Regulations F1, F2 and F3
SCHEDULE 11TRANSFER VALUES
PART IOUTWARD TRANSFERS
1. Subject to the provisions of paragraphs 2 to 6 and 9 and 10, a transfer value to be paid in accordance with the provisions of regulation F1 in respect of a teacher shall be–
(a)the capitalised value of his accrued rights under these Regulations at the material date, and any associated rights under the Pensions (Increase) Act 1971 and the Pensions (Increase) Act 1974(1), less a sum, if any, in respect of any state scheme premium which the Secretary of State has paid and not recovered in respect of a period of service included in the valuation of those rights; together with
(b)where the transfer value is without reasonable cause or excuse not paid within 6 months of the material date, and it is not to be made to a club scheme, the greater of–
(i)interest, if any, calculated on a daily basis over the period from the material date to the date on which the transfer value is paid, at the rate set out in regulation 4(4)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1985(2); or,
(ii)the amount by which the transfer value falls short of what it would have been if the material date had been the date on which the transfer value was paid.
2. Where–
(a)a transfer value is payable to an approved superannuation scheme which is not a club scheme; and
(b)it falls to be calculated by reference to service rendered by the teacher before 21st October 1988,
the transfer value payable shall be the total of A and the greater of B or C, where–
A is a transfer value calculated in accordance with paragraph 1 in respect of the teacher’s reckonable service after 20th October 1988,
B is a transfer value calculated in accordance with paragraph 1 in respect of the teacher’s reckonable service before 21st October 1988, and
C is a 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 service before 21st October 1988.
3. Where, prior to the last date on which he is required to pay a transfer value under these Regulations, the Secretary of State has determined under regulation E18 (forfeiture of benefits) that the benefits payable under these Regulations shall be withheld in whole or part, any transfer value payable in respect of that person shall be reduced in proportion to the reduction in the total value of the benefits or shall be withheld as the case may be.
4. Where–
(a)a teacher requests that a transfer value be paid to–
(i)an occupational pension scheme which is not contracted out within the meaning of section 32 of the Pensions Act(3); or
(ii)a personal pension scheme which is not an appropriate personal pension scheme; or
(iii)a self-employed pension arrangement; and
(b)the trustees or managers of the occupational pension scheme, personal pension scheme or self-employed pension arrangement are able or willing to have transferred to it only the liabilities for a teacher’s accrued rights other than his and his spouse’s rights to guaranteed minimum pensions; and
(c)the teacher does not require the Secretary of State to use that portion of the transfer value that represents guaranteed minimum pension in one of the ways specified in regulation F1,
the teacher’s transfer value shall be reduced by the amount of a state scheme premium sufficient for the Secretary of State for Social Services to meet his liability in respect of the teacher’s and his spouse’s guaranteed minimum pensions.
5.—(1) Subject to sub-paragraph (2), in respect of a teacher who is in excluded employment by virtue of an election under regulation B6 (membership), the transfer value calculated in accordance with this Part shall be the aggregate of the following:–
(a)in relation to the teacher’s retiring allowance, that part of his accrued rights which bears the same proportion to his total accrued rights as his reckonable service after 5th April 1988 bears to his total reckonable service; and
(b)in relation to his spouse’s pension, that part of his accrued rights applicable to service after 5th April 1988.
(2) Sub-paragraph (1) shall not apply to a person whose reckonable service before 6th April 1988 amounts to less than 2 years.
6. Subject to paragraph 7, where–
(a)a transfer value limited in accordance with paragraph 5(1) has been paid in respect of a teacher; and
(b)that teacher has subsequently ceased to be employed in excluded employment other than by virtue of an election under regulation B7 (resumption of membership) before attaining the age of 60 years, or, where regulation F1(6) applies, the age of 59 years,
a right to a transfer value in respect of any part of his accrued rights to which, but for the operation of paragraph 5(1), he would have been entitled on ceasing to be employed in pensionable employment, shall accrue to the teacher on the date on which he ceased to be employed in excluded employment and shall be valued accordingly.
7. In relation to any teacher to whom paragraph 6 applies–
(a)regulation F1(5) shall have effect as if for the words “he ceased to be employed in pensionable employment or entered excluded employment ” there were substituted the words “he terminated excluded employment”; and
(b)the definition of “material date” in paragraph 14 shall have effect as if for the words “ceased to be employed in pensionable employment or entered excluded employment ” there were substituted the words “terminated excluded employment”.
8. For the purposes of paragraph 6, where a teacher ceases to be employed in excluded employment other than by virtue of an election under regulation B7 (resumption of membership) but that teacher enters again into excluded employment or enters pensionable employment, then, if there is between those two employments–
(a)an interval not exceeding one month; or
(b)an interval of any length if the second of the employments results from the exercise of a right to return to work under section 45(1) of the Employment Protection (Consolidation) Act 1978(4) (right to return to work following pregnancy or confinement),
they shall be treated as a single employment.
9. Where one or more transfer values have been paid to the Secretary of State in respect of a teacher, any transfer value paid by him shall be at least equal to the aggregate of that transfer value or those transfer values and any contributions made by that teacher under regulations C1, C3 and C8, except where it falls to be made to a club scheme.
10. A transfer value paid under this Part shall be at least equal in amount to the cash equivalent, if any, to which a teacher would otherwise be entitled under Part II of Schedule 1A to the Pensions Act.
PART IIADDITIONAL TRANSFER VALUES IN RESPECT OF WAR SERVICE
11. The additional transfer value payable shall be calculated in accordance with the formula
where–
A is the period of reckonable service calculated in accordance with regulation F2(6) of these Regulations;
B is the appropriate factor in the Table below;
C in the case of a teacher in pensionable employment is the pensionable salary at 1st April 1978 or, in the case of a person in receipt of retiring allowances, the pensionable salary at date of retirement (increased in accordance with the Pensions (Increase) Act 1971 as appropriate to his retiring allowances as at 1st April 1978 or appropriate later date);
D is interest on (A × B × C) at the rate referred to in paragraph 1(b)(i), compounded with yearly rests, in respect of any period between 1st April 1978 and the day on which the transfer payment is made.
TABLE TRANSFER VALUES FOR THE TRANSFER OF WAR SERVICE
| Age last birthday at 1st April 1978 | Men | Women |
|---|---|---|
| 40 | 0.1009 | 0.1328 |
| 41 | 0.1018 | 0.1344 |
| 42 | 0.1024 | 0.1357 |
| 43 | 0.1031 | 0.1372 |
| 44 | 0.1038 | 0.1389 |
| 45 | 0.1045 | 0.1405 |
| 46 | 0.1058 | 0.1422 |
| 47 | 0.1073 | 0.1437 |
| 48 | 0.1085 | 0.1454 |
| 49 | 0.1099 | 0.1470 |
| 50 | 0.1111 | 0.1487 |
| 51 | 0.1125 | 0.1502 |
| 52 | 0.1150 | 0.1525 |
| 53 | 0.1176 | 0.1548 |
| 54 | 0.1203 | 0.1571 |
| 55 | 0.1229 | 0.1599 |
| 56 | 0.1267 | 0.1628 |
| 57 | 0.1306 | 0.1663 |
| 58 | 0.1345 | 0.1707 |
| 59 | 0.1397 | 0.1759 |
| 60 | 0.1463 | 0.1810 |
| 61 | 0.1465 | 0.1818 |
| 62 | 0.1469 | 0.1825 |
| 63 | 0.1473 | 0.1833 |
| 64 | 0.1478 | 0.1840 |
| 65 | 0.1480 | 0.1844 |
| 66 | 0.1436 | 0.1800 |
| 67 | 0.1392 | 0.1756 |
| 68 | 0.1355 | 0.1713 |
| 69 | 0.1311 | 0.1669 |
| 70 | 0.1267 | 0.1625 |
| 71 | 0.1230 | 0.1575 |
| 72 | 0.1190 | 0.1519 |
| 73 | 0.1144 | 0.1463 |
| 74 | 0.1106 | 0.1406 |
| 75 | 0.1063 | 0.1350 |
| 76 | 0.1019 | 0.1294 |
| 77 | 0.0981 | 0.1238 |
| 78 | 0.0938 | 0.1181 |
| 79 | 0.0900 | 0.1131 |
| 80 | 0.0854 | 0.1088 |
| 81 | 0.0815 | 0.1044 |
| 82 | 0.0775 | 0.1006 |
| 83 | 0.0735 | 0.0969 |
| 84 | 0.0698 | 0.0931 |
| 85 | 0.0661 | 0.0894 |
| 86 | 0.0623 | 0.0856 |
| 87 | 0.0585 | 0.0825 |
| 88 | 0.0554 | 0.0794 |
| 89 | 0.0525 | 0.0769 |
| 90 | 0.0496 | 0.0744 |
| 91 | 0.0467 | 0.0719 |
| 92 | 0.0440 | 0.0694 |
| 93 | 0.0419 | 0.0669 |
| 94 | 0.0398 | 0.0644 |
| 95 | 0.0377 | 0.0625 |
| 96 | 0.0356 | 0.0600 |
| 97 | 0.0342 | 0.0581 |
| 98 | 0.0321 | 0.0556 |
| 99 | 0.0306 | 0.0531 |
PART IIIINWARD TRANSFERS
12. Where a transfer value has been paid to, and accepted by, the Secretary of State, there shall be credited to the teacher, in respect of whom the payment was made, a period of reckonable service calculated in accordance with paragraph 13.
13. For the purposes of paragraph 12–
(a)where the transfer value–
(i)is paid by the trustees or managers of a club scheme;
(ii)represents all of the teacher’s accrued rights in that scheme; and
(iii)has been calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to club schemes under Part I of this Schedule,
the period of reckonable service to be credited to the teacher shall be equal to the period of service which, if used to calculate a transfer value to be paid to an occupational pension scheme which is a statutory scheme under Part I of this Schedule, would produce an amount equal to the transfer value received by the Secretary of State, and in making the calculation regard shall be had to the teacher’s age, rate of pensionable pay, marital status and, in addition, to any other factor notified to the Secretary of State by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount; and
(b)in any other case, the period of reckonable service credited to the teacher shall be calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to occupational pension schemes (which do not fall to be treated as statutory schemes) under Part I of this Schedule, due allowance being given for the expected increase in the salary of teachers between the appropriate date and the date on which the teacher in respect of whom the transfer value was paid would attain the age of 60 years.
PART IVINTERPRETATION
14. In this Schedule–
(a)“accrued rights” means the rights which have accrued in respect of a teacher under these Regulations at the material date, or which would have accrued in respect of him if the period of service necessary to satisfy the requirements of regulation E4 (qualification for retiring allowances) had been the period which he had completed at that date;
(b)“appropriate date” means the date on which the person in respect of whom the transfer value is paid became employed in pensionable employment or, if the transfer value is received more than 12 months after that date, the date on which it is received;
(c)“capitalised value” means the capitalised value at the material date as determined by the Secretary of State, having regard to investment conditions and the contingencies on which benefits are, or are to be, payable under these Regulations;
(d)“club scheme” means an occupational pension scheme which–
(i)is a contracted-out scheme;
(ii)provides benefits calculated by reference to the remuneration of the participant;
(iii)is open to new members or, if it is a closed scheme, its trustees or managers also manage an open scheme which is a club member for new recruits of the same grade or level of post as the participants in the closed scheme;
(iv)has undertaken to comply with the reciprocal arrangements for the payment and receipt of transfer values agreed from time to time between members of the club; and
(v)is approved for the purposes of this Schedule by the Treasury;
(e)“material date” means the date on which the teacher ceased to be employed in pensionable employment or entered excluded employment or, if it is later, the date of his application for payment of a transfer value which he has not subsequently withdrawn;
(f)“state scheme premium” means a state scheme premium or transfer premium under Part III of the Pensions Act.
S.I. 1985/1931, to which there are amendments not relevant to these Regulations.
Section 32 was amended by the Social Security and Housing Benefits Act 1982 (c. 24), Schedule 4, and by the Social Security Act 1986 (c. 50), section 9 and Schedules 2, 10 and 11.