The Teachers' Pensions Regulations 1997

• in regulation E31 (which re-enacts with modifications regulation E29 of the 1988 Regulations) the provisions for determining a person’s average salary are changed with the effect that for average salary purposes regular part-time employment counts in the same way as full-time employment. Average salary is to be calculated by reference to the salary for the best 365 consecutive days of pensionable employment (rather than reckonable service) during the last 3 years of pensionable employment (rather than reckonable service); effectively, by virtue of regulation H13 and Schedule 16, this provision has effect from 1st September 1997.

• new provision is made (regulation E31(11) to (14)) in a case where in any financial year during the average salary period a person has received an increase in contributable salary which is greater than 10% more than the “standard increase” (as defined). Under such circumstances the person will be treated as having received a salary increase of 10% more than the standard increase, unless the person’s employer elects to pay an additional contribution under regulation G8;

• the rate at which interest is paid on late payment of certain benefits is changed from being 1% above base rate to base rate. Additionally, there are some minor changes in the definition of “base rate” (regulation E34);

• regulation G7 makes provision, in a case where a person has made an election under regulation C2, for an employer or former employer to pay employers' contributions on the difference between the old rate of salary and the new. Regulation G7 also makes provision where the teacher moves to a new employer. Under such circumstances the former employer’s election can continue if confirmed by the former employer or the new employer can elect to pay employers' contributions on the difference in salary; this provision has effect from 1st September 1997;

• regulation G8 makes provision for the additional contribution referred to in regulation E31(11). It is the actuarial value of the difference between retirement benefits based on the actual contributable salary and such benefits based on the contributable salary as if the person had received a salary increase of only 10% more than the standard increase.

• regulation H1 (which re-enacts with modifications provisions formerly in regulation H1 of the 1988 Regulations and which provides that the Regulations are modified by Schedule 10 in certain cases where a person’s salary is reduced) is extended to apply in certain cases where a person leaves employment with one employer and takes up employment with a new employer at a reduced salary. This provision has effect from 1st September 1997;

• regulation H6 provides for repayment of certain contributions where a person received an increase in salary such as is referred to in regulation E31(11) but no election under regulation G8 is made.

• regulation H9 (which provides for determination of questions) no longer provides that a determination by the Secretary of State shall be final. This is in consequence of the extension of the jurisdiction of the Pensions Ombudsman;

• in Schedule 1 “excluded employment” is defined as including part-time employment which would be pensionable if the person had so elected;

• in Schedule 3 the definition of “material benefits” in paragraph 2 is changed;

• the figures in Tables 1 to 3 in Schedule 4 (additional contributions for past period) are changed;

• the provisions formerly in Schedule 9 to the 1988 Regulations have been simplified;

• the provisions formerly in Part VI of Schedule 10 to the 1988 Regulations (which made special provision for service before 1st April 1945) are not re-enacted.

Footnotes