Solon does not know this law's official route yet. The proposal is recorded all the same, and the route appears here once its source is added.
53 provisions
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).
.
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.
.
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.
.
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”.
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”.
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”.
51 Insertion of new paragraph 55 in Schedule 3 (Commutation: small pensions)
In Schedule 3, after paragraph 54, insert—
Commutation: small pensions
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 Insertion of new Schedule 4 (Scheme valuation and employer cost cap)
After Schedule 3, insert—
SCHEDULE4
Scheme valuation and employer cost cap
Regulation 225
Scheme valuation report
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”.
Employer cost cap
2. The employer cost cap for this scheme is 10.9% of the pensionable earnings of members of this scheme.
Breach of employer cost cap margins
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.
Teachers’ Pension Scheme Advisory Board report
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.
Action by the responsible authority
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.
Timescale for action
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.