Regulations C5 and C8
SCHEDULE 3MAXIMUM PURCHASE OF ADDED YEARS
1.—(1) Subject to paragraph 2, the maximum length of the period in respect of which an election may be made under regulation C5 or C8 is A–B, where–
A is the length of time specified in the second column of the Table below against the teacher’s adjusted age; and
B is the length of any additional period already purchased or in course of being purchased by the teacher.
TABLE
| 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 teacher’s adjusted age–
(a)if the teacher has continued in pensionable employment since the start of his or her first such employment and has not been credited with reckonable service on the receipt of a transfer value in respect of comparable British service, is the teacher’s age at the start of his or her first pensionable employment; and
(b)in any other case, is C–D, where–
C is the teacher’s age at the start of his or her most recent pensionable employment; and
D is the total of the time the teacher had then spent in pensionable employment and the length of any reckonable service with which he or she has been credited on the acceptance of a transfer value in respect of comparable British service.
2.—(1) This paragraph applies to a teacher who–
(a)at the start of his or her most recent pensionable employment was entitled in respect of a former employment to material benefits, whether or not they had then become payable; or
(b)will become entitled to retirement benefits under the Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995(1) or under a scheme approved by virtue of section 591(2)(h) of the Taxes Act(2).
(2) Material benefits comprise–
(a)any benefits by way of pension, allowance, lump sum or grant whose actuarial equivalent as an annuity for life from the age of 60 would be more than £260 per year or such higher amount as may be prescribed from time to time by Regulations made under section 21(1) of the 1993 Act(3); and
(b)any refund of contributions which, together with any interest payable, exceeded £2,000.
(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 teacher’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 does not exceed J, where–
E is the actuarial equivalent as an annuity for life from the age of 60 of any material benefits;
F is the actuarial value as such an annuity of any expected retirement benefits such as are mentioned in sub paragraph (1)(b);
G is the actuarial equivalent as such an annuity of the notional retirement lump sum;
H is the annual amount of the notional pension; and
J is two thirds of the notional pensionable salary.
(5) The notional retirement lump sum, pension and pensionable salary–
(a)where the election is made before the teacher attains the age of 60, are those resulting from the assumptions that he or she 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 teacher has attained the age of 60, are those resulting from the assumptions that he or she ceased to be in pensionable employment on his or her 60th birthday and then became entitled to retirement benefits.
3.—(1) This paragraph applies where a teacher–
(a)has elected to pay additional contributions to purchase past added years under regulation C5; or
(b)has continued to pay additional contributions to purchase past added years by virtue of regulation C7(1),
and before attaining the age of 60 and before the end of the period during which they were to be paid he or she ceases to be in pensionable employment, otherwise than by reason of his or her death or his or her becoming incapacitated or circumstances rendering him or her entitled to retirement benefits by virtue of regulation E6(1)(d).
(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 teacher would otherwise have been entitled to count as reckonable service of more than–
where–
A is the longest period in respect of which he or she could have elected to pay the additional contributions;
B is the length of his or her reckonable service, excluding any past period reckonable by virtue of additional contributions, when he or she ceased to be in pensionable employment;
C is the total of B and the period beginning at the cessation and ending immediately before his or her 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.
S.I. 1995/2814, as amended by S.I. 2001/3649 and S.S.I. 2000/444 and 2001/292.
1988 c. 1. Section 591 is prospectively repealed by the Finance Act 2004 (c. 12), Schedule 42, Part 3.
1993 c. 48 as amended by the Pensions Act 2004 (c. 35) section 284.