The Teachers’ Pension Scheme (Amendment) Regulations 2014

• Citation: S.I. 2014/2652
• Sections: 52

Section 1 Citation and commencement

These Regulations may be cited as the Teachers’ Pension Scheme (Amendment) Regulations 2014 and come into force on 1st April 2015.

Section 2 Amendment of the Teachers’ Pension Scheme Regulations 2014

The Teachers’ Pension Scheme Regulations 2014 are amended as follows.

Section 3 Amendment to regulation 2 (Establishment of Teachers’ Pension Scheme 2014)

In regulation 2, in the heading and in paragraph (3), for “2014” substitute “2015”.

Section 4 Amendment to regulation 3 (Interpretation)

In regulation 3—

(a) omit the definition of “appropriate factor”;

(b) omit the definition of “existing club transfer arrangements”;

(c) after the definition of “the existing scheme” insert—

“the existing scheme regulations” means the Teachers’ Pension Regulations 2010 ;

(d) after the definition of “financial year” insert—

“full protection member” has the meaning given in Part 2 of Schedule 3;

(e) in the definition of “sending scheme”, for “which pays” substitute “to which an application is made for payment of”; and

(f) after the definition of “survivor’s pension” insert—

“tapered protection member” has the meaning given in Part 3 of Schedule 3;”

Section 5 Amendment to regulation 7 (Scheme manager)

After regulation 7 insert—

(3) The responsible authority may delegate any functions of the scheme manager under these Regulations, including this power to delegate.

Section 6 Amendment to regulation 9 (Membership of pension board)

In paragraph (b) of regulation 9(1), between “in” and “the” insert “which”.

Section 7 Amendment to regulation 19 (Eligibility for active membership)

In paragraph (2) of regulation 19, for “P is employed in an accepted school in which P has a financial interest” substitute—

(a) P is employed in an accepted school in which P has a financial interest;

(b) P is a full protection member of the existing scheme;

(c) P is a tapered protection member of the existing scheme; or

(d) P satisfies the conditions in regulation 7(10) of the existing scheme regulations.

Section 8 Amendment to regulation 31 (Opting out of this scheme before automatic enrolment date)

In paragraph (4) of regulation 31, for “earlier” substitute “earliest”.

Section 9 Amendment to regulation 41 (Multiple employments including at least one irregular employment)

In regulation 41, for paragraph (2) substitute—

(2) P’s full-time equivalent annual rate of pensionable earnings is the higher of—

(a) Figure 1; and

(b) either--

(i) Figure 2, if P is in more than one regular employment; or

(ii) Figure 3, if P is only in one regular employment;

where—

Figure 1 is obtained by dividing the sum of the annual rates of each of P’s employments by the total number of P’s employments;

Figure 2 is the annual rate of pensionable earnings for P’s regular employments as set out in paragraph (2) of regulation 40, disregarding P’s irregular employment or employments; and

Figure 3 is the full-time equivalent rate of pensionable earnings for P’s sole regular employment.

Section 10 Amendment to regulation 117 (Annual rate of total incapacity pension)

In paragraph (3) of regulation 117, for “paragraph (b)” substitute “sub-paragraph (ii)”.

Section 11 Amendment to regulation 147 (Annual rate of additional (surviving adult) pension: short-term)

In regulation 147 omit—

(a) “or” in paragraph (2)(b)(ii); and

(b) paragraph (2)(c).

Section 12 Amendment to regulation 150 (Annual rate of child pension: short term)

In paragraph (2)(a) and (b) of regulation 150 substitute for the definition of “ EC ”—

EC is the number of D’s eligible children;

Section 13 Amendment to regulation 154 (Entitlement day for pension credit retirement pension)

In regulation 154—

(a) in paragraph (1) between “a” and “pension” insert “person’s (P’s)”; and

(b) in sub-paragraph (1)(a) for “a person (P)” substitute “P”.

Section 14 Amendment to regulation 174 (Commutation: small pensions)

In regulation 174 for paragraph (5)(b) substitute—

(b) the lump sum is a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to FA 2004.

Section 15 Amendment to regulation 182 (Reduction of benefits: annual allowance and lifetime allowance charge)

In paragraph (3) of regulation 182 for “238A” substitute “237B”.

Section 16 Substitution of regulation 185 (Members’ contributions)

For regulation 185, substitute—

(185)

(1) For each eligible employment in respect of which an active member (P) is in pensionable service during a pay period, P must pay members’ contributions on P’s pensionable earnings in that pay period at the rate determined under this regulation (“members’ contributions rate”).

(2) The members’ contributions rate for an eligible employment is the rate in Column 2 of the table corresponding to the band which includes the annual salary rate for that employment in Column 1.

(3) The annual salary rate bands in Column 1 are increased for each financial year, if there is a relevant increase in the consumer prices index for that financial year, by the appropriate percentage for the financial year, rounded up to the nearest £1.

(4) There is a relevant increase in the consumer prices index for a financial year if the consumer prices index for the month of September before that financial year is higher than that for the previous September.

(5) The appropriate percentage for the financial year is the same percentage as the percentage increase in the consumer prices index.

(6) In this regulation, “consumer prices index” means the all items consumer prices index published by the Statistics Board, a body corporate established by section 1 of the Statistics and Registration Service Act 2007 .

Table

Column 1

Annual salary rate for the eligible employment

Column 2

Members’ contributions rate

Section 17 Substitution of regulation 192 (Employers’ contributions)

For regulation 192 substitute—

(192) In respect of each pay period, the employer of a person (P) in pensionable service in that pay period is to pay contributions on P’s pensionable earnings in the pay period at the following percentage rate of those earnings—

(a) 14.1% from 1st April 2015 until 31st August 2015 inclusive;

(b) 16.4% from 1st September 2015;

(c) at the rate determined in each successive valuation report with effect from a date to be notified to employers by the scheme manager.

Section 18 Amendment to regulation 196 (Payment by employers to scheme manager)

In paragraph (2) of regulation 196, after sub-paragraph (b), insert—

and

(c) an administration charge of such percentage of P’s pensionable earnings for the pay period as is notified to employers from time to time by the scheme manager.

Section 19 Amendment to regulation 200 (Application of this Section)

In paragraph (1)(c) of regulation 200 for “75” substitute “normal pension age”.

Section 20 Amendment to regulation 201 (Application for a statement of entitlement)

In regulation 201 omit—

(a) “(P)” in paragraph (1); and

(b) the entirety of paragraph (2).

Section 21 Amendment to regulation 203 (Payment of a transfer value)

In paragraph (1) of regulation 203 for “may” substitute “must”.

Section 22 Amendment to regulation 205 (Acceptance of a transfer value)

In paragraph (1)(a) of regulation 205 for “75” substitute “normal pension age”.

Section 23 Amendment to regulation 209 (Application for a club transfer statement of entitlement)

In regulation 209 omit—

(a) “(P)” in paragraph (1); and

(b) the entirety of paragraph (2).

Section 24 Amendment to regulation 211 (Payment of a club transfer value)

In paragraph (1) of regulation 211 for “may” substitute “must”.

Section 25 Amendment to regulation 219 (Employment records)

In paragraph (2)(b) of regulation 219 after “pensionable earnings” insert “including any money value of residential benefits in kind forming part of P’s pensionable earnings under regulation 38 (Money value of residential benefits in kind to form part of pensionable earnings)”.

Section 26 Amendment to regulation 220 (Information and documents)

In paragraph (2) of regulation 220, after “P”, insert “or, if P is deceased, P’s personal representatives”.

Section 27 Amendment to regulation 223 (Guaranteed minimum pension)

In paragraph (7) of regulation 223 for “are to be construed” substitute “is to be construed”.

Section 28 Insertion of regulation 225 (Scheme valuation and employer cost cap)

After regulation 224 (transitional provisions) insert—

Scheme valuation and employer cost cap

(225) Schedule 4 (scheme valuation and employer cost cap) has effect.

Section 29 Amendment to Schedule 1 (Eligible employment)

In Schedule 1—

(a) in paragraph 1, after “Academy”, insert ““, Academy school”, “16 to 19 Academy” and “alternative provision Academy””;

(b) in paragraph 5, for “sub-paragraph (1)” in sub-paragraph (5) substitute “sub-paragraph (4)”;

(c) in paragraph 10(a), after “Academy”, insert “school, alternative provision Academy,”;

(d) in paragraph 25(a), before “the Public Service” insert “the scheme constituted in” and after “Pensions Regulations 2014” insert “or one of its connected schemes”; and

(e) after paragraph 34, insert—

(35) Teacher employed in the Lycée Français Charles de Gaulle de Londres.

Section 30 Amendment to Schedule 2(Meaning of “overall amount of extra pension”)

In paragraph 3(2) of Schedule 2, after “ PIA 1971”, insert “rounded to the nearest £100,”

Section 31 Amendment to Schedule 2 (Scheme flexibilities)

After paragraph 29(1) of Schedule 2 insert—

insofar as this relates to P’s—

(a) standard earned pension; and

(b) faster accrual earned pension (if any)

Section 32 Amendment to paragraph 1 (Interpretation) of Schedule 3 (Transitional provisions)

In paragraph 1 of Schedule 3—

(a) omit the definition of “existing scheme rules”; and

(b) in the definition of “transition date”, in both sub-paragraphs (a) and (b), for “an existing scheme” substitute “the existing scheme”.

Section 33 Amendment to paragraph 11 of Schedule 3 (Exception for Fair Deal full protection member during protection period)

In paragraph 11 of Schedule 3, in sub-paragraph (2)(b), omit “time”.

Section 34 Amendment to paragraphs 14, 15 and 16 of Schedule 3

In paragraphs 14(c), 15(d) and 16(3)(b) of Schedule 3, for each occurrence of “1st September 2025” substitute “30th September 2025”.

Section 35 Amendment to paragraph 21 of Schedule 3 (Active members of the existing scheme)

In paragraph 21 of Schedule 3, in sub-paragraph (b), after “transition date”, omit “and” and sub-paragraph (c).

Section 36 Amendment to paragraph 22 of Schedule 3 (Fair Deal members)

In paragraph 22 of Schedule 3—

(a) in sub-paragraph (1), where it first appears, omit “sub-”; and

(b) in sub-paragraph (3)(b) for the words after “P would reach normal pension age under” substitute “the existing scheme on or after 1st October 2025.”.

Section 37 Amendment to paragraph 31 of Schedule 3 (Application of existing scheme rules)

In paragraph 31 of Schedule 3—

(a) for all instances of “existing scheme rules”, including the heading, substitute “existing scheme regulations”; and

(b) in sub-paragraph (3), for “TPR 2010” substitute “the existing scheme regulations”.

Section 38 Amendment to paragraph 32 of Schedule 3 (Determination of final salary)

In paragraph 32 of Schedule 3—

(a) in sub-paragraph (1) after “TPR 2010” insert “and Schedule 7 to the Act”; and

(b) for “TPR 2010”, where it occurs, substitute “the existing scheme regulations”.

Section 39 Amendment to paragraph 39 of Schedule 3 (Entitlement to payment of total incapacity pension)

In paragraph 39, where it appears, for “TPR 2010” substitute “the existing scheme regulations”.

Section 40 Insertion of new paragraphs 39A and 39B of Schedule 3

After paragraph 39, insert—

Calculation of retirement benefits after ill-health pension ceases to be payable: modification

(39A)

(1) This paragraph applies to a transition member (P), if—

(a) P is entitled to receive benefits payable under this scheme; and

(b) P was in receipt of a previous ill-health pension following an application which was received by the Secretary of State before 6th January 2007.

(2) Regulation 71 of the existing scheme regulations applies with the modification in regulation 71(2)(a)(i) of those regulations that after “pensionable employment of a person (P)” is inserted “including pensionable service under the Teachers’ Pension Scheme Regulations 2014”.

Reduction of ill-health pension and total incapacity pension

(39B)

(1) This paragraph applies to a transition member (P), if—

(a) P is entitled to receive benefits payable under this scheme, including total incapacity pension; and

(b) P was in receipt of a previous ill-health pension following an application which was received by the Secretary of State before 6th January 2007.

(2) The scheme manager may determine, after taking advice from the scheme actuary, that either or both of the following benefits are reduced—

(a) P’s total incapacity benefits in this scheme;

(b) part of P’s ill health benefits under regulation 71 of the existing scheme regulations (including by reference to paragraph 39A).

Section 41 Amendment to paragraph 40 of Schedule 3 (Entitlement to payment of a short-service serious ill-health grant)

In paragraph 40 of Schedule 3, for “TPR 2010”, where it occurs, substitute “the existing scheme regulations”.

Section 42 Amendment to paragraph 41 of Schedule 3 (Application for payment of a surviving adult pension)

In paragraph 41 of Schedule 3—

(a) omit sub-paragraph (2); and

(b) at the end of sub-paragraph (3)(b) insert “regulations”.

Section 43 Insertion of new paragraphs 41A to 41C of Schedule 3

After paragraph 41 of Schedule 3 insert—

Calculation of a short-term surviving adult pension of a surviving adult of a transition member

(41A)

(1) This paragraph applies to a short-term surviving adult pension payment to a surviving adult of a transition member.

(2) The short-term rate of surviving adult pension—

(a) is payable under this scheme; but

(b) is not payable under regulation 95 of the existing scheme regulations.

Long-term rate of a surviving adult pension of a surviving adult of a transition member

(41B) The long-term rate of a surviving adult pension of a surviving adult (S) of a transition member is the sum of—

(a) the surviving adult pension under this scheme;

(b) the adult pension under the existing scheme;

(c) any enhancement to which S is entitled under regulation 145 of these Regulations; and

(d) any enhancement to which S is entitled under Part 3 of Schedule 9 to the existing scheme regulations.

Reduction of surviving adult pension

(41C)

(1) This paragraph applies if the surviving adult (S) of a transition member applies—

(a) for payment of a surviving adult pension under this scheme; and

(b) for payment of an adult pension under the existing scheme.

(2) The scheme manager may determine after taking advice from the scheme actuary that either or both of the following enhancements of surviving adult pension benefits are reduced—

(a) S’s enhancement of a surviving adult pension under regulation 145 of these Regulations;

(b) S’s enhancement of a surviving adult pension under Part 3 of Schedule 9 to the existing scheme regulations.

Section 44 Amendment to paragraph 43 of Schedule 3 (Application for payment of a child pension)

In paragraph 43 of Schedule 3—

(a) omit sub-paragraph (2); and

(b) at the end of sub-paragraph (3) insert “regulations”.

Section 45 Insertion of new paragraphs 43A to 43C of Schedule 3

After paragraph 43 of Schedule 3 insert—

Calculation of a short-term child pension of an eligible child of a transition member

(43A)

(1) This paragraph applies to a short-term child pension payment to a child of a transition member.

(2) The short-term rate of child pension—

(a) is payable under this scheme; but

(b) is not payable under regulation 98 of the existing scheme regulations.

Rate of a long-term child pension of an eligible child of a transition member

(43B) The long-term rate of a child pension of an eligible child (C) of a transition member is the sum of—

(a) the child pension under this scheme;

(b) the child pension under the existing scheme;

(c) any enhancement to which C is entitled under regulation 152 of these Regulations, and

(d) any enhancement to which C is entitled under Part 3 of Schedule 9 of the existing scheme regulations.

Reduction of child pension

(43C)

(1) This paragraph applies if the eligible child (C) of a transition member applies—

(a) for payment of a child pension under this scheme; and

(b) for payment of a child pension under the existing scheme.

(2) The scheme manager may determine after taking advice from the scheme actuary that either or both of the following enhancement of child pension benefits are reduced—

(a) C’s enhancement of a child pension under regulation 152 of these Regulations;

(b) C’s enhancement of a child pension under Part 3 of Schedule 9 to the existing scheme benefits.

Section 46 Amendment to paragraph 44 of Schedule 3 (Application for payment of a death in service grant)

In paragraph 44 of Schedule 3—

(a) at the end of sub-paragraph (1) insert “regulations”; and

(b) at the end of sub-paragraph (2) insert “, other than any lump sum already recovered”.

Section 47 Amendment to paragraph 45 of Schedule 3 (Application for payment of a death out of service grant)

In paragraph 45 of Schedule 3—

(a) at the end of sub-paragraph (1) insert “regulations”; and

(b) at the end of sub-paragraph (2) insert “, other than any lump sum already recovered”.

Section 48 Amendment to paragraph 50 of Schedule 3 (Repayment of balance of contributions)

In paragraph 50 of Schedule 3, for “TPR 2010” substitute “the existing scheme regulations”.

Section 49 Amendment to paragraph 51 of Schedule 3 (Residential emoluments)

In paragraph 51 of Schedule 3—

(a) omit “Transfer payments in respect of the existing scheme” and re-insert “Transfer payments in respect of the existing scheme” as the heading to paragraph 52;

(b) for “TPR 2010” substitute “the existing scheme regulations”.

Section 50 Amendment to paragraph 54 of Schedule 3 (Election to pay contributions by a person serving in a reserve force)

In paragraph 54 of Schedule 3, for “TPR 2010” where it occurs substitute “the existing scheme regulations”.