{
  "url": "https://openlegislation.uk/teachers-superannuation-scotland-amendment-regulations-1988/schedule-2",
  "json_url": "https://openlegislation.uk/teachers-superannuation-scotland-amendment-regulations-1988/schedule-2.json",
  "legislation": "uksi/1988/1618",
  "legislation_title": "The Teachers' Superannuation (Scotland) Amendment Regulations 1988",
  "legislation_url": "https://openlegislation.uk/teachers-superannuation-scotland-amendment-regulations-1988",
  "path": "schedule/2",
  "kind": "schedule",
  "number": "2",
  "heading": "SCHEDULE SUBSTITUTED FOR SCHEDULE 10 OF THE PRINCIPAL REGULATIONS",
  "text": "“SCHEDULE 10\nTHE CALCULATION OF TRANSFER VALUES AND OF SERVICE TO BE CREDITED IN RESPECT OF TRANSFER VALUES MADE TO THE SECRETARY OF STATE\nRegulation 72(1) and 73(2)\nPART I\n—CALCULATION OF TRANSFER VALUE\n1 Subject to the provisions of paragraphs 2, 3, 5 and 6, a transfer value to be paid in accordance with the provisions of regulation 72 in respect of a person shall be—\n(a) the capitalised value of his accrued rights under these Regulations at the material date, and any associated rights under the Pensions (Increase) Act 1971 and the Pensions (Increase) Act 1974, less a sum, if any, in respect of any state scheme premium which the Secretary of State has paid and not recovered in respect of a period of service included in the valuation of those rights; together with\n(b) where the transfer value is without reasonable cause or excuse not paid within 6 months of the material date and it is not to be made to a statutory scheme (or a scheme being treated by the Secretary of State as a statutory scheme for the purposes of this Schedule)—\n(i) interest, if any, calculated on a daily basis over the period from the material date to the date on which the transfer value is paid, at the rate set out in regulation 4(4)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1985; or, if it is greater,\n(ii) the amount by which the transfer value falls short of what it would have been if the material date had been the date on which the transfer value was paid.\n2 Where, prior to the last date on which he is required to pay a transfer value under these Regulations, the Secretary of State has determined under regulation 87 that the benefits payable under these Regulations shall be withheld in whole or part, any transfer value payable in respect of that person shall be reduced in proportion to the reduction in the total value of the benefits or shall be withheld as the case may be.\n3 Where a person requests that a transfer value be paid to a superannuation scheme—\n(a) which is not contracted out within the meaning of section 32 of the Pensions Act; and\n(b) the trustees or managers of that scheme are able or willing to have transferred to it only the liability for a member’s accrued rights other than his and his widow’s rights to guaranteed minimum pensions; and\n(c) he does not require the Secretary of State to use that portion of his transfer value that represents his guaranteed minimum pensions in one of the ways specified in paragraph 13(2) of Schedule 1A to the Pensions Act,\nthen his transfer value shall be reduced by the amount of a state scheme premium sufficient for the Secretary of State for Social Services to meet his liability in respect of that person’s and his widow’s guaranteed minimum pensions.\n4 In this part of the Schedule—\n(a) “accrued rights” means the rights which have accrued in respect of a person under these Regulations at the material date, or which would have accrued in respect of him if the period of service necessary to satisfy the requirements of regulation 46 had been the period which he had completed at that date;\n(b) “capitalised value” means the capitalised value at the material date as determined by the Secretary of State, having regard to investment conditions and the contingencies on which benefits are, or are to be, payable under these Regulations;\n(c) “material date” means the date on which the person ceased to be employed in reckonable service or, if it is later, the date of his application for payment of a transfer value which he has not subsequently withdrawn;\n(d) “state scheme premium” means a state scheme premium or a transfer premium under Part III of the Pensions Act.\n5 Where one or more transfer values have been paid to the Secretary of State in respect of a member, any transfer value paid by him shall be at least equal to the aggregate of those transfer values and any contributions made by that person under regulation 11, 21 or 27, except where it falls to be made to a statutory scheme (or a scheme being treated by the Secretary of State as a statutory scheme for the purposes of this Schedule).\n6 A transfer value paid under this Schedule shall be at least equal in amount to the cash equivalent, if any, to which a person would otherwise be entitled under Part II of Schedule 1A to the Pensions Act.\nPART II\n—CALCULATION OF CREDITED SERVICE\n7 Where a transfer value has been paid to, and accepted by, the Secretary of State, there shall be credited to the teacher, in respect of whom the payment was made, a period of reckonable service calculated in accordance with paragraph 8.\n8 For the purposes of paragraph 7—\n(a) where the transfer value—\n(i) is paid by the trustees or managers of a statutory scheme, or any other scheme which is at the appropriate date treated by the Secretary of State as a statutory scheme for the purposes of this Schedule;\n(ii) represents all of the teacher’s accrued rights in that scheme; and\n(iii) has been calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to schemes which are, or which fall to be treated as, statutory schemes under Part I of this Schedule,\nthe period of reckonable service to be credited to the teacher shall be equal to the period of service which, if used to calculate a transfer value to be paid to a superannuation scheme which is, or which falls to be treated as, a statutory scheme under Part I of this Schedule, would produce an amount equal to the transfer value received by the Secretary of State, and in making the calculation regard shall be had to the teacher’s age, rate of pensionable pay, marital status and, in addition, to any other factor notified to the Secretary of State by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount; and\n(b) in any other case, the period of reckonable service credited to the teacher shall be calculated in a manner consistent with the methods adopted and assumptions made by the Secretary of State in determining the amount of transfer values to be paid to superannuation schemes (which do not fall to be treated as statutory schemes) under Part I of this Schedule, due allowance being given for the expected increase in the salary of teachers between the appropriate date and the date on which the teacher in respect of whom the transfer value was paid would attain the age of 60 years.\n9 In this Part of this Schedule “appropriate date” means the date on which the person in respect of whom the transfer value is paid became employed in reckonable service, or if the transfer value is received more than 12 months after that date, the date on which it is received.”",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "1974 c. 9"
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 1985/1931, to which there are amendments not relevant to these Regulations."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Section 32 was amended by the Social Security and Housing Benefits Act 1982 (c. 24), Schedule 4, and by the Social Security Act 1986 (c. 50), section 9 and Schedules 2, 10 and 11."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1988/1618/schedule/2",
    "retrieved_at": "2026-10-29T15:58:27.950103+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}