The Teachers' Pensions Regulations 2010

Contributable salary E+W+S

15.—(1) The contributable salary of a person (T) is the total of—

(a) the amounts mentioned in paragraph (2), if T is a school teacher for the purposes of section 122 of EA 2002, or

(b) the amounts mentioned in paragraph (3) in any other case

but (in either case) does not include any amounts mentioned in paragraph (4).

(2) The amounts are—

(a) the amount paid to T by T's employer in respect of T's pensionable employment in accordance with any pay order;

(b) the amount paid by T's employer to T in respect of T's pensionable employment in satisfaction of any contractual liability arising out of sick leave or maternity, paternity, parental or adoption leave;

(c) the amount paid by T's employer to T in respect of T's pensionable employment in satisfaction of any statutory liability arising out of sick leave or maternity, paternity, or adoption leave;

(d) the amount equal to any part of T's salary which T has given up the right to receive pursuant to a salary sacrifice arrangement.

(3) The amounts are—

(a) the amount of the salary, wages, fees and other payments paid to T for T's own use by T's employer in respect of T's pensionable employment;

(b) the amounts mentioned in paragraph (2)(b) to (d);

(c) the amount of any payment made to T—

(i) where the payment is by way of bonus made as part of a pay settlement which applies to all persons, or to all persons of a particular class or description, employed at the institution at which T is employed, or

(ii) where the payment is calculated by reference to T's performance or the performance of the institution at which T is employed and is paid pursuant to arrangements under which T's employer (E) makes payments calculated by reference to the performance of E's employees or the performance of the institution.

(4) The amounts are—

(a) any benefit in kind or the money value of such a benefit other than one which falls within regulation 16 (contributable salary - residential accommodation);

(b) the amount of any payment by way of bonus other than a payment falling within paragraph (3)(c));

(c) the amount of any payment in respect of overtime;

(d) the amount of any payment by way of travelling or expense allowance;

(e) the amount of any payment in consideration for the loss of, or the agreement to give up the right to, paid leave under T's contract of employment;

(f) the amount of any payment in lieu of notice to terminate T's contract of employment;

(g) the amount of any payment by way of an honorarium;

(h) the amount of any payment in respect of any duties that are not part of T's duties in T's capacity as a teacher;

(i) if T is employed as mentioned in paragraph 12 of Schedule 2 (teacher in a European School), any amount not payable by, or money value of a benefit in kind not attributable to, the Secretary of State.

(5) This regulation is subject to regulation 17 (cap on contributable salary).

(6) In this regulation—

“pay order” means an order under section 122 of EA 2002 for the time being in force and includes any document referred to in such an order;

“salary sacrifice arrangement” means—

(a)

if T is a school teacher for the purposes of section 122 of EA 2002, an arrangement specified in any pay order under which T gives up the right to receive part of T's gross salary in return for T's employer's agreement to provide T with benefits in kind as specified in the pay order;

(b)

in any other case, an arrangement of the type mentioned in sub-paragraph (a) in which T's employer's agreement is to provide T with benefits in kind of an identical description to those specified in any pay order for the time being in force.