Explanatory note

These Regulations make provision for the payment of additional voluntary contributions by members of the superannuation scheme constituted by the Teachers' Superannuation (Consolidation) Regulations 1988 (“the 1988 Regulations”), in order to secure additional benefits financed by investing the contributions.

The Regulations provide for the making of elections of various kinds. Regulation 3 contains general provisions as to their making and acceptance; regulation 4 provides for elections to pay regular contributions, and for the payment of lump sum contributions, so as to secure additional retirement and dependant’s pensions; regulation 5 provides for elections to pay death benefit contributions so as to secure a lump sum death benefit (which may if desired be applied wholly or in part to the purchase of dependant’s pensions) in the event of death while paying such contributions; regulation 6 allows elections made under regulations 4 and 5 to be varied or cancelled. While an election has effect and the person concerned is in employment which is, or is treated as being, pensionable under the 1988 Regulations, he remains a basic contributor or, as the case may be, a death benefit contributor for the purposes of these Regulations (regulation 7).

Regulation 8 deals with the payment of contributions and imposes a limit on their total amount; regulation 9(1) to (5) requires the Secretary of State to invest regular and lump sum contributions with the Prudential in one or more of the specified funds in accordance (subject to certain minima) with any wishes expressed by the contributor, and regulation 9(6) requires death benefit contributions to be invested so as to secure the amount of cover specified. A transfer value accepted from another additional voluntary contributions scheme is to be invested as if it had been a lump sum contribution (regulation 10).

On retirement, investments (except those made with death benefit contributions) are to be realised and retirement or dependant’s pensions, or both, purchased with the proceeds from one or more of the insurance companies listed in Schedule 1, in accordance with any wishes expressed by the contributor in a benefits election (regulation 11(1) to (9)). Regulation 11(10) makes default provision, and regulation 11(11) and (12) allow the proceeds of realisation to be paid as a lump sum in some circumstances.

Regulation 12 provides for the payment of death benefits secured by contributions under regulation 5.

Regulation 13, with Schedule 2, imposes limits on all kinds of benefits payable under the Regulations; to the extent that a limit would otherwise be exceeded, a capital sum is payable, after deduction of tax (regulation 15(4) to (6)).

Regulation 14 provides for the realisable value of investments to be repaid where contributions under the 1988 Regulations are repaid, and in some circumstances where a basic contributor or former basic contributor dies before retirement.

Benefit and other payments are to be made by the Secretary of State in accordance with regulation 15. Regulation 16 requires him to be given information needed for the purposes of his functions under the Regulations. Regulation 17 provides for questions to be determined by him.

Section 12 of the Superannuation Act 1972 confers express power to make regulations retrospective in effect. Regulation 18 provides for payments made by employees in anticipation of these Regulations to be treated as contributions, and for benefits to be payable where such payments were invested and a relevant event occurred before the commencement of the Regulations.