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The Teachers' Superannuation (Scotland) Amendment Regulations 2007

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Citation and commencement

1.  These Regulations may be cited as the Teachers' Superannuation (Scotland) Amendment Regulations 2007 and shall come into force on 1st April 2007.

Amendment of the Teachers' Superannuation (Scotland) Regulations 2005

2.  The Teachers' Superannuation (Scotland) Regulations 2005(1) shall be amended in accordance with regulations 3 to 83 of these Regulations.

3.  In regulation B1 (full time service), B4 (continuing employment) and B5(1) (accepted school) for “B9” substitute “B8”.

4.—(1) Regulation B2 (part-time service) is amended as follows.

(2) In paragraph (1) for “B9” substitute “B8”.

(3) After paragraph (5) insert–

(5A) Where the election is made by a teacher with mixed service and, pursuant to paragraph (5), has effect from a date earlier than that referred to in paragraph (4) all pensionable employment during the back period shall be treated as having occurred after the post-break employment start.

(5B) Where the election is made by a 2007 or later entrant and, pursuant to paragraph (5), has effect from a date earlier than that referred to in paragraph (4) all pensionable employment during the back period shall be treated as having occurred on or after 1st April 2007..

5.—(1) Regulation B6 (employment not pensionable) is amended as follows.

(2) In paragraph (1) for “under 70” substitute “under 75”.

(3) For paragraph (5) substitute–

(5) This paragraph applies to a teacher who, between 1st April 1997 and 30th September 2001–

(a)was entitled to be paid a teacher’s pension, including cases where the annual rate of pension had been reduced to zero in accordance with regulation E18; and

(b)commenced employment (“the further employment”) which would, apart from regulation B5(5) of the 1992 Regulations have been pensionable employment.

(6) A teacher to whom paragraph (5) applies is not in pensionable employment in respect of the further employment unless he or she makes an election under regulation B8..

6.  In regulation B7 (election for employment not to be pensionable) after paragraph (2) insert–

(2A) If the teacher is, or expects to become, a party to more than one contract of employment, then each employment shall cease to be pensionable employment and shall be excluded employment..

7.—(1) Regulation B8 (resumption of pensionable status) is amended as follows.

(2) After paragraph (1) insert–

(1A) A teacher to whom regulation B6(5) applies or has applied who is in employment which would otherwise have been pensionable employment may at any time, by giving written notice to the Scottish Ministers, make an election under this regulation..

(3) In paragraph (3) after “paragraph (1)(a)” insert “or, subject to paragraph (4A), paragraph (1A)”.

(4) After paragraph (4) insert–

(4A) Where the teacher making the election falls within paragraph (1A) and is in the same employment as he or she was in immediately before 1st April 2007 the election may, provided that the contributions payable under regulation C4A and H5A are paid, have effect on such date earlier than that specified in paragraph (3) as the employer agrees.

(4B) The earlier date referred to in paragraph (4A) may not however be a date before 1st October 2001 or the date on which the further employment commenced, if that was after 1st October 2001.

(4C) Where the election under paragraph (1A) is made by a teacher with mixed service and the election has effect, pursuant to paragraph (4A), on a date earlier than that specified in paragraph (3) all pensionable employment before the date specified in paragraph (3) shall be treated as having occurred–

(a)after the post-break employment start, where the election is made by a person with mixed service; or

(b)on or after 1st April 2007, where the election is made by a 2007 or later entrant..

8.  Omit regulation B9 (further employment).

9.—(1) Regulation C2 (salary on which contributions are payable – election) is amended as follows.

(2) In paragraph (6)(c)(i) for “regulation C8 or C9” substitute “regulation C9”.

(3) Omit paragraph (11).

(4) For paragraph (12) substitute–

(12) Paragraph (1) shall not apply where a teacher was in pensionable employment (before 2nd December 2006) by virtue of regulation B9 as it had effect before 1st April 2007..

10.  For regulation C3 (ordinary contributions) substitute–

Ordinary contributions

C3.(1) In this regulation “relevant period” is to be construed in accordance with regulation H2(6).

(2) Subject to paragraph (3), a teacher who is in pensionable employment is to pay contributions of–

(a)6% of his or her contributable salary for the time being in respect of any period before 1st April 2007;

(b)6.4% of his or her contributable salary for the time being in respect of the relevant period starting on 1st April 2007; and

(c)X% of his or her contributable salary for the time being in respect of any subsequent relevant period, where X has the same value as that determined by the Secretary of State from time to time in accordance with regulation C3(2)(c) of the Teachers' Pensions Regulations 1997(2).

(3) A teacher who has made an election under regulation C2(1) shall, in addition to the contributions referred to in paragraph (2), pay contributions of the required percentage of the difference between the teacher’s actual contributable salary and the contributable salary at the rate referred to in regulation C2(4) to the extent that such contributions are not paid by any employer referred to in regulation H4 under an election mentioned in that regulation.

(4) No contributions are to be paid by a teacher in respect of any reckonable service beyond a total of 45 years..

11.  After regulation C4 (contributions where an election under regulation B2(4) has been made) insert–

Contributions where an election under regulation B8(1A) is to take effect from an earlier date

C4A.(1) This regulation applies where–

(a)a teacher has elected under regulation B8(1A) that his or her further employment should be pensionable; and

(b)his or her employer has agreed under regulation B8(4A) that the election should have effect from a date earlier than the first day of the month after that in which the notice was given.

(2) Where this regulation applies the teacher shall–

(a)pay the contributions calculated in accordance with regulation C3(2) and treated as due on the last day of each month for the period starting with such earlier date and ending immediately before the first day of the month after that in which the notice was given; and

(b)pay interest on each such contribution at 7% per annum, compounded with monthly rests from the eighth day after the end of the month in which that contribution was due to the date of its payment.

Election in respect of additional benefits

C4B.(1) Any teacher in pensionable employment who has not attained the normal pension age may at any time elect to pay additional contributions in accordance with Schedule 2A in order to be credited with additional benefits.

(2) The employer of a teacher in pensionable employment may at any time elect to pay additional contributions in accordance with Schedule 2A in order for that teacher to be credited with additional benefits.

(3) Where, pursuant to an election under this regulation and Schedule 2A, a teacher is credited with an increased retirement pension that pension–

(a)is to be paid to him or her in accordance with regulation E7A when he or she becomes entitled to retirement benefits in accordance with regulation E6; and

(b)is to be paid to him or her in accordance with regulation E6A if he or she is eligible for phased retirement benefits.

(4) Where, pursuant to an election under this regulation and Schedule 2A, a teacher is credited with increased benefits for his or her dependents, those benefits are to be paid in accordance with regulation E32A..

12.  Omit regulations C5 (additional contributions to purchase past added years) and C6 (additional contributions to purchase past added years in the case of a deceased teacher).

13.  For regulation C7 (additional contributions to purchase past added years under earlier provisions) substitute–

Additional contributions to purchase added years under earlier provisions

C7.(1) Schedule 4 has effect where immediately before 1st April 2007 a teacher had elected to pay additional contributions under old regulation C5 and additional contributions remain to be paid.

(2) Schedule 5 has effect where immediately before 1st October 2005 additional contributions remained to be paid by virtue of regulations 22 to 26 of the 1977 Regulations..

14.  Omit regulation C8 (additional contributions to purchase current added years).

15.—(1) Regulation C9 (additional contributions for current period: service in a reserve force) is amended as follows.

(2) For paragraph (3)(a) substitute–

(a)the same percentage of the notional salary for so much of the period as falls within that financial year as would be paid if the teacher was liable to pay contributions under regulation C3(2); and.

(3) In paragraph (3)(b) for “regulation C3(2)” substitute “regulation C3(3)”.

(4) In paragraph (6)(b) for “regulation C5” substitute “old regulation C5”.

16.  In regulation C10 (additional contributions for family benefits) after paragraph (3) insert–

(4) Parts IIB and III of Schedule 6 have effect for enabling family benefit contributions to be paid in order to secure, or to increase, family benefits for a surviving nominated partner in respect of reckonable service which is not relevant service as mentioned in regulation E30(4B)..

17.—(1) Regulation C11 (return of contributions) is amended as follows.

(2) In paragraph (1)(d) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(3) In paragraph (6) for “70th birthday” substitute “75th birthday”.

18.  In paragraph (3)(a) of regulation C12 (calculation for the purposes of regulation C11) for “regulations C3, C5 and C7 to C10” substitute “regulations C3, C4B, regulations C9 to C10, under Part I of Schedule 4, as a result of an election under old regulation C5 or old regulation C8”.

19.—(1) Regulation C14 (repayment of returned contributions) is amended as follows.

(2) In paragraph (1)(a) after “pensionable employment” insert “other than a teacher who was entitled to be paid a teacher’s pension and, after becoming entitled to payment of a teacher’s pension, re-entered pensionable employment”.

(3) In paragraph (8) for “regulation C8” substitute “old regulation C8”.

(4) Omit paragraph (9).

20.—(1) Regulation C15 (deduction, payment and recovery of contributions) is amended as follows.

(2) In paragraph (1)(a) for “regulation C3(1)” substitute “regulation C3(2)”.

(3) In paragraph (1)(b) for “regulation C3(2)” substitute “regulation C3(3)”.

(4) After paragraph (1)(b) insert–

(ba)any additional contributions payable as a result of an election under regulation C4B;.

(5) Omit paragraph (1)(c).

(6) After paragraph (1) insert–

(1A) The employer of a teacher in pensionable employment by virtue of an election made under regulation B8(1A) who has agreed under regulation B8(4A) that the election should have effect from a date earlier than the first day of the month after that in which the notice was given shall collect the contributions and interest payable under regulation C4A no later than 6 weeks after the date on which such agreement was given; and the remaining paragraph of this regulation do not apply to the sums collected under this paragraph.

(7) In paragraph (7) for “regulation C4, C8 or C14” substitute “regulation C4, C9 or C14 or old regulation C8”.

21.  In regulation D4 (current added years for which additional contributions have been paid)–

(a)for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”; and

(b)in paragraph (a) for “regulation C8” substitute “old regulation C8”.

22.  Before regulation E1 (overriding provisions as to guaranteed minimum pension) insert the following regulation–

Meaning of various terms

EA1.(1) In these Regulations the expressions set out in paragraphs (2), (5), (7), (8), (9) and (10) have the meanings specified in those paragraphs.

(2) A “pre-2007 entrant” means a teacher who satisfies one of the conditions in paragraph (3).

(3) The conditions are–

(a)that the teacher was in pensionable employment before 1st April 2007 but is not in such employment on or at any time after that date; or

(b)that the teacher was in pensionable employment before 1st April 2007 and is also in pensionable employment at any time on or after that date but does not cease to be a pre-2007 entrant by virtue of paragraph (4).

(4) A teacher ceases to be a pre-2007 entrant if he or she takes up pensionable employment again (“the new employment”) after 31st March 2008 after a relevant break of service.

(5) A “relevant break of service” means a period ending after 31st March 2008 (and where there is more than one such period, the first of them) when a teacher is not in pensionable employment such that the interval between the first day of the new employment and the last day of the most recent previous period of pensionable employment is more than 5 years, and it is immaterial whether the last day of the most recent previous period of pensionable employment was before 1st April 2007 or not.

(6) For the purposes of determining the interval referred to in paragraph (5) any period of employment is ignored unless–

(a)the employment is pensionable employment of at least 60 days (which need not be continuous); or

(b)the employment which the teacher is entitled to count as reckonable service amounts to at least 30 days,

(in either case) in a period of 12 months starting at any time in the year.

(7) “Post-break employment start” means the start of the new employment after a relevant break of service, and for the purposes of this definition any periods of employment which are ignored for the purposes of determining the interval referred to in paragraph (5) are treated as having taken place before the start of the new employment.

(8) A “teacher with mixed service” means a teacher who was in pensionable employment before 1st April 2007 but who has ceased to be a pre-2007 entrant by virtue of paragraph (4).

(9) A “2007 or later entrant” means anyone other than a pre-2007 entrant or a teacher with mixed service who is or has been in pensionable employment.

(10) The “normal pension age” means the age of 60 in the case of a pre-2007 entrant and the age of 65 in any other case (except in relation to a pension credit member whose normal pension age is determined in accordance with regulation F10A).

(11) Where a teacher has been in comparable British Service before entering pensionable employment the comparable British Service shall, for the purposes of this regulation, be treated as if it were pensionable employment provided that neither a cash equivalent transfer value nor a transfer value has been paid in respect of the comparable British Service (other than a cash equivalent transfer value or transfer value accepted by the Scottish Ministers) nor has the balance of the teacher’s contributions relating to the comparable British Service been repaid.

(12) For the purposes of this regulation–

(a)a teacher is treated as being in pensionable employment during any period for which he or she is paying additional contributions under old regulation C8 or regulation C9; and

(b)“comparable British Service” does not include service which is pensionable under a superannuation scheme for teachers in public employment in the Channel Islands or the Isle of Man..

23.  In regulation E2(2)(b) (residual liability for guaranteed minimum pensions and for section 9(2B) rights) for “the age of 60” substitute “the normal pension age”.

24.  For regulation E4 (nature of retirement benefits) substitute the following–

Nature of retirement benefits

E4.  Retirement benefits consist of–

(a)a retirement pension;

(b)a retirement lump sum where regulation E8 applies; and

(c)where applicable, a lump sum in place of part of a retirement pension (in accordance with regulation E8A),

calculated in accordance with this Part..

25.  In regulation E5(3) (qualification for retirement benefits) for “If a teacher was in pensionable employment by virtue of regulation B9” substitute “If a teacher was entitled to be paid a teacher’s pension and has re-entered pensionable employment”.

26.  For regulation E6 (entitlement to payment of retirement benefits) substitute–

Entitlement to payment of retirement benefits

E6.(1) A teacher who has qualified for retirement benefits shall be entitled to payment of them if he or she falls within any of paragraphs (2) and (4) to (7).

(2) The teacher has, subject to paragraph (3), attained the normal pension age and has ceased to be in pensionable employment.

(3) Where the teacher is a teacher with mixed service–

(a)he or she becomes entitled to payment of that part of the retirement pension referred to in regulation E7(2)(c)(i) and the retirement lump sum when he or she attains the age of 60; and

(b)where an election under regulation C4B has been made in respect of the teacher and, at the time when the election was made the teacher has not ceased to be a pre-2007 entrant by virtue of regulation EA1(4), the teacher becomes entitled to payment of that part of the retirement pension referred to in regulation E7A when he or she attains the age of 60.

(4) The teacher has attained the age of 70 and is in employment which would be pensionable employment but for regulation B6(1).

(5) The teacher–

(a)has not attained the normal pension age;

(b)has ceased after 31st March 1972 and before attaining the normal pension age to be in pensionable employment;

(c)is incapacitated, became so before attaining the normal pension age; and

(i)immediately before he or she became incapacitated–

(aa)was in pensionable employment; or

(bb)was taking a period of unpaid sick leave, maternity, paternity or adoptive leave, which, in each case, followed on immediately after a period of pensionable employment; or

(cc)was paying additional contributions under old regulation C8 or regulation C9; or

(ii)made an application for payment under regulation E36(1A) such that it was received by the Scottish Ministers before 1st April 2007; or

(iii)(where neither sub-paragraphs (i) or (ii) applies) his or her ability to carry out any work is impaired by more than 90% and is likely permanently to be so.

(6) The teacher–

(a)has not attained the normal pension age;

(b)has attained the age of 50, if the teacher is not a post-30th June 2006 entrant and attained that age before 6th April 2010, or the age of 55 in any other case;

(c)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, and that teacher’s employer has certified in writing to the Scottish Ministers that his or her employment has been terminated as a result of their redundancy or in the interests of the efficient exercise of the employer’s functions; and

(d)has not received, and is not to receive, compensation under Part IIIA of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996(3) and that teacher’s employer has agreed that he or she should become entitled to retirement benefits under this paragraph.

(7) The teacher–

(a)has attained the age of 55;

(b)has ceased on or after 30th June 2002 and before attaining the normal pension age to be in pensionable employment or excluded employment; and

(c)is not entitled to payment of retirement benefits by virtue of paragraph (5) or (6),

and the conditions specified in paragraph (10) are satisfied.

(8) Entitlement under–

(a)paragraph (2) and (4) takes effect as soon as the teacher meets the conditions prescribed therein;

(b)paragraph (5) takes effect–

(i)as from the day after the end of pensionable employment; or

(ii)if the date of the teacher’s application for payment of retirement benefits on grounds of incapacity is later, that date or such other date as the Scottish Ministers, having regard to all the circumstances, think appropriate;

(c)paragraph (6) takes effect, unless the teacher entitled to receive payment has waived his or her right to such payment in terms of paragraph (9), as from the day after the end of the employment; and

(d)paragraph (7) takes effect–

(i)where, at the time of the application for benefits under regulation E36, the teacher was in pensionable employment or excluded employment, as from the day after the end of the employment; and

(ii)in any other case on a date determined by the teacher making the application for benefits under regulation E36 being a date no earlier than 6 weeks after the date of such application.

(9) A teacher entitled to payment of retirement benefits by virtue of paragraph (6), who is also a teacher to whom the provisions of regulation 7 of the Local Government (Education Administration) (Compensation for Redundancy or Premature Retirement on Reorganisation) (Scotland) Regulations 1995(4) applies, may waive his or her entitlement to such payment under paragraph (6) by notice in writing to his or her employer, but such waiver shall not prejudice his or her entitlement to benefit under any other provision of this regulation.

(10) The conditions referred to in paragraph (7) are–

(a)where the teacher has a guaranteed minimum pension in respect of employment before 6th April 1997, or an equivalent pension benefit relating to employment undertaken during the period starting on 3rd April 1961 and ending on 5th April 1975 (or both) that the annual rate of the teacher’s retirement benefits in the opinion of the Government Actuary is equal to or exceeds the equivalent pension benefit or the value of the guaranteed minimum pension (or if both the aggregate); and

(b)where, at the time of the application for payment of benefits under regulation E36, the teacher was in pensionable employment or excluded employment that–

(i)his or her employer has consented to the application; or

(ii)6 months have elapsed since the date on which the teacher requested his or her employer to give consent and such consent has not been given.

(11) Subject to paragraph (12) a teacher is a post-30th June 2006 entrant if–

(a)he or she enters pensionable employment for the first time after 30th June 2006; or

(b)he or she enters pensionable employment after 30th June 2006 having previously been in pensionable employment where–

(i)the previous period of pensionable employment ended on or before 30th June 2006, and

(ii)a cash equivalent transfer value or a transfer value under Part G had been paid in respect of that employment, or the person has been repaid the balance of his or her contributions relating to that pensionable employment under regulation C11.

(12) A teacher is not however a post-30th June 2006 entrant (even if he or she falls within paragraph (11)) if–

(a)he or she was in comparable British service on or before 30th June 2006; and

(b)neither a cash equivalent transfer value nor a transfer value has been paid in respect of that service (other than a cash equivalent transfer value or a transfer value accepted by the Scottish Ministers) nor has the balance of his or her contributions relating to that service been repaid...

27.  After regulation E6 (entitlement to payment of retirement benefits) insert–

Eligibility for payment of phased retirement benefits

E6A.(1) In these Regulations, “phased retirement benefits” means retirement benefits to which a teacher may be eligible under this regulation.

(2) A teacher in pensionable employment who is qualified for retirement benefits is eligible to receive a part of his or her retirement benefits before he or she becomes entitled to payment of those benefits if–

(a)he or she has attained the age of 55; and

(b)the teacher’s employer at the time of an election under paragraph (4) has certified that the teacher will continue in pensionable employment such as to result in a reduction of contributable salary of at least 25% as compared with the average annual rate of his or her contributable salary for the six months prior to the end of his or her previous employment from the first day of pensionable employment at the reduced contributable salary.

(3) A teacher who is qualified for retirement benefits is also eligible to receive a part of his or her retirement benefits before he or she becomes entitled to payment of those benefits if–

(a)he or she has attained the age of 55;

(b)after attaining that age he or she ceases to be in pensionable employment;

(c)within six months of the last day of that employment he or she has–

(i)secured further pensionable employment; or

(ii)secured further employment, otherwise than as a teacher, in an establishment in which employment as a teacher would by virtue of Schedule 2 be pensionable employment; and

(d)his or her employer in the further employment has certified that there has been a reduction of the teacher’s salary of at least 25% as compared with the average annual rate of his or her contributable salary for the six months prior to the end of his or her previous employment from the first day of the further employment at the reduced salary.

(4) Eligibility to phased retirement benefits pursuant to this regulation is conditional upon–

(a)the teacher making a maximum of two elections for such benefits, with each election being accompanied by certification as prescribed in paragraph (2)(b) or (3)(d); and

(b)the election being made within three months of starting employment as referred to in paragraph (2)(b) or securing further employment as referred to in paragraph (3)(c).

(5) Subject to paragraph (7) the election shall specify a percentage (“the election percentage”), not exceeding 75% by reference to which retirement benefits are to be calculated in accordance with paragraphs (8) to (10).

(6) Where in the 12 month period following the reduction in contributable salary a teacher receives an increase in remuneration in excess of the standard increase as defined in regulation E34(13)(c) such as to give that teacher remuneration equal to 75% or more of his or her salary prior to the reduction, then any election made pursuant to this regulation ceases to have effect.

(7) Where the teacher is a teacher with mixed service the election may specify that it only applies to the part of the teacher’s effective reckonable service which was before the start of the new employment after the relevant break of service or only applies to the part of the teacher’s effective service which was after the start of the new employment after the relevant break of service.

(8) Where the election is the first or only election the phased retirement benefits are calculated on the basis specified in regulation E7(2) and (where applicable) E8(2) but–

(a)the teacher’s pensionable salary is calculated as if his or her pensionable salary service ended immediately at the date of the change in employment; and

(b)the teacher’s effective reckonable service is the election percentage of his or her reckonable service up to the date of the change in employment.

(9) Where the election is the second election, phased retirement benefits are calculated on the basis specified in regulation E7(2) and (where applicable) E8(2) but–

(a)the teacher’s pensionable salary is calculated in the manner specified in paragraph (8); and

(b)the teacher’s effective reckonable service is–

(i)the election percentage of the teacher’s reckonable service up to the date of the second change in employment; less

(ii)the amount of reckonable service calculated in accordance with paragraph (8)(b).

(10) Phased retirement benefits calculated in accordance with paragraph (8) or (9) are adjusted by multiplication by the appropriate factor, (in the case of retirement pension the adjustment is effected) in the same way as is specified in regulation E7(6).

(11) A teacher who has elected to pay additional contributions under regulation C4B and who has elected for phased retirement benefits, may elect also for payment in full of those additional benefits to which he or she is entitled under that regulation, multiplied by the appropriate factor in the same way as is specified in regulation E7A(6).

(12) In calculating the factor by which additional benefits referred to in paragraph (11) are to be multiplied pursuant to regulation E7A(3) or (4)–

(a)RI is the retail prices index for the second month before the month in which the change in pensionable employment occurred; and

(b)the definition of X has effect as if for “the date on which the teacher became entitled to payment of retirement benefits” there were substituted “the date of the change in pensionable employment”.

(13) Where the employer referred to in paragraph (3)(d) is unable to certify as prescribed in that paragraph because the previous employer has not provided them with the necessary information, the Scottish Ministers may determine nevertheless whether the teacher shall be entitled to phased retirement benefits.

(14) In this regulation “date of change in pensionable employment”, where the teacher falls within paragraph (2), is the date before the date on which contributable salary is reduced, and where the teacher falls within paragraph (3) is the date of leaving previous pensionable employment..

28.  For regulation E7 (amount of retirement pension) substitute–

Amount of retirement pension

E7.(1) The annual rate of a teacher’s retirement pension is the rate specified in paragraph (2) together with the rate specified in regulation E7A where that regulation applies (but nothing in this regulation or regulation E7A shall prevent different parts of a teacher’s retirement pension being paid at different times if the teacher becomes entitled to the parts at different times).

(2) Subject to paragraphs (4) and (6) to (13) and regulations E8A to E12, the rate is–

(a)in the case of a pre-2007 entrant, 1/80th of his or her pensionable salary multiplied by his or her effective reckonable service;

(b)in the case of a 2007 or later entrant, 1/60th of his or her pensionable salary multiplied by his or her effective reckonable service; and

(c)in the case of a teacher with mixed service the aggregate of–

(i)1/80th of his or her pensionable salary multiplied by that part of his or her effective reckonable service which was before the post-break employment start; and

(ii)1/60th of his or her pensionable salary multiplied by that part of his or her effective reckonable service which was after the post-break employment start.

(3) For the purposes of paragraph (2) reckonable service is to be expressed in years and fractions of a year.

(4) If–

(a)the teacher is entitled to count a period as reckonable service by virtue of regulation D3; and

(b)by reason of regulation E35(4) part of that period does not count in calculating his or her retirement lump sum,

the annual rate calculated in accordance with paragraph (2) is, in respect of each year comprised in that part, increased by 1/350th of his or her pensionable salary.

(5) In paragraphs (6) to (9) “the basic rate” is the rate calculated in accordance with paragraphs (2) and (4) and, where appropriate, regulation E9 or E11 (but disregarding the effect of regulation E12).

(6) Subject to paragraphs (7) to (9), where–

(a)a teacher who has become entitled to payment of retirement benefits by virtue of regulation E6(6) has ceased to be in pensionable employment or excluded employment on or after 1st September 1997; or

(b)a teacher has become entitled to payment of retirement benefits by virtue of regulation E6(7),

the basic rate is adjusted as specified in paragraph (7).

(7) The adjustments are–

(a)in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal pension age of 60;

(b)in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal pension age of 65;

(c)in the case of a teacher with mixed service who has not attained the age of 60, multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(i) by the appropriate factor for a teacher with a normal pension age of 60 and multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(ii) by the appropriate factor for a teacher with a normal pension age of 65; and

(d)in the case of a teacher with mixed service who has attained the age of 60, multiplication of that part of the annual rate of such pension as is mentioned in paragraph (2)(c)(ii) by the appropriate factor for a teacher with a normal pension age of 65.

(8) Where the teacher falls within paragraph (6)(a) and–

(a)the teacher has a guaranteed minimum in relation to employment up to 6th April 1997; and

(b)A exceeds B, where

  • A is the annual equivalent of his or her guaranteed minimum pension together with that of any equivalent pension benefits, and

  • B is the basic rate, where applicable, adjusted in accordance with paragraphs (6) and (7),

the annual rate of his or her retirement pension is A.

(9) Where a 2007 or later entrant or a teacher with mixed service has effective reckonable service which has occurred after he or she attained the age of 65 the basic rate is adjusted as specified in paragraph (10).

(10) The adjustments are–

(a)in the case of a 2007 or later entrant, multiplication of the annual rate of that part of his or her retirement pension which relates to effective reckonable service before the teacher attained the age of 65, by the relevant enhancement factor; and

(b)in the case of a teacher with mixed service, multiplication of that part of his or her retirement pension which relates to the part of his or her effective reckonable service before the teacher reached the age of 65 but after the post-break employment start, by the relevant enhancement factor.

(11) In paragraph (10) “the relevant enhancement factor” means a factor (related to the length of the period which has elapsed between the teacher’s 65th birthday and the date (after the teacher’s 65th birthday) on which he or she became entitled to retirement benefits) determined from time to time for the purpose of this regulation by the Scottish Ministers after taking advice from the Government Actuary.

(12) If a contributions equivalent premium has been paid in respect of the teacher and has not been refunded (and his or her entitlement to a guaranteed minimum pension is therefore extinguished) the annual rate of his or her retirement pension is reduced by the annual equivalent of the guaranteed minimum pension to which he or she would otherwise have been entitled.

(13) Where a teacher has received phased retirement benefits the teacher’s effective reckonable service is reduced by the amount of reckonable service (determined under regulation E6A(8) and, where applicable, E6A(9)) taken into account in calculating phased retirement benefits..

29.  After regulation E7 (amount of retirement pension) insert the following–

Retirement pension when election has been made under regulation C4B

E7A.(1) This regulation applies where one or more elections under regulation C4B have been accepted by the Scottish Ministers and have not ceased to have effect.

(2) Where this regulation applies the annual rate of a teacher’s retirement pension is (in addition to the annual rate specified in regulation E7(2)) the aggregate of the annual rates with which the teacher has been credited pursuant to each election and Schedule 2A, multiplied by the factor specified in paragraph (3) and divided by the factor (if it is greater than one) specified in paragraph (4).

(3) The increase is (RI-RE)/ where–

  • RI is the retail prices index for the second month before the month in which the teacher becomes entitled to the part of his or her retirement pension referred to in this regulation; and

  • RE is the retail prices index for the month which includes the start date, as defined in paragraph 1 of Schedule 2A, for the election in question.

(4) The factor in this paragraph is X/Y where–

  • X is the amount which would have been the annual rate of the teacher’s retirement pension calculated in accordance with the combined effect of paragraphs (2) and (3) (as if in paragraph (2) the words “and divided by the factor (if it is greater than one) specified in paragraph (4)” had been omitted) and any increases affected by the 1971 Act up to the date on which the teacher became entitled to payment of retirement benefits, and

  • Y is the amount which would have been the annual rate of the teacher’s retirement pension calculated in accordance with paragraphs (2) and (3) if in paragraph (2) the words “and divided by the factor (if it is greater than one) specified in paragraph (4)” had been omitted and if the 1971 Act did not apply.

(5) Where regulation E7(6) applies the annual rate of the person’s retirement pension calculated in accordance with paragraphs (2) and (3) shall be adjusted as specified in paragraph (6).

(6) The adjustments are–

(a)in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal pension age of 60;

(b)in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal age of 65;

(c)in the case of a teacher with mixed service such as is referred to in regulation E6 (3)(b) who has not attained the age of 60, multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal pension age of 60; and

(d)in the case of a teacher with mixed service other than a teacher such as is referred to in regulation E6(3)(b), multiplication of the annual rate of such pension by the appropriate factor for a teacher with a normal pension age of 65.

(7) In this regulation “the 1971 Act” means the Pensions (Increase) Act 1971(5)..

30.  For regulation E8 (amount of retirement lump sum) substitute the following–

Amount of retirement lump sum

E8.(1) This regulation applies to a pre-2007 entrant and a teacher with mixed service.

(2) Subject to paragraphs (4) to (7) and regulations E9 and E10, the amount of retirement lump sum for a teacher to whom this regulation applies is A × (B+C) where–

  • A is 3/80ths of the teacher’s pensionable salary;

  • B is, in the case of a pre-2007 entrant, his or her effective reckonable service or, in the case of a teacher with a mixed service, that part of his or her effective reckonable service which was before the post-employment break start (except, in either case, any service falling within C); and

  • C is any period which the teacher is entitled to count as reckonable service by virtue of regulation D3 (past added years for which additional contributions have been paid).

(3) For the purposes of paragraph (2) reckonable service is to be expressed in years and fractions of a year.

(4) A teacher’s retirement lump sum cannot exceed his or her permitted maximum.

(5) Where–

(a)a teacher to whom this regulation applies who has become entitled to the payment of retirement benefits by virtue of regulation E6(6) before attaining the age of 60 has ceased to be in pensionable or excluded employment on or after 1st September 1997; or

(b)a teacher to whom this regulation applies has become entitled to payment of retirement benefits by virtue of regulation E6(7) before attaining the age of 60,

the amount of the teacher’s retirement lump sum shall be the amount calculated in accordance with paragraph (2) multiplied by the appropriate factor.

(6) A teacher who has reached the age of 75 or over is not entitled to a lump sum.

(7) Where a teacher has received phased retirement benefits the teacher’s effective reckonable service is calculated in accordance with regulation E7(13).

(8) Where an election to receive phased retirement benefits ceases to have effect by virtue of regulation E6A(6), the amount of a teacher’s retirement lump sum on entitlement to payment of retirement benefits is reduced by the amount of any lump sum which the teacher has already received pursuant to that election..

31.  After regulation E8 insert the following–

Lump sum in place of part of pension

E8A.(1) Subject to paragraph (4), a teacher may, by an election made with the application for payment under regulation E36(1A), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his or her retirement pension.

(2) The amount of such lump sum must be a multiple of £12 and cannot exceed–

(a)in the case of a 2007 or later entrant, his or her permitted maximum; and

(b)in the case of a pre-2007 entrant or a teacher with mixed service, his or her permitted maximum less his or her retirement lump sum.

(3) Where a lump sum is paid under this regulation the annual rate of the teacher’s retirement pension is reduced by £1 for every £12 of lump sum.

(4) This regulation does not apply to a teacher who is a pre-2007 entrant and falls within regulation EA1(3)(a).

(5) Paragraph (6) applies where–

(a)a teacher has elected to receive phased retirement benefits and has also made an election pursuant to this regulation (“the first election”) to receive a further lump sum in place of part of the retirement pension comprised in the phased retirement benefits, but

(b)the election to receive phased retirement benefits ceased to have effect by virtue of regulation E6A(6).

(6) Where this paragraph applies the teacher is treated, on becoming entitled to payment of retirement benefits, as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum which had been paid to the teacher pursuant to the first election.

(7) Paragraph (8) applies where a teacher to whom regulation E19 applies made an election pursuant to this regulation (“the first election”) to receive a further lump sum in place of part of the first pension.

(8) Where this paragraph applies the teacher is treated, on becoming entitled to payment of retirement benefits pursuant to regulation E19(2) or (4), as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum which had been paid to the teacher pursuant to the first election.

(9) In this regulation–

(a)“the appropriate amount” is the amount (rounded to the nearest £12) such that the proportion which the rate of retirement pension forgone bears to the rate of retirement pension to which the teacher is entitled is the same as the proportion which the rate of retirement pension forgone pursuant to the first election bore to–

(i)the rate of retirement pension to which the teacher was eligible pursuant to the election made under regulation E6A, where the teacher falls within paragraph (5), or

(ii)the rate of the first pension, where the teacher falls within paragraph (7),

(b)“the first pension” has the same meaning as in regulation E19(1)(a).

Teachers aged 75 or over

E8B.(1) Where a teacher would be entitled to a retirement lump sum but for regulation E8(6), the annual rate of that teacher’s retirement pension shall be increased by an amount which represents the value of the retirement lump sum to which the teacher would have been entitled, payable from the date when the teacher’s application made under regulation E36 is received by the Scottish Ministers.

(2) The increase in the annual rate of the teacher’s retirement pension is to be determined by the Scottish Ministers after taking advice from the Government Actuary..

32.  In regulation E9(6) (limitation of retirement benefits in certain cases) for “E7(4) or E8(3)” substitute “E7(6) or E8(5)”.

33.—(1) At the end of the heading to regulation E10 (enhancement of retirement benefits in case of incapacity) insert “where application is received before 1st April 2007”.

(2) In regulation E10–

(a)in paragraph (1)–

(i)after “in pensionable employment” insert “and whose application for payment under regulation E36(1A) is received by the Scottish Ministers before 1st April 2007”; and

(ii)for “E6(1)(c)” where it occurs substitute “E6(5)”;

(b)in paragraph (4)(b) for “E6(1)(e)”, “E6(1)(c)” and “B9” substitute “E6(7)”, “E6(5)” and “B1” or “B2” respectively; and

(c)in paragraph (9) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(3) After regulation E10 insert the following–

Total incapacity benefit where application received on or after 1st April 2007

E10A.(1) This regulation applies to a teacher who has become entitled to payment of retirement benefits by reason of that teacher having become incapacitated and where immediately before he or she became incapacitated–

(a)he or she was in pensionable employment; or

(b)he or she was taking a period of unpaid sick leave, maternity, paternity or adoptive leave ,which, in each case, followed on immediately after a period of pensionable employment; or

(c)he or she was paying additional contributions under old regulation C8 or regulation C9,

and whose application for payment under regulation E36(1A) is received by the Scottish Ministers on or after 1st April 2007 and who satisfies the condition in paragraph (2)(a) and either of the conditions in paragraphs (2)(b) or the condition in (2)(c).

(2) The conditions are–

(a)that (in addition to being incapacitated) the teacher’s ability to carry out any work is impaired by more than 90% and is likely permanently to be so; and

(b)where the teacher falls within paragraph (1)(a) or (1)(c), that the application for payment required by regulation E36(1A) is made within 12 months after the end of the pensionable employment or within 6 months after the last payment of additional contributions under old regulation C8 or regulation C9 as the case may be; or

(c)where the teacher falls within paragraph (1)(b) that the application for payment required by regulation E36(1A) is made–

(i)where the teacher was on unpaid sick leave, before the period of sick leave ends; and

(ii)in any other case before the date on which, under the arrangements made with the teacher’s employer, the leave is due to end.

(3) The teacher becomes entitled (subject to regulation E35(2)) to payment of a total incapacity pension and (where applicable) a total incapacity lump sum calculated in accordance with regulation E7 or (where applicable) E8 but with the amount of effective reckonable service calculated in accordance with paragraph (4).

(4) The effective reckonable service is (X−Y)/2 where–

  • X is the amount which would have been the teacher’s reckonable service if he or she had ceased to be in pensionable employment on his or her attaining the normal pension age; and

  • Y is the amount specified in paragraph (5).

(5) The amount specified in this paragraph is–

(a)the actual amount of the teacher’s effective reckonable service where–

(i)immediately before the teacher became incapacitated he or she was in excluded employment;

(ii)immediately before the teacher became incapacitated he or she was paying additional contributions under old regulation C8 or regulation C9; or

(iii)immediately before the teacher became incapacitated he or she was in pensionable employment and entitlement to retirement benefits took effect under regulation E6(8) at the same time as he or she ceased to be in pensionable employment; or

(b)the amount which would have been the teacher’s effective reckonable service if he or she had remained in pensionable employment until the date on which entitlement to retirement benefits took effect under regulation E6(8)(b) in any other case.

(6) Where the teacher is a teacher with mixed service, the effective reckonable service specified in paragraph (4) shall be treated as having occurred after the relevant break of service.

(7) The entitlement to payment of a total incapacity pension and (where applicable) lump sum takes effect on the same day as the entitlement to payment of the retirement pension and lump sum..

34.  In regulation E11(4) (avoidance of duplicate pensions) before “regulation C8” insert “old”.

35.  Omit regulation E14 (allocation of part of retirement pension).

36.  In regulation E16(6) (suspension and resumption of incapacity pensions) for “E6(1)(a)” substitute “E6(2)”.

37.  In regulation E17 (withdrawal of incapacity pension)–

(a)at the end of the heading to regulation E17 insert “where application for payment was received before 1st April 2007”;

(b)for “regulation E6(1)(c)” substitute “regulation E6(5) and whose application for payment under regulation E36(1A) was received by the Scottish Ministers before 1st April 2007”; and

(c)for “regulation E6(1)(c)” where it second occurs substitute “regulation E6(5)”.

38.  After regulation E17 insert–

Withdrawal of incapacity pension where application for payment was received on or after 1st April 2007

E17A.(1) This regulation applies where a teacher is entitled to a payment of a retirement pension by virtue of regulation E6(5) and the teacher’s application for payment was received by the Scottish Ministers on or after 1st April 2007.

(2) Paragraph (4) has effect where the teacher was entitled to a total incapacity pension under regulation E10A but the teacher subsequently ceases to satisfy the condition contained in regulation E10A(2)(a).

(3) For the purposes of paragraph (2) a teacher is treated as having ceased to satisfy the condition in regulation E10A(2)(a) if he or she takes up any employment unless–

(a)he or she takes up any employment other than employment in a capacity described in Schedule 2;

(b)he or she provides the Scottish Ministers with a certificate from a registered medical practitioner that in the opinion of the medical practitioner he or she still meets the condition; and

(c)the Scottish Ministers determine that he or she still meets the condition.

(4) Subject to paragraph (5), on the date on which the teacher ceases to satisfy the condition contained in regulation E10A(2)(a) the total incapacity pension referred to in regulation E10A ceases to be payable.

(5) Where however the teacher satisfies the requirements of subparagraphs (a), (b) and (c) of paragraph (3) and satisfies the requirements of subparagraphs (b) and (c) of that paragraph after he or she has taken up the employment the total incapacity pension is payable again as from the date on which the teacher took up the employment.

(6) Paragraph (8) has effect where the teacher subsequently ceases to be incapacitated.

(7) For the purposes of paragraph (6) a teacher is treated as having ceased to be incapacitated if he or she takes up employment in a capacity described in Schedule 2.

(8) On the date on which the teacher ceases to be incapacitated the teacher’s retirement pension ceases to be payable, but any equivalent pension benefits continue to the payable.

(9) Where paragraph (8) had effect the retirement pension becomes payable again (subject to paragraph (10) and to regulation E36(1A))–

(a)from the date on which the teacher attains his or her normal pension age; or

(b)if earlier, from the start of any renewed incapacity.

(10) Paragraph (9) does not apply if the teacher has been in pensionable employment at any time after he or she first became entitled to payment of the retirement pension.

(11) If the pension becomes payable again under paragraph (9)(a) it is to be treated for purposes of regulation E18 as a pension to which the person has become entitled by virtue of regulation E6(2)..

39.—(1) Regulation E18 (abatement of retirement pension) is amended as follows.

(2) For paragraph (1) substitute the following–

(1) Subject to paragraph (7), this regulation applies while a teacher who has become entitled to payment of a teacher’s pension is employed–

(a)in pensionable employment, comparable British service or employment which would have been pensionable but for–

(i)the teacher having made an election under regulation B7; and

(ii)the teacher not having attained the age of 75; or

(b)in full-time employment which is not pensionable employment by reason of the fact that the employment commenced on or after 1st April 1997 and the teacher falls within regulation B6(5) and has not made an election under regulation B8(1A)..

(3) In paragraph (2), in both places where it occurs, omit “–E”.

(4) In paragraph (3)–

(a)for the definition of “C” substitute the following–

  • C is the salary of reference determined in accordance with paragraph (3A), (3B) or (3C);

(b)in the definition of “D” for “the pension” substitute–

(i)where the salary of reference is determined in accordance with paragraph (3A), the pension; and

(ii)where the salary of reference is determined in accordance with paragraph (3B), the last day of employment at that salary.; and

(c)omit the definitions of “E” and “F”.

(5) After paragraph (3) insert the following–

(3A) The salary of reference for a teacher whose most recent entitlement to payment of a teacher’s pension arose before 1st April 2007 is, or where the previous employment was part-time is the full-time equivalent of, the highest annual rate of contributable salary that was payable to the teacher during the 3 years ending immediately before he or she became entitled to payment of the pension, or, if applicable, the highest annual rate of contributable salary that was payable to him or her during the 3 years ending immediately before he or she ceased to be employed in any pensionable employment entered into by the teacher after he or she became entitled to payment of the pension, whichever is greater.

(3B) The salary of reference for a teacher whose most recent entitlement to payment of a retirement pension arises on or after 1st April 2009 is–

(a)where the teacher’s pensionable salary was the amount specified in regulation E34(2)(a), the highest annual rate of contributable salary that was payable to him or her during the 365 days ending immediately before he or she became entitled to payment of the pension, or, if applicable, the highest rate of contributable salary that was payable to him or her during the 365 days ending immediately before he or she ceased to be employed in any pensionable employment entered into by him or her after he or she became entitled to payment of the pension, whichever is the greater; and

(b)where the teacher’s pensionable salary was the amount specified in regulation E34(2)(b) or (3A), the highest annual rate of contributable salary that was payable to him or her during his or her pensionable salary service or, if applicable, the highest rate of contributable salary that was payable to him or her during any period of pensionable employment entered into by him or her after he or she became entitled to payment of pension, whichever is the greater,

or, in either case, where the previous employment was part-time, the full-time equivalent of such salary.

(3C) The salary of reference for a teacher whose most recent entitlement to payment of a retirement pension arises on or after 1st April 2007 but before 1st April 2009 is the salary referred to in paragraph (3A) or (3B) whichever is the higher..

(6) In paragraph (7) for “regulation E6(1)(e)” substitute “regulation E6(7) or regulation E6A”.

40.  In regulation E19 (retirement benefits on cessation of further employment which began on or before 30th September 2001)–

(a)in paragraph (1)(b) omit “(other than further employment to which regulation B9(1) applies)”;

(b)omit paragraph (6);

(c)in paragraph (8) for “regulation E6(1)(c) nor regulation E6(1)(d)” substitute “regulation E6(5) nor regulation E6(6)”; and

(d)in paragraph (10) for “E6(1)(d)” substitute “E6(6)”.

41.  In regulation E20 (retirement benefits on cessation of further employment which began on or after 1st October 2001)–

(a)for the heading substitute “Retirement benefits on cessation of further employment where regulation E19 does not apply”;

(b)for paragraph (1) substitute–

(1) This regulation applies to a teacher, other than a teacher to whom regulation E19 applies, who–

(a)was entitled to be paid a teacher’s pension;

(b)has, after becoming entitled to a teacher’s pension, re-entered pensionable employment (“the further employment”); and

(c)ceases to be in the further employment.;

(c)in paragraph (3) for “regulation E6(1)(a) or (b)” substitute “regulation E6(2) or (4)”;

(d)in paragraph (4) for “E6(1)(c)” and “E6(2)(b)” substitute “E6(5)” and “E6(8)(b)” respectively;

(e)in paragraph (5) for “E6(1)(d)” and “E6(2)(c)” substitute “E6(6)” and “E6(8)(c)” respectively;

(f)in paragraph (6) for “E6(1)(e)” and “E6(2)(d)” substitute “E6(7)” and “E6(8)(d)” respectively; and

(g)in paragraph (7) for “further employment which is pensionable by virtue of regulation B9” substitute “further employment such as is mentioned in paragraph (1)(b)”.

42.  In regulation E23(1) (commutation: exceptional circumstances of ill-health) for “E6(1)(c)” substitute “E6(5)”.

43.  In regulation E24 (death grants)–

(a)in paragraph (1)(b) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”;

(b)for paragraph (2) substitute–

(2) The amount of the death grant payable under paragraph (1) is–

(a)in the case of a death occurring on or after 1st April 1998 but before 1st April 2007, twice his or her pensionable salary; or

(b)in the case of a death occurring on or after 1st April 2007, three times his or her pensionable salary.;

(c)in paragraph (5) for “E6(1)(a)” substitute “E6(2)”;

(d)in paragraph (6)(b) after “a surviving civil partner” insert “, surviving nominated partner”;

(e)for paragraph (7)(a) substitute the following–

(a)if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,; and

(f)in paragraph (7)(c) for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner”.

44.  In regulation E25 (deficiency grants)–

(a)for paragraph (8)(a) substitute–

(a)if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,; and

(b)in paragraph (8)(c) for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner.”.

45.  In regulation E26 (family benefits generally)–

(a)in paragraph (1) after “surviving civil partners,” insert “surviving nominated partners”;

(b)for paragraph (2) substitute–

(2) Where a teacher was entitled to be paid a teacher’s pension and, after becoming so entitled re-entered pensionable employment (“the further employment”), in calculating the benefits paid under regulations E28 to E33, the further employment shall not be taken into account but those regulations shall apply separately to the further employment if they apply to any other pensionable employment.; and

(c)in paragraph (3)(a) and (b) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

46.  After regulation E26 insert the following–

Nomination of partner

E26A.(1) A teacher (A) may nominate another person (B) to receive a pension by giving to the Scottish Ministers a declaration signed by both A and B that the condition in paragraph (2) has been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.

(2) The condition is that–

(a)A is able to marry, or form a civil partnership with, B;

(b)A and B are living together as if they were husband and wife or as if they were civil partners;

(c)neither A nor B is living with a third person as if they were husband and wife or as if they were civil partners; and

(d)either B is financially dependent on A or A and B are financially interdependent.

(3) A nomination has no effect if the condition in paragraph (2) has not been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.

(4) A nomination ceases to have effect if–

(a)either A or B gives written notice of revocation to the Scottish Ministers;

(b)A makes a subsequent nomination under this regulation;

(c)either A marries, forms a civil partnership or lives with a third person as if they were husband and wife or as if they were civil partners; or

(d)B dies.

(5) B is A’s surviving nominated partner if–

(a)the nomination has effect at the date of A’s death; and

(b)B satisfies the Scottish Ministers that the condition in paragraph (2) was satisfied for a continuous period of at least 2 years immediately prior to A’s death.

(6) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex..

47.  In regulation E27 (nomination of beneficiaries)–

(a)for the heading substitute “Nomination of other adult beneficiaries”;

(b)in paragraph (2) after “a previous nomination under this regulation” insert “or regulation E26A”; and

(c)in paragraph (4)(b) after “appointer” insert “makes a nomination under regulation E22A.”

48.—(1) Regulation E28 (entitlement to short-term family benefits) is amended as follows.

(2) In paragraph (1)(b) “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(3) For paragraph (2)(a) substitute the following–

(a)subject to paragraph (4), to the deceased’s surviving spouse, surviving civil partner, surviving nominated partner or nominated beneficiary, and.

(4) Omit paragraph 4(b).

(5) In paragraph (4)(c) after “surviving civil partner”, insert “surviving nominated partner”.

49.—(1) Regulation E29 (amount and duration of short-term family benefits) is amended as follows.

(2) In paragraph (1)(b) before “regulation C8(7)” insert “old”.

(3) In paragraph (2) for “surviving spouse or surviving civil partner” substitute “surviving spouse, surviving civil partner or surviving nominated partner”.

(4) In paragraph (3) and the Table for “spouse, civil partner”, in both places where it occurs, substitute “surviving spouse, surviving civil partner, surviving nominated partner”.

50.—(1) Regulation E30 (entitlement to long-term family benefits) is amended as follows.

(2) After paragraph (2) insert the following–

(2A) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex..

(3) In paragraph (3)–

(a)after “male teacher not falling within paragraph (4A)” insert “or (4B)”;

(b)in sub paragraph (b) for “regulation C8 or C9” substitute “old regulation C8 or C9”; and

(c)in sub paragraph (c) for “regulation C5 or C7(1)” substitute “old regulation C5 or regulation C7(1)”.

(4) In paragraph (4)–

(a)after “paragraph (3) or (4A)” insert “or 4B”;

(b)in sub paragraph (b) for “regulation C5 or C7(1)” substitute “old regulation C5 or regulation C7(1)”;

(c)in paragraph (4)(c) omit “and”;

(d)in paragraph (d) after “transfer value”–

(i)insert “(other than one mentioned in subparagraph (e))”; and

(ii)for “receipt of the transfer value” substitute “the acceptance of the transfer value”.

(e)after paragraph 4(d) insert–

(e)where a transfer value has been accepted in respect of comparable British service–

(i)any period which consists of, or is attributable to, service after 5th April 1988; and

(ii)any other period which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to the deceased’s widower..

(5) In paragraph (4A)–

(a)in sub paragraph (b) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”; and

(b)in sub paragraph (c) for “regulation C5 or C7(1)” substitute “old regulation C5 or regulation C7(1)”.

(6) After paragraph (4A) insert the following–

(4B) In the case of a teacher who dies and is survived by a surviving nominated partner, the teacher’s relevant service comprises, subject to paragraph (2)–

(a)any period of pensionable employment after 31st March 2007;

(b)any period beginning after 31st March 2007 in respect of which additional contributions have been paid under old regulation C8 or regulation C9;

(c)any period of reckonable service in respect of which family benefit contributions have been paid under Part IIB of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIB;

(d)where a transfer value has been accepted in respect of comparable British service, any period which consists of or is attributable to service which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to a person (other than the deceased’s surviving spouse or surviving civil partner) with whom at the date of his or her death the deceased was living as if they were husband and wife or as if they were civil partners; and

(e)where the deceased entered pensionable employment after 31st March 2007 and a transfer value (other than one mentioned in subparagraph (d)) has been accepted, any period counting as reckonable service by virtue of the acceptance of the transfer value..

(7) In paragraph (5)(a) for “any surviving spouse or any surviving civil partner” substitute “any surviving spouse, surviving civil partner or surviving nominated partner”.

(8) In paragraph (9) for “surviving spouse or surviving civil partner” substitute “surviving spouse, surviving civil partner or (where the teacher’s relevant service under paragraph (4B) includes service prior to 6th April 1997) surviving nominated partner”.

51.—(1) Regulation E31 (amounts of surviving spouses', surviving civil partners' or nominated beneficiaries' long-term pensions) is amended as follows.

(2) For the heading substitute “Amount of surviving spouse's, surviving civil partner's, surviving nominated partner’s or nominated beneficiary’s long-term pension”.

(3) In paragraph (1) after “surviving civil partner” insert “, surviving nominated partner”.

(4) In paragraph (3) after “surviving civil partner” insert “, surviving nominated partner”.

(5) After paragraph (7A) insert the following–

(7B) If the pension is payable to a surviving nominated partner, the deceased’s family benefit service, subject to paragraphs (4) and (9) to (11), comprises the relevant service described in regulation E30(4B)..

(6) In paragraph (9)(b) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(7) In paragraph (10) for “paragraphs (4) to (7A)”, in both places where it occurs, substitute “paragraphs (4) to (7B)”.

(8) In paragraph (12)–

(a)in sub paragraph (b) for “regulation C5” substitute “old regulation C5”; and

(b)in sub paragraph (c) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

52.—(1) Regulation E32 (amounts of children’s long-term pensions) is amended as follows.

(2) In paragraph (1)–

(a)in sub-paragraph (a) after “surviving civil partner” insert “, surviving nominated partner”; and

(b)for “E31(7)” substitute “E31(9)”.

53.  After Regulation E32 insert the following–

Additional dependant’s pension where election made under regulation C4B

E32A.(1) Where an election (other than one which has ceased to have effect) was made under paragraph 5(b) or 12(b) of Schedule 2A by, or in respect of, the deceased, the annual rate of the pension referred to in regulation E29(1), E31(1), E32(1) and E32(1A) must be increased by half the additional pension.

(2) The additional pension is the annual rate with which the deceased had been credited, increased as specified in regulation E7A(3)..

54.—(1) Regulation E33 (commencement and duration of long-term family pensions) is amended as follows.

(2) In paragraph (1) after “surviving civil partner” insert “, surviving nominated partner”.

(3) In paragraph (3A) after “does not apply” insert “to any pension payable following the death of a teacher who was in pensionable employment after 31st March 2007 or who was paying or had paid additional contributions under old regulation C8 or regulation C9 in respect of a period after that date or”.

(4) In paragraph (4)(a) after “surviving civil partner” insert “, surviving nominated partner”.

55.—(1) Regulation E34 (pensionable salary) is amended as follows.

(2) For paragraphs (1) to (5) substitute the following–

(1) A teacher’s pensionable salary is either that specified in paragraph (2) or calculated in accordance with regulation E34A.

(2) Where–

(a)the teacher’s full salary in the last 365 days of the teacher’s pensionable salary service is greater than the salary determined under regulation E34A(3); or

(b)the teacher has a pensionable salary service of 365 days or less,

the teacher’s pensionable salary is (subject to paragraph (11)) the teacher’s full salary in the last 365 days of the teacher’s pensionable salary service.

(3) Where the salary determined under regulation E34A(3) is greater than

  • the teacher’s full salary in the last 365 days of the teacher’s pensionable salary service the pensionable salary is that specified in regulation E34A.

(4) Pensionable salary service comprises–

(a)any period spent by the teacher in pensionable employment;

(b)any period counting as reckonable service by virtue of regulation D4;

(c)any period of comparable British service which began before 1st April 1974 and has not been followed by a period of pensionable employment and for which a transfer value has not been accepted;

(d)any period of a kind described in Schedule 8; and

(e)any period counting as reckonable service by virtue of regulation C9.

(5) For the purposes of paragraphs (2), (3) and (11) periods when the teacher was not in pensionable employment shall be disregarded and accordingly the periods of 365 days and 1095 days referred to in those paragraphs may be discontinuous..

(3) In paragraph (6) for “(2), (3)(a)” substitute “(4)(a)”.

(4) In paragraph (7)–

(a)in sub-paragraphs (a) to (e) for “(3)” substitute “(4)”; and

(b)in sub-paragraph (c) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(5) In paragraph (10) for “the material part of his or her terminal service” substitute “the last 365 days of his or her pensionable salary service”.

(6) After paragraph (10) insert the following–

(10A) Paragraph (11) applies where (disregarding the effect of that paragraph) a teacher’s pensionable salary service would be that specified in paragraph (2)..

(7) In paragraph (11) for “where at any time during the material part of a teacher’s terminal service a teacher has received” substitute “where at any time during the last 1095 days of his or her pensionable salary service a teacher to whom this paragraph applies has received”.

(8) In paragraph (12)(a) for “E6(1)(c)” substitute “E6(5)”.

(9) In paragraph (14)(a) after “lump sum payment” insert “(where regulation E8 applies to the teacher)”.

(10) After paragraph (14) insert the following–

(14A) For the purposes of this regulation, in computing periods consisting of numbers of days, no account shall be taken of a leap year day (29th February) except as provided by paragraph (14B).

(14B) Where however a teacher’s pensionable salary service ends in a leap year on or after the leap year day that leap year day shall be included in the period of 365 days referred to in paragraph (2)..

(11) In paragraph (15) for “the material part of his or her terminal service” substitute “his or her last 365 days of pensionable salary service”.

56.  After regulation E34 insert the following–

Pensionable salary – supplemental

E34A.(1) This regulation has effect for the purpose of determining a teacher’s salary where regulation E34(3A) applies (“the alternative pensionable salary”).

(2) In this regulation “salary period” is each period in which the teacher’s salary rate is unchanged.

(3) The average of the teacher’s full salary for the best consecutive 1095 days of pensionable salary service (increased as specified in paragraph (4)) during the period of 10 years ending on the last day of the teacher’s pensionable salary service shall first be determined.

(4) For the purposes of paragraph (3) the teacher’s full salary for each salary period is increased by the amount (if any) by which, immediately before the end of the teacher’s pensionable salary service, it would have increased if it had been the annual rate of an official pension within the meaning of section 5(1) of the 1971 Act beginning, and first qualifying for increases under that Act, on the same day as the salary period ended.

(5) The alternative pensionable salary is the average of the actual full salary for the 1095 days which, resulting from and in accordance with the determination under paragraph (3), are the best consecutive 1095 days of pensionable salary service, multiplied by A/B.

(6) In paragraph (5)–

  • “A” is the annual rate of retirement pension to which the teacher would have been entitled by virtue of these Regulations if–

    (a)

    in calculating the teacher’s full salary for each salary period the teacher’s full salary for that period had in fact been increased as specified in paragraph (4); and

    (b)

    the 1971 Act did not apply; and

  • “B” is the annual rate of retirement pension to which the teacher would have been entitled by virtue of the combined effect of these Regulations and the increase effected by the 1971 Act up to the last day of the teacher’s pensionable salary service, if the teacher’s pensionable salary had been the amount determined under paragraph (5) without the multiplication by A/B.

(7) For the purposes of paragraph (3) periods when the teacher was not in pensionable employment shall be disregarded, except in relation to the period of 10 years, and accordingly the 1095 days referred to in paragraphs (3) and (5) may be discontinuous.

(8) In computing the period of 1095 days referred to in paragraphs (3) and (5) no account shall be taken of a leap year day (29th February).

(9) Where however a teacher’s pensionable salary service ends in a year on or after the leap year day that leap year day shall be included in the period of 1095 days referred to in paragraphs (3) and (5).

(10) In this regulation “full salary” has the same meaning as in regulation E34..

57.  In regulation E35 (effective reckonable service)–

(a)for paragraph (2) substitute–

(2) Subject to paragraph (3), effective reckonable service does not include any reckonable service in excess of 45 years.;

(b)in paragraph (3) for “E6(1)(d)” substitute “E6(6)”; and

(c)in paragraph (5) for “regulation E6(1)(c) or (d)” substitute “E6(5) or (6)”.

58.  After regulation E36(1) (payment of benefits) insert–

(1A) No benefit is to be paid unless a written application for payment has been made and paragraph (1B), if applicable, has been complied with.

(1B) Where the application for payment is made on the basis that the teacher is entitled to retirement benefits under regulation E6(5), the application shall–

(a)where the teacher falls within regulation E6(5)(c)(i)(aa) and (bb), be signed by, or on behalf of, the teacher’s employer; and

(b)shall be accompanied by all medical evidence necessary to determine whether the teacher falls within regulation E6(5) and, where applicable, that the teacher’s ability to carry out any work is impaired by more than 90% and is likely permanently to be so.

(1C) If the Scottish Ministers notify the teacher in writing that they so require, the applicant is to provide any relevant information (including further medical evidence such as is mentioned in paragraph (1B)) specified by them that is in the applicant’s possession or that he or she can reasonably be expected to obtain..

59.  After regulation E37(4) (interest on late payment of certain benefits) insert–

(4A) Where, pursuant to regulation E17A(5) a total incapacity pension is payable again as from the date on which the teacher took up employment the teacher shall, for the purposes of this regulation, be treated as having become entitled to the total incapacity pension again on the date on which the Scottish Ministers determine that the teacher still meets the condition specified in regulation E10A(2)(a)..

60.  In regulation F1(2) (pension sharing mechanism in the scheme: shareable rights) after “surviving civil partner” insert “, surviving nominated partner”.

61.  In regulation F9(5)(b) (failure to discharge liability in respect of pension credit within the implementation period – death of ex-spouse or ex-civil partner within period) for “the age of 60” substitute “normal pension age”.

62.—(1) Regulation F10 (appropriate rights and pension credit benefits under the scheme) is amended as follows.

(2) In paragraph (1) after “shall consist only of a pension,” insert “(where paragraph (3) applies)”.

(3) After paragraph (2) insert–

(2A) Paragraph (3) applies where the pension credit member’s normal pension age is 60..

(4) At the beginning of paragraph (3) insert “Where this paragraph applies”.

(5) In paragraphs (4) and (5), for “normal retirement age”, in both places where it occurs, substitute “normal pension age”.

63.  After regulation F10 insert–

Normal pension age

F10A.(1) For the purposes of this Part a pension credit member’s normal pension age is, subject to paragraph (2), the normal pension age of the corresponding debit member.

(2) Where–

(a)the corresponding debit member is a person with mixed service; and

(b)at the time when the relevant arrangement referred to in section 28 of the 1999 Act took effect the corresponding debit member had not ceased to be a pre-2007 entrant by virtue of regulation EA1(4),

the pension credit member’s normal pension age shall be 60..

64.—(1) Regulation F13 (commutation: exceptional ill-health) is amended as follows.

(2) In paragraph (1) for “normal benefit age” and “normal retirement age” substitute “normal pension age”.

(3) In paragraph (3) for “he had already reached the normal retirement age” substitute “he or she had already reached the normal pension age”.

65.  After regulation F13 insert–

Commutation on election by pension credit member

F13A.(1) A pension credit member may, by an election made with the application for payment under regulation E36(1A), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his or her pension.

(2) The amount of such lump sum must be a multiple of £12 and cannot exceed–

(a)in the case of a pension credit member with a normal pension age of 65, his or her permitted maximum; and

(b)in the case of a pension credit member with a normal pension age of 60, his or her permitted maximum less the lump sum paid under regulation F10(3).

(3) Where a lump sum is paid under this regulation the annual rate of the pension credit member’s pension is reduced by £1 for every £12 of lump sum paid under paragraph (2)..

66.—(1) Regulation G1 (payment of transfer values) is amended as follows.

(2) In paragraph (2) for the words from “before attaining” to the end substitute–

  • before attaining–

    (a)

    in the case of a pre-2007 entrant or a teacher with mixed service in respect of his or her service before 1st April 2007, the age of 60 years or, where paragraph (5) applies, the age of 59 years; or

    (b)

    in any other case, the age of 65 years or, where paragraph (5) applies, the age of 64 years..

(3) In paragraph (4)(a) after “the age of 60 years” insert “in a case falling under paragraph (2)(a) or the age of 65 in any other case”.

(4) In paragraph (4)(b) after “the age of 59 years” insert “in a case falling under paragraph (2)(b) or the age of 64 years in any other case”.

67.  For regulation H3 (employers'contributions) substitute the following–

Employers' contributions

H3.(1) In this regulation–

(a)“relevant period” is to be construed in accordance with regulation H2(6);

(b)the “net contribution rate” for any relevant period is the aggregate of the percentage specified for that period under regulation H2(6) and any percentage specified for that period under regulation H2(10) less any percentage specified for that period under regulation H2(11);

(c)an education authority is deemed to be the employer of every person employed in or in connection with a school under their management, other than of a person who is in the employment of an employment business; and

(d)“employment business” has the meaning assigned to it by section 13(3) of the Employment Agencies Act 1973(6).

(2) Subject to paragraph (5) the employer of a teacher in pensionable employment shall during every relevant period pay contributions of the required percentage of the teacher’s contributable salary for the time being.

(3) The required percentage for the relevant period starting on 1st April 2007 is 13.5%.

(4) The required percentage for any subsequent relevant period shall be A X, where A is the net contribution rate as defined in paragraph (1)(b) and X is the percentage determined in accordance with regulation C3.

(5) No contributions are to be payable in respect of anyone to whom regulation E35(2) has become applicable.

(6) Where a teacher commences employment by virtue of regulation J2 and that teacher either simultaneously or subsequently commences employment at reduced salary by virtue of regulation J1 the employer of that teacher shall pay the contributions payable under paragraphs (1) and (2) and regulation C3 on the amount determined by paragraph (7).

(7) The amount referred to under paragraph (6) shall be the difference between–

(a)the contributable salary which would be payable under regulation J2 if employment at reduced salary by virtue of regulation J1 had not been commenced; and

(b)the contributable salary payable where employment has been commenced under both regulation J1 and J2..

68.  After regulation H5 (employers contributions – part-time elections) insert–

Employers' contributions in respect of further employment

H5A.  Where regulation C4A (contributions where an election under regulation B8(1A) is to take effect from an earlier date) applies, the employer of the teacher in pensionable employment shall–

(a)pay contributions calculated in accordance with regulation H3 (employers' contributions) and treated as due on the last day of each month for the period starting with the earlier date agreed under regulation B8(1A) and ending immediately before the first day of the month after that in which the notice was given;

(b)pay interest on such contributions which have accrued at 7% per annum compounded with monthly rests from the 8th day after the end of the month in which the contributions were due to the date of payment of the contributions; and

(c)pay such contributions and interest together with the amounts collected under regulation C15(1A) to the Scottish Ministers no later than 6 weeks after the date on which the employer gave his agreement under regulation B8(1A).

Employers' contributions in respect of additional benefits

H5B.  Where an employer has elected under regulation C4B (election in respect of additional benefits) to pay additional contributions in respect of a teacher, payment to the Scottish Ministers of the lump sum referred to in paragraph 12 of Schedule 2A shall be made within the period referred to in paragraph 27(a) of that Schedule..

69.  In regulation H6(3) (payment by employers to Scottish Ministers), after “elected under” insert “old”.

70.—(1) Regulation J1 (modified application in case of employment at reduced salary) is amended as follows.

(2) For paragraph (1)(a) substitute–

(a)a teacher who has been in pensionable employment either–

(i)continues to be employed by the same employer at a reduced rate of contributable salary, where the reduced rate of contributable salary had effect before 31st March 2007; or

(ii)ceases to be employed before 31st March 2007 and is re-employed before 1st April 2007 (whether by the same or a different employer) at a reduced rate of contributable salary, and.

(3) For paragraph (1)(f) substitute–

(f)where he or she is not now in pensionable employment by virtue of paragraph B9 as it had effect immediately before 1st April 2007..

71.—(1) Regulation J2 (winding down employment) is amended as follows.

(2) For paragraph (1)(a) substitute–

(a)have elected to wind down no earlier than 4 years prior to normal pension age;.

(3) For paragraph (1)(c) substitute–

(c)subject to sub-paragraph (b) have a minimum of 25 years' teaching service prior to commencing winding down employment, which period may include for qualifying purposes a maximum period of 5 years during any break in teaching service; and.

72.  In regulation J6(3) (repayment of contributions where an election is not made under regulation H6(5)) after “regulation C3,” where it occurs insert “old”.

73.  After regulation J6 insert the following–

Declaration where lump-sum payments are made

J6A.(1) The Scottish Ministers may, before paying any lump sum under regulations E2(2)(b), E6A, E8, E8A, E19, E23, E34(14), F10, F13, F13A or J9 require the teacher to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the Scottish Ministers.

(2) The declaration is a declaration, in a form specified by the Scottish Ministers, signed by that teacher, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004(7) (recycling of lump sums) does not apply.

(3) Where no such declaration is received by the Scottish Ministers by the date referred to in paragraph (1)–

(a)where the payment in question would otherwise have been a lump sum under regulation E6A, E8A or F13A the Scottish Ministers may treat the election under regulation E6A, E8A or F13A, as the case may be, as being of no effect;

(b)where the payment in question would otherwise have been a lump sum under regulation E8, E34(14) or F10 the Scottish Ministers may, in place of the lump sum, pay an additional pension representing the value of the lump sum; and

(c)where the payment in question would otherwise have been a lump sum under regulation J9, the Scottish Ministers need not pay the lump sum.

(4) The amount of the additional pension referred to in paragraph (3)(b) shall be determined by the Government Actuary..

74.—(1) Schedule 1 (glossary of expressions) is amended as follows–

(2) Omit the definition of “normal retirement age”.

(3) Insert the following definitions at the appropriate place in alphabetical order–

“2007 or later entrant”Shall be construed in accordance with regulation EA1.;
“Normal pension age”Shall be construed in accordance with regulation EA1 except in Part F, where it shall be construed in accordance with regulation F10A.;
“Old regulation C5”Regulation C5 as it had effect immediately before 1st April 2007.;
“Old regulation C6”Regulation C6 as it had effect immediately before 1st April 2007.;
“Old regulation C8”Regulation C8 as it had effect immediately before 1st April 2007.;
“Permitted maximum”Shall be construed in accordance with paragraph 2 of Schedule 29 to the Finance Act 2004.;
“Phased retirement benefits”Shall be construed in accordance with regulation E6A.;
“Post-break employment start”Shall be construed in accordance with regulation EA1.;
“Pre-2007 entrant”Shall be construed in accordance with regulation EA1.;
“Relevant break of service”Shall be construed in accordance with regulation EA1.;
“Retail prices index”The index of retail prices published by the Office for National Statistics.; and
“Surviving nominated partner”Shall be construed in accordance with regulation E26A..

(4) For the definition of “appropriate factor” substitute–

“Appropriate factor”

A factor from time to time specified in relation to the age of a teacher by the Scottish Ministers after taking advice from the Government Actuary and different factors may be specified–

(a)

for teachers with a normal pension age of 60, for teachers with a normal pension age of 65, and for teachers to whom Part V of Schedule 9 applies, and

(b)

for different provision of these Regulations..

75.  After Schedule 2 (pensionable employment) insert, as Schedule 2A, Schedule 1 to these Regulations.

76.  In Schedule 3 (maximum purchase of added years)–

(a)omit paragraphs 1 and 2; and

(b)in paragraph 3(1)–

(i)in sub paragraph (a) before “regulation C5” insert “old”; and

(ii)for “E6(1)(d)” substitute “E6(6)”.

77.  In Schedule 4 (additional contributions to purchase past added years)–

(a)before “regulation” wherever it occurs insert “old”;

(b)in paragraph 3, omit “Subject to paragraphs 4 and 6”;

(c)omit paragraphs 4 and 5; and

(d)omit paragraph 14.

78.  In Schedule 5 (additional contributions to purchase added years under earlier provisions)–

(a)in paragraph 1(1) for “Subject to sub-paragraphs (2) to (6) and paragraphs 2 and 3” substitute “Subject to paragraph 3” and for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”;

(b)omit paragraphs 1(3) to (6) and 2;

(c)in paragraph 3 omit “or 2” and before “regulation C5” insert “old”;

(d)in paragraph 4(2)(b) before “regulation C8” insert “old”; and

(e)omit paragraph 5(2).

79.—(1) Schedule 6 (family benefits) is amended as follows.

(2) In paragraph 9(1)(b) for “C5, C7, C8 or C9” substitute “old regulation C8, regulation C9 or Schedules 4 or 5”.

(3) For paragraph 11(1) substitute–

(1) Subject to sub-paragraph (2) and except as otherwise provided in Part III, where payment is to be made by Method A, the payment period (in years) is A/B × C, where–

  • A is the period (in years) specified under paragraph 10(1)(b),

  • B is the rate specified under paragraph 10(1)(d), and

  • C is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part.

(1A) The multiplier determined for the purpose of this Part may differ depending on whether the election is made under paragraph 9(1) or 9(2)..

(4) Omit Table 5.

(5) In paragraph 11(2)–

(a)omit “(“the Table period”)”; and

(b)for “in which the Table period ends” substitute “in which that period ends”.

(6) For paragraph 11(3) substitute–

(3) Where payment is to be made by Method B, the lump sum payable, which must be paid within 3 months after its amount is notified by the Scottish Ministers, is A × B × C, where

  • A is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part,

  • B is the period (in years) in respect of which the election was made, and

  • C is the appropriate amount..

(7) In paragraph 12A(4)(a) for regulation “B6” substitute “B7”.

(8) For paragraph 12B(3) substitute–

(3) Except as otherwise provided in Part III, the payment period (in years) is A/B × C, where

  • A is the period (in years) specified under paragraph 12A(5),

  • B is the percentage rate specified under paragraph 12A(6), and

  • C is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying teacher..

(9) Omit Table 5A.

(10) In paragraph 12C(2) for “A is 1.9% if the qualifying teacher is a man and 1.7% if the qualifying teacher is a woman,” substitute “A is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying teacher,”.

(11) After Part IIA insert–

PART IIBCONTRIBUTIONS: SURVIVING NOMINATED PARTNERS

12D.(1) A teacher (other than a teacher who has previously made an election under sub-paragraph (2)) who has nominated a person under regulation E26A is a qualifying teacher for the purposes of this Part while–

(a)the nomination continues to have effect, and

(b)he or she is in pensionable employment.

(2) A qualifying teacher may by giving notice in writing to the Scottish Ministers before the end of the election period elect to pay family benefit contributions attributable to a period of his or her reckonable service which is not relevant service as mentioned in regulation E30(4B).

(3) An election under sub-paragraph (2) must be accompanied by a declaration signed by the qualifying teacher that he or she is in normal health.

(4) If a qualifying teacher dies before the end of the election period without making an election under sub-paragraph (2), his or her surviving nominated partner may by giving notice in writing to the Scottish Ministers within 3 months of the qualifying teacher’s death elect to pay family benefit contributions attributable to a period of the qualifying teacher’s reckonable service which is not relevant service as mentioned in regulation E30(4B).

(5) The election period begins on the day on which the qualifying teacher makes the nomination and ends on the earlier of the day on which–

(a)any election he or she makes under regulation B7 has effect,

(b)he or she has been a qualifying teacher for a period of 6 months in relation to that nomination.

(6) The teacher who makes an election under this paragraph must specify in the notice the period in respect of which the election is made, which must be either the whole of the qualifying teacher’s reckonable service which is not relevant service as mentioned in regulation E30(4B) or such part of such service as consists of one or more whole years.

(7) Where an election is made under sub-paragraph (2), the qualifying teacher must state in the notice whether family benefit contributions are to be paid by Method 1 (monthly payments) or by Method 2 (lump sum) and, if the former, must specify the percentage rate of his or her contributable salary at which they are to be paid, which must comply with paragraphs 13(2) and (3).

(8) Where a qualifying teacher’s pensionable employment is part-time, for the purpose of specifying (under sub-paragraph (7)) a percentage rate at which family benefit contributions are to be paid or varying (under paragraph 13(4)) that rate, sub-paragraph (7) and paragraph 13(2) have effect as if the reference to the qualifying teacher’s contributable salary were to his or her full-time equivalent salary.

(9) Except as provided in paragraph 13(4), an election under this paragraph is irrevocable.

12E.(1) This paragraph applies where–

(a)the qualifying teacher states under paragraph 12D(7) (in accordance with an election made under paragraph 12D(2)) that family benefit contributions are to be paid by Method 1, and

(b)the payment period exceeds a year.

(2) Where this paragraph applies, except as otherwise provided in Part III, the qualifying teacher must pay family benefit contributions to the Scottish Ministers by way of monthly payments from his or her contributable salary at the percentage rate specified under paragraph 12D(7) or, where the rate is varied under paragraph 13(4), at the specified higher rate for the duration of the payment period.

(3) Except as otherwise provided in Part III, the payment period (in years) is A/B × C, where–

  • A is the period (in years) specified under paragraph 12D(6),

  • B is the percentage rate specified under paragraph 12D(7), and

  • C is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part for a teacher of the same sex as the person nominated under regulation E26A.

(4) Where the payment period would (apart from this sub-paragraph) end on a day other than the last day of a month, the payment period ends with the last day of the month in which it would otherwise end.

12F.(1) Except where paragraph 12E applies, the teacher who makes an election under paragraph 12D must pay family benefit contributions to the Scottish Ministers by way of a lump sum calculated in accordance with the Method 2 formula in sub-paragraph (2) within 3 months of receiving written notice of the amount of the lump sum.

(2) The Method 2 formula is A × B × C, where–

  • A is the multiplier determined from time to time by the Scottish Ministers (after taking advice from the Government Actuary) for the purpose of this Part for a teacher of the same sex as the person nominated under regulation E26A,

  • B is the period (in years) specified under paragraph 12D(6), and

  • C is the annual rate of the qualifying teacher’s contributable salary..

(12) In paragraph 13(1)(c) after “paragraph 12B (Method 1)” insert “or paragraph 12D (Method 1)”.

(13) In paragraph 13(3) for “regulation C5 or C7” substitute “Schedules 4 or 5”.

(14) In paragraph 13(7) before “regulation C8” insert “old”.

(15) In paragraph 13(10)(b) before “regulation C8” insert “old”.

(16) In paragraph 14–

(a)in sub-paragraph (2) for “the age of 60” and “E6(1)(c)” substitute “the normal pension age” and “E6(5)” respectively;

(b)in sub-paragraph (2)(b) after “his 60th birthday” insert “in the case of a pre-2007 entrant or his 65th birthday in any other case”;

(c)after sub-paragraph (2) insert–

(2A) But sub-paragraph (2) does not apply in a case to which sub-paragraph (2B) applies.

(2B) This sub-paragraph applies in a case where–

(a)the qualifying teacher dies before attaining the normal pension age or becomes entitled to payment of retirement benefits by virtue of regulation E6(5),

(b)family benefit contributions were payable by monthly payments under paragraph 12D (Method 1), and

(c)the Scottish Ministers are not satisfied that the declaration under paragraph 12D(3) was made in good faith..

(d)in sub-paragraph (3) for “the age of 60” substitute “the normal pension age, or in a case to which sub-paragraph (2B) applies”.

(17) In paragraph 15 after “surviving civil partner” insert “, surviving nominated partner”.

80.  Schedule 7 (incomplete payment of additional contributions)–

(a)in paragraph 2(1) before “regulation C5(11)” insert “old”; and

(b)in paragraph 10(1)(b) for “E6(1)(c)” substitute “E6(5)”.

81.  In Schedule 9 (modified application in certain cases)–

(a)in paragraphs 3(2)(b), 4(3)(b) and 16(1) for “E6(1)(c)” substitute “E6(5)”;

(b)in paragraph 15(1) before “regulation C5” insert “old”;

(c)in paragraph 19 before “regulation C5(1)” insert “old”;

(d)in paragraph 26(2) before “regulation C6” insert “old”; and

(e)in paragraph 27 for “the age of 60” substitute “the normal pension age”.

82.  Omit Schedules 10 and 11.

83.  In paragraph 9 of Schedule 12 (transfer values) for “C5 and C8” substitute “old C5 and old C8”.

Transitional provisions and savings

84.  Schedule 2 (which contains transitional and savings provisions) shall have effect.

Amendment of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996

85.  The Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996(8) are amended in accordance with regulations 85 to 103.

86.  In regulation 2 (interpretation)–

(a)in paragraph (1)(c) after “corresponding provision in” insert “the 1992 Regulations or”;

(b)in paragraph (3)–

(i)in the definition of “child” for “E21(5) and (6)” substitute “E26(6) and (7)”;

(ii)in the definition of “effective service” in sub-paragraph (b) for “regulation B6” substitute “regulation B7”;

(iii)in the definition of “new employment” for “regulation E15(1)(a) or (b)” substitute “regulation E18(1)(a) or (b)”;

(iv)in the definition of “nominated beneficiary” for “regulation E22” substitute “regulation E27”;

(v)in the definition of “the 1984 Regulations” omit “and” where it second occurs;

(vi)after the definition of “the 1984 Regulations” insert–

“the 1992 Regulations” means the Teachers' Superannuation (Scotland) Regulations 1992(9); and; and

(vii)in the definition of “the Superannuation Regulations” for “1992” substitute “2005(10)”.

87.  In regulation 3 (teachers to whom Part II applies)–

(a)in paragraph (1)(a)(ii) for “regulation E5(1)(f)” substitute “regulation E6(6)”; and

(b)in paragraph (3)(b) for “regulation B6” substitute “regulation B7”.

88.  In regulation 5 (lump sum compensation and annual compensation)–

(a)in paragraph (2) for “regulation E7(1)” and “regulation E7(3)” substitute “regulation E8(2)” and “regulation E8(5)” respectively; and

(b)in paragraph (3) for “regulation E6(1)” and “regulation E6(4)” substitute “regulation E7(2)” and “regulation E7(7)” respectively.

89.  Omit regulation 6 (allocation of part of annual compensation).

90.  In regulation 7 (short-term compensation)–

(a)in paragraph (1)(a) for “regulation E23” substitute “regulation E28”;

(b)in paragraph (1)(b) for “regulation B6” substitute “regulation B7”; and

(c)in paragraph (3) after “civil partner” insert “, surviving nominated partner”.

91.  In regulation 8 (adults' long-term compensation)–

(a)in paragraph (1)(a) for “regulation E25” substitute “regulation E30”;

(b)in paragraph (1)(b) for “regulation B6” substitute “regulation B7”; and

(c)in paragraph (3) omit “any allocation under regulation 6 or”.

92.  In regulation 9 (children’s long-term compensation)–

(a)in paragraph (1)(a) for “regulation E25” substitute “regulation E30”;

(b)in paragraph (1)(b) for “regulation B6” substitute “regulation B7”; and

(c)in paragraph (4) before “regulation 6” insert “old”.

93.—(1) Regulation 10 (payment of compensation under regulations 7, 8 and 9) is amended as follows.

(2) In the Table below paragraph (1)–

(a)for “regulation E23(2)” substitute “regulation E28”; and

(b)after “civil partner”, in the three places where it occurs, insert “, surviving nominated partner”.

(3) After paragraph (3A) insert–

(3B) But paragraph (3) does not apply to any long-term adult compensation payable following the death of a person who was in pensionable employment after 31st March 2007 or who would have been in such employment after that date but for an election under regulation B7 of the Superannuation Regulations..

94.  In regulation 14(3) (adjustment of compensation where a designated teacher has ceased to be in new employment) for “regulation F1” substitute “regulation G1”.

95.  In regulation 16(3)(b) (additional compensation in certain cases of redundancy) for “regulation B6” substitute “regulation B7”.

96.  In regulation 16A(2)(b) (teachers to whom Part IIIA applies) for “regulation B6” substitute “regulation B7”.

97.—(1) Regulation 16C (mandatory compensation) is amended as follows.

(2) In paragraph (1) for “regulation E5(1)(f)” substitute “regulation E6(7)”, for “regulations E6(4) and E7(3)” substitute “regulations E7(6) and E8(5)”.

(3) In paragraph (2)–

(a)for “regulation E7” substitute “regulation E8”;

(b)for “regulation E7(3)” in the three places where it occurs substitute “regulation E8(5)”;

(c)for “regulation E16” substitute “regulation E19”; and

(d)for “regulation E16(10)” substitute “regulation E19(10)”.

(4) In paragraph (3)–

(a)for “regulation E6” substitute “regulation E7”;

(b)for “regulation E6(4)” in the three places where it occurs substitute “regulation E7(7)”;

(c)for “regulation E16” substitute “regulation E19”; and

(d)for “regulation E16(10)” substitute “regulation E19(10)”.

98.  In regulation 16D (abatement of annual compensation during further employment)–

(a)in paragraph (1) for “regulation E15” substitute “regulation E18”;

(b)in paragraph (2)(b) for “regulation E15(2)(b)” substitute “regulation E18(2)(b)”.

99.  In regulation 16E (supplementary deficiency grants) for “paragraph (4A) of regulation E20” substitute “regulation E25(6)” and for “paragraph (4A)” substitute “paragraph (6)”.

100.  In regulation 16F (entitlement to short-term family benefits)–

(a)in paragraphs (1) and (2) for “regulation E23” substitute “E28”; and

(b)in paragraph (1) for “regulation E24(4)” substitute “regulation E29(4)”.

101.  After regulation 19A (arrangements for payment of compensation under Part II or IIIB) insert the following–

Declaration where lump sum payments are made

19B.(1) An employing authority may, before paying any lump sum under regulation 5 or 16C require the teacher to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the employing authority.

(2) The declaration is a declaration in a form specified by the Scottish Ministers, signed by that teacher, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004(11) does not apply.

(3) Where no such declaration is received by the employing authority by the date referred to in paragraph (1) the employing authority may, in place of the lump sum, pay additional annual compensation representing the value of the lump sum.

(4) The amount of additional compensation referred to in paragraph (3) shall be determined by the Scottish Ministers pursuant to regulation J6A of the Teachers' Superannuation (Scotland) Amendment Regulations 2007(12).

102.  After regulation 20(3) (revocations and transitional provisions) insert–

(4) Regulation 6 shall despite its revocation by regulation 88 of the Teachers' Superannuation (Scotland) Amendment Regulations 2007(13) continue to have effect where a declaration was delivered to the compensating authority pursuant to regulation 6(2) before 1st April 2007..

103.  In paragraph 3 of Schedule 2 (other entitlement) for “regulation B6” substitute “regulation B7”.

104.  In paragraph 2(b)(ii) of Schedule 4 (adjustment on account of new employment) for “regulation E12” substitute “regulation E14” and before “regulation 6” insert “old”.

Amendment of Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995

105.  The Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995(14) (“the AVC Regulations”) are amended in accordance with regulations 105 to 110 of these Regulations.

106.  In regulation 2(3) (interpretation)–

(a)for the definition of “dependant” for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner”;

(b)in the definition of “dependant” in sub-paragraph (c) after “a nomination under regulation” insert “26A or”;

(c)after the definition of “lump sum death benefit” insert–

“normal pension age” is to be construed in accordance with the Superannuation Regulations;;

(d)omit the definition of “retire”;

(e)in the definition of “salary” in sub paragraph (b) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”; and

(f)after the definition of “shareable rights” insert–

“surviving nominated partner” means a person nominated in accordance with regulation E26A of the Superannuation Regulations;.

107.  For regulation 5(4) (allocation of lump sum death benefit to provide dependants' pensions) substitute–

(4) A person who has continued to pay regular contributions up to his normal pension age but does not then cease to be in pensionable employment may elect to pay regular contributions up to his first birthday after he reached the normal pension age to provide for a lump sum death benefit; and so long as he has not ceased to be in pensionable employment further elections may be made annually in respect of years commencing on his first birthday after he reached the normal pension age and subsequent birthdays..

108.  In regulation 8(2)(c) (contributor) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

109.—(1) Regulation 12 (retirement and dependants' pensions) is amended as follows.

(2) For paragraph (1) substitute–

(1) In this regulation “the relevant date”, in relation to a contributor or participator, means–

(a)the date on which he attains the age of 55; or

(b)the date on which he or she becomes entitled to payment of retirement benefits under regulation E6 of the Superannuation Regulations,

whichever is the earlier.

(1A) The benefits that may be provided at any time after the relevant date in accordance with this regulation under a pension policy purchased as described in paragraph (7) are a retirement pension, one or more dependants' pensions or a lump sum which is a pension commencement lump sum for the purposes of Part 1 of Schedule 29 to the 2004 Act..

(3) In paragraph (2) for “the date of retirement” substitute “the relevant date”.

(4) In paragraph (5) for “Not earlier than one month before retirement, a contributor by giving written notice to the Scottish Ministers, may” substitute “A contributor may, at any time but not earlier than one month before the relevant date, by giving written notice to the Scottish Ministers”.

(5) For paragraph (6) substitute–

(6) In the case of a retirement pension, the notice may also specify that, if the participator dies within the period of 5 years beginning when the retirement pension commences, the pension shall continue to be paid during the remainder of that period to such person as the authorised provider or the Scottish Ministers, where they are liable to make payments of the pension pursuant to regulation 16(2), determine..

(6) In paragraph (9) for “retirement” in both places where the word occurs substitute “the relevant date”.

110.—(1) Regulation 13A (pension sharing on divorce) is amended as follows.

(2) In paragraph (4) for “the age of 60” substitute “the normal pension age”.

(3) In paragraph (7)(b) for “retirement” substitute “the relevant date”.

111.—(1) Regulation 16 (payment by Scottish Ministers) is amended as follows.

(2) In paragraph (2A) at the beginning insert “Subject to paragraphs (2B) and (2C)”.

(3) After paragraph (2A) insert the following–

(2B) The Scottish Ministers may, before paying any lump sum as mentioned in regulation 12(1A) require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2C) by a date determined by the Scottish Ministers.

(2C) The declaration is a declaration in a form specified by the Scottish Ministers, signed by that person, to the effect that paragraph 3A of Schedule 29 to the 2004 Act does not apply.

(2D) Where no such declaration is received by the Scottish Ministers by the date referred to in paragraph (2B) the Scottish Ministers may treat the election under regulation 12 for a lump sum benefit as of no effect, and may apply the amount of the lump sum to the purchase of a pension policy from the insurance company referred to in regulation 9 to provide such benefits as appear to them to be suitable..

TOM McCABE

A member of the Scottish Executive

St Andrew’s House,

Edinburgh

28th February 2007

We consent

DAVE WATTS

ALAN CAMPBELL

Two of the Lords Commissioners of Her Majesty’s Treasury

5th March 2007

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