The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014

Amendments to regulation 64 (Abatement of retirement pension during further employmentU.K.

15.  For regulation 64 substitute—

“Interpretation: abatement of pension

64.  In this regulation and regulations 64A to 64D—

“abatable pension” means the sum of a person's retirement pension—

“adjusted salary of reference” for a person (P) is—

“adjustment factor” for a salary is the amount (if any) by which, immediately before the first day of the employment, that salary would have increased if it had been the annual rate of an official pension as defined in section 5(1) of PIA 1971, beginning and first qualifying for increases under that Act, on the same date as—

“initial adjusted salary of reference” is a person's adjusted salary of reference divided by 365 and multiplied by the number of days in the initial period;

“initial period” is that part of a tax year running from a person's entitlement day in respect of retirement benefits and ending at the end of the tax year;

“pension receipts” means the sum of a person's retirement pension—

“salary” means—

Scope of abatement of retirement pension following further employment

64A.  Regulation 64B applies to a person (P) to whom retirement benefits have become payable and who is employed—

(a)in pensionable employment, comparable United Kingdom service or employment which would have been pensionable but for—

(i)P having made an election under regulation 9 (election for employment not to be pensionable), or

(ii)P having reached the age of 75;

(b)in part-time employment in a capacity described in paragraphs 1, 2 and 4 to 9 of Schedule 2, which is not pensionable employment by reason of the fact that the employment falls within regulation 7(6), and P has not made an election under regulation 10(1) (election for employment to be pensionable), or

(c)in full-time employment which is not pensionable employment by reason of the fact that the employment falls within regulation 7(8), and P has not made an election under regulation 10(2)(d).

Abatement of a retirement pension following further employment

64B.—(1) Where this regulation applies to a person (P) and P is in an initial period—

(a)if P's salary in the employment during the initial period equals or exceeds P's initial adjusted salary of reference, no abatable pension is to be paid in that tax year;

(b)in any other case, the abatable pension to which P is entitled in the initial period is to be paid only in respect of X number of days, where—

(2) Where this regulation applies to P and P is not in an initial period—

(a)if P's salary in the tax year equals or exceeds P's adjusted salary of reference, no abatable pension is to be paid in that tax year;

(b)in any other case, the abatable pension to which P is entitled in that tax year is to be paid only in respect of X number of days, where—

Method of abatement

64C.—(1) Where the abatable pension of a person (P) falls to be reduced—

(a)under regulation 64B(1), paragraph (2) applies, or

(b)under regulation 64B(2), paragraph (3) applies.

(2) Where this paragraph applies, the Secretary of State is to pay P's abatable pension in accordance with regulation 109 (monthly payments) or regulation 110 (quarterly payments), without taking account of the reduction, until the abatable pension has been paid in respect of the number of days calculated in regulation 64B(1)(b), on the assumption that P will remain in employment at the same salary for the remainder of the initial period.

(3) Where this paragraph applies, the Secretary of State is to pay P's abatable pension in accordance with regulation 109 (monthly payments) or regulation 110 (quarterly payments), without taking account of the reduction, until the abatable pension has been paid in respect of the number of days calculated in regulation 64B(2)(b), on the assumption that P will remain in employment at the same salary for the remainder of the tax year.

(4) When P's abatable pension has been paid in respect of the number of days calculated in regulation 64B(1)(b) or (2)(b) paragraph (5) applies, unless P ceases to be in the employment, or is in employment at a lower salary, in which case paragraph (6) applies.

(5) If this paragraph applies the Secretary of State is to pay no further abatable pension to P in respect of—

(a)the remainder of the initial period, if regulation 64B(1)(b) applies, or

(b)the remainder of the tax year, if regulation 64B(2)(b) applies.

(6) If this paragraph applies the Secretary of State is to pay P's abatable pension during the remainder of the initial period or tax year, of such amount and at such times as is necessary in order to achieve the outcome described in—

(a)regulation 64B(1)(b) in respect of an initial period, or

(b)regulation 64B(2)(b) in respect of a tax year.

Recovery of overpaid pension

64D.—(1) If the abatable pension paid in any tax year has exceeded the amount which should have been paid by virtue of regulations 64B and 64C, the difference between the amount which has been paid and the amount which should have been paid is an overpayment to which paragraph (2) applies.

(2) Where this paragraph applies, the overpayment is recoverable—

(a)under regulation 114,

(b)by a reduction in the abatable pension paid in any subsequent tax year, or

(c)by a combination of (a) and (b).”.