The Teachers' Superannuation (Amendment) ( No. 2) Regulations (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Regulations.)

These Regulations further amend the Teachers' Superannuation (Additional Voluntary Contributions) Regulations (Northern Ireland) 1996 (“the AVC Regulations”), the Teachers' (Compensation for Redundancy and Premature Retirement) Regulations (Northern Ireland) 1991 (“the Compensation Regulations”) and the Teachers' Superannuation Regulations (Northern Ireland) 1998 (“the Pensions Regulations”).

The Pensions Regulations are the basis upon which the Northern Ireland Teachers' Pension Scheme (“the Scheme”) operates. The AVC Regulations enable Scheme members to pay additional voluntary contributions. The Compensation Regulations provide for compensation to be paid to teachers in certain circumstances on termination of employment.

Most of the amendments in these Regulations make provision following the creation of the status of civil partner by the Civil Partnership Act 2004. In addition to minor and drafting amendments and those which correct errors, the following changes are made.

Regulation 3(3) amends regulation 2 of the AVC Regulations so that “dependent” includes a surviving civil partner.

Regulation 7 amends regulation 11 of the Compensation Regulations to provide for the circumstances in which long-term compensation ceases to be payable.

Regulations 9, 10, 13(3), 22(3) and (4), 27(2), 33(3) and 42 enable periods of paternity and adoption leave to be treated in the same way as periods of maternity leave.

Regulation 11 corrects an error in regulation C5 of the Pensions Regulations, in relation to the date of commencement of those Regulations.

Regulations 12 , 45, 46(2) – (4) and (6) amend regulation C8 of and Schedule 6 to the Pensions Regulations to enable a Scheme member who forms a civil partnership to pay family benefit contributions in respect of periods of his service prior to 6th April 1988.

Regulations 13(2), 38(2), 39 and 40 insert a new regulation in the Pensions Regulations and make other amendments to enable the Scheme to accept transfers as part of a “bulk” transfer from other pension schemes in addition to on an individual basis.

Regulations 14, 35, 37 and 41 introduce a new regulation F1A to enable a transfer value to be paid, subject to the Government Actuary’s advice, on terms that are preferential to the usual cash equivalent basis in circumstances where the employment of one or more teachers is compulsorily transferred to a new employer and he or they are unable to remain in the Northern Ireland Teachers' Superannuation Scheme.

Regulation 15 amends regulation E1 to require a pension to be paid in certain circumstances to a surviving civil partner of a Scheme member who had a guaranteed minimum pension (within the meaning of the Pensions Schemes (Northern Ireland) Act 1993(a)).

Regulation 16 makes provision for benefits in respect of a person’s guaranteed minimum pension rights to be paid at state retirement age and for benefits in respect of a teacher’s section 5(2B) rights (namely, rights attributable to a teacher’s service in contracted-out employment on or after 6 April 1997) to be paid at age 60 where he has transferred his accrued rights in excess of those benefits to non-contracted-out pension scheme.

Regulation 17 amends regulation E4 of the Pensions regulations. The amendment allows men to retire at age 55 in the same circumstances as women. However these provisions which permit such retirement will cease to have effect as from 31st August 2006.

Regulation 18 amends regulation E8 of the Pensions Regulations to reduce from 5 years to 2 years the period needed to qualify for enhanced ill-health retirement benefits in respect of teachers who retire on grounds of incapacity where pensionable or excluded employment terminates on or after 5th December 2005.

Regulations 19 and 47 amend regulation E11 and Schedule 10 to enable a Scheme member to allocate his pension to provide an alternative benefit for his civil partner.

Regulation 20 extends the option of commuting pensions on the grounds of exceptional circumstances of ill-health to those who retire at age 60.

Regulation 21 inserts a new regulation E19A into the Pensions Regulations to enable pensions which do not exceed £260 per annum to be commuted.

Regulations 22(2) and (5) clarifies the position with regard to eligibility for death grants paid under regulation E20 of the Pensions Regulations.

Regulations 22(6), (7) and (8), 23 and 43 amend regulation E20, E21 and I6 to require any death grant or supplementary death grant to be paid, in the absence of a nominee, to the Scheme member’s surviving civil partner in the first instance.

Regulations 24(2), 26, 27(3) and (4), 28, 29(2) and (4) and 30(2), (3), (7) and (8) amend regulations E22 and E24 to E28 to provide for short- and long-term pensions to be paid to surviving civil partners of Scheme members.

Regulation 24(3) amends regulation E22 to ensure that a teacher’s natural children must be born, at the latest, 12 months after his death to be entitled to family benefits.

Regulation 24(4) further amends regulation E22 so that a “child” for the purposes of the Pensions Regulations does not include someone who is a civil partner.

Regulation 25 amends regulation E23 so that a civil partner cannot nominate, or be nominated as, a beneficiary to receive a survivor’s pension.

Regulation 28 (insofar as it relates to new regulation E26(4)), 29(2) and 30(6) clarify the circumstances in which a survivor’s pension is payable to both a widower and a beneficiary on the death of certain women members of the Scheme. No change of effect is intended.

Regulation 30(6) rectifies errors in regulation E28 of the Pensions Regulations which relate to the enhancement of benefits in certain circumstances.

Regulation 31 amends regulation E29 to provide for the calculation of long-term pensions payable to the children of Scheme members who are civil partners.

Regulation 32 amends regulation E30 which provides for the circumstances in which a survivor’s pension ceases to be payable.

Regulation 34 amends regulation E33 to enable pensions to be paid quarterly.

Regulation 38(3) corrects an error in regulation F4 of the Pensions Regulations.

Regulation 44 adds a number of definitions to Schedule 1 to the Pensions Regulations.

Regulation 45 inserts a new Part 11A into Schedule 6.

Regulation 46(5) amends paragraph 14 of Part 111 of Schedule 6 to make it clear that a person paying family benefit contributions who ceases to be in pensionable employment but elects to pay an additional contribution under regulation C6 or C7 must continue to pay family benefit contributions based on his notional salary calculated in accordance with regulation C6 or C7.

Regulation 48 makes transitional provision for opting out where rights in relation to former Scheme members are adversely affected.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.