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 (
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. LGSS employer LGPS employer (SI1998/364)s
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.