The Teachers' Superannuation (Scotland) Amendment Regulations 1998

Salary on which contributions are payable – election

4.  After regulation C1 there shall be inserted the following regulation:–

“Salary on which contributions are payable – election

C1A.— (1) A teacher who–

(a) continues in pensionable employment but whose contributable salary is reduced, otherwise than by reason of sick leave or maternity leave, and who satisfies the conditions in paragraph (2); or

(b) leaves pensionable employment with one employer (“employer A”) and–

(i) takes up employment again with employer A, or

(ii) takes up employment with another employer (“employer B”)

at a lower contributable salary and who satisfies the conditions in paragraph (3),

may make an election that his salary is to be treated as having continued at the rate specified in paragraph (4).

(2) The conditions referred to in paragraph (1)(a) are–

(a) that on the date when the contributable salary was reduced the teacher had attained the age of 50;

(b) that on that date he had been in pensionable employment or excluded employment for at least five years; and

(c) that the responsibility of his post after the reduction in contributable salary is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date of the reduction in contributable salary.

(3) The conditions referred to in paragraph (1)(b) are–

(a) that on the date of leaving pensionable employment with employer A the teacher had attained the age of 50;

(b) that on that date he had been in pensionable employment or excluded employment for at least five years;

(c) that the responsibility of his new post with employer A or, as the case may be, his post with employer B is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date on which he left employment with employer A as described in paragraph (1);

(d) that employer A notifies the Secretary of State that the teacher has provided satisfactory service during the period of five years referred to in sub-paragraph (c) or, where he has been employed by employer A for less than five years, during the period when he was employed by employer A; and

(e) that no more than one year had elapsed between leaving pensionable employment with employer A as described in paragraph (1) and taking up pensionable employment again with employer A or, as the case may be, taking up pensionable employment with employer B.

(4) The rate of salary referred to in paragraph (1) is–

(a) where the teacher falls within paragraph (1)(a) and is employed in full-time service after the reduction in contributable salary, the rate applicable immediately before the reduction;

(b) where the teacher falls within paragraph (1)(b) and is re-employed in full-time service with employer A, or is employed in full-time service with employer B, the rate applicable immediately before he left employment with employer A as described in paragraph (1);

(c) where the teacher falls within paragraph (1)(a) and is employed in part-time service after the reduction in contributable salary, the rate which would have been applicable immediately before the reduction if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed immediately after the reduction; and

(d) where the teacher falls within paragraph (1)(b) and is employed in part-time service at the start of his re-employment with employer A or his employment with employer B, the rate which would have been applicable immediately he left his employment with employer A as described in paragraph (1) if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed at the start of his re-employment with employer A or, as the case may be, his employment with employer B,

increased, in each case, on each increase day by

where–

• RI is the retail prices index for the month in which the increase day occurs; and

• RE is the retail prices index for the month in which the election was made.

(5) For the purposes of paragraph (4) the increase day is the first day of the month in each year following the month in which–

(a) the salary was reduced, in a case where the teacher falls within paragraph (1)(a), or

(b) the teacher left his employment with employer A as described in paragraph (1) in a case where the teacher falls within paragraph (1)(b),

and the first increase day is that falling in the year after the year in which the salary was reduced or the teacher left his employment with employer A, as the case may be.

(6) An election for the purposes of paragraph (1)–

(a) must be made by giving written notice to the Secretary of State before the date which is three months after–

(i) the reduction in salary, in a case where the teacher falls within paragraph (1)(a); or

(ii) taking up employment again with employer A or, as the case may be, taking up employment with employer B, in a case where the teacher falls within paragraph (1)(b);

or before 15th July 1998, whichever date is later;

(b) has effect from–

(i) the day after the last day on which the teacher’s salary was payable at the rate applicable immediately before the reduction in contributable salary, in a case where the teacher falls within paragraph (1)(a); or

(ii) the day on which the teacher takes up employment again with employer A or, as the case may be, takes up employment with employer B, in a case where the teacher falls within paragraph (1)(b); and

(c) subject to paragraph (7), continues to have effect until the teacher ceases to be in pensionable employment unless he–

(i) elects to pay additional contributions under regulations C8 or C8A; or

(ii) takes up pensionable employment with another employer (“employer C”) within six months of ceasing to be in pensionable employment.

(7) An election for the purposes of paragraph (1) may be cancelled by giving written notice to the Secretary of State at any time.

(8) Notice of cancellation–

(a) has effect from the first day of the month following that in which it was received; and

(b) is irrevocable.

(9) If, while an election made for the purposes of paragraph (1) has effect, there is any further reduction in salary during a period of sick leave or maternity leave, the rate of salary specified in paragraph (4) is, during that period, to be treated as having been reduced in the same proportion as the actual rate.

(10) In paragraphs (1)(a) and (1)(b) the reference to contributable salary is, in the case of a teacher employed in part-time service, a reference to the salary which would have been the teacher’s contributable salary if the teacher had been in full-time service.

(11) In this regulation “the retail prices index” means the index of retail prices published by the Office for National Statistics.”.