The Teachers’ Superannuation (Scotland) (Miscellaneous Amendments) Regulations 2014

Election for employment not to be pensionableB7

1

A teacher may make an election under this regulation in respect of a particular pensionable employment by giving written notice to the employer.

2

An election has effect from the first day of the month after the month in which the notice is given.

3

But—

a

if the notice is given within 3 months after the start of employment in a capacity mentioned in Schedule 2, the election has effect from the first day of that employment; and

b

if the notice is given within 3 months after the date on which arrangements made by the employer under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of the 2008 Act have effect in respect of that employment, the election has effect from that date.

4

An election ceases to have effect from the earlier of—

a

the date on which an election under regulation B8 (resumption of pensionable status) has effect; and

b

the date on which arrangements made by the employer under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of the 2008 Act have effect in respect of the employment.

Resumption of pensionable statusB8

1

A teacher mentioned in paragraph (2) may make an election under this regulation in respect of a particular employment by giving written notice to the Scottish Ministers, save that a teacher mentioned in paragraph (2)(b) or (c) may only make an election before the automatic enrolment date in relation to that teacher in respect of that employment.

2

The teachers are—

a

a teacher in, or about to enter, employment in a capacity mentioned in Schedule 2 who has previously made an election under regulation B7 (election for employment not to be pensionable);

b

a teacher in part-time employment which is not pensionable by virtue of regulation B2(3);

c

a teacher in part-time or full-time employment which is not pensionable by virtue of regulation B6(5).

3

An election has effect from the first day of the month after the month in which the notice is given.

4

But where the election is made by a teacher mentioned in paragraph (2)(a) who gives notice before or within 3 months after the start of employment in a capacity mentioned in Schedule 2, the election has effect from the first day of that employment.

Backdating elections for employment to be pensionableB8A

1

Where—

a

an election under regulation B8 (resumption of pensionable status) is made by a teacher in respect of non-pensionable part-time employment or in non-pensionable post-retirement employment;

b

(except where the election is made by a teacher in non-pensionable post-retirement employment) at the same time as notice of the election is given the teacher making the election and the teacher’s employer request that the Scottish Ministers backdate the election (by making a determination in accordance with paragraph (2)(b)) and the Scottish Ministers agree to do so;

c

the teacher making the election and the teacher’s employer inform the Scottish Ministers that they agree that contributions in accordance with sub-paragraph (d) be paid; and

d

the sum mentioned in paragraph (6) together with interest at the standard rate is paid to the Scottish Ministers,

the teacher’s relevant employment during the back period is to be treated as pensionable employment.

2

Where the election is made by a teacher in non-pensionable part-time employment—

a

“relevant employment” means non-pensionable part-time employment; and

b

the “back period” means the period beginning on a date determined by the Scottish Ministers and ending on the day on which the election has effect.

3

The date determined for the purpose of paragraph (2)(b) must be such that the back period does not begin before or during—

a

any period of the teacher’s opted-out employment; or

b

any period during which the teacher was employed in relevant employment by an employer who does not join in the request mentioned in paragraph (1)(b) or inform the Scottish Ministers as mentioned in paragraph (1)(c).

4

Where the election is made by a teacher in non-pensionable post-retirement employment—

a

“relevant employment” means non-pensionable post-retirement employment; and

b

the “back period” means the period beginning on a date agreed between the teacher and the teacher’s employer and ending on the day on which the election has effect.

5

The date agreed for the purposes of paragraph (4)(b)—

a

must not be before 1st October 2001; and

b

must be such that the back period does not begin before or during—

i

any period of the teacher’s opted-out employments; or

ii

any period during which the teacher was employed in relevant employment by an employer who does not inform the Scottish Ministers as mentioned in paragraph (1)(c).

6

The sum is a sum equal to the contributions (due from both the teacher making the election and the teacher’s employer or employers) which would have been payable to the Scottish Ministers if the teacher’s relevant employment during the back period had been pensionable employment.

7

Where the election is made by a teacher with mixed service, the teacher’s relevant employment during the back period is to be treated for the purpose of these Regulations as occurring after the post-break employment start date.

8

Where the election is made by a 2007 or later entrant, the teacher’s relevant employment during the back period is to be treated for the purposes of these Regulations as occurring after 31st March 2007.

9

In this regulation—

• “non-pensionable part-time employment” means employment which is not pensionable by virtue of regulation B2(3);

• “non-pensionable post-retirement employment” means employment which is not pensionable by virtue of regulation B6(5);

• “opted-out employment” means—

  1. a

     employment in a capacity mentioned in Schedule 2 which was not pensionable by virtue of an election under regulation B7 (election for employment not to be pensionable);

  2. b

     employment in a capacity mentioned in regulation B4 which ceased to be pensionable by virtue of an election under regulation B7 (election for employment not to be pensionable),

and where employment falls within paragraph (a) or (b) and is also non-pensionable part-time employment or non-pensionable post-retirement employment, that employment is opted-out employment.

Deduction by employers of contributions, etc. from salary, payment in default and interestC15

1

The employer of a teacher in pensionable employment must deduct from that teacher’s salary each month the contributions and instalments mentioned in paragraph (3).

2

If any contributions or instalments referred to in paragraph (1) are not deducted in the appropriate month in accordance with that paragraph, the employer may deduct such contributions or instalments from the teacher’s salary in any subsequent month (but this paragraph does not affect regulation H6 (payment by employers to Scottish Ministers)).

3

The contributions and instalments are—

a

the contributions payable under regulation C3(2);

b

any contributions payable under regulation C3(3);

c

any additional contributions payable as a result of an election under regulation C4B;

d

any additional contributions payable by virtue of regulation C7 or C10; and

e

any instalments payable under regulation C14(3).

4

Where a teacher has ceased to be employed by an employer and, at the time when he or she ceased to be employed by that employer—

a

any deduction required by paragraphs (1) to (3) to be made by the employer has not been made; and

b

despite regulation H6(1)(a) (payment by employers to Scottish Ministers), a corresponding amount has not been paid to the Scottish Ministers pursuant to that regulation,

any amount remaining due, together with interest at the appropriate rate (compounded with monthly rests) from the due date to the date of payment, is to be paid by the teacher to the Scottish Ministers on receipt of a written demand, but the Scottish Ministers may in any case waive the payment of the whole or any part of such interest.

5

In paragraph (4)—

a

the “appropriate rate” is—

i

4 per cent per annum in respect of any period before 1st May 2014;

ii

the standard rate in respect of any other period; and

b

the “due date” is the 8th day after the end of the month in which the deduction required by paragraph (1) should have been made.

6

Where a teacher on becoming entitled to a lump sum under this regulation on or before 5th April 2011 has attained the age of 75, the teacher—

a

will cease to be entitled to a lump sum; and

b

will instead be entitled to have his or her pension increased by such amount as the Scottish Ministers may, after taking advice from the scheme actuary, determine.

Short-service serious ill-health grantE21

1

This regulation applies to a teacher if—

a

he or she was in pensionable employment for at least 12 months;

b

he or she is not qualified for retirement benefits or qualified for retirement benefits following further employment;

c

he or she ceases to be in pensionable employment because he or she satisfies the incapacity condition;

d

his or her application under regulation E36 (payment of benefits) is made within 12 months after the date on which his or her pensionable employment ceases; and

e

he or she has a life expectancy of less than a year.

2

A short-service serious ill-health grant is payable to a teacher to whom this regulation applies.

3

But no grant may be paid to a teacher who is 75 or over.

4

The amount of the grant is the teacher’s pensionable salary/12 x the teacher’s reckonable service (in years and fractions of a year).

5

For the purposes of this regulation, a teacher satisfies the incapacity condition if the teacher is incapacitated and is likely to be incapacitated permanently.

Short-service annuity: unauthorised paymentsE21A

1

This regulation applies where the repayment of a teacher’s contributions under regulation C11 is not made because of regulation J6C (general prohibition on unauthorised payments) but where the teacher would otherwise be entitled to repayment of contributions.

2

A short-service annuity is payable to the teacher from the date specified by the teacher in his or her application which must be no earlier than 6 weeks after the date on which his or her application is made.

3

Except as otherwise provided in these Regulations, the annuity is payable for life.

4

The annual rate of the annuity is the actuarial equivalent of the contributions which would have been repaid.

5

The amount of the grant under paragraph (3) is 3/80ths x the teacher’s pensionable salary x the teacher’s reckonable service (in years and fractions of a year) less the amount of any retirement lump sum or short service serious ill health grant.

4A

But subparagraphs (a) and (b) of paragraph (4) do not apply if—

a

while the teacher was subject to the previous scheme, he or she was employed in comparable British service;

b

the teacher entered pensionable employment—

i

immediately after the end of the employment; or

ii

on or before the teacher’s 60th birthday in the case of a pre-2007 entrant or the teacher’s 65th birthday in any other case; and

c

the teacher has not applied for payment of any benefit.

Meaning of “standard rate” of interestH2A

Where under any provision of these Regulations interest is required to be paid at the standard rate, the rate of interest is the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury.

and before 1st May 2014; and

c

the standard rate in relation to all amounts and contributions payable in relation to pensionable employment on or after 1st May 2014

Reduction of benefits: annual allowance and lifetime allowance chargeJ6B

1

This regulation applies where—

a

the lifetime allowance charge under section 214 of the 2004 Act4 arises because a benefit becomes payable to a teacher and the teacher and the Scottish Ministers are jointly and severally liable to the charge; or

b

the annual allowance charge under section 227 of the 2004 Act arises in respect of a teacher who serves a notice under section 238A of that Act5.

2

The Scottish Ministers must pay the charge referred to in sub-paragraph (a) or (b) of paragraph (1) (as the case may be).

3

The amount of the benefit must be reduced to reflect the amount of the charge in such manner as the Scottish Ministers are to determine, after taking advice from the scheme actuary.

c

in respect of every pension to be provided, whether the annual rate of the pension—

i

is to be fixed;

ii

is to vary in accordance with the Index;

iii

is to increase yearly by a specified percentage;

iv

where the authorised provider offers pensions which vary in accordance with an index of prices other than the Index, is to vary in accordance with the index specified in the notice; or

v

is to be an Investment Linked Pension.

d

in respect of every pension to be provided, whether the annual rate of the pension—

i

is to be fixed;

ii

is to vary in accordance with the Index;

iii

is to increase yearly by a specified percentage;

iv

where the authorised provider offers pensions which vary in accordance with an index of prices other than the Index, is to vary in accordance with the index specified in the notice; or

v

is to be an Investment Linked Pension.