Regulation 18 Termination payments
This regulation applies to a credited teacher who receives a termination payment.
A termination payment is the aggregate of any lump sum payments made to him by his former employer which—
are made in consequence of, or as compensation for, the loss of his former employment,
are made in pursuance of any contract or arrangement or any provision contained in, or made under, any enactment, whenever made or enacted, and
are not made by way of compensation under regulation 7 or 12 or by way of an excepted payment.
The excepted payments are—
a redundancy payment in respect of the cessation of his former employment, disregarding any reduction under the Redundancy Payments Pensions Regulations 1965,
so much of any payment in lieu of notice of termination of that employment as does not exceed the remuneration he would, but for its termination, have received for the three months following the material date, and
compensation paid under regulation 5.
If his lump sum compensation under regulation 12 would exceed the termination payment, it is to be reduced by the amount of the termination payment.
If his lump sum compensation under regulation 12 would equal the termination payment, it is not to be paid.
If his lump sum compensation under regulation 12 would be less than the termination payment—
it is not to be paid, and
his annual compensation under regulation 12 is to be reduced by the difference.
If—
by reason of regulation 17(3) or (4) (redundancy payments) no lump sum compensation is payable under regulation 12, or
lump sum compensation was paid under regulation 12 before the termination payment became payable,
his annual compensation under regulation 12 is to be reduced by the amount of the termination payment.
Reductions of annual compensation payable under regulation 12 under paragraphs (6)(b) and (7) are reductions of the total amount payable, and accordingly payment is to be suspended until the full reduction has been achieved.