The Colleges of Education (Compensation) Regulations 1975 - Otherwise known as “Crombie”
A quick guide to the provisions of “Crombie”
Nothing said in this document can override the regulations referred to above.
In 1975 the Secretary of State directed that Colleges of Education were to be closed. Staff who worked in those establishments and were made redundant were compensated in accordance with the “Crombie” Regulations. Where the establishment was maintained by a Local Education Authority, the Local Education Authority determined to be the compensating authority. In all other case the compensating authority was the Secretary of State, these payments are administered on behalf of the Secretary of State by Teachers’ Pensions. An amendment was made to the Regulations in 1981 which meant that no further claims could be made for “Crombie” compensation with effect from 1 September 1981. All claims therefore for “Crombie” compensation must have been made between 1 August 1975 and 31 August 1981.
Resettlement Compensation
The Regulations provided that where a claimant had not been offered comparable employment to that which had been lost they could receive a lump sum payment known as resettlement compensation.
Long-term Compensation
A claimant could also receive up to two thirds of the resources he would have had had he not suffered a loss of employment or a reduction of his income. This is known as long-term compensation. There was an assumption that a person would mitigate their loss in the 2 years following redundancy and then no further long term compensation would be payable. Regular reviews were undertaken to ensure that claimants were trying to mitigate their loss in the first 2 years. If they had been unable to secure employment, or employment on the same salary they were on at the time of redundancy, the long-term compensation would continue until retirement age, however that;
a. the compensating authority can review the level of payments if the person is working in the public sector; and
b. the person himself can ask for a review of his compensation if he loses his further employment and he considers he is suffering hardship as a result.
When a person in receipt of “Crombie” long-term compensation claims any pension entitlement which is based on service prior to their redundancy, a reduction of their long-term compensation will be calculated. A reduction may also occur in respect of state retirement benefits.
Retirement Compensation
At age 65 a person who was in pensionable employment prior to their redundancy and who was 40 or over at the time of redundancy, may be entitled to compensation for their loss of pension expectations. This may be subject to reduction by any pension benefits accrued by employment after redundancy.
A person who was in non-pensionable employment prior to their redundancy and attains normal retiring age (60 for a woman and 65 for a man) may continue to receive half of their long-term compensation if, the compensating authority is satisfied that the person would have continued in employment beyond their normal retiring age had they not been made redundant.
Death Benefits
There is no death benefits payable in respect of a person who was in non-pensionable employment prior to their redundancy.
Compensation for death benefits may be payable in respect of a person who was in pensionable employment prior to redundancy. If the pension scheme would have paid a death grant, compensation may be payable if a person dies whilst in receipt of long-term compensation.
There is no death grant payable if a person dies whilst in receipt of retirement compensation.
Family benefits
There is no family benefits payable in respect of a person who was in non-pensionable employment prior to their redundancy.
Compensation for family benefits may be payable in respect of a person who was in pensionable employment prior to their redundancy. If the pension scheme would have paid family benefits, compensation may be payable whether the person is in receipt of long-term compensation or retirement compensation. Any conditions in the regulations of the pension scheme which apply to family benefits payments will also apply to “Crombie” compensation payments.
The “Crombie” Regulations specify how to calculate any compensation payments which become payable.
The Regulations are a priced document and a printed version may be obtained from The Stationery Office Bookshops or any other good bookseller. The full title is “Statutory Instruments, 1975 No. 1092, Education, England and Wales, The Colleges of Education (Compensation) Regulations 1975.
Nothing said in this document can override the regulations referred to above.