|
THE GOVERNMENT'S PROPOSALS -
QUESTIONS AND ANSWERS
This guide to the Government's
proposals sets out answers to the most common questions raised by members at
the NUT's regional offices, Wales Office and Headquarters.
Q. What changes are being proposed
in respect of the payment of early retirement benefits?
A. At the present time, if a teacher
is granted early retirement either on the grounds of redundancy or in the
interests of the efficient discharge of an employer's functions, the accrued
pension benefits are paid by the TSS. The employer pays any compensation
pension benefits resulting from additional years granted by way of enhancement.
The cost of the early payment of the benefits is, in effect, shared by all
employers with the employers' contribution to the Scheme being determined by
the Government Actuary when the Scheme is valued every 5 years.
It is proposed that from 1 April 1997
the actuarial cost of the early payment of the accrued pension benefits will be
met by individual employers. This will mean that the TSS will pay part of the
pension benefits and the individual employer will also pay part, the
‘mandatory compensation'.
Q.For how long will the employer
have to pay the 'mandatory compensation'?
A.The employer will be required to pay
the 'mandatory compensation' for the lifetime of the pensioner and for the
period of any short-term compensation payable on the death of the teacher. The
scheme will pay any widow's, widowers, children's or dependent's pension.
Q. Is the cost of the 'mandatory
compensation' the same for all teachers?
A.No. There is a sliding scale and it
would be more costly for an employer to grant early retirement to a teacher
aged 50 than to a teacher aged 59.
Q. Can the teacher exercise the
right to waive that part of the pension benefits for which the
employer would be responsible (the 'mandatory compensation')?
A.No. If an employer grants early
retirement that employer must pay the 'mandatory compensation'. There is no
provision for the payment of an actuarially reduced pension, with no payment
from the employer, to teachers who volunteer for early retirement.
Q. Where a teacher between age 50
and 60 is made redundant will the employer be required to pay premature
retirement benefits?
A.No. The only statutory requirement
would be in respect of the redundancy payment. Employers will only have to pay
part of the pension where they agree to grant premature retirement. Under the
DfEE proposals, employers would have the following options:
(i) to pay a redundancy payment without premature
retirement; or
(ii) to pay a redundancy payment with premature
retirement; or
(iii) to pay an enhanced severance payment of up to 66
weeks' pay without premature retirement.
Q.What is the latest date at which
a teacher could retire with premature retirement benefits without the employer
being required to pay mandatory compensation?
A.31 March 1997.
Q. If a teacher takes early
retirement before 1 April 1997, will it be possible for that teacher to return
to teaching at a later date?
A.It would be possible to take up full
or part-time teaching but not to rejoin the TSS and thereby to improve the
pension benefits. After 1 April 1997, the proposals will prevent any teacher
who has retired on age grounds or through early retirement, on the grounds of
redundancy or in the interests of the efficient discharge of an employer's
functions, from returning to pensionable service. A teacher who is in
pensionable full-time re-employment on 31 March 1997 will be able to continue
in such pensionable employment until that contract of employment ceases.
Q. if a teacher has already taken
ill-health retirement, will it be possible for that teacher to return to
teaching after 1 April 1997?
A.Yes. Any teacher whose ill-health
retirement benefits became payable before 1 April 1997 will be
able to return to teaching on a limited part-time basis but, in general, any
regular part-time service should be avoided. It is only those teachers who are
granted illhealth retirement after 1 April 1997 who will not be
allowed to return to teaching at all under the proposals, unless they give up
the ill-health pension.
Q. Where a teacher has already
applied for ill-health retirement, but the application is not accepted until
after I April 1997, will the teacher be deemed 'permanently' unfit to teach?
A.No. If the case has been considered
before 1 April 1997 the current criteria will apply, even if the benefits are
awarded after 1 April 1997. However, the teacher will not be allowed to return
to teaching at a later date unless the teacher gives up the ill-health pension.
Any further application by that teacher for ill-health retirement will be
subject to the new criteria.
Q.If a teacher who has been awarded
ill-health retirement benefits recovers sufficiently to give up those benefits
and return to teaching, will it be possible for that teacher to return to
pensionable service?
A.Yes. The proposals only prevent
teachers who have retired on age grounds or through early retirement, on the
grounds of redundancy or in the interests of the efficient discharge of an
employer's functions, from returning to pensionable service in the future.
Q.Who will be responsible for
paying the mandatory compensation if an educational establishment goes
bankrupt?
A.If the establishment was not part of
a larger group - so there is no organisation to take on the liability - the
Secretary of State would pay the mandatory compensation through Teachers'
Pensions. |
