The Teachers’ Pension Scheme (Scotland) Regulations 2014

Regulation 13

SCHEDULE 1 Eligible employment

PART 1 General

Interpretation

1.—(1) In this Schedule—

“proprietor” has the meaning assigned to it by section 135 of the Education (Scotland) Act 1980(1) and includes a person who, by reason of holding any office or having an interest in a company by which the school is conducted, is substantially in the position of a proprietor;

“registered” means registered in the register of independent schools in accordance with Part V of the Education (Scotland) Act 1980.

(2) Subject to sub-paragraph (1), expressions used in this Schedule to which meanings are assigned by the Education (Scotland) Act 1980 have the same meaning in this Schedule as they have in that Act.

Meaning of “accepted school”

2.—(1) An establishment is an accepted school if—

(a) immediately before 1st April 2015 it was an accepted school under regulation B5 of the 2005 Regulations; or

(b) being registered, and being the subject of a relevant application by its governing body or proprietor, it is accepted by the scheme manager as able to meet the requirements placed upon an employer under regulation 189 to pay employers’ contributions.

(2) Despite the terms of sub-paragraph (1)(b), the scheme manager may, in such case as it thinks appropriate, accept under that provision an independent school which is for the time being only provisionally registered.

(3) The date on which an independent school becomes an accepted school under sub-paragraph (1)(b) is the date agreed between the scheme manager and the school’s proprietor, being the first day of a month after that in which the relevant application was made.

(4) An accepted school ceases to be accepted on such a day as is specified in a notice in writing sent by the scheme manager to the governing body or proprietor of the school on or after any of the following events—

(a) the receipt by the scheme manager of an application by the governing body or proprietor of the school seeking that it should cease to be an accepted school;

(b) the school ceasing to be registered;

(c) any default by the governing body or proprietor in the payment of contributions, whether under these Regulations or under the Teachers’ Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995(2);

(d) failure by the governing body or proprietor to comply within one month with any requirement of the scheme manager to make any report or return, give any information or produce any document under regulation 191;

(e) failure by the governing body or proprietor to comply with any other provision of these Regulations relating to the employment of teachers who are in eligible employment;

(f) the closure of the school.

PART 2 Pensionable service

3.  Employment as a teacher in a public or grant-aided school, or in a designated institution (within the meaning of section 44(2) of the Further and Higher Education (Scotland) Act 1992(3)), or other establishment which is maintained or grant-aided out of moneys provided from the Scottish Consolidated Fund or from council tax levied by local authorities.

4.—(1) Subject to sub-paragraph (2), employment as a teacher in a school which is an accepted school.

(2) The service of a teacher in an accepted school is not pensionable employment if—

(a) the teacher is a proprietor of the school; or

(b) paragraph 2(1)(a) applies to the school and the teacher’s employment in the school immediately before 1st April 2015 was not reckonable service within the meaning of the 2005 Regulations.

5.  Employment as a teacher in an independent school which is for the time being recognised by the Scottish Ministers as a technology academy within the meaning of section 68(1) of the Self-Governing Schools etc. (Scotland) Act 1989(4).

6.  Employment as a teacher in a college of further education which is managed by a board of management in terms of Part I of the Further and Higher Education (Scotland) Act 1992.

7.  Employment as a teacher in the Scottish Further Education Unit.

8.  Employment as a teacher in a university or part of a university, which before becoming a university or part of a university was a central institution, being a teacher whose employment therein immediately before 1st August 1977 was reckonable service under an enactment relating to the superannuation of teachers in Scotland.

9.  Employment as a teacher in the Faculty of Education at the University of Strathclyde, where the teacher immediately before 1st April 1993 was in pensionable employment at Jordanhill College of Education, was transferred to employment at the University of Strathclyde on 1st April 1993 and has not ceased to be employed in the Faculty of Education there at any time since that date.

10.  Employment as a teacher in the Schools of Architecture, Town and Regional Planning, Design, Fine Art, Food and Accommodation Management or Television and Imaging at the University of Dundee, where the teacher immediately before 1st August 1994 was in pensionable employment at Duncan of Jordanstone College of Art, was transferred to employment at the University of Dundee on 1st August 1994 and has not ceased to be employed in any of the said Schools there at any time since that date.

11.  Employment as a teacher in the Faculty of Education or the Faculty of Social Sciences at the University of Edinburgh, where the teacher immediately before 1st August 1998 was in pensionable employment at Moray House Institute of Education, was transferred to employment at the University of Edinburgh on 1st August 1998 and has not ceased to be employed in the Faculty of Education or the Faculty of Social Sciences there at any time since that date.

12.  Employment as a teacher in the Faculty of Engineering or the Faculty of Economic and Social Studies at Heriot-Watt University, where the teacher immediately before 1st October 1998 was in pensionable employment at the Scottish College of Textiles, was transferred to employment at Heriot-Watt University on 1st October 1998 and has not ceased to be employed in the Faculty of Engineering or the Faculty of Economic and Social Studies there at any time since that date.

13.  Employment as a teacher in the Faculty of Education at the University of Glasgow, where the teacher immediately before 1st April 1999 was in pensionable employment at St. Andrew’s College of Education, was transferred to employment at the University of Glasgow on 1st April 1999 and has not ceased to be employed in the Faculty of Education there at any time since that date.

14.  Employment as a teacher in the Faculty of Education at either the University of Aberdeen or the University of Dundee, where the teacher immediately before 1st December 2001 was in pensionable employment at Northern College of Education, was transferred to employment at the University of Aberdeen or the University of Dundee on 1st December 2001 and has not ceased to be employed in the Faculty of Education at either the University of Aberdeen or the University of Dundee at any time since that date.

15.  Employment as a teacher in Edinburgh College of Art, a part of the University of Edinburgh, where the teacher immediately before 1st August 2011 was in pensionable employment at Edinburgh College of Art, was transferred to employment at the University of Edinburgh on 1st August 2011 and has not ceased to be employed in that part of the University of Edinburgh at any time since that date.

16.—(1) Employment as a teacher of a kind not elsewhere specified in this Schedule if—

(a) the teacher is employed by an education authority otherwise than in a public school;

(b) the teacher’s employer receives grant either from the Scottish Ministers or a local authority for the purposes of employing him or her and he or she elects by notice in writing to the Scottish Ministers within 3 months of the commencement of employment, with the agreement of his or her employer, that his or her service is to be pensionable employment and the Scottish Ministers agree; or

(c) the teacher’s employment is approved by the Scottish Ministers for the purposes of this Schedule and he or she elects by notice in writing to the Scottish Ministers within 3 months of the commencement of employment, with the agreement of his or her employer, that his or her service is to be pensionable employment and the Scottish Ministers so agree.

(2) Any election made under paragraph 4(b) or (c) of Schedule 1 to the Teachers Superannuation (Scotland) Regulations 1977(5) or under paragraph 14(1)(b) or (c) of Schedule 2 to the 2005 Regulations is to be treated as having been made under sub-paragraph (1)(b) or (c) above.

17.  Continuation in employment on and after 1st April 2015 of the employments mentioned in paragraph 5 of Schedule 1 to the Teachers Superannuation (Scotland) Regulations 1977.

Regulations 3, 44, 45, 144 and 180

SCHEDULE 2 Scheme flexibilities

PART 1 General

Interpretation of Schedule

1.  this Schedule—

“additional pension contributions” means contributions for an additional pension;

“additional pension election” means an election under Part 2 of this Schedule;

“amount of accrued extra earned pension” means the amount of accrued earned pension attributable to a faster accrual election;

“amount of extra pension” has the meaning given in paragraph 2;

“buy-out contributions” means contributions to buy out the standard reduction;

“buy-out election” means an election under Part 4 of this Schedule;

“buy-out value” means an amount determined or re-determined by the scheme manager in accordance with Part 4 of this Schedule;

“contributions” means—

(a)

additional pension contributions;

(b)

faster accrual contributions; or

(c)

buy-out contributions;

“contributions payment period”, for contributions paid monthly, means the period beginning on the start date and ending with the date on which the final monthly payment is due;

“election” means—

(a)

an additional pension election;

(b)

a faster accrual election; or

(c)

a buy-out election;

“faster accrual contributions” means contributions for a faster accrual rate;

“faster accrual election” means an election under Part 3 of this Schedule;

“faster accrual rate”, in relation to P’s pensionable earnings, means 1/45th, 1/50th or 1/55th;

“maximum” has the meaning given in Chapter 1 of Part 4 of this Schedule;

“monthly payments”, in respect of an election, means contributions paid monthly;

“overall amount” means the overall amount of extra pension as defined in paragraph 3;

“refund period”, in relation to additional pension contributions, means the period ending one year after the start date;

“start date”—

(a)

for contributions paid by lump sum, means the date on which the scheme manager receives the lump sum; and

(b)

for monthly payments, means the first day of the second month after the month in which the election is accepted.

Meaning of “amount of extra pension”

2.  The amount of extra pension for a person (P) at any given time is the sum of the following—

(a) the amount of accrued extra earned pension (if any) at that time;

(b) the amount of accrued additional pension (if any) at that time;

(c) the buy-out value at that time, if P has elected to buy out the standard reduction.

Meaning of “overall amount of extra pension”

3.—(1) The overall amount of extra pension is—

(a) £6,500 for any financial year ending before 1st April 2016; and

(b) for any financial year beginning on or after that date—

(i) an amount determined by the Treasury for that financial year; or

(ii) if the Treasury has not determined an amount for that financial year, the amount calculated under sub-paragraph (2).

(2) If the Treasury has not determined an amount under sub-paragraph (1)(b)(i) for any financial year, the overall amount for that financial year is the amount to which the annual rate of a pension of an amount equal to the overall amount for the previous financial year would have been increased under PIA 1971 if—

(a) that pension were eligible to be so increased; and

(b) the beginning date for that pension were the first day of the previous financial year.

Limit on elections

4.—(1) The scheme manager must not accept an additional pension election or a faster accrual election in relation to a member (P) at any time if—

(a) the scheme manager has accepted a buy-out election from P; and

(b) the buy-out value at that time exceeds the overall amount of extra pension at that time.

(2) The scheme manager must not accept an additional pension election or a faster accrual election that would result in the amount of extra pension exceeding the overall amount of extra pension.

Actuarial advice

5.  The scheme manager must take advice from the scheme actuary before determining any amount under this Part.

PART 2 Additional pension election

CHAPTER 1 Making an additional pension election

Election to pay contributions for additional pension

6.—(1) A member (P), or P’s employer with the consent of P, may elect to pay contributions for an additional pension in respect of P (“additional pension election”).

(2) An additional pension election must—

(a) state whether the election is for—

(i) an additional (self only) pension; or

(ii) an additional (self only) pension and an additional (surviving adult) pension; and

(b) specify the annual rate of additional (self only) pension to be paid with P’s retirement pension.

Annual rate of additional (self only) pension

7.  The annual rate of additional (self only) pension specified in an additional pension election must be a multiple of—

(a) £250; or

(b) any other amount determined by the scheme manager.

Lump sum or monthly payments

8.—(1) An employer’s contributions for additional pension must be made by lump sum.

(2) A member’s additional pension contributions may be paid by lump sum or by monthly payments.

Making an additional pension election

9.—(1) An additional pension election in relation to a member (P)—

(a) must be made by written notice to the scheme manager; and

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

(2) When the election is made, P must be—

(a) in pensionable service; and

(b) under normal pension age.

(3) The notice must state whether additional pension contributions are to be paid—

(a) as a lump sum, or

(b) by monthly payments.

(4) An employer’s contributions for additional pension must be made by lump sum.

(5) A member’s additional pension contributions may be paid by lump sum or by monthly payments.

(6) If monthly payments are to be made, the notice must—

(a) state the number of monthly payments, which must not be more than 240; and

(b) if P is in pensionable service in relation to more than one employment, specify which employer is to deduct the contributions.

(7) The scheme manager may request further information to be provided.

Accepting an additional pension election

10.—(1) The scheme manager may accept an additional pension election by giving written notice to the person who made the election (P).

(2) An additional pension election is accepted when P receives notice that the scheme manager has accepted the election.

CHAPTER 2 Amount of additional pension contributions

Determination of contributions payable

11.—(1) The scheme manager must determine the amount to be paid as a lump sum or as a monthly payment.

(2) The amount of the lump sum or monthly payment must reflect the cost of paying an additional (self only) pension and any additional (surviving adult) pension.

(3) The scheme manager may determine different amounts of lump sum or monthly payment—

(a) for different classes or descriptions of member; and

(b) depending on whether the additional pension election is for—

(i) an additional (self only) pension; or

(ii) an additional (self only) pension and an additional (surviving adult) pension.

(4) The scheme manager—

(a) may determine the amount of a monthly payment by reference to the length of the contributions payment period; and

(b) may exercise the functions under this paragraph so as to re-determine the amount of a monthly payment during the contributions payment period.

(5) Unless the scheme manager re-determines the amount, monthly payments following a gap in service during which an ill health pension was payable are the same as before the gap.

CHAPTER 3 Additional pension contributions paid by lump sum

Lump sum contributions: payment of contributions and credit of additional pension

12.—(1) This paragraph applies to a member—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by lump sum.

(2) The member’s additional pension account is to be credited with an amount equal to the annual rate of additional (self only) pension stated in the notice of election (“the amount of additional pension”) if the lump sum contribution is paid within one month after the additional pension election is accepted.

(3) The member’s additional pension account is not to be credited with the amount of additional pension unless the lump sum contribution is paid within that time.

Refund of lump sum contribution

13.—(1) This paragraph applies if a member (P) has paid a lump sum contribution for additional pension.

(2) The lump sum contribution must be refunded if, before the end of the refund period—

(a) P dies;

(b) an ill-health pension becomes payable to P; or

(c) P leaves all pensionable service and P is neither qualified nor re-qualified for retirement benefits in respect of that service.

CHAPTER 4 Additional pension contributions by monthly payments

Application of Chapter

14.  This Chapter applies to a member (P)—

(a) in respect of whom an additional pension election is accepted; and

(b) whose notice of election states that contributions are to be paid by monthly payments.

Payment of contributions

15.—(1) P must—

(a) make the first monthly payment within 2 months after the end of the month in which the additional pension election is accepted; and

(b) continue to make the monthly payments until the end of the contributions payment period.

(2) The final monthly payment must be made before P reaches normal pension age.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay the re-determined amount from the beginning of the next financial year.

(4) P is taken to revoke an additional pension election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

Member leaves all pensionable service before end of contributions payment period

16.—(1) This paragraph applies if P leaves all pensionable service before the end of the contributions payment period.

(2) If this paragraph applies—

(a) monthly payments for additional pension cease to be payable at the end of the period of one month beginning with the last day of pensionable service (“the one-month period”); and

(b) the amount of accrued additional pension as at the last day of pensionable service is an amount determined by the scheme manager.

(3) This paragraph does not apply if, within 2 months after the last day of pensionable service, P pays the scheme manager a lump sum of an amount determined by the scheme manager.

(4) For the purpose of this paragraph, P is not taken to have left all pensionable service if—

(a) during the one-month period, P begins a period of non-pensionable sick leave; and

(b) during the period of non-pensionable sick leave, an ill-health pension becomes payable to P.

Retirement pension (other than ill health pension) becomes payable before end of contributions payment period

17.—(1) This paragraph applies if any of the following retirement pensions becomes payable to a member (P) before the end of the contributions payment period—

(a) an age retirement pension;

(b) a phased retirement pension (if P has elected to receive additional pension with it);

(c) a premature retirement pension;

(d) an early retirement pension.

(2) If this paragraph applies—

(a) monthly payments for additional pension cease to be payable on the entitlement day for that pension; and

(b) the amount of accrued additional pension as at the relevant last day is an amount determined by the scheme manager.

CHAPTER 5 Revocation and refund

Revoking an additional pension election

18.—(1) P may revoke an additional pension election at any time before the end of the contributions payment period.

(2) P is taken to revoke an additional pension election if—

(a) P leaves all pensionable service before the end of the contributions payment period; and

(b) P is qualified or re-qualified for retirement benefits in respect of that service.

(3) On the date of revocation—

(a) monthly payments for additional pension under that election cease to be payable; and

(b) the amount of accrued additional pension as at that date is an amount determined by the scheme manager.

(4) A revocation must be by written notice to the scheme manager.

(5) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

Ill health pension becomes payable before end of contributions payment period

19.—(1) This regulation applies if an ill-health pension becomes payable to a member (P) before the end of the contributions payment period for an additional pension election.

(2) If an ill-health pension becomes payable to P before the end of the refund period—

(a) any monthly payments that have been made under that additional pension election must be refunded to P; and

(b) the amount of accrued additional pension as at the last day of pensionable service must be adjusted by deducting the amount of accrued additional pension attributable to that election.

(3) If an ill-health pension becomes payable to P after the end of the refund period—

(a) the monthly payments under the additional pension election are treated as being paid until the earlier of—

(i) the end of the contributions payment period for that election; or

(ii) the day on which an ill health pension ceases to be payable under regulation 112; and

(b) for the purpose of calculating the annual rate of ill health pension, the amount of accrued additional pension is—

(i) if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional pension calculated under regulation 45 or 46 as at the last day of pensionable service; or

(ii) if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions paid or treated as being paid.

(4) If P re-enters pensionable service when an ill health pension ceases to be payable under regulation 111, P may choose to resume the monthly payments.

Death in service before end of contributions payment period

20.—(1) This paragraph applies on the death of a member (D)—

(a) whose additional pension election is for an additional (self only) pension and an additional (surviving adult) pension;

(b) who dies in service within the meaning of Part 6 before the end of the contributions payment period for that election.

(2) If D dies before the end of the refund period—

(a) the monthly payments must be refunded to D’s surviving adult; and

(b) the additional pension account must be closed.

(3) If D dies after the end of the refund period—

(a) the monthly payments cease to be payable as at the date of D’s death; and

(b) for the purpose of calculating a survivor’s pension, the amount of accrued additional pension is—

(i) if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional pension calculated under regulation 44 or 45 as at the day of D’s death; or

(ii) if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions paid or treated as being paid.

Member leaves all pensionable service before qualifying for retirement benefits

21.  If a member (P) leaves all pensionable service before P is qualified for retirement benefits in respect of that service—

(a) any monthly payments made before the last day of pensionable service must be refunded to P; and

(b) the additional pension account must be closed.

PART 3 Faster accrual election

CHAPTER 1 Making the election

Faster accrual election

22.—(1) A member (P) may elect, in relation to pensionable service in an eligible employment, to pay contributions to accrue earned pension at a faster accrual rate in a financial year (“faster accrual election”).

(2) A faster accrual election must state the faster accrual rate which is to apply to P’s pensionable earnings in that employment for that financial year.

(3) A faster accrual election—

(a) must be made—

(i) in the financial year before the financial year to which it relates; or

(ii) if P is a new joiner, within one month after P enters pensionable service in relation to an employment;

(b) has effect from—

(i) the start of the financial year to which it relates; or

(ii) if P is a new joiner, one month after the election is received by the scheme manager; and

(c) ceases to have effect at the end of the financial year to which it relates unless it is revoked before then.

(4) When making a faster accrual election, P must be—

(a) in pensionable service; and

(b) under normal pension age.

Making a faster accrual election

23.—(1) A faster accrual election must be made by written notice to the scheme manager.

(2) The notice of election must specify—

(a) if the member (P) is in more than one eligible employment, the name of the employer who is to deduct the contributions;

(b) P’s name;

(c) P’s date of birth;

(d) P’s annual rate of pensionable earnings.

(3) The scheme manager may request further information to be provided.

Accepting a faster accrual election

24.  The scheme manager may accept a faster accrual election by giving written notice to—

(a) the member (P); and

(b) P’s employer.

(2) For the purpose of these Regulations, a faster accrual election is accepted when P receives notice from the scheme manager.

CHAPTER 2 Payment of contributions

Determination of contributions payable

25.  The scheme manager must determine the amount of the monthly payment to be paid in respect of a faster accrual election.

Payment of contributions

26.—(1) A member (P)—

(a) must make the first monthly payment within 2 months after the end of the month in which the faster accrual election is accepted; and

(b) must continue to make the monthly payments until the end of the contributions payment period.

(2) The final monthly payment is due in the last month of the financial year to which the faster accrual election relates.

(3) P is taken to revoke a faster accrual election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

CHAPTER 3 Revocation and refund

Revoking a faster accrual election

27.—(1) A member (P) may revoke a faster accrual election at any time before the end of the contributions payment period.

(2) P is taken to revoke a faster accrual election if P leaves pensionable service in the employment to which the election relates before the end of the contributions payment period.

(3) If P revokes or is taken to revoke a faster accrual election and P is not entitled to be repaid the balance of contributions under regulation 183—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) P’s active member’s account (or if P has left all pensionable service, P’s deferred member’s account or pensioner member’s account) must be credited with an amount determined by the scheme manager.

(4) If P revokes or is taken to revoke a faster accrual election and P is entitled to be repaid the balance of contributions under regulation 183—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) P’s rights under this scheme are extinguished.

(5) A revocation must be by written notice to the scheme manager.

(6) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

Member leaves all pensionable service before qualifying for retirement benefits

28.—(1) This paragraph applies if a member (P) leaves all pensionable service before qualifying for retirement benefits in respect of that service.

(2) If this paragraph applies, any monthly payments made before the last day of pensionable service must be refunded to P.

PART 4 Election to buy out the standard reduction

CHAPTER 1 General

When the standard reduction applies

29.—(1) The standard reduction applies in respect of a member (P) to a maximum of 3 years from age 65 to P’s normal pension age (“the maximum”).

(2) If a retirement pension becomes payable to P on or after P reaches 65, the standard reduction applies to a proportion of the time left until P reaches normal pension age, as determined by the scheme manager.

Determination of the buy-out value

30.—(1) The buy-out value is an amount determined by the scheme manager.

(2) If an additional pension election or a faster accrual election is subsequently made in respect of a person (P), the scheme manager may—

(a) re-determine the buy-out value; and

(b) send a written notice to P stating the re-determined buy-out value.

CHAPTER 2 Making a buy-out election

Eligible to make buy-out election

31.—(1) A member (P) who has a normal pension age over 65 may elect to pay contributions to buy out the standard reduction (“buy-out election”) for a period of up to 3 years.

(2) A buy-out election has effect from the day on which the scheme manager accepts the election.

(3) A buy-out election ceases to have effect when the earliest of the following occurs—

(a) P reaches normal pension age;

(b) a retirement pension other than a phased retirement pension becomes payable to P;

(c) P revokes the election or is taken to revoke the election.

(4) A buy-out election may only be made within 6 months after P enters pensionable service under this scheme.

(5) When making a buy-out election, P must be—

(a) in pensionable service; and

(b) under normal pension age.

(6) P may by written notice to the scheme manager vary a buy-out election if P’s normal pension age changes before a retirement pension becomes payable to P.

Making a buy-out election

32.—(1) A buy-out election made by a member (P) must state the number of years in respect of which the standard reduction is to be bought out.

(2) A buy-out election must be made by written notice to the scheme manager.

(3) The notice of election must specify—

(a) if P is in more than one eligible employment, the name of the employer who is to deduct the contributions;

(b) P’s name;

(c) P’s date of birth;

(d) P’s normal pension age;

(e) the date on which P entered pensionable service;

(f) P’s annual rate of pensionable earnings.

(4) The scheme manager may ask P to provide further information.

Accepting a buy-out election

33.—(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (P).

(2) The notice must state the buy-out value.

(3) A buy-out election is accepted when P receives notice that the scheme manager has accepted the election.

CHAPTER 3 Payment of buy-out contributions

Determination of contributions payable

34.—(1) The scheme manager must determine the amount of the monthly payments to be paid in respect of a buy-out election.

(2) The scheme manager—

(a) may determine the amount of the monthly payments by reference to the number of years stated in the buy-out election and the length of the contributions payment period; and

(b) may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during the contributions payment period.

(3) Unless the scheme manager re-determines the amount, monthly payments following a gap in service not exceeding 5 years are the same as before the gap.

Payment of buy-out contributions

35.—(1) P must—

(a) make the first monthly payment within 2 months after the end of the month in which a buy-out election is accepted; and

(b) continue to make the monthly payments until the end of the contributions payment period.

(2) The final monthly payment is due in the month before the buy-out period has effect.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay the re-determined amount from the beginning of the next financial year.

(4) P is taken to revoke a buy-out election if—

(a) a monthly payment is missed; and

(b) the payment is not made within 3 months after P receives a written demand from the scheme manager.

Monthly payments during gap in service

36.—(1) A member (P) who has a gap in service during the contributions payment period may choose to resume monthly payments on re-entering pensionable service.

(2) P is taken to revoke a buy-out election if P’s gap in service exceeds 5 years.

CHAPTER 4 Revocation and refund

Revoking a buy-out election

37.—(1) A member (P) may revoke a buy-out election at any time before the end of the contributions payment period.

(2) If P revokes a buy-out election or is taken to revoke a buy-out election—

(a) P’s monthly payments cease to be payable on the date of revocation; and

(b) when a retirement pension becomes payable to P, the standard reduction applies to a proportion of the maximum as determined by the scheme manager.

(3) In determining the proportion, the scheme manager must take into account—

(a) the number of monthly payments made; and

(b) the number of years stated in the buy-out election.

(4) If P revokes the election or is taken to revoke a buy-out election, P may not make a subsequent buy-out election.

(5) A revocation must be by written notice to the scheme manager.

(6) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

Member leaves all pensionable service before qualifying for retirement benefits

38.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before qualifying for retirement benefits in respect of that service.

(2) If this paragraph applies, any monthly payments made before the last day of pensionable service must be refunded to P.

Regulation 214

SCHEDULE 3 Transitional provisions

PART 1 Interpretation

Interpretation

1.  In this Schedule—

“closing date”, in relation to a transition member, means—

(a)

for a member who is not a protected member, the scheme closing date; or

(b)

for a tapered protection member, the closing date for that member;

“exception” means an exception to section 18(1) of the Act;

“existing scheme rules” means the provisions of the existing scheme, an existing club scheme or an existing public service scheme;

“full protection member”, in relation to the existing scheme, has the meaning given in Part 2;

“protected member” means a full protection member or tapered protection member;

“protection period”—

(a)

for a full protection member, has the meaning given in Part 2;

(b)

for a tapered protection member, has the meaning given in Part 3;

“public service scheme” means a scheme under section 1 of the Act;

“scheme closing date”, in relation to the existing scheme, means 31st March 2015;

“tapered protection member”, in relation to the existing scheme, has the meaning given in Part 2;

“tapered protection closing date” has the meaning given in paragraph 5;

“transition date” means—

(a)

for a tapered protection member of an existing scheme, the day after the tapered protection closing date;

(b)

for a transition member by virtue of the application of paragraph 13 who is not a protected member of an existing scheme, the day after the scheme closing date.

Meaning of “active member of existing scheme”

2.—(1) For the purpose of this Schedule, a person (P) is an active member of the existing scheme on a given date if on that date—

(a) P is in pensionable service under the existing scheme; or

(b) P is on a gap in service not exceeding 5 years.

(2) A person who is an active member of the existing scheme on the scheme closing date ceases to be an active member of that scheme on the earlier of—

(a) the day on which a retirement pension (other than a phased retirement pension) becomes payable to P under the existing scheme; or

(b) the day on which P begins a gap in service which—

(i) begins after the scheme closing date; and

(ii) exceeds 5 years.

Meaning of “continuity of service”

3.  A transition member (P) has continuity of service unless P has a gap in service exceeding 5 years which—

(a) begins on or before the closing date; and

(b) ends on the day on which P becomes an active member of this scheme.

Gap in service after scheme closing date

4.  In relation to any period after the scheme closing date, a person (P) is not on a gap in service while P is in pensionable service under—

(a) another public service scheme; or

(b) a new public body pension scheme(6).

Meaning of “closing date” for a tapered protection member

5.—(1) The closing date for a tapered protection member is a date between 31st May 2015 and 31st January 2022 (inclusive) determined by the scheme manager by reference to a table published for that purpose.

(2) The closing date must fall on the last day of a month.

PART 2 Exceptions for full protection members

Meaning of ―full protection member

6.—(1) A person (P) is a full protection member of an existing scheme on the scheme closing date if—

(a) on that date, P is an active member of the existing scheme;

(b) on 31st March 2012, P was an active member of the existing scheme; and

(c) unless P dies, P would reach normal pension age under the existing scheme before 2nd April 2022.

(2) P ceases to be a full protection member when P ceases to be an active member of the existing scheme.

Exception for full protection member during protection period

7.—(1) The protection period for a full protection member (P) is the period which—

(a) begins on the day after the scheme closing date; and

(b) ends when P ceases to be a full protection member.

(2) Section 18(1) of the Act does not apply to P during the protection period.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme; and

(b) benefits are to be provided under that scheme to or in respect of P in relation to that pensionable service.

Full protection member not eligible to join this scheme

8.  While a person (P) is a full protection member, P is not eligible to be a member of this scheme.

PART 3 Exceptions for tapered protection members

Meaning of “tapered protection member”

9.—(1) A person (P) is a tapered protection member of an existing scheme on the scheme closing date if—

(a) on that date, P is an active member of the existing scheme;

(b) on 31st March 2012, P was an active member of the existing scheme; and

(c) unless P dies, P would reach normal pension age under the existing scheme between 2nd April 2022 and 30th September 2025 (inclusive).

(2) P ceases to be a tapered protection member on whichever of the following days occurs first—

(a) P’s closing date; or

(b) the day on which P ceases to be an active member of the existing scheme.

Exception for tapered protection members during protection period

10.—(1) The protection period for a tapered protection member is the period which—

(a) begins on the day after the scheme closing date; and

(b) ends when P ceases to be a tapered protection member.

(2) Section 18(1) of the Act does not apply to P during the protection period.

(3) During the protection period—

(a) P’s pensionable service is pensionable service under the existing scheme; and

(b) benefits are to be provided under that scheme to or in respect of P in relation to that pensionable service.

Tapered protection member not eligible to join this scheme

11.  While a person (P) is a tapered protection member, P is not eligible to be a member of this scheme.

PART 4 Transition members becoming active members of this scheme

Meaning of “transition member”

12.  A person to whom paragraph 13 applies is a transition member.

Active members of the existing scheme

13.  This paragraph applies to a person (P) if—

(a) P is a member of the existing scheme by virtue of his or her pensionable service under that scheme before the transition date; and

(b) P is a member of this scheme by virtue of his or her pensionable service under this scheme on or after the transition date.

Transition members with continuity of service

14.  A transition member (P) who has continuity of service becomes an active member of this scheme—

(a) if P is in pensionable service on the transition date, on that date; or

(b) on re-entering pensionable service after the transition date.

Transition members without continuity of service

15.  A transition member (P) who does not have continuity of service becomes an active member of this scheme when P re-enters pensionable service on or after the transition date.

PART 5 Receipt of club transfer values

Application of Part

16.—(1) This Part applies to a member who applies under these Regulations for a club transfer value to be accepted from an existing club scheme (“the sending scheme”).

(2) This Part does not apply if—

(a) the person (P) has reached 75;

(b) retirement benefits have become payable to P under this scheme or under the sending scheme; or

(c) the sending scheme was a money purchase arrangement to which P’s previous employer made no contribution.

Member with full protection

17.—(1) This paragraph applies if a full protection member of the existing scheme applies to the scheme manager for a club transfer value to be accepted.

(2) On receipt of the application, the scheme manager must accept payment of the club transfer value if it is offered.

(3) The club transfer value must be paid into the existing scheme.

Member with tapered protection or no protection

18.—(1) This paragraph applies if a tapered protection member or a transition member who is not a protected member applies to the scheme manager for a club transfer value to be accepted.

(2) On receipt of the application, the scheme manager must accept payment of the club transfer value if it is offered.

(3) Payment of the club transfer value—

(a) must be accepted into the existing scheme if the payment relates to pensionable service before the transition date;

(b) must be accepted into this scheme if the payment relates to pensionable service on or after the transition date.

PART 6 Payment of benefits to transition members

CHAPTER 1 General

Reaching normal pension age

19.—(1) If a transition member (P) who applies for payment of retirement benefits under both schemes has reached normal pension age under the existing scheme but has not reached normal pension age under this scheme, the benefits payable under this scheme are to be actuarially reduced.

(2) If P has not reached normal pension age under the existing scheme or under this scheme, the benefits payable under both schemes are to be actuarially reduced.

(3) If P has reached normal pension age—

(a) under the existing scheme, the benefits payable under that scheme are to be actuarially enhanced under the existing scheme rules (if applicable); or

(b) under both schemes, the benefits payable under both schemes are to be actuarially enhanced (if applicable).

Application of existing scheme rules

20.—(1) The existing scheme rules apply in relation to the calculation of benefits payable in respect of pensionable service under the existing scheme.

(2) The existing scheme rules apply in relation to the payment of additional pension with a retirement pension under the existing scheme.

Determination of final salary

21.  For the purpose of calculating benefits payable under the existing scheme to or in respect of a transition member with continuity of service, the member’s final salary is determined by reference to Schedule 7 to the Act.

Annual rate of pension

22.  The annual rate of pension payable to a transition member is found by adding—

(a) the annual rate of pension payable under the existing scheme; and

(b) the annual rate of pension payable under this scheme.

CHAPTER 2 Application for payment of benefits

Application for payment of age retirement pension

23.—(1) When a transition member (P) applies for payment of an age retirement pension under this scheme, P must also apply under regulation E36 of the 2005 Regulations for payment of retirement benefits in respect of pensionable service under the existing scheme.

(2) A transition member (P) who has not reached normal pension age under this scheme may apply under regulation 159 for payment of age retirement benefits in respect of P’s pensionable service under the existing scheme without applying for payment of P’s retirement benefits in respect of pensionable service under this scheme.

Application for payment of phased retirement pension

24.—(1) When a transition member (P) makes a phased retirement application under this scheme, P may also elect under regulation C4B of the 2005 Regulations(7) to receive phased retirement benefits in respect of pensionable service under the existing scheme.

(2) P may elect to receive phased retirement benefits under the existing scheme without making a phased retirement application under this scheme.

(3) The phased retirement proportion specified in a phased retirement application under this scheme may be different from the fraction of reckonable service specified in an election under the existing scheme.

Application for payment of premature retirement pension

25.—(1) When a transition member (P) applies for payment of a premature retirement pension under this scheme, P must also apply under regulation E36 of the 2005 Regulations for payment of retirement benefits in respect of pensionable service under the existing scheme.

Application for payment of early retirement pension

26.  When a transition member (P) applies for payment of an early retirement pension under this scheme, P must also apply under regulation E36 of the 2005 Regulations for payment of retirement benefits in respect of pensionable service under the existing scheme.

Application for payment of ill-health pension

27.  A transition member (P) who applies for payment of an ill-health pension under this scheme is entitled to receive any benefits in respect of pensionable service in the existing scheme as part of the ill-health pension payable under this scheme.

Entitlement to payment of total incapacity pension

28.  A transition member who becomes entitled to payment of a total incapacity pension under this scheme is not entitled to payment of a total incapacity pension under regulation E10A of the 2005 Regulations(8).

Calculation of retirement benefits after ill-health pension ceases to be payable

29.—(1) This paragraph applies to a transition member (P) if—

(a) P is entitled to receive benefits payable under this scheme; and

(b) P was in receipt of a previous ill-health pension following an application which was received by the Scottish Ministers before 1st April 2007.

(2) When this paragraph applies, regulation E17 of the 2005 Regulations applies with the modification that “(including pensionable service under the Teachers’ Pension Scheme (Scotland) Regulations 2014)” is inserted after “reckonable service”.

Reduction of ill-health pension and total incapacity pension

30.—(1) This paragraph applies to a transition member (P) if—

(a) P is entitled to receive benefits payable under this scheme, including total incapacity pension; and

(b) P was in receipt of previous ill-health pension following an application which was received by the Scottish Ministers before 1st April 2007.

(2) When this paragraph applies, the scheme manager may determine after taking advice from the scheme actuary that either or both of the following benefits are reduced—

(a) P’s total incapacity benefits under this scheme;

(b) part of P’s ill-health benefits under regulation E17 of the 2005 Regulations (including any by reference to paragraph 29).

Entitlement to payment of a short-service serious ill-health grant

31.  A transition member who becomes entitled to payment of a short-service serious ill-health grant under this scheme is not entitled to payment of a short-service serious ill-health grant under regulation E21 of the 2005 Regulations.

Application for payment of a surviving adult pension

32.—(1) When the surviving adult of a transition member applies for payment of a surviving adult pension under this scheme, the surviving adult must also apply under regulation E36 of the 2005 Regulations for payment of an adult pension under the existing scheme.

(2) The enhancement of a surviving adult pension—

(a) is applied under regulation 142; but

(b) is not applied under regulation E31 of the 2005 Regulations.

Calculation of a surviving adult pension of a surviving adult of a transition member

33.—(1) This paragraph applies to a surviving adult pension payment to a surviving adult of a transition member.

(2) The short-term rate of surviving adult pension—

(a) is payable under this scheme; but

(b) is not payable under regulation E28 of the 2005 Regulations.

Long-term rate of a surviving adult pension of a surviving adult of a transition member

34.  The rate of a surviving adult pension of a surviving adult (S) of a transition member is the sum of—

(a) the surviving adult pension under this scheme;

(b) the adult pension under the 2005 Regulations;

(c) any enhancement S is entitled to under regulation 139; and

(d) any enhancement S is entitled to under Schedule 6 to the 2005 Regulations.

Reduction of surviving adult pension

35.—(1) This paragraph applies if the surviving adult (S) of a transition member applies—

(a) for payment of a surviving adult pension under this scheme; and

(b) for payment of an adult pension under the 2005 Regulations.

(2) When this paragraph applies, the scheme manager may determine after taking advice from the scheme actuary that either or both of the following enhancements of surviving adult pension benefits are reduced—

(a) S’s enhancement of a surviving adult pension under regulation 139;

(b) S’s enhancement of a surviving adult pension under Schedule 6 to the 2005 Regulations.

Application for payment of an additional (surviving adult) pension

36.  When the surviving adult of a transition member applies for payment of an additional (surviving adult) pension under this scheme, the surviving adult must also apply under regulation E36 of the 2005 Regulations for payment of an additional pension under the existing scheme.

Application for payment of a child pension

37.—(1) When the eligible child of a transition member applies for payment of a child pension under this scheme, the eligible child must also apply under regulation E36 of the 2005 Regulations for payment of a child pension under the existing scheme.

(2) The enhancement of a child pension—

(a) is applied under regulation 149; but

(b) is not applied under regulation E31 of the 2005 Regulations.

Calculation of a child pension of an eligible child of a transition member

38.—(1) This paragraph applies to a child pension payment to a child of a transition member.

(2) The short-term rate of child pension—

(a) is payable under this scheme; but

(b) is not payable under regulation E29 of the 2005 Regulations.

Rate of a child pension of an eligible child of a transition member

39.  The long-term rate of a child pension of an eligible child (C) of a transition member is the sum of—

(a) the child pension under this scheme;

(b) the child pension under the 2005 Regulations;

(c) any enhancement C is entitled to under regulation 149; and

(d) any enhancement C is entitled to under Schedule 6 to the 2005 Regulations.

Reduction of child pension

40.—(1) This paragraph applies if the eligible child (C) of a transition member applies—

(a) for payment of a child pension under this scheme; and

(b) for payment of a child pension under the 2005 Regulations.

(2) When this paragraph applies, the scheme manager may determine after taking advice from the scheme actuary that either or both of the following enhancements of child benefits are reduced—

(a) C’s enhancement of a child pension under regulation 149; and

(b) C’s enhancement of a child pension under Schedule 6 to the 2005 Regulations.

Application for payment of a death in service grant

41.—(1) The beneficiary of a transition member (D) who is entitled to a death in service grant under this scheme is not entitled to a death in service grant under regulation E24 of the 2005 Regulations.

(2) The amount of the death in service grant paid under this scheme must be reduced by the amount of any retirement lump sum paid under regulation E8 of the 2005 Regulations in respect of D’s pensionable service under the existing scheme, other than one already recovered.

Application for payment of a death out of service grant

42.—(1) When the beneficiary of a transition member applies for payment of a death out of service grant under this scheme, the beneficiary must also apply under regulation E36 of the 2005 Regulations for payment of a death out of service grant under the existing scheme.

(2) The amount of the death out of service grant paid under this scheme must be reduced by the amount of any retirement lump sum paid under regulation E8 of the 2005 Regulations in respect of D’s pensionable service under the existing scheme, other than one already recovered.

Application for supplementary death grant

43.  The beneficiary of a transition member who is entitled to a supplementary death grant under this scheme is not entitled to a supplementary death grant under the existing scheme.

Application for payment of benefits for pension credit members

44.—(1) If a transition member (P) has not reached normal pension age under the existing scheme when P applies for payment of a pension credit retirement pension under this scheme, P must also apply for payment of benefits in respect of pensionable service under the existing scheme.

(2) If P has reached normal pension age under the existing scheme, P may apply for payment of a pension credit retirement pension in respect of pensionable service under—

(a) either the existing scheme or this scheme; or

(b) both the existing scheme and this scheme.

PART 7 Provision in relation to existing scheme

Election to opt out of existing scheme continues to have effect

45.  A person (P) is taken to have opted out of this scheme in relation to an eligible employment if, on the scheme closing date—

(a) P is not a protected member of the existing scheme; and

(b) an election to opt out of the existing scheme in relation to that employment has effect.

Qualifying for retirement benefits under existing scheme

46.  In determining whether a transition member with continuity of service is qualified for retirement benefits under the existing scheme, the member’s qualifying service includes the total of—

(a) the member’s qualifying service under the existing scheme; and

(b) the member’s qualifying service under this scheme.

Nomination continues to have effect

47.  A nomination under regulation E24 (death grants), E26A (nomination of partner) or E27 (nomination of other adult beneficiary) of the 2005 Regulations(9) has effect as if made under Part 6 of these Regulations.

Repayment of balance of contributions

48.  An application by a transitional member (P) for the repayment of the balance of P’s contributions under regulation 183 is also an application for any repayment of the balance of contributions due to P under regulations C11 to C13 of the 2005 Regulations.

Residential emoluments

49.  Where the money value of residential benefits in kind of a transition member (P) is treated as part of P’s contributable salary for the purposes of regulation C1(1)(a) of the 2005 Regulations, this has effect as if an application had been made under regulation 35.

Transfer payments in respect of the existing scheme

50.  A transfer payment made in respect of a transition member by the scheme manager must be in relation to any benefits accrued in this scheme and any service accrued under the existing scheme.

Election to pay contributions by a person serving in a reserve force

51.—(1) An election by a transition member (P) to pay contributions made under regulation C9 of the 2005 Regulations has effect as if made under regulation 25.

(2) On becoming an active member of this scheme, P does not begin to accrue service which counts for the purpose of benefits in respect of P’s permanent service for the purpose of regulation C9(2) of the 2005 Regulations.

(1)

1980 c.44.

(2)

S.I. 1995/2814, to which there are amendments not relevant to these Regulations.

(3)

1992 c.37.

(4)

1989 c.39.

(5)

S.I. 1977/1360.

(6)

See section 30(5) of the Act for the meaning of “new public body pension scheme”.

(7)

Regulation C4B was added by S.S.I. 2007/189 and amended by S.S.I. 2008/227.

(8)

Regulation E10A was added by S.S.I. 2007/189 and amended by S.S.I. 2008/227 and S.S.I. 2014/69.

(9)

Regulation E26A was added by S.S.I. 2007/189.