57.—(1) This paragraph applies to a person (P) if—
(a)P is qualified for retirement benefits or qualified for retirement benefits following further employment,
(b)P is 55 or over and under 75, and
(c)P satisfies Condition 1 or Condition 2.
(2) Condition 1 is that—
(a)P is in pensionable or excluded employment, and
(b)there is a reduction in P’s contributable salary in that employment (“the reduced salary”) such that the annual rate of the reduced salary does not exceed 80% of the average annual rate of P’s contributable salary during the 6 months before the reduction.
(3) For the purpose of calculating the annual rate of the reduced salary, any standard increase taking effect on the day when P’s employment at the new contributable salary starts must be ignored.
(4) Condition 2 is that—
(a)after reaching the age of 55, P ceases to be in pensionable or excluded employment (“the previous employment”),
(b)within 6 months of the last day of the previous employment, P enters employment in a capacity mentioned in Schedule 2 or an employment which falls within paragraph (5) (“the new employment”), and
(c)the annual rate of P’s contributable salary in the new employment does not exceed 80% of the average annual rate of P’s contributable salary during the last 6 months of the previous employment.
(5) An employment falls within this paragraph if—
(a)P is employed by a person whose employment of P as a teacher would be employment in a capacity mentioned in Schedule 2,
(b)P’s normal duties in the employment include providing education or services ancillary to education other than administrative services, and
(c)where P is employed by a function provider, P’s duties relate to the functions or services in respect of which the function provider is accepted in accordance with regulation 14.
(6) For the purpose of calculating the annual rate of P’s contributable salary in the new employment, any standard increase taking effect after the last day of the previous employment must be ignored.
(7) A person (P) to whom paragraph (1) applies may elect to receive phased retirement benefits by giving written notice to the Secretary of State within 3 months after the relevant date.
(8) An election under paragraph (7) may not be made—
(a)on more than two occasions, or
(b)if P makes an application under regulation 107 (payment of benefits on application to Secretary of State) for retirement benefits.
(9) The relevant date is—
(a)where P satisfies Condition 1, the date on which the reduction in contributable salary takes effect, or
(b)where P satisfies Condition 2, the date on which P enters the new employment.
(10) The notice must be accompanied by—
(a)where P satisfies Condition 1, a certificate by P’s employer as to the matters mentioned in paragraph (2)(b), or
(b)where P satisfies Condition 2, a certificate by P’s employer in the new employment as to the matters mentioned in paragraph (4)(c).
(11) But if P’s employer in the previous employment does not provide P’s employer in the new employment with the information necessary to provide the certificate, the Secretary of State may determine that paragraph (10)(b) is not to apply.
(12) The notice must specify—
(a)a fraction, not exceeding 0.75, of P’s NPA 60 reckonable service, and
(b)a fraction, not exceeding 0.75, of P’s NPA 65 reckonable service.
(13) In this regulation—
(a)a reference to a person’s contributable salary includes, in the case of a person who is in employment other than pensionable employment, a reference to the salary which would be the person’s contributable salary if that employment were pensionable employment;
(b)“standard increase” means an increase in contributable salary which is applied generally to persons in the position of the employee in question in accordance with an order made under section 122 of EA 2002 or, where the employee is not a school teacher for the purposes of that section, by the employer;
(c)where—
(i)ill-health retirement benefits were payable to P under regulation E8 of TPR 1997, and
(ii)P subsequently re-enters pensionable employment
P’s reckonable service excludes any increase in reckonable service under regulation E8(2) to (6) of TPR 1997 arising from the payment of those ill health retirement benefits.
58.—(1) This regulation applies where a person (P) makes an election under regulation 57 (election to receive phased retirement benefits).
(2) A phased retirement pension is payable to P from the relevant date.
(3) Except as otherwise provided in these Regulations, the pension is payable for life.
(4) If P is a pre-2007 entrant or a person with mixed service, a phased retirement lump sum is payable to P on the relevant date.
(5) The annual rate of a phased retirement pension and the amount of any phased retirement lump sum are to be calculated in accordance with regulations 61 (annual rate of phased retirement and retirement pension) and 62 (amount of phased retirement and retirement lump sum) except as provided in the following paragraphs.
(6) P’s average salary must be calculated as if P’s average salary service ended on the date of change.
(7) Where the election under regulation 57 (election to receive phased benefits) is P’s first—
(a)a reference to P’s NPA 60 reckonable service to which a Case applies must be taken to be a reference to P’s NPA 60 reckonable service up to and including the date of change multiplied by the fraction specified in the notice of the election in accordance with regulation 57(12)(a);
(b)a reference to P’s NPA 65 reckonable service to which a Case applies must be taken to be a reference to P’s NPA 65 reckonable service up to and including the date of change multiplied by the fraction specified in the notice in accordance with regulation 57(12)(b).
(8) Where the election under regulation 57 is P’s second—
(a)a reference to P’s NPA 60 reckonable service to which a Case applies must be taken to be a reference to—
(i)P’s NPA 60 reckonable service up to and including the date of change multiplied by the fraction specified in the notice of the election in accordance with regulation 57(12)(a), less
(ii)the amount of P’s NPA 60 reckonable service calculated in accordance with paragraph (7)(a) of this regulation;
(b)a reference to P’s NPA 65 reckonable service must be taken to be a reference to—
(i)P’s NPA 65 reckonable service up to and including the date of change multiplied by the fraction specified in the notice in accordance with regulation 57(12)(b), less
(ii)the amount of P’s NPA 65 reckonable service calculated in accordance with paragraph (7)(b) of this regulation.
(9) In this regulation—
“contributable salary” is to be construed in accordance with regulation 57 (election to receive phased retirement benefits);
“date of change” in relation to an election under regulation 57 means—
where a person satisfies Condition 1 of that regulation, the day before the date on which the reduction in contributable salary takes effect, or
where a person satisfies Condition 2 of that regulation, the date on which the person ceases to be in the previous employment;
“reckonable service” excludes any increase in reckonable service under regulation E8(2) to (6) of TPR 1997 referred to in regulation 57(13)(c);
“relevant date” has the same meaning as in regulation 57(9).
59.—(1) A phased retirement pension ceases to be payable to a person (P) from the date on which, following an increase in contributable salary other than a standard increase, the annual rate of P’s contributable salary during the 12 months beginning on the relevant date exceeds 80% of—
(a)where P satisfied Condition 1 of regulation 57 (election to receive phased retirement benefits) when making the election (“the failed election”), the average annual rate of P’s contributable salary during the 6 months before the reduction mentioned in paragraph (2)(b) of that regulation, or
(b)where P satisfied Condition 2 of that regulation when making the failed election, the average annual rate of P’s contributable salary in the last 6 months of the previous employment.
(2) Where a pension ceases to be payable in accordance with paragraph (1)—
(a)the failed election is to be taken into account in determining for the purpose of regulation 57(8) (election to receive phased retirement benefits) the number of occasions on which P makes an election under that regulation;
(b)if P makes a subsequent election under regulation 57—
(i)the subsequent election is to be treated as P’s first for the purpose of regulation 57(7) (election to receive phased retirement benefits),
(ii)the notice under regulation 57(12) (election to receive phased retirement benefits) in respect of the subsequent election must specify the same or a greater fraction of P’s NPA 60 and NPA 65 reckonable service as was specified in the notice of the failed election, and
(iii)where P made an election to receive an additional pension with the failed election under regulation 73 (election to receive additional pension with phased retirement pension), P must make such an election with the subsequent election.
(3) In this regulation—
“contributable salary” is to be construed in accordance with regulation 57;
“relevant date” has the same meaning as in regulation 57(9);
“standard increase” means an increase in contributable salary which—
is applied generally to persons in the position of the employee in question in accordance with an order made under section 122 of EA 2002 or, where the employee is not a school teacher for the purposes of that section, by the employer, and
is unrelated to any change in the employee’s duties or hours of work or otherwise to the particular circumstances of the employee’s case.
60.—(1) A person (P) falls within this paragraph if P satisfies either the condition for retirement or the condition for retirement following further employment.
(2) P satisfies the condition for retirement if—
(a)P is qualified for retirement benefits, and
(b)a Case applies to P’s reckonable service or, if P is a person with mixed service, to part of P’s reckonable service.
(3) P satisfies the condition for retirement following further employment if—
(a)P is qualified for retirement benefits following further employment,
(b)a Case applies to P’s reckonable service or, if P is a person with mixed service, to part of P’s reckonable service,
(c)where P is under 75, P makes an application under regulation 107 (payment of benefits on application to Secretary of State) for benefits under this regulation, and
(d)after making the application, P does not re-enter pensionable employment before the day which would be the entitlement day if P were to satisfy the condition for retirement following further employment.
(4) A retirement pension is payable to a person (P) who falls within paragraph (1) from the entitlement day.
(5) Except as otherwise provided in these Regulations, the pension is payable for life.
(6) Where P is a pre-2007 entrant or a person with mixed service, a retirement lump sum is payable to P on the entitlement day, but this paragraph is subject to regulation 124 (general prohibition on unauthorised payments).
(7) The annual rate of the retirement pension and the amount of any retirement lump sum are to be calculated in accordance with regulations 61 (annual rate of phased retirement and retirement pension) and 62 (amount of phased retirement and retirement lump sum).
(8) The entitlement day is the entitlement day for the Case which applies to P’s reckonable service.
(9) If P is a person with mixed service and Case A applies to P’s NPA 60 reckonable service and another Case applies to P’s NPA 65 reckonable service—
(a)the entitlement day for that part of P’s retirement pension mentioned in regulation 61(5)(a), (c) and (d) (annual rate of phased retirement and retirement pension) and for P’s retirement lump sum is the entitlement day for Case A, and
(b)the entitlement day for that part of P’s retirement pension mentioned in regulation 61(5)(b) is the entitlement day for the Case which applies to P’s NPA 65 service.
(10) Schedule 7 (retirement benefits) has effect for the purpose of determining whether a Case applies to P’s reckonable service and, if so, the entitlement day for the Case.
(11) In these Regulations references to a Case followed by a letter are references to the relevant case as specified in Schedule 7.
61.—(1) This regulation applies for calculating the annual rate of phased retirement and retirement pensions.
(2) The annual rate of the pension of a person (P) is the sum of the amounts mentioned in paragraph (5).
(3) But the annual rate of a retirement pension is SB-PRP if—
(a)Case D applies to P’s reckonable service or to part of P’s reckonable service,
(b)P has a guaranteed minimum in relation to employment before 6th April 1997, and
(c)SB is greater than AR+PRP.
(4) In paragraph (3)—
AR is what the annual rate of P’s retirement pension would be apart from paragraph (3);
PRP is the annual rate of any phased retirement pensions payable to P;
SB is the sum of the annual equivalent of P’s guaranteed minimum and any equivalent pension benefits.
(5) The amounts are—
(a)1/80 x P’s average salary x P’s NPA 60 reckonable service to which a Case applies (in years and fractions of a year),
(b)1/60 x P’s average salary x P’s NPA 65 reckonable service to which a Case applies (in years and fractions of a year),
(c)where a lump sum is not paid to P because of regulation 124 (general prohibition on unauthorised payments), but where it would otherwise be payable to P, such amount representing the value of that lump sum as the Secretary of State determines after taking advice from the scheme actuary, and
(d)where the amount of a lump sum payable under regulation 62 (amount of phased retirement and retirement lump sum) (“the actual lump sum”) is less than the amount which would, apart from paragraph (3) of that regulation, be payable (“the notional lump sum”), such amount representing the value of the difference between the notional lump sum and the actual lump sum as the Secretary of State determines after taking advice from the scheme actuary.
(6) The amount calculated in accordance with paragraph (5)(a) must be multiplied by the appropriate factor for a person with NPA 60 reckonable service—
(a)where the pension is a phased retirement pension, if P is under 60 on the relevant date, and
(b)where the pension is a retirement pension, if Case D or Case E applies to P’s NPA 60 reckonable service.
(7) The amount calculated in accordance with paragraph (5)(b) must be multiplied by the appropriate factor for a person with NPA 65 reckonable service—
(a)where the pension is a phased retirement pension, if P is under 65 on the relevant date, and
(b)where the pension is a retirement pension, if Case D or Case E applies to P’s NPA 65 reckonable service.
(8) Where P was in pensionable employment after reaching the age of 65, such part of the amount calculated in accordance with paragraph (5)(b) as relates to reckonable service before P reached that age must be multiplied by the factor specified in paragraph (9).
(9) The factor is such factor relating to the length of the period (in years and complete months) between the date of P’s 65th birthday and the entitlement day for that part of P’s retirement pension mentioned in paragraph (5)(b) as the Secretary of State is to determine from time to time after taking advice from the scheme actuary.
(10) For the purpose of paragraph (8), where a transfer value other than one from a comparable United Kingdom scheme is accepted after P is 65, the reckonable service attributable to the transfer value is to be treated as being after P reached that age.
(11) In this regulation—
(a)“relevant date” has the same meaning as in regulation 57(9) (election to receive phased retirement benefits), and
(b)the “entitlement day” means the entitlement day referred to in regulation 60 (retirement benefits).
(12) The annual rate of a retirement pension is subject to paragraph 23 of Schedule 13 (National Insurance modification of pensions).
62.—(1) This regulation applies for calculating the amount of phased retirement and retirement lump sums.
(2) The amount of the lump sum of a person (P) is the amount mentioned in paragraph (4) less the total of the benefits mentioned in paragraph (5) previously payable to P other than any already deducted in the calculation of a lump sum (whether under this regulation or regulation 117(5) (person to be treated as electing to receive lump sum in place of pension)
(3) But no lump sum may exceed P’s permitted maximum.
(4) The amount is 3/80 x P’s average salary x P’s NPA 60 reckonable service to which a Case applies (in years and fractions of a year).
(5) The benefits are—
(a)any phased retirement lump sum in a case where the phased retirement pension payable with the lump sum ceased to be payable under regulation 59 (cessation of phased retirement pension);
(b)any ill-health lump sum;
(c)any total incapacity lump sum;
(d)any lump sum under regulation 116 (election to receive lump sum in place of pension) other than a lump sum attributable to—
(i)a phased retirement pension except where the pension ceased to be payable under regulation 59 (cessation of phased retirement pension), or
(ii)an additional pension;
(e)any short-service incapacity grant, in a case where, after the grant became payable, P re-entered pensionable employment before 1st September 2010.
(6) The amount calculated in accordance with paragraph (4) must be multiplied by the appropriate factor for a person with NPA 60 reckonable service—
(a)where the lump sum is a phased retirement lump sum, if P is under 60 on the relevant date;
(b)where the lump sum is a retirement lump sum, if Case D or Case E applies to P’s NPA 60 reckonable service.
(7) In this regulation—
“permitted maximum” must be construed in accordance with paragraph 2 of Schedule 29 to FA 2004;
“relevant date” has the same meaning as in regulation 57(9) (election to receive phased benefits).
63.—(1) This regulation applies where a person’s reckonable service is attributable to a period of employment which counts towards both—
(a)phased retirement benefits or retirement benefits under these Regulations, and
(b)a benefit (other than a benefit under these Regulations) payable directly or indirectly out of moneys provided by Parliament or from council tax levied by local authorities.
(2) But this regulation does not apply where the other benefit—
(a)is subject to reduction under regulation 142 of the Local Government Pension Scheme Regulations 1997(1), or
(b)is payable under regulation 7 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations(2) 1997.
(3) Except as provided in paragraphs (4) and (5), the person’s phased retirement benefits or retirement benefits must be reduced by so much as is necessary to secure that A is reduced by B.
(4) A must not be reduced to less than C.
(5) A phased retirement pension or retirement pension must not be reduced so that so much of it as is attributable to the double period is below the rate of any equivalent pension benefits attributable to that period.
(6) In the case of a pension, the reduction must be applied to the amounts in paragraph (5)(a) and (b) of regulation 61 (annual rate of phased retirement and retirement pension) before any multiplication under paragraphs (6), (7) or (8) of that regulation.
(7) In the case of a lump sum, the reduction must be applied to the amount in paragraph (4) of regulation 62 (amount of phased retirement and retirement lump sum) before any multiplication under paragraph (6) of that regulation.
(8) In this regulation—
A is the actuarial value of the phased retirement or retirement benefits attributable to the double period;
B is the actuarial value of the other benefit attributable to the double period;
C is the actuarial value of the sum of—
the amount of contributions (including any paid under regulation C9 of TPR 1997 or regulation 19) paid by the person in respect of the double period, and
interest on those contributions at 3% per annum compounded with yearly rests from the first day of the financial year following that in which the contributions were paid to the date on which retirement benefits became payable to the person;
the “double period” means the period mentioned in paragraph (1);
“local authority” includes a non-metropolitan district council for an area for which there is a county council;
the “other benefit” means the benefit mentioned in paragraph (1)(b) and includes any sum payable, whether as a continuing allowance or as a lump sum, by way of pension, superannuation allowance, compensation for loss of office or otherwise in respect of retirement.
64.—(1) This regulation applies while a person (P) falling within paragraph (2) is employed—
(a)in pensionable employment, comparable British service or employment which would have been pensionable but for—
(i)P having made an election under regulation 9 (election for employment not to be pensionable), or
(ii)P having reached the age of 75,
(b)in part-time employment in a capacity described in paragraphs 1,2 and 4 to 9 of Schedule 2 which is not pensionable employment by reason of the fact that the employment falls within regulation 7(6), but has not made an election under regulation 10(1) (election for employment to be pensionable), or
(c)in full-time employment which is not pensionable employment by reason of the fact that the employment falls within regulation 7(8), but has not made an election under regulation 10(2)(d).
(2) P falls within this paragraph if—
(a)retirement benefits have become payable to P, or
(b)P has elected to receive phased retirement benefits, and neither paragraph (6) nor paragraph (7) of regulation 61 (multiplication of pension by appropriate factor) apply in relation to the phased retirement pension.
(3) But this regulation does not apply in respect of a pension (or part of a pension) which is payable to the person by reason of Case E applying to the person’s reckonable service.
(4) If the person is concurrently both in employment falling within paragraph (1)(a) and in employment falling within paragraph (1)(b), this regulation applies only in respect of the former.
(5) Where this regulation applies—
(a)if the amount of the person’s salary in the employment during the tax year equals or exceeds the person’s adjusted salary of reference in any tax year, no pension is to be paid in that tax year; and
(b)in any other case, the pension to which the person is entitled in any tax year is to be reduced if necessary so as to secure that the pension paid during that tax year does not exceed (A x P/Q),
where—
A is the amount by which the person’s salary in the employment during the tax year falls short of that person’s adjusted salary of reference,
P is the full annual rate of the person’s pension during the tax year in question as increased under PIA 1971 but disregarding the effect of paragraphs (10) or (11), and
Q is the total of—
the full annual rate of the person’s pension,
the full annual rate of compensation payable under regulation 7 (mandatory compensation for premature retirement) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997(3), and
the full annual rate of all compensation payable under regulation 12 (discretionary compensation for premature retirement) of those Regulations,
for the tax year in question, as increased under PIA 1971.
(6) In paragraph (5), the adjusted salary of reference is, or where the person’s previous employment was part time, the full time equivalent of—
(a)the highest salary taken into account in determining the person’s average salary under regulation 37 or 38, multiplied by the adjustment factor, or
(b)(if applicable) the highest salary taken into account in determining the person’s average salary under regulation 37 or 38 relating to the person’s further employment, multiplied by the adjustment factor,
whichever is the higher.
(7) For the purpose of paragraph (6) the adjustment factor is the amount (if any) by which, immediately before the first day of the employment, any salary referred to in paragraph (6) would have increased if it had been the annual rate of an official pension as defined in section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the same date as—
(a)the last day of employment at that salary, in a case where the person’s average salary was determined under regulation 37, or
(b)the pension, in a case where the person’s average salary was determined under regulation 38.
(8) Where a pension falls to be reduced under paragraph (5)(b) in any tax year, the Secretary of State is to pay the pension in accordance with regulation 109 (monthly payments) or regulation 110 (quarterly payments) at the rate which is appropriate without taking account of the reduction until the amount to which the pension is to be reduced (on the assumption that the person will remain in employment at the same salary for the remainder of the tax year) has been paid.
(9) Once the appropriate amount of pension has been paid as mentioned in paragraph (8), no further payment is to be made during that tax year unless the person ceases to be in the employment or is in employment at a lower salary in which case the Secretary of State is to pay pension during the remainder of the tax year to the person of such amount and at such times as is necessary in order to secure the result described in paragraph (5).
(10) Where the actual pension paid in any tax year has exceeded the amount which should have been paid by virtue of paragraph (5) (“the excess payment”) the pension payable in the subsequent tax year is to be reduced by the excess payment.
(11) In paragraphs (5) and (7) to (10) “pension” means the aggregate of a person’s retirement pension (other than a pension or part of a pension referred to in paragraph (3)) and any phased retirement pension, additional pension or total incapacity pension paid with that pension.