Substituted Schedule 12
17. For Schedule 12, substitute—
Part G
“SCHEDULE 12Transfer Values
PART 1Outward transfers
1. For the purposes of this Part—
(a)a transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under section 97 of the 1993 Act for the calculation of cash equivalents; and
(b)“occupational pension scheme” has the same meaning as in section 150(5) of the 2004 Act.
2. Paragraphs 3 to 6 are subject to paragraphs 7 to 11.
3. Where—
(a)a transfer value is payable to the scheme managers of a club scheme or a personal pension scheme; or
(b)a transfer value is payable to the scheme managers of a registered pension scheme which is not a club scheme and none of the service to which it relates is service before 21st October 1988,
and no right to a cash equivalent was acquired, the transfer value is to be calculated on the cash equivalent basis.
4. Where—
(a)a transfer value is payable to the scheme managers of a registered pension scheme which is an occupational pension scheme and not a club scheme; and
(b)the service to which it relates includes service before 21st October 1988; and
(c)no right to a cash equivalent was acquired,
the amount of the transfer value is the total of A and the greater of B and C, where—
A is a notional transfer value, calculated on the cash equivalent basis, in respect of the person’s service after 20th October 1988,
B is a notional transfer value, calculated on the cash equivalent basis, in respect of the person’s service before 21st October 1988, and
C is a notional transfer value, calculated as if Schedule 10 to the 1977 Regulations as in force on 5th April 1988 had continued in force in respect of his or her service before 21st October 1988.
5. Where—
(a)a transfer value is payable to the scheme managers of a registered pension scheme which is an occupational pension scheme and not a club scheme;
(b)the service to which it relates includes service before 21st October 1988; and
(c)a right to a cash equivalent was acquired,
the amount of the transfer value is D – E, where—
D is the transfer value that would have been payable if paragraph 4 had applied, and
E is the amount of the cash equivalent.
6. Where—
(a)a transfer value is payable to the scheme managers of a personal pension scheme; and
(b)a right to a part cash equivalent was acquired,
the transfer value is to be calculated on the cash equivalent basis but as if the person’s pensionable employment had ended on 5th April 1988.
7. Unless the receiving scheme is a club scheme, where—
(a)the person in respect of whom a transfer value is payable had become entitled to count reckonable service under regulation G8(2) or G24(3); and
(b)the amount determined in accordance with paragraph 3, 4, 5 or 6 (as appropriate), together with that of any cash equivalent paid on the transfer, is less than the appropriate amount,
a transfer value of the appropriate amount is to be paid.
(2) The appropriate amount is A + B - C, where—
A is the transfer value accepted under regulation G15 or the relevant part of the transfer value accepted under regulation G23,
B is the total of the contributions paid by the person under Part C, except any that fell to be treated for the purposes of Part H as employer’s contributions, and
C is any cash equivalent paid on the transfer.
8. Where a person has elected to receive phased retirement benefits, the transfer value is calculated by reference to benefits other than those phased retirement benefits.
9.—(1) This paragraph applies where—
(a)a transfer value falls to be calculated in accordance with paragraph 3 or 4; and
(b)for the purposes of paragraph 4, C is greater than B.
(2) If the transfer value is without reasonable cause or excuse not paid within 6 months of the guarantee date, and it is not to be made to a club scheme, the amount calculated in accordance with paragraph 3 or 4 is increased by the greater of—
(a)interest, if any, calculated on a daily basis over the period from the guarantee date to the date on which the transfer value is paid, at the rate set out in regulation 10(2) of the Occupational Pension Schemes (Transfer Values) Regulations 1996(1); or
(b)the amount by which the transfer value falls short of what it would have been if the guarantee date had been the date on which the transfer value was paid.
10. Where a transfer value is paid to the scheme managers of an occupational pension scheme which is not a contracted-out scheme, or of a personal pension scheme, there may be deducted from it the amount of any contributions equivalent premium paid by the Scottish Ministers.
11. The Scottish Ministers may, on the advice of the Scheme actuary, adjust a transfer value calculated in accordance with this Part.
PART 2Inward transfers
12. If regulations G13 and G14 apply, the teacher is entitled to count as reckonable service the period of service under a comparable United Kingdom scheme certified by the scheme managers as having stood to the teacher’s credit under the scheme when the teacher ceased to be subject to it.
13.—(1) If regulations G8 and G9 apply, the teacher is entitled to count as reckonable service the period specified in this paragraph.
(2) A period specified in this paragraph is determined by the Scottish Ministers having taken advice from the Scheme actuary and by reference to the age and salary of the teacher notified by the scheme managers of the club scheme.
(3) Any sum representing interest that is included in the transfer value is not to be taken into account.
14.—(1) If regulations G20, G21 and G22 apply, the teacher is entitled to count as reckonable service the period specified in this paragraph.
(2) A period specified in this paragraph is determined by the Scottish Ministers having taken advice from the Scheme actuary and by reference to—
(a)the teacher’s age and salary at the date the teacher entered pensionable employment, if a transfer value is received within 12 months of entering pensionable employment;
(b)the teacher’s age and salary at the date a transfer value is received, if the transfer value is received more than 12 months after the teacher enters pensionable employment.
(3) Any sum representing interest that is included in the transfer value is to be taken into account.
15.—(1) This paragraph applies where—
(a)the teacher is subject to a personal pension scheme after ceasing to be in pensionable employment and that pensionable employment was after 31st December 1985;
(b)the teacher has made an election under regulation B8;
(c)the previous election under regulation B7 was made before 30th June 1994;
(d)the teacher has been in excluded employment between the date of the election under regulation B7 and the date of the election under regulation B8;
(e)a cash equivalent or a transfer value under regulation F1 of the 1992 Regulations (or both) was paid in respect of the teacher in consequence of the teacher ceasing to be in pensionable employment by virtue of the election under regulation B6 of those Regulations;
(f)the teacher is an individual as is mentioned in section 172(1) of the 1995 Act; and
(g)the Scottish Ministers accept a transfer value under regulation G15 of the amount specified in sub-paragraph (3).
(2) In this paragraph—
“the period of original pensionable employment” means the period during which the teacher was in pensionable employment before the teacher made the election under regulation B6 of the 1992 Regulations; and
“the transfer out payment” means the payment referred to in sub-paragraph (1)(e).
(3) The amount referred to in sub-paragraph (1)(g) is A + B, where—
A is the transfer value which, calculated on the basis specified in paragraph 14(2), would enable the person to count the period of excluded employment as reckonable service as if it had been pensionable employment; and
B is the greater of—
the transfer out payment together with—
in a case where the transfer value was paid to the Scottish Ministers pursuant to regulation G15 within four weeks of the request under regulation G21, an amount, determined actuarially, which represents the income which would have been received had such sum been invested during the period starting at the end of the month in which the transfer out payment was made and ending at the end of the month in which the request under regulation G21 was made; and
in any other case, the amount referred to in paragraph (i) above together with a further amount, determined actuarially, which represents the income which would have been received compounded with monthly rests, had such sum been invested during the period starting at the end of the month in which the request under regulation G21 was made and ending at the end of the month in which the transfer value was paid to the Scottish Ministers; and
the amount which would be paid as a cash equivalent or transfer value (or both) by the Scottish Ministers in respect of the teacher if at the date on which the teacher made the election under regulation B8—
the teacher was in pensionable employment and made an election under regulation B7; and
the teacher had been in pensionable employment for a period equal to the period of original pensionable employment.
(4) Where this paragraph applies the teacher is entitled to count as reckonable service—
(a)the reckonable service arising from the period of original pensionable employment; and
(b)such service arising from the period of excluded employment as if it had been pensionable employment.
PART 3Inward transfers: bulk transfers
16. In this Part “bulk transfer” has the same meaning as in regulation G24.
17. The teacher is entitled to count as reckonable service a period of service determined in accordance with the terms of the bulk transfer as agreed between the Scottish Ministers and the scheme managers of the previous scheme, the Scottish Ministers having taken advice from the Scheme actuary as to those terms.”.