
PART I
1 
These Rules may be cited as the Superannuation (English Teaching
and Scottish Local Government) Interchange Rules 1968 and shall come into
operation on 8th August 1968.
2 

(1) In these Rules,
unless the context otherwise requires—
 “the Act” means the Superannuation (Miscellaneous
Provisions) Act 1948;
 “the Act of 1909” means the Asylums Officers' Superannuation
Act 1909;
 “the Act of 1937” means the Local Government Superannuation
(Scotland) Act 1937;
 “the Act of 1953” means the Local Government Superannuation
Act 1953;
 “the Acts of 1937 to 1953”
 means the Local Government Superannuation
(Scotland) Acts 1937 to 1953;
 “the Teachers Acts” means the Teachers (Superannuation) Acts 1918 to 1956;
 “added years” means, in relation to local government employment, any additional years
of service reckonable under regulation 12
of the Benefits Regulations or any corresponding provision of a local Act
scheme and includes any additional years of service which, having been granted
under any such provision or under any similar provision contained in any other
enactment or scheme, have subsequently become and are reckonable under or
by virtue of rules made under sections 2
and 15
of the Act or any other enactment;
 “the Benefits Regulations”
 means the Local Government Superannuation (Benefits) (Scotland) Regulations
1954 ;

 “fund authority” means a local authority maintaining a superannuation fund to which a person
either becomes a contributor after ceasing to be employed in teaching service
or, as the case may be, was last a contributor before he became employed in
teaching service;
 “local authority” includes, in the case of a local authority which has ceased to exist,
the local authority by whom the expenses of the first-mentioned local authority
were defrayable;
 “local government employment”
 means employment by virtue of which
the person employed is or is deemed to be a contributory employee or local
Act contributor within the meaning of the Act of 1937;
 “Local Government Modification
Regulations” means the National Insurance (Modification
of Local Government Superannuation Schemes) (Scotland) Regulations 1947 and any provisions contained
in the Benefits Regulations or in a local Act scheme or in a scheme made in
relation to a local Act replacing wholly or in part the provisions of the
first-mentioned Regulations;
 “national service”, in
relation to any person, means service which is relevant
service within the meaning of the Reserve and Auxiliary Forces (Protection of Civil Interests)
Act 1951 and any similar service immediately
following relevant service entered into with the consent of the authority
or person by whom he was last employed or, as the case may be, appointed to
an office before undertaking that service;
 “operative date” means the date of the coming into operation of these Rules;

 “pension” has the meaning assigned to it by the Act;
 “prescribed period” has the meaning assigned to that expression by rule 3;
 “reckonable service”
means such service as is by virtue of the Teachers'
Regulations reckonable service for all the purposes of Part I of the Teachers' Superannuation Act 1967
;
 “repaid contributions”
 means any sum paid to a person under
the Teachers Acts, the Teachers' Regulations, the Acts of 1937 to 1953 or
a local Act scheme by way of repayment of contributions (other than voluntary
contributions and contributions made or deemed to be made for the purpose
of securing benefits for a widow, children or other dependants); and includes
both any interest included in such sum and any amount deducted therefrom in
respect of liability to income tax arising by reason of the payment;

 “the Secretary of State”
 means the Secretary of State for Education
and Science;
 “the Teachers' Regulations”
 means the Teachers' Superannuation Regulations 1967;
 “teaching service” means—
(a) reckonable service;
(b) service which for the purposes of the Teachers' Regulations is
service as an organiser, a teacher in an admitted school, a services civilian
teacher or a services education officer; and
(c) service as a part-time teacher within the meaning of the Teachers' (Part-time) Superannuation
Regulations 1967;
 “the Transfer Value Regulations”
 means the Local Government Superannuation (Transfer Value) (Scotland) Regulations
1954;

 “voluntary contributions”
 means—
(a) in relation to employment in teaching service,
additional contributions being paid under section 19 of the Teachers (Superannuation) Act 1956
or regulation 32
of the Teachers' Regulations in respect of a period of previous employment
and any contributions being paid as a condition of any other period (not being
a period of war service within the meaning of the Teachers Superannuation (War Service) Act 1939
or of national service) being reckoned as reckonable service; and
(b) in relation to local government employment, payments
(other than completed payments, that is to say, payments made in respect of
a liability which has been wholly discharged) of any of the following categories—

(i) additional contributory payments of the kind referred
to in section 2(3) and (4)
of the Act of 1953;
(ii) any similar payments made under a local Act scheme as
a condition of reckoning any period of employment as service or as a period
of contribution for the purposes of the scheme, or, where the local Act scheme
provides for the reckoning of non-contributing service, as contributing service
for the purposes of the scheme;
(iii) any payments made for the purpose of increasing the length
at which any period of service or of contribution would be reckonable for
the purpose of calculating a benefit under a local Act scheme; and
(iv) any payments made in respect of added years;
(2) Other expressions
which have meanings assigned to them by the Acts of 1937 to 1953 or the Teachers'
Regulations have, unless the context otherwise requires, the same respective
meanings for the purposes of these Rules.
(3) Any reference in
these Rules to the provisions of any enactment, rules, regulations or other
instrument shall, unless the context otherwise requires, be construed as a
reference to those provisions as amended, modified, affected or re-enacted
by any subsequent enactment, rules, regulations or instrument.
(4) References in these
Rules to a rule or to a Part shall, unless the context otherwise requires,
be construed as references to a rule or to a Part of these Rules, as the case
may be.
(5) The Interpretation Act 1889
shall apply for the interpretation of these Rules as it applies for the interpretation
of an Act of Parliament.
3 

(1) For the purposes
of these Rules, subject as hereafter in this rule provided, the expression “prescribed
period” shall mean—
(a) in the case of a person
who, immediately after ceasing to be employed in teaching service or local
government employment, became engaged in national service, a period of six
months after the date of termination of the national service;
(b) in the
case of a person to whom section 6
of the Act has become applicable, a period of five years after the date on
which he ceased to be employed in local government employment or such longer
period as the Secretary of State for Scotland may in any particular case allow;
and
(c) in the
case of any other person, a period of twelve months after the date on which
he ceased to be employed in teaching service or local government employment.

(2) The Secretary of
State in the case of a person entering teaching service and the fund authority
in the case of a person entering local government employment may, with the
agreement of the other, extend the period of six months or twelve months,
whichever is appropriate, specified in paragraph (1) above.
(3) Subject as in paragraph
(4) below provided—
(a) in reckoning
the periods of six months and twelve months specified in paragraph (1) above
no account shall be taken of any period spent by a person on a course of study
or training which he undertook after leaving his former employment; and
(b) if a person
left his former employment in order to undertake a course of study or training
and on completion of that course became engaged in national service, he shall
be deemed for the purposes of paragraph (1) above to have left his former
employment at the time when he completed the said course of study or training.

(4) The provisions of
paragraph (3) above shall not apply to a person who in his new employment
is in local government employment unless the authority employing him are satisfied,
or to a person who in his new employment is in teaching service unless the
Secretary of State is satisfied, that by reason of his having undertaken the
said course of study or training he is better fitted for the duties of his
new employment.
PART II
4 

(1) Except as hereinafter
provided, this Part shall apply to a person who—
(a) enters, or
before the operative date entered, local government employment within the
prescribed period after ceasing to be employed in teaching service;
(b) before or within
three months after entering local government employment or within six months
after the operative date, whichever period shall last expire, or within such
longer period as the fund authority may with the agreement of the Secretary
of State in any particular case allow, notifies that authority in writing
that he desires this Part to apply to him and furnishes that authority with
particulars in writing of any national service in which he has been engaged
since ceasing to be employed in teaching service; and
(c) within three
months after entering local government employment or within six months after
the operative date, whichever period shall last expire, or within such longer
period as the fund authority may in any particular case allow, pays to that
authority an amount equal to any repaid contributions paid to him after he
last ceased to be employed in teaching service, together with any compound
interest thereon payable in accordance with paragraph (2) below.
(2) For the purposes
of paragraph 1(c) above—
(a) compound interest
shall not be payable unless the period between a person's ceasing to be employed
in teaching service and entering local government employment exceeds one year;

(b) compound interest
shall be calculated on the amount of the repaid contributions at three per
cent per annum with half-yearly rests from the day one year after that on
which the person ceased to be employed in teaching service or from the day
on which repaid contributions were paid to him, whichever shall be the later,
to the day on which he notified the fund authority as required by paragraph
(1)(b) above; and
(c) if the amount
of compound interest calculated as aforesaid exceeds a sum equal to one half
of the difference between the amount of the transfer value payable under rule 6 and the amount of the transfer
value which would have been so payable if calculated by reference to the person's
age on ceasing to be employed in teaching service, it shall be reduced to
that sum.
5 
This Part shall not apply to a person who—
(a) has received payment
of any pension (other than repayment of contributions) under the Teachers
Acts or the Teachers' Regulations;
(b) is a person in
respect of whom a transfer value has been paid otherwise than under these
Rules by the Secretary of State since he last ceased to be employed in teaching
service;
(c) last ceased to
be employed in teaching service before 4th February 1948; or
(d) last ceased to
be employed in teaching service on or after 4th February 1948 but before the
operative date, unless—
(i) he has been
employed in local government employment without a break of twelve months or
more at any one time from the date when he ceased to be employed in teaching
service until the operative date or, if he ceased to be employed in local
government employment before the operative date, until the date when he so
ceased; and
(ii) if he ceased
to be employed in local government employment before the operative date, the
Secretary of State and the local authority maintaining the fund to which he
was last a contributor agree that this Part shall apply to him.
6 

(1) In respect of a
person to whom this Part applies the Secretary of State shall, out of moneys
provided by Parliament, pay to the fund authority a transfer value of an amount
calculated in accordance with the following provisions of this rule.
(2) Subject as hereafter
in this rule provided, the transfer value shall be an amount equal to the
transfer value which would have been payable under the Transfer Value Regulations
if the person, at the date when he ceased to be employed in teaching service,
had ceased to be a contributory employee under one local authority and had
become such an employee under another local authority and had been entitled
to reckon as contributing service his reckonable service and his service reckonable
for the purposes of Parts VII,IX and X
of the Teachers' Regulations at the length at which it is so reckonable.
(3) For the purpose
of calculating the amount of a transfer value any period of service which,
having originally been non-contributing service or non-contributing service
for the purposes of regulations made under section 67 of the National Health Service Act 1946
or section 66
of the National
Health Service (Scotland) Act 1947 became reckonable
as reckonable service by virtue of such regulations or of rules made under section 2 of the Act shall be
treated as non-contributing service.
(4) For the purposes
of paragraph (2) above service which is reckoned as contributing service shall
be deemed to have been affected or modified in accordance with regulations
applicable to contributing service made under section 110 of the National Insurance Act 1965or
under any provision corresponding thereto contained in an enactment repealed
by that Act, in like manner and to the like extent, as nearly as may be, as
it was affected or modified by other such regulations.
(5) In calculating
the amount of a transfer value there shall be excluded—
(a) any period
of war service within the meaning of the Teachers Superannuation (War Service)
Act 1939 and of national service within the
meaning of the Teachers Superannuation (National
Service) Rules 1949 in respect of which, at the time the transfer value
is paid, the contributions remain unpaid; and
(b) any period
of previous employment and any period additional to actual service in respect
of which the person was immediately before ceasing to be employed in teaching
service paying voluntary contributions and in respect of which, at the time
the transfer value is paid, he has not elected to continue to pay such contributions.

(6) In respect of a
person who ceased to be employed in teaching service more than one year before
the operative date the amount of the transfer value shall, except in a case
to which paragraph (7) below applies, be—
(a) calculated
by reference to his age on the operative date; and
(b) where either paragraph (2) or paragraph (3) of rule 3
applies, reduced by the amount of any compound interest payable by him in
accordance with rule 4(2).

(7) In respect of a
person who became employed in local government employment on or after the
operative date and to whom either paragraph (2) or paragraph (3) of rule
3 applies the amount of the transfer value
shall be—
(a) calculated
by reference to his age on the date on which he became employed in local government
employment; and
(b) reduced by
the amount of any compound interest payable by him in accordance with rule 4(2).
7 

(1) Subject as hereafter
in this rule provided, so much service as is taken into account under rule 6 for the purpose of calculating
the amount of the transfer value payable in respect of a person shall be reckoned
as contributing service or as service under a local Act scheme or a period
of contribution for the purposes of such a scheme.
(2) So much service
as is taken into account as non-contributing service under rule 6 for the purpose of calculating
the amount of the transfer value payable in respect of a person shall be reckoned
as non-contributing service.
(3) Any service of
a person to whom this Part applies which under the Teachers' Regulations is
reckonable only for the purpose of calculating the amount of any pension payable
to or in respect of him or only for the purpose of determining whether he
is entitled to any pension shall be reckoned only for the corresponding like
purpose under the Acts of 1937 to 1953 or a local Act scheme.
(4) Except as in this
rule before provided, a person to whom this Part applies shall not be entitled
under section 12(2)
of the Act of 1937 or any corresponding provision of a local Act scheme to
reckon as service any local government employment prior to the date on which
he became employed in teaching service if a transfer value has been paid in
respect of that local government employment under rule 17
or under any corresponding provision contained in other rules made under section 2 of the Act.
8 

(1) A person to whom
this Part applies may elect to continue to pay voluntary contributions being
paid by him immediately before ceasing to be employed in teaching service.

(2) If a person elects
as aforesaid and—
(a) within three
months of becoming employed in local government employment, or within such
longer period as the fund authority may in any particular case allow, pays
to that authority a sum equal to the aggregate of any sum paid to him by way
of return of voluntary contributions on or after ceasing to be employed in
teaching service, any interest added thereto and any amount deducted therefrom
in respect of liability to income tax by reason of the payment; and
(b) thereafter
pays to that authority any amounts outstanding in respect of those voluntary
contributions at the times at which and in the manner in which they would
have been payable if he had remained in teaching servicehis local government employment shall be affected in the manner
prescribed by the following provisions of this rule.
(3) In respect of voluntary
contributions made in respect of any period of previous employment and any
period additional to actual service, the person shall enjoy rights and be
subject to liabilities as if those years were added years in respect of which
payments are being made in his local government employment under regulation 12 of the Benefits
Regulations or, if in his local government employment he is subject to a local
Act scheme, under such provisions corresponding to the said regulation 12 or to regulation 5 of the Local Government Superannuation
(Reckoning of Service on Transfer) (Scotland) Regulations 1954 as are contained in that scheme.
(4) In respect of voluntary
contributions other than those to which paragraph (3) above applies, the person
shall be treated as if those contributions had been completed immediately
before he ceased to be employed in teaching service.
9 

(1) Where a person
to whom this Part applies ceases to be employed in local government employment
or dies, then, in calculating any amount payable or in respect of him by way
of return of contributions, the amount of his contributions in respect of
service reckonable in accordance with rule 7(1)
shall be taken to include such amount as would have been payable by way of
return of contributions under the Teachers Acts or the Teachers' Regulations
if, on his ceasing to be employed in teaching service, he had been entitled
to be repaid his contibutions without interest.
(2) Where an amount
payable by way of return of contributions or by way of benefit is a sum equal
to, or which falls to be calculated by reference to, the amount of a person's
contributions with compound interest thereon, compound interest shall also
be payable in respect of the amount by which those contributions are increased
under the last preceding paragraph, calculated—
(a) as respects
the period ending immediately before the day on which he entered local government
employment, at the rate at which it would have been calculated under the Teachers
Acts or the Teachers' Regulations, as the case may be, if on ceasing to be
employed in teaching service he had been entitled to a return of contributions
together with compound interest thereon; and
(b) as respects
the period beginning with the date on which he entered local government employment,
in accordance with the provisions of section 10
of the Act of 1937 or, as the case may be, the corresponding provisions of
the relevant local Act scheme.
(3) Notwithstanding
anything in this rule previously contained, the sum by which contributions
are increased by virtue of paragraph (1) or (2) above shall not include—

(a) any sum in
respect of contributions which, on or after the person's ceasing to be employed
in teaching service, were returned to and retained by him; or
(b) any amount
in respect of voluntary contributions which are not continued in pursuance
of rule 8 of these
Rules.
10 
Subject to the provisions of Part III
and of other rules made under section 2
of the Act, no payment of any pension shall be made under the Teachers' Regulations
to any person or his personal representatives in respect of any service which
is taken into account in calculating the amount of a transfer value under rule 6.
11 

(1) The modifications
for which the Local Government Modification Regulations provide shall not
apply to a person to whom this Part applies if either—
(a) he ceased
to be employed in teaching service before 1st April 1967 and at the time of
so ceasing was not subject to the modifications of the Teachers Acts made
by the Teachers Modification Regulations; or
(b) he ceased
to be employed in teaching service on or after 1st April 1967 and at the time
of so ceasing was not subject to paragraph 2 of Schedule 5
to the Teachers' Regulations.
(2) Without prejudice
to the operation of the National Insurance (Modification
of Local Government Superannuation Schemes) No. 2 (Scotland) Regulations 1961
,
the modifications for which the Local Government Modification Regulations
provide shall apply to any other person to whom this Part applies as if any
service reckonable in accordance with rule 7(1)
were service for the purposes of the Acts of 1937 to 1953 or service for the
purposes of a local Act scheme, as the case may be, rendered on or after 5th
July 1948.
(3) Where any pension
which might have become payable under the Teachers Acts or the Teachers' Regulations
to a person to whom this Part applies would have been subject to modification
under the Teachers Modification Regulations or Part III of Schedule 5
to the Teachers' Regulations by reference to a table and his age at a given
date, the provisions of the Local Government Modification Regulations modifying
pensions in similar manner shall apply to that person and for that purpose
the relevant date shall be that which was relevant for the purposes of the
Teachers Modification Regulations or the said Schedule 5,
as the case may be.
(4) In this rule 
“the Teachers Modification Regulations” means the National Insurance (Modification
of Teachers Pensions) Regulations 1948, as amended by the National Insurance (Modification
of Teachers Pensions) Amending Regulations 1956.
12 
The provisions of section 30
of the Act of 1937 (which section relates to the decision of questions and
appeals) shall have effect in relation to a person (not being a local Act
contributor), to whom this Part applies as if the reference therein to regulations
made under that Act included a reference to these Rules
13 

(1) Section 11(3) of the Act of 1953
(which sub-section enables certain persons who would otherwise be debarred
on grounds of age from becoming contributory employees or local Act contributors
to become such employees or such contributors and to reckon previous pensionable
employment) shall apply to a person who before the operative date entered
the employment of a local authority after ceasing to be employed in teaching
service on or after 4th February 1948.
(2) For the purposes
of paragraph (1) above section 11(3)
of the Act of 1953 shall have effect as if for the references therein to the
passing of the Act there were substituted references to the coming into operation
of these Rules.
PART III
14 

(1) Except as hereinafter
provided, this Part shall apply to a person who—
(a) becomes,
or before the operative date became, employed in teaching service within the
prescribed period after ceasing to be employed in local government employment;

(b) before or
within three months after becoming employed in teaching service or within
six months after the operative date, whichever period shall last expire, or
within such longer period as the Secretary of State may with the agreement
of the fund authority in any particular case allow, notifies the Secretary
of State in writing that he desires this Part to apply to him and furnishes
the Secretary of State with particulars in writing of any national service
in which he has been engaged since ceasing to be employed in local government
employment; and
(c) within three
months after becoming employed in teaching service or within six months after
the operative date, whichever period shall last expire, or within such longer
period as the Secretary of State may in any particular case allow, pays to
the Secretary of State an amount equal to any repaid contributions paid to
him after he last ceased to be employed in local government employment, together
with any compound interest thereon payable in accordance with paragraph (2)
below.
(2) For the purposes
of paragraph (1)(c) above—
(a) compound
interest shall not be payable unless—
(i) the period
between the person's ceasing to be employed in local government employment
and his becoming employed in teaching service exceeds one year; and
(ii) the
fund authority requires that it be paid.
(b) compound
interest shall be calculated on the amount of the repaid contributions at
three per cent per annum with half-yearly rests from the day one year after
that on which the person ceased to be employed in local government employment
or from the day on which repaid contributions were paid to him, whichever
shall be the later, to the day on which he notified the Secretary of State
as required by paragraph (1)(b) above;
and
(c) if the amount
of compound interest calculated as aforesaid exceeds a sum equal to one half
of the difference between the amount of the transfer value payable under rule 17 and the amount of the
transfer value which would have been so payable if calculated by reference
to the person's age on ceasing to be employed in local government employment,
it shall be reduced to that sum.
15 
This Part shall not apply to a person who—
(a) has received
payment of any pension (other than repayment of contributions) under the Acts
of 1937 to 1953 or a local Act scheme;
(b) is a person in
respect of whom a transfer value has been paid otherwise than under these
Rules, by a fund authority since he last ceased to be employed in local government
employment;
(c) last ceased to
be employed in local government employment before 4th February 1948; or
(d) last ceased to
be employed in local government employment on or after 4th February 1948 but
before the operative date, unless—
(i) he is employed
in teaching service on the operative date, or, if he is not so employed on
that date, the Secretary of State agrees that this Part shall apply to him;
and
(ii) the fund
authority agrees that this Part shall apply to him.
16 

(1) The local authority
by whom a person to whom this Part applies was last employed may, within three
months after the date on which they are notified by the Secretary of State
of such application, exercise in relation to that person any discretion which,
with a view to increasing the pension payable to him, it would have been open
to them to exercise at the time when he left their employment if he had then
retired and had been entitled to a retirement pension under regulation 5 of the Benefits Regulations
or, if that regulation was not applicable to him, to any corresponding benefit
provided under the superannuation provisions which were applicable to him
in his former employment.
(2) A decision made
in the exercise of any discretion under paragraph (1) above shall be subject
to the limitations and restrictions (if any) and to the right of appeal (if
any) to which it would have been subject if the discretion had been exercised
on the person's retirement in the circumstances aforesaid.
(3) Where a discretion
has been exercised under paragraph (1) above the service reckonable, immediately
before he ceased to be employed in local government employment, by the person
in whose favour the discretion has been exercised shall be deemed to have
been correspondingly increased.
(4) Any increase
in service, if attributable to a decision under this rule to increase the
pension payable to the person otherwise than by any notional increase or extension
of the service reckonable for the purpose of calculating that pension or by
treating any specified period of non-contributing service as contributing
service, or, under a local Act scheme, by similarly converting service of
one category to service of another category, shall be ascertained by converting
the service in respect of which the higher rate of benefit is payable into
contributing service or service for the purposes of the relevant local Act
scheme in the manner in which non-contributing service is converted into contributing
service under section 2(4)
of the Act of 1953.
17 

(1) In respect of
a person to whom this Part applies the fund authority shall, out of the superannuation
fund maintained by them, pay to the Secretary of State a transfer value of
an amount calculated in accordance with the following provisions of this rule.

(2) Subject as hereafter
in this rule provided, the transfer value shall be an amount equal to the
transfer value which would have been payable under the Transfer Value Regulations
if the person, at the date when he ceased to be a contributory employee or
local Act contributor, had become such an employee or contributor under another
local authority.
(3) In calculating
the amount of a transfer value—
(a) there shall
be included any increase of service of the person by reason of the exercise
under rule 16
of a discretion in his favour;
(b) there shall
be excluded any added years in respect of which the person was immediately
before ceasing to be employed in local government service paying voluntary
contributions and in respect of which, at the time the transfer value is paid,
he has not elected to continue to pay such contributions; and
(c) the Transfer
Value Regulations shall be deemed to be modified—
(i) by the
omission from sub-paragraph (a) of the definition of “service”
 in paragraph 1 of the First Schedule
 thereto of the words “not
being such service as is mentioned in proviso (a)
to that sub-section”; and
(ii) by
the omission, in respect of a person who was an established officer or servant
within the meaning of the Act of 1909, of subparagraph (c) of the said definition.

(4) In respect of
a person who ceased to be employed in local government employment more than
one year before the operative date the amount of the transfer value shall,
except in a case to which paragraph (5) below applies, be—
(a) calculated
by reference to his age on the operative date; and
(b) where either paragraph (2) or paragraph (3) of rule 3
applies, reduced by the amount of any compound interest payable by him in
accordance with rule 14(2).

(5) In respect of
a person who became employed in teaching service on or after the operative
date and to whom either paragraph (2) or paragraph (3) of rule
3 applies the amount of the transfer value
shall be—
(a) calculated
by reference to his age on the date on which he became employed in teaching
service; and
(b) reduced by
the amount of any compound interest payable by him in accordance with rule 14(2).
(6) The amount of
the transfer value shall be reduced by an amount equal to any sum payable
by the fund authority by way of income tax by reason of its payment.
18 

(1) Where the amount
of a transfer value payable under rule 17
is increased by reason of the exercise under rule 16
of a discretion by a local authority, that authority shall pay the amount
of the increase to the superannuation fund out of which the transfer value
is payable.
(2) When paying a
transfer value under rule 17
a fund authority shall furnish to the Secretary of State and to the person
in respect of whom it is paid the like particulars relating to that person's
pensionable service as would have been given to him if instead of becoming
employed in teaching service he had reentered local government employment.

(3) The transfer
value payable under rule 17
in respect of a person who had been an established officer or servant within
the meaning of the Act of 1909 shall be calculated as if paragraph (c) had
been omitted from the definition of “service”
 in paragraph 1 of Schedule 1
to the Transfer Value Regulations.
(4) Where—

(a) a transfer
value is payable under rule 17
by a fund authority in respect of a person who before entering local government
employment has been subject ot the Act of 1909; and
(b) the body
by whom he was last employed while subject to that Act would, if he had become
entitled to a superannuation allowance on leaving local government employment,
have been liable to contribute to that allowancethat body shall pay to the fund authority a sum equal to the transfer
value which that body would have been liable to pay to the Secretary of State
for Scotland under regulation 52(4)
of the National
Health Service (Scotland) (Superannuation) Regulations 1950 if that regulation had become applicable
to the person on the date on which he became employed in teaching service;
and where that body would have had in respect of any such contribution a right
of contribution from any other body, that other body shall pay to the fund
authority a sum equal to the transfer value which that other body would have
been liable to pay to the Secretary of State for Scotland under paragraph
(5) of the said regulation 52 if that regulation had become applicable to
the person when he became employed in teaching service.
(5) Where any body
referred to in the last preceding paragraph has been dissolved or has ceased
to exercise functions as such, references to that body shall be construed
as references to the appropriate authority as defined in paragraph (15) of
the regulation mentioned therein.
19 

(1) Subject as hereafter
in this rule provided, in respect of a person to whom this Part applies—

(a) there shall
be reckoned as reckonable service—
(i) any period
of service which, at the time of his ceasing to be employed in local government
employment, is reckonable as contributing service or as service or a period
of contribution for the purposes of a local Act scheme;
(ii) any
period of national service after ceasing to be employed in local government
employment which would have been reckonable as aforesaid if he had again become
employed in local government employment after the termination thereof; and

(iii) 
one-half of any period of service which, at the time of his ceasing to be
employed in local government employment, is reckonable as non-contributing
service; and
(b) there shall
be reckoned as class C external service for the purposes of the Teachers'
Regulations any period of service which, at the time of his ceasing to be
employed in local government employment, is reckonable as non-contributing
service, except in so far as that service is reckoned under this rule or those
Regulations as reckonable service or as class A or class B external service
for the purposes of those Regulations.
(2) Where a person
to whom this Part applies has, during his local government employment, been
employed as a part-time employee, the period of his part-time service shall
be treated—
(a) for the purpose
of determining whether he has served for any minimum period prescribed by
the Teachers' Regulations as necessary for any pension to be paid to or in
respect of him as if it were whole-time service; and
(b) for the purpose
of calculating the amount of any pension payable under the Teachers' Regulations,
as if it were whole-time service for a proportionately reduced period.
(3) Where by virtue
of a scheme modifying the Act of 1937 any period of service of a person to
whom this Part applies is reckoned at a fraction of its actual length for
the purpose of calculating the amount of the transfer value payable under rule 17, then, for the purpose
of calculating the amount of any pension payable to or in respect of him under
the Teachers' Regulations, only that fraction of that period of service shall
be reckoned as reckonable service.
(4) In respect of
a person to whom this Part applies there shall not by virtue of this Part
be reckoned as reckonable service—
(a) any service
which he is or was entitled to reckon as contributing or non-contributing
service by virtue of section 15
of the Act of 1937 or the corresponding provisions of a local Act scheme if
that service is reckonable as first class service under the Teachers Superannuation (Scotland) Regulations
1957
or as reckonable service within the meaning of regulations made under section 1
of the Teachers'
Superannuation (Scotland) Act 1968; or
(b) any service
which in his case is deemed to be service to which the said section 15 applies
by virtue of the Local Government Superannuation
(England and Scotland) Regulations 1948, if that service is reckonable
as reckonable service otherwise than by virtue of these Rules; or
(c) any service
which is the subject of a direction under section 17(3)
of the Act of 1953 that all rights enjoyed by or in respect of the person
with respect to that service shall be forfeited.
(5) The whole of
any period of service to which paragraph (1) above applies shall, for the
purpose of calculating under section 4(3)
of the Teachers'
Superannuation Act 1967 the average salary
of a person to whom this Part applies, be reckoned as a period of employment
in reckonable service and his salary during any period so reckoned shall be
such amount as would under the Benefits Regulations be taken into account
for the purpose of determining the annual average of his remuneration during
that period.
(6) Notwithstanding
anything in this rule before contained, any service of a person to whom this
Part applies which under the Acts of 1937 to 1953 or a local Act scheme was
at the time ceased to be employed in local government employment reckonable
only of the purpose of calculating the amount of any pension payable to or
in respect of him or only for the purpose of determining whether he was entitled
to any pension shall be reckoned only for the corresponding like purpose under
the Teachers' Regulations.
20 

(1) A person to whom
this Part applies may elect to continue to pay voluntary contributions of
any category being paid by him immediately before ceasing to be employed in
local government employment.
(2) If a person elects
as aforesaid and—
(a) within three
months of becoming employed in teaching service, or within such longer period
as the Secretary of State may in any particular case allow, pays to the Secretary
of State a sum equal to the aggregate of any sum paid to him on or after ceasing
to be employed in local government employment by way of return of voluntary
contributions of any category he has elected to continue to pay, any interest
added thereto and any amount deducted therefrom in respect of liability to
income tax arising by reason of the payment; and
(b) thereafter
pays to the Secretary of State any amounts outstanding in respect of voluntary
contributions of any category he has elected to continue to pay at the times
at which they would have been payable if he remained in local government employment
his teaching service shall be affected in the manner prescribed
by the following provisions of this rule.
(3) In respect of
voluntary contributions paid in respect of added years, those years shall
be reckoned as reckonable service.
(4) In respect of
voluntary contributions paid otherwise than in respect of added years, the
service in respect of which they are paid shall be reckoned for the purposes
of the Teachers' Regulations in the manner in which it would under rule 19 have been so reckoned
if the payment of the contributions had been completed immediately before
the person ceased to be employed in local government employment.
(5) The provisions
of paragraphs (5)(b), (6), (7), (8) and (12) of regulation 32
and of regulation 38
of the Teachers' Regulations shall apply to voluntary contributions payable
under this rule as if they were additional contributions payable in respect
of previous employment within the meaning of those Regulations.
(6) If a person does
not elect as aforesaid or if voluntary contributions are repaid to him under regulation 38 of the Teachers'
Regulations, as applied by this rule, the period in respect of which such
contributions were paid shall be reckoned for the purposes of the Teachers'
Regulations only to the extent, if any, to which it would have been so reckoned
if no such payments or contributions had been made in respect thereof.
21 
For the purposes of regulation 41(1)(a)(ii)
of the Teachers' Regulations the date on which a person to whom this Part
applies entered local government employment shall be deemed to be a date on
which he became employed in teaching service.
22 

(1) Where a person
to whom this Part applies ceases to be employed in teaching service or dies,
then, in computing the sum to which he or his personal representatives shall
be entitled under the Teachers' Regulations, there shall be included a sum
in respect of contributions paid by him in respect of service which by virtue
of these Rules is reckoned as reckonable service and, in the case of a person
who has elected in pursuance of rule 20
to continue paying voluntary contributions, in respect also of voluntary contributions
paid by him before becoming employed in teaching service which have either
not been returned to him or, if returned, have been paid to the Secretary
of State under rule 20
and have not subsequently been again returned.
(2) In computing
the amount of the sum so included for the purposes of this rule compound interest
shall be calculated—
(a) as respects
the period ending immediately before the date on which the person became employed
in teaching service, in the manner in which such interest, if any, would have
been calculated if the occasion for making the calculation had occurred immediately
before that date; and
(b) as respects
the period beginning with that date, in accordance with the provisions of Part IV of the Teachers' Regulations.

23 
Subject as in Part II
provided, no payment of any pension shall be made under the Acts of 1937 to
1953, the Benefits Regulations or a local Act scheme to any person or his
personal representatives in respect of any local government employment which
is reckoned as reckonable service under this Part.
24 

(1) In relation to
a person to whom this Part applies—
(a) the following
paragraphs of Schedule 5
to the Teachers' Regulations, that is to say—
 paragraph 2
(which provides for the reduction of contributions),
 paragraph 4
(which provides for the reduction of pensions by fixed annual amounts specified
therein), and
 paragraph 5
(which provides for the reduction of pensions by annual amounts ascertained
by reference to a table and age at a given date)shall not apply if, on the date on which he ceased to be employed
in local government employment, the contributions payable by him as a contributory
employee or local Act contributor were not subject to reduction by virtue
of the Local Government Modification Regulations;
(b) paragraphs
2 and 4 of the said Schedule 5 shall apply if any pension payable to him under
the Acts of 1937 to 1953 or a local Act scheme would, apart from the National Insurance (Modification of Local Government Superannuation
Schemes) No. 2 (Scotland) Regulations 1961,
have been subject to reduction by virtue of paragraph 2(3) of the Third Schedule
 to the Benefits Regulations; and
(c) paragraphs
2 and 5 of the said Schedule 5 shall apply if any pension payable to him under
the Acts of 1937 to 1953 or a local Act scheme would, apart from the National Insurance (Modification of Local Government Superannuation
Schemes) No. 2 (Scotland) Regulations 1961
have been subject to reduction by virtue of paragraph 2(2) of the Third Schedule
 to the Benefits Regulations.
(2) Where, by virtue
of paragraph (1)(c) above, paragraph 5 of Schedule 5 to the
Teachers' Regulations applies to a person the date of modification for the
purposes of the latter paragraph shall be the date which was in relation to
him the material date for the purposes of the Third Schedule
to the Benefits Regulations.
25 
All sums received by the Secretary of State in relation to a person
to whom this Part applies whether by way of transfer value or otherwise shall
be paid into the Exchequer.
Given under the seal of the Secretary of State for Scotland on
18th June 1968.
William Ross
Secretary of State for Scotland
Given under the Official Seal of the Secretary of State for Education
and Science on 19th June 1968.
Edward Short
Secretary of State for Education and Science
We concur
J. McCann
Harry Gourlay
Two of the Lords Commissioners of Her Majesty's Treasury
25th July 1968