The Teachers' Superannuation (Scotland) Regulations 1993

Regulations E11, E20, G3, H1 AND H2

SCHEDULE 9 MODIFIED APPLICATION IN CERTAIN CASES

PART I NATIONAL INSURANCE MODIFICATION OF PENSIONS

Interpretation

1.  In this Part, unless the context otherwise requires–

“the Act” means the National Insurance Act 1965(1);

“national insurance modifications” means the modifications made to these Regulations and to previous provisions whereby the superannuation benefits provided thereunder are modified in relation to insured persons for the purposes of the Act;

“non-participating employment” has the meaning assigned to it by section 56(1) of the Act;

“participating employment” means employment other than non-participating employment;

“retired teacher” means a teacher who has ceased to be in pensionable employment and has attained state pensionable age.

Classification of teachers

2.—(1) For the purposes of this Part–

(a) “existing teacher” means–

(i) a teacher who was employed in pensionable employment at any time before 1st July 1948 whether or not his contributions in respect of that employment were returned to him; or

(ii) a teacher who before 1st March 1948 had completed a course approved for the purposes of this Part by the Secretary of State (“an approved course”) or was engaged on an approved course, or had been accepted or provisionally accepted for an approved course, or had applied to be accepted for and had as a result of that application subsequently become engaged on an approved course and had entered pensionable employment within 6 months of completing the said approved course;

(b) “new entrant teacher” means either–

(i) a teacher who enters pensionable employment for the first time on or after 1st July 1948; or

(ii) a teacher to whom sub-paragraph (a) applies and who makes an election under sub-paragraph (3).

(2) An existing teacher shall be unmodified, that is to say, shall be a teacher to whom the national insurance modifications do not apply; and a new entrant teacher shall be modified, that is to say, shall be a teacher to whom the national insurance modifications apply.

(3) An existing teacher in pensionable employment on 1st July 1948 shall remain unmodified unless he elected on or before 30th September 1948 to be modified or, if he was not in pensionable employment on 1st July 1948, so elects within 3 months after the date on which he first enters or re-enters pensionable employment. Notice so given is irrevocable.

(4) Where a teacher was employed in comparable British service, or in other employment in respect of which a transfer value has been received, he shall on entering pensionable employment retain the classification which in the opinion of the Secretary of State corresponds to his classification in his former superannuation scheme, and where his classification has not been so determined the provisions of sub-paragraph (3) shall apply to him as they apply to a teacher who was not in pensionable employment on 1st July 1948.

Reduction of retirement pension

3.—(1) A retirement pension payable under these Regulations to a retired teacher to whom paragraph 2(1)(b)(i) or 2(4) applied shall be reduced by whichever is the lesser of £67.75 and the amount calculated by multiplying £1.70 for each completed year, and by a proportionate amount in respect of part of a year, of reckonable service after 1st July 1948 and before 1st April 1980.

(2) In the case of a retired teacher–

(a) who was last in pensionable employment before 1st April 1980, and

(b) whose retirement pension is one to which he became entitled by virtue of regulation E5(1)(e) (incapacity),

• any additional period of reckonable service taken into account under regulation E9(3) shall be deemed for the purposes of sub-paragraph (1) to be such service as is there mentioned.

(3) Where the retired teacher before 1st April 1980 elected for the purposes of regulation 21 of the 1977 Regulations to purchase past added years, these added years shall be deemed for the purposes of sub-paragraph (1) to be such reckonable service as is there mentioned.

(4) Sub-paragraph (1) applies not only in the case of such a retired teacher as is there mentioned, but also in the case of a teacher who became entitled to retiring allowances before 1st April 1980 to whom paragraph 3 of Schedule 12 to the 1977 Regulations did not apply, if the Secretary of State is satisfied that the contributions paid by him before 1st April 1980 were modified on the assumption that the said paragraph 3 did apply in his case.

4.—(1) A retirement pension payable under these Regulations to a teacher, who became entitled to payment of retiring allowances before 1st April 1980 and who is modified by virtue of an election made in terms of paragraph 2(3), shall be reduced for each completed year, and proportionately for part of a year, of reckonable service after the date of modification by the sum specified in either column (2) or column (3), whichever is appropriate, of the Table in the Appendix to this Part which appears against his age at the date of modification specified in column (1).

(2) In the case of a teacher who became entitled to payment of retiring allowances before 1st April 1980 and who is modified by virtue of an election made in terms of paragraph 2(3), the date of modification shall be, for the purposes of this paragraph, 1st July 1948 where notice has been given before the said date and the first day of the month following the date of the election in any other case.

(3) In the case of a teacher–

(a) who became entitled to retiring allowances before 1st April 1980; and

(b) whose retirement pension is one to which he became entitled by virtue of regulation E5(1)(e) (incapacity),

• any additional period of reckonable service taken into account under regulation E9(3) is deemed for the purposes of sub-paragraph (1) to be such service as is there mentioned.

5.  For the purposes of paragraphs 3 and 4, the reckonable service of a teacher who became entitled to payment of retiring allowances before 1st April 1980 is his effective reckonable service.

6.  If, in calculating the amount of a retirement pension payable to a retired teacher under these Regulations, there is taken into account any period of employment after 2nd April 1961 and before 6th April 1975 which is participating employment, the retirement pension shall, except as provided in paragraphs 8 and 9, be reduced for each year of such period, and proportionately for part of a year, by the appropriate amount specified in the Table below:–

TABLE

	Reduction in retirement pension for each whole year of period
Annual rate of salary during period	From 3rd April 1961 From 6th January 1964 to 5th January 1964 to 5th April 1975
	Men	Women	Men	Women
	£	£	£	£
Not exceeding £468	nil	nil	nil	nil
Over £468 but not exceeding £520	.19	.16	.19	.16
Over £ 520 but not exceeding £ 572	.58	.48	.58	.48
Over £572 but not exceeding £624	.96	.80	.96	.80
Over £624 but not exceeding £676	1.35	1.12	1.35	1.12
Over £676 but not exceeding £728	1.73	1.44	1.73	1.44
Over £728 but not exceeding £780	2.12	1.76	2.12	1.76
Over £780 but not exceeding £832	2.31	1.92	2.51	2.09
Over £832 but not exceeding £884	2.31	1.92	2.90	2.42
Over £884 but not exceeding £936	2.31	1.92	3.29	2.74
Over £936	2.31	1.92	3.48	2.90

7.  If, in calculating the amount of a retirement pension, there is taken into account any period of employment after 2nd April 1961 and before 6th April 1975 in respect of which a payment in lieu of contributions has been made under the Act, the retirement pension shall, except as provided in paragraphs 8 and 9, be reduced–

(a) by £2.31 in the case of a man and by £1.92 in the case of a woman for each year, and proportionately for part of a year, of any period from 3rd April 1961 to 5th January 1964; and

(b) by £3.48 in the case of a man and by £2.90 in the case of a woman for each year, and proportionately for part of a year, of any period from 6th January 1964 to 5th April 1975.

8.  Where–

(a) a period of employment of a retired teacher which was participating employment or in respect of which a payment in lieu of contributions had been made is treated as reckonable service by virtue of receipt of a transfer value from his former pension scheme; and

(b) the Secretary of State is informed of the amount by which the pension of a retired teacher under his former pension scheme would have been reduced in respect of that period by reason of graduated retirement benefit payable under the Act or of the method of calculating such reduction,

• the retirement pension in respect of that period shall be reduced by that amount or by an amount calculated in accordance with that method, as the case may be, and no reduction shall be made under paragraph 6 or 7 in respect of that period.

9.  No reduction in the amount of the retirement pension shall be made under paragraph 6 or 7 in respect of any period which is reckonable service by virtue of regulation D3 or D4 or of regulations under section 1 of the Superannuation (Miscellaneous Provisions) Act 1948 (employment in national service).

Equivalent pension benefits

10.  A retirement pension payable to a teacher shall, so far as attributable to any teaching service which is non-participating employment (exclusive of any period of such employment in respect of which a payment in lieu has been made under the Act), be not less than the amount required to constitute the benefits in respect of that service equivalent pension benefits for the purposes of that Act.

11.  Any teacher who was employed in non-participating employment and attains state pensionable age shall be paid by way of equivalent pension benefits a sum equal to the actuarial value of a retirement pension at the following rate for each year of reckonable service–

	Man	Woman
during the period from 3rd April 1961 to 5th January 1964	£2.31	£1.92
during the period from 6th January 1964 to 5th April 1975	£3.48	£2.90

but excluding any period of such employment in respect of which–

(a) a payment in lieu of contributions has been made, or

(b) any retiring allowances are payable under regulation E5.

APPENDIX

TABLE

	Yearly reduction of pension for each completed year of reckonable service after date of modification
Age at date of modification	Men	Women
(1)	(2)	(3)
	£	£
20 or under	1.70	1.70
21	1.65	1.60
22	1.60	1.53
23	1.55	1.45
24	1.50	1.37
25	1.47	1.30		26	1.45	1.23
27	1.43	1.17
28	1.40	1.13
29	1.35	1.07
30	1.33	1.03
31	1.30	0.97
32	1.27	0.95
33	1.25	0.93
34	1.23	0.90
35	1.20	0.87
36	1.17	0.85		37	1.15	0.83
38	1.13	0.80
39	1.10	0.77
40	1.07	0.75
41	1.07	0.73
42	1.05	0.73
43	1.03	0.70
44	1.00	0.70
45	0.97	0.67
46	0.95	0.65
47	0.95	0.65
48	0.93	0.63
49	0.93	0.63
50 and over	0.93	0.60

PART II EMPLOYMENT AT REDUCED SALARY

12.  Subject to paragraphs 13 to 17, these Regulations apply as if the teacher had been one person in relation to pensionable employment (“the earlier employment”) up to the end of his employment at the previous rate and a separate person in relation to pensionable employment (“new employment”) from the start of his employment at the reduced rate, and accordingly apply separately in relation to each of those employments.

13.  For the purposes of regulation E4 (qualification for retiring allowances), periods counting towards a qualifying period in relation to one of the employments shall count also in relation to the other.

14.—(1) For the purposes of regulation E30(2) (limits on reckonable service for calculating benefits), periods counting as reckonable service in relation to one of the employments shall count also in relation to the other.

(2) Any period excluded by regulation E30(2) shall be excluded in relation to new employment only.

15.—(1) A period for which the person has, before the first day of new employment, elected to pay additional contributions under regulation C3 shall not count as reckonable service in relation to new employment but shall, subject to sub-paragraph (2), count in relation to the earlier employment.

(2) An election to pay such contributions by Method A or C which was made less than 12 months before the first day of new employment ceases to have effect on that day, and any contributions paid in pursuance of it are to be refunded.

(3) If an election to pay such contributions is made on or after the first day of new employment–

(a) the period to which it relates shall count as reckonable service in relation to new employment but shall not count in relation to the earlier employment; and

(b) if the contributions are to be paid by Method B, paragraph 10 of Schedule 4 (calculation of lump sum where salary reduced) does not apply.

16.—(1) This paragraph applies if the teacher becomes entitled to payment of retiring allowances by virtue of regulation E5(1)(e) (incapacity).

(2) For the purposes of regulation E9 (enhancement), the appropriate period shall be calculated by reference to the aggregate of the period counting as reckonable service in relation to the earlier employment and the period so counting in relation to new employment, and–

(a) if he becomes entitled to payment of the benefits within 3 years after the start of new employment, the period counting as reckonable service in relation to the earlier employment; or

(b) in any other case, the period so counting in relation to new employment,

• shall be increased by the appropriate period so calculated.

17.—(1) For the purpose of calculating any death gratuity under regulation E19 or deficiency grant under regulation E20 that may become payable in respect of the teacher–

(a) the pensionable salary mentioned in regulations E19(2) and E20(2)–

(i) if the gratuity or grant becomes payable within 3 years after the start of new employment, shall be the pensionable salary in respect of the earlier employment; and

(ii) in any other case, shall be the pensionable salary in respect of new employment;

(b) the retirement lump sum mentioned in regulation E19(2) shall be the aggregate of the lump sums that would have become payable as there mentioned in respect of each of the employments, enhanced in accordance with paragraph 16; and

(c) the retirement pension mentioned in E20(3) shall be the aggregate of the retirement pensions paid in respect of each of the employments.

(2) Only one of either kind of gratuity shall be paid.

PART III POLICY SCHEMES

18.  In this Part “excluded service” means the employment in respect of which the insurance policies were fully maintained as is mentioned in regulation 6A of the 1977 Regulations(2).

19.  For the purposes of regulation C3(1) (case in which additional contributions may be paid to purchase past added years), if the teacher’s excluded service began before he first became employed in pensionable employment he is to be treated as having first become so employed when his excluded service began.

20.  For the purposes of regulation E4 (qualification for retiring allowances), paragraph 1 of Schedule 8 has effect as if his excluded service had been pensionable employment beginning after 5th April 1988.

PART IV SPECIFIED COUNTRY SERVICE

21.  Regulations E5 (entitlement to payment of retiring allowances), E7 (amount of retirement lump sum), E14(3) (pension becoming payable again after cessation on ceasing to be incapacitated) and E16 (retiring allowances on cessation of further employment) have effect with the substitution for references (whether direct or not) to the age of 60 of references to the age obtained by deducting from 60 years a period of 3 months in respect of each complete year of up to 20 years of specified country service.

(1)

1965 c. 51.

(2)

Regulation 6A was inserted by S.I. 1977/1808.