The Teachers' Superannuation (Scotland) Amendment Regulations 2007

Amendment of the Teachers' Superannuation (Scotland) Regulations 2005

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.”.