Statutory Instrument 1997 No. 676 (S.46)

The Teachers' Superannuation (Scotland) Amendment Regulations 1997

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STATUTORY INSTRUMENTS

1997 No. 676 (S.46)
EDUCATION, SCOTLAND
The Teachers' Superannuation (Scotland) Amendment Regulations 1997

	Made	5th March 1997
	Laid before Parliament	11th March 1997
	Coming into force	1st April 1997

The Secretary of State, in exercise of the powers conferred by sections 9 and 12 of, and Schedule 3 to, the Superannuation Act 1972[1] and of all other powers enabling him in that behalf, after consulting with representatives of education authorities and of teachers and with such representatives of other persons likely to be affected by the Regulations as appear to him to be appropriate in accordance with section 9(5) of that Act, and with the consent of the Treasury[2], hereby makes the following Regulations:

Citation, commencement and effect, and interpretation
1 . - (1) These Regulations may be cited as the Teachers' Superannuation (Scotland) Amendment Regulations 1997.

(2) These Regulations shall come into force on 1st April 1997 and shall have effect-

    (3) In these Regulations, "the 1992 Regulations" means the Teachers' Superannuation (Scotland) Regulations 1992[3].

Amendment of 1992 Regulations
     2 . The 1992 Regulations shall be amended in accordance with the following provisions of these Regulations.

Accepted school
     3 . In regulation B4(2)(a)(ii) for "by regulation G5 and G6 (payment of employers' contributions)" there shall be substituted "under Part G to pay employers' contributions".

Exclusion from pensionable employment
     4 . In regulation B5 there shall be added at the end the following paragraph:-

" (5) A person is not in pensionable employment in respect of any employment which commenced on or after 1st April 1997 while he is entitled to be paid a teacher's pension, including cases where the annual rate of the pension has been reduced to zero in accordance with regulation E15 (abatement of retirement pension).".

Additional contributions to purchase past added years
5 . In regulation C3-

(a) after paragraph (2) there shall be inserted the following paragraph:-

" (2A) Subject to paragraphs (6), (7), (9) and (12A) the employer of a person to whom this regulation applies may elect to pay additional contributions in respect of the person in accordance with Part II of Schedule 4 ("Method B").";

(b) paragraph (4) shall be deleted;

(c) in paragraph (12) for "under this regulation" there shall be substituted "under paragraph (2)";

(d) after paragraph (12) there shall be inserted the following paragraph:-

" (12A) An election under paragraph (2A) must be made by giving written notice to the Secretary of State which-

Additional contributions to purchase current added years
6 . In regulation C8 for paragraph (7) there shall be substituted the following paragraph:-

" (7) For the purposes of paragraph (6)-

Return of contributions
7 . In regulation C10-

(a) paragraph (1)(a) and the words "in any other case" in paragraph (1)(b) shall be deleted;

(b) for paragraph (2) there shall be substituted the following paragraph:-

" (2) The relevant period is the period of one month beginning when he ceased to be in pensionable employment.".

Calculation for the purposes of C10[a]
8 . In regulation C11(3)(a)(i) for "G2" there shall be substituted "G4, or any corresponding provision previously in force,".

Repayment of returned contributions
9 . In regulation C13-

(a) in paragraph (3) the words "of equal amounts" shall be deleted;

(b) after paragraph (3) there shall be inserted the following paragraph:-

" (3A) Instalments are of equal amounts unless in any year the payment of an instalment of an amount equal to that paid in previous years would exceed the limit specified in paragraph (4) and in that event the instalments (and the corresponding period over which they are payable) shall be recalculated so that they do not exceed that limit.".

" (4) The annual amount of instalments paid under paragraph (3) is to be such that (A + B) does not exceed 15% of the annual rate of the person's contributable salary in the year where-

A is the annual amount of the instalments; and

B is the annual amount of other contributions paid under Part C (except any treated for the purposes of regulation G4 as employer's contributions) or towards the provision of a pension otherwise than under these Regulations. ".

Past added years for which additional contributions have been paid
10 . In regulation D3-

(a) in paragraph (1)-

(b) after paragraph (1) there shall be inserted the following paragraphs:-

    " (1A) For the purposes of paragraph (1) a person who has at any time during the contribution period been in part-time pensionable employment shall not be treated as having completed the payment of additional contributions in accordance with Part I of Schedule 4 unless (in addition to the payments in accordance with that Part) he pays a lump sum determined in accordance with paragraph (1B).

    (1B) The lump sum referred to in paragraph (1A) is such sum as would be payable under Part II of Schedule 4 in order to count as reckonable service a period equivalent to the difference between the length of reckonable service which arises from the contribution period and the length of such service if the person had been in full-time pensionable employment throughout the contribution period.

    (1C) In paragraphs (1A) and (1B) "the contribution period" means the period during which additional contributions in accordance with Part I of Schedule 4 were paid.".

Entitlement to payment of retiring allowances
11 . - (1) In regulation E5-

(a) for sub-paragraph (1)(e) there shall be substituted the following:-

(b) for sub-paragraph (1)(f)(iii) there shall be substituted the following:-

" (iii) has ceased after attaining that age to be in pensionable employment, or in excluded employment, or in employment which would have been pensionable employment had an election been made under regulation B2 (part-time service), and his employer has certified in writing to the Secretary of State that his employment has been terminated as a result of his redundancy or in the interests of the efficient exercise of the employer's functions; and

(iv) has not received, and is not to receive, compensation under Part IIIA of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996[

Actuarial reduction of pension on early retirement
12 . In regulation E6 (amount of retirement pension)-

(a) in paragraph (1) for "and (3)" there shall be substituted "to (4)";

(b) there shall be added at the end the following paragraphs:-

" (4) Where this paragraph applies the annual rate of a teacher's retirement pension shall be the annual rate, calculated in accordance with the foregoing provisions of this regulation, of the retirement pension to which he would be entitled apart from this paragraph and ignoring the effect of regulation E11 (modification for national insurance) multiplied by the appropriate factor.

(5)

(a) Subject to sub-paragraph (b), paragraph (4) applies where a teacher is entitled to payment of retiring allowances under regulation E5(1)(f) and ceased to be in pensionable employment or in excluded employment on or after 1st September 1997;

(b) paragraph (4) shall not apply where notice to terminate the teacher's employment was given or his resignation was tendered on or before 22nd October 1996[

(6) For the avoidance of doubt, references in regulations E8 to E10 to "retirement allowances" and "retirement pension" are references to such benefits as calculated before any actuarial reduction required by paragraph (4).".

Actuarial reduction of lump sum on early retirement
13 . In regulation E7 (amount of retirement lump sum)-

(a) in paragraph (1) for "paragraph (2)" there shall be substituted "paragraphs (2) and (3)"; and

(b) there shall be added at the end the following paragraphs:-

" (3) Where this paragraph applies the amount of a teacher's retirement lump sum shall be the amount, calculated in accordance with the foregoing provisions of this regulation, of the lump sum to which he would be entitled apart from this paragraph multiplied by the appropriate factor.

(4)

(5) For the avoidance of doubt, references in regulations E8 and E9 to "retirement allowances" and "retirement lump sum" are references to such benefits as calculated before any actuarial reduction required by paragraph (3).".

Avoidance of duplicate pensions
14 . In regulation E10(2) there shall be added at the end-

" or where the other pension is payable under regulation 16C of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996.".

Modification for national insurance
15 . In regulation E11 there shall be added at the end "including retirement pensions that have been actuarially reduced under regulation E6(4)".

Suspension and resumption of incapacity pensions
16 . In regulation E14, for paragraph (1) there shall be substituted-

" (1) This regulation applies where a teacher who became entitled to payment of a pension on or before 31st March 1997 by virtue of regulation E5(1)(e) ceases to be incapacitated.".

Withdrawal of incapacity pensions
17 . After regulation E14, there shall be inserted the following regulation:-

" E14A. Where a teacher who becomes entitled on or after 1st April 1997 to payment of a pension under regulation E5(1)(e) re-enters pensionable employment, or employment which would be pensionable but for an election under regulation B6 (membership) or the lack of an election under regulation B2 (part-time service), the teacher shall cease to be entitled to that pension; and if the teacher subsequently becomes entitled to benefits under these Regulations any reckonable service which was taken into account in calculating the pension under regulation E5(1)(e) shall be taken into account in calculating those benefits.".

Abatement of retirement pension
18 . In regulation E15-

(a) in paragraph (1)(a) there shall be inserted after the words "but for his having made an election under regulation B6" the words "or but for regulation B5(5)";

(b) in paragraph (2)(b) there shall be inserted after "case" the words "and subject to paragraph (7)";

(c) in paragraph (4) in the definition of "B" after "pension" there shall be inserted the words "disregarding any actuarial reduction required by regulation E6(4) (actuarial reduction of pension on early retirement)"; and

(d) there shall be added at the end the following paragraph:-

" (7) Where regulation E6(4) applies (actuarial reduction of pension on early retirement) the amount (if any) by which the annual rate of the pension is to be reduced under paragraph (2)(b) shall be the amount (if any) referred to in that sub-paragraph multiplied by the appropriate factor.".

Actuarial reduction of retirement allowances on cessation of further employment
19 . In regulation E16 (retirement allowances on cessation of further employment) at the end there shall be inserted the following paragraph:-

" (10) Where a person ceases to be in further employment on or after 1st September 1997 and is entitled to payment of retiring allowances under regulation E5(1)(f)-

Commutation: exceptional circumstances of ill-health
20 . After regulation E18 there shall be inserted the following regulation:-

" Commutation: exceptional circumstances of ill-health
E18A. - (1) Where at the time when a person first becomes entitled to a retirement pension by virtue of regulation E5(1)(e) there are exceptional circumstances of serious ill-health affecting that person the Secretary of State may discharge his liability in respect of so much of that pension as exceeds the person's guaranteed minimum by payment of a lump sum calculated in accordance with paragraph (2).

(2) The lump sum is an amount equal to five times the amount by which the annual rate of the retirement pension which would otherwise be payable to the person exceeds the amount of his guaranteed minimum.".

Death gratuities
21 . In regulation E19-

(a) at the end of paragraph (1)(c) for "," there shall be substituted "; or";

(b) after paragraph (1)(c) there shall be inserted-

(c) at the end of paragraph (2)(b) there shall be added "or, in the case of a death occurring on or after 1st April 1998, twice his pensionable salary"; and

(d) in paragraph (7) for "person" there shall be substituted "individual".

Deficiency grants
22 . In regulation E20-

(a) in each of paragraphs (2) and (3) before the words "a grant" there shall be inserted the words "subject to paragraph (4A)";

(b) for paragraph (4) there shall be substituted-

" (4) For the purposes of this regulation any amount by which a pension was reduced under regulation E6(4) (actuarial reduction of pension on early retirement) or any part of a pension allocated under regulation E12, or any amount deducted from the retirement lump sum (including any actuarial reduction under regulation E7(3) (actuarial reduction of lump sum on early retirement) shall be treated as having been paid.";

" (4A) Where regulation E6(4) applies a deficiency grant may be paid equal only to the deficiency referred to in paragraph (2) or (3), as the case may be, multiplied by the appropriate factor."; and

(d) in paragraph (6) for "person" there shall be substituted "individual".

Entitlement to short-term family benefits
23 . In regulation E23 for paragraph (2) there shall be substituted the following paragraph:-

" (2) The short-term pension shall be payable-

Amount and duration of short-term family benefits
24 . In regulation E24-

(a) in paragraph (1) for "paragraph (2)" there shall be substituted "paragraphs (2) and (4)";

(b) for paragraph (3) there shall be substituted-

" (3) The duration of the short-term pension payable shall be determined from the table below, and in that table "adult pension" means a short-term pension payable to the spouse or nominated beneficiary.

Category	Person falling within regulation (2) E23	Duration of pension (months)
1.	Spouse or nominated beneficiary	3
2.	One child or more where an adult pension is payable	3
3	One child or more where no adult pension is payable	6

" (4) where regulation E6(4) applies (actuarial reduction of pension on early retirement) the annual rate of a short-term pension payable under regulation E23 shall be the annual rate calculated in accordance with paragraph (1) or (2) multiplied by the appropriate factor.".

Notes:

[1] 1972 c.11; section 9 was amended by sections 4(1), 8(3) and (4) and 11 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7) and section 12 was amended by section 10 of that Act. back

[2] See S.I. 1981/1670. back

[3] S.I. 1992/280; amended by S.I. 1992/1025 and 1597, 1993/490 and 2513, 1994/1715 and 2699 and 1995/840 and 1670. back

[4] S.I. 1996/2317, amended by S.I. 1997/675. back

[5] This is the date on which the Secretary of State began his consultation on the proposals now enacted. back

[a] This Statutory Instrument was amended by correction slip. The title of regulation 8 was made to read: "Calculation for the purpses of C10". back

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Prepared 18 February 1998