Legalize / United Kingdom / Statutory-Instrument

The Teachers’ Pensions Regulations 2010

Type Statutory-Instrument

Publication 2010-03-24

Last updated 2025-04-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

PDF Download

articles Not indexed

Reform history JSON API

Expression		Meaning
CA 2006		the Companies Act 2006[^f00039].
EA 1996		the Education Act 1996[^f00040].
EA 2002		the Education Act 2002[^f00041].
FA 2004		the Finance Act 2004[^f00042].
IA 1986		the Insolvency Act 1986[^f00043].
NHSA 2006		the National Health Service Act 2006[^f00044].
NHSWA 2006		the National Health Service (Wales) Act 2006[^f00045].
PA 1995		the Pensions Act 1995[^f00046].
PIA 1971		the Pensions (Increase ) Act 1971[^f00047].
PSA 1993		the Pension Schemes Act 1993[^f00048].
SA 1972		the Superannuation Act 1972[^f00049].
SVGA 2006		the Safeguarding Vulnerable Groups Act 2006[^f00050].
WRPA 1999		the Welfare Reform and Pensions Act 1999[^f00051].
TPR 1997		the Teachers’ Pensions Regulations 1997[^f00052].
TPRAR 2006		the Teachers’ Pensions etc. (Reform Amendments) Regulations 2006[^f00053].
TSR 1967		the Teachers’ Superannuation Regulations 1967[^f00054].
TSR 1976		the Teachers’ Superannuation Regulations 1976[^f00055].
TSR 1988		the Teachers’ Superannuation (Consolidation) Regulations 1988[^f00056].
TSAVCR 1994		the Teachers’ Superannuation (Additional Voluntary Contributions) Regulations 1994[^f00057].
2007 or later entrant		see regulation 47 (“2007 or later entrant”: meaning and normal pension age).
Academy		construe in accordance with section 482 of EA 1996 and sections 67 and 68 of EA 2002.
accepted school		see regulation 13 (accepted schools).
actuarial		determined by, or in accordance with tables prepared by, the scheme actuary.
additional pension		a pension payable under regulation 73 (election to receive additional pension with phased retirement pension) or 75 (additional pension paid with retirement pension).
admitted service		see regulation 80 (admitted service benefits).
admitted service benefits		an admitted service pension and any admitted service lump sum payable with the admitted service pension.
admitted service lump sum		a lump sum payable under regulation 80 (admitted service benefits).
admitted service pension		a pension payable under regulation 80 (admitted service benefits).
adoption leave		the same meaning as in the Paternity and Adoption Leave Regulations 2002[^f00058].
adult pension		see regulation 94 (adult pensions).
adult pension qualification service		see Schedule 8 (adult pension qualification service).
appropriate factor		see regulation 130 (appropriate factor).
average salary		see Part 5 (average salary).
average salary service		see regulation 40 (average salary: supplemental).
career break		a period when, with the agreement of the person’s former employer, the person is not in pensionable employment but expects to return to employment with the same employer and during which the person does not take up any other employment.
Case (followed by a letter)		see regulation 60(11).
cash equivalent		a cash equivalent mentioned in section 94 (1) of PSA 1993.
child pension		see regulation 97 (child pensions).
club scheme		a registered pension scheme which is a contracted-out scheme or is a scheme established and maintained in the Channel Islands or the Isle of Man which is not a contracted-out scheme, is a final salary scheme, is a scheme which is open to new participants (“open scheme”) or, if not a scheme so open (“closed scheme”), is a scheme whose trustees or managers also provide an open scheme which is a scheme for new employees of the same employer and of the same grade or level of post as participants of the closed scheme, and is a scheme whose trustees or managers have undertaken to comply with the reciprocal arrangements for the payment and receipt of transfer values agreed from time to time between the trustees or managers of such a scheme.
COBISEC		the Council of British Independent Schools in the European Communities.
comparable British scheme		a pension scheme for teachers in public employment in any part of the British Islands outside England and Wales.
comparable British service		service pensionable under a comparable British scheme.
comparable United Kingdom scheme		a pension scheme for teachers in public employment in any part of the United Kingdom outside England and Wales.
comparable United Kingdom service		service pensionable under a comparable United Kingdom scheme.
condition for retirement		see regulation 60(2) (retirement benefits)
condition for retirement following further employment		see regulation 60(3) (retirement benefits)
contracted-out employment,		construe in accordance with section 8(1) of PSA 1993.
contracted-out scheme		construe in accordance with section 7(3) of PSA 1993.
contributable salary		see Chapter 1 of Part 3.
contributions equivalent premium		a premium under section 55(2) of PSA 1993.
contributions refund period		a period in respect of which contributions have been or are to be repaid and— have not been, or fallen to be treated as having been, refunded, or have been returned but have since been repaid.
death grant beneficiary		see regulations 82 (person to whom death grant is payable) and 103 (person to whom death grant is payable on death of pension credit member).
disqualifying break		see regulation 53 (meaning of “disqualifying break” and “post-break employment start date”).
education functions		the same meaning as in EA 1996.
eligible child		see regulation 93 (meaning of “eligible child”).
employer (in the context of a person employed in or in connection with a school maintained by a local authority).		see regulation 3 ( meaning of “employer” in certain cases)..
employed		employed under a contract of employment.
employment		employment under a contract of employment.
equivalent pension benefits		The meaning in section 57(1) of the National Insurance Act 1965[^f00059].
excluded employment		see regulation 7(12) (employment not pensionable; general).
family benefit service		see Schedule 9 (family benefit service).
financial year		the 12 months ending with 31st March in any year.
full-time employment		employment is “full-time” if the contract of employment so describes it (whether in those terms or otherwise) and requires the employee to work for the whole of the working week.
function provider		see regulation 14 (accepted function providers).
further education		the meaning given in section 2(3) of EA 1996.
further employment		see regulation 4 (meaning of “further employment”).
GMP age		65 in the case of a man or 60 in the case of a woman.
guaranteed minimum		a guaranteed minimum under section 14 of PSA 1993.
guaranteed minimum pension		the meaning given in section 8(2) of PSA 1993.
higher education		the meaning given in section 120(1) of the Education Reform Act 1988[^f00060].
incapacitated		unfit by reason of illness or injury and despite appropriate medical treatment to serve as a teacher, organiser or supervisor.
ill-health retirement benefits		an ill-health pension and any ill-health lump sum payable with the ill-health pension.
ill-health lump sum		a retirement lump sum payable because Case C applies to the reckonable service or to part of the reckonable service of a person.
ill-health pension		a retirement pension payable because Case C applies to the reckonable service or to part of the reckonable service of a person.
initiated (in the context of a payment)		see regulation 136 (meaning of payment being “initiated”).
local authority		a county council a metropolitan district council a non-metropolitan district council for an area for which there is no county council a county borough council (in Wales) a London borough council the Common Council of the City of London the Council of the Isles of Scilly
maternity leave		ordinary or additional maternity leave within the meaning of the Maternity and Parental Leave etc. Regulations 1999[^f00061]
non-pensionable family leave		a period of adoption, maternity, parental or paternity leave during which the employee— is not paid or is paid less than half the salary, and receives no statutory pay.
non-pensionable sick leave		sick leave taken with the consent of the employer during which the employee is not paid or is paid less than half the salary.
non-profit-making body		a body, the constitution of which— requires any surplus income or gains to be invested, prohibits the distribution of the assets of the body, in cash or kind, by way of dividend, bonus or otherwise by way of profit to any member of the body or to a third party (other than for charitable purposes), and provides for any net assets on the dissolution of the body to be applied for charitable purposes or for the purposes for which the body existed before its dissolution.
normal pension age		see regulations 47 to 49 or (in relation to pension credit members) regulation 102(2).
NPA 60 reckonable service		see regulation 50 (meaning of “NPA 60 reckonable service” and “NPA 65 reckonable service”).
NPA 65 reckonable service		see regulation 50 (meaning of “NPA 60 reckonable service” and “NPA 65 reckonable service”).
occupational pension scheme		the meaning given in section 1 of PSA 1993.
organiser		a person who performs duties in connection with the provision of education or services ancillary to education other than administrative services.
parental leave		leave within the meaning of Part 3 of the Maternity and Parental Leave etc. Regulations 1999.
part cash equivalent		the cash equivalent of any part of the benefits mentioned in section 94(1) of PSA 1993 which is prescribed under section 98(1) of that Act (continuation in employment after termination of pensionable service.).
part-time		employment is “part-time” if the contract requires the employee to work for less than the whole of the working week.
paternity leave		the meaning in the Paternity and Adoption Leave Regulations 2002.
payment in lieu of contributions		a payment in lieu of contributions under Part 3 of the National Insurance Act 1965.
pensionable employment		see Part 2 (pensionable employment).
pension credit		a credit under section 29(1)(b) of the WRPA 1999 as against the Secretary of State as the person responsible for the pension scheme contributed by these Regulations.
pension credit retirement benefits		A pension credit retirement pension and any pension credit retirement lump sum payable with the pension credit retirement pension .
pension credit retirement lump sum		a lump sum payable under regulation 105(3) (pension credit retirement benefits).
pension credit retirement pension		a pension payable under regulation 105(1) (pension credit retirement benefits).
pension credit member		a person entitled to a pension credit.
pension credit rights		the meaning in section 101B of PSA 1993[^f00062].
pension debit member		(in relation to a pension credit member) the person whose rights under these Regulations become subject to a debt under section 29(1)(a) of WRPA 1999 when the pension credit member becomes entitled to a pension credit.
pension sharing order		(in relation to a pension credit member) the pension sharing order or other provision by virtue of the taking effect of which the pension credit member becomes entitled to a pension credit.
permitted maximum		the amount determined in accordance with paragraph 2 of Schedule 29 to FA 2004.
person with mixed service		see regulation 48 (“person with mixed service”: meaning and normal pension age).
personal pension scheme		a personal pension scheme as defined in section 1 of PSA 1993.
phased retirement benefits		a retirement pension and any retirement lump sum payable with the phased retirement pension.
phased retirement lump sum		a lump sum payable under regulation 58(4) (phased retirement benefits).
phased retirement pension		a pension payable under regulation 58(2) (phased retirement benefits).
post-break employment start date		see regulation 53 (meaning of “disqualifying break” and “post-break employment start date”).
pre-2007 entrant		see regulation 49 (“pre-2007 entrant”: meaning and normal pension age)
previous provisions		provision contained in or made under an enactment relating to the superannuation of teachers which were in force at any time before 1st January 1977.
proprietor		in relation to a school or other establishment, means the person or body of persons responsible for the management of the school or other establishment.
public sector TUPE transferee		see regulation 52 (meaning of “public sector TUPE transferee, etc.”).
public sector TUPE transferee with NPA 60 rights		see regulation 52(3) (meaning of “public sector TUPE transferee, etc.”).
public sector TUPE transferee with NPA 60 and NPA 65 rights		see regulation 52(4) (meaning of public sector TUPE transferee, etc.).
Qualified for retirement benefits		see regulation 54 (meaning of “qualified for retirement benefits”).
qualified for retirement benefits following further employment		see regulation 56 (meaning of “qualified for retirement benefits following further employment”).
reckonable service		see Part 6 (reckonable service).
registered pension scheme		the meaning in section 150(2) of FA 2004.
regulation C9 of TPR 1997		that regulation as it had effect before 1st January 2007 and — as it had effect from 1st January 2007 until 1st September 2010 by virtue of paragraphs 8 and 9 of Schedule 5 to TPRAR 2006, as it has effect by virtue of paragraph 11 of Schedule 13 (Savings and Transitional Provisions)
retail prices index		the index of retail prices published by the Office for National Statistics
retirement benefits		a retirement pension and any retirement lump sum payable with the retirement pension.
retirement benefits qualification service		see regulation 55 (retirement benefits qualification service).
retirement lump sum		a lump sum payable under regulation 60 (retirement benefits).
retirement pension		a pension payable under regulation 60 (retirement benefits).
scheme actuary		the person appointed by the Secretary of State for the time being to provide a consulting service on actuarial matters.
scheme managers		in relation to statutory scheme, the expression means the Minister of the Crown or other body administering the scheme; in relation to any other scheme, it means the person responsible for the management of the scheme.
section 9(2B) rights		rights (other than rights attributable to voluntary contribution within the meaning of section 111 of PSA 1993) which are attributable to an earners’ service (as defined in sections 3, 4 and 112 of the Social Security Contributions and Benefits Act 1992[^f00063]) on or after 6th April 1997 in employment which is contracted out in accordance with section 9(2B) of PSA 1993[^f00064].
short-service annuity		an annuity payable under regulation 77 or 78 (short-service annuities).
short-service serious-ill health grant		a grant payable under regulation 79 (short-service serious ill-health grant).
short-service incapacity grant		a short-service incapacity grant paid before 1st September 2010 under regulation E17 of TPR 1997.
special school		the meaning in section 337 of EA 1996.
specified country service		service before 25th March 1972 which was, for the purpose of Part 9 of TSR 1967, service in a specified country as a services civilian teacher, service after 24th March 1972 and before 1st January 1977 which, if section 25 of the Superannuation Act 1965[^f00065] had continued in force, would have been such service as is mentioned in paragraph (a), or service after 31st December 1976 and before 1st January 1980 in continuation of such service as is mentioned in paragraph (b) .
standard rate (in the context of interest)		see regulation 129 (meaning of “standard rate” of interest).
state pensionable age		pensionable age within the meaning given by the rules in paragraph 1 of Schedule 4 to PA 1995.
supervisor		a person employed in a capacity connected with education which to a substantial extent involves the control or supervision of teachers.
surviving nominated beneficiary		see regulation 91(5) .
surviving nominated partner		see regulation 90(4).
tax year		the 12 months beginning with 6th April in any year.
teacher’s pension		an annual allowance which becomes payable under TSR 1976 or previous provisions or a retirement pension.
terminal sum		a retirement lump sum, a short-service incapacity grant, a short-service serious ill health grant, a refund of contributions or any sum payable on death.
total incapacity benefits		a total incapacity pension and any total incapacity lump sum payable with the total incapacity pension
total incapacity lump sum		a lump sum payable under regulation 65 (total incapacity benefits).
total incapacity pension		a pension payable under regulation 65 (total incapacity benefits).
transfer of undertakings		where the transfer takes place or after 6th April 2006, a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006[^f00066]; and where the transfer takes place before that date, a transfer of undertakings within the meaning given by the Transfer of Undertakings (Protection of Employment) Regulations 1981[^f00067].
transfer day		(in relation to a pension sharing order) the day on which the pension sharing order takes effect.
transfer value (in the context of payment of a transfer value)		a transfer value paid under regulation 31 (payment of transfer values) or regulation 33 (payment of bulk transfer values).
transfer value (in the context of acceptance of a transfer value)		a transfer value accepted under regulation 35 (acceptance of transfer values) or regulation 36 (acceptance of bulk transfer values).
UK transferee with NPA 60 rights		see regulation 51(1) (meaning of UK transferee with NPA 60 rights, etc.).
UK transferee with NPA 60 and NPA 65 rights		see regulation 51(2) (meaning of UK transferee with NPA 60 rights, etc.).
widower with pre-1988 rights		the widower of a woman in pensionable employment at any time before 6th April 1988 whose nomination under regulation 65 of TSR 1976 (nomination of beneficiaries) before that date was— a nomination of that widower, a nomination of another person which was revoked in favour of that widower, or a nomination of another person which became void when the woman married that widower or another person.

SCHEDULE 2 — Pensionable employment

PART 1 — Employments pensionable without election

1

Teacher employed by—

(a) a local authority in connection with its education functions,

(b) a local authority in a school which the authority maintains,

(d) an institution providing further or higher education (or both) maintained by a local authority.

2

Teacher employed—

(a) in an Academy, school, alternative provision Academy, city technology college or a city college for the technology of the arts by the proprietor of such a school, ...

(aa) in a 16 to 19 Academy by the proprietor of the Academy, or

(ab) in a Multi-Academy Trust; or

(b) by the sponsor of a proposed Academy, and in this paragraph “sponsor of a proposed Academy” means any person who approaches the Secretary of State expressing an interest in establishing and maintaining an Academy with a view to creating a charitable company limited by guarantee and which company it is proposed will then enter into an Academy agreement as defined in section 1 of the Academies Act 2010.

3

Teacher employed by the proprietor of, or by anyone else concerned in the management of, an accepted school ....

4

Teacher employed by a function provider in connection with the performance of a function or service in respect of which the function provider is accepted in accordance with regulation 14 (accepted function providers).

5

Teacher employed by the proprietor of, or by anyone else concerned in the management of, a special school that is not maintained by a local authority.

6

Teacher employed by the governing body (as defined in section 90 of the Further and Higher Education Act 1992 ) of an institution—

(a) which is—

(i) in Wales, within the further or the higher education sector (as defined in section 91 of that Act); or

(ii) in England, within the further education sector (as defined in section 91 of that Act), or the higher education sector (as defined in section 91 of that Act as at 31st July 2019), and

(b) to which grants are made by the Secretary of State or the Welsh Ministers, a body to which grants are made by the Secretary of State or the Welsh Ministers,

7

Teacher employed by a university established on or after 6th May 1992 which, immediately before it became such fell within paragraph 6(a) or (b).

8

Teacher employed by the proprietor of—

(a) a community home as defined in section 53 of the Children Act 1989 ,

(b) a voluntary home as defined in section 60 of that Act, or

9

Teacher employed by a local authority or by a voluntary organisation in an establishment which provides facilities under arrangements approved under section 66 of the Powers of Criminal Courts (Sentencing) Act 2000 .

10

Teacher employed by the Secretary of State or the Welsh Ministers in a special hospital provided by the Secretary of State or the Welsh Ministers under section 4 of NHSA 2006 or section 4 of NHSWA 2006.

11

Teacher employed for the purpose of instructing, training or superintending the occupation of persons suffering from mental impairment, severe mental impairment, psychopathic disorder or mental illness—

(a) by the Secretary of State or the Welsh Ministers in a hospital provided by the Secretary of State or the Welsh Ministers under NHSA 2006 or NHSWA 2006,

(b) by a voluntary organisation to which financial assistance is given by a local authority or facilities are made available under section 12 of NHSA 2006 or section 10 of NHSWA 2006, or

(c) by a local authority in the exercise of its functions under Part 1 of the Care Act 2014 (care and support) or paragraph 2 of Schedule 16 to NHSWA 2006.

12

Teacher employed by the Secretary of State in a European School (that is to say an establishment such as is described in article 2 of the European Communities (European Schools) Order 1972 ).

13

Organiser employed as a youth and community worker by a local authority in the exercise of its functions under sections 15, 507A, 507B or 508 of EA 1996.

14

Teacher employed by the Field Studies Council.

PART 2 — Employments pensionable on election

15

Teacher employed by the proprietor of an institution for the further education and training of disabled persons.

16

Teacher, supervisor or youth worker employed for the purposes of the Ministry of Defence in service with, or for purposes connected with, the armed forces of the Crown unless—

(a) the employment is pensionable under the Principal Civil Service Pension Scheme , or

(b) the teacher, supervisor or youth worker was engaged outside the United Kingdom and was not previously in pensionable employment.

17

Organiser employed by—

(a) a diocesan board of education established under the Diocesan Boards of Education Measure 2021;

(b) a body affiliated to the National Open College Network;

(d) the Inspiring Futures Foundation;

(e) the Royal National College for the Blind;

(f) the Stapleford Centre.

18

Teacher employed in, or in connection with, an establishment for providing social or physical training for which grants are made by the Secretary of State, the United Kingdom Sports Council, the English Sports Council or the Sports Council of Wales whose principal duty is to attend the establishment and provide the training or supervise its provision.

19

Teacher employed by a person to whom grants are made by either the Secretary of State or a local authority in exercise of education functions in respect of expenditure incurred for the purpose for which the teacher is employed.

20

Organiser employed by—

(a) the United Kingdom Sports Council,

(b) the English Sports Council,

(d) any other person, other than a local authority, to whom grants—

(i) are made by any of those Councils or by a local authority in exercise of education functions, or

(ii) are or have been made by the Secretary of State or the Welsh Ministers,

in respect of expenditure incurred for the purpose for which the organiser is employed.

21

Organiser employed as a youth and community worker by a body to which grants are made by a local authority in the exercise of its functions under sections 15 or 508 of EA 1996.

22

Organiser employed by—

(a) Action for Blind People;

(b) the Association of Christian Teachers;

(d) the Assessment and Qualification Alliance;

(e) the City and Guilds of London Institute;

(f) the Catholic Education Service;

(g) EMFEC;

(h) the Field Studies Council;

(i) Macmillan Cancer Support;

(j) the North East Religious Learning Resources Centre Limited;

(k) the North of England Institute for Christian Education;

(l) SCOPE;

(m) the Jewish Schools Network.

23

Teacher employed by a university who was employed by an institution mentioned in paragraph 1(d) or 6 immediately before the institution became part of the university.

24

Teacher or organiser employed by a body formerly falling within paragraph 19, 20 or 21 which is a non-profit-making body whose principal source of funding is fees paid by a local authority.

25

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 3 — Employees' and employers' contributions

Interpretation

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employees' contributions

2

(1) The percentage rate of employees' contributions is determined in accordance with this paragraph ....

(2) For each of a member's pensionable employments, the member must pay contributions on the member's contributable salary in that employment at the percentage rate of employees' contributions.

(3) The percentage rate of employees' contributions for a pensionable employment is the rate in Column 2 of the table corresponding to the band for the annual salary in Column 1.

(4) The annual salary bands in Column 1 are increased for each financial year, if there is a relevant increase in the consumer prices index for that financial year, by the appropriate percentage for the financial year, rounded up to the nearest £1.

(5) There is a relevant increase in the consumer prices index for a financial year if the consumer prices index for the month of September before that financial year is higher than that for the previous September.

(6) The appropriate percentage for the financial year is the same percentage as the percentage increase in the consumer prices index for that year.

(7) In this regulation, “consumer prices index” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007.

Column 1Annual salary for the pensionable employment for the financial year 2015-16	Column 2Employees' contribution rate
£0 - £25,999	7.4%
£26,000 - £34,999	8.6%
£35,000 - £41,499	9.6%
£41,500 - £54,999	10.2%
£55,000 - £74,999	11.3%
≥ £75,000	11.7%.

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Employers' contributions

4

(1) The percentage rate of employers' contributions is determined in accordance with this paragraph.

(2) The percentage rate is—

(a) 14.1% from 1st April 2015 until 30th August 2015 inclusive;

(b) 16.4% from 1st September 2015;

(c) the rate determined in each successive valuation report with effect from a date to be notified to employers by the Secretary of State.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 4 — Contributions for additional pensions

Interpretation

1

In this Schedule—

“AP beneficiary” means—in the case of an election under paragraph 2(1), the person who makes the election, andin the case of an election under paragraph 2(2) or (3), the employee or former employee for whose benefit the election is made;

“dependant's election” means an election under paragraph 2, the notice of which states (in accordance with sub-paragraph (5)(b) of that paragraph) that the election is for an additional pension for both the AP beneficiary and the AP beneficiary's spouse, civil partner, surviving qualifying partner or surviving nominated beneficiary;

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

“lump sum election” means an election under paragraph 2 which is not a monthly contribution election;

“monthly contribution election” means an election under paragraph 2, the notice of which states (in accordance with sub-paragraph (6)(b) of that paragraph) that contributions are to be paid in monthly payments;

“payment period” means, in relation to a monthly contribution election accepted by the Secretary of State, the period beginning on the start date and ending when the last of the monthly payments mentioned in the notice of the election is due to be paid;

“refund period” means the period ending 1 year after the start date;

“start date” means—in the case of a lump sum election, the date on which the Secretary of State receives the lump sum, andin the case of a monthly contribution election, the first day of the second month after the month in which the AP beneficiary is notified that the election is accepted.

Election to pay contributions for additional pension

2

(1) A person in pensionable employment who has not reached the age of 65 may elect to pay contributions for an additional pension by giving written notice to the Secretary of State.

(2) The employer of a person in pensionable employment who has not reached the age of 65 may, with the consent of the employee, elect to pay contributions (as a lump sum) for an additional pension for the employee by written notice to the Secretary of State.

(3) The former employer of a person—

(a) who has ceased to be in pensionable employment, and

(b) whose average salary has been restricted under regulation 39

may, with the consent of the former employee, elect to pay contributions (as a lump sum) for an additional pension for the employee by giving written notice to the Secretary of State.

(4) Any election under sub-paragraph (3) must be made within 6 months after the date on which the former employee ceased to be in pensionable employment.

(5) The notice must—

(a) state the amount in respect of which the election is made, which must be a multiple of £250 or of such other sum as may be determined by the Secretary of State from time to time;

(b) state whether the election is for an additional pension solely for the AP beneficiary or for both the AP beneficiary and the AP beneficiary's spouse, civil partner, surviving qualifying partner or surviving nominated beneficiary;

(d) be accompanied by a declaration by the AP beneficiary that the AP beneficiary is in normal health.

(6) Where the election is made under sub-paragraph (1), the notice must also state—

(a) whether the contributions are to be paid as a lump sum, or

(b) whether the contributions are to be paid in monthly payments and, if so, the number of monthly payments, which must not be more than 240.

(7) The number of monthly payments must be such that the last is due be paid—

(a) where the AP beneficiary is a pre-2007 entrant who has not reached the age of 60, before the AP beneficiary reaches that age, and

(b) in any other case, before the AP beneficiary reaches the age of 65.

(8) An election is accepted by the Secretary of State if the Secretary of State gives written notice to the person making it that it is accepted.

Maximum amount of additional pension

3

(1) The amount in respect of which an election (“the new election”) may be made must not exceed the maximum amount for the financial year in which notice of the new election is given to the Secretary of State less the sum of the uprated amounts in relation to each previous election made by, or for the benefit of, the AP beneficiary.

(2) The maximum amount for the financial year ending on 31st March 2011 is the amount determined for that financial year under paragraph 18 or 19 of Schedule 2A to TPR 1997.

(3) The maximum amount for a subsequent financial year is such amount as may be determined by the Treasury for that financial year in accordance with sub-paragraph (9).

(4) But if no maximum amount has been determined for that financial year under sub-paragraph (3), the maximum amount for that financial year is the maximum amount for the financial year before that financial year (“the previous financial year”) increased by the amount by which it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the first day of the previous financial year.

(6) The uprated amount in relation to a previous election , rounded to the nearest £100, is—

(a) the amount stated in the notice multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1,

(b) where the AP beneficiary is credited with an amount in respect of the election in accordance with paragraph 7, 8 or 9, that amount multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1, or

(c) where the AP beneficiary was previously credited with an amount in respect of the election in accordance with paragraph 10, an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6) multiplied by the factor mentioned in sub-paragraph (8) if that factor is greater than 1.

(7) But where notice of the previous election was given to the Secretary of State in the same financial year as notice of the new election is to be given, the uprated amount in relation to the previous election is—

(a) the amount stated in the notice,

(b) where the AP beneficiary is credited with an amount in respect of the election in accordance with paragraph 7, 8 or 9, that amount, or

(c) where the AP beneficiary was previously credited with an amount in respect of the election in accordance with paragraph 10, an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6).

(8) The factor is CPI1/CPI2, where—

(a) CPI1 is the consumer prices index for February in the financial year before the year in which notice of the new election is given to the Secretary of State, and

(b) CPI2 is the consumer prices index for February in the financial year before the year which includes the start date for the previous election.

(9) The Treasury is from time to time to review the operation of this paragraph and, as a result of such review, may determine the maximum amount for the financial year ending on 31st March 2012 or for any subsequent financial year.

Determination of contributions

4

(1) The Secretary of State is from time to time to determine the amount of the lump sum (in the case of a lump sum election) and the monthly payments (in the case of a monthly contribution election) to be paid as contributions for a given amount in respect of which an election is made.

(2) The amounts must be such that they reflect the cost of payment of pension—

(a) in the case of an AP beneficiary who is a pre-2007 entrant and has not reached the age of 60, at the age of 60, and

(b) in the case of any other AP beneficiary, at the age of 65.

(3) Different amounts may be determined—

(a) for different classes or descriptions of AP beneficiaries;

(b) depending on whether the election is a dependant's election;

(4) The Secretary of State may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments to be paid as contributions during the payment period.

Lump sum election: payment of contributions and credit of additional pension

5

(1) This paragraph applies where the Secretary of State accepts a lump sum election.

(2) Where the lump sum determined under paragraph 4 is paid to the Secretary of State within 1 month after the date on which the person who makes the election is notified that the election is accepted, the AP beneficiary is to be credited with the amount stated in the notice of the election.

(3) But where the AP beneficiary dies before the end of the refund period or an ill-health pension becomes payable to the AP beneficiary by virtue of the AP beneficiary becoming incapacitated before the end of that period—

(a) the lump sum must be repaid, and

(b) the AP beneficiary is not to be credited with an amount in respect of the election.

(4) Sub-paragraph (3) does not apply where before the end of the refund period an additional pension attributable to the election (calculated by reference to an amount credited in accordance with sub-paragraph (2)) became payable to the AP beneficiary with a retirement pension (other than an ill-health pension) or a phased retirement pension.

Monthly contribution election: payment of contributions and credit of additional pension

6

(1) This paragraph applies where the Secretary of State accepts a monthly contribution election.

(2) The AP beneficiary must pay monthly payments determined under paragraph 4 to the Secretary of State during the payment period.

(3) The first payment under sub-paragraph (2) is to be made by the last day of the second month after the month in which the AP beneficiary is notified that the election is accepted.

(4) The reference in sub-paragraph (2) to monthly payments determined under paragraph 4 includes, as from 1st April following any redetermination of monthly payments under that paragraph, a reference to monthly payments as redetermined.

(5) Where payments are made in accordance with sub-paragraph (2), the AP beneficiary is to be credited with the amount stated in the notice of the election.

(6) Where any of paragraphs 7 to 11 applies—

(a) monthly payments cease to be payable, and

(b) the AP beneficiary is not to be credited with an amount in respect of the election under this paragraph.

AP beneficiary becoming entitled to pension during payment period

7

(1) This paragraph applies where before the end of the payment period—

(a) a retirement pension (other than an ill-health pension) becomes payable to the AP beneficiary of the election mentioned in paragraph 6, or

(b) where the AP beneficiary makes an election under regulation 73(2), a phased retirement pension becomes payable to the AP beneficiary.

(2) The AP beneficiary is to be credited with an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6).

AP beneficiary revoking election during payment period

8

(1) This paragraph applies where the AP beneficiary of the election mentioned in paragraph 6 revokes the election by giving written notice to the Secretary of State before the end of the payment period.

(2) The AP beneficiary is to be credited with an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6).

(3) Where contributions due under paragraph 6 remain due after the expiry of 3 months after the AP beneficiary receives a written demand from the Secretary of State, the AP beneficiary is to be treated for the purpose of this Schedule as revoking the election.

AP beneficiary ceasing to be in pensionable employment during payment period

9

(1) This paragraph applies where the AP beneficiary of the election mentioned in paragraph 6 is out of pensionable employment for a continuous period of at least 1 month before the end of the payment period other than by reason of the AP beneficiary's death.

(2) But this paragraph does not apply where paragraph 7 applies before the end of the 1-month period.

(3) Where the AP beneficiary pays a lump sum of such amount as may be determined by the Secretary of State to the Secretary of State within 2 months after the date on which the AP beneficiary ceases to be in pensionable employment, the AP beneficiary is to be credited with the amount stated in the notice of the election.

(4) Except where sub-paragraph (5) applies, if no such lump sum is paid, the AP beneficiary is to be credited with an amount determined by the Secretary of State having regard to the contributions paid and any contributions treated as paid under paragraph 10(6).

(5) This sub-paragraph applies where—

(a) an ill-health pension becomes payable to the AP beneficiary immediately following a period of non-pensionable sick leave which immediately follows a period of pensionable employment, and

(b) that period of non-pensionable sick leave includes the 1-month period mentioned in sub-paragraph (1).

(6) For the purpose of this paragraph, an AP beneficiary who makes, or is treated as making, an election under regulation 19 (election to pay contributions by a person serving in a reserve force) is to be treated as being in pensionable employment during any period which, in accordance with that regulation, is to be treated as reckonable service.

Incapacity of AP beneficiary during payment or refund period

10

(1) This paragraph applies where an ill-health pension becomes payable to the AP beneficiary of the election mentioned in paragraph 6 before the end of the payment period or, if the refund period ends after the payment period, by virtue of the AP beneficiary becoming incapacitated before the end of the refund period.

(2) But this paragraph does not apply where before the ill-health pension becomes payable—

(a) an additional pension attributable to the election became payable to the AP beneficiary (see paragraph 7),

(b) the AP beneficiary revoked the election (see paragraph 8), or

(c) except where paragraph 9(5) applies, the AP beneficiary was out of pensionable employment for a continuous period of at least 1 month (see paragraph 9).

(3) Where the AP beneficiary becomes incapacitated before the end of the refund period—

(a) the monthly payments must be repaid to the AP beneficiary, and

(b) the AP beneficiary is not to be credited with an amount in respect of the election.

(4) This sub-paragraph applies where the AP beneficiary becomes incapacitated after the end of the refund period.

(5) Where sub-paragraph (4) applies, the AP beneficiary is to be credited with—

(a) if the declaration required by paragraph 2(5)(d) was made in good faith, the amount stated in the notice of the election, or

(b) if that declaration was not made in good faith, an amount determined by the Secretary of State having regard to the contributions paid.

(6) Where sub-paragraph (4) applies, the AP beneficiary is, while in receipt of the ill-health pension, to be treated as having paid the contributions which would, but for paragraph 6(6)(a), have been payable.

Death of AP beneficiary during payment or refund period

11

(1) This paragraph applies where the election mentioned in paragraph 6 is a dependant's election and the AP beneficiary dies before the end of the payment period or, if the refund period ends after the payment period, the end of the refund period.

(2) But this paragraph does not apply where before the AP beneficiary's death—

(a) an additional pension attributable to the election became payable to the AP beneficiary (see paragraph 7),

(b) the AP beneficiary revoked the election (see paragraph 8), or

(3) Where the AP beneficiary dies before the end of the refund period—

(a) the monthly payments must be repaid to each person who in consequence of that death would be entitled to receive payment were the monthly payments a death grant falling within regulation 82, and

(b) no person covered by paragraph (a) is to be credited with an amount in respect of the election.

(4) Where the AP beneficiary dies after the end of the refund period, each person covered by sub-paragraph (3)(a) is to be credited with—

(a) if the declaration required by paragraph 2(5)(d) was made in good faith, the amount stated in the notice of the election, or

(b) if that declaration was not made in good faith, an amount determined by the Secretary of State having regard to the contributions paid.

Actuarial advice

12

The Secretary of State must take advice from the scheme actuary before determining any amount under paragraphs 3, 4 and 7 to 11.

SCHEDULE 5 — Family benefit contributions

PART 1 — Elections

1

A qualifying person who is a pre-2007 entrant or a person with mixed service may, by giving written notice to the Secretary of State, elect to pay family benefit contributions attributable to a period of non-qualifying service in accordance with this Schedule.

2

A person (P) is a qualifying person if P is in pensionable employment and—

(a) P is married, or

(b) P is a civil partner, or

(c) P is living with a person who fulfils the condition in regulation 90(2) (conditions for becoming a surviving qualifying partner), or

(d) P has nominated a person under regulation 91 (nomination of surviving nominated beneficiary).

3

“Non-qualifying service” means—

(a) where the qualifying person (P) is —

(i) a man with a spouse or civil partner,

(ii) a woman with a female civil partner or a female spouse or (in the case of a woman who died on or after 5th December 2005) a male civil partner or a male spouse, or

(iii) a person who has nominated a person under regulation 91 (nomination of surviving nominated beneficiary),

reckonable service which ended before 1st April 1972;

(b) where P is a woman (with a male spouse) who died before 5th December 2005, reckonable service which ended before 6th April 1988, and

(c) where P is living with a person who fulfils the condition in regulation 90(2) (conditions for becoming surviving qualifying partner), reckonable service which ended before 1st January 2007,

but, where P would have been a member (as defined in paragraph 1 of Schedule 6 to TPR 1997) if Schedule 6 to the TPR 1997 had been in force at the date of the election, P’s non-qualifying service cannot exceed the maximum period in respect of which P could have made an election under Part 1 of that Schedule.

4

The election must be made during the election period (determined in accordance with paragraphs 5 to 7).

5

The election period begins—

(a) where the person making the election (P) is married or a civil partner, on the day on which P first becomes a qualifying person,

(aa) where P lives with a person who fulfils the condition in regulation 90(2), on the day on which that person first fulfils that condition,

(b) where P has made a nomination under regulation 91, on the day on which the nomination was made.

6

The election period ends on the earlier of the day on which—

(a) any election under regulation 9 (election for employment not to be pensionable) has effect, and

(b) the person has been a qualifying person for a continuous period of 6 months.

7

(1) Where a person (P) marries or forms a civil partnership more than once or makes more than one nomination under regulation 91 there is a separate election period in respect of each marriage, civil partnership or nomination.

(1A) Where P lives with a person who fulfils the condition in regulation 90(2) on more than one occasion, there is a separate election period in respect of each of those occasions.

(2) But where P has made an election P can only make a further election (in a subsequent election period) if P falls within a different sub-paragraph of paragraph 2 from the sub-paragraph in which P fell when the previous election was made.

8

If a qualifying person (P) dies before the end of the election period without making an election P's beneficiary may, by giving written notice within 3 months of the person's death, elect to pay family benefit contributions attributable to a period of P's non-qualifying service.

9

A qualifying person's (P's) beneficiary is—

(a) where P is married, P's spouse,

(b) where P is a civil partner, P's civil partner, ...

(ba) where a person fulfils the condition in regulation 90(2) in relation to P, that person, and

10

The person who makes an election must specify in the notice the period in respect of which the election is made, which must be either—

(a) the whole of the qualifying person's non-qualifying service, or

(b) a part of such service, consisting of one or more whole years.

11

Where an election is made under paragraph 1–

(a) the qualifying person (P) must state in the notice whether family benefit contributions are to be paid by Method 1 (monthly payments) or by Method 2 (lump sum) and, if the former, must specify the percentage rate of the qualifying person's contributable salary at which they are to be paid, and

(b) the election must be accompanied by a declaration by P that P is in normal health.

12

But an election stating that family benefits are to be paid by Method 1 is of no effect unless the payment period is more than a year.

13

Where a qualifying person's (P's) pensionable employment is part time, for the purpose of specifying (under paragraph 11(a)) a percentage rate at which family benefit contributions are to be paid or varying (under paragraph 20(1)) that rate, paragraph 11(a) has effect as if the reference to P's contributable salary were to P's full-time equivalent salary.

14

Except as provided in paragraph 20(1), an election under this Schedule is irrevocable.

15

(1) This paragraph applies where the qualifying person (P) states under paragraph 11(a) that family benefit contributions are to be paid by Method 1.

(2) Where this paragraph applies, except as otherwise provided in Part 2, P must pay family benefit contributions to the Secretary of State by way of monthly payments from P's contributable salary at the percentage rate specified under paragraph 11(a) or, where the rate is varied under paragraph 20(1), at the specified higher rate for the duration of the payment period.

(3) Except as otherwise provided in Part 2 the payment period (in years and fractions of a year) is A/B × C, where—

A is the period (in years) specified under paragraph 10,

B is the percentage rate specified under paragraph 11(a), and

C is the multiplier determined from time to time by the Secretary of State (after taking advice from the scheme actuary) for the purpose of this Part for a person of the same sex as the qualifying person's beneficiary (as defined in paragraph 9).

16

(1) Except where paragraph 15 applies, the person who makes an election under paragraph 1 or 8 must pay family benefit contributions to the Secretary of State by way of a lump sum calculated in accordance with the Method 2 formula in sub-paragraph (2) within 3 months of receiving written notice of the amount of the lump sum.

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

where—

A is the multiplier determined from time to time by the Secretary of State (after taking advice from the scheme actuary) for the purpose of this Part for a person of the same sex as the qualifying person's beneficiary (as defined in paragraph 9),

B is the period (in years) specified under paragraph 10, and

C is the annual rate of the qualifying person's contributable salary.

PART 2 — Further provisions where family benefit contributions are to be paid by Method 1

17

This Part applies where family benefit contributions are payable by monthly contributions under paragraph 15 (Method 1).

18

(1) The payment period begins on the first day of the month following that in which it is notified to the person by the Secretary of State.

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

(3) If after the start of the payment period there is an interval of more than 30 days during which the person is not in pensionable employment or paying additional contributions under regulation C9 of TPR 1997 or regulation 19—

(a) the interval is not part of the payment period, but

(b) the end of the payment period is postponed by the length of the interval.

(4) If after the start of the payment period the person becomes employed in part-time pensionable employment, the length of the payment period is increased by P x (1-CS/FTCS) where—

P is the period (in years and fractions of a year) in which the person was employed in part-time employment,

CS is the persons' contributable salary for the period, and

FTCS is what would have been the person's contributable salary for the period if the employment had been full-time.

19

(1) The contributions—

(a) are payable from the start of the payment period,

(b) continue to be payable while the person is in pensionable employment or paying additional contributions under regulation C9 of TPR 1997 or regulation 19, and

(c) cease to be payable if the person dies or becomes entitled to retirement benefits before the end of the payment period.

(2) Where the person is paying additional contributions under old regulation C9 of TPR 1997 or regulation 19 for any financial year, the family benefit contributions for that financial year are calculated by reference to the notional salary on which the additional contributions are payable and must be paid to the Secretary of State by the same day as the additional contributions.

20

(1) The election may at any time be varied by an election to pay family benefit contributions at a specified higher rate.

(2) An election under sub-paragraph (1)—

(a) must be made by giving written notice to the Secretary of State, and

(b) must be accompanied by a declaration by the person that the person is in normal health.

(3) Where the original election is varied by one made under sub-paragraph (1) (“the further election”) a new payment period begins on the first day of the month following that in which it is notified to the person by the Secretary of State.

(4) The new payment period is A-(B/CxD) where—

A is what the length of the payment period would have been if the increased rate had been specified in the original election,

B is the rate specified in the original election,

C is the increased rate, and

D is the period from the start of the payment period to the effective date of the further election.

(5) Paragraph 18(2), (3) and (4) applies to the new payment period.

21

(1) Paragraphs 22 to 26 apply where family benefit contributions cease to be payable before the end of the payment period.

(2) Paragraphs 22 to 26 are subject to paragraph 27.

(3) In paragraphs 22 to 27 “the appropriate terminal sum” means a retirement lump sum or a death grant as appropriate.

(4) For the purposes of paragraphs 22 and 23 a person with mixed service has a normal pension age of 65 in respect of all of that person's reckonable service (despite regulation 48).

22

(1) This paragraph applies where the person paying the contributions (P), —

(a) dies before reaching the normal pension age or

(b) (whether or not P later re-enters pensionable employment) becomes entitled to payment of retirement benefits by virtue of Case C (ill health retirement) applying to P's reckonable service before reaching the normal pension age,

and paragraph 24 does not apply.

(2) But this paragraph only applies where the Secretary of State is satisfied that—

(a) the declaration under paragraph 11(b), or

(b) where a declaration has been given under paragraph 20(2)(b), that declaration (or, if there is more than one, the most recent)

was made in good faith.

(3) Where this paragraph applies—

(a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made, but

(b) if part of the payment period falls after P's 60th birthday, in the case of a pre-2007 entrant, or P's 65th birthday in the case of a person with mixed service, the actuarial equivalent of the contributions that would have been payable during that part is to be deducted from the appropriate terminal sum.

23

(1) This paragraph applies where—

(a) the person paying the contributions dies, or becomes entitled to payment of retirement benefits, after reaching the normal pension age, or

(b) paragraph 22 does not apply only because the Secretary of State was not satisfied that the declaration under paragraph 11(b) or any declaration under paragraph 20(2)(b) was made in good faith

and paragraph 25 does not apply.

(2) Where this paragraph applies—

(a) contributions are to be treated as having been paid in respect of the whole of the period in respect of which the election was made, but

(b) except where sub-paragraph (3) applies, there is to be deducted from the appropriate terminal sum an amount of (A x B/100) x C

where—

A is the annual rate at which the person's contributable salary was last payable,

B is the rate at which the contributions were last payable, and

C is the multiplier determined from time to time by the Secretary of State after taking advice from the scheme actuary.

(3) Where the Secretary of State is satisfied that the declaration under paragraph 11(b) was made in good faith but is not satisfied that a declaration under paragraph 20(2)(b) was made in good faith there is to be deducted from the appropriate terminal sum an amount determined by the Secretary of State after taking advice from the scheme actuary.

24

(1) This paragraph applies where—

(a) the person paying the contributions (P) falls within paragraph 22(1)(a) or (b),

(b) part of the payment period falls after P's relevant birthday,

(c) the Secretary of State is satisfied that the declaration under paragraph 11(b) or any declaration under paragraph 20(2)(b) (where applicable) was made in good faith, and

(d) a phased retirement lump sum became payable to P before the family benefit contributions ceased to be payable.

(2) Where this paragraph applies—

(a) P may, by giving written notice to the Secretary of State within 3 months after the end of P's pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during that part of the payment period which falls after P's relevant birthday,

(b) if P does so elect, on payment of the lump sum, contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made, and

D is the period of non-qualifying service in respect of which the original election was made,

E is the period starting at the beginning of the payment period and ending on P's relevant birthday, and

F is the payment period.

(3) In this paragraph P's “relevant birthday” is P's 60th birthday where P is a pre-2007 entrant or P's 65th birthday where P is a person with mixed service.

25

(1) This paragraph applies where—

(a) the person paying the contributions (P) falls within paragraph 23(1)(a) or (b), and

(b) a phased retirement lump sum became payable to P before the family benefit contributions ceased to be payable.

(2) Where this paragraph applies contributions are treated as having been paid in respect of G x H/J where—

G is the period of non-qualifying service in respect of which the original election was made,

H is the period during which contributions were paid, and

J is the payment period.

26

(1) This paragraph applies where the person paying the contributions (P) becomes entitled to payment of retirement benefits by virtue of Case D applying to P's reckonable service.

(2) Where this paragraph applies—

(a) P may, by giving written notice to the Secretary of State within 3 months after the end of P's pensionable employment, elect to pay a lump sum which is the actuarial equivalent of the contributions that would have been payable during the remainder of the payment period,

(b) if P does so elect, on payment of the lump sum, contributions are to be treated as having been paid in respect of the whole of the period in respect of which the original election was made, and

K is the period of non-qualifying service in respect of which the original election was made,

L is the period during which contributions were paid, and

M is the payment period.

27

Where—

(a) a deduction has fallen to be made under paragraph 22(3) or 23(2) or an election has been made under paragraph 26(2)(a), and

(b) there is then a retrospective increase in the person's contributable salary, and

(c) the consequent recalculation of the amount of the deduction or lump sum and of the appropriate terminal sum results in a greater increase in the amount of the deduction or lump sum than in the terminal sum,

the person, or, as the case may be, the person's widow, widower, surviving civil partner, surviving qualifying partner or surviving nominated beneficiary, may give written notice to the Secretary of State in writing that the amount of the deduction made or lump sum payable is not to be increased.

SCHEDULE 6 — Transfer values

PART 1 — Outward Transfers

1

For the purposes of this Part—

(a) a transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under section 97 of PSA 1993 for the calculation of cash equivalents, and

(b) “occupational pension scheme” has the same meaning as in section 150(5) of FA 2004.

2

Paragraphs 3 to 6 are subject to paragraphs 7 to 10A.

3

Where—

(a) a transfer value is payable to the scheme managers of a club scheme or a personal pension scheme, or

(b) a transfer value is payable to the scheme managers of a registered pension scheme which is not a club scheme and none of the service to which it relates is service before 1st September 1988,

and no right to a cash equivalent was acquired, the transfer value is to be calculated on the cash equivalent basis.

4

Where—

(a) a transfer value is payable to the scheme managers of a registered pension scheme which is an occupational pension scheme and not a club scheme, and

(b) the service to which it relates includes service before 1st September 1988, and

the amount of the transfer value is the total of A and the greater of B and C, where—

A is a notional transfer value, calculated on the cash equivalent basis, in respect of the person's service after 31st August 1988,

B is a notional transfer value, calculated on the cash equivalent basis, in respect of the person's service before 1st September 1988, and

C is a notional transfer value, calculated as if Schedule 7 to TSR 1976, as in force on 31st August 1988, had continued in force, in respect of the person's service before 1st September 1988.

5

Where—

(a) a transfer value is payable to the scheme managers of a registered pension scheme which is an occupational pension scheme and not a club scheme, and

(b) the service to which it relates includes service before 1st September 1988, and

the amount of the transfer value is D - E where—

6

Where—

(a) a transfer value is payable to the scheme managers of a personal pension scheme, and

(b) a right to a part cash equivalent was acquired,

the transfer value is to be calculated on the cash equivalent basis but as if the person's pensionable employment had ended on 5th April 1988.

7

Unless the receiving scheme is a club scheme, where—

(a) the person in respect of whom a transfer value is payable had become entitled to count reckonable service under regulation 35(6) (acceptance of transfer value), or 36(3) (acceptance of bulk transfer values), and

(b) the amount determined in accordance with paragraph 3, 4, 5 or 6 (as appropriate) together with that of any cash equivalent paid on the transfer, is less than the appropriate amount,

a transfer value of the appropriate amount is to be paid.

(2) The appropriate amount is A+B-C, where—

8

Where a person has elected to receive phased retirement benefits the transfer value is calculated by reference to benefits other than those phased retirement benefits.

9

(1) This paragraph applies where—

(a) a transfer value falls to be calculated in accordance with paragraph 3 or 4, and

(b) for the purposes of paragraph 4 C is greater than B.

(2) Subject to sub-paragraphs (3) and (4), if the transfer value is not paid within 6 months after the person ceased to be in pensionable employment the amount calculated in accordance with paragraph 3 or 4 is increased by adding to it interest on C at 9% per year, compounded with 3-monthly rests, for each complete period of 3 months after the end of the employment and before the date of payment.

(3) If the employment ended before 1st April 1977 the amount calculated in accordance with paragraph 3 is increased by adding to it—

(a) interest on C at 6% per annum, compounded with yearly rests, for each complete period of a year after the end of the employment and before 1st April 1977, and

(b) interest on C at 9% per annum, compounded with 3-monthly rests, for the period of 3 months beginning on 1st April 1977 and for each subsequent complete period of 3 months before the date of payment.

(4) If the employment ended after 5th April 1978 and before 1st April 1979 the amount calculated in accordance with paragraph 3 is increased by adding to it interest on C at 6% per year compounded with yearly rests, for each complete period of a year after the end of the employment and before the date of payment.

10

Where a transfer value is paid to the scheme managers of an occupational pension scheme which is not a contracted-out scheme, or of a personal pension scheme, there may be deducted from it the amount of any contributions equivalent premium paid by the Secretary of State.

PART 2 — Inward Transfers

11

If Section 3 of Chapter 3 of Part 4 (Transfers on a CUKS basis; transfers in) applies, a person (P) is entitled to count as reckonable service the period of service under a comparable United Kingdom scheme certified by the scheme managers as having stood to P's credit under the scheme when P ceased to be subject to it.

12

(1) If Section 3 of Chapter 4 of Part 4 (Transfers on a cash equivalent basis; transfer in) applies, a person (P) is entitled to count as reckonable service the period specified in this paragraph.

(2) A period specified in this paragraph is determined by the Secretary of State having taken advice from the scheme actuary and by reference to—

(a) P's age and salary at the date P entered pensionable employment, if a transfer value is received within 12 months of entering pensionable employment;

(b) P's age and salary at the date a transfer value is received, if the transfer value is received more than 12 months after P enters pensionable employment.

(3) Any sum representing interest that is included in the transfer value is to be taken into account.

13

(1) This paragraph applies where—

(a) the person is subject to a personal pension scheme after ceasing to be in pensionable employment and that pensionable employment was after 31st December 1985.

(b) the person (P) has made an election under regulation 10 (election for employment to be pensionable) and falls within regulation 10(2)(a),

(c) the previous election under regulation B6 of TSR 1988 (election not to be pensionable) was made before 30th June 1994,

(d) P has been in excluded employment between the date of the election under regulation B6 of TSR 1988 and the date of the election under regulation 10 of these Regulations,

(e) a cash equivalent or a transfer value under regulation F1 of TSR 1988 (or both) was paid in respect of P in consequence of P ceasing to be in pensionable employment by virtue of the election under regulation B6 of the TSR 1988,

(f) P is an individual as is mentioned in section 172(1) of PA 1995, and

(g) the Secretary of State accepts a transfer value under regulation 35 of the amount specified in sub-paragraph (3).

(2) In this paragraph —

(a) “the period of original pensionable employment” means the period during which P was in pensionable employment before P made the election under regulation B6 of TSR 1988; and

(b) “the transfer out payment” means the payment referred to in sub-paragraph (1)(e).

(3) The amount referred to in sub-paragraph (1)(g) is A+B where— A is the transfer value which, calculated on the basis specified in paragraph 12(2), would enable the person to count the period of excluded employment as reckonable service as if it had been pensionable employment; and B is the greater of—

(a) the transfer out payment together with—

(i) in a case where the transfer value was paid to the Secretary of State pursuant to regulation 35 within four weeks of the request under regulation 35(2) an amount, determined actuarially, which represents the income which would have been received had such sum been invested during the period starting at the end of the month in which the transfer out payment was made and ending at the end of the month in which the request under regulation 35(2) was made; and

(ii) in any other case the amount referred to in paragraph (i) above together with a further amount, determined actuarially, which represents the income which would have been received compounded with monthly rests, had such sum been invested during the period starting at the end of the month in which the request under regulation 35(2) was made and ending at the end of the month in which the transfer value was paid to the Secretary of State; and

(b) the amount which would be paid as a cash equivalent or transfer value (or both) by the Secretary of State in respect of the person if at the date on which P made the election under regulation 10—

(i) P was in pensionable employment and made an election under regulation 9 (election not to be pensionable); and

(ii) P had been in pensionable employment for a period equal to the period of original pensionable employment.

(4) Where this paragraph applies P is entitled to count as reckonable service—

(a) the reckonable service arising from the period of original pensionable employment; and

(b) such service arising from the period of excluded employment as if it had been pensionable employment.

PART 3 — Inward transfers: bulk transfers

14

In this Part “bulk transfer” has the same meaning as in regulation 36A.

15

The person is entitled to count as reckonable service a period of service determined in accordance with the terms of the bulk transfer as agreed between the Secretary of State and the scheme manager of the previous scheme, the Secretary of State having taken advice from the scheme actuary as to those terms.

SCHEDULE 7 — Retirement benefits

Case A: retirement on or after reaching normal pension age

1

(1) Where a person ceases to be in pensionable employment, Case A applies to so much of the person's reckonable service as is mentioned in sub-paragraph (2).

(2) The reckonable service is reckonable service in relation to which the person has reached the normal pension age.

2

(1) Where a person (P) satisfies the condition for retirement, the entitlement day for Case A is—

(a) if P is not in pensionable employment on the day on which P reaches the normal pension age in relation to the reckonable service, the day on which P reaches that age, and

(b) if P is in pensionable employment on the day on which P reaches the normal pension age in relation to the reckonable service, the day after P ceases to be in pensionable employment.

(2) Where a person (P) satisfies the condition for retirement following further employment, the entitlement day for Case A is the earliest of the following—

(a) if P is in pensionable or excluded employment on the day on which P makes an application under regulation 107, the day after the cessation of the employment;

(b) if P is not in pensionable or excluded employment on the day on which P makes an application under regulation 107, such day as P specifies in the application, which must be no earlier than 6 weeks after the day on which P's application is made;

Case C: ill-health retirement

3

(1) Except as provided in paragraph 4, a person (P) falls within this paragraph if—

(a) P satisfies either Conditions 1, 2 and 3 or Condition 4, and

(b) P makes an application under regulation 107 for retirement benefits on the basis that Case C, and no other Case (apart from Case A), applies to P’s reckonable service.

(2) Condition 1 is that P left all pensionable employment because P was incapacitated (or this was one of the reasons why P left all pensionable employment).

(3) Condition 2 is that P makes the application under regulation 107—

(a) before ending a period of non-pensionable sick leave, non-pensionable family leave or a career break, or

(b) within 2 years of the last day of pensionable employment.

(4) Condition 3 is that immediately before making the application under regulation 107 P is incapacitated and is likely to be incapacitated permanently.

(5) Condition 4 is that 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.

(6) Where P satisfies Conditions 1, 2 and 3, the illness or injury P relies upon in the application under regulation 107 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.

4

(1) A person (P) does not fall within paragraph 3 if Condition A or Condition B applies.

(2) Condition A applies if a death grant may be paid under regulation 83 (death grant: death in service) or 85 (death grant: death out of service) on P's death (because P dies before payment of an ill-health pension is initiated).

(2A) But Condition A does not apply if—

(a) D made an application to the Secretary of State before D’s death for retirement benefits on the basis that Case C, and no other case (apart from Case A), applied to D’s reckonable service;

(b) at the same time that D made the application mentioned in paragraph (a), D made an application for commutation of the ill-health pension (and any total incapacity pension payable under regulation 65) under regulation 118 (commutation: serious ill health); and

(c) following consideration of the applications mentioned in 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.

(3) Condition B 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,

(d) the General Teaching Council for England or the 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.

(4) But Condition B 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.

(5) 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;

(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.

(6) In this paragraph “prohibition order”, “relevant offence” and “unacceptable professional conduct” have the same meanings as in Schedule 2 to the Teaching and Higher Education Act 1998.

5

(1) Where a person (P) falls within paragraph 3, Case C applies to P's reckonable service.

(2) But Case C does not apply to any of P's reckonable service in relation to which, on the day which would be the entitlement day if Case C were to apply to the reckonable service, P has reached the normal pension age.

6

(1) The entitlement day for Case C is the latest of the following—

(a) the day on which a person (P) first satisfies Condition 1 (where P satisfies Conditions 1, 2 and 3) or Condition 4 (where P does not satisfy Conditions 1, 2 and 3);

(b) the day after the day on which P ceases to be in pensionable employment, excluded employment, on non-pensionable sick leave, on non-pensionable family leave or on a career break;

(c) the day which occurs 6 months before the date of the medical report following consideration of which the Secretary of State determines that P satisfies Condition 1 (where P satisfies Conditions 1, 2 and 3) or Condition 4 (where P does not satisfy Conditions 1, 2 and 3).

(1A) The Secretary of State may only make the determination mentioned in sub-paragraph (1)(c) after consideration of a medical report produced no more than 18 months before the date on which P made the application under regulation 107 for retirement benefits.

(2) But the entitlement day must not be before the date of any previous medical report following consideration of which the Secretary of State did not make the determination mentioned in sub-paragraph (1)(c).

Case D: premature retirement

7

(1) A person (P) falls within this paragraph if—

(a) P ceases to be in pensionable or excluded employment because P's employment is terminated by reason of P's redundancy or in the interests of the efficient discharge of P's employer's functions,

(b) P is 55 or over on the date when P falls within paragraph (a),

(i) P's employment 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 retirement benefits should become payable to P by virtue of P falling within this paragraph (as a result of which P will become entitled to lump sum and annual compensation under regulation 9 of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015),

(d) P receives no compensation under Part 3 of those Regulations as a result of the termination of the employment, and

(e) P makes an application under regulation 107 for retirement benefits on the basis that Case D, and no other Case (apart from Case A), applies to P's reckonable service.

(2) Where P's employment falls within category A (as defined by regulation 34(1) of the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 2015) and the governing body of the school or institution mentioned in that provision requests the local authority to do so, the authority must notify the Secretary of State as mentioned in sub-paragraph (1)(c).

8

(1) Where a person (P) falls within paragraph 7, Case D applies to P's reckonable service.

(2) But Case D does not apply to any of P's reckonable service in relation to which, on the day which would be the entitlement day if Case D were to apply to the reckonable service, P has reached the normal pension age.

9

The entitlement day for Case D is the day after the cessation of the employment mentioned in paragraph 7(1)(a).

Case E: early retirement with actuarial adjustment

10

(1) A person (P) falls within this paragraph if—

(a) P was in pensionable or excluded employment at any time after 29th March 2000,

(b) P ceases to be in such employment,

(d) where P has equivalent pension benefits in respect of employment between 3rd April 1961 and 5th April 1975 or a guaranteed minimum pension in respect of employment before 6th April 1997 or both, the scheme actuary is of the opinion that the annual rate of P's retirement pension would, if this paragraph applied to P, equal or exceed the sum of any equivalent pension benefits and any guaranteed minimum pension, and

(e) P makes an application under regulation 107 for retirement benefits on the basis that Case E, and no other Case (apart from Case A), applies to P's reckonable service.

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.

The Teachers’ Pensions Regulations 2010

SCHEDULE 2 — Pensionable employment

PART 1 — Employments pensionable without election

1

2

3

4

5

6

7

8

9

10

11

12

13

14

PART 2 — Employments pensionable on election

15

16

17

PART 3 — Employments pensionable on election with employer consent

18

19

20

21

22

23

24

25

SCHEDULE 3 — Employees' and employers' contributions

Interpretation

1

Employees' contributions

2

3

Employers' contributions

4

Supplemental

5

SCHEDULE 4 — Contributions for additional pensions

Interpretation

1

Election to pay contributions for additional pension

2

Maximum amount of additional pension

3

Determination of contributions

4

Lump sum election: payment of contributions and credit of additional pension

5

Monthly contribution election: payment of contributions and credit of additional pension

6

AP beneficiary becoming entitled to pension during payment period

7

AP beneficiary revoking election during payment period

8

AP beneficiary ceasing to be in pensionable employment during payment period

9

Incapacity of AP beneficiary during payment or refund period

10

Death of AP beneficiary during payment or refund period

11

Actuarial advice

12

SCHEDULE 5 — Family benefit contributions

PART 1 — Elections

1

2

3

4

5

6

7

8

9

10

11

12

13