The Teachers’ Pensions Regulations 2010

Contributable salary - residential accommodation

16.—(1) In this regulation “residential benefits in kind” means the money value of—

(a)any residential accommodation provided to a person (T) in connection with T’s employment,

(b)any heat, lighting or water provided free in respect of the accommodation, and

(c)any council tax paid on T’s behalf in respect of the accommodation.

(2) Residential benefits in kind are also part of T’s contributable salary if the conditions in paragraph (4) are met.

(3) But if the total of the money value of the residential benefits in kind exceeds one sixth of the aggregate of the amounts mentioned in regulation 15(2) or, where applicable, regulation 15(3)(a) and (b), the excess is not part of T’s contributable salary.

(4) The conditions are—

(a)that T’s employer (E) makes a written application to the Secretary of State, within 3 months of the start of the employment or (if later) the first day on which the accommodation is provided, for the money value of residential benefits in kind to be part of T’s contributable salary,

(b)the Secretary of State is satisfied that it is expedient for residential accommodation to be provided to T in connection with T’s employment, and

(c)E certifies that E will review the value of the residential benefits in kind at the times referred to in paragraph (5) and provide written notification to the Secretary of State of the results of the reviews.

(5) The first review must be carried out within 2 years of the start of T’s employment or, if later, the first day on which the accommodation is provided, and each subsequent review must be carried out within 2 years of the previous review.

(6) Where, pursuant to paragraphs (2) to (5), the money value of residential benefits in kind is part of T’s contributable salary, that money value is to be treated as having formed part of T’s contributable salary from the date of the start of T’s employment or (if later) the first day on which the accommodation was provided.

(7) Where the employer does not carry out the necessary reviews in accordance with paragraph (5) or notify the Secretary of State of the results of each review, the Secretary of State may treat the residential benefits in kind as never having been part of T’s contributable salary and, in that event, the Secretary of State is to repay to the employer the amount specified in paragraph6 (8) together with interest as specified in paragraph (9).

(8) The amount is the difference between—

(a)all contributions referred to in regulation 30(1)(a) and (b) paid by the employer during the period when the residential benefits were treated as part of T’s contributable salary, and

(b)all contributions referred to in regulation 30(1)(a) and (b) which would have been payable during that period without the residential benefits being treated as part of T’s contributable salary

less the amount of the tax chargeable on contributions of that amount under section 205 of FA 2004.

(9) The interest is interest on the contributions referred to in paragraph (8) at the rate of 3% per year, compounded with yearly rests, from the first day of the financial year following that in which they were paid to the date of repayment.

(10) This regulation is subject to regulation 17 (cap on contributable salary).