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1. "The Teachers' Superannuation (Scotland) Amendment Regulations 2007

Part-1

1.      Citation and commencement

These Regulations may be cited as the Teachers' Superannuation (Scotland) Amendment Regulations 2007 and shall come into force on 1st April 2007.

2.      Amendment of the Teachers' Superannuation (Scotland) Regulations 2005

The Teachers' Superannuation (Scotland) Regulations 2005(3) shall be amended in accordance with regulations 3 to 83 of these Regulations.

3.  

In regulation B1 (full time service), B4 (continuing employment) and B5(1) (accepted school) for “B9” substitute “B8”.

4.

(1)       Regulation B2 (part-time service) is amended as follows.

(2)       In paragraph (1) for “B9” substitute “B8”.

(3)       After paragraph (5) insert–

“(5A)      Where the election is made by a teacher with mixed service and, pursuant to paragraph (5), has effect from a date earlier than that referred to in paragraph (4) all pensionable employment during the back period shall be treated as having occurred after the post-break employment start.

(5B)        Where the election is made by a 2007 or later entrant and, pursuant to paragraph (5), has effect from a date earlier than that referred to in paragraph (4) all pensionable employment during the back period shall be treated as having occurred on or after 1st April 2007.”.

5.

(1)               Regulation B6 (employment not pensionable) is amended as follows.

(2)               In paragraph (1) for “under 70” substitute “under 75”.

(3)               For paragraph (5) substitute–

“(5)         This paragraph applies to a teacher who, between 1st April 1997 and 30th September 2001–

(a)               was entitled to be paid a teacher’s pension, including cases where the annual rate of pension had been reduced to zero in accordance with regulation E18; and

(b)               commenced employment (“the further employment”) which would, apart from regulation B5(5) of the 1992 Regulations have been pensionable employment.

(6)          A teacher to whom paragraph (5) applies is not in pensionable employment in respect of the further employment unless he or she makes an election under regulation B8.”.

6.     

In regulation B7 (election for employment not to be pensionable) after paragraph (2) insert–

“(2A)   If the teacher is, or expects to become, a party to more than one contract of employment, then each employment shall cease to be pensionable employment and shall be excluded employment.”.

7.

(1)               Regulation B8 (resumption of pensionable status) is amended as follows.

(2)               After paragraph (1) insert–

“(1A)      A teacher to whom regulation B6(5) applies or has applied who is in employment which would otherwise have been pensionable employment may at any time, by giving written notice to the Scottish Ministers, make an election under this regulation.”.

(3)       In paragraph (3) after “paragraph (1)(a)” insert “or, subject to paragraph (4A), paragraph (1A)”.

(4)       After paragraph (4) insert–

“(4A)      Where the teacher making the election falls within paragraph (1A) and is in the same employment as he or she was in immediately before 1st April 2007 the election may, provided that the contributions payable under regulation C4A and H5A are paid, have effect on such date earlier than that specified in paragraph (3) as the employer agrees.

(4B)        The earlier date referred to in paragraph (4A) may not however be a date before 1st October 2001 or the date on which the further employment commenced, if that was after 1st October 2001.

(4C)       Where the election under paragraph (1A) is made by a teacher with mixed service and the election has effect, pursuant to paragraph (4A), on a date earlier than that specified in paragraph (3) all pensionable employment before the date specified in paragraph (3) shall be treated as having occurred–

(a)       after the post-break employment start, where the election is made by a person with mixed service; or

(b)       on or after 1st April 2007, where the election is made by a 2007 or later entrant.”.

8.  

Omit regulation B9 (further employment).

9.

(1)                     Regulation C2 (salary on which contributions are payable – election) is amended as follows.

(2)                     In paragraph (6)(c)(i) for “regulation C8 or C9” substitute “regulation C9”.

(3)                     Omit paragraph (11).

(4)                     For paragraph (12) substitute–

“(12)    Paragraph (1) shall not apply where a teacher was in pensionable employment (before 2nd December 2006) by virtue of regulation B9 as it had effect before 1st April 2007.”.

10. 

For regulation C3 (ordinary contributions) substitute–

C3.        “Ordinary contributions

(1)               In this regulation “relevant period” is to be construed in accordance with regulation H2(6).

(2)               Subject to paragraph (3), a teacher who is in pensionable employment is to pay contributions of–

(a)               6% of his or her contributable salary for the time being in respect of any period before 1st April 2007;

(b)               6.4% of his or her contributable salary for the time being in respect of the relevant period starting on 1st April 2007; and

(c)               X% of his or her contributable salary for the time being in respect of any subsequent relevant period, where X has the same value as that determined by the Secretary of State from time to time in accordance with regulation C3(2)(c) of the Teachers' Pensions Regulations 1997(4).

(3)       A teacher who has made an election under regulation C2(1) shall, in addition to the contributions referred to in paragraph (2), pay contributions of the required percentage of the difference between the teacher’s actual contributable salary and the contributable salary at the rate referred to in regulation C2(4) to the extent that such contributions are not paid by any employer referred to in regulation H4 under an election mentioned in that regulation.

(4)       No contributions are to be paid by a teacher in respect of any reckonable service beyond a total of 45 years.”.

11.   

After regulation C4 (contributions where an election under regulation B2(4) has been made) insert–

C4A.      “Contributions where an election under regulation B8(1A) is to take effect from an earlier date

(1)       This regulation applies where–

(a)               a teacher has elected under regulation B8(1A) that his or her further employment should be pensionable; and

(b)               his or her employer has agreed under regulation B8(4A) that the election should have effect from a date earlier than the first day of the month after that in which the notice was given.

(2)       Where this regulation applies the teacher shall–

(a)               pay the contributions calculated in accordance with regulation C3(2) and treated as due on the last day of each month for the period starting with such earlier date and ending immediately before the first day of the month after that in which the notice was given; and

(b)               pay interest on each such contribution at 7% per annum, compounded with monthly rests from the eighth day after the end of the month in which that contribution was due to the date of its payment.

C4B.      Election in respect of additional benefits

(1)               Any teacher in pensionable employment who has not attained the normal pension age may at any time elect to pay additional contributions in accordance with Schedule 2A in order to be credited with additional benefits.

(2)               The employer of a teacher in pensionable employment may at any time elect to pay additional contributions in accordance with Schedule 2A in order for that teacher to be credited with additional benefits.

(3)               Where, pursuant to an election under this regulation and Schedule 2A, a teacher is credited with an increased retirement pension that pension–

(a)               is to be paid to him or her in accordance with regulation E7A when he or she becomes entitled to retirement benefits in accordance with regulation E6; and

(b)               is to be paid to him or her in accordance with regulation E6A if he or she is eligible for phased retirement benefits.

(4)       Where, pursuant to an election under this regulation and Schedule 2A, a teacher is credited with increased benefits for his or her dependents, those benefits are to be paid in accordance with regulation E32A.”.

12.  

Omit regulations C5 (additional contributions to purchase past added years) and C6 (additional contributions to purchase past added years in the case of a deceased teacher).

13.   

For regulation C7 (additional contributions to purchase past added years under earlier provisions) substitute–

C7.     “Additional contributions to purchase added years under earlier provisions

(1)                     Schedule 4 has effect where immediately before 1st April 2007 a teacher had elected to pay additional contributions under old regulation C5 and additional contributions remain to be paid.

(2)                     Schedule 5 has effect where immediately before 1st October 2005 additional contributions remained to be paid by virtue of regulations 22 to 26 of the 1977 Regulations.”.

14.   

Omit regulation C8 (additional contributions to purchase current added years).

15.

(1)               Regulation C9 (additional contributions for current period: service in a reserve force) is amended as follows.

(2)               For paragraph (3)(a)substitute–

“(a)         the same percentage of the notional salary for so much of the period as falls within that financial year as would be paid if the teacher was liable to pay contributions under regulation C3(2); and”.

(3)       In paragraph (3)(b) for “regulation C3(2)” substitute “regulation C3(3)”.

(4)       In paragraph (6)(b) for “regulation C5” substitute“old regulation C5”.

16.  

In regulation C10 (additional contributions for family benefits) after paragraph(3) insert–

“(4)      Parts IIB and III of Schedule 6 have effect for enabling family benefit contributions to be paid in order to secure, or to increase, family benefits for a surviving nominated partner in respect of reckonable service which is not relevant service as mentioned in regulation E30(4B).”.

17.

(1)       Regulation C11 (return of contributions) is amended as follows.

(2)       In paragraph (1)(d) for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”.

(3)       In paragraph (6) for “70th birthday” substitute “75th birthday”.

18.   

In paragraph (3)(a) of regulation C12 (calculation for the purposes of regulation C11) for “regulations C3, C5 and C7 to C10” substitute “regulations C3, C4B, regulations C9 to C10, under Part I of Schedule 4, as a result of an election under old regulation C5 or old regulation C8”.

19.

(1)       Regulation C14 (repayment of returned contributions) is amended as follows.

(2)       In paragraph (1)(a) after “pensionable employment” insert “other than a teacher who was entitled to be paid a teacher’s pension and, after becoming entitled to payment of a teacher’s pension, re-entered pensionable employment”.

(3)       In paragraph (8) for “regulation C8” substitute “old regulation C8”.

(4)       Omit paragraph(9).

20.

(1)       Regulation C15 (deduction, payment and recovery of contributions) is amended as follows.

(2)       In paragraph (1)(a) for “regulation C3(1)” substitute “regulation C3(2)”.

(3)       In paragraph (1)(b) for “regulation C3(2)” substitute “regulation C3(3)”.

(4)       After paragraph(1)(b) insert–

“(ba)       any additional contributions payable as a result of an election under regulation C4B;”.

(5)       Omit paragraph (1)(c).

(6)       After paragraph (1) insert–

“(1A)      The employer of a teacher in pensionable employment by virtue of an election made under regulation B8(1A) who has agreed under regulation B8(4A) that the election should have effect from a date earlier than the first day of the month after that in which the notice was given shall collect the contributions and interest payable under regulation C4A no later than 6 weeks after the date on which such agreement was given; and the remaining paragraph of this regulation do not apply to the sums collected under this paragraph.”

(7)       In paragraph (7) for “regulation C4, C8 or C14” substitute “regulation C4, C9 or C14 or old regulation C8”.

21.  

In regulation D4 (current added years for which additional contributions have been paid)–

(a)               for “regulation C8 or C9” substitute “old regulation C8 or regulation C9”; and

(b)               in paragraph (a) for “regulation C8” substitute “old regulation C8”.

22.   

Before regulation E1 (overriding provisions as to guaranteed minimum pension) insert the following regulation–

EA1.   “Meaning of various terms

(1)                     In these Regulations the expressions set out in paragraphs (2), (5), (7), (8), (9) and (10) have the meanings specified in those paragraphs.

(2)                     A “pre-2007 entrant” means a teacher who satisfies one of the conditions in paragraph (3).

(3)                     The conditions are–

(a)               that the teacher was in pensionable employment before 1st April 2007 but is not in such employment on or at any time after that date; or

(b)               that the teacher was in pensionable employment before 1st April 2007 and is also in pensionable employment at any time on or after that date but does not cease to be a pre-2007 entrant by virtue of paragraph (4).

(4)          A teacher ceases to be a pre-2007 entrant if he or she takes up pensionable employment again (“the new employment”) after 31st March 2008 after a relevant break of service.

(5)          A “relevant break of service” means a period ending after 31st March 2008 (and where there is more than one such period, the first of them) when a teacher is not in pensionable employment such that the interval between the first day of the new employment and the last day of the most recent previous period of pensionable employment is more than 5 years, and it is immaterial whether the last day of the most recent previous period of pensionable employment was before 1st April 2007 or not.

(6)          For the purposes of determining the interval referred to in paragraph (5) any period of employment is ignored unless–

(a)               the employment is pensionable employment of at least 60 days (which need not be continuous); or

(b)               the employment which the teacher is entitled to count as reckonable service amounts to at least 30 days,

(in either case) in a period of 12 months starting at any time in the year.

(7)          “Post-break employment start” means the start of the new employment after a relevant break of service, and for the purposes of this definition any periods of employment which are ignored for the purposes of determining the interval referred to in paragraph (5) are treated as having taken place before the start of the new employment.

(8)          A “teacher with mixed service” means a teacher who was in pensionable employment before 1st April 2007 but who has ceased to be a pre-2007 entrant by virtue of paragraph (4).

(9)          A “2007 or later entrant” means anyone other than a pre-2007 entrant or a teacher with mixed service who is or has been in pensionable employment.

(10)        The “normal pension age” means the age of 60 in the case of a pre-2007 entrant and the age of 65 in any other case (except in relation to a pension credit member whose normal pension age is determined in accordance with regulation F10A).

(11)        Where a teacher has been in comparable British Service before entering pensionable employment the comparable British Service shall, for the purposes of this regulation, be treated as if it were pensionable employment provided that neither a cash equivalent transfer value nor a transfer value has been paid in respect of the comparable British Service (other than a cash equivalent transfer value or transfer value accepted by the Scottish Ministers) nor has the balance of the teacher’s contributions relating to the comparable British Service been repaid.

(12)        For the purposes of this regulation–

(a)               a teacher is treated as being in pensionable employment during any period for which he or she is paying additional contributions under old regulation C8 or regulation C9; and

(b)               “comparable British Service” does not include service which is pensionable under a superannuation scheme for teachers in public employment in the Channel Islands or the Isle of Man.”.

23.

In regulation E2(2)(b) (residual liability for guaranteed minimum pensions and for section 9(2B) rights) for “the age of 60” substitute “the normal pension age”.

24. 

For regulation E4 (nature of retirement benefits) substitute the following–

E4.     “Nature of retirement benefits

Retirement benefits consist of–

(a)               a retirement pension;

(b)               a retirement lump sum where regulation E8 applies; and

(c)               where applicable, a lump sum in place of part of a retirement pension (in accordance with regulation E8A),

calculated in accordance with this Part.”.

25.  

In regulation E5(3) (qualification for retirement benefits) for “If a teacher was in pensionable employment by virtue of regulation B9” substitute “If a teacher was entitled to be paid a teacher’s pension and has re-entered pensionable employment”.

26.  

For regulation E6 (entitlement to payment of retirement benefits) substitute–

E6.     “Entitlement to payment of retirement benefits

(1)               A teacher who has qualified for retirement benefits shall be entitled to payment of them if he or she falls within any of paragraphs (2) and (4) to (7).

(2)               The teacher has, subject to paragraph (3), attained the normal pension age and has ceased to be in pensionable employment.

(3)               Where the teacher is a teacher with mixed service–

(a)               he or she becomes entitled to payment of that part of the retirement pension referred to in regulation E7(2)(c)(i) and the retirement lump sum when he or she attains the age of 60; and

(b)               where an election under regulation C4B has been made in respect of the teacher and, at the time when the election was made the teacher has not ceased to be a pre-2007 entrant by virtue of regulation EA1(4), the teacher becomes entitled to payment of that part of the retirement pension referred to in regulation E7A when he or she attains the age of 60.

(4)       The teacher has attained the age of 70 and is in employment which would be pensionable employment but for regulation B6(1).

(5)       The teacher–

(a)               has not attained the normal pension age;

(b)               has ceased after 31st March 1972 and before attaining the normal pension age to be in pensionable employment;

(c)               is incapacitated, became so before attaining the normal pension age; and

(i)      immediately before he or she became incapacitated–

(aa)        was in pensionable employment; or

(bb)        was taking a period of unpaid sick leave, maternity, paternity or adoptive leave, which, in each case, followed on immediately after a period of pensionable employment; or

(cc)         was paying additional contributions under old regulation C8 or regulation C9; or

(ii)     made an application for payment under regulation E36(1A) such that it was received by the Scottish Ministers before 1st April 2007; or

(iii)    (where neither sub-paragraphs (i) or (ii) applies) his or her ability to carry out any work is impaired by more than 90% and is likely permanently to be so.

(6)       The teacher–

(a)               has not attained the normal pension age;

(b)               has attained the age of 50, if the teacher is not a post-30th June 2006 entrant and attained that age before 6th April 2010, or the age of 55 in any other case;

(c)               has ceased after attaining that age to be in pensionable employment, or in excluded employment, or in employment which would have been pensionable employment had an election been made under regulation B2, and that teacher’s employer has certified in writing to the Scottish Ministers that his or her employment has been terminated as a result of their redundancy or in the interests of the efficient exercise of the employer’s functions; and

(d)               has not received, and is not to receive, compensation under Part IIIA of the T