# The Teachers' Pension Scheme Regulations 2014

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Statutory Instruments

# 2014 No. 512

Public Service Pensions, England And Wales

Education, England And Wales

# The Teachers' Pension Scheme Regulations 2014

Made

5th March 2014

Laid before Parliament

7th March 2014

Coming into force in accordance with regulation 1(2)

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 1(1) F1, (2)(d) F2, (3) and (4), 2 F3, 3(1), (2), (3)(a) and (c) and (4), 4(1) and (3) F4, 5(1), (2) and (4) F5, 7(1) and (4) F6, 8(1)(a) and (2)(a), 14, 18(1), (2), (4)(b) and (5) to (9) F7 and paragraph (c) of the definition of “employer” in section 37, and paragraph 4 of Schedule 1, paragraph 4(a) of Schedule                           2, Schedule 3, paragraph 18 of Schedule 5, paragraph 6 of Schedule 6, and paragraphs 1(2)(ii), 2(2)(ii) and 5 of Schedule                           7 to the Public Service Pensions Act 2013 F8.                        

In accordance with section 21 of that Act, the Secretary of State has consulted the representatives of such persons as appear                           to the Secretary of State likely to be affected by these Regulations.                        

In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.

F1See section 1(4) of the Act for the meaning of “scheme regulations”.

F2See paragraph 4 of Schedule 1 to the Act for the meaning of “teachers”.

F3See section 2(2) of the Act for the meaning of “responsible authority”.

F4See section 4(2) of the Act for the meaning of “scheme manager”. See section 4(6) of the Act for the meaning of a connected                              statutory pension scheme.

F5See section 5(8) of the Act for the meaning of “pension board”.

F6See section 8(4) of the Act for the meaning of “career average revalued earnings scheme”.

F7See section 18(2) of, and paragraph 18 of Schedule 5 to, the Act for the meaning of the existing scheme.

F82013 c.25.

## **PART 1**E+WPreliminary

### Citation, extent and commencementE+W

1.—(1) These Regulations—                  

(a)may be cited as the Teachers' Pension Scheme Regulations 2014; and                  

(b)extend to England and Wales.                  

(2) These Regulations come into force as follows—

(a)this Part and Part 2 come into force on 1st April 2014;                  

(b)the remaining provisions come into force on 1st April 2015.                  

### Establishment of Teachers' Pension Scheme 2014E+W

2.—(1) These Regulations establish a scheme for the payment of pensions and other benefits to or in respect of teachers in England                     and Wales.                  

(2) For the purpose of these Regulations, a person in an eligible employment is a teacher.

(3) This scheme is to be known as the Teachers' Pension Scheme 2014.

### InterpretationE+W

3.  In these Regulations—                  

“the Act” means the Public Service Pensions Act 2013;                  

“EA 2002” means the Education Act 2002 F9;                  

“FA 2004” means the Finance Act 2004 F10;                  

“PA 1995” means the Pensions Act 1995 F11;                  

“PA 2008” means the Pensions Act 2008 F12;                  

“PIA 1971” means the Pensions (Increase) Act 1971 F13;                  

“PSA 1993” means the Pension Schemes Act 1993 F14;                  

“WRPA 1999” means the Welfare Reform and Pensions Act 1999 F15;                  

“accepted member” has the meaning given in Part 1 of Schedule 1;                  

“accrual rate” means the fraction of pensionable earnings that accrue as earned pension for a financial year;                  

“accrued additional pension”—

for the purpose of a full retirement pension, has the meaning given in regulation 46;

for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued club transfer earned pension”—

for the purpose of a full retirement pension, has the meaning given in regulation 46;

for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued earned pension”—

for the purpose of a full retirement pension, has the meaning given in regulation 46;

for the purpose of a phased retirement pension, has the meaning given in regulation 47;

“accrued pension” means—                  

accrued earned pension;

accrued club transfer earned pension (if any); and

accrued additional pension (if any);

“accrued rights” does not include a right to benefits attributable (directly or indirectly) to a pension credit;                  

“active member”, in relation to this scheme, means a person who is in pensionable service under this scheme;                  

“active member's account” has the meaning given in regulation 50;                  

“actuarial”, in relation to a calculation or value, means determined by, or in accordance with tables or guidance prepared by, the scheme                     actuary;                  

“actuarial adjustment” has the meaning given in Chapter 7 of Part 4;                  

“additional paternity leave” has the meaning given in regulation 2(1) of the Additional Paternity Leave Regulations 2010 F16;                  

“additional pension” means—                  

additional (self only) pension; or

additional (surviving adult) pension;

“additional pension account” has the meaning given in Chapter 5 of Part 4;                  

“additional pension contributions” has the meaning given in Part 1 of Schedule 2;                  

“additional pension election” has the meaning given in Part 1 of Schedule 2;                  

“additional (self only) pension” means an additional pension payable to a pensioner member;                  

“additional (surviving adult) pension” means an additional pension payable to the member's surviving adult after the member has died;                  

“adoption leave” has the meaning given in regulation 2(1) of the Paternity and Adoption Leave Regulations 2002 F17;                  

“age retirement pension” means a pension payable under Chapter 2 of Part 5;                  

“amount of credited pension” has the meaning given in regulation 80(3);                  

“annual amount of pensionable earnings”, in relation to any year, means the amount of pensionable earnings payable in that year;                  

“annual rate of pensionable earnings” means—                  

for a member who is in pensionable service in relation to one full-time employment only, the annual rate of pensionable earnings                              for that employment;                           

for a member who is in pensionable service in relation to one part-time employment only, the annual rate of pensionable earnings                              that would be payable if that employment were a full-time employment;                           

for a member who is in pensionable service in relation to one irregular employment only, the annual rate of pensionable earnings                              that would be payable if that employment were a full-time employment; and                           

for a member who is in pensionable service in relation to more than one employment, the member's full-time equivalent annual                              rate of pensionable earnings calculated under Chapter 5 of Part 3;                           

“appropriate factor”, in relation to a person, means a factor determined by the scheme actuary;                  

“balance of contributions” means the amount of contributions repayable under regulation 189;                  

“buy-out contributions” has the meaning given in Part 1 of Schedule 2;                  

“cash transfer sum” has the meaning given in section 101AB of PSA 1993 F18;                  

“child pension” means a pension payable under regulation 149;                  

“club scheme” means a registered occupational pension scheme (other than a connected scheme) that has agreed to make and receive transfer                     value payments under the club transfer arrangements;                  

“club transfer” means a transfer to or from this scheme under the club transfer arrangements;                  

“club transfer arrangements” means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme and other registered                     occupational pension schemes for making and receiving transfer value payments;                  

“club transfer earned pension” means pension attributable to the receipt of a club transfer value;                  

“club transfer value”, in relation to earned pension accrued under this scheme or under another club scheme, has the meaning given in Part 10                     (transfers);                  

“conversion amount” has the meaning given in regulation 75;                  

“connected scheme” has the meaning given in regulation 4;                  

“continuity of service”, in relation to a transition member, has the meaning given in Part 1 of Schedule 3;                  

“contributions equivalent premium” means a premium under section 55(2) of PSA 1993;                  

“contracting scheme employer” has the meaning given in Part 1 of Schedule 1;                  

“death grant” means a death grant under Part 6;                  

“deferred member”, in relation to this scheme, means a person (other than an active member or pensioner member of this scheme) who has accrued                     rights under this scheme;                  

“deferred member's account” has the meaning given in Chapter 6 of Part 4;                  

“dual capacity member” has the meaning given in regulation 21;                  

“early retirement pension” means a pension payable under regulation 104;                  

“earned pension” means pension calculated by reference to a member's pensionable earnings;                  

“eligible child” has the meaning given in regulation 137;                  

“eligible employment” has the meaning given in Part 3;                  

“employed” means employed under a contract of employment;                  

“employer”, for a person employed by the governing body of a school maintained by a local authority, means—

the local authority; or

for the purpose of an additional pension election, the local authority and the governing body;

“employment” means employment under a contract of employment;                  

“entitlement day”, in relation to a benefit payable under a Chapter in Part 5, has the meaning given in that Chapter;                  

“existing club transfer arrangements” means arrangements approved by the scheme manager of the existing scheme as providing reciprocal arrangements between the                     existing scheme and other existing club schemes for making and receiving transfer value payments;                  

“existing Fair Deal arrangements” has the meaning given in Part 1 of Schedule 3;                  

“an existing club scheme” means a registered occupational pension scheme which belonged to the transfer club on the scheme closing date;                  

“an existing scheme” means an existing scheme as defined in section 18(2) of the Act;                  

“the existing scheme” means the scheme constituted by regulations made under section 9 of the Superannuation Act 1972 F19 (whether made before or after the coming into force of these Regulations);                  

“Fair Deal transfer” has the meaning given in Part 1 of Schedule 1;                  

“Fair Deal transfer date” has the meaning given in Part 1 of Schedule 1;                  

“faster accrual contributions” has the meaning given in Part 1 of Schedule 2;                  

“faster accrual earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the faster accrual rate to the                     member's pensionable earnings for that year;                  

“faster accrual election” has the meaning given in Part 1 of Schedule 2;                  

“financial year” means the 12 months ending with 31st March in any year;                  

“full retirement additional pension” has the meaning given in regulation 70;                  

“full retirement earned pension” has the meaning given in regulation 69;                  

“full retirement pension” means—                  

a full retirement earned pension; and

a full retirement additional pension (if any);

“full-time”, in relation to employment, has the meaning given in regulation 16(a);                  

“function provider” has the meaning given in Part 1 of Schedule 1;                  

“GMP age” means 65 in the case of a man or 60 in the case of a woman;                  

“guaranteed minimum” means a guaranteed minimum under section 14 of PSA 1993;                  

“guaranteed minimum pension” has the meaning given in section 8(2) of PSA 1993;                  

“ill-health pension” means a pension payable under regulation 110;                  

“ill-health retirement benefits” means—                  

an ill-health pension; and

a lump sum payable under regulation 168 in place of part of that pension;

“incapacitated” has the meaning given in Chapter 6 of Part 5 (ill-health retirement);                  

“index adjustment” means—                  

in relation to the opening balance of earned pension for any financial year (other than the opening balance of club transfer                              earned pension), means the percentage increase or decrease in prices specified in the Treasury order for the previous financial                              year, plus 1.6%; and                           

in relation to the opening balance of club transfer earned pension for any financial year, means the adjustment that would                              apply to the opening balance of that amount of earned pension under the sending scheme for the previous financial year;                           

“initial payment” has the meaning given in regulation 164 or 165;                  

“last active financial year” has the meaning given in regulation 46;                  

“last day of pensionable service”, in relation to a member, means the day on which a member leaves all pensionable service;                  

“leaver index adjustment” has the meaning given in Chapter 1 of Part 4;                  

“leaver PIA index adjustment” has the meaning given in Chapter 1 of Part 4;                  

“local authority” means—                  

a county council,

a metropolitan district council,

a non-metropolitan district council for an area for which there is no county council,

a county borough council (in Wales),

a London borough council,

the Common Council of the City of London,

the Council of the Isles of Scilly;

“maternity leave” means ordinary maternity leave or additional maternity leave within the meaning of the Maternity and Parental Leave etc.                     Regulations 1999 F20;                  

“member”, in relation to this scheme, means an active member, deferred member, pensioner member or pension credit member;                  

“members' contributions” means contributions payable under regulation 185(1) on pensionable earnings;

“members' contributions rate” has the meaning given in regulation 185;

“non-pensionable family leave” means a period of adoption leave, maternity leave, parental leave, paternity leave or additional paternity leave during                     which the employee—                  

does not receive any statutory pay; and

is not paid a salary or is paid less than half the salary;

“non-pensionable sick leave” means a period of sick leave taken by an employee with the consent of the employer, during which the employee—                  

does not receive any statutory pay; and

is not paid a salary or is paid less than half the employee's salary;

“normal minimum pension age” has the same meaning as in section 279(1) of FA 2004;                  

“normal pension age”—

in relation to this scheme, is determined in accordance with section 10 of the Act; and

in relation to the existing scheme, has the meaning given in that scheme;

“occupational pension scheme” has the meaning given in section 1 of PSA 1993;                  

“opening balance”, in relation to earned pension or transferred pension, has the meaning given in regulation 54;                  

“opening balance”, in relation to additional pension, has the meaning given in regulation 59;                  

“parental leave” means leave within the meaning of Part 3 of the Maternity and Parental Leave etc. Regulations 1999;                  

“Participation Agreement” has the meaning given in Part 1 of Schedule 1;                  

“part-time”, in relation to employment, has the meaning given in regulation 16(b);                  

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002 F21;                  

“pay order” means an order under section 122 of EA 2002, for the time being in force and includes any document referred to in such an                     order;                  

“pay period”, in relation to the payment of a member's pensionable earnings, means the period in respect of which the payment is made;                  

“pension credit” has the meaning given in Chapter 1 of Part 7 (benefits for pension credit members);                  

“pension credit member” has the meaning given in Chapter 1 of Part 7;                  

“pension credit member's account” has the meaning given in regulation 80;                  

“pension credit retirement pension” has the meaning given in Chapter 1 of Part 7;                  

“pension debit member” has the meaning given in Chapter 1 of Part 7;                  

“pensionable earnings” has the meaning given in Chapter 4 of Part 3;                  

“pensioner member”, in relation to this scheme, means a person who is entitled to payment of a retirement pension under this scheme;                  

“pensioner member's account” has the meaning given in regulation 76;                  

“pension-sharing order” means any provision or order specified in section 28 of WRPA;                  

“period of permanent service”, in relation to service in the armed forces, has the meaning given in regulation 26;                  

“permitted maximum” means the amount determined in accordance with paragraph 2 of Schedule 29 to FA 2004;                  

“personal pension scheme” means a personal pension scheme as defined in section 1 of PSA 1993 that is a registered pension scheme;                  

“phased retirement application” has the meaning given in Chapter 3 of Part 5;                  

“phased retirement additional pension” has the meaning given in regulation 72;                  

“phased retirement earned pension” has the meaning given in regulation 71;                  

“phased retirement pension” means—                  

a phased retirement earned pension; and

a phased retirement additional pension (if any);

“phased retirement proportion” means the proportion of accrued earned pension specified in a phased retirement application;                  

“PIA index adjustment”, in relation to the opening balance of additional pension for any financial year, means the amount by which the annual rate                     of a pension of an amount equal to the opening balance would have been increased in that year under PIA 1971 if—                  

that pension were eligible to be so increased; and

the beginning date for that pension were the first day of the previous financial year;

“post-benefit service” has the meaning given in regulation 83(3);                  

“premature retirement pension” means a pension payable under regulation 101;                  

“prospective normal pension age”, in relation to a member's prospective entitlement to benefits under this scheme, means the normal pension age that the                     scheme manager determines (by reference to Treasury directions made under section 11(2) of the Act) would apply in relation                     to those benefits;                  

“protected member” has the meaning given in Part 1 of Schedule 3;                  

“public service scheme” means a scheme under section 1 of the Act;                  

“qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 82;                  

“registered”, in relation to a pension scheme, means registered under Chapter 2 of Part 4 of FA 2004;                  

“re-qualified”, in relation to retirement benefits payable under this scheme, has the meaning given in regulation 83;                  

“retirement benefits” means—                  

a retirement pension; and

any lump sum payable under regulation 168 in place of part of that pension;

“retirement pension” means—                  

an age retirement pension;

a phased retirement pension;

a premature retirement pension;

an early retirement pension;

an ill-health pension;

a total incapacity pension;

“salary” means gross salary payable under a contract of employment;                  

“this scheme” means the scheme established by these Regulations;                  

“scheme actuary” means the person appointed by the scheme manager for the time being to provide a consulting service on actuarial matters;                  

“scheme closing date” has the meaning given in Part 1 of Schedule 3;                  

“scheme manager” has the meaning given in Part 2;                  

“sending scheme” means a pension scheme which pays a transfer value or a club transfer value;                  

“short-service serious ill-health grant” means a grant payable under Chapter 7 of Part 5;                  

“standard accrual rate”, in relation to a member's pensionable earnings, means 1/57th;                  

“standard earned pension”, in relation to a financial year, means the amount of earned pension calculated by applying the standard accrual rate to                     the member's pensionable earnings for that year;                  

“standard increase”, in relation to pensionable earnings, has the meaning given in Chapter 4 of Part 3;                  

“standard rate”, in relation to interest, means the Superannuation Contributions Adjusted for Past Experience discount rate set by the Treasury;                  

“standard reduction” has the meaning given in Chapter 7 of Part 4;                  

“statutory pay” means—                  

statutory adoption pay, statutory maternity pay or statutory paternity pay within the meaning of the Social Security Contributions                              and Benefits Act 1992 F22, or                           

additional statutory paternity pay within the meaning given in regulation 2(1) of the Additional Statutory Paternity Pay (General)                              Regulations 2010 F23;                           

“surviving adult” has the meaning given in regulation 134;                  

“surviving adult pension ” means a pension payable under regulation 142;                  

“surviving civil partner” means a person who, at the time of a member's death, was in a civil partnership F24 with the member;                  

“surviving nominated beneficiary” has the meaning given in regulation 136;                  

“surviving nominated partner” has the meaning given in regulation 135;                  

“surviving spouse” means a person who, at the time of a member's death, was married to the member;                  

“survivor's pension” has the meaning given in Chapter 1 of Part 6;                  

“total incapacity benefits” means—                  

a total incapacity pension; and

a lump sum payable under regulation 168 in place of part of that pension**;**                           

“total incapacity pension” means a pension payable under regulation 116;                  

“transfer club” means the club of registered occupational pension schemes which make and receive transfer value payments under the club                     transfer arrangements;                  

“transfer payment” means a transfer value payment or a cash transfer sum made or received by this scheme in relation to a member;                  

“transfer value”, in relation to accrued rights other than rights to earned pension accrued under this scheme or under another club scheme,                     has the meaning given in Part 10 (transfers);                  

“transfer value payment” means—                  

the payment of a transfer value or club transfer value under Part 10 (transfers); or

the payment of a transfer value under Chapter 4 of Part 4 of PSA 1993;

“transferred pension” means pension attributable to the receipt of a transfer value;                  

“transition member” has the meaning given in Part 4 of Schedule 3;                  

“the Treasury order”, in relation to a given period, means the Treasury order made under section 9(2) of the Act that specifies a percentage                     increase or decrease in prices in relation to that period;                  

“TUPE transfer” means a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 F25.                  

F92002 c.32.

F102004 c.12.

F111995 c.26.

F122008 c.30.

F131971 c.56.

F141993 c.48.

F151999 c.30.

F16S.I. 2010/1055.

F17S.I. 2002/2788.

F18Section 101AB was inserted by the Pensions Act 2004 (c.35), **section 264**.

F191972 c.11.

F20S.I. 1999/3312, to which there are amendments not relevant to these Regulations.

F21S.I. 2002/2788.

F221992 c.4.

F23S.I. 2010/1056.

F24See section 1 of the Civil Partnership Act 2004 (c.33) for the meaning of “civil partnership”.

F25S.I. 2006/246, as amended by S.I. 2014/16.

### Connected schemesE+W

4.—(1) In these Regulations, “connected scheme” means another statutory pension scheme that is connected, within the meaning of section 4(6) of the Act, with this scheme.                  

(2) The scheme established by the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 F26 is not a connected scheme.                  

F26S.I. 1994/2924; as amended by S.I. 1997/3001, **S.I**. 2000/666, S.I. 2000/3028, **S.I**. 2001/3649, S.I. 2005/2198, **S.I**. 2006/736, S.I. 2006/2214, **S.I**. 2006/3122, S.I. 2008/541, **S.I**. 2010/990 and S.I. 2011/614.

### Leaving pensionable serviceE+W

5.—(1) For the purpose of these Regulations, a person (P) leaves all pensionable service—                  

(a)if P is in pensionable service in relation to one employment only, when P leaves pensionable service in relation to that employment;                        or                  

(b)if P is in pensionable service in relation to more than one employment, when P leaves pensionable service in relation to all                        those employments.                  

(2) For the purpose of these Regulations, P leaves pensionable service in relation to an eligible employment when—

(a)P begins a period of non-pensionable family leave, non-pensionable sick leave or unpaid leave in relation to that employment;                  

(b)P opts out of this scheme in relation to that employment; or                  

(c)P leaves that employment.                  

### Leaving eligible employmentE+W

6.—(1) For the purpose of these Regulations, a person (P) leaves all eligible employment—                  

(a)if P is in one eligible employment only, when P leaves that employment; or                  

(b)if P is in more than one eligible employment, when P leaves all those employments.                  

(2) For the purpose of these Regulations—

(a)P leaves an eligible employment when P ends a period of non-pensionable family leave, non-pensionable sick leave or unpaid                        leave in relation to that employment and does not return to that employment; but                  

(b)P does not leave an eligible employment unless at least one complete day has passed since P's last day in that employment.                  

## **PART 2**E+WGovernance

### Scheme managerE+W

7.—(1) The Secretary of State is the scheme manager for this scheme and any connected scheme.                  

(2) The scheme manager is responsible for managing this scheme and any connected scheme.

### Establishment of pension boardE+W

8.—(1) A pension board (“the Teachers' Pension Scheme Pension Board”) is established.                  

(2) The Teachers' Pension Scheme Pension Board is responsible for assisting the scheme manager in relation to securing compliance                     with—                  

(a)these Regulations;                  

(b)any other legislation relating to the governance and administration of this scheme and any connected scheme; and                  

(c)requirements imposed by the Pensions Regulator in relation to this scheme and any connected scheme.                  

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Pension Board discharges its functions.

### Membership of pension boardE+W

9.—(1) Subject to paragraph 2, the scheme manager may determine—                  

(a)the membership of the Teachers' Pension Scheme Pension Board;                  

(b)the manner in the Teachers' Pension Scheme Pension Board members may be appointed and removed; and                  

(c)the terms of appointment of the Teachers' Pension Scheme Pension Board members.                  

(2) The Teachers' Pension Scheme Pension Board is to include equal numbers representing the employers F27 and members.                  

F27See section 37 of the Act for the meaning of “employer”.

### Conflict of interestE+W

10.—(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Pension Board                     does not have a conflict of interest F28.                  

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Pension Board                     has a conflict of interest.                  

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager                     with such information as the scheme manager reasonably requires for the purposes of paragraph (1).                  

(4) A person who is a member of the Teachers' Pension Scheme Pension Board must provide the scheme manager with such information                     as the scheme manager reasonably requires for the purposes of paragraph (2).                  

F28See section 5(5) of the Act for the meaning of “conflict of interest”.

### Establishment of scheme advisory boardE+W

11.—(1) A scheme advisory board (“the Teachers' Pension Scheme Advisory Board”) is established.                  

(2) The Teachers' Pension Scheme Advisory Board is responsible for providing advice to the scheme manager, at the scheme manager's                     request, on the desirability of changes to this scheme.                  

(3) The scheme manager is to determine the process by which the Teachers' Pension Scheme Advisory Board discharges its functions.

### Membership of scheme advisory boardE+W

12.  The scheme manager may determine—                  

(a)the membership of the Teachers' Pension Scheme Advisory Board;                  

(b)the manner in which the Teachers' Pension Scheme Advisory Board members may be appointed and removed; and                  

(c)the terms of appointment of the members of the Teachers' Pension Scheme Advisory Board.                  

### Conflict of interestE+W

13.—(1) The scheme manager must be satisfied that any person to be appointed as a member of the Teachers' Pension Scheme Advisory                     Board does not have a conflict of interest.                  

(2) The scheme manager must be satisfied from time to time that none of the members of the Teachers' Pension Scheme Advisory Board                     has a conflict of interest.                  

(3) A person who is to be appointed as a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager                     with such information as the scheme manager reasonably requires for the purposes of paragraph (1).                  

(4) A person who is a member of the Teachers' Pension Scheme Advisory Board must provide the scheme manager with such information                     as the scheme manager reasonably requires for the purposes of paragraph (2).                  

## **PART 3**E+WScheme membership

### CHAPTER 1E+WInterpretation

#### Meaning of “an eligible employment”E+W

#### Meaning of “P's automatic enrolment date” and “P's automatic re-enrolment date”E+W

#### Meaning of “full-time” and “part-time” employmentE+W

#### Meaning of “irregular employment”E+W

#### Meaning of “opt-out notice” and “opt-in notice”E+W

### CHAPTER 2E+WMembership

#### Eligibility for active membershipE+W

#### More than one employmentE+W

#### Dual capacity membershipE+W

#### Payment of retirement benefits to dual capacity membersE+W

### CHAPTER 3E+WPensionable service

#### SECTION 1E+WGeneral provisions

#### SECTION 2E+WService in Her Majesty's armed forces

##### Pensionable service – armed forces serviceE+W

##### Election for armed forces service to be pensionableE+W

#### SECTION 3E+WPensionable service on or after automatic enrolment date

##### Pensionable service on or after automatic enrolment dateE+W

##### Opting out of this scheme after automatic enrolment dateE+W

##### Opting into this scheme after automatic enrolment dateE+W

#### SECTION 4E+WPensionable service before automatic enrolment date

##### Pensionable service before automatic enrolment dateE+W

##### Opting out of this scheme before automatic enrolment dateE+W

##### Opting into this scheme before automatic enrolment dateE+W

### CHAPTER 4E+WPensionable earnings

#### Pensionable earnings for other membersE+W

#### Amounts not forming part of pensionable earningsE+W

#### Application for residential benefits in kind to form part of pensionable earningsE+W

#### Money value of residential benefits in kind to form part of pensionable earningsE+W

### CHAPTER 5E+WAnnual rate of pensionable earnings for multiple employments

#### Multiple regular full-time or part-time employmentsE+W

#### Multiple employments including at least one irregular employmentE+W

## **PART 4**E+WPension accounts

### CHAPTER 1E+WInterpretation

#### InterpretationE+W

#### Pensionable serviceE+W

#### Meaning of “leaver index adjustment”E+W

#### Meaning of “leaver PIA index adjustment”E+W

### CHAPTER 2E+WCalculation of accrued pension

#### Calculation of amount of accrued pension for purposes of deferment or full retirementE+W

#### Calculation of amount of accrued pension for purpose of phased retirementE+W

### CHAPTER 3E+WPension accounts: general

#### Establishment of pension accounts: generalE+W

#### Closure of pension accounts on transfer out or repayment of balance of contributionsE+W

### CHAPTER 4E+WActive member's account

#### Establishment of active member's accountE+W

#### Receipt of transfer valuesE+W

#### Receipt of club transfer valuesE+W

#### Account to specify amount of pension for a financial yearE+W

#### Account to specify opening balance and index adjustmentE+W

#### Ill-health pension ceases to be payableE+W

#### Phased retirement pension ceases to be payableE+W

### CHAPTER 5E+WAdditional pension account

#### Establishment of additional pension accountE+W

#### Account to specify amount of additional pensionE+W

#### Account to specify opening balance and PIA index adjustmentE+W

#### Ill-health pension ceases to be payableE+W

#### Phased retirement pension ceases to be payableE+W

### CHAPTER 6E+WDeferred member's account

#### Establishment of deferred member's accountE+W

#### Account to specify amount of accrued earned pension and leaver index adjustmentE+W

#### Deferred member's account closed after break not exceeding 5 yearsE+W

#### Deferred member's account closed after service under another public service schemeE+W

#### Deferred member's account remains open after a gap in service of more than 5 yearsE+W

#### Deferred member's account established after ill-health pension ceases to be payableE+W

#### Deferred member's account established after phased retirement pension ceases to be payableE+W

### CHAPTER 7E+WPensioner members' accounts

#### SECTION 1E+WInterpretation

##### Meaning of “full retirement earned pension”E+W

##### Meaning of “full retirement additional pension”E+W

##### Meaning of “phased retirement earned pension”E+W

##### Meaning of “phased retirement additional pension”E+W

##### Meaning of “standard reduction”E+W

##### Meaning of “conversion amount”E+W

#### SECTION 2E+WEstablishment of pensioner members' accounts

##### Pension accounts for active or deferred members who become pensioner membersE+W

##### Pension accounts for phased retirement membersE+W

#### SECTION 3E+WClosure of accounts

##### Ill-health pension ceases to be payableE+W

##### Phased retirement pension ceases to be payableE+W

### CHAPTER 8E+WPension credit member's pension account

#### Pension credit member's pension accountE+W

#### Separate account for each capacity of membershipE+W

## **PART 5**E+WRetirement benefits for teachers

### CHAPTER 1E+WInterpretation

#### Qualifying for retirement benefitsE+W

#### Re-qualifying for retirement benefits in respect of post-benefit serviceE+W

#### Payment of retirement benefits for post-benefit serviceE+W

### CHAPTER 2E+WAge retirement

#### Meaning of “entitlement day” (age retirement pension)E+W

#### Entitlement to age retirement pensionE+W

#### Annual rate of age retirement pensionE+W

#### Arrears of pension payable to deferred member who becomes pensioner member after reaching normal pension ageE+W

### CHAPTER 3E+WPhased retirement

#### Meaning of “entitlement day” (phased retirement pension)E+W

#### Entitlement to phased retirement pensionE+W

#### Phased retirement applicationsE+W

#### Phased retirement proportionE+W

#### Annual rate of phased retirement pensionE+W

#### Subsequent phased retirement applicationsE+W

### CHAPTER 4E+WPremature retirement

#### Interpretation of “pensionable service”E+W

#### Meaning of “entitlement day” (premature retirement pension)E+W

#### Entitlement to premature retirement pensionE+W

#### Annual rate of premature retirement pensionE+W

### CHAPTER 5E+WEarly retirement

#### Meaning of “entitlement day” (early retirement pension)E+W

#### Annual rate of early retirement pensionE+W

### CHAPTER 6E+WIll-health retirement

#### SECTION 1E+WGeneral

##### InterpretationE+W

##### Incapacity definitionsE+W

##### Ill-health applicationsE+W

#### SECTION 2E+WIll-health pension

##### No entitlement to ill-health pensionE+W

##### When ill-health pension does not become payableE+W

##### Annual rate of ill-health pensionE+W

##### When ill-health pension ceases to be payableE+W

#### SECTION 3E+WTotal incapacity pension

##### Meaning of “entitlement day” (total incapacity pension)E+W

##### Entitlement to total incapacity pensionE+W

##### Annual rate of total incapacity pensionE+W

##### Cessation of total incapacity pensionE+W

### CHAPTER 7E+WShort-service serious ill-health grant

#### Application for payment of grantE+W

#### Meaning of “entitlement day” (short-service serious ill-health grant)E+W

#### Entitlement to short-service serious ill-health grantE+W

#### Amount of grantE+W

### CHAPTER 8E+WShort-service annuity for post-benefit service

#### Meaning of “entitlement day” (short-service annuity)E+W

#### Entitlement to short-service annuityE+W

#### Annual rate of short-service annuityE+W

## **PART 6**E+WSurvivor's benefits

### CHAPTER 1E+WGeneral interpretation

#### GeneralE+W

#### Meaning of “dies in service”E+W

#### Meaning of “dies out of service”E+W

#### Meaning of “dies as a pensioner member”E+W

#### When a retirement pension does not become payableE+W

#### Payment of survivor benefits for post-benefit serviceE+W

#### Death of a dual capacity memberE+W

### CHAPTER 2E+WSpecific interpretation

#### Meaning of “death grant beneficiary”E+W

#### Meaning of “eligible child”E+W

### CHAPTER 3E+WDeath grant

#### SECTION 1E+WGeneral

##### Payment of death grantE+W

#### SECTION 2E+WDeath in service

#### SECTION 3E+WDeath out of service

##### Supplementary death grant payable on death of pensioner memberE+W

### CHAPTER 4E+WSurviving adult pensions

#### Surviving adult pensionsE+W

#### Annual rate of surviving adult pension: long-termE+W

#### Enhancement of surviving adult pensionE+W

### CHAPTER 5E+WAdditional (surviving adult) pensions

#### Additional pensions for surviving adultsE+W

#### Annual rate of additional (surviving adult) pension: short-termE+W

#### Annual rate of additional (surviving adult) pension: long-termE+W

### CHAPTER 6E+WChild pensions

#### Entitlement to child pensionE+W

#### Annual rate of child pension: long-termE+W

#### Enhancement of child pensionE+W

## **PART 7**E+WBenefits for pension credit members

### CHAPTER 1E+WGeneral

#### InterpretationE+W

### CHAPTER 2E+WPension credit retirement pension

#### Entitlement day for pension credit retirement pensionE+W

#### Entitlement to pension credit retirement pensionE+W

#### Annual rate of pension credit retirement pensionE+W

### CHAPTER 3E+WDeath grant

#### Meaning of death grant beneficiaryE+W

#### Death grant: death of pension credit member before pension becomes payableE+W

#### Death grant: death of pension credit member after benefits payableE+W

## **PART 8**E+WPayment of benefits

### CHAPTER 1E+WApplication for payment of benefits

#### Benefits payable by the scheme managerE+W

#### Application for payment of benefitsE+W

### CHAPTER 2E+WPayment of pensions

#### InterpretationE+W

#### Monthly payment of pensionE+W

#### Quarterly payment of pensionE+W

#### Apportionment Act 1870 not to applyE+W

### CHAPTER 3E+WPayment of lump sums

#### Member declarationE+W

#### Conversion of part of pensionE+W

#### Amount of lump sum payable under regulation 168E+W

#### Conversion amountE+W

#### Commutation of whole pension (serious ill-health)E+W

#### Amount of lump sum payable under regulation 171 instead of retirement pensionE+W

#### Amount of lump sum payable under regulation 171 instead of a pension credit retirement pensionE+W

#### Commutation: small pensionsE+W

### CHAPTER 4E+WContinuing entitlement to benefit

#### Evidence of continuing entitlement to benefitE+W

#### Cessation of benefits where no entitlementE+W

### CHAPTER 5E+WMiscellaneous

#### Recovery of overpayment of benefitsE+W

#### Interest on late payment of benefitsE+W

#### Payment of benefits in certain casesE+W

#### Benefits not assignableE+W

#### Forfeiture of benefitsE+W

#### Reduction of benefits: annual allowance and lifetime allowance chargeE+W

#### General prohibition on unauthorised paymentsE+W

## **PART 9**E+WContributions

### CHAPTER 1E+WInterpretation of Part

### CHAPTER 2E+WMembers' contributions

### CHAPTER 3E+WRepayment of members' contributions after short-service

### CHAPTER 4E+WEmployers' contributions

### CHAPTER 5E+WDeduction and payment of contributions

## **PART 10**E+WTransfers

### CHAPTER 1E+WPreliminary

#### Application of PartE+W

#### Interpretation of PartE+W

### CHAPTER 2E+WTransfers on a cash equivalent basis

#### SECTION 1E+WApplication of Chapter

##### Application of ChapterE+W

#### SECTION 2E+WTransfers out

##### Application of this SectionE+W

##### Application for a statement of entitlementE+W

##### Application for payment of a transfer valueE+W

##### Payment of a transfer valueE+W

#### SECTION 3E+WTransfers in

##### Application for acceptance of a transfer valueE+W

##### Acceptance of a transfer valueE+W

##### Amount of transferred pensionE+W

### CHAPTER 3E+WClub transfers

#### SECTION 1E+WApplication of Chapter

##### Application of ChapterE+W

#### SECTION 2E+WTransfers out

##### Application of this SectionE+W

##### Application for a club transfer statement of entitlementE+W

##### Application for payment of a club transfer valueE+W

##### Payment of a club transfer valueE+W

#### SECTION 3E+WTransfers in

##### Application for acceptance of a club transfer valueE+W

##### Acceptance of a club transfer valueE+W

##### Amount of club transfer earned pensionE+W

### CHAPTER 4E+WMaking a bulk transfer payment

#### Application of ChapterE+W

#### Making a bulk transfer paymentE+W

### CHAPTER 5E+WAccepting a bulk transfer payment

#### Application of ChapterE+W

#### Accepting a bulk transfer paymentE+W

## **PART 11**E+WMiscellaneous and supplemental

David Laws

 Minister of State

 Department for Education

5th March 2014

We consent

Mark Lancaster

David Evennett

 Two of the Lords Commissioners of Her Majesty's Treasury

5th March 2014

 Regulations 3 and 14

## SCHEDULE 1E+WEligible employment

### **PART 1**E+WGeneral

#### CHAPTER 1E+WInterpretation

##### InterpretationE+W

1.  In this Schedule—                  

“CA 2006” means the Companies Act 2006 F59;                  

“EA 1996” means the Education Act 1996 F60;                  

“IA 1986” means the Insolvency Act 1986 F61;                  

“NHSA 2006” means the National Health Service Act 2006 F62;                  

“NHSWA 2006” means the National Health Service (Wales) Act 2006 F63;                  

“TPR 2010” means the Teachers' Pensions Regulations 2010 F64;                  

“TSAVCR 1994” means the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 F65;                  

“Academy” must be construed in accordance with section 579 of EA 1996;

“best value arrangement” means a contract or other arrangement made with a local authority for the provision of, or the making available of, services                     for the purposes of, or in connection with, the exercise of an education function of that local authority;                  

“COBIS” means the Council of British International Schools;                  

“education functions” must be construed in accordance with section 579 of EA 1996;

“European School” means an establishment satisfying article 2 of the European Communities (European Schools) Order 1972 F66;                  

“function provider” means a body corporate other than a local authority which—                  

is specified in a direction under section 497A(4) of EA 1996,

is nominated under section 497A(4A) of EA 1996 or section 15 of the Local Government Act 1999 F67, or                           

provides or makes available services under a best value arrangement;

“further education” has the meaning given in section 2(3) of EA 1996;                  

“guarantee” means—                  

in paragraph 2, a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager                              in respect of sums due, under these Regulations and TSAVCR 1994, from the proprietor and from any other person by whom teachers                              are employed at the establishment;                           

in paragraph 3, a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager                              in respect of sums due from the function provider under these Regulations and TSAVCR 1994;                           

“higher education” has the meaning given in section 120(1) of the Education Reform Act 1988 F68;                  

“non-profit-making body” means a body, the constitution of which—                  

requires any surplus income or gains to be invested,

prohibits the distribution of the assets of the body, in cash or kind, by way of dividend, bonus or otherwise by way of profit                              to any member of the body or to a third party (other than for charitable purposes), and                           

provides for any net assets on the dissolution of the body to be applied for charitable purposes or for the purposes for which                              the body existed before its dissolution;                           

“organiser” means a person who performs duties in connection with the provision of education or services ancillary to education other                     than administrative services;                  

“proprietor”, in relation to a school or other establishment, means the person or body of persons responsible for the management of the                     school or other establishment;                  

“special school” has the meaning given in section 337 of EA 1996; and                  

“supervisor” means a person employed in a capacity connected with education which to a substantial extent involves the control or supervision                     of teachers.                  

F592006 c.46.

F601996 c.56.

F611986 c.45.

F622006 c.41.

F632006 c.42.

F64S.I. 2010/990; relevant amending instruments are S.I. 2011/614, **S.I**. 2012/673, S.I. 2012/979, **S.I**. 2012/2270, S.I. 2013/275 and S.I. 2014/424.

F65S.I. 1994/2924; as amended by S.I. 1997/3001, **S.I**. 2000/666, S.I. 2000/3028, **S.I**. 2001/3649, S.I. 2005/2198, **S.I**. 2006/736, S.I. 2006/2214, **S.I**. 2006/3122, S.I. 2008/541, **S.I**. 2010/990 and S.I. 2011/614.

F66S.I. 1972/1582.

F671999 c.27.

F681988 c.40.

##### Meaning of “accepted school”E+W

2.—(1) An establishment is an accepted school if—                  

(a)immediately before 1stApril 2015 it was an accepted school under regulation 13 of TPR 2010; or                  

(b)the scheme manager accepts it for the purpose of this paragraph by giving its proprietor a written notice specifying the date                        on which it becomes an accepted school.                  

(2) An establishment may be accepted only if—

(a)it is an establishment mentioned in sub-paragraph (3);                  

(b)its proprietor applies in writing to the scheme manager; and                  

(c)a guarantee is provided to the scheme manager.                  

(3) The establishments are—

(a)an independent school (in England) registered under section 99 of the Education and Skills Act 2008 F69 or (in Wales) registered under section 161 of EA 2002;                  

(b)an establishment providing further education constituted by an amalgamation of establishments—                  

(i)which provided further education before the amalgamation; and                  

(ii)of which at least one was an accepted school;                  

(c)a school which is a member of COBIS and is located in a member State F70 other than the United Kingdom;                  

(d)the establishment which, when teachers were employed there for the purpose of the Ministry of Defence, was known as Welbeck,                        the Defence Sixth Form College.                  

(4) The date on which an establishment becomes an accepted school is a date agreed by the scheme manager and the proprietor as                     follows—                  

(a)for an establishment mentioned in sub-paragraph (3)(a), (c) or (d), the first day of a month after the month in which the                        establishment applies to be an accepted school; or                  

(b)for an establishment mentioned in sub-paragraph (3)(b), the date of the amalgamation.                  

(5) An establishment accepted by the scheme manager ceases to be an accepted school from the date specified in a written notice                     given to its proprietor by the scheme manager.                  

(6) A notice under sub-paragraph (5) may be given if—

(a)the proprietor of the establishment makes a written application to the scheme manager;                  

(b)the proprietor fails to comply with any provision of these Regulations or of TSAVCR 1994;                  

(c)the establishment ceases to be an establishment mentioned in sub-paragraph (3);                  

(d)where a guarantee was previously provided to the scheme manager, either the guarantee lapses, or because of a change in circumstances,                        the scheme manager considers that the guarantee is insufficient;                  

(e)where the proprietor of the establishment is an individual or a number of individuals, that individual or one of those individuals                        is an undischarged bankrupt or is the subject of a bankruptcy restrictions order or an interim order under Schedule 4A to                        IA 1986 F71; or                  

(f)where the proprietor of the establishment is a company—                  

(i)a proposal for a voluntary arrangement has been made or approved in relation to the company under Part 1 of IA 1986;                  

(ii)an administration application has been made or a notice of intention to appoint an administrator has been filed with the court                        or an administrator has been appointed for the company under Schedule B1 to IA 1986 F72;                  

(iii)a receiver, manager or administrative receiver has been appointed for the company under Part 3 of IA 1986;                  

(iv)a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been                        passed in relation to the company under Part 4 or 5 of IA 1986; or                  

(v)notice has been received that the company may be struck off the register of companies or an application to strike it off has                        been made under Part 31 of CA 2006.                  

(7) The proprietor of an accepted school must immediately give written notice to the scheme manager if—

(a)there is a change of proprietor; or                  

(b)any of the events mentioned in sub-paragraph (6)(e) or (f) occurs.                  

F692008 c.25

F70See Part 2 of Schedule 1 of the European Communities Act 1972 (c.68) for the meaning of “member State”.

F71Schedule 4A was inserted by the Enterprise Act 2002 (c.40), **Schedule 20**.

F72Schedule B1 was inserted by the Enterprise Act 2002 (c.40), **Schedule 16**.

##### Accepted function providersE+W

3.—(1) A function provider is accepted under this paragraph in respect of a function or service if the scheme manager gives it a                     written notice specifying—                  

(a)that function or service, and the local authority to which the function or service relates; and                  

(b)the date on which it becomes accepted in respect of that function or service, which must be a date agreed between the scheme                        manager and the function provider.                  

(2) A function provider may be accepted only if—

(a)it makes a written application to the scheme manager specifying the function or service in respect of which it wishes to be                        accepted; and                  

(b)a guarantee is provided to the scheme manager.                  

(3) The functions or services in respect of which a function provider may be accepted are—

(a)a function which it performs on behalf of a local authority in accordance with a direction under section 497A(4) F73 of EA 1996;                  

(b)an education function of a local authority which it is nominated to exercise under section 497A(4A) F74 of EA 1996 or section 15(6) of the Local Government Act 1999 F75;                  

(c)a service which it provides or makes available under a best value arrangement for the purposes of, or in connection with,                        the exercise of an education function of a local authority.                  

(4) A function provider who immediately before 1st April 2015 was accepted under regulation 14 of TPR 2010 in respect of a function                     or service is treated as accepted under this paragraph in respect of that function or service.                  

(5) A function provider accepted under this paragraph ceases to be so accepted in respect of such functions and services, and                     from such date, as the scheme manager may specify in a written notice given to the function provider by the scheme manager.                  

(6) A notice under sub-paragraph (5) may be given if—

(a)the function provider makes a written application to the scheme manager;                  

(b)the function provider fails to comply with any provision of these Regulations or TSAVCR 1994;                  

(c)where a guarantee was previously provided to the scheme manager, either the guarantee lapses or because of a change in circumstances                        the scheme manager considers that the guarantee is insufficient;                  

(d)a proposal for a voluntary arrangement has been made or approved in relation to the function provider under Part 1 of IA 1986;                  

(e)an administration application has been made, a notice of intention to appoint an administrator has been filed with the court                        or an administrator has been appointed for the function provider under Schedule B1 to IA 1986;                  

(f)a receiver, manager or administrative receiver has been appointed for the function provider under Part 3 of IA 1986;                  

(g)a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been                        passed in relation to the function provider under Part 4 or 5 of IA 1986; or                  

(h)notice has been received that the function provider may be struck off the register of companies or an application to strike                        it off has been made under Part 31 of CA 2006.                  

(7) A function provider accepted under this paragraph must give written notice to the scheme manager immediately if any of the                     events mentioned in sub-paragraph (6)(d) to (h) occurs.                  

F73Section 497A was inserted by the School Standards and Framework Act 1998 (c.31), **section 8**.

F74Subsection (4A) was inserted by the Education Act 2002 (c.32), **section 60**.

F751999 c.27.

#### CHAPTER 2E+WFair Deal transfers

##### InterpretationE+W

4.  In this Chapter—                  

“contracting scheme employer” means an employer mentioned in paragraph 9(c) (governing body of a school maintained by a local authority), 10 (Academy)                     or 13 (special school not maintained by a local authority) who is a party to a Participation Agreement;                  

“Fair Deal transfer” means a TUPE transfer of employment described in a Participation Agreement;                  

“Fair Deal transfer date” means the date on which a Fair Deal transfer has effect;                  

“guarantee” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the scheme manager in respect                     of sums due from an accepted employer under these Regulations and TSAVCR 1994;                  

“Participation Agreement” means a contractual agreement between the scheme manager, a contracting scheme employer and an accepted employer relating                     to participation in this scheme; and                  

“transferred services” means services specified in the description of employment in the Participation Agreement.                  

##### Meaning of “accepted member”E+W

5.—(1) A person (P) is an accepted member of this scheme if sub-paragraphs (2), (3) and (4) apply.                  

(2) Immediately before the Fair Deal transfer date P was employed—

(a)under a contract of employment and subject to existing Fair Deal arrangements; or                  

(b)by a contracting scheme employer to undertake eligible employment.                  

(3) Immediately before and on the Fair Deal transfer date P is employed to undertake the same employment described in a Participation                     Agreement.                  

(4) After the Fair Deal transfer date P is employed to undertake employment described in that Participation Agreement.

(5) P ceases to be an accepted member from the date P ceases to satisfy sub-paragraph (1).

##### Meaning of “accepted employer”E+W

6.  An accepted employer in respect of transferred services is an employer other than an employer mentioned in section 1 of the                     Local Government Act 1999 F76 who—                  

(a)is a party to a contract for services with a contracting scheme employer under which at least one employee, on and after the                        fair deal transfer date, is an accepted member;                  

(b)is a party to a Participation Agreement; and                  

(c)is not the subject of a written notice of cessation as an accepted employer under paragraph 8(1).                  

F761999 c.27.

##### Obligations of an accepted employerE+W

7.  An accepted employer must—                  

(a)provide the scheme manager with a guarantee if requested by the scheme manager;                  

(b)give written notice to the scheme manager immediately if any of the events in paragraph 8(2)(c) to (g) occurs.                  

##### Ceasing to be an accepted employerE+W

8.—(1) An employer (E) ceases to be an accepted employer on the date specified in a written notice given by the scheme employer under                     this paragraph.                  

(2) A notice may be given if—

(a)E fails to comply with any provision of these Regulations or TSAVCR 1994;                  

(b)the scheme manager considers that a guarantee provided under this Chapter is insufficient because—                  

(i)the guarantee lapses, or                  

(ii)there is a change in circumstances;                  

(c)a proposal for a voluntary arrangement has been made or approved in relation to E under Part 1 of IA 1986;                  

(d)an administration application has been made, a notice of intention to appoint an administrator has been filed with the court                        or an administrator has been appointed for E under Schedule B1 to IA 1986 F77;                  

(e)a receiver, manager or administrative receiver has been appointed for E under Part 3 of IA 1986;                  

(f)a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been                        passed in relation to E under Part 4 or 5 of IA 1986; or                  

(g)notice has been received that E may be struck off the register of companies or an application to strike it off has been made                        under Part 31 of CA 2006.                  

(3) The Secretary of State may by further written notice to E determine that E resumes accepted employer status with effect from                     a future date stated in the notice.                  

F77Schedule B1 was inserted by the Enterprise Act 2002 (c.40), **Schedule 16**.

### **PART 2**E+WService pensionable without election

9.  Teacher employed by—E+W

(a)a local authority in connection with its education functions;

(b)a local authority in a school which the authority maintains;

(c)the governing body of a school maintained by a local authority; or

(d)an institution providing further or higher education (or both) maintained by a local authority.

10.  Teacher employed—E+W

(a)in an Academy, city technology college or a city college for the technology of the arts by the proprietor of such an establishment;

(b)in a 16 to 19 Academy by the proprietor of the Academy;

(c)by a Multi-Academy Trust; or

(d)by the sponsor of a proposed Academy, and in this paragraph “sponsor of a proposed Academy” means any person who approaches the Secretary of State expressing an interest in establishing and maintaining an Academy                        with a view to creating a charitable company limited by guarantee and which company it is proposed will then enter into an                        Academy agreement as defined in section 1 of the Academies Act 2010 F78.

F782010 c.32.

11.  Teacher employed by the proprietor of, or anyone else concerned in the management of, an accepted school (other than a teacher                     employed at an accepted school which is a member of COBIS and is located in a member State other than the United Kingdom).E+W

12.  Teacher employed by a function provider in connection with the performance of a function or service in respect of which the                     function provider is accepted in accordance with paragraph 3 (accepted function providers).E+W

13.  Teacher employed by the proprietor of, or anyone else concerned in the management of, a special school that is not maintained                     by a local authority.E+W

14.  Teacher employed by the governing body (as defined in section 90 of the Further and Higher Education Act 1992 F79) of an institution—E+W

(a)which is within the further or the higher education sector (as defined in section 91 of that Act); and

(b)to which grants are made by the Secretary of State or the Welsh Ministers, a body to which grants are made by the Secretary                        of State or the Welsh Ministers, other than—

(i)a university or a college of a university,

(ii)the Royal College of Art, and

(iii)the establishment which, when teachers were employed there for the purposes of the Ministry of Defence, was known as Welbeck,                        the Defence Sixth Form College.

F791992 c.13.

15.  Teacher employed by a university established on or after 6th May 1992 which, immediately before it became such fell within                     paragraph 14(a) or (b).E+W

16.  Teacher employed by the proprietor of—E+W

(a)a community home as defined in section 53 of the Children Act 1989 F80;

(b)a voluntary home as defined in section 60 F81 of that Act; or

(c)a home provided in pursuance of arrangements under section 82(5) of that Act.

F801989 c.41.

F81Section 60 was amended by the Care Standards Act 2000 (c.14), **Schedule 4**.

17.  Teacher employed by a local authority or by a voluntary organisation in an establishment which provides facilities under arrangements                     approved under section 66 of the Powers of Criminal Courts (Sentencing) Act 2000 F82.E+W

F822000 c.6.

18.  Teacher employed by the Secretary of State or the Welsh Ministers in a special hospital provided by the Secretary of State                     or the Welsh Ministers under section 4 of NHSA 2006 or section 4 of NHSWA 2006.E+W

19.  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—E+W

(a)by the Secretary of State or the Welsh Ministers in a hospital provided by the Secretary of State or the Welsh Ministers under                        NHSA 2006 or NHSWA 2006;

(b)by a voluntary organisation to which financial assistance is given by a local authority or facilities are made available under                        section 12 of NHSA 2006 or section 10 of NHSWA 2006; or

(c)by a local authority in the exercise of its functions under paragraph 2 of Schedule 20 to NHSA 2006 or paragraph 2 of Schedule                        16 to NHSWA 2006.

20.  Teacher employed by the Secretary of State in a European School.E+W

21.  Organiser employed as a youth and community worker by a local authority in the exercise of its functions under sections 15,                     507A, 507B F83 or 508 of EA 1996.E+W

F83Sections 507A and 507B were inserted by the Education and Inspections Act 2006 (c.40), **section 6**.

22.  Teacher employed by the Field Studies Council.E+W

23.  An accepted member employed by an accepted employer.E+W

### **PART 3**E+WService pensionable on election

24.  Teacher employed by the proprietor of an institution for the further education and training of disabled persons.E+W

25.  Teacher, supervisor or youth worker employed for the purposes of the Ministry of Defence in service with, or for purposes                     connected with, the armed forces of the Crown unless—E+W

(a)service in the employment is pensionable under the Public Service (Civil Servants and Others) Pensions Regulations 2014; or

(b)the teacher, supervisor or youth worker was engaged outside the United Kingdom and was not previously in eligible employment.

26.  Organiser employed by—E+W

(a)a diocesan board of education established under the Diocesan Boards of Education Measure 1991 F84;

(b)a body affiliated to the National Open College Network;

(c)a Roman Catholic diocesan schools commission;

(d)the Inspiring Futures Foundation;

(e)the Royal National College for the Blind;

(f)the Stapleford Centre.

F841991 No. 2.

### **PART 4**E+WService pensionable on election with employer consent

27.  Teacher employed in, or in connection with, an establishment for providing social or physical training for which grants are                     made by the Secretary of State, Sport England, Sport Wales or UK Sport, whose principal duty is to attend the establishment                     and provide the training or supervise its provision.E+W

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

29.  Organiser employed by—E+W

(a)Sport England;

(b)Sport Wales;

(c)UK Sport; or

(d)any other person, other than a local authority, to whom grants—

(i)are made by any of those bodies or by a local authority in exercise of education functions; or

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

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

30.  Organiser employed as a youth and community worker by a body to which grants are made by a local authority in the exercise                     of its functions under sections 15 or 508 of EA 1996.E+W

31.  Organiser employed by—E+W

(a)Action for Blind People;

(b)the Association of Christian Teachers;

(c)the Association of Business Schools;

(d)the Assessment and Qualification Alliance;

(e)the City and Guilds of London Institute;

(f)the Catholic Education Service;

(g)EMFEC;

(h)the Field Studies Council;

(i)Macmillan Cancer Support;

(j)the North East Religious Learning Resources Centre Limited;

(k)SCOPE.

32.  Teacher employed by a university who was employed by an institution mentioned in paragraph 9(d) or 14 immediately before the                     institution became part of the university.E+W

33.  Teacher or organiser employed by a body formerly falling within paragraph 28, 29 or 30 which is a non-profit-making body whose                     principal source of funding is fees paid by a local authority.E+W

34.  Teacher employed by the proprietor of, or anyone else concerned in the management of, an accepted school which is a member                     of COBIS and located in a member State other than the United Kingdom.E+W

 Regulations 3, 46 and 186

## SCHEDULE 2E+WScheme flexibilities

### **PART 1**E+WGeneral

#### Interpretation of ScheduleE+W

1.  In this Schedule—                  

“additional pension contributions” means contributions for an additional pension;                  

“additional pension election” means an election under Chapter 1 of Part 2 of this Schedule;                  

“amount of accrued extra earned pension” means the amount of accrued earned pension attributable to a faster accrual election;                  

“amount of extra pension” has the meaning given in paragraph 2;                  

“buy-out contributions” means contributions to buy out the standard reduction;                  

“buy-out election” means an election under Chapter 1 of Part 4 of this Schedule;                  

“buy-out value” means an amount determined or re-determined by the scheme manager in accordance with Part 4 of this Schedule;                  

“contributions” means—                  

additional pension contributions;

faster accrual contributions; or

buy-out contributions;

“contributions payment period”, for contributions paid monthly, means the period which—

begins on the start date; and

ends on the date on which the final monthly payment is due;

“election” means—                  

an additional pension election;

a faster accrual election; or

a buy-out election;

“faster accrual contributions” means contributions for a faster accrual rate;                  

“faster accrual election” means an election under Chapter 1 of Part 3 of this Schedule;                  

“faster accrual rate”, in relation to P's pensionable earnings, means 1/45th, 1/50th or 1/55th;                  

“monthly payments”, in respect of an election, means contributions paid monthly;

“overall amount” means the overall amount of extra pension as defined in paragraph 3;                  

“refund period”, in relation to additional pension contributions, means the period ending one year after the start date;                  

“start date”—

for contributions paid by lump sum, means the date on which the scheme manager receives the lump sum; and

for monthly payments, means the first day of the second month after the month in which the election is accepted.

#### Meaning of “amount of extra pension”E+W

2.  The amount of extra pension for a person (P) at any given time is the sum of the following—                  

(a)the amount of accrued extra earned pension (if any) at that time;                  

(b)the amount of accrued additional pension (if any) at that time;                  

(c)the buy-out value at that time, if P has elected to buy out the standard reduction.                  

#### Meaning of “overall amount of extra pension”E+W

3.—(1) The overall amount of extra pension is—                  

(a)£6,500 for any financial year ending before 1st April 2016; and                  

(b)for any financial year beginning on or after that date—                  

(i)an amount determined by the Treasury for that financial year; or                  

(ii)if the Treasury has not determined an amount for that financial year, the amount calculated under sub-paragraph (2).                  

(2) If the Treasury has not determined an amount under sub-paragraph (1)(b)(i) for any financial year, the overall amount for                     that financial year is the amount to which the annual rate of a pension of an amount equal to the overall amount for the previous                     financial year would have been increased under PIA 1971 if—                  

(a)that pension were eligible to be so increased; and                  

(b)the beginning date for that pension were the first day of the previous financial year.                  

#### Limit on electionsE+W

4.—(1) The scheme manager must not accept an additional pension election or a faster accrual election in relation to a member (P)                     at any time if—                  

(a)the scheme manager has accepted a buy-out election from P; and                  

(b)the buy-out value at that time exceeds the overall amount of extra pension at that time.                  

(2) The scheme manager must not accept an additional pension election or a faster accrual election that would result in the amount                     of extra pension exceeding the overall amount of extra pension.                  

#### Actuarial adviceE+W

5.  The scheme manager must take advice from the scheme actuary before determining any amount under this Part.                  

### **PART 2**E+WAdditional pension election

#### CHAPTER 1E+WMaking an additional pension election

##### Election to pay contributions for additional pensionE+W

6.—(1) This paragraph applies in relation to a member of this scheme (P) who—                  

(a)is in pensionable service under this scheme; and                  

(b)has not reached normal pension age under this scheme.                  

(2) P or, with P's consent, P's employer may elect to pay contributions for an additional pension in respect of P (“additional                     pension election”).                  

(3) An additional pension election—

(a)must state whether the election is for—                  

(i)an additional (self only) pension; or                  

(ii)an additional (self only) pension and an additional (surviving adult) pension; and                  

(b)must specify the annual rate of additional (self only) pension to be paid with P's retirement pension.                  

##### Annual rate of additional (self only) pensionE+W

7.  The annual rate of additional (self only) pension specified in an additional pension election must be a multiple of—                  

(a)£250; or                  

(b)any other amount determined by the scheme manager.                  

##### Lump sum or monthly paymentsE+W

8.—(1) An employer's contributions for additional pension must be made by lump sum.                  

(2) A member's additional pension contributions may be paid by lump sum or by monthly payments.

##### Making an additional pension electionE+W

9.—(1) An additional pension election by a member (P) must be made by written notice to the scheme manager stating whether additional                     pension contributions are to be paid—                  

(a)as a lump sum, or                  

(b)by monthly payments.                  

(2) If monthly payments are to be made, the notice must state the number of monthly payments, which—

(a)must not be more than 240; and                  

(b)must end before P reaches normal pension age under this scheme;                  

(3) If P is in pensionable service in relation to more than one employment, the notice must specify which employer is to deduct                     the contributions.                  

(4) The notice must be accompanied by a declaration by P that P is in normal health.

(5) The scheme manager may ask P or P's employer to provide further information.

##### Accepting an additional pension electionE+W

10.—(1) The scheme manager may accept an additional pension election by giving written notice to—                  

(a)the member (P); and                  

(b)P's employer.                  

(2) For the purpose of these Regulations, an additional pension election is accepted when P receives notice from the scheme manager.

#### CHAPTER 2E+WAmount of additional pension contributions

##### Determination of contributions payableE+W

11.—(1) The scheme manager must determine the amount to be paid as a lump sum or as a monthly payment.                  

(2) The amount of the lump sum or monthly payment must reflect the cost of paying an additional (self only) pension and any additional                     (surviving adult) pension.                  

(3) The scheme manager may determine different amounts of lump sum or monthly payment—

(a)for different classes or descriptions of member; and                  

(b)depending on whether the additional pension election is for—                  

(i)an additional (self only) pension; or                  

(ii)an additional (self only) pension and an additional (surviving adult) pension.                  

(4) The scheme manager—

(a)may determine the amount of a monthly payment by reference to the length of the contributions payment period; and                  

(b)may exercise the functions under this paragraph so as to re-determine the amount of a monthly payment during the contributions                        payment period.                  

(5) Unless the scheme manager re-determines the amount, monthly payments following a gap in service during which an ill-health                     pension was payable are the same as before the gap.                  

#### CHAPTER 3E+WAdditional pension contributions paid by lump sum

##### Lump sum contributions: payment of contributions and credit of additional pensionE+W

12.—(1) This paragraph applies to a member (P)—                  

(a)in respect of whom an additional pension election is accepted; and                  

(b)whose notice of election states that contributions are to be paid by lump sum.                  

(2) P's additional pension account is to be credited with an amount equal to the annual rate of additional (self only) pension                     stated in the notice of election (“the amount of additional pension”) if the lump sum contribution is paid within one month                     after the additional pension election is accepted.                  

(3) P's additional pension account is not to be credited with the amount of additional pension unless the lump sum contribution                     is paid within that time.                  

##### Refund of lump sum contributionE+W

13.—(1) This paragraph applies if a member (P) has paid a lump sum contribution for additional pension.                  

(2) The lump sum contribution must be refunded if, before the end of the refund period—

(a)P dies;                  

(b)an ill-health pension becomes payable to P; or                  

(c)P leaves all pensionable service and P is neither qualified nor re-qualified for retirement benefits in respect of that service.                  

#### CHAPTER 4E+WAdditional pension contributions by monthly payments

##### Application of ChapterE+W

14.  This Chapter applies to a member (P)—                  

(a)in respect of whom an additional pension election is accepted; and                  

(b)whose notice of election states that contributions are to be paid by monthly payments.                  

##### Payment of contributionsE+W

15.—(1) P must—                  

(a)make the first monthly payment on or before the start date; and                  

(b)continue to make the monthly payments until the date on which the final monthly payment is due.                  

(2) The contributions payment period must end before P reaches normal pension age.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay                     the re-determined amount from the beginning of the next financial year.                  

(4) P is taken to revoke an additional pension election if—

(a)a monthly payment is missed; and                  

(b)the payment is not made within 3 months after P receives a written demand from the scheme manager.                  

##### Member leaves all pensionable service before end of contributions payment periodE+W

16.—(1) This paragraph applies if—                  

(a)P leaves all pensionable service before the end of the contributions payment period; and                  

(b)P does not pay the scheme manager a lump sum of an amount determined by the scheme manager within the period of 2 months beginning                        with the last day of pensionable service.                  

(2) If this paragraph applies—

(a)monthly payments for additional pension cease to be payable at the end of the period of one month beginning with the last                        day of pensionable service (“the one-month period”); and                  

(b)the amount of accrued additional pension as at the last day of pensionable service is an amount determined by the scheme manager.                  

(3) For the purpose of this paragraph, P is not taken to have left all pensionable service if—

(a)during the one-month period, P begins a period of non-pensionable sick leave; and                  

(b)during the period of non-pensionable sick leave, an ill-health pension becomes payable to P.                  

##### Retirement pension (other than ill-health pension) becomes payable before end of contributions payment periodE+W

17.—(1) This paragraph applies if any of the following retirement pensions becomes payable to P before the end of the contributions                     payment period—                  

(a)an age retirement pension;                  

(b)a phased retirement pension (if P has elected to receive additional pension with it);                  

(c)a premature retirement pension;                  

(d)an early retirement pension.                  

(2) If this paragraph applies—

(a)monthly payments for additional pension cease to be payable on the entitlement day for that pension; and                  

(b)the amount of accrued additional pension as at the relevant last day is an amount determined by the scheme manager.                  

#### CHAPTER 5E+WRevocation and refund

##### Revoking an additional pension electionE+W

18.—(1) P may revoke an additional pension election at any time before the end of the contributions payment period.                  

(2) A revocation must be by written notice to the scheme manager.

(3) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

(4) P is taken to revoke an additional pension election if—

(a)P leaves all pensionable service before the end of the contributions payment period; and                  

(b)P is qualified or re-qualified for retirement benefits in respect of that service.                  

(5) On the date of revocation—

(a)monthly payments for additional pension under that election cease to be payable; and                  

(b)the amount of accrued additional pension as at that date is an amount determined by the scheme manager.                  

##### Ill-health pension becomes payable before end of contributions payment periodE+W

19.—(1) This regulation applies if an ill-health pension becomes payable to a member (P) before the end of the contributions payment                     period for an additional pension election.                  

(2) If an ill-health pension becomes payable to P before the end of the refund period—

(a)any monthly payments that have been made under that additional pension election must be refunded to P; and                  

(b)the amount of accrued additional pension as at the last day of pensionable service must be adjusted by deducting the amount                        of accrued additional pension attributable to that election.                  

(3) If an ill-health pension becomes payable to P after the end of the refund period—

(a)the monthly payments under the additional pension election are treated as being paid until the earlier of—                  

(i)the end of the contributions payment period for that election; or                  

(ii)the day on which an ill-health pension ceases to be payable under regulation 114; and                  

(b)for the purpose of calculating the annual rate of ill-health pension, the amount of accrued additional pension is—                  

(i)if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional                        pension calculated under regulation 46 or 47 as at the last day of pensionable service; or                  

(ii)if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions                        paid or treated as being paid; and                  

(4) If P re-enters pensionable service when an ill-health pension ceases to be payable under regulation 114, P may choose to resume                     the monthly payments.                  

##### Death in service before end of contributions payment periodE+W

20.—(1) This paragraph applies on the death of a member (D)—                  

(a)whose additional pension election is for an additional (self only) pension and an additional (surviving adult) pension;                  

(b)who dies in service within the meaning of Part 6 before the end of the contributions payment period for that election.                  

(2) If D dies before the end of the refund period—

(a)the monthly payments must be refunded to D's surviving adult; and                  

(b)the additional pension account must be closed.                  

(3) If D dies after the end of the refund period—

(a)the monthly payments cease to be payable as at the date of D's death; and                  

(b)for the purpose of calculating a survivor's pension, the amount of accrued additional pension is—                  

(i)if the declaration that accompanied the additional pension election was made in good faith, the amount of accrued additional                        pension calculated under regulation 46 or 47 as at the day of D's death; or                  

(ii)if that declaration was not made in good faith, an amount determined by the scheme manager having regard to the contributions                        paid or treated as being paid.                  

##### Member leaves all pensionable service before qualifying for retirement benefitsE+W

21.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement                     benefits in respect of that service.                  

(2) On an application by P for a repayment of the balance of contributions—

(a)any monthly payments made before the last day of pensionable service must be refunded to P; and                  

(b)the additional pension account must be closed.                  

### **PART 3**E+WFaster accrual election

#### CHAPTER 1E+WMaking the election

##### Faster accrual electionE+W

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

(a)is in pensionable service under this scheme in relation to an employment; and                  

(b)has not reached normal pension age under this scheme.                  

(2) P may elect, in relation to an employment, to pay contributions to accrue earned pension at a faster accrual rate in any financial                     year (“faster accrual election”).                  

(3) A faster accrual election must state the faster accrual rate which is to apply to P's pensionable earnings in that employment                     for that financial year.                  

(4) A faster accrual election must be made—

(a)if P was not in pensionable service in relation to that employment in that financial year, within one month after P enters                        pensionable service in relation to that employment; or                  

(b)otherwise, in the financial year before the financial year to which it relates.                  

(5) A faster accrual election has effect as follows—

(a)if sub-paragraph (4)(a) applies, from one month after the election is received by the scheme manager; or                  

(b)otherwise, from the start of the financial year to which it relates.                  

(6) A faster accrual election ceases to have effect at the end of the financial year to which it relates unless it is revoked                     before then.                  

##### Making a faster accrual electionE+W

23.—(1) A faster accrual election must be made by written notice to the scheme manager.                  

(2) The notice of election must specify—

(a)if the member (P) is in more than one eligible employment, the name of the employer who is to deduct the contributions;                  

(b)P's name;                  

(c)P's date of birth;                  

(d)P's annual amount of pensionable earnings for that employment in the financial year to which the faster accrual election relates.                  

(3) The scheme manager may request further information to be provided.

##### Accepting a faster accrual electionE+W

24.—(1) The scheme manager may accept a faster accrual election by giving written notice to—                  

(a)the member (P); and                  

(b)P's employer.                  

(2) For the purpose of these Regulations, a faster accrual election is accepted when P receives notice from the scheme manager.

#### CHAPTER 2E+WPayment of contributions

##### Determination of contributions payableE+W

25.  The scheme manager must determine the amount of the monthly payment to be paid in respect of a faster accrual election.                  

##### Payment of contributionsE+W

26.—(1) A member (P)—                  

(a)must make the first monthly payment within 2 months after the end of the month in which the faster accrual election is accepted;                        and                  

(b)must continue to make the monthly payments until the end of the contributions payment period.                  

(2) The final monthly payment is due in the last month of the financial year to which the faster accrual election relates.

(3) P is taken to revoke a faster accrual election if—

(a)a monthly payment is missed; and                  

(b)the payment is not made within 3 months after P receives a written demand from the scheme manager.                  

#### CHAPTER 3E+WRevocation and refund

##### Revoking a faster accrual electionE+W

27.—(1) A member (P) may revoke a faster accrual election at any time before the end of the contributions payment period.                  

(2) A revocation must be by written notice to the scheme manager.

(3) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

(4) P is taken to revoke a faster accrual election if P leaves pensionable service in the employment to which the election relates                     before the end of the contributions payment period.                  

(5) If P revokes or is taken to revoke a faster accrual election and P is not entitled to be repaid the balance of contributions                     under regulation 189—                  

(a)P's monthly payments cease to be payable on the date of revocation; and                  

(b)P's active member's account (or if P has left all pensionable service, P's deferred member's account or pensioner member's                        account) must be credited with an amount determined by the scheme manager.                  

(6) If P revokes or is taken to revoke a faster accrual election and P is entitled to be repaid the balance of contributions under                     regulation 189—                  

(a)P's monthly payments cease to be payable on the date of revocation; and                  

(b)P's rights under this scheme are extinguished.                  

##### Member leaves all pensionable service before qualifying for retirement benefitsE+W

28.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement                     benefits in respect of that service.                  

(2) On an application by P for a repayment of the balance of contributions, any monthly payments made by P before the last day                     of pensionable service must be refunded to P.                  

### **PART 4**E+WElection to buy out the standard reduction

#### CHAPTER 1E+WMaking a buy-out election

##### Eligible to make buy-out electionE+W

29.—(1) A member (P) who has a normal pension age over 65 may elect to pay contributions to buy out the standard reduction (“buy-out                     election”) for a period of up to 3 years.                  

(2) A buy-out election has effect from the day on which the scheme manager accepts the election.

(3) A buy-out election ceases to have effect when the earliest of the following occurs—

(a)P reaches normal pension age;                  

(b)a retirement pension other than a phased retirement pension becomes payable to P;                  

(c)P revokes the election or is taken to revoke the election.                  

(4) A buy-out election may only be made within 6 months after P enters pensionable service under this scheme.

(5) When making a buy-out election, P must be—

(a)in pensionable service; and                  

(b)under normal pension age.                  

(6) P may by written notice to the scheme manager vary a buy-out election if P's normal pension age changes before a retirement                     pension becomes payable to P.                  

##### Making a buy-out electionE+W

30.—(1) A buy-out election made by a member (P) must state the number of years in respect of which the standard reduction is to be                     bought out.                  

(2) A buy-out election must be made by written notice to the scheme manager.

(3) The notice of election must specify—

(a)if P is in more than one eligible employment, the name of the employer who is to deduct the contributions;                  

(b)P's name;                  

(c)P's date of birth;                  

(d)P's normal pension age;                  

(e)the date on which P entered pensionable service;                  

(f)P's annual rate of pensionable earnings for that employment.                  

(4) The scheme manager may ask P to provide further information.

##### Accepting a buy-out electionE+W

31.—(1) The scheme manager may accept a buy-out election by giving written notice to the person who made the election (P).                  

(2) The notice must state the buy-out value.

(3) A buy-out election is accepted when P receives notice that the scheme manager has accepted the election.

##### Determination of the buy-out valueE+W

32.—(1) The buy-out value is an amount determined by the scheme manager.                  

(2) If an additional pension election or a faster accrual election is subsequently made in respect of a person (P), the scheme                     manager may—                  

(a)re-determine the buy-out value; and                  

(b)send a written notice to P stating the re-determined buy-out value.                  

#### CHAPTER 2E+WPayment of buy-out contributions

##### Determination of contributions payableE+W

33.—(1) The scheme manager must determine the amount of the monthly payments to be paid in respect of a buy-out election.                  

(2) The scheme manager—

(a)may determine the amount of the monthly payments by reference to the number of years stated in the buy-out election and the                        length of the contributions payment period; and                  

(b)may exercise the functions under this paragraph so as to re-determine the amount of the monthly payments during the contributions                        payment period.                  

(3) Unless the scheme manager re-determines the amount, monthly payments following a gap in service not exceeding 5 years are                     the same as before the gap.                  

##### Payment of buy-out contributionsE+W

34.—(1) A member (P) must—                  

(a)make the first monthly payment within 2 months after the end of the month in which a buy-out election is accepted; and                  

(b)continue to make the monthly payments until the end of the contributions payment period.                  

(2) The final monthly payment is due in the month before the buy-out election has effect.

(3) If the scheme manager re-determines the amount of the monthly payment during the contributions payment period, P must pay                     the re-determined amount from the beginning of the next financial year.                  

(4) P is taken to revoke a buy-out election if—

(a)a monthly payment is missed; and                  

(b)the payment is not made within 3 months after P receives a written demand from the scheme manager.                  

##### Monthly payments during gap in serviceE+W

35.—(1) A member (P) who has a gap in service during the contributions payment period may choose to resume monthly payments on re-entering                     pensionable service.                  

(2) P is taken to revoke a buy-out election if P's gap in service exceeds 5 years.

#### CHAPTER 3E+WRevocation and refund

##### Revoking a buy-out electionE+W

36.—(1) A member (P) may revoke a buy-out election at any time before the end of the contributions payment period.                  

(2) If P revokes a buy-out election or is taken to revoke a buy-out election—

(a)P's monthly payments cease to be payable on the date of revocation; and                  

(b)when a retirement pension becomes payable to P, the standard reduction applies to such proportion of the maximum three year                        period referred to in regulation 73 as is determined by the scheme manager.                  

(3) In determining the proportion, the scheme manager must take into account—

(a)the number of monthly payments made; and                  

(b)the number of years stated in the buy-out election.                  

(4) If P revokes the election or is taken to revoke a buy-out election, P may not make a subsequent buy-out election.

(5) A revocation must be by written notice to the scheme manager.

(6) A revocation has effect from the date it is received by the scheme manager (“date of revocation”).

##### Member leaves all pensionable service before qualifying for retirement benefitsE+W

37.—(1) This paragraph applies if a member (P) leaves all pensionable service under this scheme before P is qualified for retirement                     benefits in respect of that service.                  

(2) On an application by P for a repayment of the balance of contributions, any monthly payments made by P before the last day                     of pensionable service must be refunded to P.                  

 Regulation 224

## SCHEDULE 3E+WTransitional provisions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

## Explanatory Note

(This note is not part of the Regulations)

These Regulations establish a career average re-valued earnings scheme for the payment of pensions and other benefits to and                        in respect of teachers in England and Wales.                     

Part 2 contains governance provisions including delegation of the scheme manager's functions and establishment of the Teachers'                        Pension Scheme Pension Board and the Teachers' Pension Scheme Advisory Board.                     

Part 3 provides for scheme membership. It sets out the key concepts of eligible employment and pensionable earnings. It contains                        eligibility and auto-enrolment provisions.                     

Part 4 provides for the establishment of a member's pension accounts in relation to a continuous period of pensionable service                        under this scheme.                     

Chapter 2 explains how the amount of accrued pension is calculated.

Chapter 3 provides for the establishment of pension accounts.

Chapter 4 provides for the establishment of the active member's account. This Chapter provides for the proportion of pensionable                        earnings accrued as pension to be revalued each year until the member leaves pensionable service.                     

Chapter 5 provides for the establishment of additional pension accounts.

Chapter 6 provides for deferred members' accounts and explains how the provisional amount of deferred pension is calculated.

Chapter 7 provides for the establishment of pensioner members' accounts.

Chapter 8 provides for the establishment of pension credit members' accounts.

Part 5 provides for a member's entitlement to payment of retirement benefits. It sets out the key concept of qualifying service.

Part 6 provides for death grants and survivors' benefits.

Part 7 provides for benefits for pension credit members.

Part 8 provides for the payment and calculation of pension benefits. It also provides for the recovery and suspension of benefits                        in certain cases.                     

Part 9 provides for the payment of contributions by members and employers and also the repayment of a member's contributions                        after short-service.                     

Part 10 provides for the payment and receipt of transfer values including club transfers.

Part 11 contains supplementary provisions on matters including employment records and the provision of information between                        the scheme and members.                     

Schedule 1 describes eligible employment.

Schedule 2 makes provision for pension flexibilities.

Schedule 3 makes transitional provision.

An impact assessment has not been prepared for this instrument as no impact on the costs of business or the voluntary sector                        is foreseen.