The Superannuation (English Teaching and Scottish Local Government) Interchange Rules 1968

PART II TRANSFER FROM TEACHING SERVICE TO LOCAL GOVERNMENT EMPLOYMENT

Application

4.—(1) Except as hereinafter provided, this Part shall apply to a person who—

(a) enters, or before the operative date entered, local government employment within the prescribed period after ceasing to be employed in teaching service;

(b) before or within three months after entering local government employment or within six months after the operative date, whichever period shall last expire, or within such longer period as the fund authority may with the agreement of the Secretary of State in any particular case allow, notifies that authority in writing that he desires this Part to apply to him and furnishes that authority with particulars in writing of any national service in which he has been engaged since ceasing to be employed in teaching service; and

(c) within three months after entering local government employment or within six months after the operative date, whichever period shall last expire, or within such longer period as the fund authority may in any particular case allow, pays to that authority an amount equal to any repaid contributions paid to him after he last ceased to be employed in teaching service, together with any compound interest thereon payable in accordance with paragraph (2) below.

(2) For the purposes of paragraph 1(c) above—

(a) compound interest shall not be payable unless the period between a person's ceasing to be employed in teaching service and entering local government employment exceeds one year;

(b) compound interest shall be calculated on the amount of the repaid contributions at three per cent per annum with half-yearly rests from the day one year after that on which the person ceased to be employed in teaching service or from the day on which repaid contributions were paid to him, whichever shall be the later, to the day on which he notified the fund authority as required by paragraph (1)(b) above; and

(c) if the amount of compound interest calculated as aforesaid exceeds a sum equal to one half of the difference between the amount of the transfer value payable under rule 6 and the amount of the transfer value which would have been so payable if calculated by reference to the person's age on ceasing to be employed in teaching service, it shall be reduced to that sum.

Excepted Cases

5.  This Part shall not apply to a person who—

(a) has received payment of any pension (other than repayment of contributions) under the Teachers Acts or the Teachers' Regulations;

(b) is a person in respect of whom a transfer value has been paid otherwise than under these Rules by the Secretary of State since he last ceased to be employed in teaching service;

(c) last ceased to be employed in teaching service before 4th February 1948; or

(d) last ceased to be employed in teaching service on or after 4th February 1948 but before the operative date, unless—

(i) he has been employed in local government employment without a break of twelve months or more at any one time from the date when he ceased to be employed in teaching service until the operative date or, if he ceased to be employed in local government employment before the operative date, until the date when he so ceased; and

(ii) if he ceased to be employed in local government employment before the operative date, the Secretary of State and the local authority maintaining the fund to which he was last a contributor agree that this Part shall apply to him.

Transfer Value

6.—(1) In respect of a person to whom this Part applies the Secretary of State shall, out of moneys provided by Parliament, pay to the fund authority a transfer value of an amount calculated in accordance with the following provisions of this rule.

(2) Subject as hereafter in this rule provided, the transfer value shall be an amount equal to the transfer value which would have been payable under the Transfer Value Regulations if the person, at the date when he ceased to be employed in teaching service, had ceased to be a contributory employee under one local authority and had become such an employee under another local authority and had been entitled to reckon as contributing service his reckonable service and his service reckonable for the purposes of Parts VII,IX and X of the Teachers' Regulations at the length at which it is so reckonable.

(3) For the purpose of calculating the amount of a transfer value any period of service which, having originally been non-contributing service or non-contributing service for the purposes of regulations made under section 67 of the National Health Service Act 1946 or section 66 of the National Health Service (Scotland) Act 1947 became reckonable as reckonable service by virtue of such regulations or of rules made under section 2 of the Act shall be treated as non-contributing service.

(4) For the purposes of paragraph (2) above service which is reckoned as contributing service shall be deemed to have been affected or modified in accordance with regulations applicable to contributing service made under section 110 of the National Insurance Act 1965or under any provision corresponding thereto contained in an enactment repealed by that Act, in like manner and to the like extent, as nearly as may be, as it was affected or modified by other such regulations.

(5) In calculating the amount of a transfer value there shall be excluded—

(a) any period of war service within the meaning of the Teachers Superannuation (War Service) Act 1939 and of national service within the meaning of the Teachers Superannuation (National Service) Rules 1949(1) in respect of which, at the time the transfer value is paid, the contributions remain unpaid; and

(b) any period of previous employment and any period additional to actual service in respect of which the person was immediately before ceasing to be employed in teaching service paying voluntary contributions and in respect of which, at the time the transfer value is paid, he has not elected to continue to pay such contributions.

(6) In respect of a person who ceased to be employed in teaching service more than one year before the operative date the amount of the transfer value shall, except in a case to which paragraph (7) below applies, be—

(a) calculated by reference to his age on the operative date; and

(b) where either paragraph (2) or paragraph (3) of rule 3 applies, reduced by the amount of any compound interest payable by him in accordance with rule 4(2).

(7) In respect of a person who became employed in local government employment on or after the operative date and to whom either paragraph (2) or paragraph (3) of rule 3 applies the amount of the transfer value shall be—

(a) calculated by reference to his age on the date on which he became employed in local government employment; and

(b) reduced by the amount of any compound interest payable by him in accordance with rule 4(2).

Reckoning of Service

7.—(1) Subject as hereafter in this rule provided, so much service as is taken into account under rule 6 for the purpose of calculating the amount of the transfer value payable in respect of a person shall be reckoned as contributing service or as service under a local Act scheme or a period of contribution for the purposes of such a scheme.

(2) So much service as is taken into account as non-contributing service under rule 6 for the purpose of calculating the amount of the transfer value payable in respect of a person shall be reckoned as non-contributing service.

(3) Any service of a person to whom this Part applies which under the Teachers' Regulations is reckonable only for the purpose of calculating the amount of any pension payable to or in respect of him or only for the purpose of determining whether he is entitled to any pension shall be reckoned only for the corresponding like purpose under the Acts of 1937 to 1953 or a local Act scheme.

(4) Except as in this rule before provided, a person to whom this Part applies shall not be entitled under section 12(2) of the Act of 1937 or any corresponding provision of a local Act scheme to reckon as service any local government employment prior to the date on which he became employed in teaching service if a transfer value has been paid in respect of that local government employment under rule 17 or under any corresponding provision contained in other rules made under section 2 of the Act.

Voluntary Contributions

8.—(1) A person to whom this Part applies may elect to continue to pay voluntary contributions being paid by him immediately before ceasing to be employed in teaching service.

(2) If a person elects as aforesaid and—

(a) within three months of becoming employed in local government employment, or within such longer period as the fund authority may in any particular case allow, pays to that authority a sum equal to the aggregate of any sum paid to him by way of return of voluntary contributions on or after ceasing to be employed in teaching service, any interest added thereto and any amount deducted therefrom in respect of liability to income tax by reason of the payment; and

(b) thereafter pays to that authority any amounts outstanding in respect of those voluntary contributions at the times at which and in the manner in which they would have been payable if he had remained in teaching service

his local government employment shall be affected in the manner prescribed by the following provisions of this rule.

(3) In respect of voluntary contributions made in respect of any period of previous employment and any period additional to actual service, the person shall enjoy rights and be subject to liabilities as if those years were added years in respect of which payments are being made in his local government employment under regulation 12 of the Benefits Regulations or, if in his local government employment he is subject to a local Act scheme, under such provisions corresponding to the said regulation 12 or to regulation 5 of the Local Government Superannuation (Reckoning of Service on Transfer) (Scotland) Regulations 1954(2) as are contained in that scheme.

(4) In respect of voluntary contributions other than those to which paragraph (3) above applies, the person shall be treated as if those contributions had been completed immediately before he ceased to be employed in teaching service.

Computation of Contributions

9.—(1) Where a person to whom this Part applies ceases to be employed in local government employment or dies, then, in calculating any amount payable or in respect of him by way of return of contributions, the amount of his contributions in respect of service reckonable in accordance with rule 7(1) shall be taken to include such amount as would have been payable by way of return of contributions under the Teachers Acts or the Teachers' Regulations if, on his ceasing to be employed in teaching service, he had been entitled to be repaid his contibutions without interest.

(2) Where an amount payable by way of return of contributions or by way of benefit is a sum equal to, or which falls to be calculated by reference to, the amount of a person's contributions with compound interest thereon, compound interest shall also be payable in respect of the amount by which those contributions are increased under the last preceding paragraph, calculated—

(a) as respects the period ending immediately before the day on which he entered local government employment, at the rate at which it would have been calculated under the Teachers Acts or the Teachers' Regulations, as the case may be, if on ceasing to be employed in teaching service he had been entitled to a return of contributions together with compound interest thereon; and

(b) as respects the period beginning with the date on which he entered local government employment, in accordance with the provisions of section 10 of the Act of 1937 or, as the case may be, the corresponding provisions of the relevant local Act scheme.

(3) Notwithstanding anything in this rule previously contained, the sum by which contributions are increased by virtue of paragraph (1) or (2) above shall not include—

(a) any sum in respect of contributions which, on or after the person's ceasing to be employed in teaching service, were returned to and retained by him; or

(b) any amount in respect of voluntary contributions which are not continued in pursuance of rule 8 of these Rules.

Benefits under Teachers' Regulations

10.  Subject to the provisions of Part III and of other rules made under section 2 of the Act, no payment of any pension shall be made under the Teachers' Regulations to any person or his personal representatives in respect of any service which is taken into account in calculating the amount of a transfer value under rule 6.

Modification of Contributions and Benefits by reason of National Insurance

11.—(1) The modifications for which the Local Government Modification Regulations provide shall not apply to a person to whom this Part applies if either—

(a) he ceased to be employed in teaching service before 1st April 1967 and at the time of so ceasing was not subject to the modifications of the Teachers Acts made by the Teachers Modification Regulations; or

(b) he ceased to be employed in teaching service on or after 1st April 1967 and at the time of so ceasing was not subject to paragraph 2 of Schedule 5 to the Teachers' Regulations.

(2) Without prejudice to the operation of the National Insurance (Modification of Local Government Superannuation Schemes) No. 2 (Scotland) Regulations 1961 (3), the modifications for which the Local Government Modification Regulations provide shall apply to any other person to whom this Part applies as if any service reckonable in accordance with rule 7(1) were service for the purposes of the Acts of 1937 to 1953 or service for the purposes of a local Act scheme, as the case may be, rendered on or after 5th July 1948.

(3) Where any pension which might have become payable under the Teachers Acts or the Teachers' Regulations to a person to whom this Part applies would have been subject to modification under the Teachers Modification Regulations or Part III of Schedule 5 to the Teachers' Regulations by reference to a table and his age at a given date, the provisions of the Local Government Modification Regulations modifying pensions in similar manner shall apply to that person and for that purpose the relevant date shall be that which was relevant for the purposes of the Teachers Modification Regulations or the said Schedule 5, as the case may be.

(4) In this rule “the Teachers Modification Regulations” means the National Insurance (Modification of Teachers Pensions) Regulations 1948(4), as amended by the National Insurance (Modification of Teachers Pensions) Amending Regulations 1956(5) .

Questions and Appeals

12.  The provisions of section 30 of the Act of 1937 (which section relates to the decision of questions and appeals) shall have effect in relation to a person (not being a local Act contributor), to whom this Part applies as if the reference therein to regulations made under that Act included a reference to these Rules

Application of Section 11(3) of Act of 1953

13.—(1) Section 11(3) of the Act of 1953 (which sub-section enables certain persons who would otherwise be debarred on grounds of age from becoming contributory employees or local Act contributors to become such employees or such contributors and to reckon previous pensionable employment) shall apply to a person who before the operative date entered the employment of a local authority after ceasing to be employed in teaching service on or after 4th February 1948.

(2) For the purposes of paragraph (1) above section 11(3) of the Act of 1953 shall have effect as if for the references therein to the passing of the Act there were substituted references to the coming into operation of these Rules.

(1)

(1949 I, p. 1533).

(2)

(1954 II, p. 1680).

(3)

(1961 I, p.1125).

(4)

(Rev. XVI, p.298: 1948 I p.2851).

(5)

(1956 I, p.1643).