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The Secretary of State for Education and Skills, in exercise of the powers conferred by sections 9, 12 and 24 of, and Schedule 3 to, the Superannuation Act 1972[1], after consulting in accordance with section 9(5) of that Act with representatives of local education authorities, teachers and other persons likely to be affected, and with the consent of the Treasury[2], hereby makes the following Regulations: Citation and commencement 1. —(1) These Regulations may be cited as the Teachers' Pensions (Amendment) Regulations 2005. (2) Regulations 1, 8, 9 and 31 shall come into force on 1st September 2005, and all other regulations on 5th December 2005. Amendment of the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 2. The Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994[3] shall be amended in accordance with regulations 3 and 4. 3. —(1) Regulation 2 shall be amended as follows. (2) After the definition of "the AVC Scheme" in paragraph (3) insert the following—
(3) In the definition of "dependant" in paragraph (3) after "any surviving spouse" insert "or surviving civil partner".
7.
—(1) Regulation 16 shall be amended as follows.
(b) ceases to be payable when the person to whom it was payable marries, forms a civil partnership or begins to live with someone as if they were husband and wife or as if they were civil partners.".
(4) After paragraph (5) insert the following—
Amendment of the Teachers' Pensions Regulations 1997
10.
—(1) Regulation C11 shall be amended as follows.
11.
—(1) Regulation D2 shall be amended as follows.
(5) In paragraph (4) for "a widower's pension payable under paragraph (3)(d)" substitute "a widower's or surviving civil partner's pension payable under paragraph (3)(d) or (e)".
(4) In paragraph (7)(c) for "widow or widower" substitute "widow, widower or surviving civil partner".
(3) In paragraph (6)(c) for "widow or widower" substitute "widow, widower or surviving civil partner".
(b) a parent, step-parent, brother or sister of the appointor who is widowed or is a surviving civil partner.".
(4) For paragraph (4)(a) substitute the following—
(5) For paragraph (4)(b) substitute the following—
18.
—(1) Regulation E24 shall be amended as follows.
(4) In paragraph (4)(c) after "surviving spouse" insert ", surviving civil partner".
E26.— (1) This paragraph applies on the death of a person ("the deceased") who—
(b) had relevant service (within the meaning of regulation E27) amounting to—
(ii) at least 2 years in a case where the deceased was in pensionable employment at any time after 5th April 1988.
(2) Where the deceased was in pensionable employment by virtue of an election under regulation B7, for the purpose of calculating benefits in accordance with regulation E22(1A), paragraph (1)(b)(ii) has effect as if "2 years" were replaced by "1 year".
(b) was qualified for retirement benefits.
(4) Where paragraph (1) applies, a long-term pension (determined in accordance with regulation E28) is payable to the deceased's surviving spouse, his surviving civil partner or, where the conditions in paragraph (6) are satisfied, his nominated beneficiary.
(b) the nominated beneficiary was wholly or mainly financially dependent on the deceased.
(7) Where paragraph (1) or (3) applies, a long-term pension (determined in accordance with regulation E29) is payable to, or for the benefit of, a surviving child of the deceased or jointly to, or for the benefit of, his surviving children.
21.
—(1) Regulation E27 shall be amended as follows.
(b) any period beginning after 5th April 1988 in respect of which additional contributions have been paid under regulation C9 or C10, (c) any period in respect of which additional contributions have been paid under regulation C4 or C5 in accordance with an election made on or after 6th April 1988, (d) any period of reckonable service in respect of which family benefit contributions have been paid under Part IIA of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIA, (e) where a transfer value has been accepted in respect of comparable British service, any period which consists of or is attributable to service after 5th April 1988, and (f) where the deceased entered pensionable employment after 5th April 1988 and a transfer value (other than one mentioned in sub-paragraph (e)) was accepted, any period counting as reckonable service by virtue of the acceptance of the transfer value.".
(5) In paragraph (3) after "period" insert "or any period in respect of which a transfer value or cash equivalent has been paid by the Secretary of State under these Regulations".
(7) In paragraph (9) for "paragraphs (3) to (5) and (7)" (in both cases) substitute "paragraphs (3) to (5), (7) and (7A)".
(b) a woman whose nomination under regulation E23 ceased to have effect when she formed a civil partnership,
the annual rate of the children's pension is the appropriate fraction of the deceased's average salary multiplied by the sum of the notional family benefit service and the additional family benefit period.".
(5) In paragraph (3) for "paragraphs (4) to (6)" substitute "paragraphs (4) to (5)".
(8) The additional family benefit period is the period (in years) of the deceased's reckonable service (other than a period which counts as part of the notional family benefit service) in respect of which family benefit contributions have been paid under Part IIA of Schedule 6 or are treated as having been paid under Part III of Schedule 6 in respect of an election made under Part IIA.".
25.
—(1) Regulation E30 shall be amended as follows.
(b) ceases to be payable when the person to whom it was payable marries, forms a civil partnership or begins to live with someone as if they were husband and wife or as if they were civil partners.".
(4) After paragraph (3) insert the following—
(3B) For the purposes of this regulation, two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife if they were not of the same sex.".
(5) In paragraph (4)(a) after "surviving spouse" insert ", surviving civil partner".
(3) In paragraph (5)(c) for "widow or widower" substitute "widow, widower or surviving civil partner".
31. —(1) Schedule 2 shall be amended as follows. (2) In paragraph 6(a) after "university," omit "and". (3) In paragraph 6(b) for "Art." substitute "Art, and". (4) After paragraph 6(b) insert the following—
32.
—(1) Schedule 6 shall be amended as follows. 13A. —(1) A person is a qualifying person for the purposes of this Part if he is—
(b) in pensionable employment.
(2) A qualifying person may by giving notice in writing to the Secretary of State before the end of the election period elect to pay family benefit contributions attributable to a period of his reckonable service which ended before 6th April 1988.
(b) he has been a qualifying person for a continuous period of 6 months.
(5) The person who makes an election under this paragraph must specify in the notice the period in respect of which the election is made, which must be either the whole of the qualifying person's reckonable service which ended before 6th April 1988 or such part of such service as consists of one or more whole years.
(b) the payment period exceeds a year.
(2) Where this paragraph applies, except as otherwise provided in Part III, the qualifying person must pay family benefit contributions to the Secretary of State by way of monthly payments from his contributable salary at the percentage rate specified under paragraph 13A(6) or, where the rate is varied under paragraph 14(4), at the specified higher rate for the duration of the payment period.
(4) Where the payment period would (apart from this sub-paragraph) end on a day other than the last day of a month, the payment period ends with the last day of the month in which it would otherwise end. 13C. —(1) Except where paragraph 13B applies, the person who makes an election under paragraph 13A must pay family benefit contributions to the Secretary of State by way of a lump sum calculated in accordance with the Method 2 formula in sub-paragraph (2) within 3 months of receiving written notice of the amount of the lump sum. (2) The Method 2 formula is A x B x C,
(3) In paragraph 14(1)(a) omit "or".
(6) After paragraph 14(10) insert the following—
(7) In paragraph 16 for "or widower" substitute ", widower, surviving civil partner".
(b) who is placed in a worse position than he would have been in if a provision made by regulations 8 to 34 of these Regulations ("the relevant provision") had not applied in relation to the protected benefit.
(2) A protected benefit is one which is being paid or may become payable under the Teachers' Pensions Regulations 1997 to, or in respect of, a person who was employed in qualifying employment but ceased to be employed, or died, before 5th December 2005.
(ii) of contributions paid in respect of such periods of reckonable service, and
(b) in determining entitlement to, or the amount of, the benefit to that extent he shall be treated as if he had never re-entered pensionable employment again at any time after the cessation referred to in paragraph (2) (but without prejudice to the application of this paragraph),
and the Teachers' Pensions Regulations 1997 shall apply accordingly. (This note is not part of the Regulations.) This instrument further amends the Teachers' Superannuation (Additional Voluntary Contributions) Regulations 1994 ("the AVC Regulations"), the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997 ("the Compensation Regulations") and the Teachers' Pensions Regulations 1997 ("the Pensions Regulations"). The Pensions Regulations are the basis upon which the Teachers' Pension Scheme ("the Scheme") operates. The AVC Regulations enable Scheme members to pay additional voluntary contributions. The Compensation Regulations provide for compensation to be paid to teachers in certain circumstances on termination of employment. Most of the amendments made by this instrument make provision following the creation of the status of civil partner by the Civil Partnership Act 2004. In addition to minor and drafting amendments and those which correct errors, the following changes are made. Regulation 3(3) amends regulation 2 of the AVC Regulations so that "dependant" includes a surviving civil partner. Regulation 7 amends regulation 16 of the Compensation Regulations to provide for the period for which short- and long-term compensation is payable to the surviving civil partner of a teacher who was credited with a period of service on termination of employment. Regulations 9 and 31 amend regulation B3 of and Schedule 2 to the Pensions Regulations so that Welbeck, the Defence Sixth Form College, may become a Scheme employer on the same basis as an independent school. Regulations 10 and 32(2) to (5) and (7) amend regulation C11 and Schedule 6 to enable a Scheme member who forms a civil partnership to pay family benefit contributions in respect of periods of his service prior to 6th April 1988. Regulation 12 amends regulation E1 to require a pension to be paid in certain circumstances to a surviving civil partner of a Scheme member who had a guaranteed minimum pension (within the meaning of the Pension Schemes Act 1993).[7] Regulations 13 and 34 amend regulation E11 and Schedule 11 to enable a Scheme member to allocate his pension to provide an alternative benefit for his civil partner. Regulations 14, 15 and 29 amend regulations E20, E21 and I7 to require any death grant or supplementary death grant to be paid, in the absence of a nominee, to the Scheme member's surviving civil partner in the first instance. Regulations 16(2), 18, 19, 20, 21(2) and (4) and 23(2), (3), (6) and (7) amend regulations E22 and E24 to E28 to provide for short- and long-term pensions to be paid to surviving civil partners of Scheme members. Regulation 16(3) amends regulation E22 so that a "child" for the purposes of the Pensions Regulations does not include someone who is a civil partner. Regulation 17 amends regulation E23 so that a civil partner cannot nominate, or be nominated as, a beneficiary to receive a survivor's pension. Regulations 20 (insofar as it relates to new regulation E26(5)), 21(2) and 23(5) clarify the circumstances in which a survivor's pension is payable to both a widower and a beneficiary on the death of certain women members of the Scheme. No change of effect is intended. Regulation 24 amends regulation E29 to provide for the calculation of long-term pensions payable to the children of Scheme members who are civil partners. Regulation 25 amends regulation E30 which provides for the circumstances in which a survivor's pension ceases to be payable. Regulation 32(6) amends paragraph 14 of Part III of Schedule 6 to make it clear that a person paying family benefit contributions who ceases to be in pensionable employment but elects to pay an additional contribution under regulation C9 or C10 must continue to pay family benefit contributions based on his notional salary calculated in accordance with regulation C9 or C10. Regulation 35 makes transitional provision for opting out where rights in relation to former Scheme members are adversely affected. Some Scheme employers are in the business, charity and voluntary sectors. An assessment of the impact on these sectors together with the cost implications to public sector pension schemes (including the Scheme) of the provisions of this instrument is included in the regulatory impact assessment that accompanied the Civil Partnership Act 2004. A copy of that assessment has been placed in the library of each House of Parliament and can be viewed at http://www.dti.gov.uk/access/ria/index.htm#equality. Notes: [1] 1972 c.11; section 9 was amended by sections 4, 8 and 11 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7), section 190 of, and Schedule 8 to, the Pension Schemes Act 1993 (c.48) and S.I. 2001/3649; section 12 was amended by section 10 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7); and section 24 was amended by section 13(1) of, and paragraph 10 of Schedule 2 to, the Police Pensions Act 1976 (c.35). The Secretary of State's functions under sections 9, 12 and 24 of the Superannuation Act 1972 were transferred, in or as regards Scotland, to the Scottish Ministers by virtue of section 63 of the Scotland Act 1998 (c.46), read with article 2 of and Schedule 1 to the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).back [3] S.I. 1994/2924, amended by S.I. 1995/2004, S.I. 1997/3001, S.I. 2000/666, S.I. 2000/3028 and S.I. 2001/3649.back [4] S.I. 1997/311, amended by S.I. 1998/2256, S.I. 1999/608 and S.I. 2000/664.back [5] S.I. 1997/3001, amended by S.I. 1998/2255, S.I. 1999/607, S.I. 2000/665, S.I. 2000/2431, S.I. 2000/3028, S.I. 2001/871, S.I. 2002/3058 and S.I. 2004/587.back
[a] Amended by Correction Slip. Page 1; the date made should read "4th August 2005". back
ISBN 0 11 073222 7
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