The Teachers' Superannuation (Consolidation) Regulations 1988

Regulation A2(1)

SCHEDULE 1GLOSSARY OF EXPRESSIONS

Regulation B1

SCHEDULE 2PENSIONABLE EMPLOYMENT

PART IEMPLOYMENTS PENSIONABLE WITHOUT ELECTION

1.  Teacher employed by, or in a school or establishment of further education maintained by, a local education authority.

2.  Teacher in a special school not maintained by a local education authority.

3.  Teacher in a school, other than a special school, in respect of which grants are made by the Secretary of State to the person responsible for its management.

4.  Teacher, organiser or supervisor employed—

(a)in an independent school which is for the time being recognised by the Secretary of State as a city technology college, or

(b)in connection with a proposed independent school the proposals for which are for the time being recognised by the Secretary of State as proposals for a city technology college.

5.  Teacher in an establishment providing further education in respect of which grants are made to the governing body by the Secretary of State, by a body to which grants are made by the Secretary of State, or by a local education authority, other than—

(a)a university or college of a university,

(b)the Royal College of Art, and

(c)the Cranfield Institute of Technology.

6.  Teacher employed in—

(a)a community home within the meaning of Part IV of the Child Care Act 1980(21),

(b)a voluntary home as defined in section 56 of that Act(22), or

(c)a home of the kind referred to in section 80 of that Act.

7.  Teacher employed by a local authority or a voluntary organisation in an establishment which provides facilities under arrangements approved under section 19 of the Children and Young Persons Act 1969(23).

8.  Teacher in—

(a)a residential care home within the meaning of Part I of the Registered Homes Act 1984, or

(b)a mental nursing home as defined in section 22 of that Act,

who at any time before the commencement of Part III of the Mental Health Act 1959(24) was in pensionable employment in a certified institution as defined in section 71 of the Mental Deficiency Act 1913(25).

9.  Teacher in a special hospital provided by the Secretary of State under section 4 of the National Health Service Act 1977(26) (“the 1977 Act”).

10.  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)in a hospital provided by the Secretary of State in accordance with the 1977 Act, or

(b)by a voluntary organisation to which—

(i)contributions are made by a local authority under section 65 of the Health Services and Public Health Act 1968(27), or

(ii)facilities are made available under section 23 of the 1977 Act(28), or

(c)by a local authority in the exercise of its functions under paragraph 2 of Schedule 8 to the 1977 Act(29).

11.  Teacher employed by the Field Studies Council.

12.  Teacher employed in pursuance of arrangements made by the Secretary of State with the governors of any establishment which by virtue of the European Communities (European Schools) Order 1972(30) has the legal capacities of a body corporate.

13.  Organiser employed as a youth and community worker by a local education authority for the purposes of their functions under section 41 or 53 of the Education Act 1944(31).

PART IIEMPLOYMENTS PENSIONABLE ON ELECTION

14.  Teacher in an institution for the further education and training of disabled persons.

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

16.  Teacher employed by the Royal National Institute for the Blind for the purposes of its National Mobility Centre.

17.  Teacher employed by the Spastics Society in its Staff Training College.

18.  Teacher employed by the Commonwealth Institute.

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

20.  Organiser employed by—

(a)the Sports Council, or

(b)the Sports Council for Wales, or

(c)any other body, except a local education authority, to which grants—

(i)are made by either of those Councils or by a local education authority, or

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

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

21.  Teacher, supervisor or youth worker employed by the Ministry of Defence in service with the Armed Forces of the Crown or for purposes connected with the Armed Forces, unless—

(a)the Principal Civil Service Pension Scheme applies to him, or

(b)he was engaged outside the United Kingdom and had not previously been in other pensionable employment.

22.  Services education officer.

23.  Organiser employed as a youth and community worker by a body to whom grants are made by a local education authority in the exercise of their functions under section 41 or 53 of the Education Act 1944.

24.  Organiser employed by—

• the City and Guilds of London Institute,

• the Associated Examining Board,

• a Regional Advisory Council for Further Education,

• the Council for National Academic Awards,

• the Business and Technician Education Council,

• the Catholic Education Council,

• a Roman Catholic Diocesan Schools Commission,

• the Spastics Society,

• the Royal National Institute for the Blind,

• a Diocesan Education Committee established under the Diocesan Education Committees Measure 1955(32),

• the National Nursery Examination Board,

• the National Society for Promoting Religious Education,

• the Independent Schools Careers Organisation,

• the Association of Christian Teachers,

• the East Midlands Further Education Council,

• the Yorkshire and Humberside Association for Further and Higher Education,

• the North of England Institute for Christian Education, or

• the Field Studies Council.

25.  Teacher in a university who—

(a)was employed as a teacher in an establishment of further education described in paragraph 1 or 5 which has ceased to fall within that description and become part of the university, and

(b)was so employed immediately before it did so.

Regulations C3, C8

SCHEDULE 3MAXIMUM LENGTH OF ADDITIONAL PERIODS

1.—(1) Subject to paragraph 2, the maximum length of the period in respect of which an election may be made under regulation C3 or C8 is A−B, where—

• A is the length of time specified in the second column of the Table below against the person’s adjusted age, and

• B is the length of any additional period already purchased or in course of being purchased by him.

  TABLE

  Adjusted age	Length of time
  Under 50	30 years
  50 and under 51	23 years
  51 and under 52	16 years
  52 and under 53	9 years
  53 and under 54	2 years
  54 and over	Twice the difference in days between the adjusted age and 55 years

(2) A person’s adjusted age—

(a)if he has continued in pensionable employment since the start of his first such employment and has not been credited with reckonable service on the receipt of a transfer value in respect of comparable British service, is his age at the start of his first pensionable employment, and

(b)in any other case, is C−D, where—

• C is his age at the start of his most recent pensionable employment, and

• D is the total of the time he had then spent in pensionable employment and the length of any reckonable service with which he has been credited on the receipt of a transfer value in respect of comparable British service.

2.—(1) This paragraph applies to a person who—

(a)has been credited with admitted service, or

(b)at the start of his most recent pensionable employment was entitled in respect of a former employment to material benefits, whether or not they had then become payable.

(2) Material benefits comprise—

(a)any benefits by way of pension, allowance, lump sum or gratuity whose actuarial equivalent as an annuity for life from the age of 60 would be more than £104 a year, and

(b)any refund of contributions which, together with any interest payable, exceeded £2,000 and which was received after the person attained the age of 45.

(3) Where this paragraph applies and the number of years calculated in accordance with sub-paragraph (4) is lower than the number specified against the person’s adjusted age in the Table, paragraph 1(1) applies with the substitution of that lower number as “A”.

(4) The number of years is the highest one that secures that E+F+G+H does not exceed J, where—

• E is the actuarial equivalent as an annuity for life from the age of 60 of any material benefits,

• F is the actuarial equivalent as such an annuity of any benefits attributable to admitted service,

• G is the actuarial equivalent as such an annuity of the notional retirement lump sum,

• H is the annual amount of the notional pension, and

• J is two thirds of the notional average salary.

(5) The notional retirement lump sum, pension and average salary—

(a)where the election is made before the person attains the age of 60, are those resulting from the assumptions that he continues in pensionable employment until that age and then becomes entitled to retirement benefits and that the salary scale applicable at the date of the election continues to apply, and

(b)where the election is made after the person has attained the age of 60, are those resulting from the assumptions that he ceased to be in pensionable employment on his 60th birthday and then became entitled to retirement benefits.

3.—(1) This paragraph applies where a person—

(a)has elected to pay additional contributions under regulation C3, or

(b)has continued to pay additional contributions by virtue of regulation C5(1) (elections made before 30th August 1982),

and before attaining the age of 60 and before the end of the period during which they were to be paid he ceases to be in full-time pensionable employment, otherwise than by reason of his death or his becoming incapacitated or becoming entitled to retirement benefits by virtue of regulation E4(7) (redundancy, etc.).

(2) Where this paragraph applies, any right to elect to make a lump sum payment may be exercised only to the extent that it does not result in the addition to the service that he would otherwise have been entitled to count as reckonable service of more than—

Regulation C3

SCHEDULE 4ADDITIONAL CONTRIBUTIONS FOR PAST PERIOD

PART 1METHOD A

1.—(1) In this Part (and throughout this Schedule) “the principal election” means the election made under regulation C3, “the past period” means the period specified under regulation C3(12)(a), and “the contribution period” means the period specified under regulation C3(12)(c).

(2) During any period for which a person is paying additional contributions for a current period under regulation C8, for the purposes of this Part (and of Part III)—

(a)he is to be treated as being in full-time pensionable employment, and

(b)his contributable salary is the notional salary described in regulation C8(7).

2.—(1) The contribution period must be one of not less than one year, and begins on the first day of the month following that in which the election becomes irrevocable under regulation C3(13).

(2) The contribution period and the past period must be such that A+B does not exceed 15 per cent of his contributable salary for the time being, where—

• A is the rate at which the additional contributions are payable, and

• B is the rate at which he pays other contributions under Part C (except any treated for the purposes of regulation G2 as employer’s contributions) or towards the provision of a pension otherwise than under these Regulations.

3.  Subject to paragraphs 4 and 5, the rate at which the additional contributions are payable is the percentage ascertained from Table 1 below of his contributable salary for the time being.

4.—(1) At any time during the contribution period the person may, subject to paragraph 2, by giving written notice to the Secretary of State elect to shorten it or, if he has already made one or more such elections, to shorten it further.

(2) An election under this paragraph—

(a)has effect only if the Secretary of State notifies the person in writing that it has been accepted, and

(b)on acceptance, has effect as from the next anniversary of the start of the contribution period (“the effective date”).

(3) From the effective date Table 1 in paragraph 3 applies with the substitution—

(a)for the person’s age at the date of the principal election, of his age at the date when notice of the election under this paragraph was given,

(b)for the number of years in the contribution period, of the number of years after the effective date in the shortened period, and

(c)for the number of years in the past period, of that number multiplied by—

5.—(1) Subject to sub-paragraphs (2) to (5), if the person—

(a)before the end of the contribution period ceases to be in full-time pensionable employment, and

(b)does not again enter such employment within one month and before becoming entitled to retirement benefits,

the principal election ceases to have effect.

(2) Unless he receives a refund of contributions under regulation C10, he may—

(a)if he became entitled to payment of retirement benefits on ceasing to hold his employment, on or after applying for them and before receiving a retirement lump sum, or

(b)in any other case, within 3 months after the end of his employment,

by giving written notice to the Secretary of State elect to complete payment of the additional contributions (so that regulation D3(1)(b) will apply instead of regulation D3(2)) by making a lump sum payment under this paragraph.

(3) Where he had not attained the age of 60 when he ceased to hold his employment, the amount of the payment is, subject to sub-paragraph (4) and to paragraph 3 of Schedule 3, the actuarial equivalent, when the employment ended, of the additional contributions that would have been payable for the remainder of the contribution period.

(4) Where—

(a)when he ceased to hold his employment he had become incapacitated and had not attained the age of 60, and

(b)he would have attained that age before the end of the contribution period,

the amount of the payment is, subject to paragraph 3 of Schedule 3, the actuarial equivalent, when the employment ended, of the additional contributions that would have been payable after he attained that age.

(5) Where he had attained the age of 60 when he ceased to hold his employment, the amount of the payment is, subject to paragraph 3 of Schedule 3, E×F, where—

• E is the amount of the additional contributions for one year at the rate at which they were last payable, and

• F is the multiplier ascertained from, or where the remainder of the contribution period is not an exact number of years by extrapolation from, Table 2 below.

(6) If the payment is not made within the period allowed by sub-paragraph (2) for making the election, the election ceases to have effect.

6.  Where paragraph 5 has become applicable and the person is entitled to a retirement lump sum which is smaller than the payment he could elect to make under that paragraph, he may instead elect, in the same way and during the same period, to make a payment under this paragraph of a lump sum equal to the retirement lump sum.

7.  Any retirement lump sum to which the person is entitled may, subject to paragraph 8(2)(d), be set off in whole or part against any payment to be made under paragraph 5 or 6.

8.—(1) This paragraph applies—

(a)where paragraph 5 has become applicable because the person died while in full-time pensionable employment, or

(b)where he dies within 3 months after ceasing to be in such employment without having made an election under paragraph 5 or 6,

and another person (“the pensioner”) is entitled under regulation E25 to a long-term pension in respect of him.

(2) Where this paragraph applies—

(a)the person is to be treated as having ceased to hold the employment when incapacitated,

(b)any election that could have been made under paragraph 5 or 6 may, within 3 months after the death, be made by the pensioner, or in the case of a child by a person acting on his behalf,

(c)if any payment due by virtue of such an election is not made within 3 months after the death the election ceases to have effect, and

(d)a terminal sum may be set off against such a payment only to the extent that the person entitled to it consents.

PART IIMETHOD B

9.—(1) Subject to paragraphs 10 to 12, the additional contributions consist of a lump sum of A×B×C, where—

• A is the length of the past period, expressed in years and any fraction of a year,

• B is the annual rate of the person’s contributable salary at the date on which notice of the election was given, and

• C is the percentage ascertained from Table 3 below.

(2) If the lump sum is not paid within one month after the date on which the election became irrevocable under regulation C3(13) the election ceases to have effect.

10.—(1) Subject to paragraphs 11 and 12 and paragraph 16(3) of Schedule 10, this paragraph applies where the person’s contributable salary was reduced (whether in consequence of a change of post or otherwise) within—

(a)the year, or

(b)if when notice of the election was given he had attained the age of 57, the period of 3 years,

ending immediately before the date on which notice of the election was given.

(2) Where this paragraph applies, paragraph 9 has effect with the substitution as “B” of the annual rate of the contributable salary that would have been payable at that date if he had continued to be employed in the same post and on the same terms.

11.  Where notice of the election was given on or after applying for payment of retirement benefits, paragraph 9 has effect with the substitution as “B” of the person’s average salary.

12.  Where notice of the election was given when the person was in part-time pensionable employment, the references in paragraphs 9 and 10 to contributable salary are to be construed as references to that which would have been payable if the person had at all material times been in comparable full-time employment.

PART IIIMETHOD C

13.—(1) The contribution period begins on the commencement date, that is to say 1st October next following the date on which notice of the principal election was given.

(2) Where at the commencement date the person has attained the age of 55, the contribution period must be one of not less than one nor more than 5 years.

(3) In any other case, the contribution period must be one of not less than one nor more than 10 years, ending on or before his 60th birthday.

(4) The contribution period and the past period must be such that at the commencement date A+B does not exceed 15% of his contributable salary, where—

• A is the rate at which the additional contributions are payable, and

• B is the rate at which he pays other contributions under Part C (except any treated for the purposes of regulation G2 as employer’s contributions) or towards the provision of a pension otherwise than under these Regulations.

14.—(1) Subject to paragraph 15, the amount of the additional contributions is to be paid in equal monthly instalments.

(2) The amount of the additional contributions is C×D×E, where—

• C is the Method B sum,

• D is the number of instalments to be paid, and

• E is the multiplier ascertained from, or where the contribution period is not an exact number of years by extrapolation from, the appropriate Table.

(3) Where paragraph 13(2) applies, the appropriate Table is Table 4 below.

(4) In any other case, the appropriate Table is Table 5 below.

(5) The relevant rate of interest is the average gross redemption yield described in sub-paragraph (6) on the last 1st August before the date on which the election became irrevocable under regulation C3(13) or, if The Stock Exchange was not then open, on the last day on which it had been open.

(6) The average gross redemption yield is that computed and designated jointly by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries as that appropriate to British Government high-coupon 5-year stocks.

15.—(1) Subject to sub-paragraphs (2) and (3) (and having regard to paragraph 1(2)), if the person—

(a)before the end of the contribution period ceases to be in full-time pensionable employment, and

(b)does not again enter such employment within one month and before becoming entitled to payment of retirement benefits,

the principal election ceases to have effect.

(2) Unless he receives a refund of contributions under regulation C10, he may by giving written notice to the Secretary of State within 3 months after the end of his employment elect to complete payment of the additional contributions (so that regulation D3(1)(b) will apply instead of regulation D3(2)) by making a lump sum payment under this paragraph.

(3) The amount of the payment is, subject to paragraph 3 of Schedule 3, the actuarial equivalent, when the employment ended, of the additional contributions that would have been payable for the remainder of the contribution period.

(4) If the payment is not made within 3 months after the end of the person’s employment the election ceases to have effect.

(5) A lump sum payable under this paragraph may be set off against any retirement lump sum to which the person is entitled.

PART IVMETHOD D

16.—(1) Where the person has not attained the age of 60 when he ceases to be in pensionable employment, the additional contributions consist of a lump sum which is the actuarial equivalent of the actual or prospective increase in benefits attributable to his becoming entitled to count the past period as reckonable service under regulation D3.

(2) In any other case, the additional contributions consist of a lump sum calculated in accordance with paragraph 9(1) but with the substitution as B of his average salary.

(3) A lump sum payable under this paragraph may be set off against any retirement lump sum to which the person is entitled.

Regulation C5

SCHEDULE 5ADDITIONAL CONTRIBUTIONS FOR PAST PERIOD UNDER EARLIER PROVISIONS

PART I

1.—(1) Subject to sub-paragraphs (2) to (5) and paragraphs 2 and 3, where immediately before 1st November 1988 contributions remained to be paid under regulation 26 of the 1976 Regulations (contributions payable by “Method 1”), they are to continue to be paid at the rate at which, and until the end of the period during which, they were then payable; and during any period of contribution for a current period under regulation C8 they are to be paid direct to the Secretary of State.

(2) Subject to sub-paragraphs (3) to (5), the person paying the contributions may at any time elect to pay them at a higher rate.

(3) The higher rate must be an integral percentage, not in any case exceeding 9, of his contributable salary.

(4) If he is paying other additional contributions under Part C, sub-paragraph (3) has effect with the substitution for “9” of the number obtained by deducting from 9 the percentage rate of those other contributions.

(5) An election under this paragraph—

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

(b)has effect from the next anniversary of the date from which the contributions became payable at the previous rate.

2.  Where an election has been made under paragraph 1 the period during which the contributions are to be paid is shortened to the same extent as it would have been if they had continued to be payable under regulation 26 of the 1976 Regulations.

3.  If before all the contributions payable under paragraph 1 or 2 have been paid the person ceases to be in full-time pensionable employment or dies in such employment, paragraphs 5 to 8 of Schedule 4 (election to pay a lump sum etc.) and paragraphs 1 and 2 of Schedule 7 (reckonable service) apply as if the contributions had been payable under regulation C3, but with the substitution for Table 2 in paragraph 5(5) of Schedule 4 of the Table below.

4.—(1) Subject to sub-paragraph (2) and paragraph 5, where immediately before 1st November 1988 contributions remained to be paid under regulation 28 of the 1976 Regulations (contributions payable by “Method 3”), they are to continue to be paid until the end of the period for which they were then payable (“the contribution period”).

(2) The contributions are to be paid only while the person—

(a)is in full-time pensionable employment, or

(b)is paying additional contributions for a current period under regulation C8.

5.—(1) If before the end of the contribution period the contributions payable under paragraph 4 cease to be payable otherwise than by reason of the person's—

(a)dying, or

(b)becoming incapacitated before attaining the age of 60,

he may by giving written notice to the Secretary of State within 3 months after the cessation elect to complete payment of the additional contributions by making a lump sum payment under this paragraph.

(2) Subject to paragraph 3 of Schedule 3, the amount of the payment is the total of the contributions that would have been payable for the remainder of the contribution period.

(3) A lump sum payable under this paragraph may, if he agrees, be set off against any retirement lump sum to which the person is entitled.

PART II

6.—(1) Subject to sub-paragraph (2), where immediately before 1st November 1988 contributions remained to be paid by virtue of regulation 29 of the 1976 Regulations (certain contributions first paid before 1973), they are to continue to be paid as if the 1976 Regulations had not been revoked.

(2) If the person paying the contributions elects to pay additional contributions for a past period under regulation C3, sub-paragraph (1) ceases to apply when he begins to pay those additional contributions.

Regulations C9, E26

SCHEDULE 6FAMILY BENEFITS

PART ICONTRIBUTIONS: MEN AND UNMARRIED WOMEN

1.—(1) In this Part—

“the Fund” means the Teachers' Family Benefits Fund established by regulation 15 of the 1966 Regulations and continued by regulation 15 of the 1970 Regulations;

“member” means a man who—

“non-member” means a man, other than a member, who—

(2) A member’s normal contributions are the contributions paid by him under regulation 27 of the 1966 Regulations or regulation 27 of the 1970 Regulations, and his normal service is the period in respect of which he paid them.

(3) A member’s additional contributions are any contributions paid by him under regulation 28 of the 1966 Regulations or under regulation 28 or 29 of the 1970 Regulations, and the additional period is the period in respect of which he elected to pay them.

(4) A member’s deemed normal service is two thirds of any service before 1st April 1972 in respect of which the full amount of normal contributions was held in the Fund immediately before that date.

(5) A member’s deemed additional service is—

(6) A member’s credited service is 165.6 per cent of the total of his deemed normal service and any deemed additional service.

(7) References in this Part to “Method I”, “Method II” and “Method III” are references to the Methods so designated in the 1966 Regulations and the 1970 Regulations.

2.  Paragraphs 3 and 4 have effect subject to paragraph 5.

3.—(1) Subject to sub-paragraph (3), a member who elected to pay additional contributions by Method I or Method II may elect to pay family benefit contributions in respect of all or part of a period not exceeding in length the difference between his credited service and the total of the additional period and his normal service.

(2) Subject to sub-paragraph (3), a member who elected to pay additional contributions by Method III may by an election under this paragraph—

(a)revoke the earlier election, or

(b)revoke the earlier election and elect to pay family benefit contributions in respect of the additional period, or part of it, or

(c)vary the earlier election so as to relate to part only of the additional period and elect to pay family benefit contributions in respect of the remaining part.

(3) The period in respect of which a member elects to pay family benefit contributions as mentioned in sub-paragraph (1) or (2) is not to exceed—

(4) A member may elect to pay family benefit contributions in respect of all or part of any period in respect of which he could have elected, but did not elect, to pay additional contributions.

4.  A non-member or an unmarried woman may elect to pay family benefit contributions in respect of the whole or a part of any reckonable service attributable to a period that ended before 1st April 1972.

5.—(1) A man who has become entitled to payment of retirement benefits may not make an election under paragraph 3 or 4.

(2) An election under paragraph 3 or 4 must—

(a)be made by giving written notice to the Secretary of State within the period specified in sub-paragraphs (3) to (7),

(b)specify the period in respect of which it is made, and

(c)specify the rate at which family benefit contributions are to be paid, which must comply with paragraph 14(2) and (3),

has effect from the date on which the notice is received by the Secretary of State, and, except as provided in paragraph 14(4), is irrevocable.

(3) Subject to sub-paragraph (4), a man may only make an election under paragraph 3 or 4 within 6 months after—

(a)his marriage while in pensionable employment, or

(b)his returning to pensionable employment after becoming married while not in such employment, or

(c)where sub-paragraph (4) had become applicable, his returning to pensionable employment after ceasing to be in such employment within 6 months after the previous return, or

(d)his nomination of a beneficiary under regulation E22,

whichever occurs first.

(4) An election under paragraph 3 or 4 may be made by—

(a)a member who was not continuously in pensionable employment for 6 months or more after 30th April 1974 and before 1st January 1977, or

(b)a non-member who was not continuously in pensionable employment for 6 months or more after 26th June 1973 and before 1st January 1977,

only within 6 months after returning to pensionable employment.

(5) A woman may only make an election under paragraph 4 within 6 months after nominating a beneficiary.

6.—(1) Where a person has made an election under paragraph 3(2) or (4) or paragraph 4 the period during which, subject to paragraph 14(7) to (10), the family benefit contributions are to be paid (“the payment period”) is to be ascertained from, or where the period in respect of which the election was made is not an exact number of years by extrapolation from, Table 2 below.

(2) Where a man has made an election under paragraph 3(1) the payment period is, subject to paragraph 14(7) to (10), 6—5ths of the period ascertained in accordance with sub-paragraph (1).

7.—(1) This paragraph applies where a member who elected to pay additional contributions by Method III has not revoked that election, and he—

(a)dies in pensionable employment leaving a widow or having nominated a beneficiary under regulation E22, or

(b)becomes qualified for retirement benefits while married or after nominating a beneficiary.

(2) Where this paragraph applies there is to be deducted from the appropriate terminal sum an amount of—

(3) The period is (D+E)−(F+G+H), where—

• D is the additional period in respect of which he elected to pay contributions by Method III, together with any additional period for which he elected to pay contributions by Method I or II,

• E is his normal service,

• F is his credited service,

• G is any period or periods for which he has elected to pay family benefit contributions under paragraph 3, and

• H is any additional period in respect of which he elected to pay contributions by Method I or II, less his credited service in respect of deemed additional service attributable to contributions so paid, and less any period for which he has elected under paragraph 3(1) to pay family benefit contributions.

8.—(1) Subject to sub-paragraphs (2) and (3), a member or non-member who—

(a)is not in pensionable employment and has become entitled to payment of retirement benefits, and

(b)would otherwise have been able to make an election under paragraph 3 or 4,

may make a corresponding election under this paragraph.

(2) An election under this paragraph—

(a)must be made by giving written notice to the Secretary of State within 6 months after the date on which the man became entitled to payment of retirement benefits,

(b)must specify the period in respect of which it is made, and

(c)is irrevocable.

(3) The family benefit contributions payable as a result of an election under this paragraph consist of a lump sum of—

• but where the election made corresponds to one that could have been made under paragraph 3(1), B is reduced by ⅙th.

  TABLE 4

  Age on date of election	Factor
  27 and under	2.90
  28—37	2.95
  38—42	3.00
  43—47	3.05
  48 and over	3.10

9.—(1) This paragraph applies where—

(a)a member or non-member dies before becoming entitled to payment of retirement benefits, and

(b)he has not made an election under paragraph 3 or 4, but could still have done so if he had not died, and

(c)he leaves a widow.

(2) Where this paragraph applies the widow may, subject to sub-paragraph (3), elect to pay family benefit contributions in respect of a period comprising all or part of so much of the deceased’s reckonable service as would otherwise not count in the calculation of family benefits.

(3) An election under this paragraph—

(a)must be made by giving written notice to the Secretary of State within 3 months after the death,

(b)must specify the period in respect of which it is made,

(c)must result in a total of not less than 5 years' reckonable service counting in the calculation of family benefits, and

(d)ceases to have effect if the family benefit contributions are not paid within 3 months after its date.

(4) The family benefit contributions payable as a result of an election under this paragraph consist of a lump sum which is the actuarial equivalent of the contributions that would have been payable by the deceased if—

(a)he had made an election under paragraph 3, or as the case may be paragraph 4, in respect of the same period, and

(b)notice of that election had been given on the day before his death and had specified as the rate at which family benefit contributions were to be paid the maximum allowed by paragraph 14(2) and (3).

PART IICONTRIBUTIONS: MARRIED WOMEN

10.—(1) Subject to sub-paragraph (3) and paragraph 11, a woman in relation to whom the election conditions are satisfied may elect to pay family benefit contributions in respect of the whole or a part of any reckonable service attributable to a period—

(a)that ended before 1st April 1972, or

(b)for which contributions have been paid under regulation C3, C5 or C8,

or attributable to the receipt before 6th April 1988 of a transfer value.

(2) Subject to sub-paragraph (3) and paragraph 11, a woman in relation to whom the election conditions are satisfied may elect to pay family benefit contributions in respect of the whole or a part of any reckonable service not falling within sub-paragraph (1) which is attributable to a period that—

(a)began after 31st March 1972 and ended before 6th April 1988, and

(b)would otherwise not count in calculating any pension becoming payable to her widower.

(3) Where an election is made in respect of a part only of any service, the part must consist of one or more whole years.

(4) The election conditions are that she is married, and either—

(a)is in pensionable employment, or

(b)ceased after 5th April 1988 and before 1st April 1989 to be in such employment and immediately became entitled to payment of retirement benefits.

11.—(1) An election under paragraph 10(1) or (2)—

(a)must be made by giving written notice to the Secretary of State within the period specified in sub-paragraphs (2) to (4),

(b)must specify the period in respect of which it is made,

(c)must state whether the contributions are to be paid by Method A (periodical payments) or by Method B (lump sum),

(d)if the contributions are to be paid by Method A, must specify the rate at which they are to be paid, which must comply with paragraph 14(2) and (3),

(e)has effect from the date on which the notice is received by the Secretary of State, and

(f)except as provided in paragraph 14(4), is irrevocable.

(2) The period within which an election may be made is one of 6 months beginning on the relevant date.

(3) Where paragraph 10(4)(b) applies, the relevant date is 1st October 1988; in any other case, subject to sub-paragraph (4), the relevant date is the first date after 30th September 1988 on which the election conditions were or are satisfied.

(4) If during the period of 6 months beginning on that first date the election conditions ceased or cease to be satisfied, the relevant date becomes the first date on which they were or are again satisfied.

(5) A woman who could make an election under paragraph 10(2) may only make one under paragraph 10(1) if, and at the same time as, she elects under paragraph 10(2) to pay family benefit contributions in respect of the whole of the reckonable service there mentioned.

(6) Where elections are made both under paragraph 10(1) and under paragraph 10(2) they must specify the same method of payment.

(7) Payment may not in any case be made by Method A if—

(a)the payment period would be less than one year, or

(b)the woman’s pensionable employment is part-time, or

(c)she is not in pensionable employment.

12.—(1) Subject to sub-paragraph (2), where payment is to be made by Method A the payment period is to be ascertained from, or where the period in respect of which the election was made is not an exact number of years by extrapolation from, Table 5 below.

(2) If the period ascertained in accordance with sub-paragraph (1) (“the Table period”) does not end with the last day of a month, the payment period ends with the last day of the month in which the Table period ends.

(3) Where payment is to be made by Method B the lump sum payable, which must be paid within 3 months after its amount is notified by the Secretary of State, is—

(a)for each year of service in respect of which an election was made under paragraph 10(1), 1.25 per cent, and

(b)for each year of service in respect of which an election was made under paragraph 10(2), 0.4 per cent,

of the appropriate amount, and pro rata for any period of less than a year.

(4) The appropriate amount is—

(a)where the woman was in pensionable employment when the election took effect, the annual rate of her contributable salary at that time, and

(b)in any other case, her average salary.

13.—(1) The widower of a woman who—

(a)died during the period beginning on 6th April 1988 and ending with 31st March 1989 without having made an election under paragraph 10, and

(b)either was in pensionable employment when she died or had ceased during that period to be in such employment,

may make a corresponding election under this paragraph.

(2) A married woman who—

(a)ceased to be in pensionable employment during the period mentioned in sub-paragraph (1), and

(b)on ceasing to be in such employment did not immediately become entitled to payment of retirement benefits,

may make a corresponding election under this paragraph if the conditions in sub-paragraph (3) are satisfied.

(3) The conditions are that—

(a)she did not again enter pensionable employment, and

(b)she has become entitled to payment of retirement benefits.

(4) Where a woman to whom sub-paragraphs (2) and (3) would otherwise have applied dies before becoming entitled to payment of retirement benefits, her widower may make a corresponding election under this paragraph.

(5) An election under this paragraph—

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

(b)must specify the period in respect of which it is made, and

(c)is to be treated as an election to make payment by Method B.

(6) The appropriate period is—

(a)where sub-paragraph (1) applies, the period beginning on 1st October 1988 and ending with 31st March 1989,

(b)where sub-paragraphs (2) and (3) apply, 6 months from the date on which she became entitled to payment of retirement benefits, and

(c)where sub-paragraph (4) applies, 3 months from the date of her death.

PART IIICONTRIBUTIONS: COMMON PROVISIONS

14.—(1) This paragraph applies where—

(a)an election is made under paragraph 3 or 4, or

(b)an election is made under paragraph 10 to pay family benefit contributions by Method A.

(2) The rate at which family benefit contributions are to be paid, and any higher rate substituted by an election under sub-paragraph (4), must be an integral percentage, not in any case exceeding 9, of the person’s contributable salary.

(3) In the case of a person who is paying additional contributions under regulation C3 or C5, or towards the provision of a pension otherwise than under these Regulations, sub-paragraph (2) has effect with the substitution for “9” of the number obtained by deducting from 9 the percentage rate of those contributions.

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

(5) An election under sub-paragraph (4) must be made by giving written notice to the Secretary of State, and has effect from the first day of the month following that in which the notice is received by him.

(6) 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.

(7) 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 C8—

(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.

(8) 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 so much of the period of part-time employment as does not count as reckonable service.

(9) If the original election is varied by one made under sub-paragraph (4) (“the further election”) a new payment period begins on the effective date of the further election; the length of the new payment period is—

(10) 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 C8, and

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

15.—(1) This paragraph—

(a)applies where family benefit contributions to which paragraph 14 applies cease to be payable before the end of the payment period, and

(b)has effect subject to paragraph 16.

(2) Where the person paying the contributions dies before attaining the age of 60, or (whether or not he later re-enters pensionable employment) becomes entitled to payment of retirement benefits by virtue of regulation E4(6) (incapacity)—

(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 his 60th birthday, the actuarial equivalent of the contributions that would have been payable during that part is to be deducted from the appropriate terminal sum.

(3) Where the person dies, or becomes entitled to payment of retirement benefits, after attaining the age of 60—

(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)there is to be deducted from the appropriate terminal sum an amount of—

(4) Where the person becomes entitled to payment of retirement benefits by virtue of regulation E4(7) (redundancy, etc.)—

(a)he may, by giving written notice to the Secretary of State within 3 months after the end of his 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 he 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

(c)if he does not so elect, contributions are to be treated as having been paid in respect of—

16.  Where—

(a)a deduction has fallen to be made under paragraph 15(2) or (3) or an election has been made under paragraph 15(4), 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 his widow or widower or a beneficiary nominated under regulation E22, may notify the Secretary of State in writing that the amount of the deduction made or lump sum payable is not to be increased.

PART IVFAMILY BENEFITS AND WAR SERVICE

17.—(1) In this Part “war service period” means a period which a person is entitled to count as reckonable service by virtue of regulation D5 or D6, and references to a person’s being notified are to his being notified of the Secretary of State’s determination of a claim made under regulation D5 or D6.

(2) This Part does not apply—

(a)if the person’s family benefit service does not include all periods counting as reckonable service otherwise than by virtue of regulation D5 or D6, or

(b)if his war service period counts by virtue of regulation D5, his qualifying service for the purposes of that regulation was fire service or police service or Northern Ireland fire service or police service, and he died before 1st April 1975, or

(c)if his war service period counts by virtue of regulation D5, his qualifying service was National Health service or service in health and personal social services in Northern Ireland, and he died before 17th July 1975, or

(d)if his war service period counts by virtue of regulation D5, his qualifying service was local government service or Northern Ireland local government service, and he died before 1st April 1978.

18.—(1) Subject to paragraph 21, a person who was notified before becoming entitled to payment of retirement benefits may, by giving written notice to the Secretary of State within 3 months after the relevant date, elect that his war service period is to be included in his family benefit service.

(2) The relevant date—

(a)if he applied for payment of retirement benefits before becoming entitled to payment of them and before being notified, is the date on which he was notified, and

(b)in any other case, is the date on which he applied for payment of retirement benefits.

19.  Subject to paragraph 21, a person who was notified after becoming entitled to payment of retirement benefits may, by giving written notice to the Secretary of State within 6 months after the date on which he was notified, elect that his war service period is to be included in his family benefit service.

20.—(1) If an election is made under paragraph 18 or 19 an additional contribution equal to the actuarial value of the war service period at 1st April 1978 becomes payable.

(2) In the case of an election under paragraph 18 the additional contribution is to be deducted from the appropriate terminal sum.

(3) In the case of an election under paragraph 19 the additional contribution may, without prejudice to any other method of recovery, be deducted from any death grant under regulation E19.

21.—(1) If the person—

(a)died before 15th February 1982, or

(b)has died before being notified, or

(c)has died after being notified and without having made an election under paragraph 18 or 19 but while still entitled to do so,

paragraphs 18 to 20 do not apply but 2rds of his war service period is included in his family benefit service.

(2) If the person died before 15th February 1982 this paragraph does not apply so as to reduce the amount of any family benefit.

Regulation D3

SCHEDULE 7UNCOMPLETED PAYMENT OF ADDITIONAL CONTRIBUTIONS

1.—(1) This paragraph applies where a person paying additional contributions for a past period in accordance with Part I of Schedule 4—

(a)ceases to be in full-time pensionable employment before the end of the period during which they were to be paid (“the contribution period”), and

(b)does not again enter such employment within one month and before becoming entitled to payment of retirement benefits,

and no lump sum payment is made under paragraph 5, 6 or 8 of Schedule 4.

(2) In this paragraph, subject to sub-paragraph (5), A is the past period and B is the contribution period.

(3) Subject to sub-paragraphs (4) and (5), the person is entitled to count as reckonable service—

(4) Subject to sub-paragraph (5), if when the pensionable employment ended he was incapacitated and had not attained the age of 60, he is entitled to count as reckonable service—

(a)where the contribution period would not have expired before he attained that age—

(b)in any other case, A.

(5) If he had elected under paragraph 4 of Schedule 4 to shorten the contribution period—

(a)he is in any case entitled to count as reckonable service—

(b)sub-paragraphs (3) and (4) have effect with the substitution—

(i)as A, of

(ii)as B, of the shortened contribution period,

(iii)as C, of so much of the shortened contribution period as had elapsed when the pensionable employment ended, and

(iv)as D, of the period from the effective date of the election to his 60th birthday.

2.—(1) This paragraph applies where a lump sum equal to the retirement lump sum that would otherwise have been receivable is paid under paragraph 6 or 8 of Schedule 4.

(2) Where this paragraph applies, the person is entitled to count as reckonable service—

(a)the period he would have been entitled to count under paragraph 1 if the lump sum had not been paid, and

(b)a period of

3.—(1) This paragraph applies where a person paying additional contributions for a past period in accordance with Part III of Schedule 4—

(a)ceases to be in full-time pensionable employment before the end of the contribution period, and

(b)does not again enter such employment within one month and before becoming entitled to payment of retirement benefits,

and no lump sum payment is made under paragraph 15 of Schedule 4.

(2) Subject to sub-paragraph (4), the person is entitled to count as reckonable service—

(3) This sub-paragraph applies where—

(a)when the pensionable employment ended the person was incapacitated and had not attained the age of 60, or

(b)he died while in the pensionable employment, or

(c)he dies within 3 months after the end of the pensionable employment without having made an election under paragraph 15 of Schedule 4.

(4) Where sub-paragraph (3) applies—

(a)if when the pensionable employment ended at least one year of the contribution period had elapsed, he is entitled to count the whole of the past period as reckonable service, and

(b)in any other case, he is not entitled to count any period as reckonable service and the additional contributions paid are to be refunded.

4.—(1) This paragraph applies where a person is continuing to pay contributions in accordance with paragraph 4 of Schedule 5 and—

(a)before the end of the contribution period they cease to be payable, and

(b)he does not make a lump sum payment under paragraph 5 of Schedule 5.

(2) Subject to sub-paragraph (3), the person is entitled to count as reckonable service—

(3) Where the contributions cease to be payable by reason of his—

(a)dying, or

(b)becoming incapacitated before attaining the age of 60,

he is entitled to count as reckonable service the whole of the period in respect of which the contributions were being paid.

5.—(1) This paragraph applies where a person who is, in accordance with paragraph 6(1) of Schedule 5, continuing to pay contributions which he began to pay before 1973—

(a)before attaining the age of 60 ceases to be in pensionable employment, and

(b)does not then become entitled to payment of retirement benefits under regulation E4(6) (incapacity) or to a short service incapacity grant under regulation E17.

(2) The person is entitled to count as reckonable service—

Regulations D5, D6

SCHEDULE 8WAR SERVICE

PART IQUALIFYING SERVICE

PART IIAGE FACTOR

Regulation E3

SCHEDULE 9PERIODS MAKING UP QUALIFYING PERIOD

PART I

1.  A period of pensionable employment.

2.  A period counting as reckonable service by virtue of regulation D3 (which applies where additional contributions have been paid for a past period) or regulation D4 (which applies where additional contributions have been paid for a current period).

3.  A period counting as admitted service or specified country service.

4.  A period of service or employment in respect of which a transfer value has been received.

PART II

5.  A period of employment in the British Islands in a university, a university college or a college of a university, or as a full-time teacher, if—

(a)contributions in respect of the employment were payable under the Federated System of Superannuation for Universities before 1st April 1975, and

(b)the person’s accrued rights in respect of the employment up to that date were then transferred to the Universities Superannuation Scheme.

6.  A period of employment as an inspector appointed under section 77(2) of the Education Act 1944(59).

7.  A period of employment as a civil servant, if paragraph 10 of Schedule 2 to the 1967 Regulations became applicable to the employment.

8.  A period of pensionable employment in an educational capacity by the British Broadcasting Corporation.

9.  A period of service as a member of the House of Commons which was reckonable service within the meaning of the Parliamentary and other Pensions Act 1972(60).

10.  A period of employment as a civil servant in England, Wales or Scotland not falling within paragraph 7.

11.  A period of pensionable employment as a civil servant in Northern Ireland, the Isle of Man or the Channel Islands.

12.  A period of employment which was contributory service for the purposes of the Overseas Service Pensions (Scheme and Fund) Regulations 1966(61).

13.  A period of employment as a full-time teacher, or in a capacity involving to a substantial extent the control or supervision of teachers, or as a civil servant, in a country or territory which was at any time a country specified in section 1(3) of the British Nationality Act 1948(62) or a colony within the meaning of that Act, if—

(a)the employment was pensionable under any law for the time being in force in the country or territory, or

(b)the employer was the government of, or a public authority in, the country or territory and contributions in respect of the employment were payable to a provident fund.

14.  A period of pensionable employment in a university, a university college or a college of a university in such a country or territory as is mentioned in paragraph 13.

15.  A period of employment in the Republic of South Africa or in the mandated territory of South West Africa, if—

(a)had the employment been in such a country or territory as is mentioned in paragraph 13 it would have fallen within paragraph 13 or 14, and

(b)at some time during the 3 months ending with 30th May 1962 the person was employed in the Republic or in the mandated territory in service which was approved external service within the meaning of section 13 of the Act of 1925(63).

16.  A period of employment as a full-time teacher while holding a commission in the naval, military or air forces of the Crown or in any of the women’s services that were mentioned in Schedule 4 to the Superannuation Act 1965(64), if retired pay is being earned in respect of the employment.

17.  A period of employment in respect of which contributions were payable to the Social Workers' Pension Fund.

18.  A period of employment in respect of which contributions were payable under the Federated System of Superannuation for Universities not falling within paragraph 5.

19.  A period of employment by the British Council in respect of which contributions were payable under the British Council Overseas Service Pension Scheme.

20.  A period of employment as an officer of an employing authority within the meaning of the National Health Service (Superannuation) Regulations 1980(65).

21.  A period of employment in respect of which contributions were payable under the Federated Superannuation Scheme for Nurses and Hospital Officers, if—

(a)either the National Health Service (Superannuation) Regulations 1980 or the National Health Service (Superannuation) (Scotland) Regulations 1980(66) applied to the employment, or

(b)the employer was a scheduled body or a former local authority or a local Act authority, within the meaning of the Local Government Superannuation Regulations 1986(67) or the Local Government Superannuation (Scotland) Regulations 1987(68), or

(c)there were applicable to the employment any regulations or scheme made under section 2 or 5A of the Local Government (Superannuation) Act (Northern Ireland) 1950(69), under section 61 of the Health Services Act (Northern Ireland) 1948(70) or under article 12 or 14 of the Superannuation (Northern Ireland) Order 1972(71), or

(d)the employment was in a civil service in the British Islands.

22.  A period of employment to which rules made under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948(72) (pensions of persons transferring to different employment) applied, if the person had previously been in pensionable employment.

23.  A period of pensionable employment by an association of teachers.

24.  A period of pensionable service as a clerk in holy orders or as a regular minister of any religious denomination.

Regulations E10, H1, H2

SCHEDULE 10MODIFIED APPLICATION IN CERTAIN CASES

PART INATIONAL INSURANCE MODIFICATION OF PENSIONS

1.  In this Part, unless the context otherwise requires—

“the Act” means the National Insurance Act 1965(73);

“non-participating employment” has the meaning assigned to it by section 56(1) of the Act;

“part-time teacher” means a person who has elected under regulation B2 that his part-time employment is to be pensionable employment;

“retired teacher” means a person who has ceased to be in pensionable employment and has attained state pensionable age.

2.—(1) A retirement pension payable in the case of a retired teacher who—

(a)by virtue of the Modification Regulations or of interchange rules was subject to the modifications of the Acts of 1918 to 1956 made by those Regulations and applicable to new entrants within the meaning of those Regulations, or

(b)not being an existing teacher within the meaning of the Modification Regulations or a teacher in whose case by virtue of interchange rules those Regulations applied as they applied in the case of such an existing teacher, entered pensionable employment after 31st March 1967 and before 1st April 1980,

is reduced by an amount calculated by multiplying £1.70 by his reckonable service on or after 1st July 1948 but before 1st April 1980, expressed in years and any fraction of a year.

(2) In the case of a retired teacher—

(a)who was last in pensionable employment before 1st April 1980, and

(b)whose retirement pension is one to which he became entitled by virtue of regulation E4(6),

any additional period of reckonable service taken into account under regulation E8(2) is deemed for the purposes of sub-paragraph (1) to be such service as is there mentioned.

(3) Where the retired teacher before 1st April 1980 elected for the purposes of regulation 24 of the 1976 Regulations to purchase added years, those added years are deemed for the purposes of sub-paragraph (1) to be such reckonable service as is there mentioned.

(4) Sub-paragraph (1) applies not only in the case of such a retired teacher as is there mentioned but also in the case of a retired teacher to whom paragraph 2(1) of Schedule 9 to the 1976 Regulations did not apply if the Secretary of State is satisfied that the contributions paid by him before 1st April 1980 were modified on the assumption that the said paragraph 2(1) did apply in his case.

3.—(1) This paragraph applies to a retired teacher who—

(a)by virtue of the Modification Regulations or of interchange rules, was subject to the modifications of the Acts of 1918 to 1956 made by those Regulations and applicable to existing teachers within the meaning of those Regulations, or

(b)before 1st April 1980 paid contributions at a reduced rate by virtue of an election under paragraph 2(1)(c) of Schedule 9 to the 1976 Regulations.

(2) A retirement pension payable to such a retired teacher is reduced in respect of his reckonable service after the relevant date but before 1st April 1980 by the amount calculated by multiplying by such reckonable service, expressed in years and a fraction of a year, the sum specified in column 2 (or column 3 in the case of a woman) of the Table in the Appendix to this Part opposite his age at the date of modification for the purposes of the Modification Regulations.

(3) The relevant date for the purposes of sub-paragraph (2) is—

(a)in relation to a retired teacher to whom this paragraph applies by virtue of sub-paragraph (1)(a), the date which was in relation to him the date of modification for the purposes of the Modification Regulations, and

(b)in relation to a retired teacher to whom this paragraph applies by virtue of sub-paragraph (1)(b), the first day of the month next following that in which the election mentioned in that sub-paragraph was made.

(4) In the case of a retired teacher—

(a)who was last in pensionable employment before 1st April 1980, and

(b)whose retirement pension is one to which he became entitled by virtue of regulation E4(6),

any additional period of reckonable service taken into account under regulation E8(2) is deemed for the purposes of sub-paragraph (2) to be such service as is there mentioned.

4.  For the purposes of paragraphs 2 and 3 the reckonable service of a retired teacher is his effective reckonable service.

5.  If, in calculating the amount of a retirement pension, there is taken into account any period of employment after 2nd April 1961 and before 6th April 1975 which was not non-participating employment the pension is, except as provided in paragraphs 7 and 8, reduced, for each year of such period, and proportionately for part of a year by the appropriate amount specified in the Table below.

6.  If, in calculating the amount of a retirement pension, there is taken into account any period of employment after 2nd April 1961 in respect of which a payment in lieu of contributions has been made the retirement pension is, except as provided in paragraphs 7 and 8, reduced—

(a)by £2.31 in the case of a man and by £1.92 in the case of a woman for each year, and proportionately for part of a year, of any period from 3rd April 1961 to 5th January 1964, and

(b)by £3.48 in the case of a man and by £2.90 in the case of a woman for each year, and proportionately for part of a year, of any period from 6th January 1964 to 5th April 1975.

7.  Where—

(a)a period of employment of a retired teacher which was not non-participating employment or in respect of which a payment in lieu of contributions had been made is treated as reckonable service by virtue of interchange provisions, and

(b)the Secretary of State is informed of the amount by which his pension under the pension scheme applicable to him before interchange provisions applied to him would have been reduced in respect of that period by reason of graduated retirement benefit payable under the Act or of the method of calculating such reduction,

the retirement pension in respect of that period is reduced by that amount or by an amount calculated in accordance with that method, as the case may be, and no reduction is to be made under paragraph 5 or 6 in respect of that period.

8.  No reduction in the amount of a retirement pension is to be made under paragraph 5 or 6 in respect of any period which is reckonable service by virtue of regulation D3 or D4 or of regulations under section 1 of the Superannuation (Miscellaneous Provisions) Act 1948(74) (employment in national service).

9.  A retirement pension payable to a part-time teacher, so far as it is attributable to any part-time service which was non-participating employment within the meaning of the Act (exclusive of any period of such employment in respect of which a payment in lieu of contributions has been made), is not to be less than the amount required to constitute the benefits in respect of that service equivalent pension benefits.

10.—(1) An annual pension in respect of any such service as is mentioned in paragraph 9 is to be paid to a part-time teacher to whom no retirement pension is payable under regulation E4 if he is in pensionable employment on attaining state pensionable age.

(2) A pension under this paragraph is of the amount required to constitute the benefits in respect of the service equivalent pension benefits and is payable from the day following that on which he ceases to be in pensionable employment or in employment which would, if he had not attained the age of 70, be pensionable employment.

(3) Regulation E31(2) (application for payment) applies in relation to a pension payable under this paragraph.

11.  A part-time teacher to whom paragraph 10 applies is entitled to be paid a sum equal to the balance of his contributions computed as at the date of repayment in accordance with regulation C11 reduced by half the actuarial value of the pension payable to him under paragraph 10.

12.—(1) Any person who was employed in non-participating employment and attains state pensionable age is to be paid by way of equivalent pension benefits a sum equal to the actuarial value of a retirement pension at the following rate for each year of reckonable service—

but excluding any period of such employment in respect of which—

(a)a payment in lieu of contributions has been made, or

(b)any retirement benefits are payable under regulation E4.

(2) If on attaining state pensionable age he is still in pensionable employment payment is to be deferred until he ceases to be in pensionable employment, or in employment which would be pensionable employment if he had not attained the age of 70.

(3) Regulation E31(2) (application for payment) applies in relation to a sum payable under this paragraph.

APPENDIX

PART IIEMPLOYMENT AT REDUCED SALARY

13.  Subject to paragraphs 14 to 19, these Regulations apply as if the person had been one person in relation to pensionable employment (“the earlier employment”) up to the end of his employment at the previous rate and a separate person in relation to pensionable employment (“new employment”) from the start of his employment at the reduced rate, and accordingly apply separately in relation to each of those employments.

14.  For the purposes of regulation E3 (qualification for retirement benefits), periods counting towards a qualifying period in relation to one of the employments count also in relation to the other.

15.—(1) For the purposes of regulation E30(2) (limits on reckonable service for calculating benefits), periods counting as reckonable service in relation to one of the employments count also in relation to the other.

(2) Any period excluded by regulation E30(2) is excluded in relation to new employment only.

16.—(1) A period for which the person has, before the first day of new employment, elected to pay additional contributions under regulation C3 does not count as reckonable service in relation to new employment but does, subject to sub-paragraph (2), count in relation to the earlier employment.

(2) An election to pay such contributions by Method A or C which was made less than 12 months before the first day of new employment ceases to have effect on that day, and any contributions paid in pursuance of it are to be refunded.

(3) If an election to pay such contributions is made on or after the first day of new employment—

(a)the period to which it relates counts as reckonable service in relation to new employment but does not count in relation to the earlier employment, and

(b)if the contributions are to be paid by Method B paragraph 10 of Schedule 4 (calculation of lump sum where salary reduced) does not apply.

17.—(1) This paragraph applies if the person becomes entitled to payment of retirement benefits by virtue of regulation E4(6) (incapacity).

(2) For the purposes of regulation E8 (enhancement) the appropriate period is to be calculated by reference to the aggregate of the period counting as reckonable service in relation to the earlier employment and the period so counting in relation to new employment, and—

(a)if he becomes entitled to payment of the benefits within 3 years after the start of new employment, the period counting as reckonable service in relation to the earlier employment, or

(b)in any other case, the period so counting in relation to new employment,

is increased by the appropriate period so calculated.

18.—(1) For the purpose of calculating any death grant under regulation E19 or supplementary death grant under regulation E20 that may become payable in respect of the person—

(a)the average salary mentioned in regulations E19(2) and E20(2)—

(i)if the grant becomes payable within 3 years after the start of new employment, is his average salary in respect of the earlier employment, and

(ii)in any other case, is his average salary in respect of new employment,

(b)the retirement lump sum mentioned in regulation E19(2) is the aggregate of the lump sums that would have become payable as there mentioned in respect of each of the employments, enhanced in accordance with paragraph 17, and

(c)the retirement pension mentioned in E20(3) is the aggregate of the retirement pensions paid in respect of each of the employments.

(2) Only one of either kind of grant is to be paid.

19.  Regulation E25(10) does not have effect so as to preclude the payment of a children’s pension in respect of each of the employments.

PART IIIPOLICY SCHEMES

20.  In this Part “policy scheme service” has the meaning that was given in regulation 3(2) of the Teachers' Superannuation (Policy Schemes) Regulations 1979(75) (“the 1979 Regulations”).

21.  For the purposes of regulation C3(1) (case in which additional contributions may be paid for past period), if the person’s policy scheme service began before he first became employed in pensionable employment he is to be treated as having first become so employed when his policy scheme service began.

22.  For the purposes of regulation E3 (qualification for retirement benefits), paragraph 1 of Schedule 9 has effect as if his policy scheme service had been pensionable employment beginning after 5th April 1988.

23.  For the purposes of regulation E6 (amount of retirement lump sum), his policy scheme service is to be treated as reckonable service after 30th September 1956.

24.  Only 9/10ths of his policy scheme service is effective reckonable service.

25.—(1) For the purposes of paragraphs 1 and 2 of Schedule 3 (maximum length of additional periods), if paragraph 1(2)(a) of Schedule 3 (continuous pensionable employment) applies his adjusted age—

(a)if when he made the election under regulation 4 of the 1979 Regulations he was subject to the policy scheme, is A − C, and

(b)in any other case, is B − C,

• where—

• A is his age when the election took effect,

• B is his age when pensionable employment in continuation of his policy scheme service began, and

• C is 9/10ths of his policy scheme service.

(2) If paragraph 1(2)(b) of Schedule 3 applies, his adjusted age for the purposes mentioned in sub-paragraph (1) above is D − (E + F), where—

• D is his age at the start of his most recent pensionable employment,

• E is the total time spent by him in pensionable employment, and

• F is 9/10ths of his policy scheme service.

26.—(1) For the purposes of paragraph 2 (National Insurance modifications), his policy scheme service is to be treated as service after the beginning of July 1948.

(2) No reduction in the amount of his retirement pension is to be made under paragraph 5 or 6 in respect of the period of his policy scheme service.

PART IVADMITTED SERVICE

27.—(1) In the case of a person with admitted service who has not been in pensionable employment, regulation C10(1) (right to repayment of balance of contributions) has effect with the substitution—

(a)for “pensionable employment” of “admitted service”, and

(b)for “retirement benefits” of the benefits described in paragraph 28(1).

(2) In the case of any person with admitted service, regulation C11 (calculation of balance of contributions) has effect as if the amounts specified in regulation C11(3) included the contributions paid by him in respect of that service.

28.—(1) Subject to sub-paragraphs (2) to (5) and paragraph 30, an annual pension and a lump sum (“admitted service benefits”) are payable in respect of admitted service.

(2) A person who has not been in pensionable employment is qualified for admitted service benefits if his admitted service amounts to at least 5 years.

(3) Any other person with admitted service is qualified for admitted service benefits if he is qualified for retirement benefits.

(4) A person who has not been in pensionable employment and is qualified for admitted service benefits becomes entitled to payment of them on his 60th birthday.

(5) Any other person qualified for admitted service benefits becomes entitled to payment of them when he becomes entitled to payment of retirement benefits.

29.—(1) The rate of the annual pension is—

(2) The amount of the lump sum is—

30.  Regulations E18 (deferment, etc.), E31 (application for payment, etc.) and E32 (benefits not assignable) apply in relation to admitted service benefits as they apply in relation to retirement benefits.

PART VSPECIFIED COUNTRY SERVICE

31.  Regulations E4 (entitlement to payment of retirement benefits), E6 (amount of retirement lump sum), E13(3) (pension becoming payable again after cessation on ceasing to be incapacitated), E15 (retirement benefits on cessation of further employment) and E16 (short service annuity) have effect with the substitution for references (whether direct or not) to the age of 60 of references to the age obtained by deducting from 60 years a period of 3 months in respect of each complete year of up to 20 years of specified country service.

32.  Subject to paragraph 33—

(a)for the purpose of calculating retirement benefits, and grants under regulations E17, E19 and E20, and

(b)for the purposes of regulation E30(2) (restriction of effective reckonable service to 45 years, etc.),

specified country service counts as reckonable service at 1.5 times its actual length.

33.  For the purposes of regulation E8 (enhancement of retirement benefits in case of incapacity), in calculating relevant service specified country service counts as reckonable service at its actual length.

PART VISERVICE BEFORE 1ST APRIL 1945

34.—(1) The persons to whom this Part applies are persons in pensionable employment who—

(a)are employed by, or in a school maintained by, a local education authority, and

(b)have not become entitled to payment of retirement benefits.

(2) The service to which this Part applies is full-time service before 1st April 1945—

(a)in or in connection with a public elementary school as a supplementary teacher, additional teacher, additional woman teacher or additional female teacher, or

(b)in the employment of a former authority within the meaning of the Education Act 1944(76) in an establishment for providing social or physical training, if the employment was in a capacity in which the person’s principal duty was to provide or supervise the provision of such training and the service was not recognised or contributory service, or

(c)in the employment of such a former authority, if—

(i)the service was of the same kind as service approved by the Minister of Education for the purposes of section 2(1) of the Act of 1945(77), and

(ii)before being so employed the person had been employed for not less than 3 years, whether in or outside England and Wales, as a teacher in a capacity of a kind approved by the Minister of Education under paragraph 3(b) of Schedule 1 to the Act of 1945, or

(d)as a teacher employed by a local authority in the provision under section 30(cc) of the Mental Deficiency Act 1913(78) of suitable training or occupation for defectives under supervision or guardianship or sent to certified institutions, if the service—

(i)was in the capacity of a certificated or uncertificated teacher, and

(ii)was approved for the purposes of previous provisions on the recommendation of the Board of Control.

35.—(1) If a person to whom this Part applies—

(a)by giving written notice to the Secretary of State so elects, and

(b)pays the required contribution,

these Regulations have effect in relation to him as if any specified period during which he was in service to which this Part applies had been a period of pensionable employment.

(2) The required contribution is—

(a)the total of the contributions that would have been payable for the specified period under the Act of 1922(79) or under section 9(1)(a) of the Act of 1925(80) if the service had been recognised or contributory service, and

(b)interest on that total at 4 per cent per annum, compounded with yearly rests, from 1st April 1947 to the date of payment.

Regulation E11

SCHEDULE 11ALLOCATION OF PART OF RETIREMENT PENSION

PART ICONTENTS OF DECLARATION

1.—(1) A declaration is to specify—

(a)the part of the retirement pension allocated, and

(b)which alternative benefit it is to provide.

(2) The part allocated, which is to be expressed as a whole number of pounds, must not exceed the lower of—

(a)1/3rd of the annual rate of the retirement pension, disregarding any National Insurance modification under Schedule 10, and

(b)the amount that would result in the reduction of that rate to less than the rate of, as the case may be, the annuity mentioned in regulation E11(2)(a) or the subsequent annuity mentioned in regulation E11(2)(b),

and must not be such as to affect any equivalent pension benefits.

PART IIPROCEDURE

2.—(1) A person who, with a view to making an allocation, gives the Secretary of State at least 4 months' notice of his intended retirement is referred to in this Schedule as a “retiring employee”.

(2) For the purposes of this Schedule a person’s relevant birthday is—

(a)where retirement benefits become payable by virtue of regulation E4(7) (redundancy, etc.), his 50th, and

(b)in any other case, his 60th.

3.—(1) Before delivering a declaration a person must have given the Secretary of State written notice of his intention to make an allocation.

(2) The notice is to be given—

(a)in the case of a retiring employee, no later than his application for payment of retirement benefits, and

(b)in any other case, no earlier than 4 months before the later of—

(i)the date on which the person becomes qualified for retirement benefits, and

(ii)his relevant birthday.

4.—(1) Before delivering a declaration a person must also, at his own expense—

(a)have satisfied the Secretary of State as to his health, and

(b)have provided the Secretary of State with such information about the person for whose benefit the allocation is to be made, and verified it in such manner, as the Secretary of State may reasonably require.

(2) In order to satisfy the Secretary of State as to his health the person must have been examined by a medical practitioner nominated by the Secretary of State; he may if he wishes be examined by a second such practitioner if the Secretary of State is not satisfied as a result of the first examination.

5.—(1) On receiving a notice under paragraph 3 the Secretary of State is to notify the person in writing of—

(a)the amount or estimated amount of his retirement pension,

(b)the name and address of the nominated medical practitioner, and

(c)the time within which any declaration is to be delivered.

(2) A declaration is to be delivered—

(a)if the person is resident outside the United Kingdom, within 4 months, and

(b)in any other case, within 3 months,

after receipt of the Secretary of State’s notification under sub-paragraph (1).

(3) If he is satisfied as to the person’s health, and with the information provided in accordance with paragraph 4(1)(b), the Secretary of State is to send him a suitable form on which to make the declaration.

(4) On the delivery to him of a declaration, the Secretary of State is to provide the person making it with written particulars of the alternative benefit.

6.  A declaration, and any notice or other communication under this Part, may be sent by post.

PART IIIOTHER MATTERS

7.—(1) Subject to sub-paragraphs (2) to (6), a declaration takes effect as such on the day on which it is delivered to the Secretary of State.

(2) A declaration cannot take effect before the person’s relevant birthday.

(3) A declaration has no effect if either the person making it or the person for whose benefit the allocation was to be made dies before the material time.

(4) In the case of a declaration made by a retiring employee the material time is the later of—

(a)the day after that on which the declaration is delivered, and

(b)the day before that on which he becomes entitled to payment of retirement benefits.

(5) In any other case the material time is the day on which the declaration is delivered.

(6) A declaration may be revoked or varied by a further declaration delivered—

(a)in the case of a retiring employee, before the day on which he becomes entitled to payment of retirement benefits, and

(b)in any other case, before the day on which the original declaration is delivered.

8.—(1) An allocation takes effect on the day on which the person making it becomes entitled to payment of retirement benefits.

(2) For the purposes of sub-paragraph (1), if a person other than a retiring employee dies in pensionable employment after his declaration has taken effect, he is to be taken to have become entitled to payment of retirement benefits on the date of his death.

9.—(1) If notice of intention has been given under paragraph 3 and by the later of—

(a)the date of the person’s becoming entitled to retirement benefits, and

(b)his relevant birthday,

no declaration has been delivered, then, from the later of those dates until he has either delivered a declaration or failed to satisfy the Secretary of State as mentioned in paragraph 5(3), 1/3rd of his retirement pension may be withheld.

(2) Any resulting underpayment or overpayment is to be adjusted in due course.

10.—(1) If after a retiring employee has delivered a declaration the rate of his retirement pension is increased, otherwise than under the Pensions (Increase) Act 1971(81), the part allocated is correspondingly increased.

(2) Sub-paragraph (1) applies even if the increase in the retirement pension takes effect from a date earlier than the date of delivery of the declaration.

(3) The corresponding increase in the part allocated, which is to be rounded down to the nearest pound, takes effect from the same date as the increase in the retirement pension.

(4) If the alternative benefit is the one described in regulation E11(2)(b) (annuity for declarant followed by annuity for surviving spouse), the resulting increase in the first of those annuities takes effect from the same date as the increase in the retirement pension.

11.  If after a person has delivered a declaration the rate of his retirement pension is reduced, the declaration continues to have effect but the part allocated is reduced to any extent necessary to secure that the restrictions in paragraph 1(2) are still complied with.

Regulations F3, F5

SCHEDULE 12TRANSFER VALUES

PART IOUTWARD TRANSFERS

1.  A transfer value is calculated on the cash equivalent basis if it is calculated in the manner prescribed under paragraph 14 of Schedule 1A to the Pensions Act(82) for the calculation of cash equivalents.

2.  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 an approved superannuation 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.

3.  Where—

(a)a transfer value is payable to the scheme managers of an approved superannuation scheme which is not a club scheme, and

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

(c)no right to a cash equivalent was acquired,

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 his service before 1st September 1988, and

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

4.  Where—

(a)a transfer value is payable to the scheme managers of an approved superannuation scheme which is not a club scheme, and

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

(c)a right to a cash equivalent was acquired,

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

• D is the transfer value that would have been payable if paragraph 3 had applied, and

• E is the amount of the cash equivalent.

5.  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 with 5th April 1988.

6.—(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 3 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 cent per annum, 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 cent 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 cent 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 cent per annum, compounded with yearly rests, for each complete period of a year after the end of the employment and before the date of payment.

7.  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 IIADDITIONAL TRANSFER VALUES IN RESPECT OF WAR SERVICE

8.  The additional transfer value payable in respect of a person under regulation F2 is—

9.—(1) The pensionable emoluments of a person who on 1st April 1978 was in service in which he was subject to the qualifying public service scheme are the annual value of so much of his emoluments as was then pensionable under the scheme.

(2) In any other case, a person’s pensionable emoluments are E+F, where—

• E is the annual value of so much of his emoluments as was pensionable under the scheme when he ceased to be in service or employment in which he was subject to it, and

• F is the annual amount (if any) by which, by 1st April 1978, E would have been increased if it had been the annual rate of an official pension, within the meaning of the Pensions (Increase) Act 1971(83), beginning, and first qualifying for increases under that Act, when he ceased to be in such service or employment.

PART IIIINWARD TRANSFERS

10.  If the employment in which the person was subject to the previous scheme was comparable British service, he is entitled to count as reckonable service the period of service certified by the scheme managers as having stood to his credit under the scheme when he ceased to be subject to it.

11.—(1) If—

(a)the previous scheme is a club scheme service under which is not comparable British service, or

(b)the previous scheme is a personal pension scheme or an approved superannuation scheme which is not a club scheme and the person has entered pensionable employment after 31st December 1985,

he is entitled to count as reckonable service the period specified in sub-paragraph (2).

(2) The period is one equal to the period of reckonable service that would enable the Secretary of State to pay a transfer value, calculated on the cash equivalent basis, of the same amount as the one accepted.

(3) In calculating the period specified in sub-paragraph (2)—

(a)if sub-paragraph (1)(a) applies and the request for the transfer value to be accepted was made within 12 months after the date on which the person entered pensionable employment, the calculation is to be made by reference to the age and salary notified by the scheme managers of the previous scheme as those by reference to which the transfer value accepted was calculated,

(b)if sub-paragraph (1)(b) applies and the transfer value was received within 12 months after the date on which the person entered pensionable employment, the calculation is to be made by reference to his age, and the annual rate of his contributable salary, on that date,

(c)in any other case, the calculation is to be made by reference to his age, and the annual rate of his contributable salary, on the date on which the transfer value was received,

(d)if sub-paragraph (1)(a) applies any sum representing interest that is included in the transfer value is not to be taken into account, and

(e)if sub-paragraph (1)(b) applies any such sum is to be taken into account.

12.  If—

(a)the previous scheme is an approved superannuation scheme which is not a club scheme, and

(b)the person entered pensionable employment before 1st January 1986,

he is entitled to count as reckonable service a period calculated as if Schedule 7 to the 1976 Regulations, as in force on 31st August 1988, had continued in force.

Regulations G1, G2

SCHEDULE 13TEACHERS' SUPERANNUATION ACCOUNT

PART ITRANSITIONAL

1.  The account that was required by regulation 85 of the 1976 Regulations to be kept by the Secretary of State is to be made up to 1st November 1988 as if the period beginning on 1st April 1988 and ending with 31st October 1988 had been an accounting period within the meaning of Part V of the 1976 Regulations.

2.—(1) References in regulations G1 to G3 and in this Schedule to a financial year are to be construed as including references to the period beginning on 1st November 1988 and ending with 31st March 1989.

(2) In relation to that period—

(a)the reference in regulation G2(4)(a) to the closing balance in the account for the preceding financial year is to be construed as a reference to the closing balance in the account mentioned in paragraph 1 for the period mentioned in that paragraph, and

(b)the reference in paragraph 6(2) to 1st October in the financial year is to be construed as a reference to 1st October 1988.

3.—(1) For the purposes of Part G—

(a)the inquiry which was required by regulation 91(1) of the 1976 Regulations to be made with respect to the account mentioned in paragraph 1 above at the end of the accounting period ending with 31st March 1986 is to be treated as having been an inquiry required by regulation G4(1), and

(b)the report on that inquiry is to be treated as a report made in compliance with regulation G4(2),

and accordingly for the purposes of regulation G5 (employers' contributions) the first relevant period is the period beginning on 1st April next following the date of that report.

(2) During the period beginning on 1st November 1988 and ending immediately before the start of the first relevant period regulation G5 applies as if that period had been a relevant period and the required percentage had been 9.45.

PART II

FORM OF ACCOUNT

PART IIINOTIONAL INTEREST

5.—(1) Subject to sub-paragraph (2) and paragraph 7(3), the notional interest to be credited to the account under regulation G2(4)(e) is the interest that would have accrued for the financial year—

(a)from the notional investment that was referred to in regulation 88(1)(c) of the 1976 Regulations (investment referable to accumulated balance of revenue over expenditure as at 31st March 1971), and

(b)from the notional investments of annual balances that were referred to in regulation 88(1)(b) of the 1976 Regulations (balances for financial years ending on or after 31st March 1972), and

(c)in any financial year beginning after 31st March 1989, from the assumed investments at the end of preceding financial years described in paragraph 6(4),

and half the interest that would have accrued for the financial year from the assumed investment described in paragraph 6(3).

(2) There is to be deducted from the gross amount of the notional interest an amount equal to the income tax that would have been payable if the notional and assumed investments had been held for the purposes of a retirement benefits scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988(84) which was an exempt approved scheme within the meaning of that Chapter and which provided benefits comparable to those provided under these Regulations.

6.—(1) In this paragraph “invested” means invested in one or more designated securities at the mean price.

(2) A designated security is a government security designated for the financial year by the Secretary of State after consulting the Government Actuary, and the mean price is half way between the highest and lowest prices shown for it in the Official Daily List of The Stock Exchange for 1st October in the financial year or, if the Exchange was not then open, for the last day on which it had been open.

(3) It is to be assumed that A+B−C was invested at the beginning of the financial year—

• A being the total of the receipts credited for the financial year in accordance with regulation G2(1) and (4)(b) to (d),

• B being the notional interest described in paragraph 5(1)(a), (b) and (c), and

• C being the total of the payments debited for the financial year in accordance with regulation G3.

(4) It is to be assumed that A+B+D−C is invested at the end of the financial year in the same designated security or securities, A, B and C being the same as in sub-paragraph (3) and D being half the interest that would have accrued for the financial year from the assumed investment described in that sub-paragraph.

7.—(1) Any security which is the subject of a notional or assumed investment mentioned in paragraph 5(1)(a), (b) or (c) is to be treated as having been redeemed on the last date on which it could have been redeemed in accordance with the terms on which it was issued (“the redemption date”).

(2) The amount originally treated as invested in the security is to be assumed to have been re-invested on the redemption date in a government security designated by the Secretary of State after consulting the Government Actuary.

(3) The notional interest calculated in accordance with paragraph 5 is to be increased by any excess of F over E, or as the case may be reduced by any excess of E over F, where—

• E is the amount originally treated as invested in the security, and

• F is the amount notionally received on its redemption after deducting any capital gains tax that would have been payable if the investment had been held for the purposes of a retirement benefits scheme of the kind mentioned in paragraph 5(2).

Regulation H8

SCHEDULE 14REVOCATIONS, SAVINGS AND TRANSITIONAL PROVISIONS

PART IREVOCATIONS

PART IISAVINGS

1.  The revocation by these Regulations of a transitional provision relating to the coming into force of a provision re-enacted in these Regulations does not affect the operation of that transitional provision, so far as it remains capable of having effect, in relation to the provision as re-enacted.

2.—(1) The revocation by these Regulations of a provision previously revoked subject to savings does not affect the previous operation of those savings.

(2) The revocation by these Regulations of a saving made on the previous revocation of a provision does not affect the operation of the saving in so far as it remains capable of having effect.

3.  Any document made, served or issued after 31st October 1988 which includes a reference to a provision revoked by these Regulations is to be construed, except so far as a contrary intention appears, as referring or, as the context may require, including a reference to the corresponding provision of these Regulations.

PART IIITRANSITIONAL PROVISIONS

1.—(1) The re-enactment of provisions in these Regulations, and the consequent revocation of those provisions by these Regulations, does not affect the continuity of the law.

(2) The general rule is that the provisions of these Regulations apply, in accordance with sub-paragraph (1), to matters arising before the commencement of these Regulations as to matters arising after that commencement.

(3) The general rule has effect subject to any express provision to the contrary, and to paragraph 2 (protected benefits).

(4) The general rule does not mean that the provisions of these Regulations apply to cases to which the corresponding revoked provisions did not apply by virtue of transitional provision made in connection with the commencement of the revoked provisions (such transitional provisions are saved by paragraph 1 of Part II).

2.—(1) Where—

(a)a provision of these Regulations (“the new provision”) re-enacts with any modification a provision revoked by these Regulations (“the former provision”), and

(b)the effect of the general rule is that a person to whom a protected benefit was being paid or might become payable is placed in a worse position than he would have been in if the former provision had continued to have effect,

he may by giving written notice to the Secretary of State within 3 months after 1st November 1988 elect that the new provision is to apply in relation to the benefit as if it had re-enacted the former provision without modification.

(2) A protected benefit is one paid, or capable of becoming payable, to or in respect of a person who before 1st November 1988 ceased to be in pensionable employment or died.

3.  Where a period of time specified in a provision of any Regulations revoked by these Regulations is current at the commencement of these Regulations, these Regulations have effect as if the corresponding provision of these Regulations had been in force when that period began to run.