The Teachers’ Superannuation (Amendment) Regulations 1997

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Teachers’ Superannuation (Amendment) Regulations 1997 and shall come into force on 1st April 1997 but regulation 17 and Schedule 2 (NHS transferees) shall have effect from 1st April 1991.

(2) In these Regulations “the principal Regulations” means the Teachers’ Superannuation (Consolidation) Regulations 1988(1).

Amendment of Principal Regulations

2.  The principal Regulations shall be amended in accordance with the following provisions of these Regulations.

Exclusion from pensionable employment

3.  In regulation B5 (exclusion from pensionable employment) there shall be added at the end a new paragraph—

“(6) A person is not in pensionable employment in respect of any employment which commenced on or after 1st April 1997 while he is entitled to be paid a teacher’s pension, including cases where the annual rate of the pension has been reduced to zero in accordance with regulation E14 (abatement of retirement pension during further employment).”.

Age and ill health retirement

4.—(1) In regulation E4(2)(c) (Case A: age retirement) for “or D” there shall be substituted “, D, E or F”.

(2) For regulation E4(6) (Case E: ill health retirement) there shall be substituted the following paragraph—

“(6) In case E the person—

(a) has ceased after 31st March 1972 and before attaining the age of 60 to be in pensionable employment,

(b) is incapacitated and became so before attaining the age of 60, and

(c) is not within Case F,

and, in cases where the pensionable employment ceased on or after 1st April 1997 the Secretary of State has notified him in writing that he has not exercised, or is not considering the exercise of, his powers under regulation 10(2) or (10) of the Education (Teachers) Regulations 1993(2) to direct on grounds of that person’s misconduct that he be not appointed to or employed in relevant employment as defined in regulation 7 of those Regulations.”.

Date on which entitlement under Case E takes effect

5.  In regulation E4(9)(3) for sub-paragraph (b)(i) there shall be substituted—

“(i) as soon as the person falls within the Case or as soon as the person would have fallen within the Case had there not been a requirement that the Secretary of State notify that person that he has not exercised, or is not considering the exercise of, his powers of direction under regulation 10(2) or (10) of the Education (Teachers) Regulations 1993, or”.

Early retirement generally

6.—(1) For regulation E4(7) there shall be substituted the following paragraph—

“(7) In Case F the person—

(a) has attained the age of 50,

(b) has ceased after attaining that age but before attaining the age of 60 to be—

(i) in pensionable employment;

(ii) in excluded employment; or

(iii) in employment which would be pensionable employment but for the fact that the person has not made an election under regulation B1(4),

(c) is not within Case E, and

(d) has not received and is not to receive compensation under Part III of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997(4) (discretionary compensation for termination), and his employer has notified the Secretary of State in writing—

(i) that his employment was terminated by reason of his redundancy or in the interests of the efficient discharge of the employer’s functions; and

(ii) that the employer has agreed that he should become entitled to retirement benefits under this Case.”.

(2) In regulation E4(7A)(5) for “regulation 4(5) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1989” there shall be substituted “regulation 4(8) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997(6)”.

Actuarial reduction of pension on early retirement

7.  In regulation E5 (amount of retirement pension)—

(a) in paragraph (1) for “(4)” there shall be substituted “(5)”;

(b) at the end of the definition of “B” in paragraph (3) there shall be added “and, where applicable, paragraph (5)”; and

(c) there shall be added at the end new paragraphs as follows—

“(5) Where this paragraph applies the annual rate of a person’s retirement pension shall be the annual rate calculated in accordance with the foregoing provisions of this regulation of the retirement pension to which he would be entitled apart from this paragraph and ignoring the effect of regulation E10 (national insurance modification of pensions) multiplied by the appropriate factor.

(6) (a) Subject to sub-paragraphs (b) and (c), paragraph (5) applies in Case F, as described in regulation E4(7), where a person has ceased to be in employment as there described on or after 1st September 1997.

(b) Paragraph (5) shall not apply where notice to terminate the person’s employment was given or his resignation was tendered on or before 22nd October 1996(7).

(c) Paragraph (5) shall not apply so as to reduce the annual equivalent of a person’s guaranteed minimum pension together with that of any equivalent pension benefits where that is the annual rate of his retirement pension in accordance with paragraph (3).

(7) For the avoidance of doubt, in regulations E7 to E9 references to “retirement benefits” and “retirement pension” are references to such benefits as calculated before any actuarial reduction required by paragraph (5).”.

Actuarial reduction of lump sum on early retirement

8.  In regulation E6 (amount of retirement lump sum)—

(a) in paragraph (1) for “paragraph (2)” there shall be substituted “paragraphs (2) and (3)”; and

(b) there shall be added at the end new paragraphs as follows—

“(3) Where this paragraph applies the amount of a person’s retirement lump sum shall be the amount calculated in accordance with the foregoing provisions of this regulation of the lump sum to which he would be entitled apart from this paragraph multiplied by the appropriate factor.

(4) (a) Subject to sub-paragraph (b), paragraph (3) applies in Case F, as described in regulation E4(7), where a person has ceased to be in employment as there described on or after 1st September 1997.

(b) Paragraph (3) shall not apply where notice to terminate the person’s employment was given or his resignation was tendered on or before 22nd October 1996(8).

(5) For the avoidance of doubt, in regulations E7 and E8 references to “retirement benefits” and “retirement lump sum” are references to such benefits as calculated before any actuarial reduction required by paragraph (3).”.

Duplicate pensions

9.  In regulation E9(2) (avoidance of duplicate pensions) there shall be added at the end “or where the other pension is payable under regulation 7 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997”.

National Insurance modification of pensions

10.  In regulation E10 there shall be added at the end “including retirement pensions that have been actuarially reduced under regulation E5(5)”.

Actuarial reduction of abatement

11.  In regulation E14 (abatement of retirement pension during further employment)—

(a) in paragraph 1(a) there shall be inserted after “70” the words “or but for regulation B5(6)”;

(b) in paragraph (3)(b) there shall be inserted after “case” the words “and subject to paragraph (4)”;

(c) in paragraph (3) in the definition of “B” after “pension” there shall be inserted “disregarding any actuarial reduction required by regulation E5(5) (actuarial reduction of pension on early retirement)”; and

(d) there shall be added at the end(9) the following paragraph—

“(4) Where regulation E5(5) applies (actuarial reduction of pension on early retirement) the amount (if any) by which the annual rate of the pension is to be reduced under paragraph (3)(b) shall be the amount (if any) referred to in that sub-paragraph multiplied by the appropriate factor.”.

Actuarial reduction of retirement benefits on cessation of further employment

12.  In regulation E15 (retirement benefits on cessation of further employment) at the end there shall be added the following paragraph—

“(9) Where a person ceases to be in further employment on or after 1st September 1997 and qualifies for retirement benefits under Case F as described in regulation E4(7)—

(a) regulation E5(5) shall also apply to that person and to his retirement pension under paragraph (2)(b) or 3(b) or his additional retirement pension under paragraph (4); and

(b) regulation E6(3) shall also apply to that person and to his retirement lump sum under paragraph (2)(b) or 3(b) or his additional retirement lump sum under paragraph (4).”.

Increase in death grant

13.  In regulation E19(2)(b) (death grant) there shall be added at the end “or, in the case of a death occurring on or after 1st April 1998, twice his average salary”.

Actuarial reduction of supplementary death grant

14.  In regulation E20 (supplementary death grant)—

(a) in paragraphs (2) and (3) before the word “a” there shall be inserted the words “subject to paragraph (4A)”;

(b) in paragraph (4)—

(i) in sub-paragraph (a) after “under” there shall be inserted “regulation E5(5) (actuarial reduction of pension on early retirement),”, and

(ii) in sub-paragraph (b) after “Regulations” there shall be added “(including any actuarial reduction under regulation E6(3) (actuarial reduction of lump sum on early retirement))”; and

(c) there shall be added after paragraph (4) a new paragraph—

“(4A) Where regulation E5(5) applies a supplementary death grant may be paid equal only to the deficiency referred to in paragraph (2) or (3), as the case may be, multiplied by the appropriate factor.”.

Actuarial reduction of short-term family benefits

15.  In regulation E24 (amount and duration of short-term family benefits)—

(a) in paragraph (1) for “paragraph (2)” there shall be substituted “paragraphs (2) and (4)”;

(b) in paragraph (3)(10) “Subject to paragraph (4)” shall be omitted; and

(c) there shall be added at the end(11) the following paragraph—

“(4) Where regulation E5(5) applies (actuarial reduction of pension on early retirement) the annual rate of a short-term pension payable under regulation E23 shall be the annual rate calculated in accordance with paragraph (1) or (2) multiplied by the appropriate factor.”.

Scheme finance

16.  For Part G there shall be substituted the Part G set out in Schedule 1 to these Regulations.

Modified application in respect of certain NHS transferees

17.—(1) There shall be added at the end of regulation H2 the following paragraph—

“(5) In relation to certain persons who were formerly members of the National Health Service Pension Scheme these Regulations have effect with the modifications set out in Part VII of Schedule 10.”.

(2) There shall be inserted at the end of Schedule 10 the new Part set out in Schedule 2 to these Regulations.

New definitions

18.—(1) In Schedule 1 (glossary of expressions)—

(a) after the entry relating to the expression “Admitted service” there shall be inserted the following entry—

““The Appropriate factor”

The factor being— (a) in relation to a retirement pension and to the retirement benefits referred to in regulations E20 and E24, the factor set out in Table I in Schedule 9A or, in the case of a person to whom paragraph 40 of Part VII of Schedule 10 applies (certain nurses, physiotherapists, midwives, health visitors and mental health officers), set out in Table III in that Schedule, and (b) in relation to a retirement lump sum, the factor set out in Table II in Schedule 9A or, in the case of a person to whom paragraph 40 of Part VII of Schedule 10 applies (certain nurses, physiotherapists, midwives, health visitors and mental health officers), set out in Table IV in that Schedule, corresponding to the age of that person in complete years and months when he became entitled to payment of that retirement pension and retirement lump sum.”; and

(b) for paragraph (a) of the definition of “incapacitated” there shall be substituted the following—

“(a) in the case of a teacher, an organiser or a supervisor, while he is unfit by reason of illness or injury and despite appropriate medical treatment to serve as such and is likely permanently to be so, and”.

(c) after the entry relating to the expression “Member” there shall be inserted the following entry—

““The Amending Regulations”

The Teachers’ Superannuation (Amendment) Regulations 1997.”.

(2) The amendment to the definition of “incapacitated” shall not apply for the purpose of determining whether a person has become incapacitated where the written application for payment of benefit in accordance with regulation E31(2) of the principal Regulations has been received by the Secretary of State before 1st April 1997.

Actuarial tables for early retirement

19.  There shall be inserted after Schedule 9 the Schedule set out in Schedule 3 to these Regulations.

Actuarial reduction of admitted service benefits

20.  Part IV of Schedule 10 (admitted service) shall be amended by the insertion of a new paragraph as follows—

“29A.— (1) Where regulation E5(5) applies to a person who is also entitled to an annual pension in respect of admitted service then the rate of that annual pension is the rate calculated in accordance with paragraph 29(1) multiplied by the factor set out in Table I in Schedule 9A corresponding to the age of that person in complete years and months when he became entitled to payment of that pension.

(2) Where regulation E6(3) applies to a person who is also entitled to a lump sum in respect of admitted service then the amount of the lump sum is the amount calculated in accordance with paragraph 29(2) multiplied by the factor set out in Table II in Schedule 9A corresponding to the age of that person in complete years and months when he became entitled to payment of that lump sum.”.

Part of retirement pension that may be allocated

21.  In Schedule 11 (allocation of part of retirement pension)—

(a) in paragraph 1(2)(a) after “disregarding” there shall be inserted “any actuarial reduction required by regulation E5(5) (actuarial reduction of pension on early retirement) and”;

(b) in paragraph 5(1) after sub-sub-paragraph (a) there shall be inserted—

“(aa) if paragraph (5) of regulation E5 (actuarial reduction of pension on early retirement) applies, the amount or estimated amount of the retirement pension to which he would be entitled if that paragraph did not apply”; and

(c) in paragraph 9(1) after “retirement pension” there shall be inserted “disregarding any actuarial reduction required by regulation E5(5) (actuarial reduction of pension on early retirement)”.

Form of account

22.—(1) Part I of Schedule 13 shall be revoked.

(2) For Part II of Schedule 13 there shall be substituted the Part II set out in Schedule 4 to these Regulations.

(3) The revocation and substitution referred to in paragraphs (1) and (2) are subject to the savings set out in regulation G1 of the principal Regulations as substituted by these Regulations.

Elections in respect of protected benefits

23.—(1) This regulation applies to a person—

(a) to whom a protected benefit is being paid or may become payable, and

(b) who is placed in a worse position that he would have been in if a provision made by these Regulations (“the relevant provision”) had not applied in relation to the protected benefit.

(2) A protected benefit is one which is being paid or may become payable, under the principal Regulations, to or in respect of a person who was employed in pensionable employment but ceased to be employed, or died, before 1st April 1997.

(3) A person to whom this regulation applies may, by giving written notice to the Secretary of State before 1st August 1997, elect that the relevant provision shall not apply in relation to the protected benefit.

(4) If an election under paragraph (3) is made in relation to a benefit of a person who is in pensionable employment or who subsequently becomes re-employed in pensionable employment—

(a) the election shall have effect in relation to the benefit only to the extent that it accrues or has accrued by virtue—

(i) of periods of reckonable service before the cessation referred to in paragraph (2) (or, if there had been more than one cessation, the last of them before 1st April 1997); or

(ii) of contributions paid in respect of such periods of reckonable service; and

(b) in determining entitlement to, or to the amount of, the benefit to that extent he shall be treated as if he had never re-entered pensionable employment again at any time after the cessation referred to in paragraph (2) (but without prejudice to the application of this paragraph),

and the principal Regulations shall apply accordingly.

Gilliant Shephard

Secretary of State for Education and Employment

18th February 1997

We consent,

Patrick McLoughlin

Roger Knapman

Two of the Lords Commissioners of Her Majesty’s Treasury

19th February 1997