The Teachers' Pensions Regulations 2010

• Citation: S.I. 2010/990
• Sections: 343

Section 1 Citation and commencement

These Regulations may be cited as the Teachers' Pensions Regulations 2010 and come into force on 1st September 2010.

Section 2 Interpretation

(1) Schedule 1 contains a glossary of expressions.

(2) In these Regulations, unless the context otherwise requires, an expression listed in the left-hand column of Schedule 1 has the meaning in, or the meaning contained in the provision referred to in, the corresponding entry in the right-hand column.

Section 2A Marriage of a same sex couple

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Section 2B Living together as a same sex couple

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Section 2C Continuation of marriage where Scheme member acquires new legal gender

(1) Where—

(a) a deceased Scheme member was a woman by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b) at the time of the member’s death, she was married to a woman and that marriage subsisted before the time when the certificate was issued,

the Scheme member’s widow is to be treated for the purpose of these Regulations as if the certificate had not been issued.

(2) Where—

(a) a deceased Scheme member was a man by virtue of a full gender recognition certificate having been issued under the Gender Recognition Act 2004, and

(b) at the time of the member’s death, he was married to a man and that marriage subsisted before the time when the certificate was issued,

the Scheme member’s widower is to be treated for the purpose of these Regulations as if the certificate had not been issued.

Section 3 Meaning of “employer” in certain cases

(1) Where a teacher is employed by the governing body of a school maintained by a local authority, that authority is, for the purposes of these Regulations, treated as the employer of the teacher.

(2) But for the purpose of paragraph 2(2) of Schedule 4 (contributions for additional pensions) such a governing body is also treated as the employer of such a teacher.

Section 4 Meaning of “further employment”

(1) A person (P) who re-enters pensionable employment after a retirement pension falling within paragraph (2) or a short-service serious ill-health grant becomes payable enters “ further employment ” for the purpose of these Regulations.

(2) A retirement pension falls within this paragraph if—

(a) on the pension becoming payable, P had no reckonable service other than reckonable service previously used to calculate a benefit (including the pension), and

(b) the pension is not an ill-health pension.

(3) Paragraph (2)(b) does not apply if at the time when P enters the employment mentioned in paragraph (1)—

(a) where P is a pre-2007 entrant, P is at least 60, or

(b) where P is a person with mixed service or a 2007 or later entrant, P is at least 65.

Section 5 Meaning of “pensionable employment”

In these Regulations a reference to “ pensionable employment ” includes—

(a) in relation to employment before 1st November 1988, a reference to employment in reckonable service as defined in TSR 1976 or previous provisions;

(b) in relation to employment on or after 1st November 1988 and before 1st September 2010, a reference to pensionable employment as defined in Part B of TPR 1997 or Part B of TSR 1988.

Section 6 Pensionable employment: general

(1) An employment in a capacity mentioned in Part 1 of Schedule 2 is pensionable employment.

(1A) In this regulation—

(a) paragraphs (2) and (3) apply to a person’s employment before the automatic enrolment date in relation to that person in respect of that employment; and

(b) paragraphs (2A) and (3A) apply to a person’s employment on or after the automatic enrolment date in relation to that person in respect of that employment.

(2) An employment in a capacity mentioned in Part 2 of Schedule 2 is pensionable employment if the person in the employment makes an election under regulation 10 (election for employment to be pensionable) by reason of falling within paragraph (2)(b) of that regulation, in respect of that employment.

(2A) A person’s employment in a capacity mentioned in Part 2 of Schedule 2 is pensionable employment if either—

(a) an election made under regulation 10 (election for employment to be pensionable) has effect before the automatic enrolment date; or

(b) the employer enrols the person into the Scheme in relation to that employment, and no election under regulation 9 (election for employment not to be pensionable) has effect.

(3) An employment in a capacity mentioned in Part 3 of Schedule 2 is pensionable employment if—

(a) the person in the employment makes an election under regulation 10 (election for employment to be pensionable) by reason of falling within paragraph (2)(b) of that regulation, in respect of that employment, and

(b) the person's employer consents to the election being made.

(3A) A person’s employment in a capacity mentioned in Part 3 of Schedule 2 is pensionable employment if either—

(a) an election made under regulation 10 (election for employment to be pensionable) has effect before the automatic enrolment date; or

(b) the employer enrols the person into the Scheme in relation to that employment, and no election under regulation 9 (election for employment not to be pensionable) has effect.

(4) Where a person who made an election under regulation B1A(4) of TPR 1997 (provision for certain organisers) remains employed as an organiser—

(a) by a local authority, or

(b) by a function provider in connection with the performance of a function or service in respect of which the function provider is accepted in accordance with regulation 14 (accepted function providers)

to undertake the same, or substantially the same, functions as the person was undertaking immediately before the date of the election under either the same contract of employment or a contract of employment which has effect by virtue of regulation 4 of the Transfer of Undertakings (Protection of Employment) Regulations 2006 , that employment is pensionable employment.

(5) A person who immediately before 1st September 2010 was in employment (“ the first employment ”) which was pensionable employment under regulation B2 of TPR 1997 (continuing employment) is in pensionable employment while employed—

(a) in the first employment, or

(b) in employment which is in continuation of the first employment.

(6) This regulation is subject to regulation 7 (employment not pensionable: general) and regulation 8 (employment not pensionable: contributions not paid).

Section 7 Employment not pensionable: general

(1) A person is not in pensionable employment—

(a) before the person has reached the age of 16 , or

(b) after the person has reached the age of 75.

(2) An employment is not pensionable employment unless the person (P) in that employment is entitled to be paid—

(a) P's salary in full, or

(b) where P is on sick leave or on adoption, maternity, parental , shared parental , parental bereavement or paternity ... leave, not less than half P's salary, or

(c) statutory adoption, maternity or paternity pay ... statutory shared parental pay or statutory parental bereavement pay .

(3) The employment of a person who makes an election under regulation 9 (election for employment not to be pensionable) in respect of that employment is not pensionable while the election has effect.

(4) Where a person with a financial interest in an accepted school or an accepted phased withdrawal school is in employment as a teacher in that school, that employment is not pensionable employment.

(5) For the purpose of paragraph (4) a “ financial interest ” does not include the right to receive a salary.

(6) Where a person who immediately before 1st September 2010 was in part-time employment which was not pensionable by virtue of regulation B1(4) of TPR 1997 continues in the same employment, that employment is not pensionable employment.

(7) Paragraph (6) ceases to apply if—

(a) the person makes an election under regulation 10 (election for employment to be pensionable) by reason of falling within sub-paragraph (c) of paragraph (2) of that regulation;

(b) the person enters other employment which is pensionable employment;

(c) the person’s employer makes arrangements under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of PA 2008 in respect of that employment; or

(d) the person’s employer is an accepted employer and makes arrangements under a Participation Agreement in respect of that employment.

(8) Where a person who immediately before 1st September 2010 was in employment which was not pensionable by virtue of regulation B1(5A) of TPR 1997 continues in the same employment, that employment is not pensionable employment.

(9) Paragraph (8) ceases to apply if—

(a) the person makes an election under regulation 10(1) (election for employment to be pensionable) by reason of falling within sub-paragraph (d) of paragraph (2) of that regulation;

(b) the person enters pensionable employment;

(c) the person’s employer makes arrangements under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of PA 2008 in respect of that employment; or

(d) the person’s employer is an accepted employer and makes arrangements under a Participation Agreement in respect of that employment.

(10) A person—

(a) who is in part-time employment in a capacity mentioned in Schedule 2,

(b) to whom a teacher's pension became payable under regulation E4(6) of TSR 1988 on or before 31st March 1997,

(c) to whom the pension remains payable (including a case where the annual rate of the pension has been reduced to zero under these Regulations) because the person does not fall within regulation 68(2), and

(d) who has not reached the age of 60

is not in pensionable employment.

(11) Where a person is at the same time—

(a) in full-time pensionable employment, and

(b) in part-time employment in a capacity mentioned in Schedule 2 or in part-time employment which apart from this paragraph is pensionable by virtue of regulation 6(4) or (5),

the part-time employment is not pensionable employment.

(12) In these Regulations “ excluded employment ” means employment which is not pensionable employment by virtue of—

(a) paragraph (3);

(b) paragraph (6);

(c) paragraph (8).

Section 8 Employment not pensionable: contributions not paid

(1) This regulation applies where—

(a) the Secretary of State makes a demand under regulation 28(5) (deduction by employers of contributions, etc. from salary, payment in default and interest) in respect of contributions payable under regulation 18 (teachers' ordinary contributions) (“the demand”),

(b) the whole of the sum so demanded together with interest thereon has not been paid to the Secretary of State by the end of the period of 3 years beginning on the date on which the demand is made,

(c) the Secretary of State decides that this regulation should apply and gives written notice to that effect to the person to whom the demand was given, and

(d) in a case where any amount has been paid to the Secretary of State in part satisfaction of the demand, the Secretary of State repays that amount.

(2) Any period of the employment to which the contributions referred to in paragraph (1)(a) relate is not to be treated as a period of pensionable employment except to the extent that regulation 27(3) covers it .

Section 9 Election for employment not to be pensionable

(1) A person may make an election under this regulation in respect of a particular pensionable employment by giving written notice to the employer.

(2) An election has effect from the first day of the month after the month in which the notice is given.

(3) But—

(a) if the notice is given within 3 months after the start of employment in a capacity mentioned in Schedule 2, the election has effect from the first day of that employment; and

(b) if the notice is given within 3 months after the date on which arrangements made by the employer under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of PA 2008 have effect in respect of that employment, the election has effect from that date.

(4) An election ceases to have effect from the earliest of—

(a) the date on which an election under regulation 10 (election for employment to be pensionable) has effect; and

(b) the date on which arrangements made by the employer under section 3(2) (automatic enrolment) or section 5(2) (automatic re-enrolment) of PA 2008 have effect in respect of the employment ; and

(c) a subsequent fair deal transfer date in relation to service in the employment.

Section 10 Election for employment to be pensionable

(1) A person mentioned in paragraph (2) may make an election under this regulation in respect of a particular employment by giving written notice to the Secretary of State save that a person mentioned in paragraph (2)(b), (2)(c) or (2)(d) may only make an election before the automatic enrolment date in relation to that person in respect of that employment.

(2) The persons are—

(a) a person in, or about to enter, employment in a capacity mentioned in Schedule 2 who has previously made an election under regulation 9 (election for employment not to be pensionable);

(b) a person in, or about to enter, employment in a capacity mentioned in Part 2 or 3 of Schedule 2;

(c) a person in part-time employment which is not pensionable by virtue of regulation 7(6);

(d) a person in part- or full-time employment which is not pensionable by virtue of regulation 7(8).

(3) An election has effect from the first day of the month after the month in which the notice is given.

(4) But where the election is made by a person mentioned in paragraph (2)(a) or (b) who gives notice before or within 3 months after the start of employment in a capacity mentioned in Schedule 2, the election has effect from the first day of that employment.

Section 11 Backdating elections for employment to be pensionable

(1) Where—

(a) an election under regulation 10 (election for employment to be pensionable) is made by a person in respect of an employment in a capacity mentioned in Part 2 or 3 of Schedule 2, in non-pensionable part-time employment or in non-pensionable post-retirement employment,

(b) (except where the election is made by a person in non-pensionable post-retirement employment) at the same time as notice of the election is given the person making the election and the person's employer request that the Secretary of State backdate the election (by making a determination in accordance with paragraph (2)(b) or (4)(b)) and the Secretary of State agrees to do so,

(c) the person making the election and the person's employer inform the Secretary of State that they agree that contributions in accordance with sub-paragraph (d) be paid, and

(d) the sum mentioned in paragraph (8) together with interest at the standard rate is paid to the Secretary of State,

the person's relevant employment during the back period is to be treated as pensionable employment.

(2) Where the election is made by a person in respect of an employment in a capacity mentioned in Part 2 or 3 of Schedule 2—

(a) “ relevant employment ” means the employment in respect of which the election is made, and

(b) the “ back period ” means the period beginning on a date determined by the Secretary of State and ending on the day on which the election has effect.

(3) The date determined for the purpose of paragraph (2)(b) must be such that the back period does not begin before or during any period of the person's opted-out employment.

(4) Where the election is made by a person in non-pensionable part-time employment—

(a) “ relevant employment ” means non-pensionable part-time employment, and

(b) the “ back period ” means the period beginning on a date determined by the Secretary of State and ending on the day on which the election has effect.

(5) The date determined for the purpose of paragraph (4)(b) must be such that the back period does not begin before or during—

(a) any period of the person's opted-out employment, or

(b) any period during which the person was employed in relevant employment by an employer who does not join in the request mentioned in paragraph (1)(b) or inform the Secretary of State as mentioned in paragraph (1)(c).

(6) Where the election is made by a person in non-pensionable post-retirement employment—

(a) “ relevant employment ” means non-pensionable post-retirement employment, and

(b) the “ back period ” means the period beginning on a date agreed between the person and the person's employer and ending on the day on which the election has effect.

(7) The date agreed for the purpose of paragraph (6)(b)—

(a) must not be before 1st April 2000, and

(b) must be such that the back period does not begin before or during—

(i) any period of any of the person’s opted-out employments, or

(ii) any period during which the person was employed in relevant employment by an employer who does not inform the Secretary of State as mentioned in paragraph (1)(c).

(8) The sum is a sum equal to the contributions (due from both the person making the election and the person's employer or employers) which would have been payable to the Secretary of State if the person's relevant employment during the back period had been pensionable employment.

(9) Where the election is made by a person with mixed service, the person's relevant employment during the back period is to be treated for the purpose of these Regulations as occurring after the post-break employment start date.

(10) Where the election is made by a 2007 or later entrant, the person's relevant employment during the back period is to be treated for the purpose of these Regulations as occurring after 31st December 2006.

(11) In this regulation—

“ non-pensionable part-time employment ” means employment which is not pensionable by virtue of regulation 7(6);

“ non-pensionable post-retirement employment ” means employment which is not pensionable by virtue of regulation 7(8);

“ opted-out employment ” means—

employment in a capacity mentioned in Part 1 of Schedule 2 which was not pensionable by virtue of an election under regulation 9 (election for employment not to be pensionable);

employment in a capacity mentioned in regulation 6(4) or (5) which ceased to be pensionable by virtue of an election under regulation 9 (election for employment not to be pensionable), and where employment falls within paragraph (a) or (b) and is also—

employment in a capacity mentioned in Part 2 or 3 of Schedule 2,

non-pensionable part-time employment, or

non pensionable post-retirement employment,

that employment is opted-out employment.

Section 12 Election for part-time employment before 1st May 1995 to be pensionable

(1) The employer of a person (P) may, by giving written notice to the Secretary of State, elect that a period of P's employment falling within paragraph (5) is to be pensionable.

(2) The election may relate to—

(a) the whole of the period of employment falling within paragraph (5), or

(b) a part of that period, ending on the day before the original election date, specified in the election.

(3) The election must—

(a) be made with the consent of P,

(b) contain a statement by the employer that—

(i) the employment falls within paragraph (5), and

(ii) the condition in paragraph (6) is satisfied.

(4) The election only has effect if—

(a) it is made before 1st September 2012, and

(b) P had, before 1st September 2010, elected that the period of the employment which fell after the original election date was to be pensionable.

(5) A period of P's employment falls within this paragraph if it is part-time employment on or after 8th April 1976 and before 1st May 1995—

(a) which was not pensionable employment, and

(b) which would have been pensionable employment if it had been full–time, but

(c) in respect of which P could not have elected (pursuant to regulations under SA 1972) for the employment to be pensionable.

(6) The condition in this paragraph is that the election under this regulation is made during the employment in question or within 6 months after the end of it.

(7) For the purpose of paragraph (6) where P is employed by the same employer on more than one successive contract of employment, the employment with that employer is not treated as having ended until the end of any stable employment relationship between that employer and P.

(8) For the purposes of paragraph (7) in any case where section 26 of the Further and Higher Education Act 1992 applies to P, the transferor and the further education corporation are to be treated as the same employer (and where that section applies to P by virtue of an order under section 27 of that Act the transferor further education corporation and the transferee further education corporation are to be treated as the same employer).

(9) In paragraphs (10) to (13) “ the necessary payment ” is an amount determined by the Secretary of State, after taking advice from the scheme actuary, as representing the employee's contributions calculated on the basis of the “Public Sector Settlement Model” published by the Employment Tribunals Service in May 2003 .

(10) An employer making an election is to provide the Secretary of State with such information as the Secretary of State may reasonably require to calculate the necessary payment.

(11) Where the necessary payment is made to the Secretary of State in accordance with paragraph (12), the period of part-time employment specified in the election is to be treated as pensionable employment, except where paragraph (14) applies.

(12) The necessary payment is to be made in the manner and at the times specified in arrangements agreed between the Secretary of State and P or, in default of agreement, determined by the Secretary of State.

(13) Arrangements for making the necessary payment may include—

(a) payment of a lump sum or instalments,

(b) deduction of amounts from P's retirement lump sum,

(c) payment of additional monthly contributions,

(d) reduction of the retirement pension which would otherwise be payable to P, or

(e) deduction of amounts from interest on P's retirement lump sum or retirement pension.

(14) Where—

(a) the Secretary of State is satisfied (despite the statement by the employer referred to in paragraph (3)(b)) that the employment does not fall within paragraph (5) or that the condition in paragraph (6) is not satisfied, or

(b) the election does not have effect because paragraph (4)(b) does not apply

the election is to be treated as an election by P under regulation 10 (election of employment to be pensionable) and the conditions in paragraph (1)(a) to (c) of regulation 11 (backdating elections for employment to be pensionable) are to be treated as satisfied.

(15) In this regulation “ the original election date ” means the first date on which P could have elected (pursuant to regulations under SA 1972) that the employment was to be pensionable.

Section 13 Accepted schools

(1) An establishment is an accepted school if—

(a) immediately before 1st September 2010 it was an accepted school under regulation B3 of TPR 1997, or

(b) the Secretary of State accepts it for the purpose of this regulation by giving its proprietor a written notice specifying the date on which it becomes an accepted school.

(2) An establishment may be accepted under paragraph (1)(b) only if—

(a) it is an establishment mentioned in paragraph (3),

(b) its proprietor makes a written application to the Secretary of State, and

(c) a type A guarantee is provided to the Secretary of State.

(3) The establishments are—

(a) an independent school (in England) registered under section 99 of the Education and Skills Act 2008 or (in Wales) registered under section 161 of EA 2002;

(b) an establishment providing further education constituted by an amalgamation of establishments which provided such education of which at least one was an accepted school;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the establishment which, when teachers were employed there for the purpose of the Ministry of Defence, was known as Welbeck, the Defence Sixth Form College.

(4) An establishment, if accepted by the Secretary of State under paragraph (1)(b) , becomes an accepted school from the date agreed between the Secretary of State and its proprietor, which must be the first day of a month after that in which the application under paragraph (2)(b) is made, or, if the establishment is one mentioned in paragraph (3)(b), either the first day of such a month or the date of the amalgamation referred to in that sub-paragraph.

(5) An establishment falling within paragraph (1)(a) or accepted by the Secretary of State under paragraph (1)(b) ceases to be an accepted school from the date specified in a written notice given to its proprietor by the Secretary of State.

(6) A notice under paragraph (5) may be given ...—

(a) if the proprietor of the establishment makes a written application to the Secretary of State,

(b) if the proprietor fails to comply with any provision of these Regulations or of TSAVCR 1994,

(c) if the establishment ceases to be an establishment mentioned in paragraph (3),

(d) if, where a type A guarantee was previously provided to the Secretary of State, either the type A guarantee lapses, or because of a change in circumstances, the Secretary of State considers that the type A guarantee is insufficient,

(e) if, where the proprietor of the establishment is an individual or a number of individuals, that individual or one of those individuals is an undischarged bankrupt or is the subject of a bankruptcy restrictions order or an interim order under Schedule 4A to IA 1986 , or

(f) if, where the proprietor of the establishment is a company—

(i) a proposal for a voluntary arrangement has been made or approved in relation to the company under Part 1 of IA 1986,

(ii) an administration application has been made or a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for the company under Schedule B1 to IA 1986 ,

(iii) a receiver, manager or administrative receiver has been appointed for the company under Part 3 of IA 1986,

(iv) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to the company under Part 4 or 5 of IA 1986, or

(v) notice has been received that the company may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(7) The proprietor of an accepted school must immediately give written notice to the Secretary of State of any change in proprietor or upon the occurrence of any of the events mentioned in paragraph (6)(e) or (f).

(7A) In addition, where acceptance of an establishment as an accepted phased withdrawal school takes effect on an agreed date under regulation 13A(3), the establishment ceases to be an accepted school on that date.

(8) In this regulation “type A guarantee” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the Secretary of State in respect of sums due, under these Regulations and TSAVCR 1994, from the proprietor and from any other person by whom teachers are employed at the establishment.

Section 13A Accepted phased withdrawal schools

(1) An establishment is an accepted phased withdrawal school if the Secretary of State accepts it for the purpose of this regulation by giving its proprietor a written notice specifying the date on which it becomes an accepted phased withdrawal school.

(2) An establishment may be so accepted only if—

(a) it is an accepted school,

(b) its proprietor makes a written application to the Secretary of State, and

(c) if the school is an accepted school accepted under regulation 13(1)(b), a type B guarantee is provided to the Secretary of State.

(3) An establishment, if so accepted by the Secretary of State, becomes an accepted phased withdrawal school from the date agreed between the Secretary of State and its proprietor, which must be the first day of a month after that in which the application under paragraph (2)(b) is made.

(4) An establishment so accepted by the Secretary of State ceases to be an accepted phased withdrawal school from the date specified in a written notice given to its proprietor by the Secretary of State.

(5) A notice under paragraph (4) may be given—

(a) if the proprietor of the establishment makes a written application to the Secretary of State,

(b) if the proprietor fails to comply with any provision of these Regulations or of TSAVCR 1994,

(c) if, where a type B guarantee was previously provided to the Secretary of State, either the type B guarantee lapses or, because of a change in circumstances, the Secretary of State considers that the type B guarantee is insufficient,

(d) if, where the proprietor of the establishment is an individual or a number of individuals, that individual or one of those individuals is an undischarged bankrupt or is the subject of a bankruptcy restrictions order or an interim order under Schedule 4A to IA 1986, or

(e) if, where the proprietor of the establishment is a company—

(i) a proposal for a voluntary arrangement has been made or approved in relation to the company under Part 1 of IA 1986,

(ii) an administration application has been made or a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for the company under Schedule B1 to IA 1986,

(iii) a receiver, manager or administrative receiver has been appointed for the company under Part 3 of IA 1986,

(iv) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to the company under Part 4 or 5 of IA 1986, or

(v) notice has been received that the company may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(6) The proprietor of an accepted phased withdrawal school must immediately give written notice to the Secretary of State of any change in proprietor or upon the occurrence of any of the events mentioned in paragraph (5)(d) or (e).

(7) Where an establishment ceases to be an accepted phased withdrawal school—

(a) it does not in consequence become an accepted school, but

(b) sub-paragraph (a) does not prevent a separate application being made for the establishment to be an accepted school under regulation 13.

(8) For the purposes of this regulation a type B guarantee may be provided anew or may be provided by the continuation or variation of a type A guarantee under regulation 13.

(9) In this regulation—

“accepted phased withdrawal teacher” means—

as from the date agreed under paragraph (3), a person who, immediately before that date, is in pensionable employment at the establishment under Part 1 of Schedule 2 and is entitled to salary paid in full as indicated in regulation 7(2)(a),

as from the date immediately after the end of a period of leave, which—

is of a type specified in regulation 7(2)(b), and

has a continuous duration no longer than five years,

a person who, immediately before the date agreed under paragraph (3), is in pensionable employment at the establishment but, because of that leave, is not so entitled,

as from the date immediately after the end of a period of leave, which—

is not of a type specified in regulation 7(2)(b), and

has a continuous duration no longer than five years,

a person who, immediately before the date agreed under paragraph (3), is excluded, only in consequence of that leave, from counting as being in pensionable employment at the establishment, and

as from the date immediately after the ending of the period of effect of an election under regulation 9, beginning before the date agreed under paragraph (3), a person who during that period is in employment at the establishment that, only because of the application of regulation 7(3) to that person, is excluded from counting as pensionable employment at the establishment;

“type B guarantee” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the Secretary of State in respect of sums due, under these Regulations and TSAVCR 1994, from the proprietor and from any other person responsible for employment at the establishment of accepted phased withdrawal teachers, in relation to pensions—

already payable by the establishment under these Regulations; and

payable in respect of the pensionable employment of each accepted phased withdrawal teacher at the establishment under Part 1 of Schedule 2.

Section 14 Accepted function providers

(1) A function provider is accepted pursuant to this regulation in respect of a function or service if the Secretary of State gives it a written notice specifying—

(a) that function or service, and the local authority to which the function or service relates, and

(b) the date on which it becomes accepted in respect of that function or service, which must be a date agreed between the Secretary of State and the function provider.

(2) A function provider may be accepted only if—

(a) it makes a written application to the Secretary of State specifying the function or service in respect of which it wishes to be accepted, and

(b) a guarantee is provided to the Secretary of State.

(3) The functions or services in respect of which a function provider may be accepted are—

(a) a function which it performs on behalf of a local authority in accordance with a direction under section 497A(4) of EA 1996;

(b) an education function of a local authority which it is nominated to exercise under section 497A(4A) of EA 1996 or section 15(6) of the Local Government Act 1999 ;

(c) a service which it provides or makes available under a best value arrangement for the purposes of, or in connection with, the exercise of an education function of a local authority.

(4) A function provider who immediately before 1st September 2010 was accepted under regulation B3A of TPR 1997 in respect of a function or service is treated as accepted pursuant to this regulation in respect of that function or service.

(5) A function provider accepted in accordance with this regulation ceases to be so accepted in respect of such functions and services, and from such date, as the Secretary of State may specify in a written notice given to the function provider by the Secretary of State.

(6) A notice under paragraph (5) may be given if—

(a) the function provider makes a written application to the Secretary of State,

(b) the function provider fails to comply with any provision of these Regulations or TSAVCR 1994,

(c) where a guarantee was previously provided to the Secretary of State, either the guarantee lapses or because of a change in circumstances the Secretary of State considers that the guarantee is insufficient,

(d) a proposal for a voluntary arrangement has been made or approved in relation to the function provider under Part 1 of IA 1986,

(e) an administration application has been made, a notice of intention to appoint an administrator has been filed with the court or an administrator has been appointed for the function provider under Schedule B1 to IA 1986,

(f) a receiver, manager or administrative receiver has been appointed for the function provider under Part 3 of IA 1986,

(g) a winding-up petition has been presented, a winding-up order has been made or a resolution for voluntary winding-up has been passed in relation to the function provider under Part 4 or 5 of IA 1986, or

(h) notice has been received that the function provider may be struck off the register of companies or an application to strike it off has been made under Part 31 of CA 2006.

(7) A function provider accepted in accordance with this regulation must give written notice to the Secretary of immediately upon the occurrence of any of the events mentioned in paragraph (6)(d) to (h).

(8) In these regulations “ function provider ” means a body corporate other than a local authority which—

(a) is specified in a direction under section 497A(4) of EA 1996,

(b) is nominated under section 497A(4A) of EA 1996 or section 15 of the Local Government Act 1999, or

(c) provides or makes available services under a best value arrangement.

(9) In this regulation—

“ best value arrangement ” means a contract or other arrangement made with a local authority for the provision of, or the making available of, services for the purposes of, or in connection with, the exercise of an education function of that local authority;

“ guarantee ” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the Secretary of State in respect of sums due from the function provider under these Regulations and TSAVCR 1994.

Section 14A Meaning of “accepted member”

(1) A person (P) is an accepted member if the conditions in paragraphs (2) to (4) are met.

(2) Immediately before the fair deal transfer date P was employed—

(a) under a contract of employment and subject to existing Fair Deal arrangements;

(b) by a contracting scheme employer to undertake pensionable employment; or

(c) by a contracting scheme employer to undertake employment that is not pensionable employment in accordance with paragraph (6) or paragraph (8) of regulation 7.

(3) Immediately before and on the fair deal transfer date P is employed to undertake the same transferred service.

(4) After the fair deal transfer date P is employed to undertake transferred services.

(5) P ceases to be an accepted member from the date that P ceases to satisfy paragraph (4) .

Section 14B Meaning of “contracting scheme employer”

A contracting scheme employer is—

(a) an employer mentioned in sub-paragraph (c) of paragraph 1 of Schedule 2 (governing body of a school maintained by a local authority);

(b) an employer mentioned in paragraph 2 of Schedule 2 (Academy); or

(c) an employer mentioned in paragraph 5 of Schedule 2 (special school not maintained by a local authority).

Section 14C Meaning of “fair deal transfer date”

“Fair deal transfer date” means the date on which transferred services are transferred between a contracting scheme employer and an accepted employer.

Section 14D Meaning of “transferred services”

“Transferred services” means services specified in the description of employment in the Participation Agreement.

Section 14E Meaning of “Participation Agreement”

“Participation Agreement” means a contractual agreement, relating to participation in the Scheme in accordance with the Fair Deal arrangements, between the Secretary of State, a contracting scheme employer and an accepted employer.

Section 14F Meaning of “accepted employer”

An accepted employer in respect of transferred services is an employer other than an employer mentioned in section 1 of the Local Government Act 1999 who—

(a) is a party to a contract for services with a contracting scheme employer under which at least one employee, on and after the fair deal transfer date, is an accepted member;

(b) is a party to a Participation Agreement; and

(c) is not the subject of a written notice of cessation as an accepted employer under regulation 14H(1) ....

Section 14G Obligations of accepted employer

(1) An accepted employer—

(a) must provide the Secretary of State with a guarantee if requested by the Secretary of State;

(b) must give written notice to the Secretary of State immediately if any of the events in sub-paragraphs (c) to (g) of regulation 14H(2) occurs.

(2) In this regulation and regulation 14H “guarantee” means a bond, guarantee or indemnity in a form and amount, and provided by a person, approved by the Secretary of State in respect of sums due, under these Regulations and TSAVCR 1994, from the accepted employer.

Section 14H Termination and resumption of accepted employer status

(1) An employer (E) ceases to be an accepted employer on the date specified in a written notice given by the Secretary of State under this paragraph.

(2) A notice under paragraph (1) may be given when—

(a) E fails to comply with any provision of these Regulations or TSAVCR 1994;

(b) the Secretary of State considers that a guarantee provided under sub-paragraph (a) of regulation 14G is insufficient because—

(i) the guarantee lapses; or

(ii) there is a change in circumstances;

(c) a proposal for a voluntary arrangement has been made or approved in relation to E under Part 1 of IA 1986;

(d) an administration application has been made, a notice of intention to appoint an administrator has been filed with the court, or an administrator has been appointed for E under Schedule B1 to IA 1986;

(e) a receiver, manager or administrative receiver has been appointed for E under Part 3 of IA 1986;

(f) a winding-up petition has been presented, a winding-up order has been made, or a resolution for voluntary winding-up has been passed in relation to E under Part 4 or 5 of IA 1986; or

(g) notice has been received that E may be struck off the register of companies or an application to strike E off has been made under Part 31 of CA 2006.

(3) The Secretary of State may by further written notice to E determine that E resumes accepted employer status with effect from a future date stated in the notice.

Section 15 Contributable salary

(1) The contributable salary of a person (T) is the total of—

(a) the amounts mentioned in paragraph (2), if T is a school teacher for the purposes of section 122 of EA 2002, or

(b) the amounts mentioned in paragraph (3) in any other case

but (in either case) does not include any amounts mentioned in paragraph (4).

(2) The amounts are—

(a) the amount paid to T by T's employer in respect of T's pensionable employment in accordance with any pay order;

(b) the amount paid by T's employer to T in respect of T's pensionable employment in satisfaction of any contractual liability arising out of sick leave or maternity, paternity , ... parental , shared parental , parental bereavement or adoption leave;

(c) the amount paid by T's employer to T in respect of T's pensionable employment in satisfaction of any statutory liability arising out of sick leave or maternity, paternity , ... shared parental , parental bereavement or adoption leave ;

(d) the amount equal to any part of T's salary which T has given up the right to receive pursuant to a salary sacrifice arrangement.

(3) The amounts are—

(a) the amount of the salary, wages, fees and other payments paid to T for T's own use by T's employer in respect of T's pensionable employment;

(b) the amounts mentioned in paragraph (2)(b) to (d);

(c) the amount of any payment made to T—

(i) where the payment is by way of bonus made as part of a pay settlement which applies to all persons, or to all persons of a particular class or description, employed at the institution at which T is employed, or

(ii) where the payment is calculated by reference to T's performance or the performance of the institution at which T is employed and is paid pursuant to arrangements under which T's employer (E) makes payments calculated by reference to the performance of E's employees or the performance of the institution.

(4) The amounts are—

(a) any benefit in kind or the money value of such a benefit other than one which falls within regulation 16 (contributable salary - residential accommodation);

(b) the amount of any payment by way of bonus other than a payment falling within paragraph (3)(c));

(c) the amount of any payment in respect of overtime;

(d) the amount of any payment by way of travelling or expense allowance;

(e) the amount of any payment in consideration for the loss of, or the agreement to give up the right to, paid leave under T's contract of employment;

(f) the amount of any payment in lieu of notice to terminate T's contract of employment;

(g) the amount of any payment by way of an honorarium;

(h) the amount of any payment in respect of any duties that are not part of T's duties in T's capacity as a teacher;

(i) if T is employed as mentioned in paragraph 12 of Schedule 2 (teacher in a European School), any amount not payable by, or money value of a benefit in kind not attributable to, the Secretary of State.

(5) This regulation is subject to regulation 17 (cap on contributable salary).

(6) In this regulation—

“ pay order ” means an order under section 122 of EA 2002 for the time being in force and includes any document referred to in such an order;

“ salary sacrifice arrangement ” means—

if T is a school teacher for the purposes of section 122 of EA 2002, an arrangement specified in any pay order under which T gives up the right to receive part of T's gross salary in return for T's employer's agreement to provide T with benefits in kind as specified in the pay order;

in any other case, an arrangement of the type mentioned in sub-paragraph (a) in which T's employer's agreement is to provide T with benefits in kind of an identical description to those specified in any pay order for the time being in force.

Section 16 Contributable salary - residential accommodation

(1) In this regulation “ residential benefits in kind ” means the money value of—

(a) any residential accommodation provided to a person (T) in connection with T's employment,

(b) any heat, lighting or water provided free in respect of the accommodation, and

(c) any council tax paid on T's behalf in respect of the accommodation.

(2) Residential benefits in kind are also part of T's contributable salary if the conditions in paragraph (4) are met.

(3) But if the money value of the residential accommodation mentioned in paragraph (1)(a) exceeds one sixth of the aggregate of the amounts mentioned in regulation 15(2) or, where applicable, regulation 15(3)(a) and (b), the excess is not part of T's contributable salary.

(4) The conditions are—

(a) that T's employer (E) makes a written application to the Secretary of State, within 3 months of the start of the employment or (if later) the first day on which the accommodation is provided, for the money value of residential benefits in kind to be part of T's contributable salary,

(b) the Secretary of State is satisfied that it is expedient for residential accommodation to be provided to T in connection with T's employment, and

(c) E certifies that E will review the value of the residential benefits in kind at the times referred to in paragraph (5) and provide written notification to the Secretary of State of the results of the reviews.

(5) The first review must be carried out within 2 years of the start of T's employment or, if later, the first day on which the accommodation is provided, and each subsequent review must be carried out within 2 years of the previous review.

(6) Where, pursuant to paragraphs (2) to (5), the money value of residential benefits in kind is part of T's contributable salary, that money value is to be treated as having formed part of T's contributable salary from the date of the start of T's employment or (if later) the first day on which the accommodation was provided.

(7) Where the employer does not carry out the necessary reviews in accordance with paragraph (5) or notify the Secretary of State of the results of each review, the Secretary of State may treat the residential benefits in kind as never having been part of T's contributable salary and, in that event, the Secretary of State is to repay to the employer the amount specified in paragraph6 (8) together with interest as specified in paragraph (9).

(8) The amount is the difference between—

(a) all contributions referred to in regulation 30(1)(a) and (b) paid by the employer during the period when the residential benefits were treated as part of T's contributable salary, and

(b) all contributions referred to in regulation 30(1)(a) and (b) which would have been payable during that period without the residential benefits being treated as part of T's contributable salary

....

(9) The interest is interest on the contributions referred to in paragraph (8) at the rate of 3% per year, compounded with yearly rests, from the first day of the financial year following that in which they were paid to the date of repayment.

(10) This regulation is subject to regulation 17 (cap on contributable salary).

Section 17 Cap on contributable salary

(1) In this regulation a “ relevant person ” is a person who—

(a) entered pensionable employment after 31st May 1989 with no right to count any period before 1st June 1989 as reckonable service and is not a person to whom paragraph (2), (3) or (3A) applies,

(b) was in pensionable employment immediately before 1st April 2008,

(c) has not made an election under regulation C1A(2) of TPR 1997 (removal of the cap on contributable salary), and

(d) is not a person to whom regulation C1(8) of TPR 1997 has ceased to apply because the person began a new employment (see regulation C1A(5) of TPR 1997) or because the person's contract of employment was varied (see regulation C1A(8) of TPR 1997).

(2) This paragraph applies to a person who was in pensionable employment before 1st June 1989 and who resumed pensionable employment following—

(a) an absence on maternity leave in respect of which she was entitled to a right to return from leave pursuant to Chapter 1 of Part 8 of the Employment Rights Act 1996 ,

(b) a period of secondment or additional period of absence necessarily attributable to that secondment, or

(c) (where neither sub-paragraph (a) nor (b) applies), a break in teaching employment not exceeding one year.

(3) This paragraph applies to a person who was in comparable United Kingdom service before 1st June 1989 and who subsequently enters pensionable employment provided that there has not been a period of more than one year between cessation of employment in comparable United Kingdom service and entering pensionable employment.

(3A) This paragraph applies to a person whose annual rate of contributable salary for the tax year or part of the tax year which included 31st March 2008, calculated in accordance with regulation C1 of TPR 1997 (salary on which contributions are payable), did not exceed the permitted maximum for that tax year of £112,800.

(4) In the case of any relevant person, in any tax year or part of a tax year in which the person's annual rate of contributable salary, calculated in accordance with regulations 15 and 16 exceeds the permitted maximum, that excess does not form part of the person's contributable salary.

(5) But if the circumstances specified in paragraphs (6) or (9) apply to that person paragraph (4) will cease to apply in accordance with paragraphs (10) and (11).

(6) Subject to paragraph (8), the circumstance is that the relevant person begins a new employment.

(7) For the purposes of paragraph (6) a person is to be treated as beginning a new employment if the person—

(a) begins pensionable employment with a different employer, or

(b) continues in pensionable employment with the same employer but in a new post under a different contract of employment.

(8) Paragraph (6) does not apply where the person begins pensionable employment with a different employer by reason of a transfer of undertakings.

(9) The circumstances are that—

(a) the contract of employment of the relevant person (P) is varied so that P will be required to undertake functions which are materially different from those which P was required to undertake before the variation was made, and

(b) the employer gives written notice to the Secretary of State of the variation of P's contract of employment.

(10) In the case of a person to whom the circumstance specified in paragraph (6) applies, paragraph (4) ceases to apply immediately before the date on which the person begins the new employment referred to in paragraph (6).

(11) In the case of a person to whom the circumstances specified in paragraph (9) apply, paragraph (4) ceases to apply immediately before the date on which the variation in the contract of employment takes effect.

(12) In this regulation the “permitted maximum” for any tax year is the permitted maximum for the previous tax year increased (if there is a relevant increase in the retail prices index for the tax year) by the appropriate percentage for the tax year.

(13) For the purposes of this regulation—

(a) there is a relevant increase in the retail prices index for a tax year if the retail prices index for the month of September before the tax year is higher than it was for the previous September;

(b) the appropriate percentage for the tax year is the same percentage as the percentage increase in the retail prices index;

(c) if the result of the application of paragraph (12) above in relation to a tax year would not be a multiple of £600, the permitted maximum for that tax year is what it would be but for this provision, rounded up to the nearest amount which is such a multiple.

Section 18 Teachers' ordinary contributions

(1) A person in pensionable employment must pay contributions at a percentage rate, determined in accordance with paragraph 2 of Schedule 3 (employees' contributions), of the person's contributable salary for the time being.

(2) This regulation does not apply to a person who has reckonable service of more than 45 years.

Section 19 Election to pay contributions by a person serving in a reserve force

(1) This paragraph applies to a person who ceases to be in pensionable employment by virtue of being called out, or recalled, for permanent service in Her Majesty's armed forces in pursuance of a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996 .

(2) A person to whom paragraph (1) applies may by giving written notice to the Secretary of State, elect that the period mentioned in paragraph (3) is to be treated as reckonable service.

(3) The period begins on the day after the cessation of pensionable employment and ends on the earlier of the day on which—

(a) the person's permanent service ends, or

(b) the person begins to accrue service which counts for the purpose of benefits under the Armed Forces Pension Scheme or any other occupational pension scheme in respect of that person's permanent service.

(4) Notice under paragraph (2) may not be given more than 6 months after the end of the period mentioned in paragraph (3).

(5) Where a person has made an election under paragraph (2) the period mentioned in paragraph (3) is treated as reckonable service provided that the person pays any contributions specified in a written notice given by the Secretary of State, within 3 months after receiving such a notice.

(6) Contributions referred to in paragraph (5) are—

(a) contributions referred to in paragraph (7), unless paragraph (11) applies,

(b) (where applicable) any contributions referred to in sub-paragraphs (a) to (g) of regulation 28(3) (deduction by employers of contributions etc. from salary, payment in default and interest).

(7) The amount of the contributions must be calculated in accordance with—

(a) regulation 18 (teachers' ordinary contributions), and

(b) where an election has been made under regulation C2 of TPR 1997, regulation C3(4) of those Regulations (which continues to have effect for certain purposes by virtue of paragraph 6 of Schedule 13)

and as if the reference to “ contributable salary ” in regulation 18 and the reference to “actual contributable salary” in regulation C3(4) of TPR 1997 were references to the notional salary of the person who makes an election under this regulation.

(8) Subject to paragraph (9), the notional salary of a person who makes an election under this regulation is the amount which would have been the person’s contributable salary if pensionable employment had not ceased and the person had continued to be employed in the same post and on the same terms increased on 1st April following the beginning of the period specified in paragraph (3) and on each subsequent 1st April during that period by (RI-RE)/ RE , where—

(a) RI is the retail prices index for the March immediately preceding the April in which the increase occurs, and

(b) RE is the retail prices index for the month in which the period began.

(9) From 2nd April 2011, the notional salary of a person who makes an election under this regulation is the amount specified in paragraph (10) increased by the amount (if any) by which it would have been increased if it had been an official pension within the meaning of section 5(1) of PIA 1971 beginning, and first qualifying for increases under that Act, on the later of—

(a) 2nd April 2011, and

(b) the day after the day on which the pensionable employment ceased.

(10) The amount is—

(a) in relation to an election made under this regulation on or before 1st April 2011, the notional salary calculated under paragraph (8) including the increase made on 1st April 2011, or

(b) in relation to an election made under this regulation after 1st April 2011, the person’s contributable salary immediately before the pensionable employment ceased.

(11) This paragraph applies where during the period referred to in paragraph (3) the person's service pay, when aggregated with any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 , is less than the remuneration which the person would have received if the person had continued during the period in the pensionable employment in which the person was employed immediately before being called, or recalled, into service in a reserve force.

(12) Where a person to whom paragraph (1) applies dies during permanent service before making an election under paragraph (2), the person is treated as having made such an election and any contributions due under this regulation are to be deducted from any benefits payable under these Regulations.

Section 20 Contributions for additional pensions

Schedule 4 (contributions for additional pensions) has effect for the purpose of enabling contributions to be paid for an additional pension.

Section 21 Family benefit contributions

Schedule 5 (family benefit contributions) has effect for the purpose of enabling family benefit contributions to be paid.

Section 22 Entitlement to repayment of balance of contributions

(1) This regulation applies where a person (T) has ceased to be in pensionable employment and—

(a) T is not qualified for retirement benefits,

(b) no transfer value has since been paid or become payable in respect of T,

(c) T has not since taken any right to a cash equivalent,

(d) T did not re-enter pensionable employment within one month after ceasing to be in pensionable employment, and

(e) T has not elected to pay contributions under regulation C9 of TPR 1997 or regulation 19 (election to pay contributions by a person serving in a reserve force) for any period which includes the period beginning when T ceased to be in pensionable employment and ending one month later.

(2) But this regulation—

(a) does not apply if T ceased to be in pensionable employment before 6th April 1980, and the salary on which contributions were payable by T under TSR 1976 or under previous provisions in any year had exceeded £5,000, and

(b) is subject to regulation 124 (general prohibition on unauthorised payments).

(3) For the purposes of paragraph (1) if a person (T) ceases to be in pensionable employment because T is absent on maternity, paternity , ... parental , shared parental , parental bereavement or adoption leave in respect of which T is entitled to return from leave pursuant to any provision of, or of regulations made under, Part 8 of the Employment Rights Act 1996 that period of absence is treated as pensionable employment.

(4) Where this regulation applies T is entitled to be repaid the balance of T's contributions, calculated in accordance with regulation 23, but this paragraph is subject to regulation 24 (application for repayment of contributions).

(5) The entitlement to repayment takes effect one month after the person ceased to be in pensionable employment.

Section 23 Calculation of contributions to be repaid

(1) The balance of contributions referred to in regulation 22(4) is (A-B)-C, where—

A is the total of the amounts specified in paragraph (2),

B is the total of the deductions specified in paragraph (4), and

C is the amount of tax chargeable on (A-B) under section 205 of FA 2004.

(2) The amounts are those of—

(a) all contributions paid, up to the date of receipt of the application for repayment, under regulations 18 (teachers' ordinary contributions) and 19 (election to pay contributions by a person serving in a reserve force), and Schedules 4 (contributions for additional pensions) and 5 (family benefit contributions) and under the provisions of TPR 1997 specified in paragraph (3) (which continue to have effect by virtue of paragraphs 8 and 10 of Schedule 13) except—

(i) any treated for the purposes of regulation 126 (receipts etc. to be credited) as employers' contributions, and

(ii) any paid in respect of a period of pensionable employment for which a short-service incapacity grant or a short-service serious ill health grant has been paid;

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

(c) if the person (T) 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 T would otherwise have been entitled to receive under the rules of the pension scheme to which he was subject in the employment, or

(ii) if that scheme made no provision for the repayment of contributions, the contributions T paid under it in respect of the employment;

(d) interest to the date of payment at 3% per year, 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, on the sum mentioned in that sub-paragraph, from the first day of the financial year following that in which the transfer value was paid to the Secretary of State.

(3) The provisions of TPR 1997 are—

(a) regulation C3(3) where an election has been made under regulation C2(1) of those Regulations,

(b) Part 1 or 2 of Schedule 4, where an election has been made under regulation C4(2) of those Regulations, and

(c) regulation C9, where an election has been made under paragraph (2) of that regulation.

(4) The deductions are—

(a) the amount of any previous repayment of contributions,

(b) if the Secretary of State has made a payment in lieu of contributions, or the person is entitled to equivalent pension benefits, half of 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 Secretary of State has paid a contributions equivalent premium, the amount recoverable by the Secretary of State under sections 61 to 63 of PSA 1993.

Section 24 Application for repayment of contributions

(1) An amount to which a person is entitled under regulation 22 is to be paid to the person only if the Secretary of State receives a written application for payment and paragraph (2), if applicable, is complied with.

(2) The applicant (A) must provide any relevant information specified by the Secretary of State which is in A's possession, or which A can reasonably be expected to obtain, if the Secretary of State notifies A in writing that such information is required.

Section 25 Return of repaid contributions

(1) This paragraph applies to a person—

(a) to whom the Secretary of State repaid contributions before June 1973, and

(b) who is in pensionable employment or comparable British service.

(2) But paragraph (1) does not apply to a person—

(a) to whom a teacher's pension is payable, or

(b) who is in comparable British service and in respect of whom the Secretary of State has paid a cash equivalent or a transfer value since the end of the person's last period of pensionable employment.

(3) A person to whom paragraph (1) applies may, by giving written notice to the Secretary of State, elect to return the contributions to the Secretary of State with interest.

(4) Where a person makes an election under paragraph (3) the person must pay the amount to the Secretary of State within 10 weeks of receiving written notice of the amount.

(5) Interest is payable at the rate of 3.5% per year compounded with yearly rests from the date on which the contributions were repaid to the date on which the payment of the return of contributions is made.

Section 26 Repayment of contributions where salary is restricted under regulation 39

(1) This regulation applies where the relevant salary of a person (P) during the last 365 days of P's average salary service is restricted by regulation 39.

(2) Where this regulation applies the Secretary of State is to repay—

(a) to P a sum equivalent to A-B, and

(b) to P's last employer before retirement benefits became payable to P, a sum equivalent to C-D.

(3) In paragraph (2)—

A is the aggregate of the contributions paid by P under regulation 18 or Schedule 5 or under Schedules 4 or 5 of TPR 1997 during all relevant periods;

B is the aggregate of the contributions which would have been paid under regulation 18 or Schedule 5 or under Schedules 4 or 5 of TPR 1997 during all relevant periods if P had actually received the salary which P is treated as receiving during each relevant period by virtue of regulation 39(2)(a), (b) or (c);

C is the aggregate of the contributions paid by P's employer under regulation 27 during all relevant periods;

D is the aggregate of the contributions which would have been paid by P's employer under regulation 27 if P had actually received the salary which P is treated as receiving during each relevant period by virtue of regulation 39(2)(a), (b) or (c).

(4) In this regulation a “ relevant period ” is any of—

(a) the last 365 days of P's average salary service,

(b) Year 1 (as defined in regulation 39(9)), or

(c) Year 2 (as defined in regulation 39(9)

in which P is treated as receiving a relevant salary in accordance with regulation 39(2)(a), (b) or (c) but Year 1 or Year 2 are only relevant periods if the operation of regulation 39(2)(b) or (c) affects the relevant salary which P is treated as receiving during the last 365 days of P's average salary service.

Section 27 Employers' contributions

(1) The employer of a person in pensionable employment is to pay contributions at a percentage rate of the person's contributable salary for the time being, determined in accordance with paragraph 4 of Schedule 3 (employers' contributions).

(2) No contributions are to be paid in respect of any person who has reckonable service of more than 45 years.

(3) The deemed exclusion by paragraph (2) of regulation 8 of periods covered by that paragraph from pensionable employment does not apply to this regulation or to Chapter 4 of this Part.

Section 28 Deduction by employers of contributions, etc. from salary, payment in default and interest

(1) The employer of a person in pensionable employment must deduct from that person's salary each month the contributions and instalments mentioned in paragraph (3).

(2) If any contributions or instalments referred to in paragraph (1) are not deducted in the appropriate month in accordance with that paragraph the employer may deduct such contributions or instalments from the person's salary in any subsequent month (but this paragraph does not affect regulation 30(1)(a) (payment by employers to Secretary of State).

(3) The contributions and instalments are—

(a) the contributions payable under regulation 18 (teachers' ordinary contributions);

(b) any contributions payable under arrangements made under regulation 12(13)(c) (election for part-time employment before 1st May 1995 to be pensionable);

(c) any contributions payable under the terms of—

(i) an order of the Court determining a part-time claim, or

(ii) a compromise of a part-time claim in accordance with the “Public Sector Settlement Model” published by the Employment Tribunals Service in May 2003;

(d) any contributions payable under regulation C3(4) of TPR 1997 (which continues to have effect by virtue of paragraph 6 of Schedule 13 (savings and transitional provisions)) as a result of an election made under regulation C2(1) of those Regulations;

(e) any contributions payable under Schedule 4 (contributions for additional pensions);

(f) any contributions payable in accordance with Schedule 4 to TPR 1997 (which continues to have effect by virtue of paragraph 8 of Schedule 13) as a result of an election made under regulation C4(2) of those Regulations;

(g) any contributions payable in accordance with Schedule 5 to TPR 1997 (which continues to have effect by virtue of paragraph 10 of Schedule 13);

(h) any contributions payable under Schedule 5 (family benefit contributions);

(i) any instalments payable under regulation C16(5) to (7) of TPR 1997 (return by persons of repaid contributions by instalments) (which continues to have effect by virtue of paragraph 14 of Schedule 13).

(4) Where a person (T) has made an election under Schedule 4 (contributions for additional pension) and is in more than one part-time employment at the same time, the contributions referred to in paragraph (3)(e)—

(a) must be deducted by the employer nominated by T, and

(b) if in any month such contributions are more than the contributable salary paid by that employer for that month, the balance of such contributions must be deducted by the other employer (or, if there is more than one other employer, by whichever other employer is nominated by T).

(5) Where a person (T) has ceased to be employed by an employer (E) and, at the time when T ceased to be employed by E—

(a) any deduction required by paragraphs (1) to (3) to be made by E has not been made, and

(b) despite regulation 30(1)(a) (payment by employers to Secretary of State) a corresponding amount has not been paid to the Secretary of State pursuant to that regulation,

any amount remaining due, together with interest at the standard rate, from the due date to the date of payment, is to be paid by T to the Secretary of State on receipt of a written demand, but the Secretary of State may in any case waive the payment of the whole or any part of such interest.

(6) But paragraph (5) is subject to Part 4 of Schedule 13 where the date of the demand referred to in that paragraph falls before 1st December 2010.

(7) In paragraph (5) the “ due date ” is the 8th day after the end of the month in which the deduction required by paragraph (1) should have been made.

(8) In this regulation—

“ court ” includes a tribunal competent to determine a part-time claim;

“ part-time claim ” means a claim, made by the issue of court proceedings or otherwise, to a person who employed a person in employment falling within regulation 12(5) (election for part-time employment before 1st May 1995 to be pensionable) that there was a breach of the equality clause (as defined in section 1 of the Equal Pay Act 1970 ) during such employment by virtue of the fact that the employment was not pensionable employment.

Section 29 Recovery of unpaid contributions from benefits

(1) Where regulation 8 (employment not pensionable: contributions not paid) does not apply and without prejudice to any other means of recovery, the Secretary of State may recover any sum payable by a person to the Secretary of State under this Part by deducting it from the benefits payable to, or in respect of, that person under these Regulations.

(2) Nothing in this regulation affects section 91 of PA 1995 (inalienability of occupational pensions).

Section 30 Payment by employers to Secretary of State

(1) The employer of a person in pensionable employment is to pay to the Secretary of State, after the end of each month—

(a) the contributions payable under regulation 27,

(b) the amounts due from that person that are required to be deducted from that person's salary under regulation 28 (whether or not such amounts were deducted), and

(c) the contributions payable in pursuance of an election under regulation G6 of TPR 1997 (which continues to have effect by virtue of paragraph 6 of Schedule 13) , and

(d) an administration charge of such percentage as is notified from time to time by the Secretary of State.

in respect of that person's contributable salary for that month.

(2) The former employer of a person in pensionable employment who has made an election under regulation G6(3) of TPR 1997 (which continues to have effect by virtue of paragraph 6 of Schedule 13) (referred to in regulations C2(1) and (6) and G6 of those Regulations as “employer A”) is to pay to the Secretary of State after the end of each month the contributions in pursuance of the election.

(3) For the purposes of paragraph (1)—

(a) all salaries are to be treated as being payable monthly in arrears, and

(b) any arrears payable by reason of a retrospective increase in contributable salary are to be treated as having become payable in the month in which they were paid.

(4) Any payment required by paragraph (1) or (2) must be received by the Secretary of State within 7 days after the end of the month in question and if the full amount of any such payment is not so received—

(a) interest is payable by the employer or the former employer on the amount outstanding at the standard rate from the 8th day after the end of the month in question to the date of payment, but the Secretary of State may in any particular case waive the payment of the whole or any part of such interest, and

(b) if the Secretary of State makes a written demand, the employer or former employer must pay to the Secretary of State such further sum, not exceeding £100, as the Secretary of State may specify in the demand.

(5) But paragraph (4)(a) is subject to Part 4 of Schedule 13 where the date by which payment must be received is before 1st December 2010.

(6) The payment referred to in paragraph (4)(b) must be made within 14 days after the date of the demand.

Section 31 Application of Part

(1) This Part does not affect a person's entitlement to a cash equivalent conferred by or under Chapter 4 of Part 4 of PSA 1993.

(2) A transfer value in respect of any pension credit rights or pension credit benefits is not to be paid or accepted under this Part.

(3) A transfer value in respect of a person (P) is not to be accepted under this Part if the previous scheme was a money purchase arrangement as defined in section 152 of FA 2004—

(a) to which P's employer was not a contributor, and

(b) which provided benefits additional to those provided by a scheme to which P was a contributor.

(4) Under this Part a transfer value may not be paid in respect of P's phased retirement benefits in payment, only in respect of P's other benefits.

(5) A transfer value may be paid or accepted under this Part, in respect of P, to the extent that paragraphs (6) or (7) apply to the transfer value.

(6) A transfer value referable to P's NPA 65 reckonable service may be paid or accepted if—

(a) P is a person with mixed service, and

(b) P's NPA 60 reckonable service has come into payment.

(7) A transfer value referable to P's further employment may be paid if—

(a) retirement benefits, a short-service serious ill-health grant or a short-service annuity have not come into payment in respect of that further employment, and

(b) retirement benefits, a short-service serious ill-health grant or a short-service annuity have come into payment in respect of the previous employment.

Section 31A Interpretation of Part

In this Part—

“ club transfer value ” in relation to reckonable service in this scheme or another club scheme, means an amount calculated—

in accordance with the club transfer arrangements, and

by reference to tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation.

“ CUKS transfer value ” in relation to reckonable service in this scheme or a comparable United Kingdom scheme, means an amount calculated in accordance with the arrangements for comparable United Kingdom scheme transfers.

“ transfer value ” in relation to reckonable service which is not related to a club transfer value or a CUKS transfer value, under—

this scheme, means a value determined by the Secretary of State having taken advice from the Government Actuary, or

another scheme, means a value determined by the scheme actuary and accepted by the Secretary of State.

Section 32A Reduction in transfer value: lifetime allowance charge

(1) This regulation applies where—

(a) the lifetime allowance charge under section 214 of FA 2004 arises on the payment of a cash equivalent or a transfer value in respect of a person to a qualifying recognised overseas pension scheme, and

(b) the person and the Secretary of State are jointly and severally liable to the charge.

(2) The Secretary of State must pay the charge.

(3) The cash equivalent or transfer value which, apart from this regulation, would be payable must be reduced to reflect the amount of the charge in such manner as the Secretary of State determines, after taking advice from the scheme actuary.

(4) In this regulation “ qualifying recognised overseas pension scheme ” has the same meaning as in Part 4 of FA 2004.

Section 33 Application of this Chapter

This Chapter applies in relation to the payment and acceptance of club transfer values.

Section 33A Application of this Section

(1) This Section applies to—

(a) a person who ceases to be in pensionable employment and enters a club scheme;

(b) a person who—

(i) ceases to be in pensionable employment,

(ii) enters a public service scheme established for teachers and maintained in the Channel Islands or the Isle of Man on or before 31st March 2015, and

(iii) makes an application for a transfer value payment on or before 31st March 2017.

(2) Part 1 of Schedule 6 determines the amount of a club transfer value payment.

Section 33B Payment under this Section

(1) A club transfer value may only be paid under this Section in respect of a person (P) if P satisfies the conditions in either paragraph (2) or (3).

(2) The conditions are that P—

(a) has left all pensionable employment under this scheme,

(b) makes a written application to the Secretary of State within 12 months from the date on which P becomes subject to another club scheme,

(c) meets the requirements for a club transfer from the receiving scheme, and

(d) has not reached the age of 75.

(3) The conditions are that P—

(a) has entered pensionable employment in a public service scheme for teachers established and maintained in the Channel Islands or the Isle of Man on or before 31st March 2015, after leaving this scheme, and makes a written application for a transfer value payment to the Secretary of State either—

(i) on or before the day on which P reaches the normal pension age, or

(ii) after the day on which P reaches the normal pension age, having entered pensionable employment—

(aa) on or before the day on which P reaches the normal pension age, and

(bb) immediately after the end of P's employment in this scheme service, and

(b) makes the application on or before 31st March 2017.

Section 33C Restrictions on the payment of a club transfer value

Save as provided in regulation 31(5), a club transfer value is not to be paid under this Section if, before a person's application for a club transfer value payment is received, the person—

(a) becomes subject to another club scheme and is in receipt of retirement benefits,

(b) is in receipt of a short-service serious ill-health grant, or

(c) is in receipt of a short-service annuity.

Section 33D Application of this Section

(1) This Section applies to—

(a) a person who ceases to be in another club scheme and enters pensionable employment in this scheme, and

(b) a person who—

(i) ceases to be in a public service scheme for teachers established and maintained in the Channel Islands or the Isle of Man on or before 31st March 2015,

(ii) enters pensionable employment in this scheme on or before 31st March 2015, and

(iii) makes an application for a transfer value payment on or before 31st March 2017.

(2) A person in respect of whom a club transfer value is accepted is entitled to count reckonable service in accordance with paragraph 11A of Part 2 of Schedule 6.