Explanatory note

These Regulations make further amendments to the Teachers' Superannuation (Scotland) Regulations 2005 (“the 2005 Regulations”), the Teachers' Superannuation (Additional Voluntary Contributions) (Scotland) Regulations 1995 (“the 1995 Regulations”) and the Teachers (Compensation for Premature Retirement and Redundancy) (Scotland) Regulations 1996 (“the 1996 Regulations”).

Regulations 3, 4, 7(2), 8, 18 and 27(3) and (5) amend the 2005 Regulations so as to provide for the removal of the cap on contributable salary from the Scottish Teachers' Superannuation Scheme (“STSS”) with effect from 1st April 2008. Section 12 of the Superannuation Act 1972 confers express powers to make regulations having retrospective effect.

Regulation 3 amends regulation C1 of the 2005 Regulations. Paragraph (5) of regulation C1 is amended and paragraph (5A) of regulation C1 is inserted to reflect the repeal of section 590C of the Income and Corporation Taxes Act 1988 (c. 1) and its replacement for transitional purposes by provisions of the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2006 (S.I. 2006/364). Regulation 3 also amends regulation C1 of the 2005 Regulations to leave out paragraphs (6), (7) and (8). This amendment is consequential on the insertion of regulation C1A into the 2005 Regulations.

Regulation 4 inserts regulation C1A into the 2005 Regulations. Regulation C1A provides for the disapplication in specified circumstances of the cap on contributable salary provided by Regulation C1(5) of the 2005 Regulations.

Regulations 7(2) and 8 make provision which is consequential on the removal by regulation C1A of the 2005 Regulations of the cap on contributable salary. Regulation 8 inserts regulation D5 into the 2005 Regulations. Regulation D5 makes provision for the calculation of reckonable service where the cap on contributable salary ceases to have effect by virtue of regulation C1A of the 2005 Regulations.

Regulation 18 amends regulation E31 of the 2005 Regulations. The amendment provides that adjustments may be made to the calculation of family benefits should the apportionment of service have taken place under regulation D5 of the 2005 Regulations.

Regulation 27(3) and (4) amend the 2005 Regulations to provide for definitions which are necessary to remove the cap on contributable salary.

Regulations 6 and 28(2) and (3) amend regulation C4B and Schedule 2A of the 2005 Regulations to provide that a “pre 2007 entrant” who has reached the age of 60 but who is still in pensionable employment can elect under regulation C4B of the 2005 Regulations to purchase additional benefits.

Regulation 9 amends regulation EA1 of the 2005 Regulations which defines the term “pre 2007 entrant” as used in those Regulations. The effect of the amendment is to provide for a teacher to be treated as a pre 2007 entrant if he or she satisfies the condition specified in paragraph (3A) (as inserted by regulation 9). The first element of the condition is that the teacher entered pensionable employment on or after 1st April 2007 by virtue of a transfer of undertakings or arrangements equivalent to a transfer of undertakings. The second element of the condition is that, immediately before doing so, the teacher was in employment pensionable under a public service pension scheme (as defined in paragraph (3B)) and entitled under the rules of that scheme to receive benefits on retirement from such employment before or on attaining the age of 60.

Regulations 11(2) and 12 amend regulations E7 and E8 of the 2005 Regulations which relate to the amount of a teacher’s pension and lump sum. The amendments relate to the situation where, but for regulation E8(4) of the 2005 Regulations, a teacher would be entitled to a lump sum which exceeds his or her permitted maximum (“the notional lump sum”). In those circumstances, the annual rate of the teacher’s retirement pension is increased by an amount which represents the value of the amount by which the notional lump sum exceeds the teacher’s permitted maximum.

Regulation 20 amends regulation E36 of the 2005 Regulations to require applications for a pension paid because of a teacher’s incapacity to be made within 12 months of leaving pensionable employment or of making a payment under old regulation C8 or regulation C9 of the 2005 Regulations or before the end of certain periods of leave.

Regulation 16(1) amends the definition of the expression “a teacher’s child” in regulation E26(6) of the 2005 Regulations. The amendment reinstates the limb of the definition removed by regulation 5(2) of the Teachers' Superannuation (Scotland) Amendment Regulations 2006 (S.S.I. 2006/308) (“the 2006 Regulations”) which now includes a child who is accepted by a teacher as a member of his or her family and who is wholly or financially dependent upon the teacher. The amendment has effect from 6th April 2006 (the date on which the amendment made by regulation 5(2) of the 2006 Regulations had effect from. Section 12 of the Superannuation Act 1972 confers express powers to make regulations having retrospective effect. Paragraphs (3) and (4) contain transitional provisions so that the amendment made by paragraph (1) does not apply to any relevant benefits payable in the period from 6th April 2006 to 30th June 2008, where payments have been made to one or more children on the basis of regulation E26(6) of the 2005 Regulations having effect without the amendment.

Regulation 21 amends regulation G1 of the 2005 Regulations. The amendment makes provision for transfers to be paid in certain circumstances in respect of normal pension age 65 members who have attained the age of 60.

Regulations 5, 7(3), 10(2), 14(2), 17(2), 19 and 23 amend various provisions of the 2005 Regulations to insert references to parental leave (as defined in Schedule 1 of the 2005 Regulations).

Regulation 10(3) amends regulation E6(5) of the 2005 Regulations. It inserts what were previously sub-sub-paragraphs (iv) and (v) of regulation E6(1)(c) of the 2005 Regulations into the 2005 Regulations as regulation E6(5)(d)(i) and (ii). These provisions were omitted in error from the revised regulation by regulation 26 of the Teachers' Superannuation (Scotland) Amendment Regulations 2007 (S.S.I. 2007/189).

Regulations 10(4), 11(3), 13, 15, 22, 24, 26, 27(2) and 29 replace the term “Government Actuary” where it appears in the 2005 Regulations with the term “scheme actuary”. Regulation 27(4) inserts a definition of “scheme actuary” in the 2005 Regulations. This means that a member of STSS may appoint an actuary other than the Government Actuary to advise on scheme finances.

Regulation 17(3) amends an incorrect cross reference in regulation E29 of the 2005 Regulations. The cross reference to regulation E7(4) has been corrected to regulation E7(6).

Regulation 25 amends the dispute procedures set out in regulation J8 of the 2005 Regulations which requires that they comply with those set out in the Pensions Act 1995 (c. 26).

Regulation 30 makes transitional provision for opting out where rights in relation to former scheme members are adversely affected by the changes made to the 2005 Regulations by these Regulations.

Regulation 32 inserts a definition of “old Regulation C8” into the 1995 Regulations.

Regulation 33 amends regulation 12 of the 1995 Regulations so that the opportunity for the authorised provider to extend the period of beneficiary payments is to be within the over arching boundaries specified.

Regulation 34 amends regulation 16 of the 1995 Regulations relating to the options available where a teacher dies within 10 years of accessing benefits.

Regulation 35 amends the dispute procedures set out in regulation 19 of the 1995 Regulations which requires that they comply with those set out in the Pensions Act 1995.

Regulation 36 amends regulation 16B of the 1996 Regulations to increase the amount of discretionary severance compensation from 66 weeks to 104 weeks.

An impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.