Regulation C12 Calculation for the purposes of regulation C11

(1)

The balance of contributions referred to in regulation C11(5) is to be calculated as at the date of the calculation, or the teacher’s 70th birthday if earlier (“the calculation date”).

(2)

The balance is (A − B) − C, where–

A is the total of the amounts specified in paragraph (3);
B is the total of the deductions specified in paragraph (4); and
C is the amount of the tax chargeable on (A B) under section 598 of the Taxes Act^f1.

(3)

The amounts are those of–

(a)

all contributions paid, under regulations C3, C5 and C8 to C10 except–

(i)

any treated as employer’s contributions; and

(ii)

any paid in respect of a period of employment for which an incapacity gratuity under regulation E21 has been received;

(b)

contributions paid in respect of any comparable British service in respect of which the teacher is entitled to count reckonable service by virtue of the acceptance of a transfer value;

(c)

if the teacher was entitled to count any reckonable service by virtue of the acceptance of a transfer value in respect of an employment that was not comparable British service, either–

(i)

any payment by way of repayment of contributions, and interest, that he or she would otherwise have been entitled to receive under the rules of the pension scheme to which he or she was subject in the employment; or

(ii)

if that scheme made no provision for the repayment of contributions, the contributions he or she paid under it in respect of the employment; and

(d)

interest to the calculation date, at 3 per cent per annum, compounded with yearly rests–

(i)

on the contributions mentioned in sub paragraphs (a) and (b), from the first day of the financial year following that in which they were paid; and

(ii)

where sub paragraph (c) applies, from the first day of the financial year following that in which the transfer value was paid.

(4)

The deductions are–

(a)

the amount of any previous repayment of contributions;

(b)

if the Scottish Ministers have made a payment in lieu of contributions or the teacher is entitled to equivalent pension benefits, half the amount of the payment in lieu of contributions that was, or as the case may be would otherwise have been, made; and

(c)

if the Scottish Ministers have paid a contributions equivalent premium, the amount recoverable by them under sections 61 to 63 of the 1993 Act^f2.

Annotations

Footnotes

f1: 1988 c. 1. Section 595 is amended by the Finance Act 1989 (c. 26), Schedule 6 and is prospectively repealed by the Finance Act 2004 (c. 12) Schedule 42, Part 3.
f2: 1993 c. 48. Section 61 is amended and repealed in part by the Pensions Act 1995 (c. 26) (“the 1995 Act”), Schedules 5 and 7 respectively; section 62 is repealed in part by the 1995 Act, Schedule 7; section 63 is amended by the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) section 1 and Schedule 1 and repealed in part by the 1995 Act, Schedule 1.