Statutory Instrument 1998 No. 718 (S.36)

The Teachers' Superannuation (Scotland) Amendment Regulations 1998

(The document as of February, 2008)

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STATUTORY INSTRUMENTS

1998 No. 718 (S.36)

EDUCATION, SCOTLAND

The Teachers' Superannuation (Scotland) Amendment Regulations 1998

	[a]Made	4th March 1998
	Laid before Parliament	24th March 1998
	Coming into force	15th April 1998

The Secretary of State, in exercise of the powers conferred on him by sections 9 and 12 of, and Schedule 3 to, the Superannuation Act 1972[1] and of all other powers enabling him in that behalf, after consulting with representatives of education authorities and of teachers and with such representatives of other persons likely to be affected by the Regulations as appear to him to be appropriate in accordance with section 9(5) of that Act, and with the consent of the Treasury[2], hereby makes the following Regulations:

Citation, commencement and effect, and interpretation
    1. - (1) These Regulations may be cited as the Teachers' Superannuation (Scotland) Amendment Regulations 1998.

    (2) These Regulations shall come into force on 15th April 1998 and shall have effect-

(i) for the purposes of regulations 6, 7, 10, 13, 18(a), 24 and 25 as from 6th April 1997; and

(ii) for all other purposes as from the date of coming into force of these Regulations.

    (3) In these Regulations, "the 1992 Regulations" means the Teachers' Superannuation (Scotland) Regulations 1992[3].

Amendment of 1992 Regulations
    2.The 1992 Regulations shall be amended in accordance with the following provisions of these Regulations.

Salary on which contributions are payable
    3.In regulation C1, paragraphs (8) to (13) shall be deleted.

Salary on which contributions are payable - election
    4.After regulation C1 there shall be inserted the following regulation:-

" Salary on which contributions are payable - election
    C1A. - (1) A teacher who-


(a) continues in pensionable employment but whose contributable salary is reduced, otherwise than by reason of sick leave or maternity leave, and who satisfies the conditions in paragraph (2); or

(b) leaves pensionable employment with one employer ("employer A") and-


(i) takes up employment again with employer A, or

(ii) takes up employment with another employer ("employer B")



at a lower contributable salary and who satisfies the conditions in paragraph (3),



may make an election that his salary is to be treated as having continued at the rate specified in paragraph (4).

    (2) The conditions referred to in paragraph (1)(a) are-



(a) that on the date when the contributable salary was reduced the teacher had attained the age of 50;

(b) that on that date he had been in pensionable employment or excluded employment for at least five years; and

(c) that the responsibility of his post after the reduction in contributable salary is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date of the reduction in contributable salary.



    (3) The conditions referred to in paragraph (1)(b) are-



(a) that on the date of leaving pensionable employment with employer A the teacher had attained the age of 50;

(b) that on that date he had been in pensionable employment or excluded employment for at least five years;

(c) that the responsibility of his new post with employer A or, as the case may be, his post with employer B is lower than the responsibility of any of the posts which he had held during the period of five years immediately preceding the date on which he left employment with employer A as described in paragraph (1);

(d) that employer A notifies the Secretary of State that the teacher has provided satisfactory service during the period of five years referred to in sub-paragraph (c) or, where he has been employed by employer A for less than five years, during the period when he was employed by employer A; and

(e) that no more than one year had elapsed between leaving pensionable employment with employer A as described in paragraph (1) and taking up pensionable employment again with employer A or, as the case may be, taking up pensionable employment with employer B.



    (4) The rate of salary referred to in paragraph (1) is-



(a) where the teacher falls within paragraph (1)(a) and is employed in full-time service after the reduction in contributable salary, the rate applicable immediately before the reduction;

(b) where the teacher falls within paragraph (1)(b) and is re-employed in full-time service with employer A, or is employed in full-time service with employer B, the rate applicable immediately before he left employment with employer A as described in paragraph (1);

(c) where the teacher falls within paragraph (1)(a) and is employed in part-time service after the reduction in contributable salary, the rate which would have been applicable immediately before the reduction if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed immediately after the reduction; and

(d) where the teacher falls within paragraph (1)(b) and is employed in part-time service at the start of his re-employment with employer A or his employment with employer B, the rate which would have been applicable immediately he left his employment with employer A as described in paragraph (1) if he had been employed for the same number of hours or for the same proportion of the year, term, month or week, as the case may be, as he is employed at the start of his re-employment with employer A or, as the case may be, his employment with employer B,



increased, in each case, on each increase day by



(RI - RE) RE

where-
RI is the retail prices index for the month in which the increase day occurs; and
RE is the retail prices index for the month in which the election was made.

    (5) For the purposes of paragraph (4) the increase day is the first day of the month in each year following the month in which-



(a) the salary was reduced, in a case where the teacher falls within paragraph (1)(a), or

(b) the teacher left his employment with employer A as described in paragraph (1) in a case where the teacher falls within paragraph (1)(b),



and the first increase day is that falling in the year after the year in which the salary was reduced or the teacher left his employment with employer A, as the case may be.

    (6) An election for the purposes of paragraph (1)-



(a) must be made by giving written notice to the Secretary of State before the date which is three months after-


(i) the reduction in salary, in a case where the teacher falls within paragraph (1)(a); or

(ii) taking up employment again with employer A or, as the case may be, taking up employment with employer B, in a case where the teacher falls within paragraph (1)(b);



or before 15th July 1998, whichever date is later;

(b) has effect from-



(i) the day after the last day on which the teacher's salary was payable at the rate applicable immediately before the reduction in contributable salary, in a case where the teacher falls within paragraph (1)(a); or

(ii) the day on which the teacher takes up employment again with employer A or, as the case may be, takes up employment with employer B, in a case where the teacher falls within paragraph (1)(b); and



(c) subject to paragraph (7), continues to have effect until the teacher ceases to be in pensionable employment unless he-



(i) elects to pay additional contributions under regulations C8 or C8A; or

(ii) takes up pensionable employment with another employer ("employer C") within six months of ceasing to be in pensionable employment.



    (7) An election for the purposes of paragraph (1) may be cancelled by giving written notice to the Secretary of State at any time.

    (8) Notice of cancellation-



(a) has effect from the first day of the month following that in which it was received; and

(b) is irrevocable.



    (9) If, while an election made for the purposes of paragraph (1) has effect, there is any further reduction in salary during a period of sick leave or maternity leave, the rate of salary specified in paragraph (4) is, during that period, to be treated as having been reduced in the same proportion as the actual rate.

    (10) In paragraphs (1)(a) and (1)(b) the reference to contributable salary is, in the case of a teacher employed in part-time service, a reference to the salary which would have been the teacher's contributable salary if the teacher had been in full-time service.

    (11) In this regulation "the retail prices index" means the index of retail prices published by the Office for National Statistics.".

Ordinary contributions
    5.In regulation C2, after paragraph (1) there shall be inserted the following paragraph:-

    " (1A) A teacher who has made an election under regulation C1A(1) shall, in addition to the contributions referred to in paragraph (1), pay contributions of the required percentage of the difference between the teacher's actual contributable salary and the contributable salary at the rate referred to in regulation C1A(4) to the extent that such contributions are not paid by any employer referred to in regulation G9A under an election mentioned in that regulation.".

Overriding provision as to guaranteed minimum pension
    6.In regulation E1-

(a) in paragraph (2) after the words "If a teacher has" there shall be inserted the words ", in relation to employment before 6th April 1997,"; and

(b) in paragraph (3) for the words from "in the tax years" to the end there shall be substituted the words "for the period beginning with the tax year 1988-89 and ending with the tax year 1996-97, be increased in accordance with the requirements of section 109 of the Pension Schemes Act 1993[4]".

Revaluation of guaranteed minimum in certain cases
    7.For regulation E2 there shall be substituted-

    " E2. - (1) This regulation applies where-


(a) a teacher has ceased to be employed in reckonable service; and

(b) the guaranteed minimum in relation to his pension is appropriately secured (within the meaning of section 19 of the Pension Schemes Act 1993).



    (2) The earnings factors of such a teacher shall be determined for the purposes of section 14(2) of that Act-



(a) by reference to the last order under section 21 of the Social Security Pensions Act 1975[5] or section 148 of the Social Security Administration Act 1992[6] to come into force before the end of the tax year in which he ceased to be a pensionable employee; and

(b) without reference to the last such order to come into force before the end of the final relevant year.



    (3) The weekly equivalent mentioned in section 14(2) of the Pension Schemes Act 1993 shall be increased by at least the prescribed percentage for each relevant year after the end of the tax year in which he ceased to be a pensionable employee and in accordance with such additional requirements as may be prescribed for the purposes of section 16(3)[7] of that Act.

    (4) In this regulation-



"relevant year" and "final relevant year" have the meanings given respectively in sections 14(8)[8] and 16(5) of the Pensions Schemes Act 1993;
"prescribed percentage" has the meaning given in regulation 62 of the Occupational Pension Schemes (Contracting-out) Regulations 1996[9]."

Withdrawal of incapacity pensions
    8.In regulation E14A[10], after the words "employment which would be pensionable but for" there shall be inserted the words "regulation B5(5)[11] (exclusion from pensionable employment),".

Forfeiture of benefits
    9.In regulation E18(1)(c), after the words "pensionable employment" there shall be inserted the words "or excluded employment".

Amounts of spouses' and nominated beneficiaries' long-term pensions
    10.In regulation E26(7)(a), for the words "the tax year 1988/89 and subsequent tax years" there shall be substituted the words "the tax years 1988/89 to 1996/97 inclusive".

Pensionable salary
    11.For regulation E29, there shall be substituted-

" Pensionable salary
    E29. - (1) Subject to paragraph (13), a teacher's pensionable salary-


(a) where the material part of his terminal service is one year or more, is his full salary for the best consecutive 365 days of that part; and

(b) in any other case, is the average annual rate of his full salary for that part.



    (2) In determining, for the purposes of paragraph (1), what are the best consecutive 365 days of the material part of the teacher's terminal service, days on which the teacher is not in pensionable employment are disregarded.

    (3) Terminal service comprises-



(a) any period spent by the teacher in pensionable employment;

(b) any period counting as reckonable service by virtue of regulation D4 (current added years purchased by additional contributions);

(c) any period of comparable British service which began before 1st April 1974 and has not been followed by a period of pensionable employment and for which a transfer value has been accepted;

(d) subject to paragraph (4), any period of a kind described in paragraphs 5 to 8 of Schedule 8; and

(e) any period counting as reckonable service by virtue of regulation C8A (service in a reserve force).



    (4) A teacher who is in an employment falling within paragraphs 5 to 8 of Schedule 8 may, by giving written notice to the Secretary of State, elect that from the date from which the election takes effect the employment is not to constitute terminal service.

    (5) An election under paragraph (4)-



(a) if the notice is received before the teacher attains the age of 60, takes effect from his 60th birthday; and

(b) in any other case, takes effect from the first day of the month following that in which the notice was received.



    (6) The material part of a teacher's terminal service is-



(a) where he has less than three years of such service, the whole of it; or

(b) in any other case, the last three years of it.



    (7) In determining the material part of a teacher's terminal service, periods when the teacher was not in pensionable employment shall be disregarded and accordingly the period of three years referred to in paragraph (6) may be discontinuous.

    (8) For the purposes of paragraphs (2), (3)(a) and (7) a teacher who is employed under a contract whereby that teacher is available for work but only undertakes (and accordingly is only paid for) work when, and for periods, requested by the employer is not treated as being in pensionable employment during periods when he is not undertaking work (whether or not such a teacher would be so treated apart from this paragraph).

    (9) Subject to paragraphs (10) and (11), a teacher's full salary-



(a) for a period falling within paragraph (3)(a), is his contributable salary for the period of pensionable employment, disregarding any reduction during sick leave or maternity leave;

(b) for a period falling within paragraph (3)(b), is the notional salary by reference to which the additional contributions paid under regulation C8 or C8A were calculated; and

(c) for a period falling within paragraph (3)(c), is what would have been his salary for the purpose of calculating benefits under the pension scheme to which he was subject in the relevant employment;

(d) for a period falling within paragraph (3)(d), is what would have been his salary for the purpose of calculating benefits under the superannuation scheme to which he was subject in the relevant employment; and

(e) for the period falling within paragraph (3)(e), is the notional salary by reference to which the additional contributions paid under regulation C8A were calculated.



    (10) For-



(a) a period of pensionable employment; or

(b) a period counting as reckonable service by virtue of regulation D4,



beginning after 31st July 1975 and ending before 1st August 1978, a teacher's full salary includes any sums that would have been payable to him if payment of them had not been withheld, whether by virtue of an enactment or otherwise, in order to comply with limits referred to in section 1 of the Remuneration, Charges and Grants Act 1975[12].

    (11) For-



(a) a period of pensionable employment; or

(b) a period counting as reckonable service by virtue of regulation D4,



beginning after 31st March 1979 and ending before 1st September 1980, a teacher's full salary is the notional salary resulting from the application to him of the Teachers' Superannuation (Notional Salaries) (Scotland) Regulations 1982[13].

    (12) Where a teacher has during the material part of his terminal service spent any period employed in part-time service, the full salary for that period shall be the amount which it would have been if the employment had been in full-time service during that period.

    (13) If the Secretary of State is satisfied that the salary of a teacher has been unreasonably increased in respect of any period which is in the opinion of the Secretary of State relevant for the purposes of this regulation, his pensionable salary shall be calculated by reference to such a salary in respect of that period as the Secretary of State considers reasonable.".

Interest on late payment of certain benefits
    12.In regulation E31A[14]-

(a) for paragraph (3) there shall be substituted-

    " (3) For the purposes of paragraph (1) the due date, in a case where a benefit does not consist of a single payment, is the last day of the month in which entitlement to the benefit took effect."; and

(b) paragraph (4) shall be deleted.

Payment of transfer values
    13.In regulation F1(11), for sub-paragraph (a) there shall be substituted-

" (a) the date six months after the guarantee date".

Alternative actuarial inquiry as at 31st March 1996
    14.In regulation G7[15], the last paragraph shall be re-numbered "(11)".

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Notes:

[1] 1972 c.11; section 9 was amended by sections 4(1), 8(3) and (4) and 11 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7) and section 12 was amended by section 10 of that Act.back

[2] See S.I. 1981/1670.back

[3] S.I. 1992/280; amended by S.I. 1992/1025 and 1597, 1993/490 and 2513, 1994/1715 and 2699, 1995/840 and 1670 and 1997/676.back

[4] 1993 c.48; amended by section 55 of the Pensions Act 1995 (c.26).back

[5] 1975 c.60; section 21 was repealed by the Social Security (Consequential Provisions) Act 1992 (c.6), section 3(1) and Schedule 1.back

[6] 1992 c.5.back

[7] 1993 c.48; section 16(3) was amended by the Pensions Act 1995 (c.26), Schedule 5, paragraph 28.back

[8] Section 14(8) was amended by the Pensions Act 1995, Schedule 5, paragraph 27.back

[9] S.I. 1996/1172; amended by S.I. 1996/1977 and 1997/786 and 819.back

[10] Regulation E14A was inserted by S.I. 1997/676.back

[11] Regulation B5(5) was inserted by S.I. 1997/676.back

[12] 1975 c.57; section 1 was amended, and the period for which it had effect extended to end with 31st July 1978, by the Price Commission Act 1977 (c.33), section 17; references to limits set out in documents laid before Parliament in 1976 and 1977 were added by S.I. 1976/1097, 1977/1294.back

[13] S.I. 1982/1302.back

[14] Regulation E31A was inserted by S.I. 1997/676.back

[15] Regulation G7 was inserted by S.I. 1997/676.back

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[a] Amended by Correction Slip. Now reads

"Made	4th March 1998"
"Laid before Parliament	24th March 1998"

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