The Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996

Regulation 2(3)

SCHEDULE 1 employing authorities

1.—(a) In relation to any time before 1st April 1996, a regional council or an islands council or a district council;

(b) a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994(1).

2.  The board of management of a self-governing school within the meaning of section 1(3) of the Self-Governing Schools etc. (Scotland) Act 1989.

3.  The managers of a grant-aided school (as defined in section 135(1) of the Education (Scotland) Act 1980) which immediately before the commencement of Part III of the Social Work (Scotland) Act 1968 was a school approved under section 83 of the Children and Young Persons (Scotland) Act 1937(2) and which did not cease to be so approved prior to 1st April 1986(3), if the pensionable employee was employed by those managers on 31st March 1986.

4.  Jordanhill School Ltd, Glasgow, being the company limited by guarantee and incorporated under the Companies Act 1985(4) which manages Jordanhill School, Glasgow.

5.  The board of management of a college of further education which is managed by such a board in terms of Part I of the Further and Higher Education (Scotland) Act 1992.

6.  The governing body of a designated institution within the meaning of section 44(2) of the Further and Higher Education (Scotland) Act 1992.

7.  The University of Strathclyde and the University of Dundee.

8.  The Scottish Further Education Unit, being the company limited by guarantee and incorporated under the Companies Act 1985 which manages the educational establishment of that name.

SCHEDULE 2 other entitlement

Regulations 4(1)(b) and 14(2)

PART I RESIDUAL ENTITLEMENT

1.  Where a designated teacher has been credited with a period of extra service in respect of the cessation of an employment before the material date, he shall, for the purposes of regulation 4(1)(b), have to his credit a period of residual entitlement, which shall be calculated in accordance with paragraph 3.

2.  Where a designated teacher ceases to hold a new employment, he shall, for the purposes of regulation 14(2), have to his credit a period of residual entitlement, which shall be calculated in accordance with paragraph 4.

3.  For the purposes of regulation 4(1)(b), a designated teacher’s period of residual entitlement shall, subject as mentioned in paragraph 5(d), be

where–

• A is the period of extra service credited to him, reduced as necessary in accordance with paragraph 5(e);

• B is the period of his former employment;

• C is the aggregate of any periods falling between the first cessation of employment that gave rise to A and the commencement of the former employment during which he was in pensionable employment or in employment which would have been pensionable employment but for an election under regulation B6 of the Superannuation Regulations; and

• D is the period beginning with the date immediately following the first cessation of employment which gave rise to A and ending on the material date.

4.  For the purposes of regulation 14(2), a designated teacher’s period of residual entitlement shall be the aggregate of–

(a) any period of extra service granted to him, reduced as may be necessary in accordance with paragraph 5(e); and

(b) the period of additional service credited under regulation 4, reduced as may be necessary in accordance with paragraph 5(f).

5.  In this Part–

(a) “first cessation”, in relation to a designated teacher, means–

(i) if a period of extra service has been granted to him in respect of one cessation of employment, that cessation; or

(ii) if a period of extra service has been granted to him in respect of more than one such cessation, the first of those cessations;

(b) “period of extra service”, in relation to a designated teacher, means a period by which his service has been increased or the period of service with which he has been credited, before the material date, for the purpose of calculating–

(i) retirement compensation under regulations made under section 219 of the Local Government (Scotland) Act 1973, or a similar instrument, on account of loss of employment; or

(ii) benefit under regulations made under section 220 of the Local Government (Scotland) Act 1973(5), or a similar instrument; or

(iii) compensation under any scheme made under section 1 of the 1972 Act, or a similar instrument, on account of his retirement in the public interest; or

(iv) compensation under these Regulations or any other regulations made under section 24 of the 1972 Act, or a similar instrument, on account of his ceasing to hold an employment with an authority by reason of redundancy or in the interests of the efficient exercise of the functions of that authority,

or, if more than one period of extra service has been credited to him, the aggregate of those periods;

(c) “similar instrument” means any instrument made under any provision to the like effect in any other enactment (whenever enacted);

(d) in a case where period D described in paragraph 3 exceeds the aggregate of periods A, B and C described in that paragraph, no account shall be taken of the excess;

(e) where a person, after his first cessation, has ceased to hold an employment and his–

(i) period of extra service has been reduced by; or

(ii) compensation or benefit, attributable to a period of service, has been reduced on account of,

the period of that employment or a part thereof (in this sub-paragraph referred to as “that period”), period A described in paragraph 3 or, as the case may be, his period of extra service for the purposes of paragraph 4(a) shall be reduced by that period; and

(f) where a designated teacher’s annual compensation has been reduced in accordance with regulation 14 on account of a period of previous new employment or a part thereof (in this sub-paragraph referred to as “that period”), the period of his additional service shall, for the purposes of paragraph 4(b), be reduced by that period; and in this sub-paragraph “annual compensation” has the meaning given in regulation 14(4)(a), and “previous new employment” has the meaning given in regulation 14(4)(c).

Regulation 5(2) and (3)

PART II PREVIOUS ENTITLEMENT

6.  Where a designated teacher has become entitled to receive a lump sum, or an allowance for life or other period, under an enactment (whenever enacted) or under a contract or arrangement with his employer as compensation for loss of an employment, or his retirement or removal from an employment, which loss, retirement or removal occurred before the material date and that lump sum or allowance–

(a) is not compensation or benefit described in paragraph 5(b), or an excepted payment in relation to that employment; and

(b) was calculated by reference to a period of service which the employing authority has taken into account for the purpose of granting him additional service,

he shall be treated as previously entitled to the lump sum or allowance for the purposes of regulation 5.

7.  The amount of the lump sum or allowance to which a designated teacher is previously entitled shall be ascertained in the following manner:–

(a) for the purposes of regulation 5(2), the amount is an amount equal to–

and

(b) for the purposes of regulation 5(3), the amount is an amount equal to–

where–

• A is the amount of the lump sum first referred to in paragraph 6;

• B is the annual rate of the allowance which is payable in respect of a period beginning after the material date;

• C is the period of service referred to in paragraph 6(b), expressed in years and fractions of a year; and

• D is the period of service which the employer took into account for the purpose of granting him the lump sum or allowance first referred to in paragraph 6, expressed in years and fractions of a year.

Regulation 11

SCHEDULE 3 adjustment on account of redundancy payments

1.  The compensation of a designated teacher to whom regulation 11 applies shall be reduced as follows:–

(a) where his lump sum compensation–

(i) exceeds the amount ascertained under paragraph 2, it shall be reduced by that amount; or

(ii) is equal to the amount ascertained under that paragraph, it shall not be payable; or

(iii) is exceeded by the amount ascertained under that paragraph, it shall not be payable, and his annual compensation shall be reduced in accordance with sub-paragraph (b); and

(b) his annual compensation shall be reduced by an amount the capital value whereof is equal to–

(i) the outstanding balance (if any); or

(ii) where he is, apart from the provisions of sub-paragraph (a), not entitled to receive lump sum compensation, the amount ascertained under paragraph 2,

such reduction to be calculated in accordance with paragraph 3.

2.  The amount ascertained under this paragraph is equal to–

where–

• E is the period of the designated teacher’s additional service, expressed in years and fractions of a year, which is in excess of 6⅔ years;

• R is the amount of the redundancy payment referred to in regulation 11(b); and

• Y is any amount by which the payment is reduced in accordance with the Redundancy Payments Pensions Regulations 1965(6).

3.  The amount by which the annual compensation payable to a designated teacher is to be reduced in the circumstances described in paragraph 1(b) shall be calculated in accordance with the following table:–

TABLE

Age last birthday	Reduction of annual compensation per £100 of the outstanding balance or of the amount ascertained under paragraph 2
	Male £	Female £
50	5.93	5.43
51	6.00	5.47
52	6.08	5.53
53	6.18	5.61
54	6.30	5.72
55	6.44	5.84
56	6.59	5.97
57	6.75	6.11
58	6.92	6.25
59	7.10	6.39
60	7.29	6.54
61	7.50	6.70
62	7.73	6.87
63	7.97	7.05
64	8.22	7.24

4.  In this Schedule–

(a) “annual compensation” means the annual compensation payable to a designated teacher under regulation 5;

(b) “lump sum compensation” means the lump sum compensation payable to him under regulation 5; and

(c) “outstanding balance” means the amount of the excess described in paragraph 1(a)(iii).

SCHEDULE 4 adjustment on account of new employment

Regulation 13

PART I REDUCTION OF ANNUAL COMPENSATION DURING NEW EMPLOYMENT

1.  The rate of annual compensation payable to a designated teacher shall, whilst he holds new employment, be so reduced or suspended (if necessary) as to ensure that his earnings together with his annual pension and his annual compensation (including any increase under Part I of the 1971 Act) shall not exceed his salary of reference.

2.  For the purposes of this Part of this Schedule–

(a) the rate of earnings at the commencement of the period of new employment shall be deemed to remain constant throughout the period of employment, provided that where there is a change of grade, or any other change in the conditions or terms of the employment which in the opinion of the employing authority constitutes a variation in the employment, the rate of earnings shall be taken to be that payable on the commencement of such change; and

(b) the salary of reference of a designated teacher shall be the highest salary rate received during the last three years of pensionable employment or comparable British service, whether continuous or not, before his annual compensation became payable to him, provided that–

(i) if during that period the designated teacher has paid superannuation contributions on a previous higher salary under previous provisions and that salary is more favourable, it shall be the salary of reference;

(ii) the salary of reference shall be reduced by the amount of any part of the annual pension which the designated teacher has allocated under regulation E12 of the Superannuation Regulations or previous provisions or under any corresponding provisions applicable to teachers in comparable British service and by the amount of any part of the annual compensation which he has allocated under regulation 6;

(iii) the salary of reference so reduced by the amount (if any) specified in head (ii) above shall be increased by the amount (if any) which would have been due to the designated teacher under Part I of the 1971 Act if the salary of reference before being so reduced had been an annual pension coming into payment on the date following his last day of reckonable or comparable British service; and

(c) “annual pension” includes any annual pension that would be payable to a designated teacher but for any transfer of benefits to another pension scheme.

Regulation 14(2)

PART II REDUCTION OF ANNUAL COMPENSATION ON CESSATION OF NEW EMPLOYMENT

3.  The annual compensation of a designated teacher to whom regulation 14 applies shall be reduced as described in this Part of this Schedule.

4.  The annual compensation shall be reduced by–

where–

• A is the shortest of C, D or E; and

• B is the smaller of his pensionable salary and the amount specified in paragraph 6.

5.  For the purposes of paragraph 4–

• C is the additional period of service with which he is credited under regulation 4,

• D is, in relation to his new employment, the period he is entitled, or would be entitled if it had been reckonable service (excluded employment), to count as reckonable service; and

• E is the period of excess calculated in accordance with regulation 14(2).

6.  The amount is–

where–

• F is the pensionable salary in his new employment; and

• G is the amount by which an official pension within the meaning of the 1971 Act would, by the day after the cessation of the new employment, have increased if it had begun, and first qualified for increases under that Act, on the day after the material date and had then been payable at an annual rate of £100.

7.—(1) In addition to the reduction calculated in accordance with paragraph 4, the annual compensation shall be reduced by three times the reduction under paragraph 4 and payment of instalments of annual compensation shall be suspended until the reduction required by this paragraph has been achieved.

(2) For the purposes of sub-paragraph (1), “annual compensation” means the annual compensation payable to the designated teacher after reduction under paragraph 4.

Regulation 20(1)

SCHEDULE 5 REVOCATIONS

(1)	(2)	(3)
Regulations revoked	References	Extent of revocation
The Teachers' (Compensation for Premature Retirement) (Scotland) Regulations 1980	S.I. 1980/1254	The whole Regulations
The Teachers' (Compensation for Premature Retirement) (Scotland) Amendment Regulations 1982	S.I. 1982/918	The whole Regulations
The Teachers' (Compensation for Redundancy and Premature Retirement) (Scotland) Regulations 1984	S.I. 1984/845	The whole Regulations
The Teachers (Compensation for Premature Retirement) (Scotland) Amendment Regulations 1986	S.I. 1986/412	The whole Regulations
The Teachers' (Superannuation and Compensation for Premature Retirement) (Scotland) Amendment Regulations 1993	S.I. 1993/2513	Regulations 18 to 21

(1)

1994 c. 39.

(2)

1937 c. 37; section 83 was repealed by Part I of Schedule 9 to the Social Work (Scotland) Act 1968 (c. 49).

(3)

1st April 1986 was the date of the Secretary of State’s direction in terms of paragraph 2(1) of Schedule 7 to the Social Work (Scotland) Act 1968.

(4)

1985 c. 6.

(5)

1973 c. 65; section 220 was repealed by the Local Government and Planning (Scotland) Act 1982 (c. 43), Schedule 4, Part I.

(6)

S.I. 1965/1932.