(This note is not part of the Regulations)
These Regulations amend the Teachers' Pensions Regulations 1997 (“the Principal Regulations”).
Regulations 3 to 5 allow a teacher who is employed by a person performing functions on behalf of a local education authority to be a member of the Teachers' Pension Scheme provided that the employer has been accepted by the Secretary of State for that purpose.
Regulation 7 introduces a new regulation B7 under which full-time and part-time further employment after retirement may be pensionable upon making an election. With the agreement of the employer, and subject to payment of the necessary contributions and interest, an election may take effect from a date earlier than the date the election is made. This earlier date must be no earlier than 1st April 2000 or the date the further employment commenced if that is after 1st April 2000. A teacher in pensionable full-time further employment which commenced before 1st April 1997 is not affected by this regulation for so long as he remains in the same employment. A person who is in receipt of retirement benefits by virtue of ill-health (that is a Case B or Case C pensioner within regulation E4 of the Principal Regulations) cannot make an election under regulation B7 on ceasing to be incapacitated and returning to work unless he is in receipt of such a pension in respect of further employment which is pensionable under regulation B7.
Regulation 8 amends regulation C2 (which allows a person whose salary has been reduced to elect to continue paying higher contributions) by providing that the retail prices index for the month in which the teacher's salary was reduced is to be used to calculate the rate by which his salary shall be treated as increased for the purposes of paying higher contributions. A person who is in pensionable employment under regulation B7 is excluded from this provision.
Regulations 9, 14 and 32 make provision, consequent on an employer's decision to agree an earlier effective date in relation to a teacher's election under regulation B7, for the employer to collect employee contributions and interest and pay these with the relevant employer contributions and interest to the Secretary of State.
Regulations 10 to 13, and 33 exclude a person who is in pensionable employment under regulation B7 from regulations C4 (Additional contributions for past period), C5 (Additional contributions for past period by family pensioner), C9 (Additional contributions for current period), C16 (Return of repaid contributions), and H1 (Modified application in case of employment at reduced salary) of the Principal Regulations.
Regulation 15 makes provision for benefits in respect of a person's guaranteed minimum pension rights to be paid at state retirement age and for benefits in respect of a teacher's section 9(2B) rights (namely, rights attributable to a teacher's service in contracted-out employment on or after 6 April 1997) to be paid at age 60 where he has transferred his accrued rights in excess of those benefits to a non-contracted-out pension scheme.
Regulation 16 amends regulation E3 of the Principal Regulations to require a qualifying period of one year, which may be discontinuous, to be completed by a teacher who has made an election under regulation B7.
Regulation 17 amends regulation E4 (Entitlement to payment of retirement benefits) of the Principal Regulations by adding paragraphs (5A), (5B) and (9A) which provide for a new Case E. Paragraph (5A) provides that, subject to the conditions set out in paragraph (5B), a person may be paid actuarially reduced retirement benefits if he retires between the ages of 55 and 60. Actuarially reduced retirement benefits will not be paid if the annual amount is less than the aggregate annual value of any equivalent pension benefits and any guaranteed minimum pension to which the person is entitled. The employer's consent, which cannot be withheld for more than 6 months from the date on which the teacher notified his employer of his wishes, is required where the teacher is in pensionable or excluded employment at the time of his application. Paragraph (9A) determines the date when entitlement to such benefits takes effect.
Regulations 18 and 19 amend regulations E5 and E6 of the Principal Regulations to give effect to the amount of the actuarially reduced pension and lump sum to be paid.
Regulation 20 amends regulation E8 of the Principal Regulations to reduce from 5 years to 2 years the period needed to qualify for enhanced ill-health retirement benefits in respect of teachers who retire on the grounds of incapacity where pensionable or excluded employment terminates on or after 1st April 2000. Additionally, the enhancement which may be paid to a teacher whose ill-health retirement benefits are calculated by reference to further employment which is pensionable by virtue of an election under regulation B7 is limited to the shorter of the length of his relevant service or the length of the period remaining before the teacher's 60th birthday.
Regulation 21 amends regulation E13 of the Principal Regulations so that a teacher whose ill-health retirement benefits became payable on or after 1st April 1997 will cease to be treated as incapacitated if, on or after 30th March 2000, he becomes employed in a full-time or part-time capacity (pensionable or non-pensionable) in any employment which comes within the scope of the regulations.
Regulation 22 amends regulation E14 (Abatement of retirement pension during further employment) of the Principal Regulations so that further employment counts for the purposes of abatement whether an election under regulation B7 is made or not. It further amends regulation E14 so that a teacher's actuarially reduced pension will not be subject to abatement. Actuarially reduced pension income, however, is to be taken into account in assessing the overall retirement income where a teacher's benefits are subject to abatement by virtue of an award of unreduced retirement benefits.
Regulation 23 amends regulation E15 of the Principal Regulations so that it does not apply to teachers whose further employment is pensionable by virtue of an election under regulation B7. Regulation E15 will continue to have effect in relation to persons whose benefits become payable on cessation of pensionable full-time further employment which commenced before 1st April 1997 and other teachers who undertake pensionable employment (full-time or part-time) on ceasing to be incapacitated unless this follows further employment which was pensionable by virtue of an election under regulation B7.
Regulation 24 introduces a new regulation E15A to provide for the entitlement to further retirement benefits of a teacher who ceases to be employed in further employment which was pensionable by virtue of an election under regulation B7.
Regulation 25 amends regulation E20 of the Principal Regulations by extending the provisions relating to in-service death grant to those on unpaid maternity and parental leave.
Regulation 26 amends regulation E21 of the Principal Regulations to introduce a five year pension guarantee in respect of all teachers whose retirement benefits become payable on or after 1st April 2000.
Regulation 27 amends regulation E22 so that further employment which is pensionable by reason of an election under regulation B7 is treated separately from other employment in calculating family benefits. Regulation E22 is further amended to ensure that a teacher's natural children must be born, at the latest, 12 months after his death to be entitled to such benefits,
Regulation 29 amends regulation F1 as a consequence of the amended definition of “entitled“ in Schedule 1.
Regulation 30 introduces a new regulation F1A to enable a transfer value to be paid, subject to the Government Actuary's advice, on terms that are preferential to the usual cash equivalent basis in circumstances where the employment of one or more teachers is compulsorily transferred to a new employer and he or they are unable to remain in the Teachers' Pension Scheme.
Regulation 31 amends regulation G5 to increase employers' contributions by 0.2% from 1st April 2000.
Regulation 34 amends a number of definitions in Schedule 1 to the Principal Regulations. In particular, the definition of “entitled” is amended in relation to those who are aged under 60 and in relation to benefits which accrue as a result of an election under regulation B7.
Regulation 35 adds to Schedule 2 to the Principal Regulations further organisations whose employees may be members of the Teachers' Pension Scheme if they elect to be so.
Regulation 36 brings revised factors into effect in relation to early retirement benefits which come into payment on or after 30th March 2000.