PART 1 Preliminary

Citation, extent and commencement

1.—(1) These Regulations—

(a)may be cited as the Teachers' Pension Scheme Regulations 2014; and

(b)extend to England and Wales.

(2) These Regulations come into force as follows—

(a)this Part and Part 2 come into force on 1st April 2014;

(b)the remaining provisions come into force on 1st April 2015.

Establishment of Teachers' Pension Scheme [^F12015^F1]

2.—(1) These Regulations establish a scheme for the payment of pensions and other benefits to or in respect of teachers in England and Wales.

(2) For the purpose of these Regulations, a person in an eligible employment is a teacher.

(3) This scheme is to be known as the Teachers' Pension Scheme[^F2 2015^F2] .

Interpretation_cross-notes

3. In these Regulations—

“ the Act ” means the Public Service Pensions Act 2013 ;

^M9 “ EA 2002 ” means the Education Act 2002 ;

^M10 “ FA 2004 ” means the Finance Act 2004 ;

^M11 “ PA 1995 ” means the Pensions Act 1995 ;

^M12 “ PA 2008 ” means the Pensions Act 2008 ;

^M13 “ PIA 1971 ” means the Pensions (Increase) Act 1971 ;

^M14 “ PSA 1993 ” means the Pension Schemes Act 1993 ;

^M15 “ WRPA 1999 ” means the Welfare Reform and Pensions Act 1999 ;

“ accepted member ” has the meaning given in Part 1 of Schedule 1;

“ accrual rate ” means the fraction of pensionable earnings that accrue as earned pension for a financial year;

“accrued additional pension”—

“accrued club transfer earned pension”—

“accrued earned pension”—

“ accrued pension ” means—

“ accrued rights ” does not include a right to benefits attributable (directly or indirectly) to a pension credit;

“ active member ”, in relation to this scheme, means a person who is in pensionable service under this scheme;

“ active member's account ” has the meaning given in regulation 50;

“ actuarial ”, in relation to a calculation or value, means determined by, or in accordance with tables or guidance prepared by, the scheme actuary;

“ actuarial adjustment ” has the meaning given in Chapter 7 of Part 4;

^F3...

“ additional pension ” means—

“ additional pension account ” has the meaning given in Chapter 5 of Part 4;

“ additional pension contributions ” has the meaning given in Part 1 of Schedule 2;

“ additional pension election ” has the meaning given in Part 1 of Schedule 2;

“ additional (self only) pension ” means an additional pension payable to a pensioner member;

“ additional (surviving adult) pension ” means an additional pension payable to the member's surviving adult after the member has died;

^M16 “ adoption leave ” has the meaning given in regulation 2(1) of the Paternity and Adoption Leave Regulations 2002 ;

“ age retirement pension ” means a pension payable under Chapter 2 of Part 5;

“ amount of credited pension ” has the meaning given in regulation 80(3);

“ annual amount of pensionable earnings ”, in relation to any year, means the amount of pensionable earnings payable in that year;

“ annual rate of pensionable earnings ” means—

^F4...

“ balance of contributions ” means the amount of contributions repayable under regulation 189;

“ buy-out contributions ” has the meaning given in Part 1 of Schedule 2;

[^F5 “ carer’s leave ” means leave under section 80J of the Employment Rights Act 1996 ; ^F5]

^M17 “ cash transfer sum ” has the meaning given in section 101AB of PSA 1993 ;

“ child pension ” means a pension payable under regulation 149;

“ club scheme ” means a registered occupational pension scheme (other than a connected scheme) that has agreed to make and receive transfer value payments under the club transfer arrangements;

“ club transfer ” means a transfer to or from this scheme under the club transfer arrangements;

“ club transfer arrangements ” means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme and other registered occupational pension schemes for making and receiving transfer value payments;

“ club transfer earned pension ” means pension attributable to the receipt of a club transfer value;

“ club transfer value ”, in relation to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10 (transfers);

“ conversion amount ” has the meaning given in regulation 75;

“ connected scheme ” has the meaning given in regulation 4;

“ continuity of service ”, in relation to a transition member, has the meaning given in Part 1 of Schedule 3;

“ contributions equivalent premium ” means a premium under section 55(2) of PSA 1993;

“ contracting scheme employer ” has the meaning given in Part 1 of Schedule 1;

“ death grant ” means a death grant under Part 6;

“ deferred member ”, in relation to this scheme, means a person (other than an active member or pensioner member of this scheme) who has accrued rights under this scheme;

“ deferred member's account ” has the meaning given in Chapter 6 of Part 4;

“ dual capacity member ” has the meaning given in regulation 21;

“ early retirement pension ” means a pension payable under regulation 104;

“ earned pension ” means pension calculated by reference to a member's pensionable earnings;

“ eligible child ” has the meaning given in regulation 137;

“ eligible employment ” has the meaning given in Part 3;

“ employed ” means employed under a contract of employment;

“employer”, for a person employed by the governing body of a school maintained by a local authority, means—

“ employment ” means employment under a contract of employment;

“ entitlement day ”, in relation to a benefit payable under a Chapter in Part 5, has the meaning given in that Chapter;

^F6...

“ existing Fair Deal arrangements ” has the meaning given in Part 1 of Schedule 3;

“ an existing club scheme ” means a registered occupational pension scheme which belonged to the transfer club on the scheme closing date;

“ an existing scheme ” means an existing scheme as defined in section 18(2) of the Act;

^M18 “ the existing scheme ” means the scheme constituted by regulations made under section 9 of the Superannuation Act 1972 (whether made before or after the coming into force of these Regulations) ;

[^F7 “the existing scheme regulations” means the Teachers’ Pension Regulations 2010 ; ^F7]

“ Fair Deal transfer ” has the meaning given in Part 1 of Schedule 1;

“ Fair Deal transfer date ” has the meaning given in Part 1 of Schedule 1;

“ faster accrual contributions ” has the meaning given in Part 1 of Schedule 2;

“ faster accrual earned pension ”, in relation to a financial year, means the amount of earned pension calculated by applying the faster accrual rate to the member's pensionable earnings for that year;

“ faster accrual election ” has the meaning given in Part 1 of Schedule 2;

“ financial year ” means the 12 months ending with 31st March in any year;

[^F8 “full protection member” has the meaning given in Part 2 of Schedule 3; ^F8]

“ full retirement additional pension ” has the meaning given in regulation 70;

“ full retirement earned pension ” has the meaning given in regulation 69;

“ full retirement pension ” means—

“ full-time ”, in relation to employment, has the meaning given in regulation 16(a);

“ function provider ” has the meaning given in Part 1 of Schedule 1;

“ GMP age ” means 65 in the case of a man or 60 in the case of a woman;

“ guaranteed minimum ” means a guaranteed minimum under section 14 of PSA 1993;

“ guaranteed minimum pension ” has the meaning given in section 8(2) of PSA 1993;

“ ill-health pension ” means a pension payable under regulation 110;

“ ill-health retirement benefits ” means—

“ incapacitated ” has the meaning given in Chapter 6 of Part 5 (ill-health retirement) ;

“ index adjustment ” means—

“ initial payment ” has the meaning given in regulation 164 or 165;

“ last active financial year ” has the meaning given in regulation 46;

“ last day of pensionable service ”, in relation to a member, means the day on which a member leaves all pensionable service;

“ leaver index adjustment ” has the meaning given in Chapter 1 of Part 4;

“ leaver PIA index adjustment ” has the meaning given in Chapter 1 of Part 4;

“ local authority ” means—

^M19 “ maternity leave ” means ordinary maternity leave or additional maternity leave within the meaning of the Maternity and Parental Leave etc. Regulations 1999 ;

“ member ”, in relation to this scheme, means an active member, deferred member, pensioner member or pension credit member;

“members' contributions” means contributions payable under regulation 185(1) on pensionable earnings;

“members' contributions rate” has the meaning given in regulation 185;

[^F9 “ neonatal care leave ” means leave under section 80EF of the Employment Rights Act 1996 ; ^F9]

^F15 “ non-pensionable family leave ” means a period of adoption leave, maternity leave, parental leave, [^F10 shared parental leave [^F11 , parental bereavement leave ^F11] [^F12 , ^F12,F10]] paternity leave[^F13 carer’s leave ^F13] or [^F14 neonatal care leave ^F14] ... during which the employee—

“ non-pensionable sick leave ” means a period of sick leave taken by an employee with the consent of the employer, during which the employee—

“ normal minimum pension age ” has the same meaning as in section 279(1) of FA 2004;

“normal pension age”—

“ occupational pension scheme ” has the meaning given in section 1 of PSA 1993;

“ opening balance ”, in relation to earned pension or transferred pension, has the meaning given in regulation 54;

“ opening balance ”, in relation to additional pension, has the meaning given in regulation 59;

[^F16 “parental bereavement leave” has the meaning given in regulation 3 of the Parental Bereavement Leave Regulations 2020 ; ^F16]

“ parental leave ” means leave within the meaning of Part 3 of the Maternity and Parental Leave etc. Regulations 1999 ;

“ Participation Agreement ” has the meaning given in Part 1 of Schedule 1;

“ part-time ”, in relation to employment, has the meaning given in regulation 16(b);

^M20 “ paternity leave ” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002 ;

“ pay order ” means an order under section 122 of EA 2002, for the time being in force and includes any document referred to in such an order;

“ pay period ”, in relation to the payment of a member's pensionable earnings, means the period in respect of which the payment is made;

“ pension credit ” has the meaning given in Chapter 1 of Part 7 (benefits for pension credit members) ;

“ pension credit member ” has the meaning given in Chapter 1 of Part 7;

“ pension credit member's account ” has the meaning given in regulation 80;

“ pension credit retirement pension ” has the meaning given in Chapter 1 of Part 7;

“ pension debit member ” has the meaning given in Chapter 1 of Part 7;

“ pensionable earnings ” has the meaning given in Chapter 4 of Part 3;

“ pensioner member ”, in relation to this scheme, means a person who is entitled to payment of a retirement pension under this scheme;

“ pensioner member's account ” has the meaning given in regulation 76;

“ pension-sharing order ” means any provision or order specified in section 28 of WRPA;

“ period of permanent service ”, in relation to service in the armed forces, has the meaning given in regulation 26;

“ permitted maximum ” means the amount determined in accordance with paragraph 2 of Schedule 29 to FA 2004;

“ personal pension scheme ” means a personal pension scheme as defined in section 1 of PSA 1993 that is a registered pension scheme;

“ phased retirement application ” has the meaning given in Chapter 3 of Part 5;

“ phased retirement additional pension ” has the meaning given in regulation 72;

“ phased retirement earned pension ” has the meaning given in regulation 71;

“ phased retirement pension ” means—

“ phased retirement proportion ” means the proportion of accrued earned pension specified in a phased retirement application;

“ PIA index adjustment ”, in relation to the opening balance of additional pension for any financial year, means the amount by which the annual rate of a pension of an amount equal to the opening balance would have been increased in that year under PIA 1971 if—

“ post-benefit service ” has the meaning given in regulation 83(3);

“ premature retirement pension ” means a pension payable under regulation 101;

“ prospective normal pension age ”, in relation to a member's prospective entitlement to benefits under this scheme, means the normal pension age that the scheme manager determines (by reference to Treasury directions made under section 11(2) of the Act) would apply in relation to those benefits;

“ protected member ” has the meaning given in Part 1 of Schedule 3;

“ public service scheme ” means a scheme under section 1 of the Act;

“ qualified ”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 82;

“ registered ”, in relation to a pension scheme, means registered under Chapter 2 of Part 4 of FA 2004;

“ re-qualified ”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 83;

“ retirement benefits ” means—

“ retirement pension ” means—

“ salary ” means gross salary payable under a contract of employment;

“ this scheme ” means the scheme established by these Regulations;

“ scheme actuary ” means the person appointed by the scheme manager for the time being to provide a consulting service on actuarial matters;

“ scheme closing date ” has the meaning given in Part 1 of Schedule 3;

“ scheme manager ” has the meaning given in Part 2;

“ sending scheme ” means a pension scheme[^F17 to which an application is made for payment of ^F17] a transfer value or a club transfer value;

[^F18 “shared parental leave” has the meaning given in regulation 3(1) of the Shared Parental Leave Regulations 2014 ; ^F18]

“ short-service serious ill-health grant ” means a grant payable under Chapter 7 of Part 5;

“ standard accrual rate ”, in relation to a member's pensionable earnings, means 1/57th;

“ standard earned pension ”, in relation to a financial year, means the amount of earned pension calculated by applying the standard accrual rate to the member's pensionable earnings for that year;

“ standard increase ”, in relation to pensionable earnings, has the meaning given in Chapter 4 of Part 3;

“ standard rate ”, in relation to interest, means the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury;

“ standard reduction ” has the meaning given in Chapter 7 of Part 4;

“ statutory pay ” means—

“ surviving adult ” has the meaning given in regulation 134;

“ surviving adult pension ” means a pension payable under regulation 142;

^M22 “ surviving civil partner ” means a person who, at the time of a member's death, was in a civil partnership with the member;

“ surviving nominated beneficiary ” has the meaning given in regulation 136;

“ surviving [^F24 qualifying ^F24] partner ” has the meaning given in regulation 135;

“ surviving spouse ” means a person who, at the time of a member's death, was married to the member;

“ survivor's pension ” has the meaning given in Chapter 1 of Part 6;

[^F25 “tapered protection member” has the meaning given in Part 3 of Schedule 3; ^F25]

“ total incapacity benefits ” means—

“ total incapacity pension ” means a pension payable under regulation 116;

“ transfer club ” means the club of registered occupational pension schemes which make and receive transfer value payments under the club transfer arrangements;

“ transfer payment ” means a transfer value payment or a cash transfer sum made or received by this scheme in relation to a member;

“ transfer value ”, in relation to accrued rights other than rights to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10 (transfers);

“ transfer value payment ” means—

“ transferred pension ” means pension attributable to the receipt of a transfer value;

“ transition member ” has the meaning given in Part 4 of Schedule 3;

“ the Treasury order ”, in relation to a given period, means the Treasury order made under section 9(2) of the Act that specifies a percentage increase or decrease in prices in relation to that period;

^M23 “ TUPE transfer ” means a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 .

Connected schemes

4. —(1) In these Regulations, “ connected scheme ” means another statutory pension scheme that is connected, within the meaning of section 4(6) of the Act, with this scheme.

^M24(2) The scheme established by the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 is not a connected scheme.

Leaving pensionable service

5.—(1) For the purpose of these Regulations, a person (P) leaves all pensionable service—

(a)if P is in pensionable service in relation to one employment only, when P leaves pensionable service in relation to that employment; or

(b)if P is in pensionable service in relation to more than one employment, when P leaves pensionable service in relation to all those employments.

(2) For the purpose of these Regulations, P leaves pensionable service in relation to an eligible employment when—

(a)P begins a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment;

(b)P opts out of this scheme in relation to that employment; or

(c)P leaves that employment.

Leaving eligible employment

6.—(1) For the purpose of these Regulations, a person (P) leaves all eligible employment—

(a)if P is in one eligible employment only, when P leaves that employment; or

(b)if P is in more than one eligible employment, when P leaves all those employments.

(2) For the purpose of these Regulations—

(a)P leaves an eligible employment when P ends a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment and does not return to that employment; but

(b)P does not leave an eligible employment unless at least one complete day has passed since P's last day in that employment.

PART 2 Governance

Scheme manager

7.—(1) The Secretary of State is the scheme manager for this scheme and any connected scheme.

(2) The scheme manager is responsible for managing this scheme and any connected scheme.

[^F26 (3) The responsible authority may delegate any functions of the scheme manager under these Regulations, including this power to delegate.^F26]

Establishment of pension board

8. —(1) A pension board (“the Teachers' Pension Scheme Pension Board”) is established.

(2) The Teachers' Pension Scheme Pension Board is responsible for assisting the scheme manager in relation to securing compliance with—

(a)these Regulations;

(b)any other legislation relating to the governance and administration of this scheme and any connected scheme; and

(c)requirements imposed by the Pensions Regulator in relation to this scheme and any connected scheme.

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Pension Board discharges its functions.

Membership of pension board

9.—(1) Subject to paragraph 2, the scheme manager may determine—

(a)the membership of the Teachers' Pension Scheme Pension Board;

(b)the manner in [^F27which^F27] the Teachers' Pension Scheme Pension Board members may be appointed and removed; and

(c)the terms of appointment of the Teachers' Pension Scheme Pension Board members.

^M25(2) The Teachers' Pension Scheme Pension Board is to include equal numbers representing the employers and members.

Conflict of interest

^M2610.—(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Pension Board does not have a conflict of interest .

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Pension Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (2).

Establishment of scheme advisory board

11. —(1) A scheme advisory board (“the Teachers' Pension Scheme Advisory Board”) is established.

(2) The Teachers' Pension Scheme Advisory Board is responsible for providing advice to the scheme manager, at the scheme manager's request, on the desirability of changes to this scheme.

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Advisory Board discharges its functions.

Membership of scheme advisory board

12. The scheme manager may determine—

(a)the membership of the Teachers' Pension Scheme Advisory Board;

(b)the manner in which the Teachers' Pension Scheme Advisory Board members may be appointed and removed; and

(c)the terms of appointment of the members of the Teachers' Pension Scheme Advisory Board.

Conflict of interest

13.—(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Advisory Board does not have a conflict of interest.

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Advisory Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of paragraph (2).

PART 3 Scheme membership

CHAPTER 1 Interpretation

Meaning of “an eligible employment”

14. An eligible employment is an employment mentioned in Part 2, 3 or 4 of Schedule 1.

Meaning of “P's automatic enrolment date” and “P's automatic re-enrolment date”

15. For the purpose of this Part—

(a) “P's automatic enrolment date” is the date on which section 3 of PA 2008 applies to a person (P) in relation to P's eligible employment; and

(b) ^M27 “P's automatic re-enrolment date” is a date determined under regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 in relation to P's eligible employment.

Meaning of “full-time” and “part-time” employment

16. For the purpose of these Regulations—

(a) an employment is “full-time” if the contract of employment describes it as full-time (whether in those terms or otherwise); and

(b) an employment is “part-time” if the contract of employment describes it as part-time (whether in those terms or otherwise).

Meaning of “irregular employment”

17.—(1) For the purpose of these Regulations, an employment is an irregular employment if the contract of employment requires the employee—

(a)to be available for work for the period specified in the contract of employment, and

(b)to undertake and be remunerated for work during that period only when so required by the employer.

(2) A person in pensionable service in relation to an irregular employment is in pensionable service for the period specified in the contract of employment.

Meaning of “opt-out notice” and “opt-in notice”

18. For the purpose of these Regulations—

(a) “ opt-out notice ”, in relation to service in an eligible employment, means a notice under regulation 28 or 31; and

(b) “ opt-in notice ”, in relation to service in an eligible employment, means a notice under regulation 29 or 32.

CHAPTER 2 Membership

Eligibility for active membership

19.—(1) A person (P) is eligible to be an active member of this scheme if—

(a)P is in an eligible employment; and

(b)P has reached 16 and has not reached 75.

(2) P is not eligible to be an active member of this scheme if

[^F28 (a)P is employed in an accepted school in which P has a financial interest;

(b)P is a full protection member of the existing scheme;

(c)P is a tapered protection member of the existing scheme; or

(d)P satisfies the conditions in regulation 7(10) of the existing scheme regulations.^F28]

(3) In this regulation—

“ a financial interest ” does not include the right to receive a salary; and

“ accepted school ” has the meaning given in paragraph 2 of Schedule 1.

More than one employment

20. A person may be an active member of this scheme in relation to more than one employment.

Dual capacity membership

21.—(1) A person is a dual capacity member of this scheme if the person is a member in 2 or more of the following capacities—

(a)an active member;

(b)a deferred member;

(c)a pensioner member.

(2) In determining whether a person who is an active member is also a pensioner member, the fact that the person is an active member and the person's rights in that capacity are to be disregarded.

(3) In determining whether a person who is an active member or a pensioner member is also a deferred member, the fact that the person is an active member or a pensioner member and the person's rights in that capacity are to be disregarded.

Payment of retirement benefits to dual capacity members

^M2822. Retirement benefits under this scheme are payable to a dual capacity member as if the member were 2 or more members and the amounts payable are determined accordingly .

CHAPTER 3 Pensionable service

SECTION 1 General provisions

Service not pensionable unless member is entitled to pay

23.—(1) A person (P) in an eligible employment is not in pensionable service in relation to that employment unless P is entitled to be paid—

(a)P's salary in respect of that employment;

(b)^F34if P is on adoption leave, maternity leave, parental leave, [^F29shared parental leave [^F30 , parental bereavement leave^F30] [^F31 ,^F31,F29]] [^F32 neonatal care leave,^F32] paternity leave[^F33 or carer’s leave^F33] ...—

(i)at least half P's salary in respect of that employment; or

(ii)statutory pay; or

(c)if P is on sick leave, at least half P's salary in respect of that employment.

(2) P is not in pensionable service in relation to an employment during a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave from that employment.

Service not pensionable unless members' contributions are paid

24.—(1) The scheme manager may decide that a period of service in respect of which members' contributions are not paid is not a period of pensionable service if—

(a) the scheme manager has sent the member a demand under regulation 194 (“the demand”) in respect of those contributions; and

(b)within 3 years after the date of the demand, the member has not paid the whole of the amount and interest stated in the demand[^F35 ;^F35]

[^F36 but this is subject to paragraph (3)^F36]

(2) The period of service is not a period of pensionable service if the scheme manager—

(a)gives the member written notice to that effect; and

(b)repays the member any amount paid in part satisfaction of the demand[^F37 ;^F37]

[^F38 but this is subject to paragraph (3)^F38]

[^F39 (3) A period within the previous provisions of this regulation counts as a period of pensionable service to the extent that regulation 192(2) covers it.^F39]

SECTION 2 Service in Her Majesty's armed forces

Pensionable service – armed forces service

25. For the purpose of these Regulations, a person is in pensionable service during any period of permanent service in the armed forces in respect of which an election under regulation 26 has effect or is taken to have effect.

Election for armed forces service to be pensionable

^M2926.—(1) This regulation applies in relation to an active member (P) who is called out, or recalled, for permanent service in Her Majesty's armed forces under a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996 .

(2) P may by written notice to the scheme manager elect to treat the period of permanent service as pensionable service.

(3) For the purpose of these Regulations, P leaves all pensionable service from the beginning of the period of permanent service if P does not make an election within 6 months after the period of permanent service ends.

(4) If P makes an election, the scheme manager must give P a written notice setting out the contributions payable in respect of the period of permanent service.

(5) The election has effect from the beginning of the period of permanent service if—

(a)P pays the contributions by lump sum within 3 months after receiving the notice; or

(b)P pays contributions by monthly payments in accordance with regulation 187 in respect of the whole period.

(6) If P only pays contributions in respect of part of the period of permanent service, the election has effect only in respect of that part of the period.

(7) In this regulation, a period of permanent service begins when P is called out or recalled and ends on whichever is the earlier of—

(a)the day on which P's permanent service ends, or

(b)the day on which P begins to accrue benefits under the Armed Forces Pension Scheme or any other occupational pension scheme in respect of P's permanent service.

(8) If P dies while in permanent service and P has not made an election—

(a)P is taken to have made an election;

(b)any contributions payable are to be deducted from any benefits payable under these Regulations; and

(c)the election is taken to have effect from the beginning of the period of permanent service.

SECTION 3 Pensionable service on or after automatic enrolment date

Pensionable service on or after automatic enrolment date

27.—(1) This Section applies in relation to a person (P) who—

(a)is eligible to be an active member of this scheme; and

(b)is in an eligible employment on or after P's automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if—

(a)the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice under this Section does not have effect in relation to service in that employment;

(b)the employment is mentioned in Part 3 or 4 of Schedule 1 and—

(i)P's employer has made arrangements for P to be an active member of this scheme in relation to service in that employment; and

(ii)an opt-out notice under this Section does not have effect in relation to service in that employment; or

(c)the employment is mentioned in Part 3 or 4 of Schedule 1 and—

(i)immediately before P's automatic enrolment date for that employment, an opt-in notice under Section 4 had effect in relation to service in that employment; and

(ii)an opt-out notice under this Section does not have effect in relation to service in that employment.

Opting out of this scheme after automatic enrolment date

28.—(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt-out notice has effect as follows—

(a)if the scheme manager receives the opt-out notice within 3 months after P enters the employment, from the first day of the employment;

(b)if sub-paragraph (a) does not apply and the scheme manager receives the opt-out notice within 3 months after P's automatic enrolment date for the employment, from P's automatic enrolment date;

(c)if neither sub-paragraph (a) nor (b) applies and the scheme manager receives the opt-out notice within 3 months after P's automatic re-enrolment date, from P's automatic re-enrolment date;

(d)otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt-out notice ceases to have effect from the earliest of—

(a)the date on which a subsequent opt-in notice has effect in relation to service in that employment,

(b)P's automatic re-enrolment date for that employment, and

(c)if P is subject to a Fair Deal transfer in relation to service in that employment, the Fair Deal transfer date.

Opting into this scheme after automatic enrolment date

29.—(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if—

(a)the employment is mentioned in Part 2 of Schedule 1, and P has previously opted out of this scheme in relation to service in that employment; or

(b)the employment is mentioned in Part 3 or 4 of Schedule 1, and P's employer has consented to P opting into this scheme.

(4) For an employment mentioned in Part 2 of Schedule 1, an opt-in notice has effect—

(a)if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment, from the first day of the employment; or

(b)if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) For an employment mentioned in Part 3 or 4 of Schedule 1—

(a)if the scheme manager receives both the opt-in notice and P's employer's written consent to the exercise of the option not later than 3 months after P enters the employment, the opt-in notice has effect from the first day of the employment;

(b)if sub-paragraph (a) does not apply, the opt-in notice has effect from the later of—

(i)the first day of the month after the month in which the scheme manager receives the opt-in notice, and

(ii)the first day of the month after the month in which the scheme manager receives P's employer's written consent to the exercise of the option.

(6) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

SECTION 4 Pensionable service before automatic enrolment date

Pensionable service before automatic enrolment date

30.—(1) This Section applies in relation to a person (P) who—

(a)is eligible to be an active member of this scheme; and

(b)is in an eligible employment before P's automatic enrolment date for that employment.

(2) P is in pensionable service in relation to that employment if—

(a)the employment is mentioned in Part 2 of Schedule 1, and an opt-out notice under this Section does not have effect in relation to service in that employment; or

(b)the employment is mentioned in Part 3 or 4 of Schedule 1, and an opt-in notice under this Section has effect in relation to service in that employment.

Opting out of this scheme before automatic enrolment date

31.—(1) A person (P) opts out of this scheme in relation to service in an eligible employment if P opts not to be an active member of this scheme in relation to that service.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-out notice”).

(3) An opt-out notice has effect—

(a)if the scheme manager receives the opt-out notice no later than 3 months after P enters the employment, from the first day of the employment; or

(b)otherwise, from the first day of the month after the month in which the scheme manager receives the opt-out notice.

(4) An opt-out notice ceases to have effect from the [^F40earliest^F40] of—

(a)the date on which a subsequent opt-in notice has effect;

(b)P's automatic enrolment date for that employment; and

(c)if P is subject to a Fair Deal transfer in relation to service in that employment, the Fair Deal transfer date.

Opting into this scheme before automatic enrolment date

32.—(1) A person (P) opts into this scheme in relation to service in an eligible employment if P opts to become an active member of this scheme in relation to service in that employment.

(2) P may only exercise the option by written notice to the scheme manager in a form required by the scheme manager (“opt-in notice”).

(3) P may opt into this scheme in relation to service in an employment if—

(a)the employment is mentioned in Part 2 of Schedule 1 and an opt-out notice has effect;

(b)the employment is mentioned in Part 3 of Schedule 1; or

(c)the employment is mentioned in Part 4 of Schedule 1 and P's employer has consented to P opting into this scheme.

(4) For an employment mentioned in Part 2 or 3 of Schedule 1, an opt-in notice has effect—

(a)if the scheme manager receives the opt-in notice not later than 3 months after P enters the employment – from the first day of the employment; or

(b)if sub-paragraph (a) does not apply, from the first day of the month after the month in which the scheme manager receives the opt-in notice.

(5) For an employment mentioned in Part 4 of Schedule 1—

(a)if the scheme manager receives the opt-in notice and P's employer's written consent to the exercise of the option not later than 3 months after P enters the employment – the opt-in notice has effect from the first day of the employment;

(b)if sub-paragraph (a) does not apply, the opt-in notice has effect from the later of—

(i)the first day of the month after the month in which the scheme manager receives the opt-in notice; and

(ii)the first day of the month after the month in which the scheme manager receives P's employer's written consent to the exercise of the option.

(6) An opt-in notice ceases to have effect from the date on which a subsequent opt-out notice has effect.

CHAPTER 4 Pensionable earnings

Interpretation

33. In this Chapter—

“ notional pensionable earnings ” means the amount by which a member's pensionable earnings are reduced during—

“ notional salary ”, in relation to a period of permanent service in respect of which an election under regulation 26 has effect or is taken to have effect, means P's pensionable earnings for the pay period immediately before the period of permanent service began, increased by—

“ residential accommodation ” means residential accommodation provided to a person (P) in connection with P's employment;

“ residential benefits in kind ” means—

“ salary sacrifice arrangement ” means—

“ school teacher ” means a school teacher for the purpose of section 122 of EA 2002; and

“ standard increase ” means an increase in pensionable earnings that—

Pensionable earnings for school teachers

34.—(1) This regulation applies to an active member (P) who is a school teacher.

(2) P's pensionable earnings for any pay period are the sum of the following amounts paid in that pay period to P by P's employer in respect of P's pensionable service—

(a)all salary and allowances paid for the performance of P's contractual duties in accordance with a pay order;

(b)the amount of any payment in respect of overtime;

(c)^F48any salary or statutory pay paid while P is on sick leave, [^F47carer’s leave,^F47] maternity leave, paternity leave, ... parental leave[^F49 shared parental leave^F49][^F50 , parental bereavement leave^F50][^F51 neonatal care leave,^F51] or adoption leave;

(d)an amount equal to any part of P's salary which P has given up the right to receive under a salary sacrifice arrangement.

(3) P's pensionable earnings do not include any amounts mentioned in regulation 36.

Pensionable earnings for other members

35.—(1) This regulation applies to an active member (P) who is not a school teacher.

(2) P's pensionable earnings for any pay period are the sum of the amounts set out in paragraph (3) paid in that pay period to P for P's own use by P's employer in respect of P's pensionable service.

(3) The amounts are—

(a)the amount of salary, wages, fees and other payments paid under a contract of employment;

(b)the amounts mentioned in regulation 34(2)(b) to (d);

(c)the amount of any payment made to P by way of bonus under a pay settlement that applies to all employees (or all employees of a particular class or description) at the institution where P is employed; and

(d)the amount of any payment made to P that is calculated by reference to any of the following—

(i)P's performance;

(ii)the performance of all employees at the institution where P is employed; or

(iii)the performance of that institution.

(4) P's pensionable earnings do not include any amounts mentioned in regulation 36.

Amounts not forming part of pensionable earnings

36.—(1) This regulation applies to any active member (P).

(2) P's pensionable earnings do not include any of the following amounts paid to P by P's employer—

(a)any benefit in kind, or the money value of such a benefit, excluding—

(i)any residential benefits in kind; or

(ii)a benefit in kind under a salary sacrifice arrangement;

(b)any bonus other than a payment under regulation 35(3)(c);

(c)any allowance paid for travelling or other expenses;

(d)any amount paid for the performance of duties that are not carried out in the course of P's pensionable service;

(e)any payment in consideration for the loss of, or the agreement to give up the right to, paid leave under P's contract of employment;

(f)any payment in lieu of notice to terminate P's contract of employment;

(g)if P is employed in an employment mentioned in paragraph 20 of Schedule 1 (teacher in a European school), any amount not payable by, or money value of a benefit in kind not attributable to, the Secretary of State.

Application for residential benefits in kind to form part of pensionable earnings

37.—(1) This regulation applies to a person (P) who receives residential benefits in kind.

(2) P's employer (E) may apply in writing to the scheme manager asking for the money value of those residential benefits in kind to form part of P's pensionable earnings.

(3) The application must be made within 3 months after the later of—

(a)the first day of P's employment; or

(b)the first day on which residential accommodation is provided to P.

(4) The application must be accompanied by a statement certifying that E will—

(a)review the value of the residential benefits in kind at the times mentioned in paragraph (5); and

(b)inform the scheme manager in writing of the results of each review.

(5) E must review the money value of the residential benefits in kind as follows—

(a)the first review must be carried out within 2 years after the later of—

(i)the first day of P's employment; or

(ii)the first day on which residential accommodation is provided to P; and

(b)each subsequent review must be carried out within 2 years after the previous review.

Money value of residential benefits in kind to form part of pensionable earnings

38.—(1) The scheme manager, if satisfied that it is reasonable for residential accommodation to be provided to a person (P) by P's employer (E) in connection with P's employment, may decide that the money value of residential benefits in kind forms part of P's pensionable earnings from—

(a)the first day of P's employment; or

(b)if later, the first day on which residential accommodation is provided to P.

(2) If the money value of the residential accommodation exceeds 1/6th of the aggregate of the amounts mentioned in regulation 34(2) or 35(3)(a) and (b), the excess does not form part of P's pensionable earnings.

(3) The scheme manager may revoke a decision that the money value of residential benefits in kind forms part of P's pensionable earnings if E does not—

(a)carry out the reviews in accordance with regulation 37; or

(b)inform the scheme manager of the results of those reviews within a reasonable time.

(4) If paragraph (3) applies, the scheme manager must—

(a) calculate the amount attributable to the overpayment of contributions (“ the amount ”); and

(b)repay the amount to E together with interest applied in accordance with paragraph (6).

(5) The amount is the difference between—

(a)^M30the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E deducted from P's pensionable earnings during the period in which the residential benefits in kind formed part of P's pensionable earnings; and

(b)the sum of the amount of members' contributions, any faster accrual contributions and any buy-out contributions which E would have deducted from P's pensionable earnings during that period had the residential benefits in kind not formed part of P's pensionable earnings.

(6) Interest is applied to the amount at the rate of 3% each year, compounded with yearly rests—

(a)from the first day of the financial year following the year in which the contributions were first deducted;

(b)until the day on which the amount attributable to the overpayment of contributions is repaid.

Pensionable earnings for the purpose of accruing benefits

39. For the purpose of calculating a member's (P's) amount of earned pension for a pay period—

(a)^F56if P's pensionable earnings are reduced during sick leave, [^F52carer’s leave,^F52] adoption leave, maternity leave, parental leave, [^F53shared parental leave [^F54 , parental bereavement leave^F54] [^F55 , neonatal care leave^F55] or^F53] paternity leave ..., P's pensionable earnings for that period include P's notional pensionable earnings; and

(b)if an election under regulation 26 has effect or is taken to have effect for that period, are an amount equal to P's notional salary.

CHAPTER 5 Annual rate of pensionable earnings for multiple employments

Multiple regular full-time or part-time employments

40.—(1) This regulation applies if—

(a)a person (P) is in pensionable service in relation to more than one employment, and

(b)each employment is a regular full-time or part-time employment.

(2) P's annual rate of pensionable earnings is found by—

(a)calculating the D value for each employment; and

(b)adding all the D values.

(3) The D value for an employment is

(4) FT means the annual rate of pensionable earnings for that employment.

(5) C means

(a)for a full-time employment, the A value is 1;

(b)for a part-time employment, the A value is

(c)PT means the amount payable for a full year of a part-time employment, not its full-time equivalent; and

(d)B is the sum of all the A values.

Multiple employments including at least one irregular employment

41.—(1) This regulation applies if—

(a)a person (P) is in pensionable service in relation to more than one employment; and

(b)at least one employment is an irregular employment.

[^F57 (2) P’s full-time equivalent annual rate of pensionable earnings is the higher of—

(a)Figure 1; and

(b)either--

(i)Figure 2, if P is in more than one regular employment; or

(ii)Figure 3, if P is only in one regular employment;

where—

Figure 1 is obtained by dividing the sum of the annual rates of each of P’s employments by the total number of P’s employments;

Figure 2 is the annual rate of pensionable earnings for P’s regular employments as set out in paragraph (2) of regulation 40, disregarding P’s irregular employment or employments; and

Figure 3 is the full-time equivalent rate of pensionable earnings for P’s sole regular employment.^F57]

PART 4 Pension accounts

CHAPTER 1 Interpretation

Interpretation

42. In this Part—

“ the leaving year ” means the financial year in which the relevant last day falls;

“ the relevant last day ” means—

Pensionable service

43. For the purpose of this Part, a person (P) who re-enters pensionable service after a gap in service not exceeding 5 years is taken to be in pensionable service during the gap.

Meaning of “leaver index adjustment”

44.—(1) The leaver index adjustment for an amount of accrued earned pension other than an amount of club transfer accrued earned pension is an amount calculated as follows—

• Step 1

• Add 1.6 to the percentage increase or decrease in prices specified in the Treasury order in relation to the leaving year.

• Step 2

• Multiply the result at Step 1 by A/B

• where—

  • A is the number of complete months in the period between the beginning of the leaving year and the end of the relevant last day; and

  • B is 12.

• The resulting percentage is the leaver index percentage.

• Step 3

• Multiply the amount of accrued earned pension by the leaver index percentage.

• The resulting amount is the leaver index adjustment.

(2) The leaver index adjustment for an amount of club transfer accrued earned pension is the adjustment that would apply under the sending scheme to an amount of accrued earned pension equal to the amount of club transfer accrued earned pension specified in the active member's account at the end of the relevant last day.

(3) In this regulation, “ complete month ” includes an incomplete month that consists of at least 16 days.

Meaning of “leaver PIA index adjustment”

45.—(1) The leaver PIA index adjustment for an amount of accrued additional pension is calculated in accordance with paragraph (2).

(2) The leaver PIA index adjustment is the amount by which the annual rate of a pension of an amount equal to the amount of accrued additional pension would have been increased in the leaving year under PIA 1971 if—

(a)that pension were eligible to be so increased; and

(b)the beginning date for that pension were the day after the relevant last day.

CHAPTER 2 Calculation of accrued pension

Calculation of amount of accrued pension for purposes of deferment or full retirement

46.—(1) For the purpose of a full retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) For the purpose of a deferred member's account, the amount of accrued earned pension is calculated in accordance with paragraph (3).

(3) The amount of accrued earned pension is the sum of the following amounts specified in the active member's account as at the end of the last day of pensionable service—

(a)the opening balance of standard earned pension for the last active financial year and the index adjustment for that opening balance;

(b)the amount of standard earned pension (if any) for the last active financial year;

(c)the opening balance of faster accrual earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(d)the amount of faster accrual earned pension (if any) for the last active financial year;

(e)the opening balance of club transfer earned pension (if any) for the last active financial year and the index adjustment for that opening balance;

(f)the amount of club transfer earned pension (if any) for the last active financial year;

(g)the opening balance of transferred pension (if any) for the last active financial year and the index adjustment for that opening balance; and

(h)the amount of transferred pension (if any) for the last active financial year.

(4) The amount of accrued additional pension is—

(a)the sum of the following amounts specified in the additional pension account as at the end of the last day of pensionable service—

(i)the opening balance of additional pension for the last active financial year; and

(ii)the PIA index adjustment (if any) for that opening balance; or

(b)an amount determined by the scheme manager under Part 2 of Schedule 2.

(5) In these Regulations, “ the last active financial year ” means the financial year in which the last day of pensionable service falls.

Calculation of amount of accrued pension for purpose of phased retirement

47.—(1) For the purpose of a phased retirement pension, the amount of accrued pension is calculated in accordance with this regulation.

(2) The amount of accrued earned pension is the phased retirement proportion of the sum of the following amounts specified in the active member's account as at the end of the relevant last day—

(a)the opening balance of standard earned pension for the leaving year and the index adjustment for that opening balance;

(b)the amount of standard earned pension for the leaving year;

(c)the opening balance of faster accrual earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(d)the amount of faster accrual earned pension (if any) for the leaving year;

(e)the opening balance of club transfer earned pension (if any) for the leaving year and the index adjustment for that opening balance;

(f)the amount of club transfer earned pension (if any) for the leaving year;

(g)the opening balance of transferred pension (if any) for the leaving year and the index adjustment for that opening balance; and

(h)the amount of transferred pension (if any) for the leaving year.

(3) If a member claims payment of additional pension under regulation 94, the amount of accrued additional pension is—

(a)the sum of the following amounts specified in the additional pension account as at the end of the relevant last day—

(i)the opening balance of additional pension for the leaving year; and

(ii)the PIA index adjustment (if any) for that opening balance; or

(b)an amount determined by the scheme manager under Part 2 of Schedule 2.

CHAPTER 3 Pension accounts: general

Establishment of pension accounts: general

48.—(1) The scheme manager must establish and maintain one or more pension accounts for each member of this scheme in accordance with this Part.

(2) A pension account—

(a)may be kept in any form the scheme manager considers appropriate; and

(b)must specify the details required by these Regulations.

(3) References in these Regulations to any amount specified in a pension account are references to the amount that is required by these Regulations to be so specified and not, if different, the amount actually so specified.

Closure of pension accounts on transfer out or repayment of balance of contributions

49. All pension accounts relating to a member (P) (other than a pension credit member's account) must be closed if—

(a)a transfer payment is made in respect of P's accrued rights under this scheme; or

(b)P is repaid the balance of contributions under regulation 189.

CHAPTER 4 Active member's account

Establishment of active member's account

50. —(1) A pension account must be established for each active member (“the active member's account”) from the first day of pensionable service under this scheme.

(2) If a person is an active member in relation to more than one employment, only one active member's account is to be established.

(3) The active member's account must remain open until the member leaves all pensionable service under this scheme.

Receipt of transfer values

51.—(1) This regulation applies if a transfer value is received from another pension scheme (other than a connected scheme) in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member's account must be credited with the amount of transferred pension the member is entitled to count under Part 10 (transfers).

Receipt of club transfer values

52.—(1) This regulation applies if a club transfer value is received from another club scheme in relation to an active member of this scheme.

(2) On receipt of the transfer value payment, the active member's account must be credited with an amount of club transfer earned pension the member is entitled to under Part 10 (transfers).

Account to specify amount of pension for a financial year

53.—(1) This regulation applies in relation to every financial year in which an active member's account is open.

(2) The active member's account must specify—

(a)the amount of standard earned pension (if any) for the financial year;

(b)the amount of faster accrual earned pension (if any) for the financial year;

(c)the amount of club transfer earned pension (if any) for the financial year; and

(d)the amount of transferred pension (if any) for the financial year.

(3) The amount is—

(a)for standard earned pension, 1/57th of the member's pensionable earnings for that year;

(b)for faster accrual earned pension, the fraction of the member's pensionable earnings for that year specified in a faster accrual election;

(c)for club transfer earned pension, the sum of all club transfer values received in relation to the member in that year; and

(d)for transferred pension, the amount which a member is entitled to count under Part 10 (transfers) for that year.

Account to specify opening balance and index adjustment

54.—(1) This regulation applies in relation to every financial year in which an active member's account is open other than the financial year in which the account is established.

(2) The active member's account must specify—

(a)the opening balance of standard earned pension for the financial year and the index adjustment for that opening balance;

(b)the opening balance of faster accrual earned pension (if any) for the financial year and the index adjustment for that opening balance; and

(c)the opening balance of transferred pension (if any) for the financial year and the index adjustment for that opening balance.

(3) The opening balance in relation to a description of pension—

(a)for the financial year immediately following the financial year in which the active member's account is established, means the amount of that pension for the previous financial year as at the end of the previous financial year;

(b)for any subsequent financial year, means the sum of the following amounts—

(i)the opening balance of that pension for the previous financial year and the index adjustment for that opening balance; and

(ii)the amount of that pension for the previous financial year as at the end of the previous financial year.

(4) In this regulation, “ a description of pension ” means—

(a)standard earned pension;

(b)faster accrual earned pension (if any);

(c)club transfer earned pension (if any); and

(d)transferred pension (if any).

Ill-health pension ceases to be payable

55. If an ill-health pension ceases to be payable to a person (P) under regulation 114 or 118 and P re-enters pensionable service—

(a)the pensioner member's account must be closed;

(b)the active member's account must be re-established and credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Phased retirement pension ceases to be payable

56. If a phased retirement pension ceases to be payable under regulation 97 and P re-enters pensionable service—

(a)the pensioner member's account must be closed; and

(b)the active member's account must be adjusted by increasing the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 5 Additional pension account

Establishment of additional pension account

57.—(1) An additional pension account must be established for each active member (P) in respect of whom an additional pension election is made.

(2) If P is an active member in relation to more than one employment, only one additional pension account is to be established.

(3) The additional pension account must remain open until—

(a)an additional pension is paid in respect of P;

(b)a transfer payment is made in respect of P's rights to the accrued additional pension; or

(c)all additional pension contributions are refunded under Part 2 of Schedule 2.

(4) Part 2 of Schedule 2 has effect in relation to the making of an additional pension election.

Account to specify amount of additional pension

58.—(1) This regulation applies in relation to every financial year in which an additional pension election is made.

(2) The additional pension account must specify in relation to any additional pension election made in that financial year an amount equal to the annual rate of additional (self only) pension specified in the additional pension election.

Account to specify opening balance and PIA index adjustment

59.—(1) This regulation applies in relation to every financial year in which an additional pension account is open other than the financial year in which the account is established.

(2) The account must specify the opening balance of additional pension for the financial year and the PIA index adjustment for that opening balance.

(3) The opening balance of additional pension—

(a)for the financial year immediately following the financial year in which the additional pension account is established, means the amount of additional pension specified in the account as at the end of the previous financial year; and

(b)for any subsequent financial year, means the sum of the following amounts—

(i)the opening balance of additional pension for the previous financial year;

(ii)the PIA index adjustment for that opening balance; and

(iii)the amount of additional pension for the previous financial year.

Ill-health pension ceases to be payable

60.—(1) This regulation applies if—

(a)an additional pension is payable with an ill-health pension; and

(b)the ill-health pension ceases to be payable under regulation 114 or 118.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

Phased retirement pension ceases to be payable

61.—(1) This regulation applies if—

(a)an additional pension is payable with a phased retirement pension; and

(b)the phased retirement pension ceases to be payable under regulation 97.

(2) The additional pension account must be re-established and credited with an amount equal to the annual rate of additional (self only) pension.

CHAPTER 6 Deferred member's account

Establishment of deferred member's account

62. When an active member leaves all pensionable service and becomes a deferred member—

(a)the active member's account must be closed; and

(b) a pension account for the deferred member must be established (“deferred member's account”).

Account to specify amount of accrued earned pension and leaver index adjustment

63. The deferred member's account must specify—

(a)the amount of accrued earned pension calculated under regulation 46(3); and

(b)the leaver index adjustment for that amount.

Deferred member's account closed after break not exceeding 5 years

64.—(1) If a deferred member re-enters pensionable service under this scheme after a gap in service not exceeding 5 years—

(a)the deferred member's account must be closed; and

(b)the active member's account must be re-established.

(2) The active member's account—

(a)must specify the amount of accrued earned pension as at the beginning of the gap in service; and

(b)must be adjusted as if the member had continued as an active member during the gap in service but had received no pensionable earnings.

Deferred member's account closed after service under another public service scheme

65.—(1) This regulation applies if—

(a)a deferred member (P) re-enters pensionable service under this scheme after a gap in service of more than 5 years;

(b)the gap in service included a period of service under another public service scheme; and

(c)the period in which P was not in any service was [^F585 years or less^F58] .

(2) When P re-enters pensionable service under this scheme—

(a)the deferred member's account must be closed; and

(b)the active member's account must be re-established.

(3) For the financial year in which the active member's account is re-established, the opening balance for each description of pension must be equal to the amount of accrued pension specified in the deferred member's account in relation to that description of pension as at the end of the gap in service.

Deferred member's account remains open after a gap in service of more than 5 years

66.—(1) This regulation applies if a deferred member (P) re-enters pensionable service under this scheme after a gap in service of more than 5 years.

(2) When P re-enters pensionable service under this scheme (“the further service”)—

(a)the deferred member's account remains open; and

(b)an active member's account must be established in respect of the further service.

(3) In this regulation, “ gap in service ” does not include any period of service under another public service pensions scheme.

Deferred member's account established after ill-health pension ceases to be payable

67. If an ill-health pension ceases to be payable to a person (P) under regulation 114 or 118 and P does not re-enter pensionable service—

(a)a deferred member's account must be established; and

(b)that account must be credited with an amount equal to the annual rate of pension payable immediately before the ill-health pension ceased to be payable.

Deferred member's account established after phased retirement pension ceases to be payable

68. If a phased retirement pension ceases to be payable to a person (P) under regulation 97 and P does not re-enter pensionable service—

(a)a deferred member's account must be established; and

(b)the scheme manager must increase the amount of accrued earned pension by the phased retirement proportion.

CHAPTER 7 Pensioner members' accounts

SECTION 1 Interpretation

Meaning of “full retirement earned pension”

69.—(1) The amount of full retirement earned pension is the sum of—

(a)the amount of accrued earned pension calculated under regulation 46(3); and

(b)the leaver index adjustment for that amount.

(2) In calculating the amount of full retirement earned pension, the leaver index adjustment is not applied to the amount of accrued earned pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active financial year.

Meaning of “full retirement additional pension”

70.—(1) The amount of full retirement additional pension is the sum of—

(a)the amount of accrued additional pension calculated under regulation 46(4); and

(b)the leaver PIA index adjustment for that amount.

(2) In calculating the amount of full retirement additional pension, the leaver PIA index adjustment is not applied to the amount of accrued additional pension if a transfer payment is made in respect of the member's rights to that accrued pension before the end of the last active financial year.

Meaning of “phased retirement earned pension”

71. The amount of phased retirement earned pension is the sum of—

(a)the amount of accrued earned pension calculated under regulation 47(2); and

(b)the leaver index adjustment for that amount.

Meaning of “phased retirement additional pension”

72. The amount of phased retirement additional pension is the sum of—

(a)the amount of accrued additional pension calculated under regulation 47(3); and

(b)the leaver PIA index adjustment for that amount.

Meaning of “standard reduction”

73.—(1) The standard reduction is 3% and applies in relation to a maximum of 3 years between age 65 and a member's normal pension age.

(2) The standard reduction is applied when calculating the annual rate of pension payable to a member (P) who—

(a)was an active member immediately before the entitlement day for a phased retirement pension, premature retirement pension or early retirement pension; and

(b)on the entitlement day for that pension—

(i)has reached normal minimum pension age; but

(ii)has not reached normal pension age.

(3) If a retirement pension becomes payable to P on or after the date on which P reaches 65, the standard reduction applies in relation to a proportion, determined by the scheme manager, of the time left until P reaches normal pension age.

Meaning of “actuarial adjustment”

[^F59 74. —(1) In these Regulations, “actuarial adjustment” means the actuarial adjustment that is applied when calculating the annual rate of pension payable to—

(a)a member who, on the entitlement day for a pension other than an age retirement pension or an ill-health pension, has not reached normal pension age; or

(b)an active member or a deferred member who becomes a pensioner member after reaching normal pension age.

(2) In the case of an actuarial adjustment applied under paragraph (1)(b)—

(a)the actuarial adjustment only relates to a period of pensionable service of the active member or the deferred member after reaching normal pension age; and

(b)the actuarial adjustment must only be applied to the accrued earned pension of the active member or the deferred member that accrued before reaching normal pension age.^F59]

Meaning of “conversion amount”

75. In these Regulations, “ conversion amount ”, in relation to any pension converted in part to a lump sum under regulation 168, means the amount of pension converted to a lump sum.

SECTION 2 Establishment of pensioner members' accounts

Pension accounts for active or deferred members who become pensioner members

76.—(1) When an active member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a)the active member's account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member's account”).

(2) When a deferred member becomes entitled to payment of a retirement pension other than a phased retirement pension in respect of any pensionable service—

(a)the deferred member's account and any additional pension account must be closed; and

(b) a pension account for the pensioner member must be established (“the pensioner member's account”).

(3) The pensioner member's account must specify—

(a)the amount of full retirement earned pension payable to the member, and for that amount—

(i)the standard reduction (if any);

(ii)the actuarial adjustment (if any); and

(iii)the conversion amount (if any); and

(b)the amount of full retirement additional pension payable to the member, and for that amount—

(i)the actuarial adjustment (if any); and

(ii)the conversion amount (if any).

Pension accounts for phased retirement members

77.—(1) On the entitlement day for a phased retirement pension—

(a)a pensioner member's account must be established for the member;

(b)if the member is an active member, the active member's account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(c)if the member is a deferred member, the deferred member's account must be adjusted by reducing the amount of accrued earned pension specified in that account by the phased retirement proportion;

(d)after the adjustment, Chapters 2 and 3 apply in relation to the member as if the amount of accrued earned pension specified in the active member's account or deferred member's account had always been reduced by the phased retirement proportion; and

(e)if the member has applied under regulation 94 to receive additional pension with the phased retirement earned pension, the additional pension account must be closed.

(2) The pensioner member's account must specify—

(a)the amount of phased retirement earned pension payable to the member, and for that amount—

(i)the standard reduction (if any);

(ii)the actuarial adjustment (if any); and

(iii)the conversion amount (if any); and

(b)the amount of phased retirement additional pension payable to the member, and for that amount—

(i)the actuarial adjustment (if any); and

(ii)the conversion amount (if any).

SECTION 3 Closure of accounts

Ill-health pension ceases to be payable

78. If an ill-health pension ceases to be payable under regulation 114 or 118, the pensioner member's account must be closed.

Phased retirement pension ceases to be payable

79. If a phased retirement pension ceases to be payable under regulation 97, the pensioner member's account must be closed.

CHAPTER 8 Pension credit member's pension account

Pension credit member's pension account

80. —(1) A pension account must be established for each pension credit member (“the pension credit member's account”).

(2) The pension credit member's account must specify the amount of credited pension and for that amount—

(a)the actuarial adjustment (if any); and

(b)the conversion amount (if any).

(3) In these Regulations, “ amount of credited pension ” means an amount equal to the pension credit calculated in accordance with regulations made under paragraph 5(b) of Schedule 5 to WRPA 1999.

Separate account for each capacity of membership

81.—(1) If a pension credit member is also an active member, deferred member or pensioner member, the pension credit member's account is in addition to the other account or accounts to be established under this Part in respect of the member in the other capacity.

(2) If a pension credit member has rights under this scheme which are attributable, directly or indirectly, to pension credit derived from the rights of more than one pension debit member of this scheme, a separate account is to be established under this regulation in respect of the pension credit attributable to the rights of each such pension debit member.

PART 5 Retirement benefits for teachers

CHAPTER 1 Interpretation

Qualifying for retirement benefits

82.—(1) A person (P) is qualified for retirement benefits under this scheme if—

(a)P has at least 2 years' qualifying service; or

(b)a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to P.

(2) In these Regulations, a period of qualifying service is the total of the following—

(a)any period of pensionable service under this scheme (other than a period of post-benefit service);

(b)for a transition member, any period of pensionable service under the existing scheme before the member's transition date;

(c)if a transfer payment has been accepted from another occupational pension scheme in relation to P, a period equal to P's period of pensionable service under that scheme.

^M31(3) Any pensionable service in respect of which a person's rights under this scheme or the existing scheme are extinguished is not qualifying service.

Re-qualifying for retirement benefits in respect of post-benefit service

83.—(1) A person (P) is re-qualified for retirement benefits under these Regulations if—

(a)P has at least 12 months' post-benefit qualifying service; or

(b)a transfer payment otherwise than from another occupational pension scheme has been accepted in relation to P during P's post-benefit service.

(2) In these Regulations, a period of post-benefit qualifying service is the total of the following—

(a)any period of post-benefit service under this scheme;

(b)for a transition member in respect of post-benefit service, any period of post-benefit service under the existing scheme before the member's transition date;

(c)if after P enters a period of post-benefit service a transfer payment has been accepted in respect of rights accrued under another occupational pension scheme, a period equal to the person's period of pensionable service under that scheme.

(3) For the purpose of these Regulations, P enters a period of “post-benefit service” when—

(a)P re-enters pensionable service—

(i)on or after reaching normal pension age; and

(ii)after a retirement pension (other than a phased retirement pension) or a short-service serious ill-health grant becomes payable; or

(b)P re-enters pensionable service—

(i)before reaching normal pension age; and

(ii)after a retirement pension (other than an ill-health pension or phased retirement pension) or a short-service serious ill-health grant becomes payable.

(4) For the purpose of these Regulations, P does not enter a period of “post-benefit service” if P re-enters pensionable service—

(a)before reaching normal pension age; and

(b)after an ill-health pension or phased retirement pension becomes payable.

^M32(5) Any period of service in respect of which P's rights under this scheme or the existing scheme are extinguished is not included in a period of post-benefit service .

Payment of retirement benefits for post-benefit service

84. For the purpose of calculating benefits in respect of a period of post-benefit service, a person (P) is taken to enter pensionable service for the first time when P enters the period of post-benefit service.

CHAPTER 2 Age retirement

Meaning of “entitlement day” (age retirement pension)

85.—(1) The entitlement day for an age retirement pension is as follows.

(2) If a person (P) is qualified for retirement benefits, the entitlement day is the earliest of the following—

(a)if P is in pensionable service on the day on which P reaches normal pension age—

(i)the day after P leaves all pensionable service; or

(ii)the day on which P reaches 75; and

(b)if P is not in pensionable service on the day on which P reaches normal pension age, the day on which P reaches normal pension age.

(3) If P is re-qualified for retirement benefits, the entitlement day is the earliest of the following—

(a)if P is in pensionable service on the date of application, the day after P leaves all pensionable service;

(b)if P has left all pensionable service on the date of application, such day as P specifies in the application, which must be no earlier than 6 weeks after the date of application;

(c)the date of P's 75th birthday.

(4) In this regulation, “ date of application ” means the day on which P applies for the payment of an age retirement pension.

Entitlement to age retirement pension

86.—(1) A member (P) is entitled to payment of an age retirement pension from the entitlement day if—

(a)P has reached normal pension age;

(b)P is qualified or re-qualified for retirement benefits;

(c)P has left all pensionable service; and

(d)P has applied under regulation 162 for the payment of an age retirement pension.

(2) An age retirement pension is payable for life.

Annual rate of age retirement pension

87.—(1) This regulation applies if an active member or a deferred member (P) becomes entitled to payment of an age retirement pension.

(2) The annual rate of age retirement pension payable to P is found by—

(a)taking the amount of full retirement earned pension specified in P's pensioner member's account;

(b)applying the actuarial adjustment (if any) specified in that account in relation to that amount;

(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;

(d)adding the amount of full retirement additional pension (if any) specified in that account; and

(e)subtracting the conversion amount (if any) specified in that account in relation to that amount.

Arrears of pension payable to deferred member who becomes pensioner member after reaching normal pension age

88. A deferred member (P) who becomes a pensioner member after reaching normal pension age is entitled to be paid the total of the following—

(a)the amount found by multiplying the sum of the amount of full retirement earned pension and the amount of full retirement additional pension (if any) specified in P's pensioner member's account by the period (in years and fractions of a year) for which P was a deferred member after reaching normal pension age; and

(b)interest payable on that amount in accordance with regulation 178.

CHAPTER 3 Phased retirement

Interpretation of Chapter

89.—(1) In this Chapter—

[^F60 “average annual rate” means the average rate of pensionable earnings in a 12 month period ^F60] ;

“ increased annual rate ”, in relation to pensionable earnings, has the meaning given in regulation 97(2);

“ new employment ” has the meaning given in regulation 91(2);

“ new employment condition ” has the meaning given in regulation 91;

“pensionable earnings”, for a person not in an eligible employment, means the amount which would be the person's pensionable earnings if the employment were eligible employment;

“ phased retirement application ” means an application under regulation 162 for payment of a phased retirement pension;

“ previous employment ” has the meaning given in regulation 91(2);

“ reduced annual rate ”, in relation to pensionable earnings, means the annual rate of P's pensionable earnings following the reduction referred to in regulation 90;

“ reduced annual rate condition ” has the meaning given in regulation 90.

^M33(2) When calculating the reduced annual rate or increased annual rate of a person's pensionable earnings, any standard increase which takes effect on or after the entitlement day must be ignored.

The reduced annual rate condition

90. A person (P) meets the reduced annual rate condition if—

(a)P is in one or more eligible employments;

(b)the terms of employment change and as a result there is a reduction in the annual rate of P's pensionable earnings; and

(c)the reduced annual rate is not more than 80% of the average annual rate of P's pensionable earnings for the [^F6112 months^F61] of pensionable service immediately before the reduction.

The new employment condition

91.—(1) A person (P) meets the new employment condition if—

(a)P leaves all eligible employment;

(b)within 6 months after leaving all eligible employment, P enters a new employment; and

(c)on the day after the entitlement day referred to in regulation 92 the reduced annual rate of P's pensionable earnings in the new employment does not exceed 80% of the average annual rate of P's pensionable earnings for the last [^F6212 months^F62] of the previous employment.

(2) In this regulation—

“ a new employment ” means—

“ previous employment ” means one or more previous eligible employments.

Meaning of “entitlement day” (phased retirement pension)

92. The entitlement day for a phased retirement pension is—

(a)if a person (P) meets the reduced annual rate condition, the day on which the reduced annual rate takes effect; or

(b)if P meets the new employment condition, the day on which P enters a new employment.

Entitlement to phased retirement pension

93.—(1) A person (P) is entitled to payment of a phased retirement earned pension from the entitlement day if—

(a)P has reached normal minimum pension age but has not reached 75;

(b)P is qualified or re-qualified for retirement benefits;

(c)P meets the reduced annual rate condition or the new employment condition;

(d)P has made a phased retirement application; and

(e)P has not applied under regulation 162 for payment of any other retirement pension.

(2) P is entitled to payment of a phased retirement additional pension from the entitlement day if P has applied under regulation 94 to receive an additional pension with the phased retirement earned pension.

(3) Subject to regulation 97, a phased retirement pension is payable for life.

Phased retirement applications

94.—(1) For the purpose of regulation 93, a person (P) must make a phased retirement application within 3 months after the entitlement day.

(2) The application must—

(a)be accompanied by a certificate from P's current employer stating that P meets the reduced annual rate condition or the new employment condition; and

(b)state whether P is applying to receive an additional pension with the phased retirement earned pension.

(3) A certificate is not required in relation to the new employment condition if the scheme manager is satisfied that P's current employer has not received the necessary information about P's previous employment from P's previous employer.

Phased retirement proportion

95. —(1) A phased retirement application must specify the proportion of accrued earned pension for which payment is claimed (“phased retirement proportion”).

(2) The phased retirement proportion must not exceed 75%.

Annual rate of phased retirement pension

96. The annual rate of phased retirement pension payable to a member (P) is found by—

(a)taking the amount of phased retirement earned pension specified in P's pensioner member's account;

(b)applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;

(d)if P has applied to receive an additional pension with the phased retirement earned pension, adding the amount of phased retirement additional pension specified in that account;

(e)applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(f)subtracting the conversion amount (if any) specified in that account in relation to that amount.

Cessation of phased retirement pension

97. A phased retirement pension ceases to be payable to a member (P) if—

(a)in the 12 months after the entitlement day, the annual rate of P's pensionable earnings increases; and

(b)as a result, the annual amount of P's pensionable earnings in that 12 month period is more than 80% of the average annual rate—

(i)if P met the reduced annual rate condition, in the [^F6312 months^F63] of pensionable service immediately before the reduced annual rate took effect; or

(ii)if P met the new employment condition, in the last [^F6412 months^F64] of the previous employment.

Subsequent phased retirement applications

98.—(1) A person (P) may make a subsequent phased retirement application if—

(a)a phased retirement pension ceases to be payable under regulation 97 but P once more meets the reduced annual rate condition or the new employment condition; or

(b)while P is receiving a phased retirement pension, the terms of P's employment change or P enters a new employment and P once more meets the reduced annual rate condition or the new employment condition.

(2) P may not make a subsequent phased retirement application if—

(a)P has made 3 previous phased retirement applications; or

(b)P has not reached 60 and has made 2 previous phased retirement applications.

(3) If P makes a subsequent phased retirement application after a phased retirement pension ceases to be payable—

(a)the phased retirement proportion specified in that application must be the same as or greater than the phased retirement proportion specified in the original application;

(b) if P applied under regulation 94 to receive an additional pension as part of the original pension, P must apply under that regulation to receive an additional pension as part of the new phased retirement pension (“the new pension”); and

(c) if P received a lump sum under regulation 168 in place of part of the original pension (“original lump sum”)—

(i) P must apply under that regulation to receive a lump sum in place of part of the new pension (“new lump sum”);

(ii)the amount of the new lump sum must be the same as or greater than the amount of the original lump sum; and

(iii)the amount of lump sum payable is the amount of the new lump sum less the amount of the original lump sum.

(4) Any subsequent phased retirement application must be made in accordance with regulation 94.

(5) In this regulation—

“ original application ” means P's application under regulation 162 for payment of the original pension;

“ original pension ” means a phased retirement pension that ceases to be payable under regulation 97;

“ previous phased retirement application ” includes the original application.

CHAPTER 4 Premature retirement

Interpretation of “pensionable service”

99. For the purpose of this Chapter, a person in respect of whom an election under regulation 26 has effect is not treated as being in pensionable service.

Meaning of “entitlement day” (premature retirement pension)

100. The entitlement day for a premature retirement pension is the day after a person leaves all eligible employment.

Entitlement to premature retirement pension

101.—(1) A person (P) is entitled to payment of a premature retirement pension from the entitlement day if—

(a)P has reached normal minimum pension age but has not reached normal pension age;

(b)P is qualified or re-qualified for retirement benefits;

(c)P's pensionable service in relation to an employment is terminated by reason of P's redundancy or in the interests of the efficient discharge of the functions of P's employer;

(d)P's employer gives written notice to the scheme manager stating that—

(i)P's pensionable service was terminated by reason of P's redundancy or in the interests of the efficient discharge of the employer's functions; and

(ii)the employer agrees that a premature retirement pension should become payable to P;

(e)P receives no compensation under [^F65Part 3 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015^F65] as a result of P's pensionable service being terminated;

(f)P has left all eligible employment;

(g)P has applied under regulation 162 for payment of a premature retirement pension; and

(h)P has not applied under that regulation for payment of any other retirement pension.

(2) P is not entitled to payment of a premature retirement pension in respect of any pensionable service after P reaches normal pension age.

(3) If the employer is not the local authority, the local authority must give the notice under sub-paragraph (1)(d) if—

(a)P's pensionable service was in relation to an employment that falls within category A (as defined by [^F66regulation 34(1) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015^F66] ; and

(b)the governing body of the school or institution mentioned in that provision asks the local authority to do so.

(4) A premature retirement pension is payable for life.

Annual rate of premature retirement pension

102. The annual rate of premature retirement pension payable to a person (P) is found by—

(a)taking the amount of full retirement earned pension specified in P's pensioner member's account;

(b)applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;

(d)adding the amount of full retirement additional pension (if any) specified in that account;

(e)applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(f)subtracting the conversion amount (if any) specified in that account in relation to that amount.

CHAPTER 5 Early retirement

Meaning of “entitlement day” (early retirement pension)

103.—(1) The entitlement day for an early retirement pension is as follows.

(2) If a person (P) is not in eligible employment when P applies under regulation 162 for payment of the pension, the entitlement day is a day specified in P's application which is at least 6 weeks after the day on which the application is made.

(3) If P is in eligible employment when P applies under regulation 162 for payment of the pension and P's employer agrees that an early retirement pension should become payable to P, the entitlement day is the day after P leaves all eligible employment.

(4) If P is in eligible employment when P applies under regulation 162 for payment of the pension and P's employer does not agree that an early retirement pension should become payable to P—

(a)if P continues in eligible employment for at least 6 months after the date on which P asks P's employer to agree, the entitlement day is the day after P leaves all eligible employment;

(b)if P leaves all eligible employment before the end of 6 months after the date on which P asks P's employer to agree, the entitlement day is a day specified in P's application which is at least 6 weeks after the day on which the application is made.

(5) Despite sub-paragraphs (2) to (4), the entitlement day must not be before the day on which P—

(a)reaches normal minimum pension age; or

(b)leaves all eligible employment.

Entitlement to early retirement pension

104.—(1) A person (P) is entitled to payment of an early retirement pension from the entitlement day if—

(a)P has reached normal minimum pension age but has not reached normal pension age;

(b)P is qualified or re-qualified for retirement benefits;

(c)P has left all eligible employment;

(d)P has applied under regulation 162 for the payment of an early retirement pension; and

(e)P has not applied under that regulation for payment of any other retirement pension.

[^F67 (1A) P is not entitled to payment of an early retirement pension from the entitlement day if—

(a)P has applied under regulation 162 for payment of an early retirement pension;

(b)P’s application is made in accordance with regulation 103(2) or (4)(b); and

(c)P returns to eligible employment before the entitlement day specified in P’s application.^F67]

(2) P is not entitled to payment of an early retirement pension in respect of any pensionable service after P reaches normal pension age.

(3) An early retirement pension is payable for life.

Annual rate of early retirement pension

105. The annual rate of the early retirement pension payable to a person (P) is found by—

(a)taking the amount of full retirement earned pension specified in P's pensioner member's account;

(b)applying the standard reduction (if any) and the actuarial adjustment (if any) specified in that account in relation to that amount;

(c)subtracting the conversion amount (if any) specified in that account in relation to that amount;

(d)adding the amount of full retirement additional pension (if any) specified in that account;

(e)applying the actuarial adjustment (if any) specified in that account in relation to that amount; and

(f)subtracting the conversion amount (if any) specified in that account in relation to that amount.

CHAPTER 6 Ill-health retirement

SECTION 1 General

Interpretation

106. In this Chapter—

“ ill-health application ” means an application under regulation 162 for payment of—

“ stepped down employment ” has the meaning given in regulation 117.

Incapacity definitions

107. In this Chapter, a person (P)—

(a)is incapacitated if, as a result of illness or injury, P is unfit to be in eligible employment despite appropriate medical treatment;

(b)meets the incapacity condition if—

(i)P is incapacitated; and

(ii)P is likely to be incapacitated permanently; and

(c)meets the total incapacity condition if—

(i)P is incapacitated; and

(ii)P's ability to carry out any work is impaired by more than 90% and is likely to be impaired by more than 90% permanently.

Ill-health applications

108.—(1) An ill-health application made by a person (P)—

(a)must be accompanied by all the medical evidence necessary for the scheme manager to determine whether P is entitled to the payment of an ill-health pension and, if applicable, a total incapacity pension; and

(b)must be signed by P's employer unless—

(i)P left all eligible employment for a reason other than because P was incapacitated; or

(ii)P made the ill-health application more than 2 years after the last day of pensionable service.

(2) The medical evidence must include a medical report containing evidence that P meets—

(a)the incapacity condition; and

(b)if applicable, the total incapacity condition.

SECTION 2 Ill-health pension

Entitlement day for ill-health pension

109.[^F68—(1)^F68] The entitlement day for an ill-health pension is the latest of the following—

(a)the day that falls 6 months before the date of a medical report following consideration of which the scheme manager is satisfied that a person (P) meets the incapacity condition or, if applicable, the total incapacity condition;

(b)the day specified in that medical report as the day on which P first met the incapacity condition or, if applicable, the total incapacity condition;

(c)the day after P leaves all eligible employment;

(d)the date of any previous medical report following consideration of which the scheme manager is not satisfied that P meets the incapacity condition or, if applicable, the total incapacity condition.

[^F69 (2) The scheme manager may only make the determination mentioned in paragraph (1)(a) after consideration of a medical report produced no more than 18 months before the date on which P made the ill-health application.^F69]

Entitlement to ill-health pension

110.—(1) A member (P) is entitled to payment of an ill-health pension from the entitlement day if—

(a)P is qualified or re-qualified for retirement benefits;

(b)P has not reached normal pension age;

(c)P has left all eligible employment;

(d)P has applied under regulation 162 for payment of an ill-health pension;

(e)P has not applied under that regulation for payment of any other retirement pension; and

(f)the scheme manager is satisfied after consideration of a medical report—

(i)if paragraph (2) applies, that P meets the incapacity condition and the total incapacity condition; or

(ii)if paragraph (3) applies, that P meets the incapacity condition.

(2) This paragraph applies if—

(a)P left all eligible employment for a reason other than because P was incapacitated; or

(b)P made the ill-health application more than 2 years after the last day of pensionable service.

(3) This paragraph applies if—

(a)P left all [^F70pensionable service^F70] because P was incapacitated; and

(b)P made the ill-health application—

(i)before leaving all eligible employment; or

(ii)within 2 years after the last day of pensionable service.

[^F71 (3A) Where paragraph (3) applies, the illness or injury which P relies upon in P’s ill-health application to meet the incapacity condition must be—

(a)the same illness or injury which was the reason, or as the case may be, one of the reasons for P leaving pensionable employment; or

(b)connected to or consequent upon that injury or illness.^F71]

(4) Except as provided in regulation 114, an ill-health pension is payable for life.

No entitlement to ill-health pension

111.—(1) A member (P) is not entitled to payment of an ill-health pension—

(a)in respect of any pensionable service after P reaches normal pension age; or

(b)if paragraph (2) applies.

(2) This paragraph applies if—

(a)a direction under section 142 of EA 2002 given on a ground mentioned in subsection (4)(a), (b) or (c) of that section has effect in respect of P,

(b)the Secretary of State is considering giving such a direction in respect of P,

(c)P is included, or is being considered for inclusion, in any of the lists mentioned in paragraph (4), or

(d)^M34the General Teaching Council for Wales or the Secretary of State has made, or the General Teaching Council for Wales or the Secretary of State makes, or is considering making, a prohibition order in relation to P on the grounds of unacceptable professional conduct or that P has been convicted of a relevant offence.

(3) But paragraph (2) does not apply if the Secretary of State determines that the only reason for the direction or the direction being considered, for including, or considering including, P in any of the lists; or for making, or considering making, a prohibition order is unrelated to P's culpable behaviour.

(4) The lists are—

(a)the children's barred list (established under section 2(1)(a) of SVGA 2006);

(b)a list maintained under the law of Scotland or Northern Ireland which the Secretary of State specifies by order under section 3(2)(b) of SVGA 2006 as corresponding to the children's barred list;

(c)the adults' barred list (established under section 2(1)(b) of SVGA 2006);

(d)a list maintained under the law of Scotland or Northern Ireland which the Secretary of State specifies by order under section 3(3)(b) of SVGA 2006 as corresponding to the adults' barred list.

(5) In this regulation—

^M35 “ prohibition order ”, “ relevant offence ” and “ unacceptable professional conduct ” have the same meanings as in Schedule 2 to the Teaching and Higher Education Act 1998 ; and

^M36 “ SVGA 2006 ” means the Safeguarding Vulnerable Groups Act 2006 .

When ill-health pension does not become payable

112.—(1) If an ill-health pension does not become payable before the death of a member (D), a death grant is payable in respect of the member.

(2) For the purpose of paragraph (1)—

(a)an ill-health pension does not become payable before D's death unless the initial payment of the pension is made before D's death; and

(b)an ill-health pension that becomes payable before D's death but ceases to be payable under regulation 114 or 118 is taken not to become payable before D's death.

[^F72When ill-health pension is taken to become payable before death of member: commutation of whole pension (serious ill-health)

112A. An ill-health pension is taken to become payable before the death of a member (D) if—

(a)before D’s death D made an ill-health application;

(b)at the same time as D made the ill-health application, D made an application under regulation 171 (commutation of whole pension (serious ill-health)) for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c)following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.^F72]

Annual rate of ill-health pension

113. The annual rate of ill-health pension payable to a person (P) is found by—

(a)taking the amount of full retirement earned pension specified in P's pensioner member's account;

(b)adding the amount of full retirement additional pension (if any) specified in that account; and

(c)subtracting the conversion amount (if any) specified in that account in relation to the sum of those amounts.

When ill-health pension ceases to be payable

114. An ill-health pension ceases to be payable to a person (P), unless P has reached normal pension age, on the earlier of the following dates—

(a)the date on which P re-enters eligible employment;

(b)the date on which P engages in any work as a teacher which is not an eligible employment.

SECTION 3 Total incapacity pension

Meaning of “entitlement day” (total incapacity pension)

115. The entitlement day for a total incapacity pension payable with an ill-health pension is the same as the entitlement day for the ill-health pension.

Entitlement to total incapacity pension

116.—(1) A total incapacity pension is payable to a person (P) from the entitlement day if—

(a)P is entitled to an ill-health pension because the scheme manager is satisfied that P meets the incapacity condition;

(2) For a person in stepped down employment, the scheme manager must be satisfied that P's total incapacity is wholly or partly related to the ill-health which led to the change in the terms of employment.

(3) A total incapacity pension is not payable to P if—

(a)P left an eligible employment for a reason other than because P was incapacitated; or

(b)P made the ill-health application—

(i)after leaving all eligible employment; and

(ii)more than 2 years after the last day of pensionable service.

(4) Except as provided in regulation 118, the total incapacity pension is payable for life.

Annual rate of total incapacity pension

117.—(1) The annual rate of total incapacity pension payable to a person (P) is—

(2) P is in stepped down employment if—

(a)P is in an eligible employment;

(b)the terms of that employment are changed wholly or partly because of P's ill-health; and

(c)as a result of the changed terms of employment, P's annual rate of pensionable earnings is reduced.

(3) For the purpose of [^F73sub-paragraph (ii)^F73] of the definition of AR, P's annual rate of pensionable earnings is increased by the amount (if any) by which it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971—

(a)beginning, and first qualifying for increases under that Act, on the day after the day on which P's annual rate of pensionable earnings is reduced; and

(b)ending on the day on which the scheme manager receives P's application for the total incapacity pension.

Cessation of total incapacity pension

118.—(1) A total incapacity pension ceases to be payable to a person (P) on the date on which P's ability to carry out any work ceases to be impaired by more than 90%, unless P has reached normal pension age before that date.

(2) For the purpose of paragraph (1), P's ability to carry out any work ceases to be impaired by more than 90% on the earliest of the following dates—

(a)the date of a medical report requested by the scheme manager under regulation 175 which shows that P no longer meets the incapacity condition or, if applicable, the total incapacity condition;

(b)the date on which P re-enters eligible employment;

(c)the date on which P engages in any work as a teacher which is not an eligible employment;

(d)the date on which P engages in any other form of work unless—

(i)P provides the scheme manager with a certificate from a registered medical practitioner stating that, in the opinion of the practitioner, P continues to meet the total incapacity condition despite engaging in such work, and

(ii)the scheme manager is satisfied that P continues to meet that condition despite engaging in such work.

CHAPTER 7 Short-service serious ill-health grant

Application for payment of grant

119.—(1) An application made by a person (P) under regulation 162 for payment of a short-service serious ill-health grant—

(a)must be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to the payment; and

(b)must be signed by P's employer.

(2) The medical evidence must include a medical report containing evidence that P—

(a)meets the incapacity condition; and

(b)has a life expectancy of less than a year.

Meaning of “entitlement day” (short-service serious ill-health grant)

120. The entitlement day for a short-service serious ill-health grant is the day after a person (P) leaves all eligible employment because P is incapacitated.

Entitlement to short-service serious ill-health grant

121.—(1) A person (P) is entitled to payment of a short-service serious ill-health grant on the entitlement day if—

(a)P was in pensionable service (other than post-benefit service) for at least 12 months;

(b)P has left all eligible employment because P is incapacitated;

(c)P is not qualified for retirement benefits;

(d)P has not reached 75;

(e)within 6 months of leaving all pensionable service P has applied under regulation 162 for payment of the grant; and

(f)the scheme manager is satisfied after consideration of a medical report that—

(i)P meets the incapacity condition; and

(ii)P has a life expectancy of less than a year.

(2) This regulation does not apply if P is in a period of post-benefit service immediately before the entitlement day.

Amount of grant

122.—(1) The amount of a short-service serious ill-health grant is the greater of—

(a)1/6th of the member's annual rate of pensionable earnings as at the last day of pensionable service; and

(b)the total of the amounts specified in paragraph (2).

(2) The amounts are—

(a)all members' contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of receipt of the application under regulation 119, except any paid in respect of a period of pensionable service for which a short-service serious ill-health grant has been paid; and

(b)interest on those contributions from the first day of the financial year following that in which they were paid to the date of payment at 3% per year, compounded with yearly rests.

CHAPTER 8 Short-service annuity for post-benefit service

Meaning of “entitlement day” (short-service annuity)

123. The entitlement day for a short-service annuity is the date specified in an application under regulation 162 for payment of the annuity, which must be no earlier than 6 weeks after the day on which the application is made.

Entitlement to short-service annuity

124.—(1) A person (P) is entitled to payment from the entitlement day of a short-service annuity in respect of post-benefit service if—

(a)P enters a period of post-benefit service;

(b)P is not re-qualified for retirement benefits in respect of that service;

(c)P leaves all eligible employment; and

(d)P has applied under regulation 162 for payment of the annuity.

(2) A short-service annuity is payable for life.

Annual rate of short-service annuity

125. The annual rate of a short-service annuity is the actuarial equivalent of the sum of—

(a)all of the members' contributions, faster accrual contributions (if any) and additional pension contributions (if any) in respect of a period of post-benefit service paid up to the date of receipt of the application under regulation 162; and

(b)interest to the date of payment at 3% per year, compounded with yearly rests on those contributions from the first day of the financial year following that in which they were paid.

PART 6 Survivor's benefits

CHAPTER 1 General interpretation

General

126. In this Part—

“ member ” means a member other than a pension credit member;

“ survivor's benefits ” means one or more of the following—

“ survivor's pension ” means a surviving adult pension, additional (surviving adult) pension or child pension.

Meaning of “dies in service”

127.—(1) A member (D) dies in service for the purpose of survivor's benefits if—

(a)D dies while in pensionable service under this scheme;

(b)D dies while on non-pensionable family leave immediately following a period of pensionable service under this scheme;

(c)as at the date of D's death, an election under regulation 26 has effect or is taken to have effect; or

(d)paragraph (2) applies.

(2) This paragraph applies if—

(a)D dies within 12 months after leaving pensionable service in all eligible employment because P was incapacitated; and

(b)a retirement pension other than a phased retirement pension does not become payable in relation to that service before D's death.

Meaning of “dies out of service”

128. A member (D) dies out of service for the purpose of survivor's benefits if—

(a)D does not die in service; or

(b)D does not die as a pensioner member.

Meaning of “dies as a pensioner member”

129. In this Part, a member (D) dies as a pensioner member if a retirement pension becomes payable before D's death.

When a retirement pension does not become payable

130. For the purpose of these Regulations—

(a)an ill-health pension does not become payable before the death of a member (D) unless the initial payment of the pension is made before D's death;

(b)an ill-health pension that does becomes payable before D's death but ceases to be payable under regulation 114 or 118 is taken not to become payable before D's death; and

(c)a phased retirement pension that does become payable before D's death but ceases to be payable under regulation 97 does not become payable before D's death.

Payment of survivor benefits for post-benefit service

131. For the purpose of calculating survivor benefits in respect of a member's period of post-benefit service, the member (D) is taken to have entered pensionable service for the first time when D entered the period of post-benefit service.

Death of a dual capacity member

132. The annual rate of a survivor's pension applies to the surviving adult or eligible child of a dual capacity member in relation to each of the member's capacities.

CHAPTER 2 Specific interpretation

Meaning of “death grant beneficiary”

133. —(1) For the purpose of a death grant, a person (P) is a member's “death grant beneficiary” if—

(a)P is an individual;

(b)the member has nominated P to receive a death grant or a share of a death grant on the member's death; and

(c)at the date of the member's death, the nomination has effect.

(2) A member may nominate P by giving written notice to the scheme manager.

(3) The nomination ceases to have effect if—

(a)the member revokes the nomination by giving written notice to the scheme manager,

(b)the member subsequently nominates a different person in place of P, or

(c)P dies.

(4) If a member nominates more than one death grant beneficiary, the notice must state—

(a)the share of the death grant to be paid to each beneficiary; and

(b)whether, if a beneficiary dies before the member, the beneficiary's share must be paid—

(i)to the surviving beneficiaries in accordance with paragraph (5), or

(ii)to the member's personal representatives as part of the member's estate.

(5) If a beneficiary's share is to be paid to the surviving beneficiaries it is to be paid to them in shares such that the proportion which each surviving beneficiary's share bears to each of the other surviving beneficiaries' shares is the same as it was in the nomination.

Meaning of “surviving adult”

134. —(1) For the purpose of a death grant, the “surviving adult” of a member who has died means the member's—

(a)surviving spouse;

(b)surviving civil partner; or

(c)[^F74 surviving qualifying partner^F74] .

(2) For the purpose of a survivor's pension, the “surviving adult” of a member who has died means the member's—

(a)surviving spouse;

(b)surviving civil partner;

(c)[^F75 surviving qualifying partner^F75] ; or

(d)surviving nominated beneficiary.

[^F76Surviving qualifying partner

135. —(1) For the purposes of a survivor’s pension, a member’s partner (P) is a “surviving qualifying partner” if the conditions in paragraph (2) are satisfied for a continuous period of at least 2 years ending on the member’s death.

(2) The conditions are—

(a)the member is able to marry or form a civil partnership with P;

(b)the member and P live with each other as if they were a married couple or civil partners;

(c)neither the member nor P lives with a third person as if they were a married couple or civil partners; and

(d)the member and P are financially interdependent or P is financially dependent on the member.^F76]

Meaning of “surviving nominated beneficiary”

136. —(1) For the purpose of a survivor's pension, a person (P) is a member's “surviving nominated beneficiary” if—

(a)the member has nominated P to receive a pension on the member's death; and

(b)at the date of the member's death—

(i)the nomination has effect; and

(ii)the conditions in paragraph (4) are satisfied.

(2) A member may nominate P by giving written notice to the scheme manager.

(3) The notice must—

(a)be signed by both the member and P; and

(b)state that the conditions in paragraph (4) are satisfied.

(4) The conditions are that—

(a)a retirement pension (other than phased retirement pension) has not become payable to the member;

(b)P is an individual;

(c)neither the member nor P is married or in a civil partnership;

[^F77 (ca)no person has satisfied the conditions in regulation 135 in relation to the member for a continuous period of 2 years or more;^F77]

(d)P is not living with another person as if they were a married couple or civil partners;

(e)P is not an eligible child of the member;

(f)if P is the member's parent, brother or sister—

(i)P has never married nor formed a civil partnership; or

(ii)P is widowed or a surviving civil partner;

(g)if P is the member's step-parent, P is widowed or a surviving civil partner; and

(h)P is wholly or mainly financially dependent on the member.

(5) A nomination ceases to have effect if—

(a)the member or P gives written notice of revocation to the scheme manager;

(b)any condition in paragraph (4) ceases to be satisfied;

(c)the member makes a subsequent nomination under this regulation; or

(d)P dies.

Meaning of “eligible child”

137. —(1) In these Regulations, a person is an “eligible child” of a member who dies (D) if—

(a)the person—

(i)is D's child and was born before D died or within 12 months after D's death,

(ii)was adopted by D, or

(iii)was accepted by D as a member of D's family and was wholly or mainly financially dependent on D at the date of D's death;

(b)the person has never married or formed a civil partnership; and

(c)the person meets Condition 1, 2 or 3.

(2) Condition 1 is that the person is under 17.

(3) Condition 2 is that the person—

(a)is 17 or over and under 23;

(b)is receiving full-time education; and

(c)since reaching 17, has received full-time education without a break.

(4) Condition 3 is that the person—

(a)is incapable of earning a livelihood by reason of physical or mental impairment;

(b)because of that impairment, was dependent on D at the date of the D's death; and

(c)is not wholly maintained out of money provided by Parliament or raised by council tax by a local authority (including a non-metropolitan district council for an area for which there is a county council).

(5) For the purpose of Condition 2—

(a)a person is receiving full-time education if the person attends a full-time vocational training course which runs for a period of at least 2 years;

(b)a person does not cease to receive full-time education if the person takes a single break of up to a year (or such longer period as the scheme manager may determine in the circumstances of the particular case); and

(c)a person who ceases to receive full-time education is taken to receive it up to and including the week which includes whichever of the following days occurs first after the end of the term in which the person ceases to receive it—

(i)the first Monday in January,

(ii)the first Monday after Easter Monday,

(iii)the first Monday in September.

CHAPTER 3 Death grant

SECTION 1 General

Payment of death grant

138. On the death of a member (D), [^F78where a death grant is to be paid, the payment must be made^F78] —

(a)to D's death grant beneficiary;

(b)if there is more than one death grant beneficiary, to those beneficiaries in the shares determined in accordance with regulation 133(4) and (5); or

(c)if there is no death grant beneficiary—

(i)to D's surviving adult; or

(ii)if there is no surviving adult, to D's personal representatives as part of D's estate.

SECTION 2 Death in service

Death in service grant

139. —(1) A death grant[^F79 may be paid ^F79] under this regulation if a member (D) dies in service (“death in service grant”).

(2) A death in service grant is not payable if—

(a)D dies while in pensionable service that is not post-benefit service and a retirement pension other than a phased retirement pension becomes payable before D's death; or

(b)D dies while in a period of post-benefit service and a retirement pension in respect of that period becomes payable before D's death.

[^F80 (2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a)before D’s death D made an ill-health application;

(b)at the same time as D made the ill-health application, D made an application under regulation 171 (commutation of whole pension (serious ill-health)) for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c)following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.^F80]

(3) If D dies while in pensionable service that is not post-benefit service, the amount of the death in service grant is found by—

(a)multiplying D's annual rate of pensionable earnings as at the date of D's death by 3; and

(b)deducting the following amounts previously paid to D in respect of pensionable service under this scheme—

(i)any part of a lump sum under regulation 168 not attributable to additional pension;

(ii)any short-service serious ill-health grant.

(4) If D dies while in a period of post-benefit service, the amount of the death in service grant is found by—

(a)multiplying D's annual rate of pensionable earnings as at the date of D's death by 3; and

(b)deducting the following amounts previously payable to D under this scheme in respect of both the period of post-benefit service and any previous period of pensionable service—

(i)any part of a lump sum under regulation 168 not attributable to additional pension;

(ii)any short-service serious ill-health grant.

SECTION 3 Death out of service

Death out of service grant

140. —(1) A death grant[^F81 may be paid ^F81] under this regulation if a member (D) dies out of service (“death out of service grant”).

(2) A death out of service grant is not payable if—

(a)D dies following a period of pensionable service that is not post-benefit service and a retirement pension other than a phased retirement pension becomes payable before D's death; or

(b)D dies following a period of post-benefit service and a retirement pension other than a phased retirement pension in respect of that period becomes payable before D's death

[^F82 (2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a)before D’s death D made an ill-health application;

(b)at the same time as D made the ill-health application, D made an application under regulation 171 for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c)following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.^F82]

(3) The amount of the death out of service grant for D—

(a)if a surviving adult pension becomes payable on D's death, is found by—

(i)taking the amount of D's accrued earned pension as at the date of D's death;

(ii)multiplying that amount by 2.25; and

(iii)deducting the amounts specified in paragraph (4);

(b)if a surviving adult pension does not become payable on D's death, but D was qualified for retirement benefits, is the greater of—

(i)the amount calculated under paragraph (3)(a); or

(ii)the total of the amounts specified in paragraph (6).

(4) The amounts to be deducted under paragraph 3(a) are—

(a)if D dies following a period of pensionable service that is not post-benefit service—

(i)any part of a lump sum under regulation 168 not attributable to additional pension; and

(ii)any short-service serious ill-health grant;

(b)if D dies following a period of post-benefit service, any part of a lump sum under regulation 168 in relation to the post-benefit service which is not attributable to additional pension.

(5) If at the date of D's death D was not qualified for retirement benefits or a short-service serious ill-health grant had not become payable, the amount of the death out of service grant is the total of the amounts specified in paragraph (6).

(6) The amounts are—

(a)all members' contributions, additional pension contributions, buy-out contributions and faster accrual contributions paid up to the date of D's death, excluding—

(i)any contributions paid in respect of a pension benefit which has become payable before the application for repayment; and

(ii)any contributions paid in respect of any period of pensionable service for which a short-service serious ill-health grant has been paid;

(b)interest on those contributions from the first day of the financial year following that in which they were paid to the date of payment at 3% per year, compounded with yearly rests.

Supplementary death grant payable on death of pensioner member

141. —(1) A death grant[^F83 may be paid ^F83] under this regulation (“supplementary death grant”) if—

(a)a member (D) dies as a pensioner member; and

(b)AR is greater than AP.

(2) The amount of the death grant is AR – AP, where—

• AR is 5 x D's annual rate of retirement pension payable as at the date of D's death; and

• AP is the total amount of pension which was payable to D up until D's death.

[^F84Pension protection lump sum death benefit

141A.—(1) A death grant is treated for the purposes of FA 2004 as a pension protection lump sum death benefit if and to the extent that—

(a)the member has given written notice to the scheme manager that the death grant is to be so treated; and

(b)the death grant meets all of the conditions required by FA 2004 for it to be treated as a pension protection lump sum death benefit (see paragraph 14 of Part 2 (lump sum death benefit rule) of Schedule 29 to FA 2004).

(2) Tax may be deducted from the death grant if the scheme manager is liable for tax under section 206 (special lump sum death benefits charge) of FA 2004 in respect of a pension protection lump sum death benefit.^F84]

CHAPTER 4 Surviving adult pensions

Surviving adult pensions

142.—(1) This regulation applies on the death of a person (D) if D is qualified or re-qualified for retirement benefits.

(2) A surviving adult pension becomes payable to D's surviving adult from the day after the date of D's death.

(3) Subject to Part 8, a surviving adult pension is payable for life in accordance with Chapter 2 of that Part.

(4) The annual rate of the pension is to be calculated in accordance with regulations 143 and 144.

Annual rate of surviving adult pension: short-term

143.—(1) The short-term rate of surviving adult pension—

(a)applies if a member (D) dies in service or dies as a pensioner member; and

(b)is payable for the first 3 months after D's death.

(2) The short-term rate is calculated as follows—

(a)^F85if D dies in service, it is D's annual rate of pensionable earnings as at the date of D's death (disregarding any reduction by reason of sick leave, maternity leave, paternity leave, ... [^F86shared parental leave [^F87 , parental bereavement leave^F87] [^F88 , neonatal care leave^F88] or adoption leave^F86] );

(b)if D dies as a pensioner member, it is D's annual rate of retirement pension as at the date of D's death; or

(c) if the rate calculated under sub-paragraph (a) or (b) is smaller than the annual rate calculated in accordance with regulation 144 (“long-term rate”), it is the same as the long-term rate.

(3) In this regulation, “ annual rate of retirement pension ” means annual rate of phased retirement earned pension or annual rate of full retirement earned pension.

Annual rate of surviving adult pension: long-term

144.—(1) The long-term rate of surviving adult pension applies—

(a)if a member (D) dies out of service; or

(b)otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of surviving adult pension is 37.5% of D's full retirement earned pension as at the date of D's death.

(3) If a pension-sharing order has taken effect, the long-term rate must be reduced by the same proportion by which D's annual rate of retirement pension as at the date of D's death was reduced or would have been reduced by that pension-sharing order.

Enhancement of surviving adult pension

145.—(1) This regulation applies if a member (D) has not reached prospective normal pension age and—

(a)dies in service; or

(b)dies as a pensioner member after an ill-health pension and a total incapacity pension become payable to D.

(2) If this regulation applies, the long-term rate of surviving adult pension is 37.5% of the sum of the following amounts—

(a)the amount of D's accrued earned pension as at the date of D's death; and

(b)the amount found by multiplying half D's prospective service (in years and fractions of a year) by 1/57th of D's annual rate of pensionable earnings as at the date of D's death.

(3) In this regulation, “ D's prospective service ” means the period (in years and fractions of a year) beginning with the day after the date of D's death and ending on the day on which D would have reached prospective normal pension age.

CHAPTER 5 Additional (surviving adult) pensions

Additional pensions for surviving adults

146.—(1) This regulation applies on the death of a member (D) if—

(a)D is qualified or re-qualified for retirement benefits;

(b)the scheme manager accepted an election for an additional (self only) pension and an additional (surviving adult) pension in respect of D;

(c)an additional pension account was established in respect of D; and

(d)that account specified an amount of additional pension immediately before D's death.

(2) From the day after D's death, an additional (surviving adult) pension becomes payable to D's surviving adult.

(3) An additional (surviving adult) pension is payable for life.

Annual rate of additional (surviving adult) pension: short-term

147.—(1) The short-term rate of additional (surviving adult) pension—

(a)applies if a member (D) dies in service or dies as a pensioner member; and

(b)is payable for the first 3 months after D's death.

(2) The short-term rate is calculated as follows—

(a)if D dies in service, it is the annual rate of additional (self only) pension payable as at D's death;

(b)if D dies as a pensioner member—

(i)where a phased retirement pension became payable before D's death, it is the annual rate of additional (self only) pension which would have been payable as at D's death if D had applied under regulation 94 to receive additional pension with the phased retirement earned pension; and

(ii)^F89where a retirement pension other than a phased retirement pension became payable before D's death, it is the annual rate of additional (self only) pension payable as at D's death; ...

^F90(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Part 2 of Schedule 2 makes further provision in relation to payment of additional pension in respect of a member who dies in service.

Annual rate of additional (surviving adult) pension: long-term

148.—(1) The long-term rate of additional (surviving adult) pension applies—

(a)if a member (D) dies out of service; or

(b)otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of additional (surviving adult) pension is half the annual rate of additional (self only) pension payable as at the date of D's death.

(3) If a pension-sharing order has taken effect, the long-term rate must be reduced by the same proportion by which D's annual rate of retirement pension as at the date of D's death was reduced or would have been reduced by that pension-sharing order.

CHAPTER 6 Child pensions

Entitlement to child pension

149.—(1) This regulation applies on the death of a person (D) if D is qualified or re-qualified for retirement benefits.

(2) A child pension becomes payable to an eligible child of D from the day after the date of D's death.

(3) If a child is an eligible child of more than 2 members who die—

(a)the child is only entitled to payment of a child pension in respect of 2 of those members; and

(b)the 2 highest child pensions are payable.

(4) A child pension is not payable while an eligible child—

(a)is on a break from receiving full-time education; or

(b)attends a full-time vocational training course in respect of which the eligible child is paid at a rate which equals or exceeds the annual rate at which an official pension within the meaning of section 5(1) of PIA 1971 would be payable if the pension had begun, and first qualified for increases under that Act, on 1st April 2014 and had then been payable at an annual rate of £3,045.

(5) A child pension ceases to be payable when the person to whom it was payable ceases to be an eligible child.

(6) If D dies in service or dies as a pensioner member, paragraphs (4) and (5) do not apply while the short-term rate of child pension is payable.

(7) The annual rate of a child pension is to be calculated in accordance with regulations 150 and 151.

(8) Chapter 2 of Part 8 provides for payment of pensions.

Annual rate of child pension: short-term

150.—(1) The short-term rate of child pension—

(a)applies if a member (D) dies in service or dies as a pensioner member; and

(b)is payable as follows—

(i)if a surviving adult pension does not become payable on D's death, for the first 6 months after D's death;

(ii)if a surviving adult pension becomes payable on D's death and continues to be payable for the first 3 months after D's death, for those 3 months; or

(iii)if a surviving adult pension becomes payable on D's death but ceases to be payable before the end of the first 3 months after D's death, for those 3 months plus the number of months or part months for which the surviving adult pension was not payable under sub-paragraph (ii).

(2) The short-term rate of child pension is

(a)if D dies in service—

• ^F91 AR is D's annual rate of pensionable earnings as at the date of D's death (disregarding any reduction by reason of sick leave, maternity leave, paternity leave, ... [^F92shared parental leave [^F93 , parental bereavement leave^F93] [^F94 , neonatal care leave^F94] or adoption leave^F92] ); and

• [^F95 EC is the number of D’s eligible children;^F95]

(b)if D dies as a pensioner member—

• AR is D's annual rate of retirement pension payable as at the date of D's death (disregarding any reduction by virtue of a pension-sharing order);

• [^F96 EC is the number of D’s eligible children;^F96]

(3) If the rate calculated under paragraph (2) is smaller than the annual rate calculated in accordance with regulation 151 (“long-term rate”), the short-term rate is the same as the long-term rate.

Annual rate of child pension: long-term

151.—(1) The long-term rate of child pension applies—

(a)if a member (D) dies out of service; or

(b)otherwise, when the short-term rate ceases to be payable.

(2) The long-term rate of child pension is—

(3) R is—

(a)37.5%, if a surviving adult pension is payable;

(b)50%, if a surviving adult pension is not payable or has ceased to be payable;

(4) “accrued earned pension” is D's accrued earned pension as at the date of D's death; and

(5) EC is—

(a)2, if a child pension is payable to no more than 2 eligible children; or

(b)the number of eligible children, if a child pension is payable to more than 2 eligible children.

Enhancement of child pension

152.—(1) This regulation applies if a member (D)—

(a)dies in service; or

(b)dies as a pensioner member after an ill-health pension and a total incapacity pension become payable to D.

(2) If this regulation applies, the long-term rate of child pension is—

PART 7 Benefits for pension credit members

CHAPTER 1 General

Interpretation

153. In these Regulations—

“ pension credit ” means a credit under section 29(1)(b) of the WRPA 1999 as against the scheme manager as the person responsible for this scheme;

“ pension credit member ” means a person entitled to a pension credit;

“ pension credit retirement pension ” means a pension payable under regulation 155(1);

“ pension debit member ” means, in relation to a pension credit member, the person whose rights under these Regulations become subject to a debit under section 29(1)(a) of WRPA 1999 when the pension credit member becomes entitled to a pension credit.

CHAPTER 2 Pension credit retirement pension

Entitlement day for pension credit retirement pension

154.—(1) The entitlement day for a [^F97person’s (P’s)^F97] pension credit retirement pension is—

(a)the day on which [^F98P^F98] reaches normal pension age; or

(b)if P has reached normal minimum pension age but has not reached normal pension age, a day specified in P's application under regulation 162 for payment of the pension which is at least 6 weeks after the day on which the application is made.

(2) The entitlement day must not be before the day on which a pension-sharing order takes effect.

Entitlement to pension credit retirement pension

155.—(1) A pension credit member (P) is entitled to payment of a pension credit retirement pension from the entitlement day if P has applied under regulation 162 for payment of the pension.

(2) If P is entitled to 2 or more pension credits—

(a)benefits are payable to P under this scheme as if P were 2 or more members, each being entitled to one of the pension credits; and

(b)the amounts payable are determined accordingly.

(3) A pension credit retirement pension is payable for life.

Annual rate of pension credit retirement pension

156. The annual rate of a pension credit retirement pension is found by—

(a)taking the amount of credited pension specified in the pension credit member's account;

(b)applying the actuarial adjustment (if any) specified in the account in relation to that amount; and

(c)subtracting the conversion amount (if any) specified in that account in relation to that amount.

CHAPTER 3 Death grant

Meaning of death grant beneficiary

157. —(1) A person (P) is a “death grant beneficiary” of a pension credit member if—

(a)the member has nominated P to receive a death grant or a share of a death grant on the member's death; and

(b)at the date of the member's death, the nomination has effect.

(2) A member may nominate P by giving written notice to the scheme manager.

(3) The nomination ceases to have effect if—

(a)the member revokes the nomination by giving written notice to the scheme manager,

(b)the member subsequently nominates a different person in place of P, or

(c)P dies.

(4) If a member nominates more than one death grant beneficiary, the notice must state—

(a)the share of the death grant to be paid to each beneficiary; and

(b)whether, if a beneficiary dies before the member, the beneficiary's share must be paid—

(i)to the surviving beneficiaries in accordance with paragraph (5), or

(ii)to the member's personal representatives as part of the member's estate.

(5) If a beneficiary's share is to be paid to the surviving beneficiaries it is to be paid to them in shares such that the proportion which each surviving beneficiary's share bears to each of the other surviving beneficiaries' shares is the same as it was in the nomination.

(6) A death grant beneficiary must be an individual.

Death grant: death of pension credit member before pension becomes payable

158.—(1) A death grant[^F99 may be paid^F99] under this regulation on the death of a pension credit member (D) who dies before a pension credit retirement pension becomes payable to D under regulation 155.

(2) The amount of the death grant is found by—

(a)taking the amount of credited pension which would have become payable to D at the date of D's death if D had reached normal pension age; and

(b)multiplying that amount by 2.25.

Death grant: death of pension credit member after benefits payable

159.—(1) A death grant[^F100 may be paid^F100] under this regulation on the death of a pension credit member (D) if—

(a)a pension credit retirement pension became payable before D's death, and

(b)AR is greater than AP.

(2) The amount of the death grant is AR-AP.

(3) In this regulation—

• “AR” is 5 times the annual rate of the pension credit retirement pension payable as at the date of D's death;

• “AP” is the total amount of that pension payable up until D's death.

Payment of death grant

160.[^F101—(1)^F101] On the death of a pension credit member, [^F102where a death grant is to be paid, the payment must be made^F102] —

(a)to the death grant beneficiary;

(b)if there is more than one death grant beneficiary, to those beneficiaries in the shares determined in accordance with regulation 157(4) and (5); or

(c)if there is no death grant beneficiary—

(i)to the member's surviving spouse[^F103 , surviving civil partner or surviving qualifying partner^F103] ; or,

(ii)if there is no such person, to the member's personal representatives as part of the member's estate.

[^F104 (2) In paragraph (1)(c)(i) “surviving qualifying partner” has the meaning given by regulation 135. ^F104]

PART 8 Payment of benefits

CHAPTER 1 Application for payment of benefits

Benefits payable by the scheme manager

161.—(1) Benefits under these Regulations are payable by the scheme manager.

(2) Benefits are not payable to or in respect of a member unless the provisions of this Chapter are complied with.

Application for payment of benefits

162.—(1) A person (P) must apply in writing to the scheme manager for payment of benefits.

(2) An application may include a request that a pension be paid monthly or quarterly.

(3) P must satisfy any written request from the scheme manager to provide any information specified in the request.

(4) The information must be information—

(a)in P's possession; or

(b)which P can reasonably be expected to obtain.

CHAPTER 2 Payment of pensions

Interpretation

163. In this Chapter—

“ cessation date ” means the last day on which the pension is payable;

“initial payment date”—

“ payable date ” means the date on which the pension becomes payable;

“payment date”—

“ pension ” includes an annuity.

Monthly payment of pension

164.—(1) A pension is to be paid in accordance with this regulation unless P's application for payment of benefits included a request that the pension be paid quarterly.

(2) The initial payment of the pension is to be made on the initial payment date.

(3) The amount of the initial payment is—

(4) The amount to be paid on the payment date in each subsequent month until the cessation date is—

where AR is the annual rate of the pension.

(5) If the cessation date does not fall on a payment date, the final payment is to be made on, or as soon as possible after, the cessation date.

(6) The amount of the final payment is—

Quarterly payment of pension

165.—(1) A pension is to be paid to a person (P) in accordance with this regulation if P's application for payment of benefits included a request that the pension be paid quarterly.

(2) The initial payment is to be made on the initial payment date.

(3) The amount of the initial payment is—

(4) The amount to be paid on the payment date in every third month after the month in which the initial payment date falls is—

where AR is the annual rate of the pension.

(5) If the cessation date does not fall on a payment date under paragraph (4), the final payment is to be made on, or as soon as possible after, the cessation date.

(6) The amount of the final payment is—

Apportionment Act 1870 not to apply

^M37166. The Apportionment Act 1870 being inconsistent with regulations 164 (monthly payment of pension) and 165 (quarterly payment of pension) does not apply to benefits under these Regulations.

CHAPTER 3 Payment of lump sums

Member declaration

^M38167.—(1) The scheme manager may not pay a member a lump sum under this Chapter unless the member declares in writing that, on payment of the lump sum, paragraph 3A of Schedule 29 to FA 2004 would not apply.

(2) The declaration must be—

(a)signed by the member;

(b)in a form specified by the scheme manager; and

(c)provided by a date determined by the scheme manager.

Conversion of part of pension

168.—(1) The following members may apply to the scheme manager to receive a lump sum in place of part of a pension—

(a)a member who is entitled to payment of a retirement pension;

(b)a pension credit member who is entitled to payment of a pension credit retirement pension.

(2) Paragraph (1)(b) only applies if—

(a)the member's pension credit is derived from rights attributable to the pensionable service of a pension debit member; and

(b)a retirement pension does not become payable to the pension debit member before the day on which a pension-sharing order takes effect in respect of that pensionable service.

(3) An application under this regulation must—

(a)be in writing;

(b)be made when the member applies under regulation 162 for payment of the pension; and

(c)specify—

(i)the amount of the lump sum which the member wishes to receive; or

(ii)the conversion amount.

Amount of lump sum payable under regulation 168

169. The amount of a lump sum payable to a person (P) under regulation 168 must—

(a)be a multiple of £12; and

(b)not exceed P's permitted maximum.

Conversion amount

170.—(1) Paragraph (2) applies for the purpose of calculating the annual rate of pension payable to a member (P) who receives a lump sum under regulation 168.

(2) The conversion amount is—

(3) If a retirement pension converted under regulation 168 ceases to be payable under regulation 97 or 114, the conversion amount for any retirement pension that subsequently becomes payable to P is an amount determined by the scheme manager after consulting the scheme actuary.

Commutation of whole pension (serious ill-health)

171.—(1) This regulation applies to a member (P) who, on the entitlement day for a pension, has a life expectancy of less than a year.

(2) P may apply to the scheme manager to receive a lump sum instead of the pension.

(3) The application must—

(a)be in writing,

(b)be made when P applies under regulation 162 for payment of the pension, and

(c)be accompanied by all the medical evidence necessary for the scheme manager to determine that P is entitled to payment of the lump sum.

(4) If P is eligible to apply under regulation 168 to receive a lump sum under that regulation—

(a)the largest permissible lump sum is to be paid under that regulation; and

(b)the conversion amount under that regulation is to be deducted when calculating the annual rate under regulation 172(2)(a).

(5) In this regulation, “ pension ” means—

(a)an age retirement pension and any phased retirement pension payable with it;

(b)an ill-health pension and a total incapacity pension or phased retirement pension payable with it; or

(c)a pension credit retirement pension.

Amount of lump sum payable under regulation 171 instead of retirement pension

172.—(1) This regulation applies to a member (P) who applies under regulation 171 to receive a lump sum instead of a retirement pension.

(2) The amount of the lump sum payable to P is the total of—

(a)for an age retirement pension, ill-health pension or total incapacity pension, a sum equal to 5 x the annual rate of the retirement pension, and

(b)for a phased retirement pension that is already in payment, a sum equal to (A-B) x the annual rate of the phased retirement pension where—

• A is 5, and

• ^M39 B is the period (in years and fractions of a year) from the date on which the phased retirement pension was first paid until the date of the application .

Amount of lump sum payable under regulation 171 instead of a pension credit retirement pension

173.—(1) This regulation applies to a member (P) who applies under regulation 171 to receive a lump sum instead of a pension credit retirement pension.

(2) The amount of the lump sum payable to P is an amount equal to 5 times the annual rate of the pension credit retirement pension.

Commutation: small pensions

174.—(1) If paragraph (2) applies, the scheme manager may, on the application of a member (P), commute a retirement pension by paying a lump sum to P.

(2) This paragraph applies if—

(a)^M40the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009 ;

(b)the application under paragraph (1) is made when P applies under regulation 162 for payment of the retirement pension;

(c)in the 3 years ending with the date of the application, a transfer payment has not been made in respect of P;

(d)in the 5 years ending with the date of the application, a transfer payment has not been accepted in respect of rights accrued by P under another occupational pension scheme; and

(e)a transfer payment otherwise than from another occupational pension scheme has not been accepted in relation to P.

(3) If a lump sum is paid under paragraph (1), benefits are not payable under Part 6 on P's death.

(4) The scheme manager may, on the application of a pension credit member (P), commute a pension credit retirement pension by paying a lump sum to P if—

(a)the lump sum is a trivial commutation lump sum as defined in paragraph 7 of Schedule 29 to FA 2004 or falls within regulation 11 or 12 of the Registered Pension Schemes (Authorised Payments) Regulations 2009; and

(b)the application is made when P applies under regulation 162 for payment of the pension.

(5) The scheme manager may, on the application of a beneficiary to whom a pension is payable under Part 6, commute that pension by paying a lump sum to the beneficiary if—

(a)the application is made when the beneficiary applies under regulation 162 for payment of the pension; and

[^F105 (b)the lump sum is a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to FA 2004.^F105]

(6) A lump sum payable under this regulation is to be determined by the scheme manager after taking advice from the scheme actuary.

CHAPTER 4 Continuing entitlement to benefit

Evidence of continuing entitlement to benefit

175.—(1) Where a benefit is being paid to a person (P), the scheme manager may at any time require that evidence be provided, by such date as the scheme manager may specify, to establish—

(a)the identity of P; and

(b)P's continuing entitlement to the benefit.

(2) If the evidence is not provided by the date specified, the scheme manager may withhold the whole or any part of the benefit.

(3) If a benefit ceases to be payable because P ceases to meet the incapacity condition or ceases to meet the total incapacity condition, the power in paragraph (1) may be exercised so as to require P to provide evidence that there has been no such cessation.

Cessation of benefits where no entitlement

176.—(1) This regulation applies if after paying a benefit the scheme manager determines that there was no entitlement or there is no longer an entitlement to the benefit.

(2) The scheme manager may—

(a)cease to pay the benefit;

(b)withhold the whole or any part of the benefit; or

(c)recover any payment made if there was no entitlement to the benefit.

CHAPTER 5 Miscellaneous

Recovery of overpayment of benefits

177.—(1) This regulation applies in respect of a financial year for which a decrease in prices is specified in the Treasury order.

(2) The scheme manager may recover any overpayment of benefits that occurs as a result of the application of the leaver index adjustment for that year.

Interest on late payment of benefits

178.—(1) This regulation applies to a benefit except—

(a)a phased retirement pension or a lump sum payable under regulation 168 in place of part of that pension; or

(b)a total incapacity pension payable between the date on which the person to whom it is paid first engages in any other form of work as mentioned in regulation 118(2)(c) and the date on which the scheme manager is satisfied that the person continues to meet the total incapacity condition despite engaging in such work.

(2) Except as provided in paragraphs (8) and (9), where a benefit to which this regulation applies is not paid within one month after the due date, the scheme manager must pay interest on the amount unpaid at the Bank of England base rate compounded with 3-monthly rests from the due date to the date of payment.

(3) Where the benefit is a death grant, the due date is the day after the date on which the scheme manager became satisfied that payment may be made.

(4) Where the benefit is a lump sum under regulation 168, 171 or 174 or a grant other than a death grant, the due date is the day on which the benefit is payable.

(5) Where the benefit is a pension or annuity, the due date is—

(a)in the case of a payment under regulation 164(2) or 165(2), the initial payment date (as defined in regulation 163);

(b)in the case of a payment under regulation 164(5) or 165(5), the cessation date (as defined in regulation 163);

(c)in any other case, the date on which payment is to be made under regulation 164(4) or 165(4).

(6) In determining the due date in accordance with paragraphs (4) and (5), no account is to be taken of the requirement to make an application for the benefit under regulation 162.

(7) In this regulation “ Bank of England base rate ” means—

(a)the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets, or