The Teachers’ Superannuation (Scotland) Amendment Regulations 2015

Substituted Part G

13.  For Part G, substitute—

“PART G Transfer Values

CHAPTER 1 General provisions

Application of Part

G1.— (1) This Part does not affect a teacher’s entitlement to a cash equivalent conferred by or under Chapter 4 of Part 4 of the 1993 Act.

(2) A transfer value in respect of any pension credit rights or pension credit benefits is not to be paid or accepted under this Part.

(3) A transfer value in respect of a teacher is not to be accepted under this Part if the previous scheme was a money purchase arrangement as defined in section 152 of the 2004 Act—

(a) to which the teacher’s employer was not a contributor; and

(b) which provided benefits additional to those provided by a scheme to which the teacher was a contributor.

(4) Under this Part a transfer value may not be paid in respect of the teacher’s phased retirement benefits in payment, only in respect of the teacher’s other benefits.

(5) A transfer value may be paid or accepted under this Part, in respect of the teacher, to the extent that paragraph (6) or (7) applies to the transfer value.

(6) A transfer value referable to the teacher’s NPA 65 reckonable service may be paid or accepted if—

(a) the teacher has mixed service; and

(b) the teacher’s NPA 60 reckonable service has come into payment.

(7) A transfer value referable to the teacher’s further employment may be paid if—

(a) retirement benefits, a short-service serious ill-health grant or a short-service annuity have not come into payment in respect of that further employment; and

(b) retirement benefits, a short-service serious ill-health grant or a short-service annuity have come into payment in respect of the previous employment.

(8) In paragraph (6)—

“NPA 65 reckonable service” means reckonable service in relation to which a person has a normal pension age of 65;

“NPA 60 reckonable service” means reckonable service in relation to which a person has a normal pension age of 60.

Interpretation of Part

G2.   In this Part—

“club transfer value”, in relation to reckonable service in this scheme or another club scheme, means an amount calculated—

(a)

in accordance with the club transfer arrangements; and

(b)

by reference to tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation;

“CUKS transfer value”, in relation to reckonable service in this scheme or a comparable United Kingdom scheme, means an amount calculated in accordance with the arrangements for comparable United Kingdom scheme transfers;

“transfer value”, in relation to reckonable service which is not related to a club transfer value or a CUKS transfer value, under—

(a)

this scheme, means a value determined by the Scottish Ministers having taken advice from the Government Actuary; or

(b)

another scheme, means a value determined by the scheme actuary and accepted by the Scottish Ministers.

Reduction in transfer value: lifetime allowance charge

G3.— (1) This regulation applies where—

(a) the lifetime allowance charge under section 214 of the 2004 Act arises on the payment of a cash equivalent or a transfer value in respect of a teacher to a qualifying recognised overseas pension scheme; and

(b) the teacher and the Scottish Ministers are jointly and severally liable to the charge.

(2) The Scottish Ministers must pay the charge.

(3) The cash equivalent or transfer value which, apart from this regulation, would be payable must be reduced to reflect the amount of the charge in such manner as the Scottish Ministers determine, after taking advice from the scheme actuary.

(4) In this regulation, “qualifying recognised overseas pension scheme” has the same meaning as in Part 4 of the 2004 Act.

CHAPTER 2 Transfers on a club basis

SECTION 1 Application of Chapter

Application of this Chapter

G4.   This Chapter applies in relation to the payment and acceptance of club transfer values.

SECTION 2 Transfers out

G5.— (1) This Section applies to—

(a) a teacher who ceases to be in pensionable employment and enters a club scheme;

(b) a teacher who—

(i) ceases to be in pensionable employment;

(ii) enters a public service scheme established for teachers and maintained in the Channel Islands or the Isle of man on or before 31st March 2015; and

(iii) makes an application for a transfer value payment on or before 31st March 2017.

(2) Part 1 of Schedule 12 determines the amount of a club transfer value payment.

Payment under this Section

G6.— (1) A club transfer value may only be paid under this Section in respect of a teacher if the teacher satisfies the conditions in either paragraph (2) or (3).

(2) The conditions are that the teacher—

(a) has left all pensionable employment under this scheme;

(b) makes a written application to the Scottish Ministers within 12 months from the date on which the teacher becomes subject to another club scheme;

(c) meets the requirements for a club transfer from the receiving scheme; and

(d) has not reached the age of 75.

(3) The conditions are that the teacher—

(a) has entered pensionable employment in a public service scheme for teachers established and maintained in the Channel Islands or the Isle of Man on or before 31st March 2015, after leaving this scheme, and makes a written application for a transfer value payment to the Scottish Ministers either—

(i) on or before the day on which the teacher reaches the normal pension age; or

(ii) after the day on which the teacher reaches the normal pension age, having entered pensionable employment—

(aa) on or before the day on which the teacher reaches the normal pension age; and

(bb) immediately after the end of the teacher’s employment in this scheme service; and

(b) makes the application on or before 31st March 2017.

Restrictions on the payment of a club transfer value

G7.   Save as provided in regulation G1(5) a club transfer value is not to be paid under this Section if, before a teacher’s application for a club transfer value payment is received, the teacher—

(a) becomes subject to another club scheme and is in receipt of retirement benefits;

(b) is in receipt of a short-service serious ill-health grant; or

(c) is in receipt of a short-service annuity.

SECTION 3 Transfers in

Application of this Section

G8.— (1) This Section applies to—

(a) a teacher who ceases to be in another club scheme and enters pensionable employment in this scheme; and

(b) a teacher who—

(i) ceases to be in a public service scheme for teachers established and maintained in the Channel Islands or the Isle of Man on or before 31st March 2015;

(ii) enters pensionable employment in this scheme on or before 31st March 2015; and

(iii) makes an application for a transfer value payment on or before 31st March 2017.

(2) A teacher in respect of whom a club transfer value is accepted is entitled to count reckonable service in accordance with Part 2 of Schedule 12.

Receipt under this Section

G9.— (1) A club transfer value may be accepted under this Section in respect of a teacher if the teacher satisfies the conditions in either paragraph (2) or (3).

(2) The conditions are that the teacher—

(a) enters pensionable employment;

(b) makes a written application to the Scottish Ministers within 12 months from the date on which the teacher enters pensionable employment;

(c) makes the application before the teacher attains the age of 75; and

(d) before the teacher ceased to be subject to the previous scheme, retirement benefits have not come into payment to the teacher either—

(i) under regulation E6 (retirement benefits); or

(ii) under a provision of a statutory scheme corresponding to regulation E6.

(3) The conditions are that the teacher—

(a) enters pensionable employment on or before 31st March 2015, after leaving a public service scheme for teachers established and maintained in the Channel Islands or the Isle of Man; and either—

(i) makes a written application to the Scottish Minsters on or before the day on which the teacher reaches the normal pension age; or

(ii) makes the application after the day on which the teacher reaches the normal pension age, having entered pensionable employment—

(aa) on or before the day on which the teacher reaches the normal pension age; and

(bb) immediately after the end of the teacher’s employment in the previous scheme service; and

(b) makes the application on or before 31st March 2017.

CHAPTER 3 Transfers on a comparable United Kingdom service basis

SECTION 1 Application of Chapter

Application of this Chapter

G10.   This Chapter applies in relation to the payment and acceptance of CUKS transfer values.

SECTION 2 Transfers out

Application of this Section

G11.— (1) This Section applies if—

(a) a teacher ceases to be in pensionable employment and has become subject to a comparable United Kingdom scheme on or before 31st March 2015; and

(b) the teacher makes an application for a transfer value payment on or before 31st March 2017.

(2) Part 1 of Schedule 12 determines the amount of a CUKS transfer value payment.

Payment under this Section

G12.— (1) A CUKS transfer value may only be paid under this Section in respect of a teacher if either paragraph (2) or (3) applies.

(2) This paragraph applies if the teacher makes an application for a CUKS transfer value payment on or before the day the teacher reaches the normal pension age.

(3) This paragraph applies if—

(a) the teacher makes an application for a CUKS transfer value after the day on which the teacher reaches the normal pension age;

(b) the teacher joined the comparable United Kingdom scheme—

(i) immediately after ceasing to be in pensionable employment; and

(ii) before reaching the normal pension age; and

(c) before the teacher’s application for a CUKS transfer value payment is received, the teacher is not in receipt of—

(i) retirement benefits from the other comparable United Kingdom scheme;

(ii) a short-service serious ill-health grant; or

(iii) a short–service annuity.

SECTION 3 Transfers in

Application of this Section

G13.— (1) This Section applies if a teacher—

(a) ceases to be in a comparable United Kingdom scheme;

(b) enters pensionable employment in this scheme on or before 31st March 2015; and

(c) makes an application for a transfer value payment on or before 31st March 2017.

(2) A teacher in respect of whom a CUKS transfer value is accepted is entitled to count reckonable service in accordance with Part 2 of Schedule 12.

Receipt under this Section

G14.— (1) A CUKS transfer value payment may be accepted under this Section in respect of a teacher to whom this Section applies, if either paragraph (2) or (3) applies.

(2) This paragraph applies if—

(a) the teacher makes an application for a CUKS transfer value on or before the day on which the teacher reaches the normal pension age; and

(b) when the teacher’s application is received, the teacher is not in receipt of—

(i) retirement benefits under this scheme;

(ii) a short-service serious ill-health grant; or

(iii) a short-service annuity.

(3) This paragraph applies if the teacher—

(a) makes an application for a CUKS transfer value after the day on which the teacher reaches the normal pension age; and

(b) the teacher entered pensionable employment—

(i) immediately after ceasing comparable UK service; and

(ii) on or before the date on which the teacher reaches the normal pension age.

CHAPTER 4 Transfers on a cash equivalent basis

SECTION 1 Application of Chapter

Application of this Chapter

G15.   This Chapter applies in relation to the payment and acceptance of transfer values.

SECTION 2 Transfers out

Application of this Section

G16.— (1) This Section applies if a teacher ceases to be in pensionable employment and has become subject to another registered pension scheme.

(2) This Section only applies to a teacher who ceases to be in pensionable employment and becomes subject to a personal pension scheme if the teacher was in pensionable employment after 31st December 1985.

Payment under this Section

G17.   A transfer value may only be paid under this Section in respect of a teacher if the teacher—

(a) has left all pensionable employment under this scheme;

(b) makes a written application for a transfer value payment to the Scottish Ministers within 12 months from the date on which the teacher becomes subject to another registered pension scheme; and

(c) has not reached the normal pension age when the teacher’s application is received.

Restrictions on the payment of a transfer value

G18.   A transfer value is not to be paid under this Section if, before a teacher’s application for a transfer value payment is received, the teacher is in receipt of—

(a) retirement benefits under this scheme;

(b) a short–service serious ill-health grant; or

(c) a short-service annuity.

Limitation on payment of transfer values

G19.— (1) Where the receiving scheme is not a contracted-out occupational pension scheme, a transfer value may only be paid under this Section if the teacher—

(a) is not qualified for retirement benefits;

(b) has ceased to be in pensionable employment before 6th April 1978; or

(c) is a married woman or widow who, by virtue of an election made or treated as made under regulations under section 19(4) of the Social Security Contributions and Benefits Act 1992(1), either is liable to pay primary Class 1 contributions or Class 2 contributions at a reduced rate or is under no liability to pay Class 2 contributions.

(2) Where a teacher has accrued section 9(2B) rights, a transfer value may only be paid in respect of those rights if any applicable provisions of Part 3 of the Contracting-out (Transfer and Transfer Payment) Regulations 1996(2) are complied with.

(3) Where the teacher has acquired a right to a cash equivalent, a transfer value may only be paid under this Section if—

(a) the service to which the cash equivalent relates includes service before 1st September 1988; and

(b) the right has been exercised by requiring the whole of the cash equivalent to be paid to the scheme managers of an occupational pension scheme which is not a club scheme.

(4) Where the teacher has acquired a right to a part cash equivalent, a transfer value may only be paid under this Section if the teacher would not remain qualified for retirement benefits on taking that right.

(5) In this regulation—

“occupational pension scheme” has the same meaning as in section 150(5) the 2004 Act; and

“receiving scheme” means the scheme a teacher becomes subject to after leaving pensionable employment.

SECTION 3 Transfers in

Application of this Section

G20.— (1) This Section applies if a teacher ceases to be in another registered pension scheme and enters pensionable employment.

(2) A teacher in respect of whom a transfer value on a cash equivalent basis is accepted is entitled to count reckonable service in accordance with Part 2 of Schedule 12.

Receipt under this Section

G21.   A transfer value may be accepted under this Section in respect of a teacher who enters pensionable employment if—

(a) the teacher makes a written application to the Scottish Ministers within 12 months from the date on which the teacher enters pensionable employment; and

(b) the teacher’s application is made before the teacher attains the normal pension age.

Restrictions on the acceptance of a transfer value

G22.   A transfer value payment in respect of a teacher may not be accepted under this Section if, before the teacher’s application for a transfer value payment is received, the teacher is in receipt of—

(a) retirement benefits under this scheme;

(b) a short-service serious ill-health grant; or

(c) a short-service annuity.

CHAPTER 5 Bulk transfers

SECTION 1 Transfers out

Payment of bulk transfer values

G23.— (1) This regulation applies where, as a result of a relevant transfer to a new employer, a teacher or a group of teachers is no longer in pensionable employment and either has joined or is entitled to join the new employer’s pension scheme (“the receiving scheme”), referred to below as a bulk transfer.

(2) A transfer value may be calculated by the Scottish Ministers, after taking advice from the scheme actuary, in respect of a teacher who has made a written application to the Scottish Ministers for such a transfer within 3 months after the date on which the teacher was notified of the opportunity to take part in the bulk transfer arrangement.

(3) Such a transfer value may be paid to the receiving scheme on the teacher becoming subject to the scheme.

SECTION 2 Transfers in

Acceptance of bulk transfer values

G24.— (1) This regulation applies where, as the result of a relevant transfer to a new employer, a teacher or a group of teachers has become employed in pensionable employment and is given the opportunity to transfer past service pension rights, referred to below as a “bulk transfer”.

(2) A transfer value may be accepted by the Scottish Ministers in respect of a teacher who has made a written application within 3 months after the date on which the teacher was notified of the opportunity to take part in the bulk transfer, but this paragraph is subject to regulation G22.

(3) A teacher in respect of whom a transfer of such rights has been accepted as part of a bulk transfer is entitled to count reckonable service in accordance with Part 2 of Schedule 12.”.

(1)

1992 c.4.

(2)

S.I. 1996/1462.