Statutory Instrument 1998 No. 192 (S. 8)
The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 - continued

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EXPLANATORY NOTE
(This note is not part of the Regulations)

  

 These Regulations consolidate, with amendments, the provisions of the Local Government (Compensation for Premature Retirement) (Scotland) Regulations 1979, as amended, Part II of the Local Government (Compensation for Redundancy and Premature Retirement) (Scotland) Regulations 1984 and the Local Government (Compensation for Redundancy) (Scotland) Regulations 1994. They also revoke Parts K and L of the Local Government Superannuation (Scotland) Regulations 1987 dealing with injury allowances and gratuities. Parts V and VI of these Regulations replace them. As a result, these Regulations contain all the provisions relating to discretionary payments and payments of injury benefits by employers to persons engaged in local government employment other than teachers and those engaged in the police and fire services (excluding payments under the Local Government (Compensation for Redundancy or Premature Retirement on Reorganisation) (Scotland) Regulations 1995).

    Part II enables Local Government Superannuation Scheme employers (LGSS employer LGPS employer (SI1998/364)s defined in regulation 2(1)) to pay to employees who cease to hold employment and become entitled to a statutory redundancy payment compensation to make up the difference between the statutory redundancy payment and the amount which that payment would have been if based on his full weekly pay, without applying the limits imposed by statute.

    Part III enables LGSS employer LGPS employer (SI1998/364)s to pay compensation for premature retirement. This is available to employees over 50 who cease work by reason of redundancy, or in the interests of the efficient exercise of the employers' functions or by reason of being a holder of joint employment where the other holder ceased work, and who fulfil other specified conditions. The employer has power to credit them with an additional period of service, and benefits to the former employee or his surviving spouse and children become payable based on that service.

    The main changes in Part III compared to the previous Regulations are that:-

    (1)  Part III now applies to non-pensionable as well as pensionable employee LGPS members (SI1998/364);

    (2)  holders of a joint appointment whose appointment has been terminated because the other ceased to hold his appointment may now be considered for a discretionary award under Part III (regulation 6(1)(a)(iii));

    (3)  in the case of employees who become eligible for compensation for the first time under these Regulations by virtue of these changes, where the date of premature retirement is before the Regulations come into force, the employing authority may credit them with an additional period of service within six months of the Regulations coming into force (regulation 8(2)(a)), instead of the usual limit of six months from the date of premature retirement;

    (4)  all the service of a part-time employee can be taken into account when considering an award of compensatory added years (regulation 7(3));

    (5)  spouses of post retirement marriages of employees awarded compensatory added years may receive part of the annual compensation (regulation 20(3));

    (6)  where a child who is eligible for long-term compensation has attained the age of 17 and is receiving remuneration for full-time training for a trade, the indexed training rate has been uprated (regulation 25(6));

    (7)  interest is to be paid on compensation paid late in certain circumstances (regulation 30);

    (8)  the appropriate authority (the administering authority or, where a person is not a pensionable employee LGPS member (SI1998/364), the authority which would otherwise have been the administering authority) may pay compensation on behalf of the employing authority and recover it from them. In the case of the lump sum compensation payable under regulation 9, it must not be paid from the superannuation fund. In the case of any other compensation paid on behalf of the employing authority, it may be paid from the superannuation fund but the appropriate authority must recover the amount from the employing authority within two months of payment (regulation 31(2) to (5)).

    Regulations 1(2) and 33 provide that where a person is credited with an additional period of service in respect of his redundancy or premature retirement at a material date before these Regulations come into force, the provisions of the Regulations for payment of benefits in respect of that service will have effect from the material date. This is subject to the qualification that regulation 20(3), which introduces compensation for a surviving spouse in a post-retirement marriage, shall not have effect from a date earlier than 25th July 1996 (the date when the equivalent provision came into force in England and Wales). Retrospection is authorised by section 24(3) of the Superannuation Act 1972. No beneficiary is placed in a worse position by such retrospection.

    Part IV enables LGSS employer LGPS employers (SI1998/364) to pay compensation to employees who cease to be employed by reason of redundancy or in the interests of the efficient exercise of the employers' functions, in cases where compensation under Part III is not available. The employees concerned must be eligible to be Local Government Superannuation Scheme members and fulfil other specified conditions.

    Part V provides for payment of injury benefits by LGSS employer LGPS employers (SI1998/364).

    Part VI enables LGSS employer LGPS employers (SI1998/364) to pay certain gratuities to former employees or their spouses or children in respect of non-pensionable service.