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Statutory Instruments of the Scottish Parliament


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(d) after the definition of "The 1977 Regulations" there shall be inserted-

""The 1993 Act" The Pension Schemes Act 1993[9].";


Maximum purchase of added years
    
11. In Schedule 3 to the 1992 Regulations, for paragraph 2 there shall be substituted the following paragraph:-

         " 2.  - (1) This paragraph applies to a teacher who-

        (2) Material benefits comprise-

      (a) any benefits by way of pension, allowance, lump sum or gratuity whose actuarial equivalent as an annuity for life from the age of 60 would be more than £260 per year or such higher amount as may be prescribed from time to time by regulations made under section 21(1) of the 1993 Act, and

      (b) any refund of contributions which, together with any interest payable, exceeded £2,000.

        (3) Where this paragraph applies and the number of years calculated in accordance with sub-paragraph (4) is lower than the number specified against the teacher's adjusted age in the Table, paragraph 1(1) applies with the substitution of that lower number as "A".

        (4) The number of years is the highest one that secures that E+F+G+H does not exceed J, where-

           E is the actuarial equivalent as an annuity for life from the age of 60 of any material benefits,

           F is the actuarial value as such an annuity of any expected retirement allowances such as are mentioned in sub-paragraph (1)(b),

           G is the actuarial equivalent as such an annuity of the notional retirement lump sum,

           H is the annual amount of the notional pension, and

           J is two thirds of the notional pensionable salary.

        (5) The notional retirement lump sum, pension and pensionable salary-

      (a) where the election is made before the teacher attains the age of 60, are those resulting from the assumptions that he continues in pensionable employment until that age and then becomes entitled to retiring allowances and that the salary scale applicable at the date of the election continues to apply; and

      (b) where the election is made after the teacher has attained the age of 60, are those resulting from the assumptions that he ceased to be in pensionable employment on his 60th birthday and then became entitled to retiring allowances.".

Early retirement factors
     12. For Schedule 9A[11] there shall be substituted the Schedule set out in the Schedule to these Regulations.

Transitional provision
     13. The amendment made to regulation E21(5) of the 1992 Regulations by regulation 6 above shall not apply in relation to benefits payable in respect of a person who died before 20th November 2000.


SAM GALBRAITH
A member of the Scottish Executive

St Andrew's House, Edinburgh
27th September 2000



We consent,


JIM DOWD

BOB AINSWORTH
Two of the Lords Commissioners of Her Majesty's Treasury

10th October 2000



SCHEDULE
Regulations E6 and E7



" SCHEDULE 9A


TABLE I

EARLY RETIREMENT FACTORS - PENSIONS

Complete Years Complete Months
AGE 0 1 2 3 4 5 6 7 8 9 10 11
50 0.580 0.582 0.584 0.587 0.589 0.591 0.593 0.595 0.598 0.600 0.602 0.604
51 0.606 0.609 0.611 0.614 0.616 0.619 0.621 0.623 0.626 0.628 0.631 0.633
52 0.635 0.638 0.641 0.643 0.646 0.649 0.651 0.654 0.657 0.659 0.662 0.665
53 0.667 0.670 0.673 0.676 0.679 0.682 0.685 0.688 0.691 0.694 0.697 0.700
54 0.703 0.706 0.709 0.713 0.716 0.719 0.723 0.726 0.729 0.733 0.736 0.739
55 0.742 0.746 0.750 0.753 0.757 0.761 0.764 0.768 0.771 0.775 0.779 0.782
56 0.786 0.790 0.794 0.798 0.802 0.806 0.810 0.813 0.817 0.821 0.825 0.829
57 0.833 0.837 0.842 0.846 0.850 0.854 0.859 0.863 0.867 0.871 0.876 0.880
58 0.884 0.889 0.893 0.898 0.903 0.907 0.912 0.917 0.921 0.926 0.930 0.935
59 0.940 0.945 0.950 0.955 0.960 0.965 0.970 0.975 0.980 0.985 0.990 0.995



TABLE II

EARLY RETIREMENT FACTORS - LUMP SUMS

Complete Years Complete Months
AGE 0 1 2 3 4 5 6 7 8 9 10 11
50 0.712 0.714 0.716 0.718 0.720 0.722 0.724 0.726 0.728 0.730 0.732 0.734
51 0.736 0.738 0.740 0.742 0.744 0.747 0.749 0.751 0.753 0.755 0.757 0.759
52 0.761 0.764 0.766 0.768 0.770 0.772 0.774 0.777 0.779 0.781 0.783 0.785
53 0.788 0.790 0.792 0.794 0.797 0.799 0.801 0.803 0.806 0.808 0.810 0.812
54 0.815 0.817 0.819 0.822 0.824 0.826 0.829 0.831 0.834 0.836 0.838 0.841
55 0.843 0.845 0.848 0.850 0.853 0.855 0.857 0.860 0.862 0.865 0.867 0.870
56 0.872 0.875 0.877 0.880 0.882 0.885 0.887 0.890 0.892 0.895 0.897 0.900
57 0.902 0.905 0.907 0.910 0.913 0.915 0.918 0.921 0.923 0.926 0.928 0.931
58 0.934 0.936 0.939 0.942 0.944 0.947 0.950 0.953 0.955 0.958 0.961 0.963
59 0.966 0.969 0.972 0.975 0.977 0.980 0.983 0.986 0.989 0.992 0.994 0.997



TABLE III

EARLY RETIREMENT FACTORS - PENSIONS: CERTAIN NHS TRANSFEREES

Complete Years Complete Months
AGE 0 1 2 3 4 5 6 7 8 9 10 11
50 0.781 0.784 0.787 0.790 0.793 0.796 0.799 0.802 0.805 0.808 0.811 0.814
51 0.817 0.820 0.823 0.827 0.830 0.833 0.836 0.840 0.843 0.846 0.849 0.853
52 0.856 0.859 0.863 0.867 0.870 0.874 0.877 0.881 0.885 0.888 0.892 0.895
53 0.899 0.903 0.907 0.911 0.915 0.919 0.923 0.927 0.931 0.935 0.939 0.943
54 0.947 0.951 0.956 0.960 0.964 0.969 0.973 0.978 0.982 0.987 0.991 0.996



TABLE IV

EARLY RETIREMENT FACTORS - LUMP SUMS: CERTAIN NHS TRANSFEREES

Complete Years Complete Months
AGE 0 1 2 3 4 5 6 7 8 9 10 11
50 0.843 0.845 0.847 0.850 0.852 0.855 0.857 0.860 0.862 0.864 0.867 0.869
51 0.872 0.874 0.877 0.879 0.882 0.884 0.887 0.889 0.892 0.895 0.897 0.900
52 0.902 0.905 0.907 0.910 0.913 0.915 0.918 0.920 0.923 0.926 0.928 0.931
53 0.934 0.936 0.939 0.942 0.944 0.947 0.950 0.973 0.955 0.958 0.961 0.963
54 0.966 0.969 0.972 0.975 0.977 0.980 0.983 0.986 0.989 0.992 0.994 0.997"


EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make further amendments to the Teachers' Superannuation (Scotland) Regulations 1992 (S.I. 1992/280) ("the 1992 Regulations").

Regulation 1(2)(a) provides for regulation 12 to have retrospective effect from 1st September 2000. Retrospection is authorised by section 12(1) of the Superannuation Act 1972.

Regulation 3 amends the provisions relating to part-time service, so that a teacher is not in pensionable employment in respect of part-time teaching which is additional to full-time teaching. One effect of this is that a teacher's pensionable salary will not be greater than his full-time salary. There is however an exclusion from the amendment for teachers who are, and continue to be, in concurrent full time and part time service when these Regulations come into force, unless they elect for it to apply.

Regulation 4 removes the option whereby teachers could elect to purchase past added years by means of a lump sum payable in instalments, plus interest. This method of purchasing past added years is no longer available in England and Wales or in Northern Ireland, and has been rarely used in Scotland. There is however a saving provision (regulation 4(f)) for any ongoing cases.

Regulation 5 makes provision for benefits in respect of a teacher'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. Paragraphs (b) to (d) of regulation 10 are consequential upon this.

Regulation 6 amends the existing provisions in regulation E21, relating to family benefits in general, to ensure that a teacher's natural children must be born no later than 12 months after the date of death of the teacher (in order to be entitled to family benefits). A transitional provision (regulation 13) clarifies that this amendment only applies to any case where a teacher dies on or after 20th November 2000.

Regulations 7 and 8 amend the provisions in regulations G8 and G9 of the 1992 Regulations relating to actuarial reports on the teachers' Superannuation account. The amendments provide that each actuarial report is to be a report in relation to the account as at a date determined by the Scottish Ministers, and that each report must specify the rate at which contributions should be paid during a period beginning and ending on days specified by the Scottish Ministers. Regulation 9 makes special provision relating to the actuarial report as at 31st March 1996.

Paragraph (a) of regulation 10 clarifies the definition of "adviser", by removing the reference to the person being paid on a salary scale accepted as applicable to teachers.

Regulation 11 amends Schedule 3 so that, in calculating a teacher's maximum purchase of added years, benefits arising from additional voluntary contributions are taken into account as well as material benefits from former employment.

Regulation 12 amends the factors governing the proportion of pension and lump sum which is payable by the scheme, and consequently also the proportion which is payable by employers, in cases of early retirement. The new factors are the result of a review by the Government Actuary. The effect is that, in almost all cases, the scheme will pay a higher proportion.

[1] 1972 c.11; section 9 was amended by section 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. The functions of the Secretary of State were transferred to the Scottish Ministers by virtue of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).back

[2] This function was transferred to The Treasury by the Transfer of Functions (Minister for the Civil Service and Treasury) Order 1981 (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, 1670 and 2865, 1997/676, 1998/718, 1644 and 2208 and 1999/446.back

[4] Paragraph (13A) was inserted by S.I. 1993/2513.back

[5] 1993 c.48.back

[6] S.I. 1997/676.back

[7] 1992 c.4. Section 3 is amended by the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2) ("the 1999 Act"), section 2, Schedule 3, paragraph 3 and the Social Security Act 1998 (c.14) ("the 1998 Act"), sections 48 and 49. Section 4 is amended by the Social Security (Incapacity for Work) Act 1994 (c.18), section 11, Schedule 1, paragraph 1, Schedule 2, the 1998 Act, section 50, and the 1999 Act, section 2, Schedule 3, paragraph 4. Section 112 is amended by the 1999 Act, section 2, Schedule 3, paragraph 21, and the Employment Rights Act 1996 (c.18), section 240.back

[8] Section 9(2B) was inserted by section 136(3) of the Pensions Act 1995 (c.26).back

[9] 1993 c.48.back

[10] S.I. 1995/2814.back

[11] Schedule 9A was inserted by S.I. 1997/676, and amended by S.I. 1998/718back


ISBN 0 11 059488 6


 



© Crown copyright 2000
Prepared 26 October 2000


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