The Teachers’ Superannuation (Amendment) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations make further amendments to the Teachers’ Superannuation (Consolidation) Regulations 1988 (“the principal Regulations”).

Regulation 3 provides that a person’s employment which commences on or after 1st April 1997 cannot be pensionable employment while he is entitled to be paid a teacher’s pension.

Regulation 4 substitutes a new regulation E4(6) and adds an additional requirement for entitlement to ill-health retirement benefits. Entitlement is dependent on a written notice from the Secretary of State that the person in question has not been barred from teaching, or is not being considered for possible barring, on the grounds of misconduct.

Regulation 5 provides for the backdating of entitlement to ill-health benefits, in cases where written notification from the Secretary of State has been received, to the date that entitlement would have accrued had written notification not been required.

Regulation 6 substitutes a new regulation E4(7) which sets out the requirements for entitlement to benefits for those who are retired prematurely by their employer.

Regulations 7, 8 and 18 and Schedule 3 provide for the actuarial reduction of the retirement pension and retirement lump sum payable in respect of those who are retired prematurely by their employer. The Teachers (Compensation for Redundancy and Premature Retirement) Regulations (S.I. 1997/311) make provision for the payment of the balance.

Regulations 9, 10, 11, 12, 14, 15 and 21 make consequential provisions.

Regulation 13 provides that death grant payable in respect of deaths occurring on or after 1st April 1998 is increased to a maximum of twice average salary.

Regulation 16 and Schedule 1 substitute a new Part G in the principal Regulations. Part G provides a mechanism for the calculation of employers’ contributions to the Scheme. The old Part G in the principal Regulations will be used for preparing accounts for financial years up to and including 1995–96, for actuarial inquiries relating to the account as at 31st March 1991 and 31st March 1996 and for determining employers’ contributions following those inquiries, unless as regards the inquiry as at 31st March 1996, the calculation under the new Part G produces a lower rate. In addition the old Part G is modified so that as regards the inquiry as at 31st March 1991, the new employers’ contribution rate takes effect from 1st July 1997.

The new Part G requires scheme accounts to be prepared on a basis which includes the cost of pensions increase under the Pensions (Increase) Act 1971 and for notional investment income to be credited in line with the estimated return of large pension funds from 1996–97. To facilitate this shadow accounts are to be kept on that basis for the period 1991–92 to 1995–96.

Regulation 17 and Schedule 2 make special provision for certain transferees from the National Health Service Pension Scheme in particular as regards rights to early retirement. Such provisions have effect from 1st April 1991 pursuant to the power in section 12(1) of the Superannuation Act 1972 to frame Regulations so as to have effect from a date earlier than their making.

Regulation 18 adds new definitions to the glossary of expressions in Schedule 1 to the principal Regulations. In particular there is a new definition of “incapacitated” as regards a teacher, organiser or supervisor.

Regulation 20 provides for the actuarial reduction of retirement benefits in respect of admitted service. These are benefits in relation to service in certain schools prior to 1st May 1975.

Regulation 22 and Schedule 4 set out a new form of account to be prepared by the Secretary of State for every financial year in connection with the Teachers’ Superannuation Scheme.

Regulation 23 provides for an individual to opt out where his rights as a former employee are adversely affected by these Regulations.