# The Teachers' Superannuation (Scotland) Amendment Regulations 1989, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations further amend the Teachers' Superannuation (Scotland) Regulations 1977.
There are added a number of definitions of expressions used in later provisions concerning mainly amendments to the transfer value provisions (regulation 3).
Inserted in the 1977 Regulations are new regulations 4A and 4B. Regulation 4A reconciles the 1977 Regulations with section 10 of the Social Security Act 1986 (which makes void, inter alia, any rule to the effect that an earner must be a member of a particular occupational pension scheme), by conferring a right on a teacher to elect to cease to be, or not to become, subject to the 1977 Regulations as an employee in reckonable service. Regulation 4B allows any person who has made such an election to elect to become subject again to the 1977 Regulations (regulation 4).
Regulation 5 of the 1977 Regulations is amended as a consequence of regulation 4 of these Regulations to enable part-time teachers currently superannuable by virtue of an election they have made to elect to cease to be subject to the 1977 Regulations (regulation 5).
Regulation 6(3)(b) of the 1977 Regulations is revoked. This regulation permitted late entrants (age 55 and over) who entered teaching for the first time to elect not to be superannuable. This separate provision is no longer required as any teacher can so elect under new regulation 4A (regulation 6).
Regulations 30 to 38 and Schedule 4 to the 1977 Regulations are replaced by a new regulation and Schedule encompassing in one place extended and existing provisions relating to additional contributions which may be paid by teachers to increase reckonable service counting for family benefits. The effect of the new provisions is that married women are enabled to pay additional contributions in respect of service before 6th April 1988 which would not otherwise count towards widowers' benefits (regulations 7 and 25).
Regulation 39 of the 1977 Regulations is amended as follows:—
1 The general conditions for entitlement to a refund of contributions are amended consequentially upon amendments to regulation 12, ie refunds are available only where a person has less than 2 years' service.
2 Entitlement to a refund of contributions is extended to teachers who elect to cease to be subject to the 1977 Regulations.
3 By precluding a refund of contributions to a teacher with less than 2 years' service if part of that service was credited by virtue of a transfer value received from a personal pension scheme.
4 By providing that the increased rate of tax deductible from refunds of contributions, effective from 6th April 1988, will not be applied in respect of refunds paid after this date but for which application was lodged before this date.
The scope of regulation 45A of the 1977 Regulations, which provides entitlement to a guaranteed minimum pension for teachers and for teachers' widows, is extended to include teachers' widowers and, in addition, provides that all such pensions shall be increased in accordance with the requirements of section 37A of the Social Security Act 1975 (regulation 11).
Regulation 46 of the 1977 Regulations is amended by reducing from 5 years to 2 years, and from 10 years to 5 years, the periods of service giving rise, in differing circumstances, to an entitlement to benefits (immediate or deferred, according to age) on ceasing to be employed in reckonable service (regulation 12).
Regulation 51 of the 1977 Regulations is amended to clarify (a) that benefits payable early by reason of incapacity will be enhanced only if 5 or more years' service have been completed, and (b) how these provisions apply in relation to part-time teachers (regulation 14).
The period of service required for payment of a death gratuity is also reduced from 5 years to 2 years (regulation 15).
Provision is made for the abatement provisions to apply in the case of a retired teacher who, on being re-employed, does not become subject to the 1977 Regulations by virtue of an election made under new Regulation 4A (regulation 16).
Apart from the minor consequential amendments, regulation 64 of the 1977 Regulations is amended to clarify that, corresponding to the amendment introduced by regulation 14, the service counting for a spouse’s pension will not be enhanced if the teacher’s service amounts to less than 2 years and alters the provisions governing post-retirement marriages following the introduction of widowers' benefits (regulation 18).
Provision is made for the payment of pensions to widowers in respect of service accrued by a teacher after 5th April 1988. Such a pension is, however, limited to one half of the teacher’s guaranteed minimum pension if there is in existence a nomination made by the teacher in respect of a person other than her spouse (regulation 19).
Regulation 65 of the 1977 Regulations is amended to take account of the introduction of automatic widowers' benefits so that from 6th April 1988 married women teachers can no longer make a nomination. In addition, the categories of persons who may be nominated are amended to prevent a child, however related to any teacher, from being nominated (regulation 20).
Regulation 72 of the 1977 Regulations is amended to extend to those teachers who elect to opt out of the Scheme a right to a transfer value. Further amendments allow transfer values to be paid to personal and self employed pension schemes and ensure that, following payment of a transfer value, the 1977 Regulations cease to apply to the accrued rights to which it relates (regulation 22).
Regulation 73 of the 1977 Regulations is amended to reflect that transfer values may be received from institutions managing personal pension schemes or self employed pension arrangements (regulation 23).
Following changes to legislation governing tax relief on pension contributions, the minimum contribution period for the purchase of past added years can be reduced from 5 years to one year for certain methods of payment. Schedule 2A to the 1977 Regulations is accordingly amended and new tables are supplied.
Schedule 7 to the 1977 Regulations is amended to take account of the introduction of widowers' benefits and the reduction in the period giving rise to entitlement of benefits. The reduction in the period giving rise to entitlement to benefits, however, has not been carried through to Tables 1 and 2, thus improving entitlement to short-term pensions (regulation 26).
Schedule 8 to the 1977 Regulations is amended to take account of the introduction of widowers' benefits and to make one improvement in relation to children’s pensions when a widow's, widower’s or adult nominated beneficiary’s pension ceases for any reason (regulation 27).
Schedule 10 to the 1977 Regulations is extended to take account of personal pension schemes and self employed pension schemes which cannot accept that part of a transfer value which represents guaranteed minimum pension liability and, to provide for this, reduction of a transfer value where a teacher opts out of the Scheme (regulation 29).
Regulation 31 provides that certain provisions of these Regulations apply only where cessation of employment or death occurred after 6th April 1988.
These Regulations, apart from regulations 3(a), 7, 24 and 25, have retrospective effect as authorised by section 12 of the Superannuation Act 1972.
Regulation 32 permits a person to opt out if placed in a worse position by any of these Regulations.
The remaining regulations are consequential.

---
Source: https://www.legislation.gov.uk/uksi/1989/666/note (the official version)
Page: https://openlegislation.uk/teachers-superannuation-scotland-amendment-regulations-1989/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.