The Teachers’ Pensions Regulations 2010

Abatement of retirement pension during further employment

64.—(1) This regulation applies while a person (P) falling within paragraph (2) is employed—

(a) in pensionable employment, comparable British service or employment which would have been pensionable but for—

(i) P having made an election under regulation 9 (election for employment not to be pensionable), or

(ii) P having reached the age of 75,

(b) in part-time employment in a capacity described in paragraphs 1,2 and 4 to 9 of Schedule 2 which is not pensionable employment by reason of the fact that the employment falls within regulation 7(6), but has not made an election under regulation 10(1) (election for employment to be pensionable), or

(c) in full-time employment which is not pensionable employment by reason of the fact that the employment falls within regulation 7(8), but has not made an election under regulation 10(2)(d).

(2) P falls within this paragraph if—

(a) retirement benefits have become payable to P, or

(b) P has elected to receive phased retirement benefits, and neither paragraph (6) nor paragraph (7) of regulation 61 (multiplication of pension by appropriate factor) apply in relation to the phased retirement pension.

(3) But this regulation does not apply in respect of a pension (or part of a pension) which is payable to the person by reason of Case E applying to the person’s reckonable service.

(4) If the person is concurrently both in employment falling within paragraph (1)(a) and in employment falling within paragraph (1)(b), this regulation applies only in respect of the former.

(5) Where this regulation applies—

(a) if the amount of the person’s salary in the employment during the tax year equals or exceeds the person’s adjusted salary of reference in any tax year, no pension is to be paid in that tax year; and

(b) in any other case, the pension to which the person is entitled in any tax year is to be reduced if necessary so as to secure that the pension paid during that tax year does not exceed (A x P/Q),

where—

• A is the amount by which the person’s salary in the employment during the tax year falls short of that person’s adjusted salary of reference,

• P is the full annual rate of the person’s pension during the tax year in question as increased under PIA 1971 but disregarding the effect of paragraphs (10) or (11), and

• Q is the total of—

  (i)

  the full annual rate of the person’s pension,

  (ii)

  the full annual rate of compensation payable under regulation 7 (mandatory compensation for premature retirement) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997(1), and

  (iii)

  the full annual rate of all compensation payable under regulation 12 (discretionary compensation for premature retirement) of those Regulations,

for the tax year in question, as increased under PIA 1971.

(6) In paragraph (5), the adjusted salary of reference is, or where the person’s previous employment was part time, the full time equivalent of—

(a) the highest salary taken into account in determining the person’s average salary under regulation 37 or 38, multiplied by the adjustment factor, or

(b) (if applicable) the highest salary taken into account in determining the person’s average salary under regulation 37 or 38 relating to the person’s further employment, multiplied by the adjustment factor,

whichever is the higher.

(7) For the purpose of paragraph (6) the adjustment factor is the amount (if any) by which, immediately before the first day of the employment, any salary referred to in paragraph (6) would have increased if it had been the annual rate of an official pension as defined in section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the same date as—

(a) the last day of employment at that salary, in a case where the person’s average salary was determined under regulation 37, or

(b) the pension, in a case where the person’s average salary was determined under regulation 38.

(8) Where a pension falls to be reduced under paragraph (5)(b) in any tax year, the Secretary of State is to pay the pension in accordance with regulation 109 (monthly payments) or regulation 110 (quarterly payments) at the rate which is appropriate without taking account of the reduction until the amount to which the pension is to be reduced (on the assumption that the person will remain in employment at the same salary for the remainder of the tax year) has been paid.

(9) Once the appropriate amount of pension has been paid as mentioned in paragraph (8), no further payment is to be made during that tax year unless the person ceases to be in the employment or is in employment at a lower salary in which case the Secretary of State is to pay pension during the remainder of the tax year to the person of such amount and at such times as is necessary in order to secure the result described in paragraph (5).

(10) Where the actual pension paid in any tax year has exceeded the amount which should have been paid by virtue of paragraph (5) (“the excess payment”) the pension payable in the subsequent tax year is to be reduced by the excess payment.

(11) In paragraphs (5) and (7) to (10) “pension” means the aggregate of a person’s retirement pension (other than a pension or part of a pension referred to in paragraph (3)) and any phased retirement pension, additional pension or total incapacity pension paid with that pension.

(1)

S.I. 1997/311