Regulation 27 Amendment of the Teachers' Superannuation (Scotland) Regulations 2005

After regulation E6 (entitlement to payment of retirement benefits) insert–

“Eligibility for payment of phased retirement benefits

E6A

(1)

In these Regulations, “phased retirement benefits” means retirement benefits to which a teacher may be eligible under this regulation.

(2)

A teacher in pensionable employment who is qualified for retirement benefits is eligible to receive a part of his or her retirement benefits before he or she becomes entitled to payment of those benefits if–

(a)

he or she has attained the age of 55; and

(b)

the teacher’s employer at the time of an election under paragraph (4) has certified that the teacher will continue in pensionable employment such as to result in a reduction of contributable salary of at least 25% as compared with the average annual rate of his or her contributable salary for the six months prior to the end of his or her previous employment from the first day of pensionable employment at the reduced contributable salary.

(3)

A teacher who is qualified for retirement benefits is also eligible to receive a part of his or her retirement benefits before he or she becomes entitled to payment of those benefits if–

(a)

he or she has attained the age of 55;

(b)

after attaining that age he or she ceases to be in pensionable employment;

(c)

within six months of the last day of that employment he or she has–

(i)

secured further pensionable employment; or

(ii)

secured further employment, otherwise than as a teacher, in an establishment in which employment as a teacher would by virtue of Schedule 2 be pensionable employment; and

(d)

his or her employer in the further employment has certified that there has been a reduction of the teacher’s salary of at least 25% as compared with the average annual rate of his or her contributable salary for the six months prior to the end of his or her previous employment from the first day of the further employment at the reduced salary.

(4)

Eligibility to phased retirement benefits pursuant to this regulation is conditional upon–

(a)

the teacher making a maximum of two elections for such benefits, with each election being accompanied by certification as prescribed in paragraph (2)(b) or (3)(d); and

(b)

the election being made within three months of starting employment as referred to in paragraph (2)(b) or securing further employment as referred to in paragraph (3)(c).

(5)

Subject to paragraph (7) the election shall specify a percentage (“the election percentage”), not exceeding 75% by reference to which retirement benefits are to be calculated in accordance with paragraphs (8) to (10).

(6)

Where in the 12 month period following the reduction in contributable salary a teacher receives an increase in remuneration in excess of the standard increase as defined in regulation E34(13)(c) such as to give that teacher remuneration equal to 75% or more of his or her salary prior to the reduction, then any election made pursuant to this regulation ceases to have effect.

(7)

Where the teacher is a teacher with mixed service the election may specify that it only applies to the part of the teacher’s effective reckonable service which was before the start of the new employment after the relevant break of service or only applies to the part of the teacher’s effective service which was after the start of the new employment after the relevant break of service.

(8)

Where the election is the first or only election the phased retirement benefits are calculated on the basis specified in regulation E7(2) and (where applicable) E8(2) but–

(a)

the teacher’s pensionable salary is calculated as if his or her pensionable salary service ended immediately at the date of the change in employment; and

(b)

the teacher’s effective reckonable service is the election percentage of his or her reckonable service up to the date of the change in employment.

(9)

Where the election is the second election, phased retirement benefits are calculated on the basis specified in regulation E7(2) and (where applicable) E8(2) but–

(a)

the teacher’s pensionable salary is calculated in the manner specified in paragraph (8); and

(b)

the teacher’s effective reckonable service is–

(i)

the election percentage of the teacher’s reckonable service up to the date of the second change in employment; less

(ii)

the amount of reckonable service calculated in accordance with paragraph (8)(b).

(10)

Phased retirement benefits calculated in accordance with paragraph (8) or (9) are adjusted by multiplication by the appropriate factor, (in the case of retirement pension the adjustment is effected) in the same way as is specified in regulation E7(6).

(11)

A teacher who has elected to pay additional contributions under regulation C4B and who has elected for phased retirement benefits, may elect also for payment in full of those additional benefits to which he or she is entitled under that regulation, multiplied by the appropriate factor in the same way as is specified in regulation E7A(6).

(12)

In calculating the factor by which additional benefits referred to in paragraph (11) are to be multiplied pursuant to regulation E7A(3) or (4)–

(a)

RI is the retail prices index for the second month before the month in which the change in pensionable employment occurred; and

(b)

the definition of X has effect as if for “the date on which the teacher became entitled to payment of retirement benefits” there were substituted “the date of the change in pensionable employment”.

(13)

Where the employer referred to in paragraph (3)(d) is unable to certify as prescribed in that paragraph because the previous employer has not provided them with the necessary information, the Scottish Ministers may determine nevertheless whether the teacher shall be entitled to phased retirement benefits.

(14)

In this regulation “date of change in pensionable employment”, where the teacher falls within paragraph (2), is the date before the date on which contributable salary is reduced, and where the teacher falls within paragraph (3) is the date of leaving previous pensionable employment.”.