[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]
	United Kingdom Statutory Instruments
You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Teachers' Pensions etc. (Reform Amendments) Regulations 2006 No. 3122 URL: http://www.bailii.org/uk/legis/num_reg/2006/20063122.html

[New search] [Help]

    " (2B) The Secretary of State may, before paying any lump sum as mentioned in regulation 12(1A) require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2C) by a date determined by the Secretary of State.

    (2C) The declaration is a declaration, in a form specified by the Secretary of State, signed by that person, to the effect that paragraph 3A of Schedule 29 to the 2004 Act [6] does not apply.

    (2D) Where no such declaration is received by the Secretary of State by the date referred to in paragraph (2B) the Secretary of State may treat the election under regulation 12 for a lump sum benefit as of no effect, and may apply the amount of the lump sum to the purchase of a pension policy from the insurance company referred to in regulation 9 to provide such benefits as appear to him to be suitable.".

" Declaration where lump sum payments are made
     23A. —(1) The compensating authority may, before paying any lump sum under regulation 7, require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the compensating authority.

    (2) (2)The declaration is a declaration, in a form specified by the Secretary of State, signed by that person, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004[7] does not apply.

    (3) Where no such declaration is received by the compensating authority by the date referred to in paragraph (1) the compensating authority may, in place of the lump sum, pay additional annual compensation representing the value of the lump sum.

    (4) The amount of additional compensation referred to in paragraph (3) shall be determined by the compensating authority on the same basis as an additional pension is determined by the Secretary of State pursuant to regulation H6A of the Pensions Regulations."

Revocation and transitional provisions
     11. In regulation 29(3) omit "and where it fell within category G it shall be regarded as fully within category D in these Regulations."

Deciding and compensating authorities
     12. In Schedule 1, Part 1 omit "D,".

" Eligibility for payment of phased retirement benefits
     E4A. —(1) In these Regulations "phased retirement benefits" means retirement benefits to which a person may be eligible under this regulation.

    (2) A person in pensionable employment who is qualified for retirement benefits is eligible to receive a part of his retirement benefits before he becomes entitled to payment of them if—


(a) he has attained the age of 55, and

(b) his employer at the time of an election pursuant to paragraph (4) has certified that he will continue in pensionable employment such as to result in a reduction of contributable salary of at least 25% , as compared with the average annual rate of his contributable salary for the six months prior to the end of his previous employment, from the first day of pensionable employment at the reduced contributable salary.



    (3) A person who is qualified for retirement benefits is also eligible to receive part of his retirement benefits before he becomes entitled to payment of them if—



(a) he has attained the age of 55,

(b) after attaining that age he ceases to be in pensionable employment,

(c) within six months of the last day of that employment has—


(i) secured further pensionable employment, or

(ii) secured further employment in a school, college or university otherwise than as a teacher, and



(d) his employer in the further employment has certified that there has been a reduction in his contributable salary of at least 25% , as compared with the average annual rate of his contributable salary for the six months prior to the end of his previous employment, from the first day of further employment at the reduced contributable salary.



    (4) Eligibility to phased retirement benefits pursuant to this regulation is conditional upon—



(a) the person making a maximum of two elections for such benefits, and each election is accompanied by certification as prescribed in paragraph (2)(b) or (3)(d) and

(b) the election being made within three months of starting employment as referred to in paragraph (2)(b) or securing further employment as referred to in paragraph (3).



    (5) Subject to paragraph (7) the election shall specify a percentage ("the election percentage"), not exceeding 75% by reference to which retirement benefits are to be calculated in accordance with paragraphs (8) to (10).

    (6) Where in the 12 month period following the reduction of contributable salary, a person receives an increase in excess of the standard increase as defined in regulation E31(13)(d) in remuneration such as to give that person 75% or more of his salary prior to that reduction, then any election made pursuant to this regulation ceases to have effect.

    (7) Where the person is a person with mixed service the election may specify that it only applies to the part of the person's effective reckonable service which was before the start of the new employment after the relevant break of service or only applies to the part of the person's effective service which was after the start of the new employment after the relevant break of service.

    (8) Where the election is the first or only election the phased retirement benefits are calculated on the basis specified in regulation E5(2) and (where applicable) E6(2) but—



(a) the person's average salary is calculated as if his average salary service ended immediately at the date of the change in pensionable employment, and

(b) the person's effective reckonable service is the election percentage of his reckonable service up to the date of the change in pensionable employment.



    (9) Where the election is the second election, phased retirement benefits are calculated on the basis specified in regulation E5(2) and (where applicable) E6(2) but—



(a) the person's average salary is calculated in the manner specified in paragraph (8), and

(b) the person's effective reckonable service is—


(i) the election percentage of the person's reckonable service up to the date of the second change in pensionable employment, less

(ii) the amount of reckonable service calculated in accordance with paragraph (8)(b).



    (10) Phased retirement benefits calculated in accordance with paragraph (8) or (9) are adjusted by multiplication by the appropriate factor, and (in the case of a retirement pension) the adjustment is effected in the same way as is specified in regulation E5(7).

    (11) A person who has elected to pay additional contributions under regulation C3C and who has elected for phased retirement benefits, may elect also for payment in full of those additional benefits to which he is entitled under that regulation, multiplied by the appropriate factor in the same way as is specified in regulation E5A(6).

    (12) In calculating the factor by which additional benefits referred to in paragraph (11) are to be multiplied and divided pursuant to regulation E5A(3) and (4)—



(a) RI is the retail prices index for the second month before the month in which the change in pensionable employment occurred, and

(b) the definition of X has effect as if for "the date on which the person became entitled to payment of retirement benefits" there were substituted "the date of the change in pensionable employment".



    (13) Where the employer referred to in paragraph (3)(d) is unable to certify as prescribed in that paragraph because the previous employer has not provided him with the necessary information, the Secretary of State may determine nevertheless whether the person shall be entitled to phased retirement benefits.

    (14) In this regulation "change in pensionable employment", where the person falls within paragraph (2), is the day before the date on which contributable salary is reduced, and where the person falls within paragraph (3) is the date of leaving previous pensionable employment.

Amount of retirement pension
     E5. —(1) The annual rate of a person's retirement pension is the rate specified in paragraph (2) together with the rate specified in regulation E5A where that regulation applies (but nothing in this regulation or regulation E5A shall prevent different parts of a person's retirement pension being paid at different times if the person becomes entitled to the parts at different times).

    (2) Subject to paragraphs (4) and (6) to (14) and regulations E6A to E10, the rate is —



(a) in the case of a pre-2007 entrant, 1/80th of the person's average salary multiplied by his effective reckonable service,

(b) in the case of a 2007 or later entrant, 1/60th of the person's average salary multiplied by his effective reckonable service, and

(c) in the case of a person with mixed service the aggregate of—


(i) 1/80th of the person's average salary multiplied by that part of his effective reckonable service which was before the post-break employment start, and

(ii) 1/60th of the person's average salary multiplied by that part of his effective reckonable service which was after the post-break employment start.



    (3) For the purposes of paragraph (2) reckonable service is to be expressed in years and fractions of a year.

    (4) If—



(a) the person is entitled to count a period as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid), and

(b) by reason of regulation E32(3) part of that period does not count in calculating his retirement lump sum,



the annual rate calculated in accordance with paragraph (2) is, in respect of each year comprised in that part, increased by 1/350th of his average salary.

    (5) In paragraphs (6) to (10) "the basic rate" is the rate calculated in accordance with paragraphs (2) and (4) and, where appropriate, regulation E7 or E9 (but disregarding the effect of regulation E10).

    (6) Subject to paragraphs (7) to (10), where—



(a) a person who has become entitled to payment of retirement benefits by virtue of regulation E4(5) has ceased to be in pensionable employment or excluded employment on or after 1st September 1997, or

(b) a person has become entitled to payment of retirement benefits by virtue of regulation E4(5A),



the basic rate is adjusted as specified in paragraph (7).

    (7) The adjustments are—



(a) in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60,

(b) in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65,

(c) in the case of a person with mixed service who has not attained the age of 60, multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(i) by the appropriate factor for a person with a normal pension age of 60 and multiplication of that part of the annual rate of such pension referred to in paragraph (2)(c)(ii) by the appropriate factor for a person with a normal pension age of 65, and

(d) in the case of a person with mixed service who has attained the age of 60, multiplication of that part of the annual rate of such pension as is mentioned in paragraph (2)(c)(ii) by the appropriate factor for a person with a normal pension age of 65.



    (8) Paragraph (6) does not apply where, in the case of a person who falls within paragraph (4)(a), notice to terminate the person's employment was given, or his resignation tendered, on or before 22nd October 1996.

    (9) Where the person falls within paragraph (6)(a) and—



(a) the person has a guaranteed minimum in relation to employment up to 6th April 1997, and

(b) A exceeds B, where

     A is the annual equivalent of his guaranteed minimum pension together with that of any equivalent pension benefits, and

     B is the basic rate, where applicable, adjusted in accordance with paragraphs (6) and (7)



the annual rate of his retirement pension is A.

    (10) Where a 2007 or later entrant or a person with mixed service has effective reckonable service which has occurred after he attained the age of 65 the basic rate is adjusted as specified in paragraph (11).

    (11) The adjustments are—



(a) in the case of a 2007 or later entrant, multiplication of the annual rate of that part of his retirement pension which relates to effective reckonable service before the person attained the age of 65, by the relevant enhancement factor, and

(b) in the case of a person with mixed service, multiplication of that part of his retirement pension which relates to the part of his effective reckonable service before the person attained the age of 65 but after the post-break employment start, by the relevant enhancement factor.



    (12) In paragraph (11) "the relevant enhancement factor" means a factor (related to the length of the period which has elapsed between the person's 65th birthday and the date (after his 65th birthday) on which he became entitled to retirement benefits) determined from time to time for the purpose of this regulation by the Secretary of State after taking advice from the Government Actuary.

    (13) If a contributions equivalent premium has been paid in respect of the person and has not been refunded (and his entitlement to a guaranteed minimum pension is therefore extinguished) the annual rate of his retirement pension is reduced by the annual equivalent of the guaranteed minimum pension to which he would otherwise have been entitled.

    (14) Where a person has received phased retirement benefits, the person's effective reckonable service is reduced by the amount of reckonable service (determined under regulation E4A(8) and, where, applicable, regulation E4A(9)) taken into account in calculating phased retirement benefits.

Retirement pension when election has been made under regulation C3C
     E5A. —(1) This regulation applies where one or more elections under regulation C3C have been accepted by the Secretary of State and have not ceased to have effect.

    (2) Where this regulation applies the annual rate of a person's retirement pension is (in addition to the annual rate specified in regulation E5(2)) the aggregate of the annual rates with which the person has been credited pursuant to each election and Schedule 2A, multiplied by the factor specified in paragraph (3) and divided by the factor (if it is greater than one) specified in paragraph (4).

    (3) The factor in this paragraph is RI/RE where—



     RI is the retail prices index for second month before the month in which the person becomes entitled to the part of his retirement pension referred to in this regulation, and

     RE is the retail prices index for the month which includes the start date, as defined in paragraph 1 of Schedule 2A, for the election in question.



    (4) The factor in this paragraph is X/Y where—



     X is the amount which would have been the annual rate of the person's retirement pension calculated in accordance with the combined effect of paragraphs (2) and (3) (as if in paragraph (2) the words "and divided by the factor (if it is greater than one) specified in paragraph (4)" had been omitted) and any increases effected by the 1971 Act up to the date on which the person became entitled to payment of retirement benefits, and

     Y is the amount which would have been the annual rate of the person's retirement pension calculated in accordance with paragraphs (2) and (3) if in paragraph (2) the words "and divided by the factor (if it is greater than one) specified in paragraph (4)" had been omitted and if the 1971 Act did not apply.



    (5) Where regulation E5(6) applies, the annual rate of the person's retirement pension calculated in accordance with paragraphs (2) and (3) shall be adjusted as specified in paragraph (6).

    (6) The adjustments are—



(a) in the case of a pre-2007 entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60,

(b) in the case of a 2007 or later entrant, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65, and

(c) in the case of a person with mixed service who falls within regulation E4(2B) who has not attained the age of 60, multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 60, and

(d) in the case of a person with mixed service other than a person such as is referred to in regulation E4(2B), multiplication of the annual rate of such pension by the appropriate factor for a person with a normal pension age of 65.



    (7) In this regulation "the 1971 Act" means the Pensions (Increase) Act 1971[8].

Amount of retirement lump sum
     E6. —(1) This regulation applies to a pre-2007 entrant and a person with mixed service.

    (2) Subject to paragraphs (4), (5), (7) and (8) and regulations E7 and E8, the amount of retirement lump sum for a person to whom this regulation applies is Ax(B+C) where—



     A is 3/80ths of the person's average salary,

     B is, in the case of a pre-2007 entrant, his effective reckonable service or, in the case of a person with a mixed service, that part of his effective reckonable service which was before the post-break employment start (except, in either case, any falling within C), and

     C is any period which he is entitled to count as reckonable service by virtue of regulation D3 (past period for which additional contributions have been paid).



    (3) For the purposes of paragraph (2), reckonable service is to be expressed in years and fractions of a year.

    (4) A person's retirement lump sum cannot exceed his permitted maximum.

    (5) Subject to paragraph (6), where—



(a) a person to whom this regulation applies who has become entitled to payment of retirement benefits by virtue of regulation E4(5) before attaining the age of 60 has ceased to be in pensionable or excluded employment on or after 1st September 1997, or

(b) a person to whom this regulation applies has become entitled to payment of retirement benefits by virtue of regulation E4(5A) before attaining the age of 60,



the amount of the person's retirement lump sum shall be the amount calculated in accordance with paragraph (2) multiplied by the appropriate factor.

    (6) Paragraph (5) shall not apply where, in the case of a person who falls within paragraph (5)(a), notice to terminate the person's employment was given or his resignation tendered on or before 22nd October 1996.

    (7) A person who has attained the age of 75 is not entitled to a lump sum.

    (8) Where a person has received phased retirement benefits the person's effective reckonable service shall be calculated in accordance with regulation E5(14).

    (9) (9)Where an election to receive phased retirement benefits ceased to have effect by virtue of regulation E4A(6), then the amount of a person's retirement lump sum on entitlement to retirement benefits is reduced by any lump sum under regulation E6 received pursuant to that election.

Lump sum in place of part of pension
     E6A. —(1) Subject to paragraph (4) a person may, by an election made with the application for payment under regulation E33(2), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his retirement pension.

    (2) The amount of such lump sum must be a multiple of £12 and cannot exceed—



(a) in the case of a 2007 or later entrant, his permitted maximum, and

(b) in the case of a pre-2007 entrant or a person with mixed service, his permitted maximum less his retirement lump sum.



    (3) Where a lump sum is paid under this regulation, the annual rate of the person's retirement pension is reduced by £1 for every £12 of lump sum.

    (4) This regulation does not apply to a person who is a pre-2007 entrant and falls within regulation EA1(3)(a).

    (5) Paragraph (6) applies where—



(a) a person has elected to receive phased retirement benefits and has also elected pursuant to this regulation ("the first election") to receive a further lump sum in place of part of the retirement pension comprised in the phased retirement benefits, but

(b) the election to receive phased retirement benefits ceased to have effect by virtue of regulation E4A(6).



    (6) Where this paragraph applies the person is treated, on becoming entitled to payment of retirement benefits, as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum paid to the person pursuant to the first election.

    (7) Paragraph (8) applies where a person to whom regulation E15 applies elected pursuant to this regulation ("the first election") to receive a further lump sum in place of part of the first pension.

    (8) Where this paragraph applies the person is treated, on becoming entitled to payment of retirement benefits pursuant to regulation E15(2) or (4) as having elected pursuant to this regulation to receive a further lump sum of the appropriate amount, and the appropriate amount is then reduced by the lump sum paid to the person pursuant to the first election.

    (9) In this regulation—



(a) "the appropriate amount" is the amount (rounded to the nearest £12) such that the proportion which the rate of retirement pension forgone bears to the rate of retirement pension to which the person is entitled is the same as the proportion which the rate of retirement pension forgone pursuant to the first election bore to—


(i) the rate of retirement pension to which the person was eligible pursuant to the election made under regulation E4A, where the person falls within paragraph (5), or

(ii) the rate of the first pension, where the person falls within paragraph (7),



(b) "the first pension" has the same meaning as in regulation E15(1)(a).



Persons aged 75 or over
     E6B. —(1) Where a person would be entitled to a retirement lump sum but for regulation E6(7), the annual rate of that person's retirement pension shall be increased by an amount which represents the value of the retirement lump sum to which the person would have been entitled, payable from the date when that person's application made under regulation E33 is received by the Secretary of State.

    (2) The increase in the annual rate of the person's retirement pension shall be determined by the Secretary of State after taking advice from the Government Actuary."

Limitation of retirement benefits in certain cases
     30. In regulation E7(6) for "E5(3) or E6(3)" substitute "E5(6) and (7) or E6(5)".

Enhancement of retirement benefits in case of incapacity
     31. —(1) At the end of the heading to regulation E8 insert “where application is received before 6th January 2007”.

    (2) In regulation E8—

(a) in paragraph (1) after "in pensionable employment" insert "and whose application for payment under regulation E33(2) is received by the Secretary of State before 6th January 2007",

(b) in paragraph (3)(b) for "an election under regulation B7" insert "an election under regulation B7 as it had effect immediately before 1st January 2007 or an election under regulation B6(1A)",

(c) in paragraph (8) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10".

    (3) After regulation E8 insert the following—

" Total incapacity benefit where application received on or after 6th January 2007
     E8A. —(1) This regulation applies to a person who has become entitled to payment of retirement benefits by reason of his having become incapacitated and where, immediately before he became incapacitated—


(a) he was in pensionable employment, or

(b) he was taking a period of unpaid sick leave, maternity, paternity or adoptive leave (taken with the consent of the person's employer) or a career break which, in each case, followed on immediately after a period of pensionable employment, or

(c) he was paying additional contributions under old regulation C9 or regulation C10,



and whose application for payment under regulation E33(2) is received by the Secretary of State on or after 6th January 2007 and who satisfies the condition in paragraph (2)(a) and either the condition in paragraph (2)(b) or the condition in paragraph (2)(c).

    (2) The conditions are—



(a) that (in addition to being incapacitated) the person's ability to carry out any work is impaired by more than 90% and is likely permanently to be so, and

(b) where the person falls within paragraph (1)(a) or (1)(c), that the application for payment required by regulation E33(2) is made within 6 months after the end of the pensionable employment or within 6 months after the last payment of additional contributions under old regulation C9 or regulation C10 as the case may be, or

(c) where the person falls within paragraph (1)(b) that the application for payment required by regulation E33(2) is made—


(i) where the person was on unpaid sick leave, before the period of sick leave ends, and

(ii) in any other case before the date on which, under the arrangements made with the person's employer, the leave or career break is due to end.



    (3) The person becomes entitled (subject to regulation E32(2) (limitation of effective reckonable service to 45 years)) to payment of a total incapacity pension and (where applicable) a total incapacity lump sum calculated in accordance with regulation E5 or (where applicable) E6 but with the amount of effective reckonable service calculated in accordance with paragraph (4).

    (4) The effective reckonable service is (X-Y)/2 where—



     X is the amount which would have been the person's reckonable service if the person had ceased to be in pensionable employment on his attaining the normal pension age, and

     Y is the amount specified in paragraph (5).



    (5) The amount specified in this paragraph is—



(a) the actual amount of the person's effective reckonable service where—


(i) immediately before the person became incapacitated he was in excluded employment,

(ii) immediately before the person became incapacitated he was paying additional contributions under old regulation C9 or regulation C10, or

(iii) immediately before the person became incapacitated he was in pensionable employment and entitlement to payment of retirement benefits took effect under regulation E4(8) at the same time as he ceased to be in pensionable employment, or



(b) the amount which would have been the person's effective reckonable service if he had remained in pensionable employment until the date on which entitlement to retirement benefits took effect under regulation E4(8) in any other case.



    (6) Where the person is a person with mixed service, the effective reckonable service specified in paragraph (4) shall be treated as having occurred after the relevant break of service.

    (7) The entitlement to payment of a total incapacity pension and (where applicable) lump sum takes effect on the same day as the entitlement to payment of the retirement pension and lump sum.".

Avoidance of duplicate pensions
     32. In regulation E9—

(a) in paragraph (4), in the definition of "C" for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(b) in paragraph (6)(b) for "E5(3) or E6(3)" substitute "E5(6) and (7) or E6(5)".

Allocation of part of retirement pension
     33. Omit regulation E11.

Pensioner ceasing to be incapacitated
     34. —(1) At the end of the heading to regulation E13 insert "where application for payment was received before 6th January 2007".

    (2) In regulation E13(1) after "regulation E4(9) of the 1988 Regulations" insert "and where the person's application for payment under regulation E33(2) was received by the Secretary of State before 6th January 2007".

    (3) After regulation E13 insert—

" Pensioner ceasing to be incapacitated where application for payment was received on or after 6th January 2007
     E13A. —(1) This regulation applies where a person is entitled to a payment of a retirement pension by virtue of regulation E4(4) and the person's application for payment was received by the Secretary of State on or after 6th January 2007.

    (2) Paragraph (4) has effect where the person was entitled to payment of a total incapacity pension under regulation E8A but the person subsequently ceases to satisfy the condition contained in regulation E8A(2)(a).

    (3) For the purposes of paragraph (2) a person is treated as having ceased to satisfy the condition in regulation E8A(2)(a) if he takes up any employment unless—


(a) the employment which he takes up is not employment in a capacity described in Schedule 2 or employment as a teacher in an accepted school or with an accepted function provider,

(b) he provides the Secretary of State with a certificate from a registered medical practitioner that in the opinion of the medical practitioner he still meets the condition, and

(c) the Secretary of State determines that he still meets the condition.



    (4) Subject to paragraph (5), on the date on which the person ceases to satisfy the condition contained in regulation E8A(2)(a), the total incapacity pension referred to in regulation E8A ceases to be payable.

    (5) Where however the person satisfies the requirements of sub-paragraphs (a), (b) and (c) of paragraph (3) but satisfies the requirements of sub-paragraphs (b) and (c) of that paragraph after he has taken up the employment the total incapacity pension is payable again as from the date on which the person took up the employment.

    (6) Paragraph (8) has effect where the person subsequently ceases to be incapacitated.

    (7) For the purposes of paragraph (6) a person is treated as having ceased to be incapacitated if it takes up employment in a capacity described in Schedule 2 or as a teacher in an accepted school or with an accepted function provider.

    (8) On the date on which the person ceases to be incapacitated the person's retirement pension ceases to be payable, but any equivalent pension benefits continue to be payable.

    (9) Where paragraph (8) had effect, the retirement pension becomes payable again (subject to paragraph (10) and to regulation E33(2) (application for payment))—



(a) from the date on which the person attains his normal pension age, or

(b) if earlier, from the start of any renewed incapacity.



    (10) Paragraph (9) does not apply if the person has been in pensionable employment at any time after he first became entitled to payment of the retirement pension.

    (11) If the pension becomes payable again under paragraph (9)(a) it is to be treated for purposes of regulation E14 as one to the payment of which the person has become entitled by virtue of regulation E4(2).".

Abatement of retirement pension during further employment
     35. In regulation E14—

(a) for paragraph (1) substitute—

    " (1) Subject to paragraph (1B), this regulation applies while a person who has become entitled to payment of a teacher's pension is employed—


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


(i) his having made an election under regulation B5 (election for employment not to be pensionable), or

(ii) his having attained the age of 75,



(b) in full-time employment which is not pensionable employment by reason of the fact that the employment commenced on or after 1st April 1997 and the person falls within regulation B1(5A) but has not made an election under regulation B6(1A), or

(c) in part-time employment in a capacity described in paragraphs 1 to 9 of Schedule 2 which is not pensionable employment.",



(b) omit paragraph (1A),

(c) in paragraph (3)(a) for "(B+C-D)" substitute "B+C"

(d) in paragraph (3)(b)—



(i) for the definition of "B" substitute the following—


     " B is the salary of reference determined in accordance with paragraph (3A), (3B) or (3C)",


(ii) in the definition of "C" for "the pension" substitute—


" (i) where the salary of reference is determined in accordance with paragraph (3A), the pension, and

(ii) where the salary of reference is determined in accordance with paragraph (3B), the last day of employment at that salary.",



(iii) omit the definition of "D",



(e) after paragraph (3) insert the following—

    " (3A) The salary of reference for a person whose most recent entitlement to payment of a teacher's pension arose before 1st January 2007 is, or where his previous employment was part-time, is the full-time equivalent of, the highest annual rate of contributable salary that was payable to the person during the 3 years ending immediately before he became entitled to payment of the pension, or, if applicable, the highest annual rate of contributable salary that was payable to him during the 3 years ending immediately before he ceased to be employed in any pensionable employment entered into by him after he became entitled to payment of the pension, whichever is greater.

    (3B) The salary of reference for a person whose most recent entitlement to payment of a retirement pension arises on or after 1st January 2009 is —


(a) where the person's average salary was the amount specified in regulation E31(2) (a), the highest annual rate of contributable salary that was payable to him during the 365 days ending immediately before he became entitled to payment of the pension, or, if applicable, the highest rate of contributable salary that was payable to him during the 365 days ending immediately before he ceased to be employed in any pensionable employment entered into by him after he became entitled to payment of the pension, whichever is the greater, and

(b) where the person's average salary was the amount specified in regulation E31(2)(b) or (2A), the highest annual rate of contributable salary that was payable to him during his average salary service or, if applicable, the highest rate of contributable salary that was payable to him during any period of pensionable employment entered into by him after he became entitled to payment of pension, whichever is the greater



or, in either case, where the previous employment was part-time, the full-time equivalent of such salary.

    (3C) The salary of reference for a person whose most recent entitlement to payment of a retirement pension arises on or after 1st January 2007 but before 1st January 2009 is the salary referred to in paragraph (3A) or (3B) whichever is the higher.".

Retirement benefits on cessation of further employment
     36. In regulation E15—

(a) for paragraph (1) substitute—

    "(1) This regulation applies to—


(a) a person who became entitled to payment of a teacher's pension ("the first pension") and was subsequently in pensionable employment which commenced before 1st April 1997 ("the further employment"), or

(b) a person (not falling within sub-paragraph (a)) who became entitled to payment of a teacher's pension by virtue of regulation E4(3) or (4) or regulation E4(6) of the 1988 Regulations (incapacity) ("the first pension") and was subsequently in pensionable employment ("the further employment")



and (in either case) has ceased to be in the further employment.".

(b) in paragraph (2) after "E8 (enhancement of retirement benefits in case of incapacity)" insert "or if a total incapacity pension has not been paid under regulation E8A",

(c) in paragraph (4) after "regulation E8" insert "or if a total incapacity pension has been paid under regulation E8A",

(d) in paragraph (9)—


(i) in sub-paragraph (a) for "E5(3)" substitute "E5(6)",

(ii) in sub-paragraph (b) for "E6(3)" substitute "E6(5)".

     37. —(1) For the heading to regulation E15A substitute "Retirement benefits on cessation of further employment where regulation E15 does not apply"

    (2) In regulation E15A—

(a) for paragraph (1) substitute—

    " (1) This regulation applies to a person, other than a person to whom regulation E15 applies, who—


(a) was entitled to be paid a teacher's pension,

(b) has, after becoming entitled to a teacher's pension, re-entered pensionable employment ("the further employment"), and

(c) ceases to be in the further employment.",



(b) in paragraph (7) for "further employment which is pensionable by virtue of regulation B7" substitute "further employment such as is mentioned in paragraph (1)(b)".

Death grant
     38. In regulation E20—

(a) in paragraph (1)(b) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(b) in paragraph (2)—


(i) omit "or" at the end of sub-paragraph (b)(i),

(ii) for sub-paragraph (b)(ii) substitute—


" (ii) in the case of a death occurring on or after 1st April 1998 but before 1st January 2007, twice his average salary, or

(iii) in the case of a death occurring on or after 1st January 2007, three times his average salary,"



(c) in paragraph (6)(b) after "surviving civil partner" insert ", surviving nominated partner",

(d) for paragraph (7)(a) substitute—



" (a) if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,",



(e) in paragraph (7)(c) for "or surviving civil partner" substitute ", surviving civil partner or surviving nominated partner".

Supplementary death grant
     39. In regulation E21—

(a) in paragraphs (2),(3) and (3A) for "E5(3)" substitute “E5(6),

(b) in paragraph (4)—


(i) in sub-paragraph (a) for "E5(3)" substitute "E5(6) and (7)",

(ii) in sub-paragraph (b) for "E6(3)" substitute "E6(5)",



(c) for paragraph (6)(a) substitute—



" (a) if the deceased is survived by one widow, a widower, a surviving civil partner or a surviving nominated partner, to that person,",



(d) in paragraph (6)(c) for "or surviving civil partner" substitute ", surviving civil partner or surviving nominated partner".

Family benefits generally
     40. In regulation E22—

(a) in paragraph (1) after "surviving civil partners," insert "surviving nominated partners",

(b) for paragraph (1A) substitute—

    " (1A) Where a person was entitled to be paid a teacher's pension and, after becoming entitled to a teacher's pension, re-entered pensionable employment ("the further employment"), in calculating the benefits payable under regulations E24 to E30, the further employment shall not be taken into account but those regulations shall apply separately to the further employment as they apply to any other pensionable employment.",

(c) in paragraph (2)(a) and (b) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10".

Nomination of partner
     41. After regulation E22 insert—

" Nomination of partner
     E22A. —(1) A person (A) may nominate another person (B) to receive a pension by giving to the Secretary of State a declaration signed by both A and B that the condition in paragraph (2) has been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.

    (2) The condition is that—


(a) A is able to marry, or form a civil partnership with, B,

(b) A and B are living together as if they were husband and wife or as if they were civil partners,

(c) neither A nor B is living with a third person as if they were husband and wife or as if they were civil partners, and

(d) either B is financially dependent on A or A and B are financially interdependent.



    (3) But a nomination has no effect if the condition in paragraph (2) has not been satisfied for a continuous period of at least 2 years which includes the day on which the declaration is signed.

    (4) A nomination ceases to have effect if—



(a) either A or B gives written notice of revocation to the Secretary of State,

(b) A makes a subsequent nomination under this regulation,

(c) either A or B marries, forms a civil partnership or lives with a third person as if they were husband and wife or as if they were civil partners, or

(d) B dies.



    (5) B is A's surviving nominated partner if—



(a) the nomination has effect at the date of A's death, and

(b) B satisfies the Secretary of State that the condition in paragraph (2) was satisfied for a continuous period of at least 2 years immediately prior to A's death.



    (6) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.".

Nomination of other adult beneficiary
     42. —(1) For the heading to regulation E23 substitute "Nomination of other adult beneficiary".

    (2) In regulation E23—

(a) in paragraph (2) after "a previous nomination under this regulation" insert "or regulation E22A",

(b) in paragraph (4)(b) after "appointor" insert "makes a nomination under regulation E22A,".

Entitlement to short-term family benefits
     43. In regulation E24—

(a) in paragraph (1)(b) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(b) for paragraph (2)(a) substitute—


" (a) subject to paragraph (4), to the deceased's surviving spouse, surviving civil partner, surviving nominated partner or, where the conditions in regulation E26(6) are satisfied, his nominated beneficiary, and",



(c) omit paragraph (4)(b),

(d) in paragraph (4)(c) after "surviving civil partner," insert "surviving nominated partner,".

Amount and duration of short-term family benefits
     44. In regulation E25—

(a) in paragraph (2) for "surviving spouse or surviving civil partner" (in both cases) substitute "surviving spouse, surviving civil partner or surviving nominated partner",

(b) in paragraph (3) and the Table for "spouse, civil partner" (in both cases) substitute "surviving spouse, surviving civil partner, surviving nominated partner".

Entitlement to long-term family benefits
     45. In regulation E26—

(a) in paragraph (2) for "was in pensionable employment by virtue of an election under regulation B7" substitute "was entitled to be paid a teacher's pension and, after becoming entitled to a teacher's pension, re-entered pensionable employment",

(b) in paragraph (4) after "his surviving civil partner" insert ", his surviving nominated partner",

(c) in paragraph (6)(b) after "the deceased" insert "and was not living with someone as if they were husband and wife or as if they were civil partners",

(d) after paragraph (8) insert—

    " (9) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.".

Relevant service
     46. In regulation E27—

(a) in paragraph (1)(b) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(b) in paragraph (1)(c) for "regulation C4 or under Schedule 5" substitute "Schedule 4 or 5",

(c) in paragraph (2)(a) for "paragraph (1)(a), (b) and (d)" substitute "paragraph (1)(a) and (b)",

(d) in paragraph (2)(b) for "regulation C4" substitute "Schedule 4",

(e) in paragraph (2)(c) omit "and",

(f) in paragraph (2)(d)—


(i) for "transfer value offered in respect of him" substitute "transfer value (other than one mentioned in sub-paragraph (e)) offered in respect of her", and

(ii) for "acceptance of the transfer value." substitute "acceptance of the transfer value, and",



(g) after paragraph (2)(d) insert—



" (e) where a transfer value has been accepted in respect of comparable British service—


(i) any period which consists of, or is attributable to, service after 5^th April 1988, and

(ii) any other period which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to the deceased's widower.",



(h) in paragraph (2A)(b) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(i) in paragraph (2A)(c) for "regulation C4 or C5" substitute "Schedule 4 or 5",

(j) for paragraph (2A)(e) substitute—



" (e) where a transfer value has been accepted in respect of comparable British service—


(i) any period which consists of, or is attributable to, service after 5^th April 1988, and

(ii) any other period which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to the deceased's surviving civil partner, and",



(k) after paragraph (2A) insert—

    " (2B) Where the deceased is survived by a surviving nominated partner, the deceased's relevant service comprises, subject to paragraph (3)—


(a) any period of pensionable employment after 31^st December 2006,

(b) any period beginning after 31^st December 2006 in respect of which additional contributions have been paid under old regulation C9 or regulation C10,

(c) any period of reckonable service in respect of which family benefit contributions have been paid under Part IIB of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIB,

(d) where a transfer value has been accepted in respect of comparable British service, any period which consists of, or is attributable to, service which would, immediately before its acceptance, have counted in the relevant pension scheme for the payment of a pension to a person (other than the deceased's surviving spouse or surviving civil partner) with whom at the date of his death the deceased was living as if they were husband and wife or as if they were civil partners, and

(e) where the deceased entered pensionable employment after 31^st December 2006 and a transfer value (other than one mentioned in sub-paragraph (d)) has been accepted, any period counting as reckonable service by virtue of the acceptance of the transfer value.",



(l) after paragraph (3) insert—

    " (4) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.".

Amount of surviving spouse's, surviving civil partner's or nominated beneficiary's long-term pension
     47. —(1) For the heading to regulation E28 substitute "Amount of surviving spouse's, surviving civil partner's, surviving nominated partner's or nominated beneficiary's long-term pension".

    (2) In regulation E28—

(a) in paragraph (1) after "surviving civil partner" insert ", surviving nominated partner",

(b) in paragraph (2A) after "surviving civil partner" insert ", surviving nominated partner",

(c) in paragraph (6)(b) for "regulation C4" substitute "Schedule 4",

(d) in paragraph (6) (c) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(e) after paragraph (7A) insert—

    " (7B) If the pension is payable to a surviving nominated partner, the deceased's family benefit service, subject to paragraphs (3) and (8) to (10), comprises the relevant service described in regulation E27(2B).",

(f) in paragraph (8)(b) for "regulation C9 or 10" substitute "old regulation C9 or regulation C10",

(g) in paragraph (9) for "paragraphs (3) to (5), (7) and (7A)" (in both cases) substitute "paragraphs (3) to (5) and (7) to (7B)".

Amount of children's long-term pensions
     48. In regulation E29—

(a) in paragraph (1)(a) after "surviving civil partner" insert ", surviving nominated partner",

(b) for paragraph (1A) substitute—

    " (1A) Where an adult pension is payable to the surviving civil partner of a man, to the surviving civil partner of a woman whose nomination under regulation E23 ceased to have effect when she formed a civil partnership or to a surviving nominated partner, the annual rate of the children's pension is the appropriate fraction of the deceased's average salary multiplied by the sum of the notional family benefit service and the additional family benefit period.",

(c) in paragraph (8)—


(i) after "family benefit contributions have been paid" insert "(where the adult pension is paid to a surviving civil partner)", and

(ii) after "made under Part IIA" insert "or (where the adult pension is paid to a surviving nominated partner) under Part IIB of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIB".

Additional dependant's pension where election made under regulation C3C
     49. After regulation E29 insert—

" Additional dependant's pension where election made under regulation C3C
     E29A. —(1) Where an election (other than one which has ceased to have effect) was made under paragraph 5(b) or 12(b) of Schedule 2A by, or in respect of, the deceased, the annual rate of the pension referred to in regulation E25(1), E28(1), E29(1) and E29(1A) must be increased by half the additional pension.

    (2) The additional pension is the annual rate with which the deceased had been credited, increased as specified in regulation E5A(3).".

Commencement and duration of long-term family pensions
     50. In regulation E30—

(a) in paragraph (1) after "surviving civil partner" insert ", surviving nominated partner",

(b) in paragraph (3A) after "does not apply" insert "to any pension payable following the death of a person who was in pensionable employment after 31^st December 2006 or who was paying or had paid additional contributions under old regulation C9 or regulation C10 in respect of a period after that date or".

Average salary
     51. In regulation E31—

(a) for paragraphs (1) and (2) substitute—

    "(1) A person's average salary is either that specified in paragraph (2) or calculated in accordance with regulation E31A.

    (2) Where—


(a) the person's full salary in the last 365 days of his average salary service is greater than the salary determined under regulation E31A(3), or

(b) the person has an average salary service of 365 days or less,



the person's average salary is (subject to paragraph (11)) his full salary in the last 365 days of his average salary service.

    (2A) Where the salary determined under regulation E31A(3) is greater than the person's full salary in the last 365 days of his average salary service the person's average salary is that specified in regulation E31A.".

(b) omit paragraph (4),

(c) for paragraph (5) substitute the following—

    " (5) For the purposes of paragraphs (2), (2A) and (11) periods when the person was not in pensionable employment shall be disregarded and accordingly the periods of 365 days and 1095 days referred to in paragraphs (2), (2A) and (11) may be discontinuous.",

(d) in paragraph (6) omit "(2)",

(e) in paragraph (7)(b) for "regulation C9 or, as the case may be, C10" substitute "old regulation C9 or, as the case may be, regulation C10",

(f) after paragraph (10) insert the following—

    " (10A) Paragraph (11) applies where (disregarding the effect of that paragraph) a person's average salary would be that specified in paragraph (2),"

(g) in paragraph (11) for "where at any time during the material part of a person's average salary service a person has received" substitute "where at any time during the last 1095 days of his average salary service a person to whom this paragraph applies has received",

(h) in paragraph (12)(b)(ii) for "E28 (amount of surviving spouse's, surviving civil partner's or nominated beneficiary's long-term pension)" substitute "E28 (amount of surviving spouse's, surviving civil partner's, surviving nominated partner's or nominated beneficiary's long-term pension)",

(i) in paragraph (14)(a) after "lump sum payment" insert "(where regulation E6 applies to the person)",

(j) after paragraph (14) insert—

    " (14A) For the purposes of this regulation, in computing periods consisting of numbers of days, no account shall be taken of a leap year day (29th February) except as provided by paragraph (14B).

    (14B) Where however a person's average salary service ends in a leap year on or after the leap year day that leap year day shall be included in the period of 365 days referred to in paragraph (2).".

     52. After regulation E31 insert—

" Average salary – supplemental
     E31A. —(1) This regulation has effect for the purpose of determining a person's salary where regulation E31(2A) applies ("the alternative average salary").

    (2) In this regulation "salary period" is each period in which the person's salary rate is unchanged.

    (3) The average of the person's full salary for the best consecutive 1095 days of average salary service (increased as specified in paragraph (4)) during the period of 10 years ending on the last day of the person's average salary service shall first be determined.

    (4) For the purposes of paragraph (3) the person's full salary for each salary period is increased by the amount (if any) by which, immediately before the end of the person's average salary service, it would have increased if it had been the annual rate of an official pension within the meaning of section 5(1) of the Pensions Increase Act 1971 beginning, and first qualifying for increases under that Act, on the same day as the salary period ended.

    (5) The alternative average salary is the average of the actual full salary for the 1095 days which, resulting from and in accordance with the determination under paragraph (3), are the best consecutive 1095 days of average salary service, multiplied by A/B.

    (6) "A" in paragraph (5) is the annual rate of retirement pension to which the person would have been entitled by virtue of these Regulations if—


(a) in calculating the person's full salary for each salary period the person's full salary for that period had in fact been increased as specified in paragraph (4), and

(b) the Pensions (Increase) Act 1971 did not apply.



    (7) "B" in paragraph (5) is the annual rate of retirement pension to which the person would have been entitled by virtue of the combined effect of these Regulations and the increase effected by the Pensions (Increase) Act 1971 up to the last day of the person's average salary service, if the person's average salary had been the amount determined under paragraph (5) without the multiplication by A/B.

    (8) For the purposes of paragraph (3) periods when the person was not in pensionable employment shall be disregarded, except in relation to the period of 10 years, and accordingly the 1095 days referred to in paragraphs (3) and (5) may be discontinuous.

    (9) In computing the period of 1095 days referred to in paragraphs (3) and (5) no account shall be taken of a leap year day (29th February).

    (10) Where however a person's average salary service ends in a year on or after the leap year day that leap year day shall be included in the period of 1095 days referred to in paragraphs (3) and (5).

    (11) In this regulation "full salary" has the same meaning as in regulation E31.".

Effective reckonable service
     53. In regulation E32—

(a) omit paragraph (2)(b),

(b) in paragraph (4) for "the age of 60" substitute "the normal pension age".

Payment of benefits
     54. In regulation E33—

(a) after paragraph (2) insert—

    " (2A) Where the application for payment is made on the basis that the person is entitled to retirement benefits under regulation E4(3) or (4)(incapacity), the application shall—


(a) where the person falls within regulation E4(4)(c)(i)(aa) or (bb), be signed by, or on behalf of, the person's employer, and

(b) shall be accompanied by all medical evidence necessary to determine whether the person falls within regulation E4(3) or (4) and, where applicable, that the person's ability to carry out any work is impaired by more than 90% and is likely permanently to be so.".



(b) In paragraph (3) after "any relevant information" insert "(including medical evidence such as is mentioned in paragraph (2A))".

Interest on late payment of certain benefits
     55. In regulation E34—

(a) in paragraph (1) after "pension payable under" insert "regulation E4A or",

(b) after paragraph (4) insert—

    " (4A) Where, pursuant to regulation E13A(5) a total incapacity pension is payable again as from the date on which the person took up employment the person shall, for the purposes of this regulation, be treated as having become entitled to the total incapacity pension again on the date on which the Secretary of State determines that the person still meets the condition specified in regulation E8A(2)(a)."

Benefits not assignable
     56. In regulation E35(2) omit "An allocation under regulation E11 is not an assignment, and".

Payment of transfer values
     57. In regulation F1(4A)(b)(ii) after "his 60th birthday" insert "in the case of a pre-2007 entrant or his 65th birthday in any other case".

Acceptance of transfer values
     58. In regulation F4(7)(b) after "his 60th birthday" insert "in the case of a pre-2007 entrant or his 65th birthday in any other case".

Receipts etc. to be credited
     59. In regulation G2—

(a) in paragraph (2)(a) for "regulations C3(1) and (3), C4, C5, C6, C8, C11 and paragraph 36 of Schedule 10" substitute "regulations C3(1) and (3), C3C, C8 and C11, Schedules 4 and 5 and paragraph 36 of Schedule 10",

(b) in paragraph (2)(c) and (3)(c) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10".

Employers' contributions
     60. For regulation G5 substitute—

" Employers' contributions
     G5. —(1) In this regulation—


(a) "relevant period" is to be construed in accordance with regulation G4(3),

(b) the "net contribution rate" for any relevant period is the aggregate of the percentage specified for that period under regulation G4(3) and any percentage specified for that period under regulation G4(7) less any percentage specified for that period under regulation G4(8).



    (2) The employer of a person in pensionable employment, other than a services education officer, is, during every relevant period, to pay contributions of the required percentage of the person's contributable salary for the time being.

    (3) The required percentage for the relevant period starting on 1st January 2007 is 14.1% .

    (4) The required percentage for subsequent relevant periods shall be determined in accordance with paragraphs (5) to (9).

    (5) For the purposes of this regulation the element appropriate for cost sharing in relation to any relevant period is that part of the difference between the net contribution rate for that period and the net contribution rate for the previous period determined by the Secretary of State in relation to each relevant period and in making such a determination the Secretary of State shall secure that—



(a) changes in assumptions about life expectancy and differences between assumptions made in the previous review under regulation G4 about the values of any items and the actual values of those items are included in the element appropriate for cost sharing, and

(b) any reduction in the net contribution rate arising from the fact that the normal retirement age for —


(i) a 2007 or later entrant, or

(ii) a person with mixed service



is 65, is not included in the element appropriate for cost sharing.



    (6) In relation to any relevant period the Secretary of State shall also calculate separately the part of the difference between the net contribution rate for that period and the net contribution rate for the previous period which is not appropriate for cost sharing ("the unshared element") and the Secretary of State shall then—



(a) determine the part of the unshared element which is appropriate for the employer contribution cap, and

(b) calculate separately the part of the unshared element which is not appropriate for the employer contribution cap.



    (7) Any determination made by the Secretary of State pursuant to paragraph (5) or (6) shall be made after consultation with such representatives of local education authorities and of teachers as appear to the Secretary of State to be appropriate and with the consent of the Treasury.

    (8) In paragraphs (9) and (10)—



     X is the element appropriate for cost sharing determined pursuant to paragraph (5),

     Y is the part of the unshared element which is appropriate for the employer contribution cap, determined pursuant to paragraph (6)(a), and

     Z is the part of the unshared element which is not appropriate for the employer contribution cap, calculated in accordance with paragraph (6)(b),



and X, Y and Z may be positive or negative depending on whether there is an increase or a decrease.

    (9) In the formula in paragraph (10) A is the lesser of B and C+Y+1/2X where—



(a) B is—


(i) for the relevant period immediately after the one starting on 1st January 2007, 14, and

(ii) for each subsequent relevant period, the value which B had for the previous relevant period together with the value of Z which applied in determining the required percentage for the previous relevant period, and



(b) C is—



(i) for the relevant period immediately after the one starting on 1st January 2007, 14.1,

(ii) for the next relevant period, the amount which would have been the required percentage for the previous relevant period if it had been calculated as 14.1+Y+1/2X+Z, and

(iii) for each subsequent relevant period, the amount which would have been the required percentage for the previous relevant period if it had been calculated as D+Y+1/2X+Z, where D is the amount which would have been the required percentage for the relevant period before the previous relevant period calculated in accordance with this sub-paragraph.



    (10) The required percentage for each relevant period is A+Z.

    (11) Paragraph 9 of Schedule 15 has effect for the purpose of determining the required percentage for relevant periods before the relevant period starting on 1st January 2007.

    (12) No contributions are to be paid in respect of any person to whom regulation E32(2) (a) (restriction of reckonable service to 45 years) has become applicable.".

Employers' additional contributions
     61. In regulation G8 —

(a) in paragraph (1) after "elected under" insert "old",

(b) after paragraph (1) insert—

    " (1A) Where an employer has elected under regulation C3C to pay additional contributions in respect of a person, payment to the Secretary of State of the lump sum referred to in paragraph 12 of Schedule 2A shall be made within the period referred to in paragraph 27(a) of that Schedule.",

(c) in paragraph (9)(a) and (c) for "regulation B7(2)(c)" substitute "regulation B6(5)".

Modified application in case of employment at reduced salary
     62. In regulation H1(1)—

(a) for sub-paragraph (a) substitute—


" (a) a person who has been in pensionable employment either—


(i) continues to be employed by the same employer at a reduced rate of contributable salary, where the reduced rate of contributable salary had effect before 1st January 2007, or

(ii) ceases to be employed before 1st January 2007 and is re-employed before 1st February 2007 (whether by the same or a different employer) as a reduced rate of contributable salary, and",



(b) for sub-paragraph (d) substitute—



" (d) the relevant employer notifies the Secretary of State in writing of the matters specified in paragraph (2) before 1st March 2007.",



(c) for sub-paragraph (f) substitute—



" (f) where he was not, immediately before 1st January 2007, in pensionable employment by virtue of regulation B7 as it had effect before 1st of January 2007.".

Repayment of contributions where an election is not made under regulation G8
     63. In regulation H6(3) in the definitions of "A" and "B" for "regulation C3, C4, C6 or C11" substitute "regulation C3 or C11 or Schedules 4 or 5".

Declaration where lump sum payments are made
     64. After regulation H6 insert—

" Declaration where lump sum payments are made
     H6A. —(1) The Secretary of State may, before paying any lump sum under regulations E4A,E6, E6A, E19A, E31(14), I3 or I5A require the person to whom the payment is to be made to provide a declaration as specified in paragraph (2) by a date determined by the Secretary of State.

    (2) The declaration is a declaration, in a form specified by the Secretary of State, signed by the person, to the effect that paragraph 3A of Schedule 29 to the Finance Act 2004[9] (recycling of lump sum) does not apply.

    (3) Where no such declaration is received by the Secretary of State by the date referred to in paragraph (1) —


(a) where the payment in question would otherwise have been a lump sum under regulation E4A, E6A, or I5A, the Secretary of State may treat the election under regulation E4A, E6A or I5A as being of no effect,

(b) where the payment in question would otherwise have been a lump sum under regulation E6, E31(14) or I3, the Secretary of State may, in place of the lump sum, pay an additional pension representing the value of the lump sum,

(c) where the payment in question would otherwise have been a lump sum under regulation E19A, the Secretary of State need not pay the lump sum.



    (4) The amount of the additional pension referred to in paragraph (3)(b) shall be determined by the Secretary of State after taking advice from the Government Actuary.".

Consequential amendments of the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994
     65. In regulation H11 omit paragraphs (11) to (14).

Pension sharing - normal pension age
     66. After regulation I2 insert—

" Normal Pension Age
     I2A. —(1) For the purposes of this Part a pension credit member's normal pension age is, subject to paragraph (2),the normal pension age of the corresponding debit member.

    (2) Where—


(a) the corresponding debit member is a person with mixed service, and

(b) at the time when the relevant arrangement referred to in section 28 of the 1999 Act took effect the corresponding debit member had not ceased to be a pre-2007 entrant by virtue of regulation EA1(4),



the pension credit member's normal pension age shall be 60.".

Pension credit benefits
     67. In regulation I3—

(a) in paragraph (1) after "shall consist of a pension and" insert "(where paragraph (3) applies)",

(b) after paragraph (2) insert —

    " (2A) Paragraph (3) applies where the pension credit member's normal pension age is 60.",

(c) at the beginning of paragraph (3) insert "Where this paragraph applies,",

(d) in paragraph (5) for "the age of 60" substitute "the normal pension age".

Commutation
     68. In regulation I5(1) and (2) for "the age of 60" substitute "the normal pension age".

     69. After regulation I5 insert—

" Commutation on election by pension credit member
     I5A. —(1) A pension credit member may, by an election made with the application for payment under regulation E33(2), elect to receive a further lump sum of such amount as is specified in the election (subject to paragraph (2)) in place of part of his pension.

    (2) The amount of such lump sum must be a multiple of £12 and cannot exceed—


(a) in the case of a pension credit member with a normal pension age of 65, his permitted maximum, and

(b) in the case of a pension credit member with a normal pension age of 60, his permitted maximum less the lump sum paid under regulation I3(3).



    (3) Where a lump sum is paid under this regulation the annual rate of the pension credit member's pension is reduced by £1 for every £12 of lump sum.".

Death grant
     70. In regulation I7(3)(a), (3)(b) and (4)(b) for "the age of 60" substitute "the normal pension age".

Glossary of expressions
     71. In Schedule 1—

(a) After the definition of "The 1988 Regulations" insert—



"2007 or later entrant"

Construe in accordance with regulation EA1(9) .",

(b) Insert the following definitions at the appropriate place in alphabetical order—



"Career break"	A period when, with the agreement of the person's former employer, the person is not in pensionable employment but expects to return to employment with the same employer and during which the person does not take up any other employment
"Normal pension age"	Construe in accordance with regulation EA1(10) or, where applicable regulation I2A
"Old regulation C4"	Regulation C4 as it had effect immediately before 1st January 2007
"Old regulation C5" and "old regulation C9"	Regulation C5 or C9 as it had effect immediately before 1st January 2007 and as it has effect on and after that date by virtue of paragraph 8 or 9 of Schedule 5 to the Teachers' Pensions etc. (Reform Amendments) Regulations 2006
"Permitted maximum"	Construe in accordance with paragraph 2 of Schedule 29 to the Finance Act 2004[10]
"Person with mixed service"	Construe in accordance with regulation EA1(8)
"Phased retirement benefits"	Construe in accordance with regulation E4A(1)
"Post-break employment start"	Construe in accordance with regulation EA1(7)
"Pre-2007 entrant"	Construe in accordance with regulation EA1(2)
"Relevant break of service"	Construe in accordance with regulation EA1(5)
"Retail prices index"	The index of retail prices published by the Office for National Statistics
"Surviving nominated partner"	Construe in accordance with regulation E22A(6)",

(c) for the definition of "appropriate factor" substitute—



"Appropriate factor"

" A factor from time to time specified in relation to the age of a person by the Secretary of State after taking advice from the Government Actuary, and different factors may be specified— (a) for persons with a normal pension age of 60, for persons with a normal pension age of 65, and for persons to whom Part VI of Schedule 10 applies, and (b) for different provisions of these Regulations. ",

(d) for the definition of "retirement lump sum" substitute—



"Retirement lump sum"

A retirement lump sum payable under Part E (including any retirement lump sum paid as part of phased retirement benefits).",

(e) for the definition of "retirement pension" substitute—



"Retirement pension"

" A retirement pension payable under Part E including— (a) any retirement pension paid as part of phased retirement benefits, and (b) except in regulation E13A, a total incapacity pension paid pursuant to regulation E8A",

(f) in the definition of "actuarial reduction" for "E5(3) or E6(3)" substitute "E5(6) and (7) or E6(5)",

(g) at the end of the definition of "average salary" insert "or, where applicable, regulation E31A",

(h) for paragraph (a)(i) and (ii) of the definition of "entitled" substitute—

" (i) has not yet attained the normal pension age, or

(ii) regardless of his age has ceased to be in further employment in circumstances where regulation E15A applies, and",

(i) for paragraph (b) of the definition of "excluded employment" substitute—

" (b) being in part-time employment—


(i) has not made an election pursuant to regulation B1(4), where such an election is required pursuant to that paragraph for part-time employment to be pensionable, or

(ii) is at the same time in full-time employment.".

Elections in respect of additional benefits
     72. After Schedule 2 insert as Schedule 2A the Schedule set out as Schedule 4 to these Regulations.

Maximum length of additional periods
     73. In Schedule 3—

(a) omit paragraphs 1 and 2,

(b) in paragraph 3 before "regulation C4" insert "old".

Additional contributions for past period under old regulation C4
     74. At the end of the heading to Schedule 4 insert "UNDER OLD REGULATION C4".

     75. In Schedule 4—

(a) for the definitions of "the principal election", "the past period" and "the contribution period" substitute—

" "the principal election" means the election under old regulation C4(2);
"the past period" means the period specified in that election pursuant to old regulation C4(7)(a);
"the contribution period" means the period specified in that election pursuant to old regulation C4(7)(c)“.",

(b) in paragraph 1(3) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(c) in paragraph 1(3)(b) before "regulation C9(7)(a)" insert "old",

(d) in paragraph 3 omit "Subject to paragraphs 4 and 5",

(e) omit paragraphs 4 and 5,

(f) in paragraph 6(2) for "such sum as would be payable under Part II of this Schedule" substitute "the actuarial equivalent of the additional contributions that would have been payable",

(g) in paragraph 9(3) for "such amount as would be payable under Part II of this Schedule" substitute "the actuarial equivalent of the additional contributions that would have been payable",

(h) omit paragraph 11,

(i) in paragraph 12—


(i) insert "and" at the end of sub-paragraph (2)(b) and omit "and" at the end of sub-paragraph(2)(c),

(ii) omit sub-paragraph (2)(d).

Additional contributions for past periods under earlier provisions
     76. In Schedule 5—

(a) in paragraph 1(1)—


(i) for "Subject to sub-paragraphs (2) to (5) and paragraphs 2, 3 and 4" substitute "Subject to paragraphs 3 and 4"

(ii) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",



(b) omit paragraphs 1(2) to (5) and 2.

(c) in paragraph 3—



(i) omit "or 2",

(ii) for "regulation C4" substitute "Schedule 4",



(d) omit paragraphs 6(3) and 9(5).

(e) in paragraph 10 for "regulation C9 or C10" substitute "old regulation C9 or regulation C10".

Family benefits
     77. In Schedule 6—

(a) in paragraph 10(1)(b) for "C4, C6, C9 or C10" substitute "old regulation C9, regulation C10 or Schedules 4 or 5",

(b) for paragraph 12(1) substitute—

    " (1) Subject to sub-paragraph (2) and except as otherwise provided in Part III, where payment is to be made by method A, the payment period (in years) is A/B × C, where A is the period (in years) specified under paragraph 11(1)(b), B is the rate specified under paragraph 11(1)(d), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part.

    (1A) The multiplier determined for the purpose of this Part may differ depending on whether the election is made under paragraph 10(1) or 10(2).",

(c) omit Table 5,

(d) in paragraph 12(2)—


(i) omit “("the Table period")“, and

(ii) for "in which the Table period ends" substitute "in which that period ends",



(e) for paragraph 12(3) substitute—

    " (3) Where payment is to be made by Method B, the lump sum payable, which must be paid within 3 months after its amount is notified by the Secretary of State, is A × B × C, where A is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part, B is the period (in years) in respect of which the election was made, and C is the appropriate amount.",

(f) for paragraph 13B(3) substitute—

    " (3) Except as otherwise provided in Part III, the payment period (in years) is A/B × C, where A is the period (in years) specified under paragraph 13A(5), B is the percentage rate specified under paragraph 13A(6), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying person.",

(g) omit Table 5A,

(h) in paragraph 13C(2) for "1.9% if the qualifying person is a man and 1.7% if the qualifying person is a woman" substitute "the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the qualifying person",

(i) after Part IIA insert—

" PART IIB
CONTRIBUTIONS: SURVIVING NOMINATED PARTNERS
     13D. —(1) A person (other than a person who has previously made an election under sub-paragraph (2)) who has nominated a person under regulation E22A is a qualifying person for the purposes of this Part while—


(a) the nomination continues to have effect, and

(b) he is in pensionable employment.



    (2) A qualifying person may by giving notice in writing to the Secretary of State before the end of the election period elect to pay family benefit contributions attributable to a period of his reckonable service which is not relevant service as mentioned in regulation E27(2B).

    (3) An election under sub-paragraph (2) must be accompanied by a declaration signed by the qualifying person that he is in normal health.

    (4) If a qualifying person dies before the end of the election period without making an election under sub-paragraph (2), his surviving nominated partner may by giving notice in writing to the Secretary of State within 3 months of the qualifying person's death elect to pay family benefit contributions attributable to a period of the qualifying person's reckonable service which is not relevant service as mentioned in regulation E27(2B).

    (5) The election period begins on the day on which the qualifying person makes the nomination and ends on the earlier of the day on which—



(a) any election he makes under regulation B5 has effect,

(b) he has been a qualifying person for a period of 6 months in relation to that nomination.



    (6) The person who makes an election under this paragraph must specify in the notice the period in respect of which the election is made, which must be either the whole of the qualifying person's reckonable service which is not relevant service as mentioned in regulation E27(2B) or such part of such service as consists of one or more whole years.

    (7) Where an election is made under sub-paragraph (2), the qualifying person must state in the notice whether family benefit contributions are to be paid by Method 1 (monthly payments) or by Method 2 (lump sum) and, if the former, must specify the percentage rate of his contributable salary at which they are to be paid, which must comply with paragraphs 14(2) and (3).

    (8) Where a qualifying person's pensionable employment is part-time, for the purpose of specifying (under sub-paragraph (7)) a percentage rate at which family benefit contributions are to be paid or varying (under paragraph 14(4)) that rate, sub-paragraph (7) and paragraph 14(2) have effect as if the reference to the qualifying person's contributable salary were to his full-time equivalent salary.

    (9) Except as provided in paragraph 14(4), an election under this paragraph is irrevocable.

     13E. —(1) This paragraph applies where—



(a) the qualifying person states under paragraph 13D(7) (in accordance with an election made under paragraph 13D(2)) that family benefit contributions are to be paid by Method 1, and

(b) the payment period exceeds a year.



    (2) Where this paragraph applies, except as otherwise provided in Part III, the qualifying person must pay family benefit contributions to the Secretary of State by way of monthly payments from his contributable salary at the percentage rate specified under paragraph 13D(7) or, where the rate is varied under paragraph 14(4), at the specified higher rate for the duration of the payment period.

    (3) Except as otherwise provided in Part III, the payment period (in years) is A/B × C, where A is the period (in years) specified under paragraph 13D(6), B is the percentage rate specified under paragraph 13D(7), and C is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the person nominated under regulation E22A.

    (4) Where the payment period would (apart from this sub-paragraph) end on a day other than the last day of a month, the payment period ends with the last day of the month in which it would otherwise end.

     13F. —(1) Except where paragraph 13E applies, the person who makes an election under paragraph 13D must pay family benefit contributions to the Secretary of State by way of a lump sum calculated in accordance with the Method 2 formula in sub-paragraph (2) within 3 months of receiving written notice of the amount of the lump sum.

    (2) The Method 2 formula is A × B × C,



where—
A is the multiplier determined from time to time by the Secretary of State (after taking advice from the Government Actuary) for the purpose of this Part for a person of the same sex as the person nominated under regulation E22A,
B is the period (in years) specified under paragraph 13D(6), and
C is the annual rate of the qualifying person's contributable salary.",

(j) in paragraph 14(1)(c) after "paragraph 13B (Method 1)" insert "or paragraph 13D (Method 1)",

(k) in paragraph 14(3) for "regulation C4 or C6" substitute "Schedules 4 or 5",

(l) in paragraph 14(7) and (11) for "regulation C9 or C10" substitute "old regulation C9 or regulation C10",

(m) in paragraph 15—


(i) in sub-paragraph (2) for "the age of 60" substitute "the normal pension age",

(ii) in sub-paragraph (2)(b) after "his 60th birthday" insert "in the case of a pre-2007 entrant or his 65th birthday in any other case",

(iii) after sub-paragraph (2) insert—

    " (2A) But sub-paragraph (2) does not apply in a case to which sub-paragraph (2B) applies.

    (2B) This sub-paragraph applies in a case where—


(a) the qualifying person dies before attaining the normal pension age or becomes entitled to payment of retirement benefits by virtue of regulation E4(4),

(b) family benefit contributions were payable by monthly payments under paragraph 13D (Method 1), and

(c) the Secretary of State is not satisfied that the declaration under paragraph 13D(3) was made in good faith.",


(iv) in sub-paragraph (3) for "the age of 60" substitute "the normal pension age, or in a case to which sub-paragraph (2B) applies",



(n) in paragraph 16 after "surviving civil partner" insert ", surviving nominated partner".

Early Retirement Factors
     78. Omit Schedule 9.

Modified application in certain cases
     79. In Schedule 10—

(a) in paragraph 1 for the definition of "part-time teacher" substitute—

" "part-time teacher" means a person whose part-time employment is pensionable employment;".

(b) in paragraph 16(1) for "regulation C4" substitute "Schedule 4",

(c) omit paragraph 21,

(d) in paragraph 28A —,


(i) for sub-paragraph (1) substitute—

    " (1) Where regulation E5(6) applies to a person who is also entitled to an annual pension in respect of admitted service the rate of that pension is the rate calculated in accordance with paragraph 28(1) multiplied by the appropriate factor.".

(ii) for sub-paragraph (ii) substitute—

    " (2) Where regulation E6(5) applies to a person who is also entitled to a lump sum in respect of admitted service then the amount of the lump sum is the amount calculated in accordance with paragraph 28(2) multiplied by the appropriate factor.".

(e) in paragraph 30 for "the age of 60" substitute "the normal pension age",

(f) in paragraph 37 for "the age of 60" in both places where those words occur substitute "the normal pension age".

Allocation of part of retirement pension
     80. Omit Schedule 11.

Savings and transitional provisions
     81. In paragraph 9(2)(b) of Schedule 15 for "determined in accordance with substituted regulation G7(10)" substitute "13.5% ".

then, despite the provisions of paragraph 2(a) of Schedule 2 to these Regulations and without prejudice to section 16 of the Interpretation Act 1978[11], the governing body of the institution within category D shall continue to make or abate payments of compensation to or in respect of the person in accordance with Parts IV or V of the 1997 Compensation Regulations and shall be entitled to adjust such payments in accordance with those regulations.

    (2) Where former employment fell within category G for the purposes of regulation 29(3) of the 1997 Compensation Regulations, it shall be regarded as falling within category D where sub-paragraph (1) applies.

     4. —(1) Regulation 13 of the 1997 Compensation Regulations shall (despite paragraph 6 of Schedule 2) continue to have effect where a declaration was delivered to the compensating authority pursuant to paragraph (2) of that regulation before 1st January 2007.

    (2) Where regulation 13 of the 1997 Compensation Regulations continues to have effect pursuant to paragraph (1)—

(a) the references in paragraphs (3) and (6)(a) of those regulations to regulation E5(3) of the Pensions Regulations shall have effect as references to regulation E5(6) and (7) of the Pensions Regulations,

(b) regulation 15(7) of the 1997 Compensation Regulations shall have effect without the amendment made by paragraph 7 of Schedule 2.

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

[3] S.I.1994/2924; relevant amending regulations are S.I. 2000/666, 2000/3028 and 2006/736.back

[4] S.I. 1997/311; relevant amending regulations are S.I.1998/2256 and 2005/2198.back

[5] S.I 1997/3001; relevant amending regulations are S.I. 1998/2255, 1999/607, 2000/665 , 2000/3028, 2004/587, 2005/2198 2006/736 and 2006/2214.back

[6] Paragraph 3A of Schedule 29 to the Finance Act 2004 was inserted by section 159 of the Finance Act 2006 (c. 25).back

[7] 2004 c.12; paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006 (c.25).back

[8] 1971 c. 56 to which there are amendments not relevant to this regulation.back

[9] 2004 c. 12; paragraph 3A of Schedule 29 was inserted by section 159 of the Finance Act 2006 c .25.back

[10] 2004 c.12.back

[11] 1978 c.30.back

 © Crown copyright 2006