Teachers’
Superannuation (Administration) (Jersey) Order 2007
PART 1
INTRODUCTORY PROVISIONS
1 Interpretation
In this Order, unless
the context otherwise requires –
“accepted school” means a school that is an accepted
school under Article 1A;
“approved drawdown contract”
means a contract approved under Article 131D of the Income Tax (Jersey) Law 1961
(the “Income Tax Law”);
“approved Jersey scheme” has
the meaning given in Article 130 of the Income Tax
Law;
“Chairman” means the Chairman of the Management Board
appointed in accordance with Article 4;
“employer” means –
(a) the
States Employment Board within the meaning of the Employment of States of
Jersey Employees (Jersey) Law 2005, in respect of the States or
any administration of the States; and
(b) any
other employer of persons who are teachers, including a governing body or other
body of managers that employs teachers on behalf of an accepted school;
“employer representative” means a person appointed as an
employer representative under Article 3(1);
“investment manager” means a person appointed to be an
investment manager in accordance with Article 7;
“Law” means the Teachers’
Superannuation (Jersey) Law 1979;
“Management Board” means the Teachers’
Superannuation Management Board established by Article 2;
“member representative” means a person appointed as a
member representative under Article 3(1);
“organiser of teachers” means a person in employment
which involves the performance of duties in connection with the provision of
education or services ancillary to education;
“supervisor of teachers” means a person employed in a
capacity connected with education which to a substantial extent involves the
supervision or the control of teachers;
“teacher” means a teacher, a supervisor of teachers or
an organiser of teachers, who is employed by or on behalf of the States or an
accepted school;
“Teachers’ Superannuation Schemes” means any
pension scheme established under the Law, including the pension scheme
established by the Teachers’
Superannuation (Existing Members) (Jersey) Order 1986 and the pension scheme
established by the Teachers’
Superannuation (New Members) (Jersey) Order 2007,
and “relevant Teachers” Superannuation Scheme’ shall be
construed accordingly;
“Treasurer” means the Treasurer of the States.[1]
1A Accepted
schools[2]
(1) For the purposes of this
Order and any Teachers’ Superannuation Scheme, a school is an accepted
school if –
(a) it was an accepted school under the Teachers’
Superannuation (General Provisions) (Jersey) Order 1986 as in force
immediately before the day on which this Order came into force; or
(b) it is
declared by the Minister under paragraph (3) to be an accepted school,
and the school has not ceased to be an accepted school under paragraph (7).
(2) The employer in
relation to a school may apply to the Minister for the school to be declared an
accepted school.
(3) The Minister may, after
receiving an application under paragraph (2) from the employer in relation
to a school, declare the school to be an accepted school.
(4) Unless otherwise agreed
between the Minister and the employer in relation to a school, if a school in
relation to which an application is made under paragraph (2) is declared
to be an accepted school under paragraph (3), it shall be taken to be an accepted
school from 1st January, 1st May or 1st September after the application was
made, whichever occurs first.
(5) The Minister may notify
the employer in relation to a school that the school shall cease to be an
accepted school from the day specified in the notice.
(6) The Minister may only
notify the employer in relation to a school under paragraph (5) if –
(a) the
Minister has received an application by the employer requesting that the school
shall cease to be an accepted school;
(b) the
Minister believes that the school has ceased to be efficient;
(c) the
employer has defaulted in the payment of contributions;
(d) the
employer body has, within one month, failed to comply with any requirement of
the Minister under paragraph (8); or
(e) the
employer has failed to comply with any other enactment relating to the
employment of teachers.
(7) If the Minister
notifies the employer in relation to a school that the school shall cease to be
an accepted school from the day specified in the notice, the school shall cease
to be an accepted school from that day.
(8) The Minister may
require the employer in relation to a school –
(a) to make a report or return to the
Minister;
(b) to give to the Minister information; or
(c) to produce to the Minister a
document,
in relation to the employment of eligible employees of the school.
PART 2
administration
Management Board
2 Management
Board
(1) There shall be
established a Teachers’ Superannuation Management Board.
(2) The Management Board
shall be comprised of 12 members appointed under Article 3 and the
Chairman appointed under Article 4.
(3) The Management Board
shall have and exercise all the powers, duties and functions that are vested in
it by the Law, this Order and any other order made under the Law.
3 Appointment
of members of Management Board
(1) The Chief Minister
shall appoint to be members of the Management Board –
(a) 6
employer representatives of whom –
(i) 2 shall be
persons recommended by the Minister for Treasury and Resources,
(ii) 2
shall be persons recommended by the Minister for Education and Lifelong
Learning, and
(iii) 2
shall be any persons that the Chief Minister thinks fit; and
(b) 6
member representatives, who shall have been selected in the manner that the
Chief Minister shall agree with associations that appear to the Minister for
Education and Lifelong Learning to represent the interests of teachers.[3]
(2) A member of the
Management Board shall hold office for 3 years and shall be eligible for
re-appointment.
(3) A member of the
Management Board may at any time resign by notice in writing to the Chairman.
(4) The Chief Minister may
at any time remove from office any member of the Management Board appointed by
him or her under this Article.
(5) The Chief Minister may
appoint a new member of the Management Board, in the manner specified in paragraph (1),
to hold office for the remainder of the term of any member of the Management
Board who has resigned, been removed from office or died.
4 Appointment
of Chairman of Management Board
(1) The Chairman of the
Management Board shall be appointed by the Chief Minister on the recommendation
of the Minister for Treasury and Resources.
(2) A person may not be appointed
under paragraph (1) to be the Chairman of the Management Board if he or
she is, under Article 3, a member of the Management Board.
(3) A recommendation under paragraph (1)
may only be made if it is supported by at least 3 of the member representatives
and at least 3 of the employer representatives.
(4) The Chairman shall hold
office for the period agreed to by a majority of the member representatives and
a majority of the employer representatives.
(5) The Chairman may be
removed from office in accordance with a method agreed to by a majority of the
member representatives and a majority of the employer representatives.
(6) The fee (if any) to be
paid to the Chairman from the assets of the Fund shall be decided by a simple
majority of the member and employer representatives.
5 Meetings
of Management Board
(1) The Management Board
may meet for the despatch of business, adjourn, and otherwise regulate its
meetings, as it thinks fit.[4]
(2) Despite paragraph (1) –
(a) if
the Chairman is not present at any meeting, the members of the Management Board
present shall elect a Chairman from their number for that meeting;
(b) a
quorum shall be formed by not less than 3 employer representatives and not less
than 3 member representatives;
(c) except
where otherwise provided in this Order, all business brought before a meeting
shall be decided by a majority of the members of the Management Board who are
present at the meeting;
(d) a
Chairman appointed under Article 4 shall not have a vote other than a
casting vote; and
(e) a
Chairman appointed under sub-paragraph (a) may exercise a casting vote, or
exercise the right to vote that he or she has as a member of the Management
Board, but shall not exercise both votes in relation to the same matter.[5]
(3) Each member of the
Management Board shall be indemnified by the States against all personal liabilities
incurred by the member (other than those incurred by the member’s own
wilful default) in the management and administration of any of the any of the
Teachers’ Superannuation Schemes.[6]
6 Delegation[7]
If the Management Board, in accordance with Article 2(2A) of
the Law, delegates to any person all or any of its powers, duties or functions,
it may do so on the terms as to remuneration or otherwise that the Management
Board approves.
Investment managers
7 Appointment
of investment managers[8]
(1) The Management Board,
at a meeting of the Board, shall appoint one or more investment managers on the
terms as to remuneration or otherwise that the Management Board and the
Minister for Treasury and Resources shall agree.
(2) The Management Board
shall not appoint a person to be an investment manager unless the Management
Board reasonably believes the person to be suitably qualified, by ability in
and practical experience of financial matters, to make investment decisions on
the Management Board’s behalf.
(3) The Management Board
shall not, at a meeting, appoint or revoke an appointment of an investment
manager except with the approval of at least 3 of the employer representatives,
and at least 3 of the member representatives, present at the meeting.
(4) The Management Board
shall not appoint an investment manager unless –
(a) it
has considered the value of those assets of the Fund to be managed by the
investment manager who is to be appointed; and
(b) it is
satisfied that the value of the assets of the Fund to be managed by the
investment manager is not excessive, having regard to –
(i) advice received
from a person or persons reasonably believed by the Management Board to be
qualified to give the advice because of the person or persons’ ability
in, and practical experience of, financial matters,
(ii) the
desirability of securing diversification of the assets of the Fund, and
(iii) the
value of all the assets of the Fund.
(5) The Management Board
shall not appoint an investment manager unless the terms of the appointment
require the investment manager –
(a) to
comply with any instructions that the Management Board may give; and
(b) to
have regard to –
(i) the need for
diversification of investment of the assets of the Fund, and
(ii) the
suitability of investments of any description which the investment manager
proposes to make and of any investment proposed as an investment of that
description.
(6) An investment manager
may be given power in his or her terms of appointment to delegate to any other
person as he or she thinks fit the powers, authorities or discretions that are
given to the investment manager by the appointment.
8 Duties
of investment managers[9]
(1) Each investment manager
shall provide to the Management Board regular reports on the assets under the
investment manager’s control.
(2) A report received by
the Management Board under paragraph (1) shall be available for inspection
by the Minister for Treasury and Resources.
(3) The Minister for
Treasury and Resources may send representatives to any meeting of the
Management Board at which a report from any investment manager is to be
received under paragraph (1).
(4) The Management Board
shall agree with each investment manager an investment strategy that has been
approved by the Minister for Treasury and Resources.
(5) An investment manager
shall exercise the powers of investment in relation to the assets of the Fund
that the Board authorizes the manager to perform.
(6) Some or all of the
assets of the Fund may be held, to the extent that the Management Board may
from time to time decide, by an investment manager while they are assets being
managed by the investment manager.
9 Duties
of Management Board in relation to investment managers[10]
(1) The Management Board
shall –
(a) at
least once every 3 months after it has appointed an investment manager,
review the investments made by the investment manager; and
(b) from
time to time consider the desirability of continuing or revoking the
appointment of an investment manager.
(2) In exercising its
functions under paragraph (1), the Management Board shall have regard to –
(a) the
need for diversification of investments of the assets of the Fund;
(b) the
suitability of investments of any description of investment which the
investment manager has made and of any investment made as an investment of that
description; and
(c) advice
received from a person or persons reasonably believed by the Management Board
to be qualified to give the advice because of the person or persons’
ability in, and practical experience of, financial matters.
Custodians and advisers
10 Custodians[11]
(1) The Management Board
may, with the consent of the Minister for Treasury and Resources, appoint a
custodian.
(2) A custodian shall be
appointed under paragraph (1) on the terms as to remuneration or otherwise
that the Management Board and the Minister for Treasury and Resources agree
with the custodian.
(3) Some or all of the
assets of the Fund may be held, to the extent that the Management Board may
from time to time decide, by a custodian appointed under paragraph (1).
11 Advisers[12]
(1) The Management Board
may appoint persons to advise the Board in relation to the proper management of
the Fund and any of the Teachers’ Superannuation Schemes.
(2) A person shall be
appointed under paragraph (1) on the terms as to remuneration or otherwise
that the Management Board agrees with the person.
12 Management
Board entitled to rely on professional advice[13]
The Management Board –
(a) may rely upon the
advice or opinion of any lawyer, broker, accountant, actuary, medical
practitioner, investment manager or other professional person; and
(b) shall not be
responsible for any loss occasioned by reliance of an advice or opinion
referred to in paragraph (a).
Actuary
13 Appointment
of Actuary[14]
(1) For the purposes of Article 3(11)
of the Law, a person shall not be appointed as the Actuary unless the person is –
(a) a
Fellow of the Institute of Actuaries or of the Faculty of Actuaries in Scotland;
(b) a
firm all of whose partners are Fellows of the Institute of Actuaries or of the Faculty
of Actuaries in Scotland; or
(c) the Government
Actuary of the United Kingdom.
(2) The Actuary shall be
appointed on the terms as to remuneration or otherwise determined by the
Management Board.
PART 3
management of assets of FUND
14 Administration
of Fund[15]
The Management Board shall administer the Fund in accordance with
this Order, the Teachers’
Superannuation (Existing Members) (Jersey) Order 1986 and the Teachers’
Superannuation (New Members) (Jersey) Order 2007.
15 Assets
of the Fund[16]
(1) Except as provided in
this Article and Article 8(6) and 10(3), the assets of the Fund shall be
held by the Treasurer of the States on behalf of the Management Board.
(2) The assets of the Fund
may be invested or applied in whole or in part –
(a) in
the purchase of, or at interest on, the security of the funds, securities,
bonds, debentures, stocks, shares or property (including any interest in land)
or other investments of any kind, that the Management Board thinks fit,
wherever the investments are situated and whether or not they –
(i) involve
liability,
(ii) are
income producing, or
(iii) are held
in possession or reversion,
and the funds, securities, bonds, debentures, stocks, shares and
other investments may be underwritten or sub-underwritten and their
subscription guaranteed;
(b) in or
towards effecting and maintaining with any insurance company or insurance
office of good repute any annuity contracts or annuity policies or life
assurance policies;
(c) by
placing annuity contracts or annuity policies or life assurance policies
referred to in sub-paragraph (b) on deposit at interest with any company
or mutual or other society or body of good repute and standing, incorporated or
carrying on business within the United Kingdom or the Channel Islands, which
carries on the business of banking or insurance or bill discounting;
(d) by
entering into any contract for the purpose of stock lending or dealing in
financial futures and traded options;
(e) without
prejudice to the generality of paragraphs (a) to (d), in or towards
subscribing for –
(i) units in a unit
trust, mutual fund or policy linked unit trust scheme, and
(ii) units
or other interest offered by an insurance company of good repute in a managed
fund,
and the Management Board is expressly authorized to commingle the
assets of the Fund or any part of the assets of the Fund with other funds upon
the terms as to sharing, division, valuation, apportionment and administration
and otherwise that may be contained from time to time in the trust deed, declaration
of trust policy or contract governing investment in the commingled assets,
so that the Management Board shall have the same full and
unrestricted powers of investing and transposing and varying investments,
contracts, policies or deposits in all respects as if the Management Board were
absolutely and beneficially entitled to the investments, contracts, policies or
deposits.
Actuarial reviews
16 Actuarial
reviews[17]
(1) The Management Board
may request the Actuary to review the operation of the Fund and the
Teachers’ Superannuation Schemes and to provide to the Board a report in
relation to the review within a period agreed between the Board and the
Actuary.
(2) If the Actuary receives
a request under paragraph (1), the Actuary shall review the operation of
the Fund and the Teachers’ Superannuation Schemes and provide to the
Board a report in relation to the review within a period agreed between the
Management Board and the Actuary.
(3) The Management Board
shall pass to the Minister and the Minister for Treasury and Resources a copy
of a report provided to the Board under paragraph (2).
(4) The Minister shall lay
before the States a copy of every report provided to him or her under paragraph (3)
as soon as practicable after it is provided to him or her.
17 Actuarial
reviews – taking into account of pensionable allowances[18]
If a payment or allowance
has been declared by the employer to be a pensionable allowance under Article 38
of the Teachers’ Superannuation (New Members) (Jersey)
Order 2007 –
(a) any
adjustment to the employers’ contribution rate arising from the
declaration; and
(b) any
additional contributions being paid as a result of the declaration,
shall be taken into account
in the Actuary’s review under Article 3(12) of the Law or Article 16
of this Order, whether or not the Teachers’ Superannuation (New Members) (Jersey) Order 2007 has been amended to specify the adjusted rate or additional
contributions.
18 If
actuarial investigation discloses surplus in Fund[19]
(1) This
Article applies if a report provided to the Management Board under Article 3(13)
of the Law or Article 16 of this Order discloses any surplus in the Fund.
(2) If
there has previously been a reduction in an increase in pensions and deferred
pensions payable under any of the Teachers’ Superannuation Schemes, the
Management Board shall, in accordance with Article 23(2)(c) and to the
extent specified in Article 23, restore the increase to the amount that it
was before it was reduced.[20]
(3) If
there has previously been a cancellation of an increase in the pensions and
deferred pensions payable under any of the Teachers’ Superannuation
Schemes, the Management Board shall, in accordance with Article 23(2)(c)
and to the extent specified in Article 23, restore the increase to the
amount that it was before it was cancelled.[21]
(4) If –
(a) paragraph (2)
or (3) does not apply; or
(b) a
surplus continues to exist after the operation of either of those paragraphs,
the Minister shall, within
3 months after the Minister has laid before the States the report referred
to in paragraph (1) which discloses the surplus –
(i) consult
with the Management Board; and
(ii) submit
to the States proposals, to which the Management Board have agreed, for
disposing of the surplus.
(5) A
proposal under this Article may consist of (but is not limited to consisting
of) –
(a) if
the surplus appears to be of a temporary nature, a recommendation that no
action should be taken;
(b) the
retention of a surplus no larger than the Actuary advises is a prudent reserve;
or
(c) a
proposal to increase the benefits under any of the Teachers’ Superannuation
Schemes.
(6) The
Minister may, after having submitted a proposal to the States under paragraph (4)
and before 6 months after the report referred to in paragraph (1) was
laid before the States –
(a) consult
with the Management Board; and
(b) submit
to the States further proposals, to which the Management Board have agreed, for
disposing of the surplus.
(7) A
proposal by the Minister under paragraph (4) shall not operate so as to
exclude other proposals submitted to the States under paragraph (6).
(8) If
a surplus continues to exist after the operation of paragraphs (2)
and (3) and, before 6 months after the report is laid before the
States, the Management Board and the Minister have not submitted to the States
further proposals under paragraph (4) or (6), then after a further 3 months –
(a) one-third
of the remaining surplus shall be applied to a reduction in the rate of
contributions payable by members under one or more of the Teachers’
Superannuation Schemes; and
(b) two-thirds
of the remaining surplus shall be applied to a reduction in the rate of
contributions payable by the employers under one or more of the Teachers’
Superannuation Schemes,
without the need for
proposals for disposing of the surplus, or amendment of the scheme or schemes.
(9) Paragraph (8)(a)
shall not apply if the member representatives, before 9 months after the
date the report was laid before the States, request the Minister to submit
proposals to the States on their behalf to apply one-third of the remaining
surplus in whole or in part to an increase to the benefits under this Order or
under any of the Teachers’ Superannuation Schemes.
(10) The
Management Board shall not agree to a proposal under paragraph (4) or (6)
unless the proposal is supported by a majority of the employer representatives
and a majority of the member representatives present at the meeting at which
the agreement is given.
19 If
actuarial investigation discloses deficiency in Fund[22]
(1) If a report provided to
the Management Board under Article 3(13) of the Law or Article 16 of
this Order discloses any deficiency in the Fund, the Minister shall, within 3
months after the Minister has laid the report before the States, submit to the
States proposals, to which the Management Board have agreed, for making good
the deficiency.
(2) A proposal under this
Article may consist of (but is not limited to consisting of) –
(a) if
the deficiency appears to be of a temporary nature, a recommendation that no
action should be taken; or
(b) an
increase in the contributions payable by the members under any of the
Teachers’ Superannuation Schemes or an increase in the contributions
payable by the employers under any of the Teachers’ Superannuation
Schemes.
(3) The Minister and the
Management Board may, before 6 months after the report referred to in paragraph (1)
is laid before the States, agree to proposals for making good the deficiency
that are in addition to proposals submitted to the States under paragraph (1),
and submit those proposals to the States.
(4) A proposal by the
Minister under paragraph (1) shall not operate so as to exclude other
proposals under paragraph (3).
(5) If within 6 months
after the report referred to in paragraph (1) is laid before the States,
the Management Board and the Minister have not agreed on proposals to be
submitted under paragraph (1) or (3), then after a further period of 3
months –
(a) the
Management Board shall, in accordance with Article 23, in the manner
recommended in the Actuary’s report, reduce or cancel any increase in
pensions, deferred pensions and deferred lump sums that might otherwise have
been made after that further period of 3 months, in order to eliminate the
deficiency as far as possible; and
(b) if
the Actuary’s report indicates that even after the operation of sub-paragraph (a)
a deficiency is likely to continue to exist, the Minister shall submit
proposals to the States for an increase in the contributions payable by the
members, or employers, or both, under any of the Teachers’ Superannuation
Schemes.
(6) The Management Board
shall not agree to a proposal under this Article unless the proposal is
supported by a majority of the employer representatives and a majority of the
member representatives present at the meeting at which the agreement is given.
Transfers
20 Transfers
into Teachers’ Superannuation Schemes[23]
(1) This paragraph applies
to a member of any of the Teachers’ Superannuation Schemes if –
(a) the
Treasurer receives in respect of the member any refund paid to the member
(other than a refund from the Fund); or
(b) any
transfer value is received by the Treasurer in respect of the member under the
terms of –
(i) a personal
pension scheme (whether entered into in Jersey, the United Kingdom or
elsewhere),
(ii) an
approved Jersey scheme (including another pension scheme administered by or on
behalf of the States),
(iii) a
scheme equivalent to the relevant Teachers’ Superannuation Scheme established in the United Kingdom or under the
jurisdiction of any country or territory outside Jersey, or
(iv) an
approved drawdown contract, and
referred to in this Article as the “transferring
arrangement”.[24]
(2) If paragraph (1)
applies to –
(a) a
member of the scheme under the Teachers’
Superannuation (Existing Members) (Jersey) Order 1986, the member shall be
entitled to the number of notional reckonable service years that the Management
Board, on the advice of the Actuary, shall decide; or
(b) a
member of the scheme under the Teachers’
Superannuation (New Members) (Jersey) Order 2007, the member shall be
entitled to the number of notional pensionable service years that the
Management Board, on the advice of the Actuary, shall decide.
(3) The Management Board
shall, under paragraph (2), determine the number of notional reckonable
service years or notional pensionable service years in relation to a member,
having regard to the amount of money received by the Treasurer as a refund or
transfer value in respect of the member.
(4) In addition to the
years referred to in paragraph (3), a member who transfers into any of the
Teachers’ Superannuation Schemes from another scheme administered by or
on behalf of the States (other than a Teachers’ Superannuation Scheme)
shall be entitled to additional periods of pensionable service.
(5) The additional periods
referred to in paragraph (4) shall be determined on the basis that the
member is to be credited with a total number of notional reckonable service
years or notional pensionable service years that is equivalent to the number of
years of service that he or she is taken to have been employed in for the
purposes of the scheme from which he or she has transferred, except that the
number shall be adjusted by the Actuary to take into account any change in the
rate of accrual of benefit.
(6) The Minister may, after
consulting the Actuary, undertake to the trustees or manager of the
transferring arrangement (or others concerned) that the benefits to be provided
in respect of the transfer value shall not be less than those specified, by the
transferring arrangement, in relation to –
(a) guaranteed
minimum pensions, for the purposes of the Pensions Schemes Act 1993 (c.48) of the United
Kingdom; or
(b) any
other minimum levels of benefits approved by the Minister.[25]
(7) If the Minister makes
an undertaking in accordance with paragraph (6) in relation to a person,
the benefits shall, if necessary to comply with the undertaking, be augmented
by virtue of this Article and Article 21.
(8) In the case of a United
Kingdom transferring arrangement –
(a) at
least 70% of a transferred person’s UK tax-relieved scheme funds must be
designated by the Treasurer for the purposes of providing that person with an
income for life;
(b) no payment of a pension
(including any lump sum) in respect of the funds designated under sub-paragraph (a),
must be made before the day on which a transferred person reaches the age of 55,
unless, immediately before he or she becomes entitled to a pension under the
relevant Teachers’ Superannuation Scheme, that person ceases employment
by reason of ill-health retirement under the ill-health retirement provisions
of the relevant Teachers’ Superannuation Scheme;
(c) the Minister must
ascertain whether, under that transferring arrangement, a restriction applies
to the refund of the transferred person’s contributions, and if so, a
similar restriction must apply under the relevant Teachers’
Superannuation Scheme in relation to that person in respect of those
contributions;
(d) the Minister must
ensure that an undertaking to maintain any restriction on the refund of a
transferred person’s contributions, is given by the trustees or managers
of any arrangement to which a subsequent transfer is made under Article 21.[26]
(9) The Minister may give such undertakings to the
taxation authorities of the United Kingdom or elsewhere, as he or she considers
appropriate, in connection with transfer values received under this Article, or
the maintenance of any restrictions in relation to the refund of a transferred
person’s contributions.[27]
(10) The Minister may make
reciprocal arrangements with other pension schemes for transfers of members of
any of the Teachers’ Superannuation Schemes to and from the other pension
schemes.
(11) The benefits to be provided
in respect of a transfer value received and a transfer value to be paid shall,
if necessary to comply with the reciprocal arrangements referred to in paragraph (10),
be augmented by virtue of this Article.
(12) In –
(a) paragraphs (8)
and (9) “transferred person” means a person in respect of whom the
Treasurer has, under paragraph (1)(b), received a transfer value under a
United Kingdom transferring arrangement;
(b) paragraph (8)(a)
“UK tax-relieved scheme funds” has the
meaning given in regulation 2(5) of the Pension
Schemes (Categories of Country and Requirements for Overseas Pension Schemes
and Recognised Overseas Pension Schemes) Regulations 2006
(S.I. 2006/206) of the United Kingdom.[28]
21 Transfers
out of Teachers’ Superannuation Schemes[29]
(1) This Article applies
if –
(a) a
member of the scheme under the Teachers’
Superannuation (Existing Members) (Jersey) Order 1986 leaves reckonable service
within the meaning of that Order; or
(b) a
member of the scheme under the Teachers’
Superannuation (New Members) (Jersey) Order 2007 leaves pensionable service
within the meaning of that Order.[30]
(1A) If a member leaves service as
referred to in paragraph (1) and –
(a) subscribes to a
personal pension scheme;
(b) becomes a member of an
approved Jersey scheme;
(c) becomes a member of a
scheme equivalent to the relevant Teachers’
Superannuation Scheme established outside Jersey;
or
(d) enters
into an approved drawdown contract,
provided that member’s retirement benefits have not come into
payment, the Treasurer may pay in respect of that member a transfer value to
the trustees or managers of the scheme or contract in question.[31]
(2) The transfer value
shall be the amount that the Treasurer, on the advice of the Actuary, decides.
(3) Despite Article 20
and paragraphs (1) to (2), if a member of one of the Teachers’
Superannuation Schemes transfers into another pension scheme administered by or
on behalf of the States, the person shall be entitled to a transfer value of
such an amount that the total number of years of service that the person is
taken to have been employed in for the purposes of the scheme from which he or
she has transferred remains unchanged, except that the value shall be adjusted
by the Actuary to take into account any change in the rate of accrual of
benefit.[32]
(4) Where
a transfer payment is paid out of the Fund under this Article, that payment
extinguishes the member’s rights to any other benefits under the relevant
Teachers’ Superannuation Scheme, as well as the rights of any person
contingently entitled to any benefit payable upon that member’s death.[33]
Miscellaneous
22 Accounts
and records[34]
The Treasurer shall –
(a) prepare annual accounts
of the Fund and the Teachers’ Superannuation Schemes;
(b) have annual accounts of
the Fund and the Teachers’ Superannuation Schemes professionally audited;
(c) keep or cause to be
kept the records necessary for the proper working of the Fund and Teachers’
Superannuation Schemes; and
(d) provide the Management
Board and the Actuary with copies of the accounts and any other information
that they may reasonably require.
23 Increases
in pension[35]
(1) All pensions in payment
from any of the Teachers’ Superannuation Schemes and all deferred
pensions and deferred lump sums shall be, from 1st January in a year, increased
to the same extent as the increase (if any) in the Jersey Cost of Living Index
at the end of the previous December quarter.
(2) Despite paragraph (1) –
(a) a
pension which was paid during the previous year or a deferred pension
entitlement which came into existence during the previous year shall be
increased only by 1/365 of the full annual rate for each day of payment or
entitlement;
(b) if a
deficiency has been disclosed by an actuarial review under Article 3(12)
of the Law or Article 16 of this Order, the increase in pensions in
payment and deferred pensions shall, if appropriate, be reduced or cancelled as
provided in Article 19; and
(c) if a
reduction or cancellation (or both) referred to in sub-paragraph (b) has taken
place within the 6 years before the date on which a report disclosing a
surplus as referred to in Article 18(1) was signed by the Actuary who
prepared the report, the Management Board shall apply the surplus in or towards
making good the loss to any individual pensioner or deferred pensioner still
alive, being the loss that was caused by the reduction or cancellation (or
both).[36]
24 Tax
deductions[37]
The Treasurer shall deduct from any payment of any pension or other
benefit under any of the Teachers’ Superannuation Schemes any tax for
which the Treasurer or the scheme may be liable in respect of that payment.
Part 4
Concluding provisionS
25 Transitional
provisions – appointments[38]
(1) A person who was,
immediately before 12th January 2007, an investment manager appointed under Article 3(5)
of the Law as then in force shall be taken –
(a) to be
a person appointed by the Management Board to be an investment manager under Article 3(5A)
of the Law as in force immediately after 12th January 2007;
(b) to
have been so appointed in accordance with this Order; and
(c) for
the purposes of the Law as in force after 12th January 2007, and any Order made
under the Law, to have been so appointed on 12th January 2007.
(2) In an instrument of
appointment of a person referred to in paragraph (1) a reference to the
Minister or a former Committee of the States shall be taken to be a reference
to the Management Board.
(3) A person who was,
immediately before 12th January 2007, a custodian shall be taken –
(a) to be
a custodian appointed under this Order by the Management Board; and
(b) for
the purposes of the Law as in force after 12th January 2007, and any Order made
under the Law, to have been so appointed on 12th January 2007.
(4) A person who was,
immediately before 12th January 2007, an Actuary appointed under Article 3(11)
of the Law as then in force shall be taken –
(a) to
have been appointed to be the Actuary by the Management Board under Article 3(11)
of the Law as in force immediately after 12th January 2007;
(b) to
have been so appointed in accordance with this Order; and
(c) for
the purposes of the Law as in force after 12th January 2007, and any Order made
under the Law, to have been so appointed on 12th January 2007.
(5) In an instrument of
appointment of a person to be an Actuary under the Teachers’
Superannuation (Financial Provisions) (Jersey) Order 1996 a reference to the
Minister or a former Committee of the States shall be taken to be a reference
to the Management Board.
26 Transitional
arrangements – pension increases[39]
(1) For the year 2007, in Article 23
for paragraph (1) there shall be substituted the following paragraph –
“(1) All pensions in payment from
any of the Teachers’ Superannuation Schemes and all deferred pensions and
deferred lump sums shall be, from a date within April specified by the
Management Board, increased to the same extent as the increase (if any) in the
Jersey Cost of Living Index at the end of the 2006 September quarter.”.
(2) For the year 2008, in Article 23(2)
for sub-paragraph (a) there shall be substituted the following
sub-paragraph –
“(a) a pension which was paid
during the previous year or a deferred pension entitlement which came into
existence during the previous year shall, from 1st January 2008, be increased
only by 9/12 of the full annual rate for each day of payment or
entitlement;”.
27 Citation
(1) This Order may be cited
as the Teachers’ Superannuation (Administration) (Jersey) Order 2007.