PENSIONS Citation, commencement and effect 1 1 These Regulations may be cited as the Teachers' Superannuation (Scotland) Amendment Regulations 2008. 2 These Regulations come into force on 1st July 2008 and have effect from that date except that– a regulation 16 has effect from 6th April 2006; and b regulations 3, 4, 7(2), 8, 18 and 27(3) and (5) have effect from 1st April 2008. Amendment of the Teachers' Superannuation (Scotland) Regulations 2005 2 The Teachers' Superannuation (Scotland) Regulations 2005 (“the 2005 Regulations ”) are amended in accordance with regulations 3 to 29. 3 1 Regulation C1 (salary on which contributions are payable) is amended as follows. 2 In paragraph (5)– a for “paragraphs (6) and (7)” substitute “regulation C1A”; and b omit “in terms of section 590C of the Taxes Act”. 3 After paragraph (5) insert– 5A In this regulation “permitted maximum” has the meaning given to it by regulation 1(2) of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 . . 4 Omit paragraphs (6), (7) and (8). 4 After regulation C1 insert– Removal of the cap on contributable salary C1A 1 Regulation C1(5) only applies to a teacher– a who is a relevant teacher; and b in respect of whom that regulation has not ceased to apply by virtue of paragraph (2). 2 Regulation C1(5) shall cease to apply to a relevant teacher– a who on or after 1st April 2008 elects in accordance with paragraph (4) for that provision not to apply for the purposes of determining the amount of the teacher’s contributable salary; or b who does not make such an election but the circumstances specified in paragraph (6) or (9) apply to that teacher. 3 In this regulation a “relevant teacher” is a teacher– a who is in pensionable employment immediately before 1st April 2008; and b who immediately before that date is a person to whom regulation C1(5) applies. 4 The election referred to in paragraph (2)(a) must– a be made by giving written notice to the Scottish Ministers; b include a written notice from the relevant teacher’s employer confirming that the employer consents to regulation C1(5) not applying for the purposes of determining the amount of that teacher’s contributable salary; and c be received by the Scottish Ministers on or before 31st December 2008. 5 A notice received by the Scottish Ministers in accordance with paragraph (4) on or before 31st July 2008 may specify that it is to be deemed to have been received on a date falling between 1st April 2008 and 30th June 2008. 6 Subject to paragraph (8), the circumstances are that at any time on or after 1st April 2008 the relevant teacher referred to in paragraph (2)(b) begins a new employment. 7 For the purposes of paragraph (6), a teacher is to be treated as beginning a new employment if the teacher– a begins pensionable employment with an employer who is different from the employer in relation to the pensionable employment referred to in paragraph 3(a); or b continues in pensionable employment with the same employer but in a new post under a different contract of employment. 8 Paragraph (6) does not apply where the teacher begins pensionable employment with a different employer by reason of a transfer of undertakings. 9 The circumstances are that at any time on or after 1st April 2008– a the contract of employment of the relevant teacher is varied so that the teacher is required to undertake functions which are materially different from those the teacher was required to undertake before the variation was made; and b the employer gives written notice to the Scottish Ministers of the variation of the teacher’s contract of employment. 10 Subject to paragraph (5), in the case of a teacher to whom paragraph (2)(a) applies, regulation C1(5) ceases to apply on the last day of the month in which the notice of election is received by the Scottish Ministers in accordance with paragraph (4). 11 In the case of a teacher to whom paragraphs (2)(b) and (6) apply, regulation C1(5) ceases to apply immediately before the date on which the teacher begins the new employment referred to in paragraph (6). 12 In the case of a teacher to whom paragraphs (2)(b) and (9) apply, regulation C1(5) ceases to apply immediately before the date on which the variation in the contract of employment takes effect. . 5 In paragraphs (1)(a) and (9) of regulation C2 (salary on which contributions are payable) after “paternity” insert “, parental”. 6 For regulation C4B(1) (election in respect of additional benefits) substitute– 1 Any teacher in pensionable employment– a who has not attained the normal pension age; or b who is a pre 2007 entrant who has attained the age of 60 but has not attained the age of 65, may at any time elect to pay additional contributions in accordance with Schedule 2A in order to be credited with additional benefits. . 7 1 Regulation D1 (reckonable service generally) is amended as follows. 2 In paragraph (1) for “regulation D2” substitute “regulations D2 and D5”. 3 In paragraph (4)(a) after “paternity” insert “, parental”. 8 After regulation D4 insert– Calculation of reckonable service where cap on contributable salary is removed D5 1 This regulation applies for the purposes of determining the length of reckonable service of a teacher– a who is a relevant teacher within the meaning of paragraph (3) of regulation C1A (removal of the cap on contributable salary); and b who has made the election referred to in paragraph (2)(a) of that regulation, or is a teacher to whom paragraphs (2)(b) and (6) or (9) of that regulation apply. 2 The reckonable service of such a teacher is (rounded up to the nearest day)– A + ( B × C ) D Where– A is the aggregate of periods of uncapped reckonable service; B is the aggregate of periods of capped reckonable service; C is the permitted maximum which has effect on the relevant date; and D is the higher of– the amount of the teacher’s contributable salary in the period of 12 months ending on– in a case to which paragraph (2)(a) of regulation C1A applies, the last day of the month in which the notice of the election is received by the Scottish Ministers in accordance with paragraph (4) of that regulation or deemed to be received by the Scottish Ministers in accordance with paragraph (5) of that regulation; or in a case to which paragraphs (2)(b) and (6) of regulation C1A apply, the last day of the teacher’s pensionable employment referred to in paragraph (3)(a) of that regulation; or in a case to which paragraphs (2)(b) and (9) of regulation C1A apply, the day immediately before the date on which the variation of the contract of employment takes effect; or the permitted maximum. 3 In this regulation– a the reference to periods of capped reckonable service is to periods of employment or service which apart from this regulation the teacher would be entitled to count as reckonable service in accordance with the provisions of this Part, and in respect of which– i regulation C1(5) applies; or ii in the case of transferred in service, the benefits payable in respect of the employment or service under the relevant pension scheme were subject to the limits imposed by section 590C of the Taxes Act or regulation 4 of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 ; b references to periods of uncapped reckonable service are to any periods which apart from this regulation the teacher would be entitled to count as reckonable service in accordance with the provisions of this Part and which are not periods of capped reckonable service; c “permitted maximum” has the meaning given in regulation C1(5A); d in paragraph 3(a)– i the reference to transferred in service is to service which the teacher is entitled to count as reckonable service by virtue of regulation G2(5) (acceptance of transfer values); and ii the reference to the relevant pension scheme, in relation to transferred in service, is to the previous scheme (within the meaning of regulation G2(2)); e the reference to the amount of contributable salary received by the teacher is to the amount of contributable salary calculated in accordance with regulations C1 and C2, but disregarding paragraph (5) of regulation C1; and f the relevant date is– i in the case of a teacher to whom paragraph (2)(a) of regulation C1A applies, the first day of the first month after the date on which the notice of the election is received by the Scottish Ministers in accordance with paragraph (4) of that regulation or deemed to be received by the Scottish Ministers in accordance with paragraph (5) of that regulation; or ii in the case of a teacher to whom paragraphs (2)(b) and (6) of regulation C1A apply, the date on which the teacher begins the new employment referred to in paragraph (6) of that regulation; or iii in the case of a teacher to whom paragraphs (2)(b) and (9) of regulation C1A apply, the date on which the variation of the contract of employment takes effect. . 9 1 Regulation EA1 (meaning of various terms) is amended as follows. 2 In paragraph (2) after “in paragraph (3)” insert “or the condition in paragraph (3A)”. 3 After paragraph (3) insert– 3A The condition is that– a the teacher enters pensionable employment on or after 1st April 2007; b the teacher enters pensionable employment by virtue of a transfer of undertakings or by virtue of arrangements equivalent to a transfer of undertakings; and c immediately before entering pensionable employment the teacher was– i in employment pensionable under a public service pension scheme; and ii entitled under the rules of that scheme to receive benefits on retirement from such employment before or on attaining the age of 60. 3B In paragraph (3A)– a “public service pension scheme” has the same meaning as in section 1 of the 1993 Act except that it does not include an occupational pension scheme established under section 7 of the Superannuation Act 1972; and b the reference to arrangements equivalent to a transfer of undertakings is to arrangements– i which do not constitute a transfer of undertakings; and ii under which the parties to the arrangements have agreed that the rights of the teachers whose employments are being transferred should as far as practicable be treated in the same way as they would have been under a transfer of undertakings. 3C For the purposes of paragraph (3A)(c)(ii) a teacher is not to be treated as being entitled under the rules of a pension scheme to receive benefits before or on attaining the age of 60, where such entitlement arises by virtue of any scheme rule making special provision– a as to early retirement on grounds of ill health, redundancy or otherwise; or b for benefits to be reduced for early payment. . 10 1 Regulation E6 (entitlement to payment of retirement benefits) is amended as follows. 2 In paragraph (5)(c)(i)(bb) after “paternity” insert “, parental”. 3 After paragraph (5)(c)(iii) insert– and; d – i in the case of a teacher registered or formerly registered with the General Teaching Council for Scotland and who has ceased after 31st March 1997 to be in pensionable employment, has not had his or her name removed from the Council’s register following a direction by the Council’s Disciplinary Committee and is not under an investigation which might result in such removal; or ii in any other case, where a teacher has ceased after 31st March 1997 to be in pensionable employment, has not ceased to be in pensionable employment as a result of dismissal on grounds of misconduct. . 4 In paragraph (10)(a) for “Government Actuary” substitute “scheme actuary”. 11 1 Regulation E7 (amount of retirement pension) is amended as follows. 2 In paragraph (1) for the words from “together with” to the end of the paragraph, substitute– together with– a the rate specified in regulation E7A where that regulation applies; and b any amount determined in accordance with paragraph (4B) of regulation E8 where that paragraph applies, but nothing in this regulation, regulation E7A or regulation E8(4B) shall prevent different parts of a teacher’s retirement pension being paid at different times if the teacher becomes entitled to the parts at different times. . 3 In paragraph (11) for “Government Actuary” substitute “scheme actuary”. 12 After regulation E8(4) (amount of retirement lump sum) insert– 4A Paragraph (4B) applies in any case where, but for paragraph (4), a teacher would be entitled to a lump sum which exceeds the teacher’s permitted maximum (“the notional lump sum”). 4B The annual rate of the teacher’s retirement pension is increased by an amount which represents the value of the amount by which the notional lump sum exceeds the teacher’s permitted maximum. 4C The increase in the annual rate of the teacher’s retirement pension shall be determined by the Scottish Ministers after taking advice from the scheme actuary. . 13 In regulation E8B(2) (teachers aged 75 or over) for “Government Actuary” substitute “scheme actuary”. 14 1 Regulation E10A (total incapacity benefit where application received on or after 1st April 2007) is amended as follows. 2 In paragraph (1)(b) after “paternity” insert “, parental”. 3 In paragraph (2)(b) for “6 months” substitute “12 months”. 15 In regulation E13(2) (pension debit member) for “Government Actuary” substitute “scheme actuary”. 16 1 In paragraph (6) of regulation E26 (family benefits generally) after “adopted child” insert– ; or b accepted by him or her as a member of the family and wholly or mainly financially dependent on him or her , . 2 For paragraph (12)(a) of that regulation substitute– a in paragraph 6(b) omit “financially”; and . 3 Subject to paragraph (4), the amendment made by paragraph (1) applies for the purposes of determining a person’s entitlement to a pension under regulations E28 to E33 where the pension is payable at any time on or after 6th April 2006. 4 Paragraph (3) does not apply in respect of pensions payable under regulations E28 to E33 to the children of a deceased teacher during the period beginning on 6th April 2006 and ending on 30th June 2008 where– a one or more payments have been made under those regulations to a child of that teacher during that period; and b the amount of the pension paid to that child has been determined on the basis of paragraph (6) of regulation E26 having effect without the amendment made by paragraph (1) above. 17 1 Regulation E29 (amount and duration of short term family benefits) is amended as follows. 2 In paragraph (1)(a) after “paternity” insert “, parental”. 3 In paragraph (4) for “E7(4)” substitute “E7(6)”. 18 1 Regulation E31 (amount of surviving spouse's, surviving civil partner's, surviving nominated partner’s or nominated beneficiary’s long-term pension) is amended as follows. 2 In paragraph (5) after “paragraphs (4), (6)” insert “, (7C)”. 3 In paragraphs (7) to (7B) in each case after “paragraphs (4)” insert “, (7C)”. 4 After paragraph (7B) insert– 7C Regulation D5 has effect for the purpose of calculating the length of the family benefit service of a deceased teacher, who was a teacher to whom paragraph (1) of that regulation applied, as that regulation would have had effect for the purpose of calculating the teacher’s reckonable service. 7D For the purposes of paragraph (7C)– a references in regulation D5 to reckonable service shall be taken as references to family benefit service; and b references in paragraph (3)(a) and (b) of that regulation to the provisions of Part D shall be taken as references to paragraphs (4) to (7B) of this regulation. . 5 In paragraph (12) for “paragraph (4)” substitute “paragraphs (4) and (7C)”. 19 In regulation E34(7)(a) (pensionable salary) after “paternity” insert “, parental”. 20 In regulation E36(1B) (payment of benefits)– a omit “and” at the end of sub paragraph (a); and b after sub-paragraph (b) insert– c where the teacher falls within regulation E6(5)(c)(i)(aa) or (cc), be made within 12 months after the end of the pensionable employment or within 12 months after the last payment of additional contributions under old regulation C8 or regulation C9 as the case may be; and d where the teacher falls within regulation E6(5)(c)(i)(bb), be made– i where the teacher was on unpaid sick leave, before the period of sick leave ends; and ii in any other case, before the date on which, under the arrangements made with the teacher’s employer, the leave is due to end. . 21 For regulation G1(11)(b) (payment of transfer values) substitute– b the date on which the teacher attains the normal pension age where– i he or she ceased to be employed in pensionable employment or entered excluded employment on a date which falls at least one year before the date on which the applicant attains the normal pension age; and ii he or she made his or her application for payment of a transfer value within 6 months of that date. . 22 In paragraphs (1), (3) and (5) of regulation H2 (actuarial review) for “Government Actuary” substitute “scheme actuary”. 23 In regulation J4(1)(f) (records and information) after “paternity” insert “, parental”. 24 In regulation J6A(4) (declaration where lump sum payments are made) for “Government Actuary” substitute “scheme actuary”. 25 For regulation J8 (determination of questions) substitute– J8 The Scottish Ministers shall determine any question concerning any person’s rights or liabilities under these Regulations and their decision shall be final. Any dispute shall be resolved in accordance with the dispute resolution arrangements issued from time to time by the Scottish Ministers in accordance with section 50 of the 1995 Act. . 26 In regulation J9(4) (commutation of benefits) for “Government Actuary” substitute “scheme actuary”. 27 1 Schedule 1 (glossary of expressions) is amended as follows. 2 In the second column (meaning) of the definitions of the expressions “Actuarial” and “Appropriate Factor” for “Government Actuary” substitute “scheme actuary”. 3 In the second column (meaning) of the definition of the expression “permitted maximum”, for “Shall be construed” substitute “Except as provided in regulations C1(5A) and D5(2), construe”. 4 After the definition of “the Scheme” insert– “Scheme actuary” Means the actuary appointed from time to time by the Scottish Ministers to provide a consulting service on acturial matters relevant to these Regulations. . 5 After the definition of “Transfer day” insert– “Transfer of undertakings” Means– where the transfer takes place on or after 6th April 2006, a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 ; and where the transfer takes place before that date, a transfer of undertakings within the meaning given by the Transfer of Undertakings (Protection of Employment) Regulations 1981 . . 28 1 Schedule 2A (elections in respect of additional benefits) is amended as follows. 2 In paragraph 4(a)– a after “the normal pension age” insert “unless the teacher falls within sub paragraph (aa)”; and b omit “and” at the end of that sub paragraph. 3 After paragraph 4(a) insert– aa where the election is made by a teacher who is a pre 2007 entrant who has attained the age of 60, the period ends before the teacher attains the age of 65; and . 4 In paragraph 27(b) after “the normal pension age” insert “or, where the election is made in respect of a teacher who is a pre-2007 entrant who has attained the age of 60, the age of 65”. 5 In paragraphs 30 and 37 for “Government Actuary” substitute “scheme actuary”. 29 In paragraphs 11(1) and (3), 12B(3), 12C(2), 12E(3) and 12F(2) of Schedule 6 (family benefits) for “Government Actuary” substitute “scheme actuary”. Election in respect of protected benefits payable under the 2005 Regulations 30 1 This regulation applies to a person– a to whom a protected benefit is being paid or may become payable; and b who is placed in a worse position than the person would have been if a provision made by these Regulations had not applied in relation to the protected benefit. 2 A protected benefit is one which is being paid, or may become payable, under the 2005 Regulations to, or in respect of, a teacher who was employed in qualifying employment but ceased to be employed, or died before the relevant provision came into effect. 3 A person to whom this regulation applies may, by giving written notice to the Scottish Ministers before 1st September 2008, elect that the relevant provision shall not apply in relation to the protected benefit. 4 If the election under paragraph (3) is made in relation to the benefit of a teacher who is in pensionable employment or subsequently becomes re-employed in pensionable employment– a the election has effect in relation to the benefit only to the extent that it accrues or has accrued by virtue of– i periods of reckonable service before the cessation referred to in paragraph (2) (or, if there has been more than one cessation, the last of them before the relevant provision came into effect); or ii contributions paid in respect of such periods; and b in determining entitlement to, or the amount of, the benefit to that extent the teacher is treated as having never re-entered pensionable employment again at any time after the cessation referred to in paragraph (2) (but without prejudice to the application of this paragraph), and the 2005 Regulations apply accordingly. Amendment of the Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995 31 The Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995 are amended in accordance with regulations 32 to 35. 32 In regulation 2(3) (interpretation) after the definition of “normal pension age” insert– “old regulation C8” of the Superannuation Regulations has the meaning given to it in Schedule 1 to those regulations; . 33 In regulation 12(6) (retirement and dependants' pensions) for “the period of 5 years” substitute “a period specified in the notice, being a period of no less than 5 years and no more than 10 years”. 34 1 Regulation 16 (payment by the Scottish Ministers) is amended as follows. 2 In paragraph (2A) for “regulation 12(1)” substitute “regulation 12(1A)”. 3 In paragraph (3)(a) omit “12(6); or”. 35 For regulation 19 (determination of questions) substitute– 19 The Scottish Ministers shall determine any question concerning any person’s rights or liabilities under these Regulations and their decision shall be final. Any dispute shall be resolved in accordance with the dispute resolution arrangements issued from time to time by the Scottish Ministers in accordance with section 50 of the Pensions Act 1995 . . Amendment of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996 36 In regulation 16B (discretion to pay compensation) of the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996 for “66 weeks' pay” substitute “104 weeks' pay”. JOHN SWINNEY A member of the Scottish Executive St Andrew’s House, Edinburgh 29th May 2008 We consent CLAIRE WARD FRANK ROY Two of the Lord’s Commissioners of Her Majesty’s Treasury 4th June 2008