Source: http://www.legislation.gov.uk/ssi/2015/146/body/made
Timestamp: 2018-01-18 02:20:32
Document Index: 83185064

Matched Legal Cases: ['ART 2', 'art 2', 'ART 3', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'art 4', 'ART 4', 'ART 5', 'art 4', 'art 4']

The Teachers’ Pension Scheme (Consequential Provisions) (Scotland) Regulations 2015
2015 No. 146
Citation, commencement and expiry
1.—(1) These Regulations may be cited as the Teachers’ Pension Scheme (Consequential Provisions) (Scotland) Regulations 2015.
(2) With the exception of regulation 10, these Regulations come into force on 1st April 2015.
(3) Regulation 10 comes into force on the same day as paragraph 38 of Schedule 13 to the Pensions Act 2014(1) comes into force, and on that day regulation 9 ceases to have effect.
“the 1993 Act” means the Pension Schemes Act 1993(2);
“the 2013 Act” means the Public Service Pensions Act 2013;
“the new scheme” means the Scottish Teachers’ Pension Scheme 2015 established by regulation 2 of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014(3); and
“the old scheme” means the scheme constituted by the Teachers’ Superannuation (Scotland) Regulations 2005(4).
PART 2Modification of contracting-out provisions
3. This Part applies where—
(a)an election is made under section 11 (elections as to employments covered by contracting-out certificates) of the 1993 Act(5) in relation to persons who become members of the new scheme on or after 1st April 2015 and before 6th April 2016 (whether or not any of those persons are members of the old scheme); and
(b)the new scheme satisfies the requirements of section 9 (requirements for certification of schemes) of the 1993 Act(6).
4.—(1) Part 2 of the Occupational Pension Schemes (Contracting-out) Regulations 1996(7) (certification of employments) is modified as follows in its application to the new scheme.
(2) The requirements in regulation 2(1)(a) (making of elections for the issue of contracting-out certificates) and regulations 3 (notices by employers of intended election) to 5 (time for making an election) do not apply.
(3) In regulation 6 (information to be included in an election)—
(a)paragraph (1) is to be read as though, for sub-paragraphs (a) to (f), there were substituted—
“(a)the name by which the new scheme is to be known;
(b)the name by which the old scheme is known; and
(c)any other information necessary to enable the Commissioners for Her Majesty’s Revenue and Customs to identify the old scheme.”; and
(b)paragraphs (2) and (3) do not apply.
PART 3Modification of early leaver and other provisions
5. This Part applies where a person (P)—
(a)is a member of the old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act (final salary link);
(b)is a member of the new scheme by virtue of pensionable service for the new scheme; and
(c)is a person to whom paragraph 1 or 2 of Schedule 7 to the 2013 Act applies by virtue of his or her pensionable service for the new scheme, and whose final salary falls for the purposes of the old scheme to be determined by reference to that paragraph.
6.—(1) Section 15A of the 1993 Act(8) (reduction of guaranteed minimum in consequence of pension debit) is modified as follows in relation to P.
(2) In the application of that section to the old scheme, the reference in subsection (2) of that section to pensionable service under the scheme is to be taken as a reference to pensionable service either for the old scheme or for the new scheme.
Preservation of benefit
7.—(1) Chapter 1 of Part 4 of the 1993 Act (protection for early leavers: preservation of benefit under occupational scheme) is modified as follows in relation to P.
(2) In the application of that Chapter to the old scheme—
(a)in section 70(9) (interpretation), in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
(b)in section 71(1) (basic principle as to short service benefit)—
(i)the requirement for a scheme to make provision is to be taken as a requirement that either the old scheme or the new scheme must make that provision;
(ii)a reference to a transfer payment to the scheme is to be taken as a reference to a transfer payment either to the old scheme or to the new scheme;
(iii)a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
(iv)a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
and subsequent references in the Chapter to “short service benefit” are to be construed accordingly;
(c)in section 71(5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
(d)in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and
(e)in sections 72(2) (no discrimination between short service and long service beneficiaries), 74(6) and (7) (computation of short service benefit), 75(3) and (4) (credits) and 76(1) and (3) (pension increases), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
(3) In the application of that Chapter to the new scheme—
(a)in section 70, in the definitions of “relevant employment” and “long service benefit” a reference to the scheme is to be taken as a reference to either the old scheme or the new scheme;
(b)in section 71(1)—
(iii)a reference to benefit which would have been payable to P under the scheme is to be taken as a reference to benefit which would have been payable to P either under the old scheme or under the new scheme,
(c)in section 71(7)(a), the reference to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together; and
(d)in section 74(6), in relation to pensionable service which is terminated, the reference to the beginning of that service is to be taken as a reference to the beginning of pensionable service under the old scheme.
Revaluation of preserved benefit
8.—(1) Chapter 2 of Part 4 of the 1993 Act (protection for early leavers: revaluation of accrued benefits excluding guaranteed minimum payment) is modified as follows.
(2) In the application of Chapter 2 for the purpose of revaluing benefit payable to or in respect of P under the old scheme—
(a)in section 83(1)(a)(ii)(10) (scope of Chapter 2), the reference to the date on which P’s pensionable service ends is to be taken as a reference to the date on which P’s pensionable service ends in relation to the new scheme; and
(b)subsequent references in that Chapter to “the termination date” and the “pre-pension period” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions
9.—(1) Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
(2) In the application of that Chapter to P as a member of the old scheme—
(a)in section 87(1)(a)(i)(11) (general protection principle), the reference to the time when P ceases to be in contracted-out employment by reference to a scheme is to be taken as a reference to the time when P ceases to be in employment which is contracted-out by reference to the new scheme; and
(b)subsequent references to “the cessation date” are to be construed accordingly.
Protection of increases in guaranteed minimum pensions after abolition of contracting-out
10.—(1) Chapter 3 of Part 4 of the 1993 Act (protection for early leavers: protection of increases in guaranteed minimum pensions (“anti-franking”)) is modified as follows.
(a)in section 87(1)(a)(i) (general protection principle), the reference to the time when P ceases to be in pensionable service under a scheme that was, before the second abolition date, a salary-related contracted-out scheme is to be taken as a reference to the time when P ceases to be in pensionable service in relation to the new scheme; and
11.—(1) Chapter 4 of Part 4 of the 1993 Act (protection for early leavers: transfer values) is modified as follows.
(2) In the application of that Chapter to P as a member of the old scheme, in—
(a)section 93(1)(a)(12) (scope of Chapter 4);
(b)section 97(3)(a) (calculation of cash equivalents); and
(c)section 98(1A) and (3)(13) (variation and loss of rights under section 94),
a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
Transfer values regulations
12.—(1) The Occupational Pension Schemes (Transfer Values) Regulations 1996(14) are modified as follows.
(2) In the application of regulation 3 of those Regulations (rules on continuation in employment after termination of pensionable service) to P as a member of the old scheme—
(a)in paragraph (1), a reference to employment to which a scheme applies is to be taken as a reference to employment to which the new scheme applies;
(b)in paragraph (1)(a), a reference to P’s pensionable service terminating at P’s request is to be taken as a reference to P’s pensionable service in relation to the new scheme so terminating; and
(c)in paragraph (1)(b)(i), a reference to P’s pensionable service continuing until the guarantee date is to be taken as a reference to P’s pensionable service in relation to the new scheme so continuing.
(3) In the application of regulation 4 of those Regulations (right to further cash equivalent on termination of employment to which the scheme applies) to P as a member of the old scheme, in paragraphs (1), (2), (3)(a) and (4) a reference to termination of P’s employment is to be taken as a reference to termination of P’s employment to which the new scheme applies.
Cash transfers and contribution refunds
13.—(1) Chapter 5 of Part 4 of the 1993 Act(15) (protection for early leavers: cash transfers and contribution refunds) is modified as follows.
(a)in section 101AA(1) (scope of Chapter 5), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme;
(b)in section 101AA(2), a reference in the opening words and in paragraph (a) to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the old scheme or for the old and new schemes taken together; and
(c)in section 101AB(1) and (3) (right to cash transfer sum and contribution refund), 101AC(1) and (2)(a) (notification of right to cash transfer sum or contribution refund) and 101AI(7) (rights under section 101AB: definition of “reply date”), a reference to termination of P’s pensionable service is to be taken as a reference to termination of P’s pensionable service in relation to the new scheme.
(3) In the application of that Chapter to P as a member of the new scheme, in section 101AA(2) a reference in the opening words and in paragraph (a) to P’s pensionable service under the scheme is to be taken as a reference to P’s pensionable service either for the new scheme or for the old and new schemes taken together.
PART 4Modification of tax regime
14.—(1) This regulation applies to a person (P) who—
(b)is a member of the new scheme by virtue of pensionable service for the new scheme;
(c)is being paid an ill-health pension under regulation 107 (entitlement to ill-health pension) or a total incapacity pension under regulation 113 (entitlement to total incapacity pension) of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014; and
(d)has an ill-health pension paid from the new scheme reduced as a consequence of P becoming entitled to payment of a scheme pension (within the meaning of paragraph 2 of Schedule 28 to the Finance Act 2004(16)) under the old scheme.
(2) Section 216 of the Finance Act 2004(17) (benefit crystallisation events and amounts crystallised) is modified in its application to P as specified in paragraph (3).
(3) The payment of any scheme pension from the old scheme to P is treated as if it was not a benefit crystallisation event within the meaning of section 216 of the Finance Act 2004.
Annual allowance charge
15.—(1) This regulation applies to a person (P), who—
(c)becomes entitled to payment of an ill-health pension under regulation 107 of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014.
(2) Section 234 of the Finance Act 2004(18) (defined benefits arrangements) is modified in its application to P as specified in paragraph (3).
(3) When calculating the closing value of P’s rights under the new scheme for the pension input period during which P becomes entitled to payment of the ill-health pension, the element of the ill-health pension that represents pensionable service for the old scheme is not to be counted as being part of the closing value.
PART 5Modification of short service benefit provisions
Short service benefit
16.—(1) This regulation applies to a person (P) to whom—
(a)regulation 71(a) of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014 (meaning of “actuarial adjustment”) applies; and
(b)regulation 70 of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014 (meaning of “standard reduction”) does not apply.
(2) For the purposes of the requirements in sections 71, 72, 74 and 75 of the 1993 Act(19) and in any subordinate legislation made under Chapter 1 of Part 4 of that Act, as they apply in relation to P and the calculation of P’s benefits under the provisions of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014 specified in paragraph (3), any difference—
(a)between P’s entitlement to benefits and any active member’s entitlement to benefits; or
(b)between the computation of P’s benefits and any computation of benefits of an active member,
(3) The provisions of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014 referred to in paragraph (2) are—
(a)regulation 93 (annual rate of phased retirement pension);
(b)regulation 99 (annual rate of premature retirement pension);
(c)regulation 102 (annual rate of early retirement pension);
(d)regulation 180(b)(iii) (contributions under Schedule 2); and
(e)Part 4 of Schedule 2 (election to buy out the standard reduction).