Citation and commencement

1. These Regulations may be cited as the Teachers’ Pensions (Amendment) Regulations 2002 and shall come into force on 10 ^th January 2003.

Amendment of the Teachers’ Pensions Regulations 1997

2.The Teachers’ Pensions Regulations 1997( 3 ) shall be amended in accordance with regulations 3 to 8.

3. —(1) Regulation G2 shall be amended as follows.

(2) At the beginning of paragraph (4)(a) insert “subject to sub-paragraph (aa),”.

(3) After paragraph (4)(a) insert the following new sub-paragraph—

“ (aa) the closing balance in the account for the financial year ending on 31 ^st March 2001 as determined by the Government Actuary by reference to the value of the scheme assets mentioned in regulation G4(6),. ”

(4) For paragraph (5) substitute the following—

“ (5) For the purposes of paragraph (4)(e), the notional investment income for the financial years commencing on or after 1 ^st April 2001 shall be determined by the Government Actuary and derived using a percentage return as specified from time to time by the Government Actuary. ” .

4. —(1) Regulation G4( 4 ) shall be amended as follows.

(2) In the heading for the word “inquiries” substitute “review”.

(3) In paragraph (1)—

(a) for the words “inquiry reporting” substitute “review”;

(b) omit “in relation to the inquiry”; and

(c) for the words “inquiry reference” substitute “review”.

(4) In paragraph (1A) for sub-paragraphs (a) and (b) substitute—

“ (a) the next review date is no later than 31 ^st March 2006; and

(b) the review date for each subsequent report is no later than 5 years after the previous review date. ” .

(5) After paragraph (1A) insert the new paragraphs—

“ (1B) The Government Actuary, with the agreement of the Secretary of State, shall specify the funding methodology to be used in making the actuarial review.

(1C) Any determination in relation to an actuarial inquiry made by the Secretary of State under paragraph (1) before 10 ^th January 2003 shall have effect as if it were a determination in relation to an actuarial review. ” .

(6) In paragraph (2) for the words “inquiry” and “inquiry reference” substitute in both cases “review”.

(7) For paragraph (3) substitute—

“ (3) The report is to specify the standard contribution rate (expressed as a percentage) at which contributions should be paid during the period beginning and ending on days (following the date of the report) determined by the Secretary of State (“the relevant period”). ” .

(8) In paragraph (4) for the words “end of the financial year in question, the amount” substitute “review date, the value”.

(9) For paragraph (5) substitute—

“ (5) Subject to paragraph (6), the scheme assets and the scheme liabilities shall be determined in accordance with the funding methodology specified in paragraph (1B). ” .

(10) For paragraph (6) substitute—

“ (6) For the purposes of the actuarial review reporting on the position in relation to the account as at 31 ^st March 2001, the value of the scheme assets shall equal the value of the scheme liabilities. ” .

(11) In paragraph (7) for the word “amount” substitute “value”.

(12) In paragraph (8) for the word “amount” substitute “value”.

(13) In paragraph (9) omit “either be or”.

5. —(1) Regulation G5( 5 ) shall be amended as follows.

(2) In paragraph (2) for “2000” substitute “2003”.

(3) In paragraph (2) omit “+ 0.2”.

6. —(1) Regulation G7 shall be amended as follows.

(2) In paragraph (4) for the words “12% per annum” substitute “the interest rate specified in paragraph (5)”.

(3) After paragraph (4) insert the following new paragraph—

“ (5) For the purposes of paragraph (4) the interest rate is—

(a) 12% per annum in relation to all amounts and contributions payable in relation to pensionable employment before 1 ^st April 2003; and

(b) 8% per annum in relation to all amounts and contributions payable in relation to pensionable employment on or after 1 ^st April 2003. ” .

7. —(1) Paragraph 5 of Schedule 2( 6 ) shall be amended as follows.

(2) In sub-paragraph (a) for the words “a city” immediately before “academy” substitute “an”.

(3) In sub-paragraph (b) for the words “a city” immediately before “academy” substitute “an”.

8. —(1) Paragraph 9 of Schedule 15( 7 ) shall be amended as follows.

(2) After sub-paragraph (2)(a) insert the following new paragraphs—

“ (aa) the required percentage for the relevant period starting on 1 ^st April 2000 and ending on 31 ^st March 2002 shall be 7.4%; and

(ab) the required percentage for the relevant period starting on 1 ^st April 2002 and ending on 31 ^st March 2003 shall be 8.35%; and. ”

(3) In sub-paragraph (2)(b) for “2000” substitute “2003”.