Regulation 28 Payment of transfer values

For regulation 72 of the principal Regulations there shall be substituted the following:—

“72

(1)

Subject to paragraphs (3) and (4), where a teacher has ceased to be employed in reckonable service (hereafter referred to as his “old employment”), then if—

(a)

his old employment terminated before he attained the age of 60 years, or where paragraph (2) applies the age of 59 years;

(b)

he is a person—

(i)

who has completed 2 or more years' reckonable service, or

(ii)

who after leaving his old employment has taken up employment in which he participates in a superannuation scheme and he has, within 6 months after taking up that new employment, made an application such as is mentioned in sub-paragraph (d) for payment of a transfer value;

(c)

no benefit under these Regulations has been paid to him in relation to his old employment other than—

(i)

a benefit consisting of a return of contributions in respect of part only of his reckonable service in his old employment (whether or not repaid to the Secretary of State), or

(ii)

a benefit consisting of a return of contributions in respect of all of his reckonable service in his old employment paid to him by the Secretary of State under regulation 45(1) or under any other provision before 1st June 1973 where he has subsequently repaid to the Secretary of State an amount equal to the sum received by him;

(d)

he has, before—

(i)

attaining the age of 60 years, or

(ii)

where paragraph (2) applies, attaining the age of 59 years, or 6 months after the date when his old employment terminated, whichever is later,

made an application in writing to the Secretary of State for payment of a transfer value and has not subsequently withdrawn it in accordance with paragraph (5)(a); and

(e)

where paragraph (2) applies, he has completed 2 or more years' service,

the Secretary of State shall, in respect of that person pay a transfer value, calculated in accordance with Part 1 of Schedule 10, to be used in accordance with paragraph 13 of Schedule 1A to the Pensions Act at the teacher’s option in one or more of the ways set out in sub-paragraph (2) of that paragraph.

(2)

This paragraph applies where a person opts to have payment of his transfer value, or any portion of it, made to one or more insurance companies to purchase an appropriate policy.

(3)

Subject to paragraph (4) the Secretary of State shall, if an application under paragraph (1)(d) is received by him, pay a transfer value by whichever is the earlier of the following:—

(a)

the date 12 months from the date on which the application is received by him; or

(b)

the date on which the person in respect of whom the transfer value is paid attains the age of 60 where—

(i)

he ceased to be employed in reckonable service on a date prior to his attaining the age of 59 years, and

(ii)

he made his application for payment of a transfer value within 6 months of that date.

(4)

Where proceedings before a court have been commenced against a teacher at any time before the expiry of the period of 12 months beginning with the date on which his reckonable service terminates and it appears to the Secretary of State that the proceedings may lead to any retiring allowance or gratuity payable under these Regulations to or in respect of the teacher being reduced or withheld under regulation 87, the date by which the Secretary of State shall pay a transfer value shall be—

(a)

the date before which he would be required to do so under paragraph (3), or

(b)

the end of the period of three months after the conclusion of the court proceedings (including any proceedings on appeal),

whichever is the later.

(5)

(a)

An application for payment of a transfer value may be withdrawn by a person by giving notice in writing to the Secretary of State, but such a notice will be of no effect if prior to the date of receiving it the Secretary of State has entered into an agreement with a third party to use the whole or any part of the person’s transfer value in one of the ways set out in paragraph 13 of Schedule 1A to the Pensions Act;

(b)

a person who withdraws an application may make another.”.