OpenLegislation

Regulation 7 Compensation payable to credited teacher

Original text. Later amendments are not shown.

(1)

A credited teacher is entitled to lump sum compensation and to annual compensation.

(2)

Subject to regulations 12 and 13, the amount of the lump sum compensation is A – B, where–

  • A is the retirement lump sum to which he would be entitled on the hypothesis specified in paragraph (4), and

  • B is the assumed retirement lump sum.

(3)

Subject to paragraph (6) and to regulations 12 and 14 to 16, the rate of the annual compensation is C – D, where–

  • C is the annual rate of the retirement pension to which he would be entitled on the hypothesis specified in paragraph (4), and

  • D is the annual rate of the assumed retirement pension.

(4)

The hypothesis is that–

(a)

all his effective service counts as reckonable service, and

(b)

the credited period counts as reckonable service after 30th September 1956.

(5)

The assumed retirement lump sum and the assumed retirement pension are–

(a)

where all his effective service counts as reckonable service, those to which he is entitled, and

(b)

in any other case, those to which he would have been entitled if all his effective service had counted as reckonable service.

(6)

Where–

(a)

the material date is a date later than 30th August 1985, and

(b)

an occupational pension is being paid in respect of service before the material date, and

(c)

the aggregate of his effective service, any period in respect of which he is entitled to the occupational pension, and the credited period would exceed 40 years, and

(d)

the aggregate of the annual rates for the time being of the occupational pension and of the annual compensation would exceed the relevant amount,

the rate of the annual compensation is to be reduced so that the relevant amount is not exceeded.

(7)

For the purposes of paragraph (6)–

(a)

the annual rates at any time of the annual compensation and of any other official pension within the meaning of the 1971 Act are their annual rates as increased under that Act, and

(b)

the annual rate at any time of an occupational pension which is not such an official pension is its annual rate as increased under any contract, scheme or other arrangement.

(8)

The relevant amount mentioned in paragraph (6) is E + F, where–

  • E is the amount specified in paragraph (9), and

  • F is any amount by which E would have been increased if it had been the annual rate of an official pension within the meaning of the 1971 Act beginning, and first qualifying for increases under that Act, on the day after the material date.

(9)

The amount constituting E is–

G100×50-5×H4

where–

  • G is his average salary, and

  • H is the length in years of his effective service.

(10)

For the purposes of this regulation an occupational pension is a pension by way of periodical payments, other than a retirement pension under the Superannuation Regulations, which is payable under an occupational pension scheme; and for the purposes of paragraph (9) regulation E29 of the Superannuation Regulations (average salary) is in every case to be construed as if the former employment were pensionable employment.