The Teachers' Superannuation (Scotland) Regulations 1993

• (a) that ended before 1st April 1972; or

• (b) for which contributions have been paid under regulations C3, C5 or C8 (past and current added years),

• or attributable to the receipt, before 6th April 1988, of a transfer value.

• (2) Subject to sub-paragraph (3) and paragraph 10, a woman in relation to whom the election conditions are satisfied may elect to pay family benefit contributions in respect of the whole or a part of any reckonable service attributable to a period that–

• (a) began after 31st March 1972 and ended before 6th April 1988; and

• (b) would otherwise not count in calculating any pension becoming payable to her widower.

• (3) Where an election is made in respect of a part only of any service, the part must consist of one or more whole years.

• (4) The election conditions are that she is married, and either -

• (a) is in pensionable employment; or

• (b) ceased after 5th April 1988 and before 1st January 1990 to be so employed and immediately became entitled to payment of retiring allowances.

10

• (1) An election under paragraph 9(1) or (2)–

• (a) must be made by giving written notice to the Secretary of State within the period specified in sub-paragraphs (2) to (4);

• (b) must specify the period in respect of which it is made;

• (c) must state whether the contributions are to be paid by Method A (periodical payments) or by Method B (lump sum);

• (d) if the contributions are to be paid by Method A, must specify the rate at which they are to be paid, which must comply with paragraph 13(2) and (3); (e) has effect from the date on which the notice is received by the Secretary of State; and

• (f) except as provided in paragraph 13(4), is irrevocable.

• (2) The period within which an election may be made is one of 6 months beginning on the relevant date.

• (3) Where paragraph 9(4)(b) applies, the relevant date is 1st July 1989; in any other case, subject to sub-paragraph (4), the relevant date is the first date after 30th June 1989 on which the election conditions are satisfied.

• (4) If, during the period of 6 months beginning on that first date, the election conditions cease to be satisfied, the relevant date becomes the first date on which they are again satisfied.

• (5) A woman who could make an election under paragraph 9(2) may only make one under paragraph 9(1) if, and at the same time as, she elects under paragraph 9(2) to pay family benefit contributions in respect of the whole of the reckonable service there mentioned.

• (6) Where elections are made both under paragraph 9(1) and under paragraph 9(2), they must specify the same method of payment.

• (7) Payment may not in any case be made by Method A if–

• (a) the payment period would be less than one year; or

• (b) the woman’s pensionable employment is part-time; or

• (c) she is not in pensionable employment.

11

• (1) Subject to sub-paragraph (2), where payment is to be made by Method A the payment period is to be ascertained from, or where the period in respect of which the election was made is not an exact number of years by extrapolation from, Table 5 below.

	Rate of contributions	Rate of contributions
Period in years for which contributions are to be paid in respect of each year of period specified in election	Election under paragraph 9(1)	Election under paragraph 9(2)
1%	1.45	0.42
2%	0.69	0.20
3%	0.46	0.14
4%	0.33	0.10
5percnt;	0.27	0.08
6%	0.22	0.07
7%	0.18	0.06
8%	0.16	0.05
9%	0.14	0.04

• (2) If the period ascertained in accordance with sub-paragraph (1) (“the Table period ”) does not end with the last day of a month, the payment period ends with the last day of the month in which the Table period ends.

• (3) Where payment is to be made by Method B the lump sum payable, which must be payable within 3 months after its amount is notified by the Secretary of State, is–

• (a) for each year of service in respect of which an election was made under paragraph 9(1), 1.25% and

• (b) for each year of service in respect of which an election was made under paragraph 9(2), 0.4%,

• of the appropriate amount, and pro ratafor any period of less than a year.

• (4) The appropriate amount is–

• (a) where the woman was in pensionable employment when the election took effect, the annual rate of her salary at that time; and

• (b) in any other case, her pensionable salary.

12

• (1) The widower of a woman who–

• (a) died during the period beginning on 6th April 1988 and ending with 31st December 1989 without having made an election under paragraph 9; and

• (b) either was in pensionable employment when she died or had ceased during that period to be so employed,

• may make a corresponding election under this paragraph.

• (2) A married woman who–

• (a) ceased to be in pensionable employment during the period mentioned in sub-paragraph (1); and

• (b) on ceasing to be so employed did not immediately become entitled to payment of retiring allowances,

• may make a corresponding election under this paragraph if the conditions in sub-paragraph (3) are satisfied.

• (3) The conditions are that–

• (a) she did not again enter pensionable employment; and (b) she has become entitled to payment of retiring allowances.

• (4) Where a woman to whom sub-paragraphs (2) and (3) would otherwise have applied dies before becoming entitled to payment of retiring allowances, her widower may make a corresponding election under this paragraph.

• (5) An election under this paragraph–

• (a) must be made by giving written notice to the Secretary of State within the appropriate period;

• (b) must specify the period in respect of which it is made; and

• (c) is to be treated as an election to make payment by Method B.

• (6) The appropriate period is–

• (a) where sub-paragraph (1) applies, the period beginning on 1st July 1989 and ending with 31st December 1989;

• (b) where sub-paragraphs (2) and (3) apply, 6 months from the date on which she became entitled to payment of retiring allowances; and (c) where sub-paragraph (4) applies, 3 months from the date of her death.

PART III — COMMON PROVISIONS

13

• (1) This paragraph applies where–

• (a) an election is made under paragraph 2 or 3; or

• (b) an election is made under paragraph 9 to pay family benefit contributions by Method A.

• (2) The rate at which family benefit contributions are to be paid, and any higher rate substituted by an election under sub-paragraph (4), must be an integral percentage, not in any case exceeding 9, of the person’s salary.

• (3) If the person is paying additional contributions to purchase past added years under regulation C3 or C5, or towards the provision of a pension otherwise than under these Regulations, sub-paragraph (2) has effect with the substitution for “9 ” of the number obtained by deducting from 9 the percentage rate of those contributions.

• (4) The election may at any time be varied by an election to pay the family benefit contributions at a specified higher rate.

• (5) An election under sub-paragraph (4) must be made by giving written notice to the Secretary of State, and has effect from the first day of the month following that in which the notice is received by him.

• (6) The payment period begins on the first day of the month following that in which it is notified to the person by the Secretary of State.

• (7) If after the start of the payment period there is an interval of more than 30 days during which the person is not in pensionable employment or paying additional contributions to purchase current added years under regulation C8–

• (a) the interval is not part of the payment period; but

• (b) the end of the payment period is postponed by the length of the interval.

• (8) If after the start of the payment period the person becomes employed part-time in pensionable employment, the length of the payment period is increased by so much of the period of part-time employment as does not count as reckonable service.

• (9) If the original election is varied by one made under sub-paragraph (4) (“the further election ”),the length of the payment period is reduced to

$$A-BC×D,$ where– A is what the length of the payment period would have been if the increased rate had been specified in the original election, B is the rate specified in the original election, C is the increased rate, and D is the period from the start of the payment period to the effective date of the further election.$

• (10) The contributions–

• (a) are payable from the start of the payment period;

• (b) continue to be payable while the person is in pensionable employment or paying additional contributions to purchase current added years under regulation C8; and

• (c) cease to be payable if he dies or becomes entitled to retiring allowances before the end of the payment period.

14

• (1) This paragraph–

• (a) applies where family benefit contributions to which paragraph 13 applies cease to be payable before the end of the payment period; and

• (b) has effect subject to paragraph 15.

• (2) Where the person paying the contributions dies before attaining the age of 60, or (whether or not he later re-enters employment in reckonable service) becomes entitled to payment of retiring allowances by virtue of regulation E5(e) (incapacity)–

• (a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made; but

• (b) if part of the payment period falls after his 60th birthday, the actuarial equivalent of the contributions that would have been payable during that part is to be deducted from the appropriate terminal sum.

• (3) Where the person dies, or becomes entitled to payment of retiring allowances, after attaining the age of 60–

• (a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made; but

• (b) there is to be deducted from the appropriate terminal sum an amount of

$$(A×B100)×C,$ where– A is the annual rate at which his salary was last payable, B is the rate at which the contributions were last payable, and C is the multiplier ascertained from, or if the remainder of the payment period is not an exact number of years by extrapolation from, Table 6 below.$

Years in remainder of payment period	Multiplier
1	0.990
2	1.961
3	2.913
4	3.846
5	4.760
6	5.657
7	6.536
8	7.398
9	8.244
10	9.072
11	9.884
12	10.681
13	11.461
14	12.227
15	12.977
16	13.713
17	14.434
18	15.141
19	15.835
20	16.514

• (4) Where the person becomes entitled to payment of retiring allowances by virtue of regulation E5–

• (a) he may, by giving written notice to the Secretary of State within 3 months after the end of his pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during the remainder of the payment period;

• (b) if he does so elect, on payment of the lump sum contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made; and

• (c) if he does not so elect, contributions are to be treated as having been paid in respect of

$$D×EF,$ where– D is the period in respect of which the original election was made, E is the period during which contributions were paid, and F is the payment period.$

15

Where–

• (a) a deduction has fallen to be made under paragraph 14(2) or (3) or an election has been made under paragraph 14(4); and

• (b) there is then a retrospective increase in the person’s salary; and

• (c) the consequent recalculation of the amount of the deduction or lump sum and of the appropriate terminal sum results in a greater increase in the amount of the deduction or lump sum than in the terminal sum,

• the teacher, or as the case may be his widow or widower or a beneficiary nominated under regulation E22, may notify the Secretary of State in writing that the amount of the deduction made is not to be increased.

PART IV — FAMILY BENEFITS AND WAR SERVICE

16

• (1) In this Part “war service period ” means a period which a teacher is entitled to count as reckonable service by virtue of regulation D5 or D6 and references to a teacher’s being notified are to his being notified that he is so entitled.

• (2) This Part does not apply–

• (a) if the teacher’s family benefit service does not include all periods counting as reckonable service otherwise than by virtue of regulation D5 or D6; or

• (b) if his war service period counts by virtue of regulation D5 and he died before the date from which war service provisions had effect in the public service pension scheme in pursuance of which the transfer value referred to in regulation D5(1)(c) was paid.

17

• (1) Subject to paragraph 20, a teacher who was notified before becoming entitled to payment of retiring allowances may, by giving written notice to the Secretary of State within 3 months after the relevant date, elect that his war service period is to be included in his family benefit service.

• (2) The relevant date–

• (a) if he applied for payment of retiring allowances before becoming entitled to payment of them and before being notified, is the date on which he was notified; and

• (b) in any other case, is the date on which he applied for payment of retiring allowances.

18

Subject to paragraph 20, a teacher who was notified after becoming entitled to payment of retiring allowances may, by giving written notice to the Secretary of State within 6 months after the date on which he was notified, elect that his war service period is to be included in his family benefit service.

19

• (1) If an election is made under paragraph 17 or 18, an additional contribution equal to the actuarial value of the unpaid contributions relating to the relevant war service period at 1st April 1978 becomes payable.

• (2) In the case of an election under paragraph 17 the additional contribution is to be deducted from the appropriate terminal sum.

• (3) In the case of an election under paragraph 18 the additional contribution may, without prejudice to any other method of recovery, be deducted from any death gratuity under regulation E19.

20

• (1) If the teacher–

• (a) died before 1st June 1983; or

• (b) has died before being notified; or

• (c) has died after being notified and without having made an election under paragraph 17 or 18 but while still entitled to do so,

• paragraphs 17 to 19 do not apply but 2/3rds of his war service period is included in his family benefit service.

• (2) If the teacher died before 1st June 1983, this paragraph does not apply so as to reduce the amount of any family benefit.

SCHEDULE 7 — INCOMPLETE PAYMENT OF ADDITIONAL CONTRIBUTIONS

1

• (1) This paragraph applies where a teacher paying additional contributions for a past period in accordance with Part I of Schedule 4–

• (a) ceases to be in full-time pensionable employment before the end of the period during which they were to be paid (“the contribution period ”); and

• (b) does not again enter such employment within one month and before becoming entitled to payment of retiring allowances,

• and no lump sum payment is made under paragraph 5, 6 or 8 of Schedule 4.

• (2) In this paragraph, subject to sub-paragraph (5), A is the past period and B is the contribution period.

• (3) Subject to sub-paragraphs (4) and (5), the teacher is entitled to count as reckonable service–

$$A×CB$ where C is so much of the contribution period as had elapsed when the pensionable employment ended.$

• (4) Subject to sub-paragraph (5), if when the pensionable employment ended the teacher was incapacitated and had not attained the age of 60, he is entitled to count as reckonable service–

• (a) where the contribution period would not have expired before he attained that age–

$$A×DB$ where D is the period from the start of the contribution period to his 60th birthday; or$

• (b) in any other case, A.

• (5) If the teacher had elected under paragraph 4 of Schedule 4 to shorten the contribution period–

• (a) he is in any case entitled to count as reckonable service–

$$A×FE$ where E is the original contribution period and F is so much of it as had elapsed by the effective date of the election; and$

• (b) sub-paragraphs (3) and (4) have effect with the substitution -

• (i) as A, of

$A-(A×F)( E );$

• (ii) as B, of the shortened contribution period;

• (iii) as C, of so much of the shortened contribution period as had elapsed when the pensionable employment ended; and

• (iv) as D, of the period from the effective date of the election to his 60th birthday.

2

• (1) This paragraph applies where a lump sum equal to the retirement lump sum that would otherwise have been receivable is paid under paragraph 6 or 8 of Schedule 4.

• (2) Where this paragraph applies, the person is entitled to count as reckonable service–

• (a) the period he would have been entitled to count under paragraph 1 if the lump sum had not been paid; and

• (b) a period of

$$ABC-3×D80years$ where– A is the retirement lump sum, B is the lump sum that would have been payable under paragraph 5 of Schedule 4, C is so much of the past period as he is not entitled to count under (a) above, and D is his pensionable salary.$

3

• (1) This paragraph applies where a teacher paying additional contributions for a past period in accordance with Part III of Schedule 4–

• (a) ceases to be in full-time pensionable employment before the end of the contribution period; and

• (b) does not again enter such employment within one month and before becoming entitled to payment of retiring allowances,

• and no lump sum payment is made under paragraph 15 of Schedule 4.

• (2) Subject to sub-paragraph (4), the teacher is entitled to count as reckonable service–

$$A×CB$ where– A is the past period, B is the contribution period, and C is so much of the contribution period as had elapsed when the pensionable employment ended.$

• (3) This sub-paragraph applies where–

• (a) when the pensionable employment ended the teacher was incapacitated and had not attained the age of 60; or

• (b) he died while in the pensionable employment; or

• (c) he dies within 3 months after the end of the pensionable employment without having made an election under paragraph 15 of Schedule 4.

• (4) Where sub-paragraph (3) applies–

• (a) if when the pensionable employment ended at least one year of the contribution period had elapsed, the teacher is entitled to count the whole of the past period as reckonable service; and

• (b) in any other case, he is not entitled to count any period as reckonable service and the additional contributions paid are to be refunded.

4

• (1) This paragraph applies where a teacher is continuing to pay contributions to purchase past added years in accordance with paragraph 4 of Schedule 5 and–

• (a) before the end of the contribution period they cease to be payable; and

• (b) he does not make a lump sum payment under paragraph 5 of Schedule 5.

• (2) Subject to sub-paragraph (3), the person is entitled to count as reckonable service–

$$A×BC$ where– A is the period in respect of which the contributions were being paid, B is the number of instalments he has paid, and C is the number of instalments he would have paid if the contributions had not ceased to be payable.$

• (3) Where the contributions cease to be payable by reason of the teacher–

• (a) dying; or

• (b) becoming incapacitated before attaining the age of 60,

• he is entitled to count as reckonable service the whole of the period in respect of which the contributions were being paid.

5

• (1) This paragraph applies where a teacher who is, in accordance with paragraph 6(1) of Schedule 5, continuing to pay contributions which he began to pay before 1973–

• (a) before attaining the age of 60 ceases to be in pensionable employment; and

• (b) does not then become entitled to payment of retiring allowances under regulation E5(1)(e) (incapacity) or to an incapacity gratuity under regulation E17.

• (2) The teacher is entitled to count as reckonable service–

$$A×BC$ where– A is the period in respect of which the contributions were being paid, B is the period during which they were paid, and C is the period from the start of B to his 60th birthday.$

SCHEDULE 8 — PERIODS MAKING UP QUALIFYING PERIOD

PART I

1

A period of pensionable employment and, in relation to a woman teacher, any additional period of absence wholly or partly on account of pregnancy or confinement, which is not pensionable employment by virtue of regulation B5(2), so long as she enjoys the right to return to work under sections 45 and 47 of the Employment Protection (Consolidation) Act 1978[^f00063].

2

A period counting as reckonable service by virtue of regulation D3 (which applies where additional contributions have been paid for past added years) or regulation D4 (which applies where additional contributions have been paid for current added years).

3

A period counting as specified country service.

4

A period of service or employment in respect of which a transfer value has been received.

PART II

5

A period of employment in the British Islands in a university, a university college or a college of a university, or as a full-time teacher, if–

• (a) contributions in respect of the employment were payable under the Federated System of Superannuation for Universities before 1st April 1975; and

• (b) the person’s accrued rights in respect of the employment up to that date were then transferred to the Universities Superannuation Scheme.

6

A period of employment as an inspector appointed under section 77(2) of the Education Act 1944[^f00064].

7

A period of employment as a civil servant, if paragraph 10 of Schedule 2 to the 1969 Regulations became applicable to the employment.

8

A period of pensionable employment in an educational capacity by the British Broadcasting Corporation.

9

A period of service as a member of the House of Commons which was reckonable service within the meaning of the Parliamentary and other Pensions Act 1972[^f00065].

10

A period of employment as a civil servant in England, Wales or Scotland not falling within paragraph 7.

11

A period of pensionable employment as a civil servant in Northern Ireland, the Isle of Man or the Channel Islands.

12

A period of employment which was contributory service for the purposes of the Overseas Service Pensions (Scheme and Fund) Regulations 1966[^f00066].

13

A period of employment as a full-time teacher, or in a capacity involving to a substantial extent the control or supervision of teachers, or as a civil servant, in a country or territory which was at any time a country specified in section 1(3) of the British Nationality Act 1948[^f00067] or a colony within the meaning of that Act, if–

• (a) the employment was pensionable under any law for the time being in force in the country or territory; or

• (b) the employer was the government of, or a public authority in, the country or territory and contributions in respect of the employment were payable to a provident fund.

14

A period of pensionable employment in a university, a university college or a college of a university in such a country or territory as is mentioned in paragraph 13.

15

A period of employment in the Republic of South Africa or in the mandated territory of South West Africa, if–

• (a) had the employment been in such a country or territory as is mentioned in paragraph 13 it would have fallen within paragraph 13 or 14; and

• (b) at some time during the 3 months ending with 30th May 1962 the person was employed in the Republic or in the mandated territory in service which was second class service for the purpose of regulation 6 of the Teachers (Superannuation) (Scotland) Regulations 1957[^f00068].

16

A period of employment as a full-time teacher while holding a commission in the naval, military or air forces of the Crown or in any of the women’s services that were mentioned in Schedule 4 to the Superannuation Act 1965[^f00069], if retired pay is being earned in respect of the employment.

17

A period of employment in respect of which contributions were payable to the Social Workers' Pension Fund.

18

A period of employment not falling within paragraph 5 in respect of which contributions were payable under the Federated System of Superannuation for Universities.

19

A period of employment by the British Council in respect of which contributions were payable under the British Council Overseas Service Pension Scheme.

20

A period of employment as an officer of an employing authority within the meaning of the National Health Service (Superannuation) Regulations 1980[^f00070] or the National Health Service (Superannuation) (Scotland) Regulations 1980[^f00071].

21

A period of employment in respect of which contributions were payable under the Federated Superannuation Scheme for Nurses and Hospital Officers, if–

• (a) either the National Health Service (Superannuation) Regulations 1980 or the National Health Service (Superannuation) (Scotland) Regulations 1980 applied to the employment; or

• (b) the employer was a scheduled body or a former local authority or a local Act authority, within the meaning of the Local Government Superannuation Regulations 1986[^f00072] or the Local Government Superannuation (Scotland) Regulations 1987[^f00073]; or

• (c) there were applicable to the employment any regulations or scheme made under section 2 or 5A of the Local Government (Superannuation) Act (Northern Ireland) 1950[^f00074], under section 61 of the Health Services Act (Northern Ireland) 1948[^f00075] or under article 12 or 14 of the Superannuation (Northern Ireland) Order 1972[^f00076], or

• (d) the employment was in a civil service in the British Islands.

22

A period of employment to which rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948[^f00077] (pensions of persons transferring to different employment) applied, if the person had previously been in pensionable employment.

23

A period of pensionable employment by an association of teachers.

24

A period of pensionable service as a clerk in holy orders or as a regular minister of any religious denomination.

SCHEDULE 9 — MODIFIED APPLICATION IN CERTAIN CASES

PART I — NATIONAL INSURANCE MODIFICATION OF PENSIONS

Interpretation

1

In this Part, unless the context otherwise requires–

• “the Act” means the National Insurance Act 1965[^f00078];

• “national insurance modifications” means the modifications made to these Regulations and to previous provisions whereby the superannuation benefits provided thereunder are modified in relation to insured persons for the purposes of the Act;

• “non-participating employment” has the meaning assigned to it by section 56(1) of the Act;

• “participating employment” means employment other than non-participating employment;

• “retired teacher” means a teacher who has ceased to be in pensionable employment and has attained state pensionable age.

Classification of teachers

2

• (1) For the purposes of this Part–

• (a) “existing teacher” means–

• (i) a teacher who was employed in pensionable employment at any time before 1st July 1948 whether or not his contributions in respect of that employment were returned to him; or

• (ii) a teacher who before 1st March 1948 had completed a course approved for the purposes of this Part by the Secretary of State (“an approved course”) or was engaged on an approved course, or had been accepted or provisionally accepted for an approved course, or had applied to be accepted for and had as a result of that application subsequently become engaged on an approved course and had entered pensionable employment within 6 months of completing the said approved course;

• (b) “new entrant teacher” means either–

• (i) a teacher who enters pensionable employment for the first time on or after 1st July 1948; or

• (ii) a teacher to whom sub-paragraph (a) applies and who makes an election under sub-paragraph (3).

• (2) An existing teacher shall be unmodified, that is to say, shall be a teacher to whom the national insurance modifications do not apply; and a new entrant teacher shall be modified, that is to say, shall be a teacher to whom the national insurance modifications apply.

• (3) An existing teacher in pensionable employment on 1st July 1948 shall remain unmodified unless he elected on or before 30th September 1948 to be modified or, if he was not in pensionable employment on 1st July 1948, so elects within 3 months after the date on which he first enters or re-enters pensionable employment. Notice so given is irrevocable.

• (4) Where a teacher was employed in comparable British service, or in other employment in respect of which a transfer value has been received, he shall on entering pensionable employment retain the classification which in the opinion of the Secretary of State corresponds to his classification in his former superannuation scheme, and where his classification has not been so determined the provisions of sub-paragraph (3) shall apply to him as they apply to a teacher who was not in pensionable employment on 1st July 1948.

Reduction of retirement pension

3

• (1) A retirement pension payable under these Regulations to a retired teacher to whom paragraph 2(1)(b)(i) or 2(4) applied shall be reduced by whichever is the lesser of £67.75 and the amount calculated by multiplying £1.70 for each completed year, and by a proportionate amount in respect of part of a year, of reckonable service after 1st July 1948 and before 1st April 1980.

• (2) In the case of a retired teacher–

• (a) who was last in pensionable employment before 1st April 1980, and

• (b) whose retirement pension is one to which he became entitled by virtue of regulation E5(1)(e) (incapacity),

• any additional period of reckonable service taken into account under regulation E9(3) shall be deemed for the purposes of sub-paragraph (1) to be such service as is there mentioned.

• (3) Where the retired teacher before 1st April 1980 elected for the purposes of regulation 21 of the 1977 Regulations to purchase past added years, these added years shall be deemed for the purposes of sub-paragraph (1) to be such reckonable service as is there mentioned.

• (4) Sub-paragraph (1) applies not only in the case of such a retired teacher as is there mentioned, but also in the case of a teacher who became entitled to retiring allowances before 1st April 1980 to whom paragraph 3 of Schedule 12 to the 1977 Regulations did not apply, if the Secretary of State is satisfied that the contributions paid by him before 1st April 1980 were modified on the assumption that the said paragraph 3 did apply in his case.

4

• (1) A retirement pension payable under these Regulations to a teacher, who became entitled to payment of retiring allowances before 1st April 1980 and who is modified by virtue of an election made in terms of paragraph 2(3), shall be reduced for each completed year, and proportionately for part of a year, of reckonable service after the date of modification by the sum specified in either column (2) or column (3), whichever is appropriate, of the Table in the Appendix to this Part which appears against his age at the date of modification specified in column (1).

• (2) In the case of a teacher who became entitled to payment of retiring allowances before 1st April 1980 and who is modified by virtue of an election made in terms of paragraph 2(3), the date of modification shall be, for the purposes of this paragraph, 1st July 1948 where notice has been given before the said date and the first day of the month following the date of the election in any other case.

• (3) In the case of a teacher–

• (a) who became entitled to retiring allowances before 1st April 1980; and

• (b) whose retirement pension is one to which he became entitled by virtue of regulation E5(1)(e) (incapacity),

• any additional period of reckonable service taken into account under regulation E9(3) is deemed for the purposes of sub-paragraph (1) to be such service as is there mentioned.

5

For the purposes of paragraphs 3 and 4, the reckonable service of a teacher who became entitled to payment of retiring allowances before 1st April 1980 is his effective reckonable service.

6

If, in calculating the amount of a retirement pension payable to a retired teacher under these Regulations, there is taken into account any period of employment after 2nd April 1961 and before 6th April 1975 which is participating employment, the retirement pension shall, except as provided in paragraphs 8 and 9, be reduced for each year of such period, and proportionately for part of a year, by the appropriate amount specified in the Table below:–

	Reduction in retirement pension for each whole year of period	Reduction in retirement pension for each whole year of period	Reduction in retirement pension for each whole year of period	Reduction in retirement pension for each whole year of period
Annual rate of salary during period	From 3rd April 1961 From 6th January 1964 to 5th January 1964 to 5th April 1975	From 3rd April 1961 From 6th January 1964 to 5th January 1964 to 5th April 1975	From 3rd April 1961 From 6th January 1964 to 5th January 1964 to 5th April 1975	From 3rd April 1961 From 6th January 1964 to 5th January 1964 to 5th April 1975
	Men	Women	Men	Women
	£	£	£	£
Not exceeding £468	nil	nil	nil	nil
Over £468 but not exceeding £520	.19	.16	.19	.16
Over £ 520 but not exceeding £ 572	.58	.48	.58	.48
Over £572 but not exceeding £624	.96	.80	.96	.80
Over £624 but not exceeding £676	1.35	1.12	1.35	1.12
Over £676 but not exceeding £728	1.73	1.44	1.73	1.44
Over £728 but not exceeding £780	2.12	1.76	2.12	1.76
Over £780 but not exceeding £832	2.31	1.92	2.51	2.09
Over £832 but not exceeding £884	2.31	1.92	2.90	2.42
Over £884 but not exceeding £936	2.31	1.92	3.29	2.74
Over £936	2.31	1.92	3.48	2.90

7

If, in calculating the amount of a retirement pension, there is taken into account any period of employment after 2nd April 1961 and before 6th April 1975 in respect of which a payment in lieu of contributions has been made under the Act, the retirement pension shall, except as provided in paragraphs 8 and 9, be reduced–

• (a) by £2.31 in the case of a man and by £1.92 in the case of a woman for each year, and proportionately for part of a year, of any period from 3rd April 1961 to 5th January 1964; and

• (b) by £3.48 in the case of a man and by £2.90 in the case of a woman for each year, and proportionately for part of a year, of any period from 6th January 1964 to 5th April 1975.

8

Where–

• (a) a period of employment of a retired teacher which was participating employment or in respect of which a payment in lieu of contributions had been made is treated as reckonable service by virtue of receipt of a transfer value from his former pension scheme; and

• (b) the Secretary of State is informed of the amount by which the pension of a retired teacher under his former pension scheme would have been reduced in respect of that period by reason of graduated retirement benefit payable under the Act or of the method of calculating such reduction,

• the retirement pension in respect of that period shall be reduced by that amount or by an amount calculated in accordance with that method, as the case may be, and no reduction shall be made under paragraph 6 or 7 in respect of that period.

9

No reduction in the amount of the retirement pension shall be made under paragraph 6 or 7 in respect of any period which is reckonable service by virtue of regulation D3 or D4 or of regulations under section 1 of the Superannuation (Miscellaneous Provisions) Act 1948 (employment in national service).

Equivalent pension benefits

10

A retirement pension payable to a teacher shall, so far as attributable to any teaching service which is non-participating employment (exclusive of any period of such employment in respect of which a payment in lieu has been made under the Act), be not less than the amount required to constitute the benefits in respect of that service equivalent pension benefits for the purposes of that Act.

11

Any teacher who was employed in non-participating employment and attains state pensionable age shall be paid by way of equivalent pension benefits a sum equal to the actuarial value of a retirement pension at the following rate for each year of reckonable service–

	Man	Woman
during the period from 3rd April 1961 to 5th January 1964	£2.31	£1.92
during the period from 6th January 1964 to 5th April 1975	£3.48	£2.90

but excluding any period of such employment in respect of which–

• (a) a payment in lieu of contributions has been made, or

• (b) any retiring allowances are payable under regulation E5.

	Yearly reduction of pension for each completed year of reckonable service after date of modification	Yearly reduction of pension for each completed year of reckonable service after date of modification
Age at date of modification	Men	Women
(1)	(2)	(3)
	£	£
20 or under	1.70	1.70
21	1.65	1.60
22	1.60	1.53
23	1.55	1.45
24	1.50	1.37
25	1.47	1.30		26	1.45	1.23
27	1.43	1.17
28	1.40	1.13
29	1.35	1.07
30	1.33	1.03
31	1.30	0.97
32	1.27	0.95
33	1.25	0.93
34	1.23	0.90
35	1.20	0.87
36	1.17	0.85		37	1.15	0.83
38	1.13	0.80
39	1.10	0.77
40	1.07	0.75
41	1.07	0.73
42	1.05	0.73
43	1.03	0.70
44	1.00	0.70
45	0.97	0.67
46	0.95	0.65
47	0.95	0.65
48	0.93	0.63
49	0.93	0.63
50 and over	0.93	0.60

PART II — EMPLOYMENT AT REDUCED SALARY

12

Subject to paragraphs 13 to 17, these Regulations apply as if the teacher had been one person in relation to pensionable employment (“the earlier employment”) up to the end of his employment at the previous rate and a separate person in relation to pensionable employment (“new employment”) from the start of his employment at the reduced rate, and accordingly apply separately in relation to each of those employments.

13

For the purposes of regulation E4 (qualification for retiring allowances), periods counting towards a qualifying period in relation to one of the employments shall count also in relation to the other.

14

• (1) For the purposes of regulation E30(2) (limits on reckonable service for calculating benefits), periods counting as reckonable service in relation to one of the employments shall count also in relation to the other.

• (2) Any period excluded by regulation E30(2) shall be excluded in relation to new employment only.

15

• (1) A period for which the person has, before the first day of new employment, elected to pay additional contributions under regulation C3 shall not count as reckonable service in relation to new employment but shall, subject to sub-paragraph (2), count in relation to the earlier employment.

• (2) An election to pay such contributions by Method A or C which was made less than 12 months before the first day of new employment ceases to have effect on that day, and any contributions paid in pursuance of it are to be refunded.

• (3) If an election to pay such contributions is made on or after the first day of new employment–

• (a) the period to which it relates shall count as reckonable service in relation to new employment but shall not count in relation to the earlier employment; and

• (b) if the contributions are to be paid by Method B, paragraph 10 of Schedule 4 (calculation of lump sum where salary reduced) does not apply.

16

• (1) This paragraph applies if the teacher becomes entitled to payment of retiring allowances by virtue of regulation E5(1)(e) (incapacity).

• (2) For the purposes of regulation E9 (enhancement), the appropriate period shall be calculated by reference to the aggregate of the period counting as reckonable service in relation to the earlier employment and the period so counting in relation to new employment, and–

• (a) if he becomes entitled to payment of the benefits within 3 years after the start of new employment, the period counting as reckonable service in relation to the earlier employment; or

• (b) in any other case, the period so counting in relation to new employment,

• shall be increased by the appropriate period so calculated.

17

• (1) For the purpose of calculating any death gratuity under regulation E19 or deficiency grant under regulation E20 that may become payable in respect of the teacher–

• (a) the pensionable salary mentioned in regulations E19(2) and E20(2)–

• (i) if the gratuity or grant becomes payable within 3 years after the start of new employment, shall be the pensionable salary in respect of the earlier employment; and

• (ii) in any other case, shall be the pensionable salary in respect of new employment;

• (b) the retirement lump sum mentioned in regulation E19(2) shall be the aggregate of the lump sums that would have become payable as there mentioned in respect of each of the employments, enhanced in accordance with paragraph 16; and

• (c) the retirement pension mentioned in E20(3) shall be the aggregate of the retirement pensions paid in respect of each of the employments.

• (2) Only one of either kind of gratuity shall be paid.

PART III — POLICY SCHEMES

18

In this Part “excluded service” means the employment in respect of which the insurance policies were fully maintained as is mentioned in regulation 6A of the 1977 Regulations[^f00079].

19

For the purposes of regulation C3(1) (case in which additional contributions may be paid to purchase past added years), if the teacher’s excluded service began before he first became employed in pensionable employment he is to be treated as having first become so employed when his excluded service began.

20

For the purposes of regulation E4 (qualification for retiring allowances), paragraph 1 of Schedule 8 has effect as if his excluded service had been pensionable employment beginning after 5th April 1988.

PART IV — SPECIFIED COUNTRY SERVICE

21

Regulations E5 (entitlement to payment of retiring allowances), E7 (amount of retirement lump sum), E14(3) (pension becoming payable again after cessation on ceasing to be incapacitated) and E16 (retiring allowances on cessation of further employment) have effect with the substitution for references (whether direct or not) to the age of 60 of references to the age obtained by deducting from 60 years a period of 3 months in respect of each complete year of up to 20 years of specified country service.

SCHEDULE 10 — ALLOCATION OF PART OF RETIREMENT PENSION

PART I — CONTENTS OF DECLARATION

1

• (1) A declaration shall specify–

• (a) the part of the retirement pension allocated; and

• (b) the alternative benefit it shall provide.

• (2) The part allocated, to be expressed as a whole number of pounds, shall not exceed the lower of–

• (a) ⅓ of the annual rate of the retirement pension, disregarding any National Insurance modification under Schedule 9; and

• (b) the amount that would result in the reduction of that rate to less than the rate of, as the case may be, the annuity mentioned in regulation E12(2)(a) or the subsequent annuity mentioned in regulation E12(2)(b),

• and shall not be such as to effect any equivalent pension benefits.

PART II — PROCEDURE

2

• (1) A teacher who, with a view to making an allocation, gives the Secretary of State at least 4 months' notice of his intended retirement is referred to in this Schedule as a “retiring employee”.

• (2) For the purposes of this Schedule a teacher’s relevant birthday shall be–

• (a) where retiring allowances become payable by virtue of regulation E5(1)(f) (redundancy, etc.), his 50th; and

• (b) in any other case, his 60th.

3

• (1) Before delivering a declaration, a teacher shall give the Secretary of State written notice of his intention to make an allocation.

• (2) The notice shall be given–

• (a) in the case of a retiring employee, no later than his application for payment of retiring allowances; and

• (b) in any other case, no earlier than 4 months before the later of -

• (i) the date on which the person becomes qualified for retiring allowances; and

• (ii) his relevant birthday.

4

• (1) Before delivering a declaration, a teacher shall, at his own expense–

• (a) satisfy the Secretary of State as to his health; and

• (b) provide the Secretary of State with such information about the person for whose benefit the allocation is to be made, and verify it in such manner, as the Secretary of State may reasonably require.

• (2) In order to satisfy the Secretary of State as to his health, the teacher shall submit himself for examination by a medical practitioner nominated by the Secretary of State; he may if he wishes be examined by a second medical practitioner so nominated if the Secretary of State is not satisfied as a result of the first examination.

5

• (1) On receiving a notice under paragraph 3, the Secretary of State shall notify the teacher in writing of–

• (a) the amount or estimated amount of his retirement pension;

• (b) the name and address of the nominated medical practitioner; and

• (c) the time within which any declaration is to be delivered.

• (2) A declaration shall be delivered–

• (a) if the person is resident outside the United Kingdom, within 4 months; and

• (b) in any other case, within 3 months,

• after receipt of the Secretary of State’s notification under sub-paragraph (1).

• (3) If he is satisfied as to the teacher’s health, and with the information provided in accordance with paragraph 4(1)(b), the Secretary of State shall send him a suitable form on which to make the declaration.

• (4) On the delivery to him of a declaration, the Secretary of State shall provide the teacher making it with written particulars of the alternative benefit.

6

A declaration, and any notice or other communication under this Part, may be sent by post.

PART III — OTHER MATTERS

7

• (1) Subject to sub-paragraphs (2) to (6), a declaration shall take effect as such on the day on which it is delivered to the Secretary of State.

• (2) A declaration shall not have effect before the teacher’s relevant birthday.

• (3) A declaration shall not have effect if either the teacher making it or the person for whose benefit the allocation was to be made dies before the material time.

• (4) In the case of a declaration made by a retiring employee, the material time shall be the later of–

• (a) the day after that on which the declaration is delivered; and

• (b) the day before that on which he becomes entitled to payment of retiring allowances.

• (5) In any other case the material time shall be the day on which the declaration is delivered.

• (6) A declaration may be revoked or varied by a further declaration delivered–

• (a) in the case of a retiring employee, before the day on which he becomes entitled to payment of retiring allowances; and (b)in any other case, before the day on which the original declaration is delivered.

8

• (1) An allocation takes effect on the day on which the person making it becomes entitled to payment of retiring allowances.

• (2) For the purposes of sub-paragraph (1), if a teacher other than a retiring employee dies in pensionable employment after his declaration has taken effect, he shall be taken to have become entitled to payment of retiring allowances on the date of his death.

9

• (1) If notice of intention has been given under paragraph 3 and by the later of–

• (a) the date of the teacher’s becoming entitled to retiring allowances; and

• (b) his relevant birthday,

• no declaration has been delivered, then, from the later of those dates until he has either delivered a declaration or failed to satisfy the Secretary of State as mentioned in paragraph 5(3), ⅓ of his retirement pension may be withheld.

• (2) Any resulting underpayment or overpayment shall be adjusted in due course.

10

• (1) If after a retiring employee has delivered a declaration the rate of his retirement pension is increased, otherwise than under the Pensions (Increase) Act 1971[^f00080], the part allocated shall be correspondingly increased.

• (2) Sub-paragraph (1) applies even if the increase in the retirement pension takes effect from a date earlier than the date of delivery of the declaration.

• (3) The corresponding increase in the part allocated, which shall be rounded down to the nearest pound, takes effect from the same date as the increase in the retirement pension.

• (4) If the alternative benefit is the one described in regulation E12(2)(b) (annuity for declarant followed by annuity for surviving spouse), the resulting increase in the first of those annuities shall take effect from the same date as the increase in the retirement pension.

11

If after a person has delivered a declaration the rate of his retirement pension is reduced, the declaration continues to have effect but the part allocated shall be reduced to any extent necessary to secure that the restrictions in paragraph 1(2) are still complied with.

SCHEDULE 11 — TRANSFER VALUES

PART I — OUTWARD TRANSFERS

1

Subject to the provisions of paragraphs 2 to 6 and 9 and 10, a transfer value to be paid in accordance with the provisions of regulation F1 in respect of a teacher shall be–

• (a) the capitalised value of his accrued rights under these Regulations at the material date, and any associated rights under the Pensions (Increase) Act 1971 and the Pensions (Increase) Act 1974[^f00081], less a sum, if any, in respect of any state scheme premium which the Secretary of State has paid and not recovered in respect of a period of service included in the valuation of those rights; together with

• (b) where the transfer value is without reasonable cause or excuse not paid within 6 months of the material date, and it is not to be made to a club scheme, the greater of–

• (i) interest, if any, calculated on a daily basis over the period from the material date to the date on which the transfer value is paid, at the rate set out in regulation 4(4)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1985[^f00082]; or,

• (ii) the amount by which the transfer value falls short of what it would have been if the material date had been the date on which the transfer value was paid.

2

Where–

• (a) a transfer value is payable to an approved superannuation scheme which is not a club scheme; and

• (b) it falls to be calculated by reference to service rendered by the teacher before 21st October 1988,

• the transfer value payable shall be the total of A and the greater of B or C, where–

• A is a transfer value calculated in accordance with paragraph 1 in respect of the teacher’s reckonable service after 20th October 1988,

• B is a transfer value calculated in accordance with paragraph 1 in respect of the teacher’s reckonable service before 21st October 1988, and

• C is a transfer value, calculated as if Schedule 10 to the 1977 Regulations, as in force on 5th April 1988, had continued in force, in respect of his service before 21st October 1988.

3

Where, prior to the last date on which he is required to pay a transfer value under these Regulations, the Secretary of State has determined under regulation E18 (forfeiture of benefits) that the benefits payable under these Regulations shall be withheld in whole or part, any transfer value payable in respect of that person shall be reduced in proportion to the reduction in the total value of the benefits or shall be withheld as the case may be.

4

Where–

• (a) a teacher requests that a transfer value be paid to–

• (i) an occupational pension scheme which is not contracted out within the meaning of section 32 of the Pensions Act[^f00083]; or

• (ii) a personal pension scheme which is not an appropriate personal pension scheme; or

• (iii) a self-employed pension arrangement; and

• (b) the trustees or managers of the occupational pension scheme, personal pension scheme or self-employed pension arrangement are able or willing to have transferred to it only the liabilities for a teacher’s accrued rights other than his and his spouse’s rights to guaranteed minimum pensions; and

• (c) the teacher does not require the Secretary of State to use that portion of the transfer value that represents guaranteed minimum pension in one of the ways specified in regulation F1,

• the teacher’s transfer value shall be reduced by the amount of a state scheme premium sufficient for the Secretary of State for Social Services to meet his liability in respect of the teacher’s and his spouse’s guaranteed minimum pensions.

5

• (1) Subject to sub-paragraph (2), in respect of a teacher who is in excluded employment by virtue of an election under regulation B6 (membership), the transfer value calculated in accordance with this Part shall be the aggregate of the following:–

• (a) in relation to the teacher’s retiring allowance, that part of his accrued rights which bears the same proportion to his total accrued rights as his reckonable service after 5th April 1988 bears to his total reckonable service; and

• (b) in relation to his spouse’s pension, that part of his accrued rights applicable to service after 5th April 1988.

• (2) Sub-paragraph (1) shall not apply to a person whose reckonable service before 6th April 1988 amounts to less than 2 years.

6

Subject to paragraph 7, where–

• (a) a transfer value limited in accordance with paragraph 5(1) has been paid in respect of a teacher; and

• (b) that teacher has subsequently ceased to be employed in excluded employment other than by virtue of an election under regulation B7 (resumption of membership) before attaining the age of 60 years, or, where regulation F1(6) applies, the age of 59 years,

• a right to a transfer value in respect of any part of his accrued rights to which, but for the operation of paragraph 5(1), he would have been entitled on ceasing to be employed in pensionable employment, shall accrue to the teacher on the date on which he ceased to be employed in excluded employment and shall be valued accordingly.

7

In relation to any teacher to whom paragraph 6 applies–

• (a) regulation F1(5) shall have effect as if for the words “he ceased to be employed in pensionable employment or entered excluded employment ” there were substituted the words “he terminated excluded employment”; and

• (b) the definition of “material date” in paragraph 14 shall have effect as if for the words “ceased to be employed in pensionable employment or entered excluded employment ” there were substituted the words “terminated excluded employment”.

8

For the purposes of paragraph 6, where a teacher ceases to be employed in excluded employment other than by virtue of an election under regulation B7 (resumption of membership) but that teacher enters again into excluded employment or enters pensionable employment, then, if there is between those two employments–

• (a) an interval not exceeding one month; or

• (b) an interval of any length if the second of the employments results from the exercise of a right to return to work under section 45(1) of the Employment Protection (Consolidation) Act 1978[^f00084] (right to return to work following pregnancy or confinement),

• they shall be treated as a single employment.

9

Where one or more transfer values have been paid to the Secretary of State in respect of a teacher, any transfer value paid by him shall be at least equal to the aggregate of that transfer value or those transfer values and any contributions made by that teacher under regulations C1, C3 and C8, except where it falls to be made to a club scheme.

10

A transfer value paid under this Part shall be at least equal in amount to the cash equivalent, if any, to which a teacher would otherwise be entitled under Part II of Schedule 1A to the Pensions Act.

PART II — ADDITIONAL TRANSFER VALUES IN RESPECT OF WAR SERVICE

11

The additional transfer value payable shall be calculated in accordance with the formula

$$(A×B×C)+D$ where– A is the period of reckonable service calculated in accordance with regulation F2(6) of these Regulations; B is the appropriate factor in the Table below; C in the case of a teacher in pensionable employment is the pensionable salary at 1st April 1978 or, in the case of a person in receipt of retiring allowances, the pensionable salary at date of retirement (increased in accordance with the Pensions (Increase) Act 1971 as appropriate to his retiring allowances as at 1st April 1978 or appropriate later date); D is interest on (A × B × C) at the rate referred to in paragraph 1(b)(i), compounded with yearly rests, in respect of any period between 1st April 1978 and the day on which the transfer payment is made.$

Age last birthday at 1st April 1978	Men	Women
40	0.1009	0.1328
41	0.1018	0.1344
42	0.1024	0.1357
43	0.1031	0.1372
44	0.1038	0.1389
45	0.1045	0.1405
46	0.1058	0.1422
47	0.1073	0.1437
48	0.1085	0.1454
49	0.1099	0.1470
50	0.1111	0.1487
51	0.1125	0.1502
52	0.1150	0.1525
53	0.1176	0.1548
54	0.1203	0.1571
55	0.1229	0.1599
56	0.1267	0.1628
57	0.1306	0.1663
58	0.1345	0.1707
59	0.1397	0.1759
60	0.1463	0.1810
61	0.1465	0.1818
62	0.1469	0.1825
63	0.1473	0.1833
64	0.1478	0.1840
65	0.1480	0.1844
66	0.1436	0.1800
67	0.1392	0.1756
68	0.1355	0.1713
69	0.1311	0.1669
70	0.1267	0.1625
71	0.1230	0.1575
72	0.1190	0.1519
73	0.1144	0.1463
74	0.1106	0.1406
75	0.1063	0.1350
76	0.1019	0.1294
77	0.0981	0.1238
78	0.0938	0.1181
79	0.0900	0.1131
80	0.0854	0.1088
81	0.0815	0.1044
82	0.0775	0.1006
83	0.0735	0.0969
84	0.0698	0.0931
85	0.0661	0.0894
86	0.0623	0.0856
87	0.0585	0.0825
88	0.0554	0.0794
89	0.0525	0.0769
90	0.0496	0.0744
91	0.0467	0.0719
92	0.0440	0.0694
93	0.0419	0.0669
94	0.0398	0.0644
95	0.0377	0.0625
96	0.0356	0.0600
97	0.0342	0.0581
98	0.0321	0.0556
99	0.0306	0.0531

PART III — INWARD TRANSFERS

12

Where a transfer value has been paid to, and accepted by, the Secretary of State, there shall be credited to the teacher, in respect of whom the payment was made, a period of reckonable service calculated in accordance with paragraph 13.

13

For the purposes of paragraph 12–

• (a) where the transfer value–

• (i) is paid by the trustees or managers of a club scheme;

• (ii) represents all of the teacher’s accrued rights in that scheme; and

• (iii) has been calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to club schemes under Part I of this Schedule,

• the period of reckonable service to be credited to the teacher shall be equal to the period of service which, if used to calculate a transfer value to be paid to an occupational pension scheme which is a statutory scheme under Part I of this Schedule, would produce an amount equal to the transfer value received by the Secretary of State, and in making the calculation regard shall be had to the teacher’s age, rate of pensionable pay, marital status and, in addition, to any other factor notified to the Secretary of State by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount; and

• (b) in any other case, the period of reckonable service credited to the teacher shall be calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to occupational pension schemes (which do not fall to be treated as statutory schemes) under Part I of this Schedule, due allowance being given for the expected increase in the salary of teachers between the appropriate date and the date on which the teacher in respect of whom the transfer value was paid would attain the age of 60 years.

PART IV — INTERPRETATION

14

In this Schedule–

• (a) “accrued rights” means the rights which have accrued in respect of a teacher under these Regulations at the material date, or which would have accrued in respect of him if the period of service necessary to satisfy the requirements of regulation E4 (qualification for retiring allowances) had been the period which he had completed at that date;

• (b) “appropriate date” means the date on which the person in respect of whom the transfer value is paid became employed in pensionable employment or, if the transfer value is received more than 12 months after that date, the date on which it is received;

• (c) “capitalised value” means the capitalised value at the material date as determined by the Secretary of State, having regard to investment conditions and the contingencies on which benefits are, or are to be, payable under these Regulations;

• (d) “club scheme” means an occupational pension scheme which–

• (i) is a contracted-out scheme;

• (ii) provides benefits calculated by reference to the remuneration of the participant;

• (iii) is open to new members or, if it is a closed scheme, its trustees or managers also manage an open scheme which is a club member for new recruits of the same grade or level of post as the participants in the closed scheme;

• (iv) has undertaken to comply with the reciprocal arrangements for the payment and receipt of transfer values agreed from time to time between members of the club; and

• (v) is approved for the purposes of this Schedule by the Treasury;

• (e) “material date” means the date on which the teacher ceased to be employed in pensionable employment or entered excluded employment or, if it is later, the date of his application for payment of a transfer value which he has not subsequently withdrawn;

• (f) “state scheme premium” means a state scheme premium or transfer premium under Part III of the Pensions Act.

SCHEDULE 12 — TEACHERS' SUPERANNUATION ACCOUNT NOTIONAL INTEREST

1

• (1) Subject to sub-paragraph (2) and paragraph 3(3), the notional interest to be credited to the account under regulation G2(4)(e) is the interest that would have accrued for the financial year–

• (a) from the notional investment that was referred to in regulation 79(3) of the 1977 Regulations; and

• (b) from the notional investments of annual balances that were calculated in accordance with regulation 79(2) of the 1977 Regulations; and

• (c) in any financial year beginning after 31st March 1992, from the assumed investments at the end of preceding financial years described in paragraph 2(4),

• and half the interest that would have accrued for the financial year from the assumed investment described in paragraph 2(3).

• (2) There is to be deducted from the gross amount of the notional interest an amount equal to the income tax that would have been payable if the notional and assumed investments had been held for the purposes of a retirement benefits scheme approved under Chapter I of Part XIV of the Taxes Act which was an exempt approved scheme within the meaning of that Chapter and which provided benefits comparable to those provided under these Regulations.

• (3) Any question arising under sub-paragraph (2) as to the extent to which income tax shall be deemed to be payable shall be determined by the Secretary of State and his decision shall be final.

2

• (1) In this paragraph “invested” means invested in one or more designated securities at the mean price.

• (2) A designated security is a government security designated for the financial year by the Secretary of State after consulting the Government Actuary, and the mean price is half way between the highest and lowest prices shown for it in the Official Daily List of the Stock Exchange for 1st October in the financial year or, if the Exchange was not then open, for the last day on which it had been open.

• (3) It is to be assumed that A + B − C was invested at the beginning of the financial year–

• A being the total of the receipts credited for the financial year in accordance with regulation G2(1) and (4)(b) to (d),

• B being the notional interest described in paragraph 1(1)(a), (b) and (c), and

• C being the total of the payments debited for the financial year in accordance with regulation G3.

• (4) It is to be assumed that A + B + D − C is invested at the end of the financial year in the same designated security or securities, A, B and C being the same as in sub-paragraph (3) and D being half the interest that would have accrued for the financial year from the assumed investment described in that sub-paragraph.

3

• (1) Any security which is the subject of a notional or assumed investment mentioned in paragraph 1(1)(a), (b) or (c) is to be treated as having been redeemed on the last date on which it could have been redeemed in accordance with the terms on which it was issued (“the redemption date”).

• (2) The amount originally treated as invested in the security is to be assumed to have been re-invested on the redemption date in a government security designated by the Secretary of State after consulting the Government Actuary.

• (3) The notional interest calculated in accordance with paragraph 1 is to be increased by an excess of F over E, or as the case may be reduced by any excess of E over F, where–

• E is the amount originally treated as invested in the security, and

• F is the amount notionally received on its redemption after deducting any capital gains tax that would have been payable if the investment had been held for the purposes of a retirement benefits scheme of the kind mentioned in paragraph 1(2).

SCHEDULE 13 — REVOCATIONS, SAVINGS AND TRANSITIONAL PROVISIONS

PART I — REVOCATIONS

Regulations revoked	References
The Teachers' Superannuation (Scotland) Regulations 1977	S.I. 1977/1360
The Teachers' Superannuation (Scotland) Amendment Regulations 1977	S.I. 1977/1808
The Teachers' Superannuation (Scotland) Amendment Regulations 1978	S.I. 1978/1507
The Teachers' Superannuation (Scotland) Amendment Regulations 1980	S.I. 1980/344
The Teachers' Superannuation (War Service, Etc.) (Scotland) Regulations 1983	S.I. 1983/639
The Teachers' Superannuation (Scotland) Amendment Regulations 1983	S.I. 1983/1431
The Teachers' Superannuation (Scotland) Amendment Regulations 1984	S.I. 1984/2028
The Teachers' Superannuation (Scotland) Amendment Regulations 1988	S.I. 1988/1618
The Teachers' Superannuation (Scotland) Amendment Regulations 1989	S.I. 1989/666
The Teachers' Superannuation (Scotland) Amendment Regulations 1990	S.I. 1990/383

PART II — SAVINGS

1

The revocation by these Regulations of a transitional provision relating to the coming into force of a provision re-enacted in these Regulations does not affect the operation of that transitional provision, so far as it remains capable of having effect, in relation to the provision as re-enacted.

2

• (1) The revocation by these Regulations of a provision previously revoked subject to savings does not affect the previous operation of those savings.

• (2) The revocation by those Regulations of a saving made on the previous revocation of a provision does not affect the operation of the saving insofar as it remains capable of having effect.

3

Any document made, served or issued on or after the date on which these Regulations come into force which includes a reference to a provision revoked by these Regulations is to be construed, except so far as a contrary intention appears, as referring or, as the context may require, including a reference, to the corresponding provision of these Regulations.

PART III — TRANSITIONAL PROVISIONS

1

• (1) The re-enactment of provisions in these Regulations, and the consequent revocation of those provisions by these Regulations, does not affect the continuity of the law.

• (2) The general rule is that the provisions of these Regulations apply, in accordance with sub-paragraph (1), to matters arising before the commencement of these Regulations as to matters arising after that commencement.

• (3) The general rule has effect subject to any express provision to the contrary, and to paragraph 2.