PART 5

Retirement Benefits for Teachers
CHAPTER 8

Short-service annuity for post-benefit service

Meaning of “entitlement day” (short-service annuity)
123
The entitlement day for a short-service annuity is the date specified in an application under regulation 162 for payment of the annuity, which must be no earlier than 6 weeks after the day on which the application is made.

Entitlement to short-service annuity
124
1
A person (P) is entitled to payment from the entitlement day of a short-service annuity in respect of post-benefit service if—
a
P enters a period of post-benefit service;
b
P is not re-qualified for retirement benefits in respect of that service;
c
P leaves all eligible employment; and
d
P has applied under regulation 162 for payment of the annuity.
2
A short-service annuity is payable for life.

Annual rate of short-service annuity
125
The annual rate of a short-service annuity is the actuarial equivalent (to be determined by the Department after taking advice from the scheme actuary) of the sum of—
a
all of the members' contributions, faster accrual contributions (if any) and additional pension contributions (if any) in respect of a period of post-benefit service paid up to the date of receipt of the application under regulation 162; and
b
interest to the date of payment at 3% per year, compounded with yearly rests on those contributions from the first day of the financial year following that in which they were paid.