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The Teachers' Pensions Regulations 1997

Type Statutory-Instrument

Publication 1997-12-15

State In force

Department Queen's Printer of Acts of Parliament

Source legislation.gov.uk

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$$A+B-C,$ where— A is the transfer value accepted under regulation F4, B is the total of the contributions paid by the person under Part C, except any that fell to be treated for the purposes of regulation G2 as employers' contributions, and C is any cash equivalent paid on the transfer.$

Termination of right to count reckonable etc. service

F3

A person—

(a) in respect of whom a transfer value has been paid under regulation F1, or

(b) who has acquired a right to a cash equivalent and exercised the option to take that right,

ceases to be entitled to count as reckonable service, or as part of a qualifying period within the meaning of regulation E3, any period to which the transfer value or cash equivalent related.

Acceptance of transfer values

F4

(1) Subject to paragraphs (2) to (6), a transfer value offered to the Secretary of State by the scheme managers of—

(a) an approved pension scheme, or

(b) a personal pension scheme, or

(“the previous scheme”), in respect of a person who has entered pensionable employment, may be accepted.

(2) In paragraph (1) “self-employed pension arrangement” means a personal pension scheme within the meaning of Chapter IV of Part XIV of the Taxes Act which—

(a) is approved by the Commissioners of Inland Revenue under that Chapter, and

(b) is neither a personal pension scheme nor a contract or scheme approved under Chapter III of Part XIV of the Taxes Act.

(3) The person must have made a written request to the Secretary of State for the transfer value to be accepted.

(4) Unless while the person was subject to the previous scheme he was employed in comparable British service, the request must have been made within 12 months after the day on which he entered pensionable employment.

(5) A transfer value is not to be accepted if one was accepted before 3rd February 1998 in relation to the same transfer.

(6) Subject to paragraph (7), a transfer value is not to be accepted if—

(a) before he ceased to be subject to the previous scheme the person became entitled under regulation E4 to payment of retirement benefits, or

(b) he has become entitled to payment of benefits under a provision of a statutory scheme corresponding to regulation E4.

(7) Paragraph (6) does not apply if, while the person was subject to the previous scheme, he was employed in comparable British service and he entered pensionable employment—

(a) immediately after the end of the employment, or

(b) on or before his 60th birthday.

(8) A person in respect of whom a transfer value has been accepted is entitled to count reckonable service in accordance with Part II of Schedule 12.

PART G — FINANCE

Teachers' Pension Account

G1

An account substantially in the form set out in Schedule 13 is to be prepared by the Secretary of State for every financial year starting with the financial year ending with 31st March 1998.

Receipts etc. to be credited

G2

(1) Employees' and employers' contributions received during the financial year are to be credited to the account.

(2) Employees' contributions comprise—

(a) all contributions payable under regulations C3(1) and (3), C4, C5, C6, C8, C11 and paragraph 36 of Schedule 10,

(b) so much of the contributions payable by services education officers under regulation C3(2) as falls within regulation C3(2)(a),

(c) so much of any additional contributions payable under regulation C9 and C10 as would have been payable under regulation C3(1) if pensionable employments had continued, and

(d) all amounts payable under regulations C16 and C17 (return of repaid contributions).

(3) Employers' contributions comprise—

(a) the contributions payable under regulations G5, G6 and G8,

(b) so much of the contributions payable by services education officers under regulation C3(2) as falls within regulation C3(2)(b), and

(c) so much of any additional contributions payable under regulation C9 and C10 as would have been payable under regulation G5 if pensionable employments had continued.

(4) There are also to be credited to the account—

(a) the closing balance in the account for the preceding financial year,

(b) all transfer values accepted under regulation F4 and additional transfer values under regulation D6 of the 1988 regulations (which continues to have effect by virtue of paragraph 12 of Schedule 15 despite the revocation of the 1988 Regulations) received during the financial year,

(c) all contributions equivalent premiums refunded, or recovered under section 61 of the 1993 Act, during the financial year,

(d) any interest and other payments under these Regulations received during the financial year, and

(e) the notional investment income for the financial year on the balance in the account.

(5) For the purposes of paragraph (4)(e), the notional investment income is an amount determined by the Government Actuary and derived by multiplying the balance on the account from time to time by the estimated percentage return (calculated over such period as the Government Actuary determines) on the total invested assets of relevant pension funds in the United Kingdom; and “relevant pension funds” means pension funds in excess of £1,000 million or such other sum as the Secretary of State may from time to time determine: provided that, in determining such an amount, the Government Actuary shall have regard to such information relating to such return on such assets as may be available to him from any organisation in the United Kingdom, designated by the Secretary of State, which compiles and publishes statistics relating to the assets of such funds.

Payments to be debited

G3

There are to be debited to the account all sums paid during the financial year by way of—

(a) benefits under Part E, so far as not attributable to service before 1st June 1922,

(b) payments under paragraph 12 of Schedule 10 (equivalent pension benefits),

(d) transfer values under regulation F1, additional transfer values under regulation F2 of the 1988 Regulations (war service) (which continues to have effect by virtue of paragraph 17 of Schedule 15 despite the revocation of the 1988 Regulations) and transfer values under Chapter IV of Part IV of the 1993 Act.

(e) contributions equivalent premiums, and

(f) increases payable under the Pensions (Increase) Act 1971³⁴.

Actuarial inquiries

G4

The Government Actuary shall make an actuarial inquiry reporting on the position in relation to the account as at the end of the financial year ending with 31st March 2001 and at the end of every fifth subsequent financial year (“the financial year in question”).

(2) The Government Actuary shall make a report on the inquiry to the Secretary of State as soon as practicable after the end of the financial year in question and the Secretary of State shall lay the report before each House of Parliament.

(3) The report is to specify the percentage of the contributable salaries of persons entering pensionable employment on the first day of the next financial year at which contributions should be paid, during the period beginning on 1st April next following the date of the report and ending with 31st March next following the date of the next report (“the relevant period”), so as to defray the cost of the payments of the kinds described in regulation G3(a) to (f) that are likely to be made in respect of them.

(4) The report is to state the amount by which, at the end of the financial year in question, the amount of the scheme assets exceeded or fell short of that of the scheme liabilities.

(5) The scheme assets are—

(a) the value of the employees' contributions receivable after the end of the financial year in respect of persons who at the end of that year were or had been in pensionable employment,

(b) the value of employers' contributions in respect of such persons receivable after the end of the financial year, except any such supplementary contributions as are mentioned in paragraph (7),

(c) the value of payments that would fall to be credited under regulation G2(4)(d) and (e) to the accounts for subsequent financial years, and

(d) the actuarial value at the end of the financial year in question of the balance in the account.

(6) The scheme liabilities are the payments to be made under these Regulations and in respect of pension increases under the Pensions (Increase) Act 1971 after the end of the financial year in question in respect of persons who at the end of that year were or had been in pensionable employment, except payments attributable to service before 1st June 1922.

(7) If the report states that the amount of the scheme liabilities exceeded that of the scheme assets, it is to specify a rate (expressed as a percentage) at which, during the relevant period, supplementary contributions should be paid by employers of persons in pensionable employment so as to remove the deficiency within the period of 15 years beginning on 1st April following the date of the report.

(8) If the report states that the amount of the scheme assets exceeded that of the scheme liabilities, it is to specify a rate (expressed as a percentage) at which, during the relevant period, the employers of persons in pensionable employment should receive a contribution rebate so as to remove the surplus within the period of 15 years beginning on 1st April following the date of the report.

(9) The rate referred to in paragraphs (7) and (8) is to be expressed as a percentage of the contributable salaries from time to time of persons in pensionable employment; the percentage must either be or be a multiple of 0.05.

(10) In this regulation “employees' contributions” and “employers' contributions” are to be construed in accordance with regulation G2(2) and (3) respectively.

Employers' contributions

G5

(1) Subject to paragraph (3), the employer of a person in pensionable employment, other than a services education officer, is during every relevant period to pay contributions of the required percentage of his contributable salary for the time being.

(2) The required percentage for every relevant period beginning with the relevant period starting on the 1st April next following the date of the first report made under regulation G4, is

$$(A-6)+B-C$ or, if the result would be less than zero, zero, where— A is the percentage specified for the relevant period under regulation G4(3), B is any percentage specified for the relevant period under regulation G4(7) and (9); and C is any percentage specified for the relevant period under regulation G4(8) and (9).$

(3) Paragraph 9 of Schedule 15 has effect for the purpose of determining the required percentage for relevant periods before that referred to in paragraph (2) above.

(4) No contributions are to be paid in respect of any person to whom regulation E32(2)(a) (restriction of reckonable service to 45 years) has become applicable.

(5) For the purposes of this regulation—

(a) a local education authority is deemed to be the employer of every person employed in or in connection with a school maintained by it, other than of a person who is in the employment of an employment business, and

(b) “relevant period” is to be construed in accordance with regulation G4(3).

(6) In this regulation “employment business” has the meaning assigned to it by section 13(3) of the Employment Agencies Act 1973³⁵.

Employers' contributions—employees' elections under regulation C2

G6

(1) In this regulation “employer A”, “employer B” and “employer C” have the same meaning as in regulation C2(1)(b) and (6)(c).

(2) Where a person who falls within regulation C2(1)(a) has made an election under regulation C2(1) the person’s employer may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by that employer.

(3) Where a person who falls within regulation C2(1)(b) has made an election under regulation C2(1) either employer A or employer B may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by employer A or employer B as the case may be.

(4) Where a person who has made an election under regulation C2(1) ceases to be in pensionable employment in circumstances where—

(a) his election continues to have effect by virtue of regulation C2(6)(c)(ii), and

(b) an election has been made under paragraph (2), or under paragraph (3) by employer B, but

employer C may elect that the contribution deficit, or such part of it as is specified in the election, is to be paid by employer C.

(5) In paragraphs (2) and (3) “the contribution deficit” means contributions of the required percentage of the difference between the person’s actual contributable salary and his contributable salary at the rate referred to in regulation C2(4).

(6) An election for the purposes of paragraphs (2), (3) or (4)—

(a) must be made by giving written notice to the Secretary of State,

(b) has effect—

(i) in the case of an election under paragraph (2) or (3), from the date on which the employee’s election under regulation C2(1) has effect, or from the end of the month in which the election was made whichever is the later, and

(ii) in the case of an election under paragraph (4), from the date on which the person takes up employment with employer C or from the end of the month in which the election was made whichever is the later, and

(c) shall state whether the employer elects to pay the whole of the contribution deficit or a proportion of it and if so what that proportion is, and

(d) is irrevocable.

(7) An election made under paragraph (2), under paragraph (3) by employer B or under paragraph (4) ceases to have effect—

(a) in the case of an election under paragraph (2) or (3), if the person ceases to be employed by the employer who made the election unless—

(i) the person elects to pay additional contributions under regulation C10, or

(ii) by virtue of regulation C2(6)(c)(ii) the person’s election does not cease to have effect and the employer confirms the election before the date on which the person takes up employment with the new employer, and

(b) in the case of an election under paragraph (4) if the person ceases to be employed by the person who made the election unless he elects to pay additional contributions under regulation C10.

(8) An election made under paragraph (3) by employer A ceases to have effect if the person ceases to be in pensionable employment unless he—

(a) elects to pay additional contributions under regulation C10, or

(b) takes up pensionable employment with another employer within 6 months of ceasing to be in pensionable employment.

(9) Where, in relation to a person who falls within regulation C2(1)(b)—

(a) there are at any time elections by both employer A and employer B, or as the case may be both employer A and employer C; and

(b) if both elections were fully effective their combined effect would be that more than the contribution deficit would be paid to the Secretary of State,

the election by employer B or as the case may be, employer C shall have full effect but the election by employer A shall have effect only to the extent of the difference (if any) between the contribution deficit and the amount which is the subject of the election by employer B or employer C.

Payment by employers to Secretary of State

G7

(1) The employer of a person in pensionable employment is to pay to the Secretary of State, within 7 days after the end of each month—

(a) all amounts due from the person that are deductible from his salary under regulation C18(1),

(b) the contributions payable under regulation G5, and

in respect of his contributable salary for that month.

(2) The former employer of a person in pensionable employment who has made an election under regulation G6(3) (referred to in regulations C2(1)(6) and G6 as “employer A”) is to pay to the Secretary of State within 7 days after the end of each month the contributions in pursuance of the election.

(3) For the purposes of paragraph (1)—

(a) all salaries are to be treated as being payable monthly in arrears, and

(b) any arrears payable by reason of a retrospective increase in contributable salary are to be treated as having become payable in the month in which they were paid.

(4) If the full amount of any payment required by paragraph (1) or (2) is not received by the Secretary of State within 7 days after the end of the month, interest is payable by the employer or the former employer on the amount outstanding at 12% per annum, compounded with monthly rests, from the 8th day to the date of payment; but the Secretary of State may in any particular case waive the payment of interest.

Employers' additional contributions

G8

(1) Where an employer has elected under regulation C4(3) to pay additional contributions in respect of a person, payment to the Secretary of State of the lump sum referred to in paragraph 13(1) of Schedule 4 shall be made within the period referred to in paragraph 13(2) of that Schedule.

(2) Where a person receives an increase in contributable salary as is mentioned in regulation E31(11), the person’s last employer before he became entitled to payment of retirement benefits (“the former employer”) may make an election under paragraph (3).

(3) An election under this paragraph is an election to pay an additional contribution of

$$A-B-C$ where— A is the actuarial value of the retirement benefits to which the person would be entitled calculated by reference to the salary he received, B is the actuarial value of the retirement benefits to which the person would be entitled if he was treated as receiving the increase in his contributable salary referred to in regulation E31(11), and C is the aggregate of contributions which would be repaid under regulation H6 if no election had been made.$

(4) An election under paragraph (3) may be made by giving written notice to the Secretary of State no later than six weeks after the date on which the person became entitled to payment of retirement benefits.

(5) Where an election is made under paragraph (3) the payment to the Secretary of State under the election shall be made within 14 days after the date of the election.

(6) If the full amount of payment under the election under paragraph (3) is not received by the end of the period referred to in paragraph (5), interest is payable by the former employer on the amount outstanding at 12% per annum compounded with monthly rests from the day after the end of the period referred to in paragraph (5) to the date of payment.

PART H — MISCELLANEOUS AND SUPPLEMENTAL

Modified application in case of employment at reduced salary

H1

(1) If—

(a) a person who has been in pensionable employment either—

(i) continues to be employed by the same employer, or

(ii) ceases to be employed and is re-employed within six months (whether by the same or a different employer),

at a reduced rate of contributable salary, and

(b) where he continues to be employed by the same employer, is employed in a different post, and

(c) he does not make an election under regulation C2(1) that his contributable salary is to be treated as having continued at the previous rate, and

(d) the relevant employer notifies the Secretary of State in writing of the matters specified in paragraph (2) before—

(i) the date which is 3 months after the first day of his employment at the reduced rate, or

(ii) 3rd May 1998,

whichever is the later

(e) the application to him of this paragraph would, taking into account prospective increases under the Pensions (Increase) Act 1971 of benefits under Part E, be beneficial,

these Regulations have effect in relation to him with the modifications set out in Part II of Schedule 10.

(2) For the purposes of paragraph (1)(d) the matters which are to be notified to the Secretary of State are—

(a) where the person continues to be employed with the same employer or ceases to be employed and is re-employed by the same employer, that the person’s employment at a reduced rate of contributable salary is in the interests of the efficient discharge of the employer’s functions, and

(b) where the person ceases to be employed by one employer and is re-employed by a different employer—

(i) that the person had provided satisfactory service throughout the period of the person’s employment with the relevant employer; and

(ii) that the person had ceased employment with the relevant employer with the intention of seeking employment in a new post with less responsibility.

(3) For the purpose of this regulation—

(a) the contributable salary of a person in part-time employment is to be taken to be what it would have been if the employment had been full-time, and

(b) the “relevant employer” is—

(i) where the person ceases to be employed by one employer and takes up employment with a different employer, the person’s former employer, and

(ii) in any other case, the person’s employer.

(4) A second or subsequent application of paragraph (1) does not affect its previous operation.

Modified application in certain other cases

H2

(1) In relation to persons who made an election under regulation 4 of the Teachers' Superannuation (Policy Schemes) Regulations 1979³⁶ these Regulations have effect with the modifications set out in Part III of Schedule 10.

(2) In relation to persons with admitted service these Regulations have effect with the modifications set out in Part IV of Schedule 10.

(3) In relation to persons with specified country service these Regulations have effect with the modifications set out in Part V of Schedule 10.

(4) In relation to certain persons who were formerly members of the National Health Service Pension Scheme these Regulations have effect with the modifications set out in Part VI of Schedule 10.

Records and information

H3

(1) The employer of a person in pensionable employment is to record for each financial year—

(a) the rate of the person’s salary,

(b) the amount of his contributable salary,

(c) where during the financial year the person has spent one or more periods in part-time pensionable employment, the amount which his contributable salary would have if the employment had been full-time throughout the year,

(d) any money value forming part of his contributable salary by virtue of regulation C1(1)(d) (accommodation and related services),

(e) the contributions deducted under regulation C18(1),

(f) the period during which he was in pensionable employment, and

(g) the dates of any absence on sick leave or maternity leave, and the amount of salary paid during it.

(2) Employers are, within such reasonable time as he may require, to make to the Secretary of State such reports and returns, and to give him such information about persons who are or have been in pensionable employment, as he may reasonably require for the purposes of his functions under these Regulations; and such persons, and their personal representatives, are to give him such information and to produce such documents as he may reasonably require for those purposes.

Payments in respect of deceased persons

H4

(1) This regulation applies where a person dies and the total of—

(a) any sums that were due to him under these Regulations, and

(b) any sums payable under these Regulations to his personal representatives,

(“the amount due”) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965³⁷ and applying in relation to the death.

(2) Where this regulation applies the Secretary of State may, without requiring the production of probate or other proof of title, pay the amount due—

(a) to the personal representatives, or

(b) to the person, or to or among any one or more of any persons, appearing to him to be beneficially entitled to the estate.

Revaluation of guaranteed minimum in certain cases

H5

(1) This regulation applies where a person has ceased to be in pensionable employment and has taken a right to a cash equivalent by requiring the Secretary of State to use the cash equivalent wholly or partly in the way specified in section 95(2)(c) of the 1993 Act (purchase of annuity).

(2) Where this regulation applies, to the extent that the person’s guaranteed minimum is otherwise appropriately secured within the meaning of section 19(3) of the 1993 Act—

(a) for the purposes of section 14(2) of that Act (amount of guaranteed minimum) the person’s earnings factors shall be determined by reference to the last order under section 21 of the Social Security Pensions Act 1975³⁸ or section 148 of the Social Security Administration Act 1992³⁹ to come into force before the end of the tax year in which his service was terminated and without reference to the last such order to come into force before the end of the final relevant year, and

(b) the weekly equivalent mentioned in section 14(2) of the 1993 Act shall be increased in accordance with any additional requirements for the time being prescribed for the purposes of section 55(5) of that Act (exclusion from liability to pay a limited revaluation premium).

(3) In this regulation “final relevant year” has the meaning given in section 16(5) of the 1993 Act.

Repayment of contributions where an election is not made under regulation G8

H6

(1) This regulation applies where—

(a) a person receives an increase in contributable salary as is mentioned in regulation E31(11), but

(b) no election under regulation G8(3) has been made.

(2) Where this regulation applies the Secretary of State shall repay—

(a) to the person who was in pensionable employment a sum equivalent to A−B, and

(b) to that person’s last employer before he became entitled to retirement benefits a sum equivalent to C−D.

(3) In paragraph (2) above—

A is the aggregate of the contributions paid by the person under regulation C3, C4, C6 or C11 during the relevant period,

B is the aggregate of the contributions which would have been paid under regulation C3, C4, C6 or C11 during the relevant period if the person had actually received the salary which he was treated as having received under regulation E31(11),

C is the aggregate of contributions paid by the person’s employer under regulation G5 during the relevant period, and

D is the aggregate of the contributions which would have been paid by the person’s employer under regulation G5 during the relevant period if the person had actually received the salary which he was treated as having received under regulation E31(11),

and in this paragraph the “relevant period” is the period which started when the person received the increase in contributable salary as mentioned in regulation E31(11) and ended when the person became entitled to the payment of retirement benefits.

Extension of time

H7

The Secretary of State may in any particular case extend, or treat as having been extended, the time within which anything is required or authorised to be done under these Regulations.

Calculation of full-time equivalent salary

H8

Where any reference occurs in these Regulations, in relation to a person who is in, or has spent any period in, part-time employment to the amount which his contributable salary would have been if he had been employed full-time then, in a case where the person’s contract entitles him to remuneration at a rate which is not expressed as a proportion of the annual, termly or monthly rate for a comparable full-time employment, the amount which his contributable salary would have been if the employment had been full-time shall be calculated on the same basis as is used for the calculation of the person’s salary in the part-time employment in question.

Determination of questions

H9

All questions arising under these Regulations are to be determined by the Secretary of State.

Election in respect of protected benefits

H10

(1) Where—

(a) apart from this regulation, any provision of these Regulations, which re-enacts with any modification any provision revoked by these Regulations, would place any person to whom a protected benefit is or may become payable in a worse position than he would have been in if that modification had not been made, and

(b) that person so elects, by giving written notice to the Secretary of State before 3rd May 1998,

then, subject to paragraph (3), these Regulations shall have effect, in relation to him and to that benefit as if these Regulations had re-enacted the revoked provision without modification.

(2) In this regulation “protected benefit” means a benefit payable to, or in respect of, a person who before 3rd February 1998—

(a) was employed in pensionable employment but ceased to be so employed (whether or not he has subsequently become re-employed in pensionable employment); or

(b) died.

(3) If an election under paragraph (1) is made in relation to a benefit of a person who is in pensionable employment or who subsequently becomes re-employed in pensionable employment—

(a) the election shall have effect in relation to the benefit only to the extent that it accrues or has accrued by virtue—

(i) of periods of reckonable service before the cessation referred to in paragraph 2(a) (or, if there had been more than one cessation, the last of them before 3rd February 1998, or

(ii) of contributions paid in respect of such periods of reckonable service; and

(b) in determining entitlement to, or the amount of, the benefit to that extent, he shall be treated as if he had never re-entered pensionable employment again at any time after the cessation referred to in paragraph (2)(a) (but without prejudice to the application of this paragraph);

and these Regulations shall apply accordingly.

Consequential amendments of the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994

H11

(1) The Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994⁴⁰ shall be amended as follows.

(2) In regulation 2(2) for the words “references to the 1988 Regulations are references to the Teachers' Superannuation (Consolidation) Regulations 1988” there shall be substituted the words “references to the 1997 Regulations are references to the Teachers' Pensions Regulations 1997”.

(3) In regulation 2(3)—

(a) in the definition of “dependant” for the words “regulation E21 of the 1988 Regulations” there shall be substituted the words “regulation E22 of (as read with paragraph 14 of Schedule 15 to) the 1997 Regulations” and for the words “regulation E22 of the 1988 Regulations” there shall be substituted the words “regulation E23 of the 1997 Regulations”.

(b) in the definitions of “pensionable employment”, “reckonable service” and “retire” for the words “the 1988 Regulations” there shall be substituted the words “the 1997 Regulations”; and

(i) in sub-paragraph (a) for the words “regulation C1 of the 1988 Regulations” there shall be substituted the words “regulations C1 and C2 of the 1997 Regulations”; and

(ii) in sub-paragraph (b) for the words “regulation C8 or C8A of the 1988 Regulations” there shall be substituted the words “regulation C9 or C10 of the 1997 Regulations”.

(4) In regulation 7(2)—

(a) in sub-paragraph (a) for the words “the 1988 Regulations” there shall be substituted the words “the 1997 Regulations”; and

(b) in sub-paragraph (c) for the words “regulation C8 or C8A of the 1988 Regulations” there shall be substituted the words “regulation C9 or C10 of the 1997 Regulations”.

(5) In regulation 8(3) (in the definition of “C”) for the words “regulation C16(2) of the 1988 Regulations” there shall be substituted the words “regulation C18(2) of the 1997 Regulations”.

(6) In regulation 11(2) for the words “the 1988 Regulations” there shall be substituted the words “the 1997 Regulations”.

(7) In regulation 12(11) for the words “the 1988 Regulations” there shall be substituted the words “the 1997 Regulations”.

(8) In regulation 15(1)(b) for the words “regulation C13 of the 1988 Regulations” there shall be substituted the words “regulation C15 of the 1997 Regulations”.

(9) In regulation 16(3) for the words “E19(7) of the 1988 Regulations” there shall be substituted the words “E20(7) of the 1997 Regulations”.

(10) Regulation 20(5) shall cease to have effect.

(11) In paragraphs 3 and 4(1) of the Schedule for the words “regulation C8 or C8A of the 1988 Regulations” there shall be substituted the words “regulation C9 or C10 of the 1997 Regulations”.

(12) In paragraph 5(2) of the Schedule for the words “regulation C1(13) or C1(14) and (15) of the 1988 Regulations” there shall be substituted the words “regulation C1(9) or C1(10) and (11) of the 1997 Regulations”.

(13) In paragraph 11(1) of the Schedule for the words “regulation E4(7) of the 1988 Regulations” there shall be substituted the words “regulation E4(5) of the 1997 Regulations”.

(14) In paragraph 12 for the words “regulation E4(6) of the 1988 Regulations” there shall be substituted the words “regulation E4(4) of the 1997 Regulations” and for the words “regulation E8 of the 1988 Regulations” there shall be substituted the words “regulation E8 of the 1997 Regulations”.

Revocations, savings and transitional provisions

H12

(1) Subject to the provisions of Schedule 15 the Regulations specified in Schedule 14 are revoked.

(2) Schedule 15 has effect for the purpose of making savings and transitional provisions consequential on the making of these Regulations.

(3) Nothing in Schedule 15 affects the general operation of sections 16 and 17 of the Interpretation Act 1978⁴¹.

Amendments to, and modifications of, the Teachers' Superannuation (Consolidation) Regulations 1988

H13

(1) From 1st September 1997 the Teachers' Superannuation (Consolidation) Regulations 1988⁴² shall have effect with the amendments specified in Part I of, and the modifications specified in Part II of, Schedule 16.

(2) The amendments specified in Part I of that Schedule shall not however apply in relation to any person who became entitled to payment of retirement benefits before 1st September 1997 (whether or not he subsequently became entitled to such benefits by virtue of regulation E15 of those Regulations on or after that date).

SCHEDULE 1 — GLOSSARY OF EXPRESSIONS

Expression	Meaning
“Act”	Any reference to an Act of a specified year (other than the 1991 Act, the 1993 Act, the 1995 Act or the 1996 Act or references in paragraphs 11 or 12 of Schedule 2) is a reference to an Act relating to the superannuation of teachers enacted in that year.
“The 1991 Act”	The School Teachers' Pay and Conditions Act 1991⁴³.
“The 1993 Act”	The Pension Schemes Act 1993⁴⁴.
“The 1995 Act”	The Pensions Act 1995⁴⁵.
“The 1996 Act”	The Education Act 1996⁴⁶.
“The Taxes Act”	The Income and Corporation Taxes Act 1988⁴⁷.
“The Modification Regulations”	The National Insurance (Modification of Teachers Pensions) Regulations 1948⁴⁸.
“The 1966 Regulations”	The Teachers' Superannuation (Family Benefits) Regulations 1966⁴⁹.
“The 1967 Regulations”	The Teachers' Superannuation Regulations 1967⁵⁰.
“The 1970 Regulations”	The Teachers' Superannuation (Family Benefits) Regulations 1970⁵¹.
“The 1976 Regulations”	The Teachers' Superannuation Regulations 1976⁵².
“The 1988 Regulations”	The Teachers' Superannuation (Consolidation) Regulations 1988⁵³.
“Accepted school”	Construe in accordance with regulation B3.
“Actuarial”	Determined by, or in accordance with tables prepared by, the Government Actuary.
“Actuarial reduction”	In relation to a retirement pension or retirement lump sum, the process of multiplying a retirement pension or retirement lump sum by the appropriate factor as required by regulation E5(3) or E6(3).
“Additional contributions”, “additional period”	In relation to family benefits, the expressions are to be construed in accordance with paragraph 1(3) of Schedule 6.
“Admitted service”	Service to which, immediately before 1st May 1975, Part VIII of the 1967 Regulations applied.
“Appropriate factor”	The percentage being— in relation to a retirement pension and to the retirement benefits referred to in regulations E21 and E25, the factor set out in Table 1 in Schedule 9 or, in the case of a person referred to in paragraph 37 in Part VI of Schedule 10 (certain nurses, physiotherapists, midwives, health visitors and mental health officers), set out in Table 3 in Schedule 9, and in relation to a retirement lump sum, the factor set out in Table 2 in Schedule 9 or, in the case of a person referred to in paragraph 37 in Part VI of Schedule 10 (certain nurses, physiotherapists, midwives, health visitors and mental health officers), set out in Table 4 in Schedule 9, corresponding to the age of that person in complete years and months when he became entitled to payment of a retirement pension and retirement lump sum.
“Approved pension scheme”	An occupational pension scheme which— is approved under Chapter I of Part XIV of the Taxes Act and does not fall within section 591(2)(h) of that Act, or immediately before 1st November 1988 was an approved superannuation scheme for the purposes of Part IV of the 1976 Regulations, or is a relevant statutory scheme defined by section 611A of the Taxes Act⁵⁴.
“Average salary”	Construe in accordance with regulation E31.
“Cash equivalent”, “part cash equivalent”	The first expression means a cash equivalent mentioned in section 94(1) of the 1993 Act; the second expression means the cash equivalent of any part of the benefits mentioned in that subsection which is prescribed under section 98(1) of that Act (continuation in employment after termination of pensionable service).
“Child”	Construe in accordance with regulation E22 (as read with paragraph 14 of Schedule 15).
“Club scheme”	An approved superannuation scheme which— is a contracted-out scheme or is a scheme established and maintained in the Channel Islands which is not a contracted-out scheme, is a final salary scheme, is a scheme which is open to new participants (“open scheme”) or, if not a scheme so open (“closed scheme”), is a scheme whose trustees or managers also provide an open scheme which is a scheme for new employees of the same employer and of the same grade or level of post as participants of the closed scheme, and is a scheme whose trustees or managers have undertaken to comply with the reciprocal arrangements for the payment and receipt of transfer values agreed from time to time between the trustees or managers of such a scheme.
“Comparable British service”	Service which is or was at any time pensionable under a superannuation scheme for teachers in public employment in any part of the British Islands outside England and Wales.
“Contracted-out employment”, “contracted-out scheme”	Construe in accordance with sections 8(1) and 7(3) respectively of the 1993 Act.
“Contributable salary”	Construe in accordance with regulation C1.
“Contributions equivalent premium”	A premium under section 55(2) of the 1993 Act.
“Contributions refund period”	A period in respect of which contributions have been or are to be paid and— have not been, or fallen to be treated as having been, returned, or have been returned but have since been repaid.
“Credited service”	The meaning given in paragraph 1(6) of Schedule 6.
“Effective reckonable service”	Construe in accordance with regulation E32.
“Employment”	Employment under a contract of service.
“Entitled”	Any reference to a person entitled to payment of retirement benefits is to be construed as including a reference to a person who has not applied for payment of them.
“Equivalent pension benefits”	The meaning given by section 57(1) of the National Insurance Act 1965⁵⁵.
“Excluded employment”	Employment which would be pensionable employment but for the fact that a person— Has made an election under regulation B5, or being in part-time employment has not made an election under regulation B1(4).
“Family benefits”	Benefits payable under regulations E22 to E30.
“Family benefit service”	Construe in accordance with regulation E28.
“Final salary scheme”	A scheme which provides for the calculation of retirement benefits based on— a person’s remuneration for any one of the 5 years preceding his retirement date, or the annual average of a person’s aggregate remuneration for any period of 3 or more consecutive years ending not earlier than 10 years before his retirement date.
“Full-time”	Employment is “full-time” if the contract so describes it (whether expressly or otherwise) and entitles the employee to remuneration at an annual, termly or monthly rate.
“Further education”	The meaning given in section 2(3) of the 1996 Act.
“Grant-maintained special school”	The meaning given in section 337(4) or 346(3) of the 1996 Act.
“Guaranteed minimum”	A guaranteed minimum under section 14 of the 1993 Act.
“Guaranteed minimum pension”	The meaning given in section 8(2) of the 1993 Act.
“Higher education”	The meaning given in section 120(1) of the Education Reform Act 1988⁵⁶.
“Incapacitated”	A person is incapacitated— in the case of a teacher, an organiser or a supervisor, while he is unfit by reason of illness or injury and despite appropriate medical treatment to serve as such and is likely permanently to be so, in any other case, while he is incapable by reason of infirmity of body or mind of earning his livelihood and is not maintained out of money provided by Parliament or raised by rates, or council tax levied by local authorities.
“Independent school”	The meaning given in section 463 of the 1996 Act.
“Member”	The meaning given in paragraph 1(1) of Schedule 6.
“Normal contributions”, “normal service”	Construe in accordance with paragraph 1(2) of Schedule 6.
“Occupational pension scheme”	The meaning given in section 1 of the 1993 Act.
“Organiser”	A person in employment which involves the performance of duties in connection with the provision of education or services ancillary to education.
“Part-time”	Employment is “part-time” if the contract requires the employee to work for less than the whole of the working week.
“Payment in lieu of contributions”	A payment in lieu of contributions under Part III of the National Insurance Act 1965.
“Pensionable employment”	In relation to any time before 1st November 1988, the expression means employment in reckonable service for the purposes of the 1976 Regulations or previous provisions. In relation to any time after 31st October 1988, the expression is to be construed in accordance with Part B.
“Personal pension scheme”	A personal pension scheme (within the meaning of section 1 of the 1993 Act) which has been approved by the Commissioners of Inland Revenue under Chapter IV of Part XIV of the Taxes Act or provisionally approved under section 655(5) of that Act.
“Previous provisions”	Provisions contained in or made under an enactment relating to the superannuation of teachers which were in force at any time before 1st January 1977.
“Qualified for retirement benefits”	Construe in accordance with regulation E3.
“Reckonable service”	Construe in accordance with regulation D1.
“Required percentage”	Construe in accordance with regulation G5.
“Retirement benefits”	Construe in accordance with regulation E2.
“Retirement lump sum”	A retirement lump sum payable under Part E.
“Retirement pension”	A retirement pension payable under Part E.
“Scheme managers”	In relation to a statutory scheme, the expression means the Minister of the Crown or local authority or police or fire authority administering the scheme; in relation to any other scheme, it means the person responsible for the management of the scheme.
“Services education officer”	An officer, other than one whose service as an officer qualifies him for retired pay, serving in the armed forces of the Crown as a teacher or supervisor and holding— a short-service commission in the Royal Navy, the regular Army, the Women’s Royal Naval Service or the Women’s Royal Army Corps, or a short or medium-service commission in the education branch or physical fitness branch of the Royal Air Force, or as an officer serving in either of those branches, a short-service commission in the Women’s Royal Air Force.
“Special school”	The meaning given in section 337 of the 1996 Act.
“Specified country service”	The expression includes— service before 25th March 1972 which was, for the purposes of Part IX of the 1967 Regulations, service in a specified country as a services civilian teacher, service after 24th March 1972 and before 1st January 1977 which, if section 25 of the Superannuation Act 1965⁵⁷ had continued in force, would have been such service as is mentioned in (a) above, and service after 31st December 1976 and before 1st January 1980 in continuation of such service as is mentioned in (b) above.
“State pensionable age”	Pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to the 1995 Act.
“Supervisor”	A person employed in a capacity connected with education which to a substantial extent involves the control or supervision of teachers.
“Tax year”	The 12 months beginning with 6th April in any year.
“Teacher’s pension”	An annual allowance which became payable under the 1976 Regulations or previous provisions or a retirement pension.
“Terminal sum”	The expression includes a retirement lump sum, a short-service incapacity grant, a refund of contributions and any sum payable on death.

SCHEDULE 2 — PENSIONABLE EMPLOYMENT

PART I — EMPLOYMENTS PENSIONABLE WITHOUT ELECTION

1

Teacher employed by, or in a school or institution providing further education or higher education (or both) maintained by, a local education authority.

2

Teacher in a special school which is not a grant-maintained special school or maintained by a local education authority.

3

Teacher in a school, other than a special school, in respect of which grants are made by the Secretary of State or a funding authority within the meaning of section 26 of the 1996 Act to the person responsible for its management.

4

Teacher in a grant-maintained special school.

5

Teacher, organiser or supervisor employed—

(a) in an independent school which is for the time being recognised by the Secretary of State as a city technology college, or, as the case may be, a city college for the technology of the arts, or

(b) in connection with a proposed independent school the proposals for which are for the time being recognised by the Secretary of State as proposals for a city technology college, or, as the case may be, a city college for the technology of the arts.

6

Teacher in an institution providing further education or higher education (or both) in respect of which grants are made to the governing body by the Secretary of State, by a body to which grants are made by the Secretary of State, or by a local education authority, other than—

(a) a university or college of a university, and

(b) the Royal College of Art.

7

Teacher in a university established on or after 6th May 1992 which, immediately before it became such, was an institution of higher education described in paragraph 6, whether or not that teacher was a teacher in that institution before it ceased to fall within that description and became a university.

8

Teacher employed in—

(a) a community home within the meaning of Part VI of the Children Act 1989⁵⁸.

(b) a voluntary home as defined in section 60 of that Act, or

9

Teacher employed by a local authority or a voluntary organisation in an establishment which provides facilities under arrangements approved under section 19 of the Children and Young Persons Act 1969⁵⁹.

10

Teacher in—

(a) a residential care home within the meaning of Part I of the Registered Homes Act 1984⁶⁰, or,

(b) a mental nursing home as defined in section 22 of the Act,

who, at any time before the commencement of Part III of the Mental Health Act 1959⁶¹, was in pensionable employment in a certified institution as defined in section 71 of the Mental Deficiency Act 1913⁶².

11

Teacher in a special hospital provided by the Secretary of State under section 4 of the National Health Service Act 1977⁶³ (“the 1977 Act”).

12

Teacher employed for the purpose of instructing, training, or superintending the occupation of persons suffering from mental impairment, severe mental impairment, psychopathic disorder or mental illness—

(a) in a hospital provided by the Secretary of State in accordance with the 1977 Act, or

(b) by a voluntary organisation to which—

(i) financial assistance is given by a local authority, or

(ii) facilities are made available under section 23 of the 1977 Act⁶⁴ or

13

Teacher employed by the Field Studies Council.

14

Teacher employed in pursuance of arrangements made by the Secretary of State with the governors of any establishment which, by virtue of the European Communities (European Schools) Order 1972⁶⁶, has the legal capacities of a body corporate.

15

Organiser employed as a youth and community worker by a local education authority for the purposes of their functions under section 15 or 508 of the 1996 Act.

PART II — EMPLOYMENTS PENSIONABLE ON ELECTION

16

Teacher in an institution for the further education and training of disabled persons.

17

Teacher employed in, or in connection with, an establishment for providing social or physical training, being training at that establishment in respect of which grants are made by the Secretary of State, the United Kingdom Sports Council, the English Sports Council or the Sports Council for Wales, whose principal duty is to attend the establishment and provide the training or supervise its provision.

18

Teacher employed by the Commonwealth Institute.

19

Teacher employed by a person to whom grants are made by either the Secretary of State or a local education authority in respect of expenditure incurred for the purpose for which the teacher is employed.

20

Organiser employed by—

(a) the United Kingdom Sports Council,

(b) the English Sports Council,

(d) any other body, except a local education authority, to which grants—

(i) are made by any of those Councils or by a local education authority, or

(ii) are or have been made by the Secretary of State,

in respect of expenditure incurred for the purpose for which the organiser is employed.

21

Teacher, supervisor or youth worker employed by the Ministry of Defence in service with the armed forces of the Crown or for purposes connected with the armed forces, unless—

(a) the Principal Civil Service Pension Scheme applies to him, or

(b) he was engaged outside the United Kingdom and had not previously been in other pensionable employment.

22

Services education officer.

23

Organiser employed as a youth and community worker by a body to whom grants are made by a local education authority in the exercise of their functions under section 15 or 508 of the 1996 Act.

24

Organiser employed by—

the Association of Business Schools

the Association of Christian Teachers

the Associated Examining Board

the Church of England Board of Education

the City and Guilds of London Institute

the Catholic Education Service

a Diocesan Board of Education established under the Diocesan Boards of Education Measure 1991⁶⁷

the East Midlands Further Education Council

the Edexcel Foundation

the Education 2000 Trust

the Field Studies Council

the Independent Schools Careers Organisation

the London Open College Federation

the National Nursery Examination Board

the National Society for Promoting Religious Education

the National Education Resources Information Service

the North East Religious Learning Resources Centre Limited

the North of England Institute for Christian Education

a Regional Advisory Council for Further Education

a Roman Catholic Diocesan Schools Commission

the Royal National Institute for the Blind

SCOPE

the Stapleford Centre

the Yorkshire and Humberside Association for Further and Higher Education

25

Teacher in a university who—

(a) was employed as a teacher in an institution providing further education or higher education (or both) described in paragraph 1 or 6 which has ceased to fall within that description and become part of the university, and

(b) was so employed immediately before it did so.

26

Teacher employed in—

the British School of Amsterdam (the Netherlands)

the British School of Brussels (Belgium)

the British School in the Netherlands

the British School of Paris (France)

St Julian’s School, Carcavelos (Portugal)

Mougins School, Mougins (France)

St George’s English School, Rome (Italy)

the British Embassy School, Athens (Greece) or

the British Primary School, Tervuren (Belgium).

SCHEDULE 3 — MAXIMUM LENGTH OF ADDITIONAL PERIODS

1

(1) Subject to paragraph 2, the maximum length of the period in respect of which an election may be made under regulation C4 or C9 is

$$A-B,$ where— A is the length of time specified in the second column of the Table below against the person’s adjusted age, and B is the length of any additional period already purchased or in the course of being purchased by him.$

Adjusted age	Length of time
Under 50	30 years
50 and under 51	23 years
51 and under 52	16 years
52 and under 53	9 years
53 and under 54	2 years
54 and over	Twice the difference in days between the adjusted age and 55 years

(2) A person’s adjusted age—

(a) if the person has continued in pensionable employment since the start of his first such employment and has not been credited with reckonable service on the acceptance of a transfer value in respect of comparable British service, is his age at the start of his first pensionable employment, and

(b) in any other case, is

$$C-D,$ where— C is the person’s age at the start of his most recent pensionable employment, and D is the total of the time he had then spent in pensionable employment and the length of any reckonable service with which he has been credited on the acceptance of a transfer value in respect of comparable British service.$

2

(1) This paragraph applies to a person who—

(a) has been credited with admitted service

(b) at the start of his most recent pensionable employment was entitled in respect of a former employment to material benefits, whether or not they had then become payable, or

(c) will become entitled to retirement benefits under the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994⁶⁸ or under a scheme approved by virtue of section 591(2)(h) of the Taxes Act.

(2) Material benefits comprise any benefits by way of pension, allowance, lump sum or gratuity expected to be paid when the person has attained the age of 60 and whose actuarial equivalent as an annuity for life from that age would be more than £260 a year.

(3) Where this paragraph applies and the number of years calculated in accordance with sub-paragraph (4) is lower than the number specified against the person’s adjusted age in the Table, paragraph 1(1) applies with the substitution of that lower number as “A”.

(4) The number of years is the highest one that secures that

$$E+F+G+H+Jdoes not exceed K,$ where E is the actuarial equivalent as an annuity for life from the age of 60 of any material benefits, F is the actuarial equivalent as such an annuity of any benefits attributable to admitted service, G is the actuarial value as such an annuity of any expected retirement benefits such as are mentioned in sub-paragraph (1)(c), H is the actuarial equivalent as such an annuity of the notional retirement lump sum, J is the annual amount of the notional pension, and K is two thirds of the notional average salary.$

(5) The notional retirement lump sum, pension and average salary—

(a) where the election is made before the person attains the age of 60, are those resulting from the assumptions that he continues in pensionable employment until that age and then becomes entitled to retirement benefits and that the salary scale applicable at the date of the election continues to apply, and

(b) where the election is made after the person has attained the age of 60, are those resulting from the assumptions that he ceased to be in pensionable employment on his 60th birthday and then became entitled to retirement benefits.

3

(1) This paragraph applies where a person—

(a) has elected to pay additional contributions under regulation C4, or

(b) has continued to pay additional contributions by virtue of paragraphs 1 to 6 or 8 of Schedule 5,

and before attaining the age of 60 and before the end of the period during which they were to be paid he ceases to be in full-time pensionable employment, otherwise than by reason of his death or his becoming incapacitated or becoming entitled to retirement benefits by virtue of regulation E4(5) (redundancy, etc).

(2) Where this paragraph applies, any right to elect to make a lump sum payment may be exercised only to the extent that it does not result in the addition to the service that the person would otherwise have been entitled to count as reckonable service of more than

$$(A×BC)-D,$ where— A is the longest period in respect of which he could have elected to pay the additional contributions, B is the length of his reckonable service, excluding any past period reckonable by virtue of additional contributions, when he ceased to be in full-time pensionable employment, C is the total of B and the period beginning at the cessation and ending immediately before his 60th birthday, and D is the length of the past period or periods reckonable at the time of the cessation by virtue of all additional contributions.$

SCHEDULE 4 — ADDITIONAL CONTRIBUTIONS FOR PAST PERIOD

PART I — METHOD A

1

(1) In this Part—

“the principal election” means the election under regulation C4(2);

“the past period” means the period specified under regulation C4(7)(a);

“the contribution period” means the period specified under regulation C4(7)(c).

(2) Any reference in this Part, in relation to a person who has spent any part of the contribution period in part-time employment, to a period which a person is entitled to count as reckonable service arising from the contribution period is a reference to a period calculated by applying the formula in regulation D1(2) to the contribution period.

(3) During any period for which a person is paying additional contributions for a current period under regulation C9 or C10, for the purposes of this Part—

(a) he is to be treated as being in full-time pensionable employment, and

(b) his contributable salary is the notional salary described in regulation C9(7)(a) or, as the case may be, regulation C10(4).

2

(1) The contribution period must be one of not less than one year, and begins on the first day of the month following the expiry of a period of one month from the date of acceptance of the election by the Secretary of State.

(2) The contribution period and the past period must be such that

$A+B$

does not exceed 15% of the person's contributable salary for the time being, where—

A is the rate at which the additional contributions are payable, and

B is the rate at which he pays other contributions under Part C (except any treated for the purposes of regulation G2 as employers' contributions) or towards the provision of a pension otherwise than under these Regulations.

3

Subject to paragraphs 4 and 5, the rate at which the additional contributions are payable is the percentage ascertained from Table 1 below of the person’s contributable salary for the time being.

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