The Teachers’ Pensions Regulations 2010

Calculation of reckonable service where cap on contributable salary is removed

44.—(1) This regulation applies to the following—

(a)a person who made an election under regulation C1A(2)(1) of TPR 1997 (removal of cap on contributable salary),

(b)a person to whom regulation C1(8) of TPR 1997 (salary on which contributions are payable) or regulation 17(4) of these Regulations (cap on contributable salary) ceased to apply because the person began a new employment (see regulation C1A(5) of TPR 1997 and regulation 17(6) of these Regulations), and

(c)a person to whom regulation C1(8) of TPR 1997 (salary on which contributions are payable) or regulation 17(4) of these Regulations (cap on contributable salary) ceased to apply because the person’s contract of employment was varied (see regulation C1A(8) of TPR 1997 and regulation 17(9) of these Regulations).

(2) The reckonable service of a person to whom this regulation applies is CP x PM/CS + UP, rounded up to the nearest day.

(3) In paragraph (2)—

• CP is the total of the person’s capped periods;

• PM is the permitted maximum having effect on Date 1;

• CS is the greater of PM and the amount of the person’s uncapped contributable salary in the period of 12 months ending on Date 2;

• UP is the total of the person’s uncapped periods.

(4) Where the person falls within paragraph (1)(a)—

(a)Date 1 is the first day of the month after the month in which notice of the election was received by the Secretary of State;

(b)Date 2 is the last day of the month in which notice of the election was received by the Secretary of State.

(5) Where the person falls within paragraph (1)(b)—

(a)Date 1 is the date on which the new employment began;

(b)Date 2 is the last day of the pensionable employment which preceded the new employment.

(6) Where the person falls within paragraph (1)(c)—

(a)Date 1 is the date on which the variation of the contract of employment took effect;

(b)Date 2 is the day before Date 1.

(7) In this regulation—

“capped period” means a period which, apart from this regulation, a person would be able to count as reckonable service and which is attributable either to pensionable employment in which the person’s contributable salary was subject to a cap under regulation 17(4) (cap on contributable salary), regulation C1(8) of TPR 1997 or regulation C1(12) of TSR 1988 or to a transfer value accepted from a pension scheme whose benefits were subject to the limits imposed under section 590C of the Income and Corporation Taxes Act 1988(2) or regulation 4 of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006(3);

“permitted maximum” has the meaning in regulation 1(2) of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006;

“uncapped contributable salary” means contributable salary without taking into account the cap under regulation 17 (cap on contributable salary), regulation C1(8) of TPR 1997 or regulation C1(12) of TSR 1988;

“uncapped period” means a period which, apart from this regulation, a person would be able to count as reckonable service and which is not a capped period.