Statutory Instruments
Public Service Pensions, England And Wales
Education, England And Wales
Made
29th September 2014
Laid before Parliament
3rd October 2014
Coming into force
1st April 2015
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 1(1)(1), (2)(d)(2), (3) and (4), 2(3), 3(1), (2), (3)(a) and (c) and (4), 4(1) and (3)(4), 5(1)(5), 7(1), 8(1)(a) and (2)(a)(6), 11(1)(a) and (2), 12(1), (2), (3), (6) and (7)(7), 18(1), (2), (4)(b) and (5) to (9)(8) and paragraph (c) of the definition of "employer" in section 37, and paragraph 4 of Schedule 1, paragraph 4(a) of Schedule 2, Schedule 3, paragraph 18 of Schedule 5 and paragraphs 1(2)(ii), 2(2)(ii) and 5 of Schedule 7 to the Public Service Pensions Act 2013(9).
In accordance with section 21 of that Act, the Secretary of State has consulted the representatives of such persons as appear to the Secretary of State likely to be affected by these Regulations.
In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.
1. These Regulations may be cited as the Teachers' Pension Scheme (Amendment) Regulations 2014 and come into force on 1st April 2015.
2. The Teachers' Pension Scheme Regulations 2014(10) are amended as follows.
3. In regulation 2, in the heading and in paragraph (3), for "2014" substitute "2015".
4. 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(11);";
(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;"".
5. After regulation 7 insert-
"(3) The responsible authority may delegate any functions of the scheme manager under these Regulations, including this power to delegate.".
6. In paragraph (b) of regulation 9(1), between "in" and "the" insert "which".
7. 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.".
8. In paragraph (4) of regulation 31, for "earlier" substitute "earliest".
9. 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."
10. In paragraph (3) of regulation 117, for "paragraph (b)" substitute "sub-paragraph (ii)".
11. In regulation 147 omit-
(a)"or" in paragraph (2)(b)(ii); and
(b)paragraph (2)(c).
12. In paragraph (2)(a) and (b) of regulation 150 substitute for the definition of "EC"-
"EC is the number of D's eligible children;".
13. 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".
14. 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.".
15. In paragraph (3) of regulation 182 for "238A" substitute "237B".
16. 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(12)."
Column 1 Annual salary rate for the eligible employment | Column 2 Members' contributions rate |
---|---|
£0 - £25,999 | 7.4% |
£26,000 - £34,999 | 8.6% |
£35,000 - £41,499 | 9.6% |
£41,500 - £54,999 | 10.2% |
£55,000 - £74,999 | 11.3% |
≥ £75,000 | 11.7% |
17. 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.".
18. 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."
19. In paragraph (1)(c) of regulation 200 for "75" substitute "normal pension age".
20. In regulation 201 omit-
(a)"(P)" in paragraph (1); and
(b)the entirety of paragraph (2).
21. In paragraph (1) of regulation 203 for "may" substitute "must".
22. In paragraph (1)(a) of regulation 205 for "75" substitute "normal pension age".
23. In regulation 209 omit-
(a)"(P)" in paragraph (1); and
(b)the entirety of paragraph (2).
24. In paragraph (1) of regulation 211 for "may" substitute "must".
25. 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)".
26. In paragraph (2) of regulation 220, after "P", insert "or, if P is deceased, P's personal representatives".
27. In paragraph (7) of regulation 223 for "are to be construed" substitute "is to be construed".
28. After regulation 224 (transitional provisions) insert-
225. Schedule 4 (scheme valuation and employer cost cap) has effect.".
29. 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.".
30. In paragraph 3(2) of Schedule 2, after "PIA 1971", insert "rounded to the nearest £100,"
31. 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)".
32. 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".
33. In paragraph 11 of Schedule 3, in sub-paragraph (2)(b), omit "time".
34. In paragraphs 14(c), 15(d) and 16(3)(b) of Schedule 3, for each occurrence of "1st September 2025" substitute "30th September 2025".
35. In paragraph 21 of Schedule 3, in sub-paragraph (b), after "transition date", omit "and" and sub-paragraph (c).
36. 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.".
37. 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".
38. 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".
39. In paragraph 39, where it appears, for "TPR 2010" substitute "the existing scheme regulations".
40. After paragraph 39, insert-
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".
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).".
41. In paragraph 40 of Schedule 3, for "TPR 2010", where it occurs, substitute "the existing scheme regulations".
42. In paragraph 41 of Schedule 3-
(a)omit sub-paragraph (2); and
(b)at the end of sub-paragraph (3)(b) insert "regulations".
43. After paragraph 41 of Schedule 3 insert-
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.
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.
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.".
44. In paragraph 43 of Schedule 3-
(a)omit sub-paragraph (2); and
(b)at the end of sub-paragraph (3) insert "regulations".
45. After paragraph 43 of Schedule 3 insert-
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.
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.
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.".
46. 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".
47. 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".
48. In paragraph 50 of Schedule 3, for "TPR 2010" substitute "the existing scheme regulations".
49. 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".
50. In paragraph 54 of Schedule 3, for "TPR 2010" where it occurs substitute "the existing scheme regulations".
51. In Schedule 3, after paragraph 54, insert-
55. An application by a transition member under regulation 162 (application for payment of benefits) for a commutation under regulation 174 (commutation: small pensions) also has effect as an application for any commutation due to P under regulation 119 (commutation: small pensions) of the existing scheme regulations.".
52. After Schedule 3, insert-
Regulation 225
1. The scheme manager must commission the scheme actuary to carry out a valuation of this scheme ("scheme valuation") and any connected scheme, and to prepare a scheme valuation report, in accordance with, and by reference to the effective dates defined and set out in HM Treasury directions under section 11 of the Public Service Pensions Act 2013, referred to in this Schedule as "Treasury directions".
2. The employer cost cap for this scheme is 10.9% of the pensionable earnings of members of this scheme.
3. If the scheme actuary reports in a valuation report that the cost cap cost of the scheme, calculated following a valuation in accordance with Treasury directions, has gone beyond the margins specified in HM Treasury directions under section 12 of the Public Service Pensions Act 2013, paragraph 4 applies.
4. Where this paragraph applies, the responsible authority must request the Teachers' Pension Scheme Advisory Board constituted under Part 2 of these Regulations to report, within six months of the request-
(a)whether there is agreement between the employer representatives and the member representatives on a recommended procedure for aligning the cost cap cost of the scheme with the employer cost cap; and
(b)if there is such agreement, the procedure which the board is in agreement to recommend.
5. On receipt of the Teachers' Pension Scheme Advisory Board's report, the responsible authority, in consultation with the scheme actuary and with such persons as the responsible authority considers appropriate, must-
(a)review any recommendations put forward in that report; and
(b)either-
(i)if agreement has been reached, and the responsible authority accepts the proposed procedure, implement the procedure agreed between the members of the Teachers' Pension Scheme Advisory Board; or
(ii)if the responsible authority does not agree with any agreement reached, or if agreement has not been reached, make such change to the standard accrual rate as in the opinion of the scheme actuary is necessary to bring the cost cap cost of the scheme into line with the employer cost cap.
6. Any changes to the scheme made as a result of paragraph 5 are to take effect within four years of the effective date as at which the cost cap cost of the scheme was evaluated in the scheme actuary's valuation report."
David Laws
Minister of State
Department for Education
29th September 2014
We consent
Gavin Barwell
Mark Lancaster
Two of the Lords Commissioners of Her Majesty's Treasury
26th September 2014
(This note is not part of the Regulations)
These Regulations, which come into force on 1st April 2015, amend the Teachers' Pensions Regulations 2014 to-
1. provide for the delegation of the scheme manager's functions (regulation 5);
2. make further provision for the calculation of an individual's annual rate of pensionable earnings for multiple employments at least one of which is irregular (regulation 9);
3. provide for new members' contributions rates, with bands based on actual annual salary rather than the full-time equivalent for part-time eligible employment (regulation 16);
4. provide for new employers' contribution rates and an administration charge (regulations 17 and 18);
5. make further transitional provision for the calculation of certain benefits (regulations 40 to 47) and commutation of small pensions (regulation 51);
6. introduce a new Schedule 4 including provisions for scheme valuations and the employer cost cap, including the procedure to be followed in the event of a breach of the parameters for the cost cap cost of the scheme (regulation 52), and
7. correct a number of minor errors in those Regulations.
An impact assessment has not been produced for this instrument as it has no impact on businesses or civil society organisations. The instrument has a minimal impact on the public sector.
See section 1(4) of the Act for the meaning of "scheme regulations".
See paragraph 4 of Schedule 1 to the Act for the meaning of "teachers".
See section 2(2) of the Act for the meaning of "responsible authority".
See section 4(2) of the Act for the meaning of "scheme manager". See section 4(6) of the Act for the meaning of a connected statutory pension scheme.
See section 5(8) of the Act for the meaning of "pension board".
See section 8(4) of the Act for the meaning of "career average revalued earnings scheme".
Sections 11 and 12 come into force on 1st April 2015 for all relevant purposes, or, as the case may be, all remaining relevant purposes (S.I. 2014/1912).
See section 18(2) of, and paragraph 18 of Schedule 5 to, the Act for the meaning of the existing scheme.