The Teachers' Pensions Regulations 2010

PART 4 E+W+STransfers

Payment of transfer valuesE+W+S

31.—(1) A transfer value is to be paid in respect of a person who has ceased to be in pensionable employment and has become subject to another registered pension scheme (“the receiving scheme”).

(2) Paragraph (1) is subject to the following provisions of this regulation and to the limitations in regulation 32 (limitation on payment of transfer values under regulation 31).

(3) This regulation does not however affect a person's entitlement to a cash equivalent.

(4) A transfer value may only be paid in respect of a person who has become subject to a personal pension scheme if the person was in pensionable employment after 31st December 1985.

(5) A transfer value may only be paid under this regulation if—

(a)the person makes a written application to the Secretary of State, and

(b)the application is made within 12 months after the day on which the person became subject to the receiving scheme, except where the receiving scheme is comparable British service.

(6) Except as provided in paragraph (8) a transfer value is not to be paid under this regulation in respect of a person to whom, when the application was received, retirement benefits or a short-service serious ill health grant have become payable.

(7) Paragraph (6)—

(a)prevents a transfer value referable to the person's NPA 60 reckonable service being paid where—

(i)the person is a person with mixed service, and

(ii)a Case applies to that person's NPA 60 reckonable service, but not to the person's NPA 65 reckonable service, but

(b)does not prevent a transfer value referable to a person's further employment from being paid where neither retirement benefits nor a short-service serious ill health grant have become payable in respect of the further employment even though either retirement benefits or a short-service serious ill health grant have become payable in respect of previous employment.

(8) A transfer value is however to be paid under this regulation if—

(a)the employment in which the person has become subject to the receiving scheme is comparable British service, and

(b)the person entered it—

(i)immediately after ceasing to be in pensionable employment, or

(ii)on or before the person's 60th birthday, in the case of a pre-2007 entrant, or the person's 65th birthday in any other case, and

(c)the person has not applied for payment of any benefit.

(9) For the purposes of paragraph (8)(c) a person who was receiving phased retirement benefits before ceasing to be in pensionable employment is not to be treated as having applied for the payment of any benefit.

(10) A transfer value is not to be paid under this regulation in respect of a person to whom, when the application was received, a short-service annuity has become payable.

(11) A transfer value in respect of any pension credit rights or pension credit benefits is not to be paid under this regulation.

(12) Part 1 of Schedule 6 (transfer values) has effect for determining the amount of transfer values payable under this regulation.

Limitation on payment of transfer values under regulation 31E+W+S

32.—(1) Where the receiving scheme is not a contracted-out occupational pension scheme a transfer value may only be paid under regulation 31 if the person—

(a)is not qualified for retirement benefits, or

(b)has ceased to be in pensionable employment before 6th April 1978, or

(c)is a married woman or widow who, by virtue of an election made or treated as made under regulations under section 19(4) of the Social Security Contributions and Benefits Act 1992 M1, either is liable to pay primary Class 1 contributions or Class 2 contributions at a reduced rate or is under no liability to pay Class 2 contributions.

(2) Where a person has accrued section 9(2B) rights a transfer value may only be paid under regulation 30 in respect of those rights if any applicable provisions of Part 3 of the Contracting-Out (Transfer and Transfer Payments Regulations) 1996 M2 is complied with.

(3) Where the person has acquired a right to a cash equivalent, a transfer value may only be paid under regulation 31 if—

(a)the service to which the cash equivalent relates includes service before 1st September 1988, and

(b)the right has been exercised by requiring the whole of the cash equivalent to be paid to the scheme managers of an occupational pension scheme which is not a club scheme.

(4) Where the person has acquired a right to a part cash equivalent, a transfer value may only be paid under regulation 31 if the person would not remain qualified for retirement benefits on taking that right.

(5) In this regulation—

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

“receiving scheme” has the same meaning as in regulation 31.

Payment of bulk transfer valuesE+W+S

33.—(1) This regulation applies where, as a result of a relevant transfer to a new employer, a person or a group of persons is no longer in pensionable employment, and either has joined or is entitled to join the new employer's pension scheme (“the receiving scheme”) referred to below as a bulk transfer.

(2) A transfer value may be calculated by the Secretary of State, after taking advice from the scheme actuary, in respect of a person who has made a written application to the Secretary of State for such a transfer within 3 months after the date on which the person was notified of the opportunity to take part in the bulk transfer arrangement.

(3) Such transfer value may be paid to the receiving scheme on the person's becoming subject to the scheme.

Reduction in transfer value: lifetime allowance chargeE+W+S

34.—(1) This regulation applies where—

(a)the lifetime allowance charge under section 214 of FA 2004 arises on the payment of a cash equivalent or a transfer value in respect of a person to a qualifying recognised overseas pension scheme, and

(b)the person and the Secretary of State are jointly and severally liable to the charge.

(2) The Secretary of State must pay the charge.

(3) The cash equivalent or transfer value which, apart from this regulation, would be payable must be reduced to reflect the amount of the charge in such manner as the Secretary of State determines, after taking advice from the scheme actuary.

(4) In this regulation “qualifying recognised overseas pension scheme” has the same meaning as in Part 4 of FA 2004.

Acceptance of transfer valuesE+W+S

35.—(1) A transfer value offered to the Secretary of State by the scheme managers of a registered pension scheme (“the previous scheme”) in respect of a person who has entered pensionable employment may be accepted, but this paragraph is subject to the following provisions of this regulation and to regulation 36 (acceptance of bulk transfer values).

(2) A transfer value may only be accepted if—

(a)the person (P) makes a written request to the Secretary of State, and

(b)the request is made within 12 months after the day on which P entered pensionable employment, except where P, while P was subject to the previous scheme, was employed in comparable British service.

(3) A transfer value is not to be accepted if—

(a)before P ceased to be subject to the previous scheme retirement benefits became payable to P under regulation 60 (retirement benefits),

(b)benefits have become payable to the person under a provision of a statutory scheme corresponding to regulation 60, or

(c)the previous scheme was a money purchase arrangement as defined in section 152 of FA 2004 to which the person's employer was not a contributor and which provided benefits additional to those provided by a scheme to which he was a contributor.

(4) But sub-paragraphs (a) and (b) of paragraph (3) do not apply if, while P was subject to the previous scheme, P was employed in comparable British service and P entered pensionable employment—

(a)immediately after the end of the employment,

(b)on or before P's 60th birthday in the case of a pre-2007 entrant or P's 65th birthday in any other case.

(5) A transfer value in respect of any pension credit rights or pension credit benefits is not to be accepted.

(6) A person in respect of whom a transfer value has been accepted is entitled to count reckonable service in accordance with Part 2 of Schedule 6.

Acceptance of bulk transfer valuesE+W+S

36.—(1) This regulation applies where, as the result of a relevant transfer to a new employer, a person or a group of persons has become employed in pensionable employment and is given the opportunity to transfer past service pension rights, referred to below as a “bulk transfer”.

(2) A transfer value may be accepted by the Secretary of State in respect of a person who has made a written application within 3 months after the date on which the person was notified of the opportunity to take part in the bulk transfer, but this paragraph is subject to regulation 35(3)

(3) A person in respect of whom a transfer of such rights has been accepted as part of a bulk transfer is entitled to count reckonable service in accordance with Part 3 of Schedule 6.