Regulation 17 Cap on contributable salary

(1)

In this regulation a “relevant person” is a person who—

(a)

entered pensionable employment after 31st May 1989 with no right to count any period before 1st June 1989 as reckonable service and is not a person to whom paragraph F1(2), (3) or (3A) applies,

(b)

was in pensionable employment immediately before 1st April 2008,

(c)

has not made an election under regulation C1A(2) M1 of TPR 1997 (removal of the cap on contributable salary), and

(d)

is not a person to whom regulation C1(8) of TPR 1997 has ceased to apply because the person began a new employment (see regulation C1A(5) of TPR 1997) or because the person's contract of employment was varied (see regulation C1A(8) of TPR 1997).

(2)

This paragraph applies to a person who was in pensionable employment before 1st June 1989 and who resumed pensionable employment following—

(a)

an absence on maternity leave in respect of which she was entitled to a right to return from leave pursuant to Chapter 1 of Part 8 of the Employment Rights Act 1996 M2,

(b)

a period of secondment or additional period of absence necessarily attributable to that secondment, or

(c)

(where neither sub-paragraph (a) nor (b) applies), a break in teaching employment not exceeding one year.

(3)

This paragraph applies to a person who was in comparable United Kingdom service before 1st June 1989 and who subsequently enters pensionable employment provided that there has not been a period of more than one year between cessation of employment in comparable United Kingdom service and entering pensionable employment.

F2(3A)

This paragraph applies to a person whose annual rate of contributable salary for the tax year or part of the tax year which included 31st March 2008, calculated in accordance with regulation C1 of TPR 1997 (salary on which contributions are payable), did not exceed the permitted maximum for that tax year of £112,800.

(4)

In the case of any relevant person, in any tax year or part of a tax year in which the person's annual rate of contributable salary, calculated in accordance with regulations 15 and 16 exceeds the permitted maximum, that excess does not form part of the person's contributable salary.

(5)

But if the circumstances specified in paragraphs (6) or (9) apply to that person paragraph (4) will cease to apply in accordance with paragraphs (10) and (11).

(6)

Subject to paragraph (8), the circumstance is that the relevant person begins a new employment.

(7)

For the purposes of paragraph (6) a person is to be treated as beginning a new employment if the person—

(a)

begins pensionable employment with a different employer, 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 person begins pensionable employment with a different employer by reason of a transfer of undertakings.

(9)

The circumstances are that—

(a)

the contract of employment of the relevant person (P) is varied so that P will be required to undertake functions which are materially different from those which P was required to undertake before the variation was made, and

(b)

the employer gives written notice to the Secretary of State of the variation of P's contract of employment.

(10)

In the case of a person to whom the circumstance specified in paragraph (6) applies, paragraph (4) ceases to apply immediately before the date on which the person begins the new employment referred to in paragraph (6).

(11)

In the case of a person to whom the circumstances specified in paragraph (9) apply, paragraph (4) ceases to apply immediately before the date on which the variation in the contract of employment takes effect.

F3(12)

In this regulation the “permitted maximum” for any tax year is the permitted maximum for the previous tax year increased (if there is a relevant increase in the retail prices index for the tax year) by the appropriate percentage for the tax year.

(13)

For the purposes of this regulation—

(a)

there is a relevant increase in the retail prices index for a tax year if the retail prices index for the month of September before the tax year is higher than it was for the previous September;

(b)

the appropriate percentage for the tax year is the same percentage as the percentage increase in the retail prices index;

(c)

if the result of the application of paragraph (12) above in relation to a tax year would not be a multiple of £600, the permitted maximum for that tax year is what it would be but for this provision, rounded up to the nearest amount which is such a multiple.

Annotations

Textual amendments

F1: Words in reg. 17(1)(a) substituted (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 8(a)
F2: Reg. 17(3A) inserted (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 8(b)
F3: Reg. 17(12)(13) substituted for reg. 17(12) (1.4.2015) by The Teachers' Pensions (Miscellaneous Amendments) (No. 2) Regulations 2014 (S.I. 2014/2651), regs. 1, 8(c)

Marginal citations

M1: Regulation C1A was inserted by S.I. 2008/541.
M2: 1996 c.18. Chapter 1 of Part 8 was substituted by Schedule 4 to the Employment Relations Act 1999 (c. 26) and amended by section 17 of the Employment Act 2002 (c. 22).