The Teachers’ Pensions Regulations 2010

PART 2 Further provisions where family benefit contributions are to be paid by Method 1

17.  This Part applies where family benefit contributions are payable by monthly contributions under paragraph 15 (Method 1).

18.—(1) The payment period begins on the first day of the month following that in which it is notified to the person by the Secretary of State.

(2) Where the payment period would (apart from this sub-paragraph) end on a day other than the last day of a month, the payment period ends with the last day of the month in which it would otherwise end.

(3) If after the start of the payment period there is an interval of more than 30 days during which the person is not in pensionable employment or paying additional contributions under regulation C9 of TPR 1997 or regulation 19—

(a) the interval is not part of the payment period, but

(b) the end of the payment period is postponed by the length of the interval.

(4) If after the start of the payment period the person becomes employed in part-time pensionable employment, the length of the payment period is increased by P x (1-CS/FTCS) where—

• P is the period (in years and fractions of a year) in which the person was employed in part-time employment,

• CS is the persons’ contributable salary for the period, and

• FTCS is what would have been the person’s contributable salary for the period if the employment had been full-time.

19.—(1) The contributions—

(a) are payable from the start of the payment period,

(b) continue to be payable while the person is in pensionable employment or paying additional contributions under regulation C9 of TPR 1997 or regulation 19, and

(c) cease to be payable if the person dies or becomes entitled to retirement benefits before the end of the payment period.

(2) Where the person is paying additional contributions under old regulation C9 of TPR 1997 or regulation 19 for any financial year, the family benefit contributions for that financial year are calculated by reference to the notional salary on which the additional contributions are payable and must be paid to the Secretary of State by the same day as the additional contributions.

20.—(1) The election may at any time be varied by an election to pay family benefit contributions at a specified higher rate.

(2) An election under sub-paragraph (1)—

(a) must be made by giving written notice to the Secretary of State, and

(b) must be accompanied by a declaration by the person that the person is in normal health.

(3) Where the original election is varied by one made under sub-paragraph (1) (“the further election”) a new payment period begins on the first day of the month following that in which it is notified to the person by the Secretary of State.

(4) The new payment period is A-(B/CxD)

where—

• A is what the length of the payment period would have been if the increased rate had been specified in the original election,

• B is the rate specified in the original election,

• C is the increased rate, and

• D is the period from the start of the payment period to the effective date of the further election.

(5) Paragraph 18(2), (3) and (4) applies to the new payment period.

21.—(1) Paragraphs 22 to 26 apply where family benefit contributions cease to be payable before the end of the payment period.

(2) Paragraphs 22 to 26 are subject to paragraph 27.

(3) In paragraphs 22 to 27 “the appropriate terminal sum” means a retirement lump sum or a death grant as appropriate.

(4) For the purposes of paragraphs 22 and 23 a person with mixed service has a normal pension age of 65 in respect of all of that person’s reckonable service (despite regulation 48).

22.—(1) This paragraph applies where the person paying the contributions (P), —

(a) dies before reaching the normal pension age or

(b) (whether or not P later re-enters pensionable employment) becomes entitled to payment of retirement benefits by virtue of Case C (ill health retirement) applying to P’s reckonable service before reaching the normal pension age,

and paragraph 24 does not apply.

(2) But this paragraph only applies where the Secretary of State is satisfied that—

(a) the declaration under paragraph 11(b), or

(b) where a declaration has been given under paragraph 20(2)(b), that declaration (or, if there is more than one, the most recent)

was made in good faith.

(3) Where this paragraph applies—

(a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made, but

(b) if part of the payment period falls after P’s 60th birthday, in the case of a pre-2007 entrant, or P’s 65th birthday in the case of a person with mixed service, the actuarial equivalent of the contributions that would have been payable during that part is to be deducted from the appropriate terminal sum.

23.—(1) This paragraph applies where—

(a) the person paying the contributions dies, or becomes entitled to payment of retirement benefits, after reaching the normal pension age, or

(b) paragraph 22 does not apply only because the Secretary of State was not satisfied that the declaration under paragraph 11(b) or any declaration under paragraph 20(2)(b) was made in good faith

and paragraph 25 does not apply.

(2) Where this paragraph applies—

(a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made, but

(b) except where sub-paragraph (3) applies, there is to be deducted from the appropriate terminal sum an amount of (A x B/100) x C

where—

• A is the annual rate at which the person’s contributable salary was last payable,

• B is the rate at which the contributions were last payable, and

• C is the multiplier determined from time to time by the Secretary of State after taking advice from the scheme actuary.

(3) Where the Secretary of State is satisfied that the declaration under paragraph 11(b) was made in good faith but is not satisfied that a declaration under paragraph 20(2)(b) was made in good faith there is to be deducted from the appropriate terminal sum an amount determined by the Secretary of State after taking advice from the scheme actuary.

24.—(1) This paragraph applies where—

(a) the person paying the contributions (P) falls within paragraph 22(1)(a) or (b),

(b) part of the payment period falls after P’s relevant birthday,

(c) the Secretary of State is satisfied that the declaration under paragraph 11(b) or any declaration under paragraph 20(2)(b) (where applicable) was made in good faith, and

(d) a phased retirement lump sum became payable to P before the family benefit contributions ceased to be payable.

(2) Where this paragraph applies—

(a) P may, by giving written notice to the Secretary of State within 3 months after the end of P’s pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during that part of the payment period which falls after P’s relevant birthday,

(b) if P does so elect, on payment of the lump sum, contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made, and

(c) if P does not so elect contributions are to be treated as having been paid in respect of D x E/F, where—

• D is the period of non-qualifying service in respect of which the original election was made,

• E is the period starting at the beginning of the payment period and ending on P’s relevant birthday, and

• F is the payment period.

(3) In this paragraph P’s “relevant birthday” is P’s 60th birthday where P is a pre-2007 entrant or P’s 65th birthday where P is a person with mixed service.

25.—(1) This paragraph applies where—

(a) the person paying the contributions (P) falls within paragraph 23(1)(a) or (b), and

(b) a phased retirement lump sum became payable to P before the family benefit contributions ceased to be payable.

(2) Where this paragraph applies contributions are treated as having been paid in respect of G x H/J where—

• G is the period of non-qualifying service in respect of which the original election was made,

• H is the period during which contributions were paid, and

• J is the payment period.

26.—(1) This paragraph applies where the person paying the contributions (P) becomes entitled to payment of retirement benefits by virtue of Case D applying to P’s reckonable service.

(2) Where this paragraph applies—

(a) P may, by giving written notice to the Secretary of State within 3 months after the end of P’s pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during the remainder of the payment period,

(b) if P does so elect, on payment of the lump sum, contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made, and

(c) if P does not so elect contributions are to be treated as having been paid in respect of K x L/M, where—

• K is the period of non-qualifying service in respect of which the original election was made,

• L is the period during which contributions were paid, and

• M is the payment period.

27.  Where—

(a) a deduction has fallen to be made under paragraph 22(3) or 23(2) or an election has been made under paragraph 26(2)(a), and

(b) there is then a retrospective increase in the person’s contributable salary, and

(c) the consequent recalculation of the amount of the deduction or lump sum and of the appropriate terminal sum results in a greater increase in the amount of the deduction or lump sum than in the terminal sum,

the person, or, as the case may be, the person’s widow, widower, surviving civil partner, surviving nominated partner or surviving nominated beneficiary, may give written notice to the Secretary of State in writing that the amount of the deduction made or lump sum payable is not to be increased.