The Teachers' Superannuation (Scotland) Amendment Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

These Regulations make further amendments to the Teachers' Superannuation (Scotland) Regulations 1992 (S.I. 1992/280).

Regulation 3 amends regulation D1 to provide for the calculation of reckonable service where a teacher is in winding down employment. Where a teacher is in winding down employment, the period of part-time service under the winding down employment shall count as if it had been full time service. Where a teacher ceases to be in winding down employment (leaving during or at the end of the 4 years permissible) and returns to teaching service, as defined in the Regulations, the service credit during the period of winding down employment shall be removed.

Regulation 4 amends regulation E5 to introduce a new early retirement provision. Paragraph (1)(g) provides that, subject to certain conditions, a teacher may be paid actuarially reduced retirement benefits if the teacher retires between the ages of 55 and 60. Actuarially reduced retirement benefits will not be paid if the annual amount is less than the aggregate annual value of any equivalent pension benefits and any guaranteed minimum pension to which the teacher is entitled. The employer’s consent, which cannot be withheld for more than 6 months from the date on which the teacher notified his or her employer of his or her wishes, is required where the teacher is in pensionable or excluded employment at the time of his application.

Regulations 5 and 6 amend regulations E6 and E7 to give effect to the amount of actuarially reduced pension and lump sum to be paid.

Regulation 7 amends regulation E9 so that the enhancement which may be paid to a teacher whose ill-health retirement benefits are calculated by reference to further employment which is pensionable by virtue of regulation B8 is limited to the shorter of the length of the teacher’s relevant service or the length of the period remaining before the teacher’s 60th birthday.

Regulation 8 amends regulation E15 so that a teacher’s actuarially reduced pension will not be subject to abatement.

Regulations 9 and 10 amend regulation E16 and E16A respectively to provide that a teacher may take an actuarially reduced pension following a period of re-employment which is pensionable by virtue of regulation B8.

Regulation 11 amends the provisions for determining the pensionable salary of a teacher who is in winding down employment. Pensionable salary is to be calculated by reference to the teacher’s salary for the last consecutive 365 days prior to commencement of the winding down employment, index-linked as appropriate.

Regulation 12 amends regulation G9 to increase employers' contributions by 0.25% from 1st April 2003. Regulation 12(c) provides for the situation where a teacher commences winding down employment and either simultaneously or subsequently commences employment at a reduced salary (stepping down arrangements). Where this occurs, employers will be required to pay employer and employee contributions on the difference between the amount of contributable salary that would have been payable if the teacher had entered winding down employment only and the contributable salary that is actually payable because the teacher has both stepped down and wound down.

Regulation 13 introduces a new regulation whereby teachers who meet certain criteria may, with the consent of the employer, wind down by working 50 percent of full-time service or more and receive full-time service credit.

Regulation 14 inserts the terms “Teaching service” and “Winding down employment” into the Glossary of Expressions.