(3) The opening balance in relation to a description of pension—

(a) for the financial year immediately following the financial year in which the active member’s account is established is the amount of that pension for the previous financial year as at the end of the previous financial year;

(b) for any subsequent financial year, is the sum of the following amounts—

(i) the opening balance of that pension for the previous financial year and the index adjustment for that opening balance; and

(ii) the amount of that pension for the previous financial year as at the end of the previous financial year.

(4) In this regulation, “a description of pension” means—

(a) standard earned pension;

(b) faster accrual earned pension (if any);

(d) transferred pension (if any).

Ill-health pension ceases to be payable

53

If an ill-health pension ceases to be payable to a person (P) under regulation 111 or 115 and P re-enters pensionable service—

(a) the pensioner member’s account must be closed;

(b) the active member’s account must be re-established and credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Phased retirement pension ceases to be payable

54

If a phased retirement pension ceases to be payable under regulation 94 and P re-enters pensionable service—

(a) the pensioner member’s account must be closed; and

(b) the active member’s account must be adjusted by increasing the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 5 — Additional pension account

Establishment of additional pension account

55

(1) An additional pension account must be established for each active member (P) in respect of whom an additional pension election is made.

(2) If P is an active member in relation to more than one employment, only one additional pension account is to be opened.

(3) The additional pension account must remain open until—

(a) an additional pension is paid in respect of P;

(b) a transfer value payment is made or a cash transfer sum is paid in respect of P’s rights to the accrued additional pension; or

(4) Part 2 of Schedule 2 has effect in relation to the making of an additional pension election.

Account to specify amount of additional pension

56

(1) This regulation applies in relation to every financial year in which an additional pension election is made.

(2) The additional pension account must specify in relation to any additional pension election made in that financial year an amount equal to the annual rate of additional (self only) pension specified in the additional pension election.

Account to specify opening balance and PIA index adjustment

57

(1) This regulation applies in relation to every financial year in which an additional pension account is open other than the financial year in which the account is established.

(2) The account must specify the opening balance of additional pension for the financial year and the PIA index adjustment for that opening balance.

(3) The opening balance of additional pension—

(a) for the financial year immediately following the financial year in which the additional pension account is established, means the amount of additional pension specified in the account as at the end of the previous financial year; and

(b) for any subsequent financial year, means the sum of the following amounts—

(i) the opening balance of additional pension for the previous financial year;

(ii) the PIA index adjustment (if any) for that opening balance; and

(iii) the amount of additional pension for the previous financial year.

Ill-health pension ceases to be payable

58

(1) This regulation applies if—

(a) an additional pension is payable with an ill-health pension; and

(b) the ill-health pension ceases to be payable under regulation 111 or 115.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

Phased retirement pension ceases to be payable

59

(1) This regulation applies if—

(a) an additional pension is payable with a phased retirement pension; and

(b) the phased retirement pension ceases to be payable regulation 94.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

CHAPTER 6 — Deferred member’s account

Establishment of deferred member’s account

60

When an active member leaves all pensionable service and becomes a deferred member—

(a) the active member’s account must be closed; and

(b) a pension account for the deferred member must be established (“deferred member’s account”).

Account to specify amount of accrued earned pension and leaver index adjustment

61

The deferred member’s account must specify—

(a) the amount of accrued earned pension; and

(b) the leaver index adjustment for that amount.

Account closed after break not exceeding 5 years or after service under another public service scheme

62

(1) If a deferred member re-enters pensionable service after a gap in service not exceeding 5 years—

(a) the deferred member’s account must be closed; and

(b) the active member’s account must be re-established.

(2) The active member’s account—

(a) must specify the amount of accrued earned pension as at the beginning of the gap in service; and

(b) must be adjusted as if the member had continued as an active member during the gap in service but had received no pensionable earnings.

(3) Paragraphs (4) and (5) apply if—

(a) a deferred member (P) re-enters pensionable service under this scheme after a gap in service of more than 5 years;

(b) the gap in service included a period of service under another public service scheme; and

(4) When P re-enters pensionable service under this scheme—

(a) the deferred member’s account must be closed; and

(b) the active member’s account must be re-established.

(5) For the financial year in which the active member’s account is re-established, the opening balance for each description of pension must be equal to the amount of accrued pension specified in the deferred member’s account in relation to that description of pension as at the end of the gap in service.

Account remains open after disqualifying break of more than 5 years

63

(1) If a deferred member re-enters pensionable service (“the further service”) following a disqualifying break in service—

(a) the deferred member’s account remains open; and

(b) an active member’s account must be established in respect of the further service.

(2) In this regulation, “a disqualifying break in service” means a period of more than 5 years which does not include any period of service under another public service pensions scheme.

Account established after ill-health pension ceases to be payable

64

If an ill-health pension ceases to be payable to a person (P) under regulation 111 or 115 and P does not re-enter pensionable service—

(a) a deferred member’s account must be established; and

(b) that account must be credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Account established after phased retirement pension ceases to be payable

65

If a phased retirement pension ceases to be payable under regulation 94 and P does not re-enter pensionable service—

(a) a deferred member’s account must be established; and

(b) the scheme manager must increase the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 7 — Pensioner members’ accounts

SECTION 5 — Interpretation

Meaning of “full retirement earned pension”

66

(1) The amount of full retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under regulation 44(3); and

(b) the leaver index adjustment for that amount.

(2) In calculating the amount of full retirement earned pension, the leaver index adjustment is not applied to the amount of accrued earned pension if a transfer value payment is made or a cash transfer sum is paid in respect of the member’s rights to that accrued pension before the end of the last active financial year.

Meaning of “full retirement additional pension”

67

(1) The amount of full retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under regulation 44(4); and

(b) the leaver PIA index adjustment for that amount.

(2) In calculating the amount of full retirement additional pension, the leaver PIA index adjustment is not applied to the amount of accrued additional pension if a transfer value payment is made or a cash transfer sum is paid in respect of the member’s rights to that accrued pension before the end of the last active financial year.

Meaning of “phased retirement earned pension”

68

The amount of phased retirement earned pension is the sum of—

(a) the amount of accrued earned pension calculated under regulation 45(2); and

(b) the leaver index adjustment for that amount.

Meaning of “phased retirement additional pension”

69

The amount of phased retirement additional pension is the sum of—

(a) the amount of accrued additional pension calculated under regulation 45(3); and

(b) the leaver PIA index adjustment for that amount.

Meaning of “standard reduction”

70

(1) The standard reduction is 3% and applies in relation to a maximum of 3 years from age 65 to normal pension age.

(2) The standard reduction is applied when calculating the annual rate of pension payable to a member (P) who—

(a) was an active member immediately before the entitlement day for a phased retirement pension, premature retirement pension or early retirement pension; and

(b) on the entitlement day for that pension—

(i) has reached normal minimum pension age; but

(ii) has not reached normal pension age.

(3) If a retirement pension becomes payable to P on or after the date on which P reaches 65, the standard reduction applies in relation to a proportion, determined by the scheme manager, of the time left until P reaches normal pension age.

Meaning of “actuarial adjustment”

71

In these Regulations, “actuarial adjustment” means the actuarial adjustment that is applied when calculating the annual rate of pension payable—

(a) to a member who, on the entitlement day for a pension other than an age retirement pension or an ill-health pension, has not reached normal pension age; or

(b) to an active member who becomes a pensioner member after reaching normal pension age.

Meaning of “commutation amount”

72

In these Regulations, “commutation amount”, in relation to any pension, means the amount of pension exchanged for a lump sum under regulation 162, 165 or 168.

SECTION 6 — Establishment of pensioner members’ accounts

Pension accounts for active or deferred members who become pensioner members

73

(1) When an active member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a) the active member’s account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member’s account”).

(2) When a deferred member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a) the deferred member’s account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member’s account”).

(3) The pensioner member’s account must specify—

(a) the amount of full retirement earned pension payable to the member, and for that amount—

(i) the standard reduction (if any);

(ii) the actuarial adjustment (if any); and

(iii) the commutation amount (if any); and

(b) the amount of full retirement additional pension payable to the member, and for that amount—

(i) the actuarial adjustment (if any); and

(ii) the commutation amount (if any).

Pension accounts for phased retirement members

74

(1) On the entitlement day for a phased retirement pension—

(a) a pensioner member’s account must be established for the member;

(b) if the member is an active member, the active member’s account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(c) if the member is a deferred member, the deferred member’s account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(d) after the adjustment, Chapters 2 and 3 apply in relation to the member as if the amount of accrued earned pension specified in the active member’s account or deferred member’s account had always been reduced by the phased retirement proportion; and

(e) if the member has applied under regulation 91 to receive additional pension with the phased retirement earned pension, the additional pension account must be closed.

(2) The pensioner member’s account must specify—

(a) the amount of phased retirement earned pension payable to the member, and for that amount—

(i) the standard reduction (if any);

(ii) the actuarial adjustment (if any); and

(iii) the commutation amount (if any); and

(b) the amount of phased retirement additional pension payable to the member, and for that amount—

(i) the actuarial adjustment (if any); and

(ii) the commutation amount (if any).

SECTION 7 — Closure of accounts

Ill-health pension ceases to be payable

75

If an ill-health pension ceases to be payable under regulation 111 or 115, the pensioner member’s account must be closed.

Phased retirement pension ceases to be payable

76

If a phased retirement pension ceases to be payable under regulation 94, the pensioner member’s account must be closed.

CHAPTER 8 — Pension accounts for pension credit members

Pension accounts for pension credit members

77

(1) A pension account must be established for each pension credit member (“the pension credit member’s account”).

(2) The pension credit member’s account must specify the amount of credited pension and for that amount—

(a) the actuarial adjustment (if any); and

(b) the commutation amount (if any).

(3) In these Regulations, “amount of credited pension” means an amount equal to the pension credit calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to WRPA 1999.

Separate account for each capacity of membership

78

(1) If a pension credit member is also an active member, deferred member or pensioner member, the pension credit member’s account is in addition to the other account or accounts to be established under this Part in respect of the member in the other capacity.

(2) If a pension credit member has rights under this scheme which are attributable, directly or indirectly, to pension credit derived from the rights of more than one pension debit member of this scheme, a separate account is to be established under this regulation in respect of the pension credit attributable to the rights of each such pension debit member.

PART 5 — Retirement benefits for teachers

CHAPTER 1 — Interpretation

Qualifying for retirement benefits

79

(1) A person (P) is qualified for retirement benefits in respect of a period of pensionable service if—

(a) P has at least 2 years’ qualifying service; or

(b) after P enters pensionable service, a transfer value payment or cash transfer sum is accepted under Part 10 (transfers) in respect of P’s rights accrued under a personal pension scheme.

(2) In these Regulations, a period of qualifying service is the total of the following—

(a) any period of pensionable service under this scheme (other than a period of post-benefit service);

(b) if after P enters pensionable service under this scheme a transfer value payment or cash transfer sum has been accepted under Part 10 in respect of rights accrued under another occupational pension scheme, a period equal to the person’s period as an active member in that scheme;

(c) for a transition member with continuity of service, any period of pensionable service under the existing scheme before the closing date.

(3) Any pensionable service in respect of which a person’s rights under this scheme or the existing scheme are extinguished is not qualifying service.

Re-qualifying for retirement benefits in respect of post-benefit service

80

(1) A person (P) is re-qualified for retirement benefits under these Regulations if—

(a) P has at least 12 months’ post-benefit qualifying service; or

(b) a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to P during P’s post-benefit service.

(2) In these Regulations, a period of post-benefit qualifying service is the total of the following—

(a) any period of post-benefit service under this scheme;

(b) for a transition member in respect of post-benefit service, any period of post-benefit service under the existing scheme before the member’s transition date;

(c) if after P enters a period of post-benefit service a transfer payment has been accepted in respect of rights accrued under another occupational pension scheme, a period equal to the person’s period of pensionable service under that scheme.

(3) For the purpose of these Regulations, P enters a period of “post-benefit service” when—

(a) P re-enters pensionable service—

(i) on or after reaching normal pension age; and

(ii) after a retirement pension (other than a phased retirement pension) or a short-service serious ill-health grant becomes payable; or

(b) P re-enters pensionable service—

(i) before reaching normal pension age; and

(ii) after a retirement pension (other than an ill health pension or phased retirement pension) or a short-service serious ill-health grant becomes payable.

(4) For the purpose of these Regulations, P does not enter a period of “post-benefit service” if P re-enters pensionable service—

(a) before reaching normal pension age; and

(b) after an ill-health pension or phased retirement pension becomes payable.

(5) Any period of service in respect of which P’s rights under this scheme or the existing scheme are extinguished is not included in a period of post-benefit service[^f00023].

Payment of retirement benefits for post-benefit service

81

For the purpose of calculating benefits in respect of a period of post-benefit service, P is taken to enter pensionable service for the first time when P enters the period of post-benefit service.

CHAPTER 2 — Age retirement

Meaning of “entitlement day” (age retirement pension)

82

(1) The entitlement day for an age retirement pension is as follows.

(2) If a person (P) is qualified for retirement benefits, the entitlement day is the earliest of the following—

(a) if P is in pensionable service on the day on which P reaches normal pension age—

(i) the day after P leaves all pensionable service; or

(ii) the day on which P reaches 75; and

(b) if P is not in pensionable service on the day on which P reaches normal pension age, the day on which P reaches normal pension age.

(3) If P is re-qualified for retirement benefits, the entitlement day is the earliest of the following—

(a) if P is in pensionable service on the date of application, the day after P leaves all pensionable service;

(b) if P has left all pensionable service on the date of application, such day as P specifies in the application, which must be no earlier than 6 weeks after the date of application;

(4) In this regulation, “date of application” means the day on which P applies for the payment of an age retirement pension.

Entitlement to age retirement pension

83

(1) A member (P) is entitled to payment of an age retirement pension from the entitlement day if—

(a) P has reached normal pension age;

(b) P is qualified or re-qualified for retirement benefits;

(d) P has applied under regulation 159 for the payment of an age retirement pension.

(2) An age retirement pension is payable for life.

Annual rate of age retirement pension

84

(1) This regulation applies if an active member or a deferred member (P) becomes entitled to payment of an age retirement pension.

(2) The annual rate of age retirement pension payable to P is found by—

(a) taking the amount of full retirement earned pension specified in P’s pensioner member’s account;

(b) applying the actuarial adjustment (if any) specified in that account in relation to that amount;

(d) adding the amount of full retirement additional pension (if any) specified in that account; and

(e) subtracting the commutation amount (if any) specified in that account in relation to the sum of those amounts.

Arrears of pension payable to deferred member who becomes pensioner member after reaching normal pension age

85

A deferred member (P) who becomes a pensioner member after reaching normal pension age is entitled to be paid the total of the following—

(a) the amount found by multiplying the sum of the amount of full retirement earned pension and the amount of full retirement additional pension (if any) specified in P’s pensioner member’s account by the period (in years and fractions of a year) for which P was a deferred member after reaching normal pension age; and

(b) interest payable on that amount in accordance with regulation 172.

CHAPTER 3 — Phased retirement

Interpretation of Chapter

86

(1) In this Chapter—

“average annual rate”, in relation to pensionable earnings in a 6 month period, means the amount of pensionable earnings in that period multiplied by 2;

“increased annual rate”, in relation to pensionable earnings, has the meaning given in regulation 94;

“new employment” has the meaning given in regulation 88(2);

“new employment condition” has the meaning given in regulation 88;

“pensionable earnings”, for a person not in an eligible employment, means the amount which would be the person’s pensionable earnings if the employment were eligible employment;

“phased retirement application” means an application under regulation 159 for payment of a phased retirement pension;

“previous employment” has the meaning given in regulation 88(2);

“reduced annual rate”, in relation to pensionable earnings, means the annual rate of a person’s pensionable earnings following the reduction referred to in regulation 87;

“reduced annual rate condition” has the meaning given in regulation 87.

(2) When calculating the reduced annual rate or increased annual rate of a person’s pensionable earnings, any standard increase[^f00024] which takes effect on or after the entitlement day must be ignored.

The reduced annual rate condition

87

A person (P) meets the reduced annual rate condition if—

(a) P is in one or more eligible employments;

(b) the terms of employment change and as a result there is a reduction in the annual amount of P’s pensionable earnings; and

(c) the reduced annual rate is not more than 80% of the average annual rate of P’s pensionable earnings for the 6 months of pensionable service immediately before the reduction.

The new employment condition

88

(1) A person (P) meets the new employment condition if—

(a) P leaves all eligible employment;

(b) within 6 months after leaving all eligible employment, P enters a new employment; and

(c) on the day after the entitlement day referred to in regulation 89 the reduced annual rate of P’s pensionable earnings in the new employment does not exceed 80% of the average annual rate of P’s pensionable earnings for the last 6 months of the previous employment.

(2) In this regulation—

“a new employment” means— one or more new eligible employments; one or more employments with an employer mentioned in any paragraph in Part 2 of Schedule 1 that is not an eligible employment where P’s normal duties in the employment include providing education or services ancillary to education (other than administrative services); or one or more new eligible employments and one or more employments mentioned in paragraph (b); and

“previous employment” means one or more previous eligible employments.

Meaning of “entitlement day” (phased retirement pension)

89

The entitlement day for a phased retirement pension is—

(a) if a person (P) meets the reduced annual rate condition, the day on which the reduced annual rate takes effect; or

(b) if P meets the new employment condition, the day on which P enters a new employment.

Entitlement to phased retirement pension

90

(1) A person (P) is entitled to payment of a phased retirement earned pension from the entitlement day if—

(a) P has reached normal minimum pension age but has not reached 75;

(b) P is qualified or re-qualified for retirement benefits;

(d) P has made a phased retirement application; and

(e) P has not applied under regulation 159 for payment of any other retirement pension.

(2) P is entitled to payment of a phased retirement additional pension from the entitlement day if P has applied under regulation 91 to receive an additional pension with the phased retirement earned pension.

(3) Subject to regulation 94, a phased retirement pension is payable for life.

Phased retirement applications

91

(1) For the purpose of regulation 90, a person (P) must make a phased retirement application within 3 months after the entitlement day.

(2) The application must—

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