The Teachers’ Pensions Schemes (Miscellaneous Amendments) Regulations 2017

• Citation: S.I. 2017/1084
• Sections: 19

Section 1 Citation and commencement

These Regulations may be cited as the Teachers’ Pensions Schemes (Miscellaneous Amendments) Regulations 2017 and come into force on 30th November 2017.

Section 2 Amendments to the Teachers’ Pensions Regulations 2010

The Teachers’ Pensions Regulations 2010 are amended in accordance with regulations 3 to 7.

Section 3 Amendment to regulation 57 (election to receive phased retirement benefits)

In paragraphs (2)(b) and (4)(c) of regulation 57 for “6 months” substitute “12 months”.

Section 4 Amendment to regulation 59 (cessation of phased retirement pension)

In paragraph (1)(a) and (b) of regulation 59 for “6 months” substitute “12 months”.

Section 5 Amendment to regulation 83 (death grant: death in service)

In regulation 83 after paragraph (3) insert —

(3A) Paragraph (3) does not apply if —

(a) D made an application before D’s death under regulation 107 (payment of benefits on application to Secretary of State) for retirement benefits on the basis that Case C, and no other Case (apart from Case A), applied to D’s reckonable service;

(b) at the same time that D made the application mentioned in sub-paragraph (a), D made an application for commutation of the ill-health pension (and any total incapacity pension payable under regulation 65 (total incapacity benefits)) under regulation 118 (commutation: serious ill health); and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

Section 6 Amendment to regulation 85 (death grant: death out of service)

In regulation 85 after paragraph (3) insert—

(3A) Paragraph (3) does not apply if—

(a) D made an application before D’s death under regulation 107 (payment of benefits on application to Secretary of State) for retirement benefits on the basis that Case C, and no other Case (apart from Case A), applied to D’s reckonable service;

(b) at the same time that D made the application mentioned in sub-paragraph (a), D made an application for commutation of the ill-health pension (and any total incapacity pension payable under regulation 65 (total incapacity benefits)) under regulation 118 (commutation: serious ill health); and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

Section 7 Amendment to Schedule 7 (retirement benefits)

In Schedule 7 —

(a) for paragraph 3 substitute—

(3)

(1) Except as provided in paragraph 4, a person (P) falls within this paragraph if—

(a) P satisfies either Conditions 1, 2 and 3 or Condition 4, and

(b) P makes an application under regulation 107 for retirement benefits on the basis that Case C, and no other Case (apart from Case A), applies to P’s reckonable service.

(2) Condition 1 is that P left all pensionable employment because P was incapacitated (or this was one of the reasons why P left all pensionable employment).

(3) Condition 2 is that P makes the application under regulation 107—

(a) before leaving excluded employment, or

(b) within 2 years of the last day of pensionable employment.

(4) Condition 3 is that immediately before making the application under regulation 107 P is incapacitated and is likely to be incapacitated permanently.

(5) Condition 4 is that P’s ability to carry out any work is impaired by more than 90% and is likely to be impaired by more than 90% permanently.

(6) Where P satisfies Conditions 1, 2 and 3, the illness or injury P relies upon in the application under regulation 107 must be—

(a) the same illness or injury which was the reason or, as the case may be, one of the reasons for P leaving pensionable employment, or

(b) connected to or consequent upon that injury or illness.

(b) after paragraph 4(2) insert—

(2A) But Condition A does not apply if—

(a) D made an application to the Secretary of State before D’s death for retirement benefits on the basis that Case C, and no other case (apart from Case A), applied to D’s reckonable service;

(b) at the same time that D made the application mentioned in paragraph (a), D made an application for commutation of the ill-health pension (and any total incapacity pension payable under regulation 65) under regulation 118 (commutation: serious ill health); and

(c) following consideration of the applications mentioned in paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

(c) after paragraph 12(3), insert—

(3A) P does not fall within paragraph 10 if—

(a) P makes the application mentioned in paragraph 10(1)(e);

(b) P’s application is made in accordance with paragraph 12(1) or (3)(b); and

(c) P returns to pensionable or excluded employment before the entitlement day specified in P’s application.

Section 8 Amendments to the Teachers’ Pension Scheme Regulations 2014

The Teachers’ Pension Scheme Regulations 2014 are amended in accordance with regulations 9 to 19.

Section 9 Substitution of regulation 74 (meaning of “actuarial adjustment”)

For regulation 74 substitute—

(74)

(1) In these Regulations, “actuarial adjustment” means the actuarial adjustment that is applied when calculating the annual rate of pension payable to—

(a) a member who, on the entitlement day for a pension other than an age retirement pension or an ill-health pension, has not reached normal pension age; or

(b) an active member or a deferred member who becomes a pensioner member after reaching normal pension age.

(2) In the case of an actuarial adjustment applied under paragraph (1)(b)—

(a) the actuarial adjustment only relates to a period of pensionable service of the active member or the deferred member after reaching normal pension age; and

(b) the actuarial adjustment must only be applied to the accrued earned pension of the active member or the deferred member that accrued before reaching normal pension age.

Section 10 Amendment to regulation 89 (interpretation of Chapter)

In regulation 89(1), for the definition of “average annual rate” substitute the following definition—

“average annual rate” means the average rate of pensionable earnings in a 12 month period

Section 11 Amendment to regulation 90 (the reduced annual rate condition)

In regulation 90(c), for “6 months” substitute “12 months”.

Section 12 Amendment to regulation 91 (the new employment condition)

In regulation 91(c), for “6 months” substitute “12 months”.

Section 13 Amendment to regulation 97 (cessation of phased retirement pension)

In regulation 97(b)(i) and (ii), for “6 months” substitute “12 months”.

Section 14 Amendment to regulation 104 (entitlement to early retirement pension)

In regulation 104, after paragraph (1) insert—

(1A) P is not entitled to payment of an early retirement pension from the entitlement day if—

(a) P has applied under regulation 162 for payment of an early retirement pension;

(b) P’s application is made in accordance with regulation 103(2) or (4)(b); and

(c) P returns to eligible employment before the entitlement day specified in P’s application.

Section 15 Amendment to regulation 110 (entitlement to ill-health pension)

In regulation 110—

(a) in paragraph (3)(a) for “eligible employment” substitute “pensionable service”, and

(b) after paragraph (3) insert—

(3A) Where paragraph (3) applies, the illness or injury which P relies upon in P’s ill-health application to meet the incapacity condition must be—

(a) the same illness or injury which was the reason, or as the case may be, one of the reasons for P leaving pensionable employment; or

(b) connected to or consequent upon that injury or illness.

Section 16 Insertion of new regulation 112A (when ill-health pension is taken to become payable before death of member: commutation of whole pension (serious ill-health))

After regulation 112 insert—

When ill-health pension is taken to become payable before death of member: commutation of whole pension (serious ill-health)

(112A) An ill-health pension is taken to become payable before the death of a member (D) if—

(a) before D’s death D made an ill-health application;

(b) at the same time as D made the ill-health application, D made an application under regulation 171 (commutation of whole pension (serious ill-health)) for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

Section 17 Amendment to regulation 139 (death in service grant)

After regulation 139(2) insert—

(2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a) before D’s death D made an ill-health application;

(b) at the same time as D made the ill-health application, D made an application under regulation 171 (commutation of whole pension (serious ill-health)) for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

Section 18 Amendment to regulation 140 (death out of service grant)

After regulation 140(2) insert—

(2A) For the purposes of paragraph (2), an ill-health pension and, if applicable, a total incapacity pension are taken to become payable if—

(a) before D’s death D made an ill-health application;

(b) at the same time as D made the ill-health application, D made an application under regulation 171 for commutation of the ill-health pension and, if applicable, a total incapacity pension; and

(c) following consideration of the applications mentioned in sub-paragraphs (a) and (b), the Secretary of State determines that the ill-health pension and, if applicable, any total incapacity pension payable with it, should be commuted.

Section 19 Amendment of Schedule 1 (eligible employment)

In paragraph 8(1) of Schedule 1 (ceasing to be an accepted employer) for “scheme employer” substitute “scheme manager”.