STATUTORY INSTRUMENTS

1998 No. 366 (S.14)

PENSIONS

The Local Government Pension Scheme (Scotland) Regulations 1998

  Made 20th February 1998  
  Laid before Parliament 10th March 1998  
  Coming into force 1st April 1998  


ARRANGEMENT OF REGULATIONS


PART I

PRELIMINARY PROVISIONS
1. Citation and commencement.
2. Interpretation.

PART II

PRIMARY PROVISIONS

CHAPTER I

MEMBERSHIP
Eligibility for active membership
3. General eligibility for membership: employees of Scheme employers etc.
4. Agreements to enable employees of non-Scheme employers to be members ("admission agreements").
4A. Employees of non-Scheme employers: transferee admission bodies (SI2005/293)
4B. Requirements for admission agreements (SI2005/293)
5. Further restrictions on eligibility.
Joining and leaving the Scheme
6. Joining the Scheme.
7. Leaving the Scheme.

CHAPTER II

COUNTING MEMBERSHIP FOR THE SCHEME
8. Periods of membership: "total membership".
9. Excluded membership.
10. Length of period of membership: calculation of benefit
10A. High earners (SI2006/468)

CHAPTER III

CONTRIBUTIONS
11. Members' contributions.
12. Meaning of "pay".
13. Members with lower rate rights.
14. Employer's discretion to reduce members' contribution rate. (SI2006/468)
15. Inland Revenue limits on contributions. (SI2006/468)
16. Obligatory contributions during absences.
17. Optional contributions during absences.

CHAPTER IV

BENEFITS
Preliminary
18. General qualification for benefits.
18A. Limit on total amount of benefits (SI2006/468)
18B. Deduction of tax (SI2006/468)
19. Calculations.
19A. Pension debit member (SSI 2001/23)
20. Final pay.
21. Other final pay periods.
22. Permanent reductions in pay: certificates of protection of pension benefits.
23. Revenue limits. (SI2006/468)
Retirement benefits
24. Normal retirement.
24A. Retirement after age 65
25. Redundancy etc.
26. Ill-health.
27. Amounts of ill-health pension and grant.
28. Re-employed pensioners.
29. Further provisions about elections under regulation 28. (SI2005/293)
30. Other early leavers: deferred retirement benefits and elections for early payment.
31A. Concurrent employments (SI2005/293)
31. Re-employed and rejoining deferred members.
32. Surrenders of pension. (SI2006/468)
33. No double entitlement.
34. Requirements as to time of payment.
35. Guaranteed minimum pensions etc.
36. Revaluation of guaranteed minimum.
Death grants
37. Death grants.
38. Reduction of death grants: re-employed pensioners. (SI2005/293)

Surviving spouses' pensions Surviving spouses' or civil partners' pensions (SI2005/554)

39. Surviving spouse's or civil partner's short-term pension. (SI2005/554)
40. Surviving spouse's or civil partner's long-term pension. (SI2005/554)
41. Reduction of some surviving spouses' or civil partners' pensions. (SI2005/554)
42. Surviving spouse's or civil partner's guaranteed minimum pension. (SI2005/554)
Children's pensions
43. Meaning of "eligible child".
44. Children's short-term pensions.
45. Children's long-term pensions.
46. Discretion as to payment of children's pensions.
47. Dependants of re-employed pensioners. (SI2005/293)
Commutation
48. Commutation: small pensions.
49. Commutation: exceptional ill-health.

PART III

OPTIONAL ADDITIONAL BENEFITS

CHAPTER I

PRELIMINARY
50. Scope of Part III: limits on benefits.

CHAPTER II

INCREASE OF MEMBERSHIP BY EMPLOYING AUTHORITY
51. Power of employing authority to increase total membership of members leaving employment at or after 50.
52. Power of employing authority to increase total membership of new members. (SI2005/293)
53. Effect of increases under this Chapter for older members. (SI2006/514)

CHAPTER III

MEMBERS' OPTIONS TO PURCHASE ADDED YEARS
Purchase of added years
54. Payments to increase total membership.
55. Part-time employees.
Conversions between lump sums and pensions
56. Effect of increases under this Chapter for older members. (SI2006/514)
57. Election for pension in lieu of retirement grant. (SI2006/514)
58. Election for lump sum in lieu of pension. (SI2006/468)

CHAPTER IV

ADDITIONAL VOLUNTARY CONTRIBUTIONS
Members only AVC schemes
59. Elections to pay AVCs.
60. Payment of AVCs.
61. Functions of employing and administering authorities.
62. Death benefits.
63. Retirement benefits.
64. Changes of employment in which membership is continued.
65. Elections as to use of accumulated value of AVCs.
Shared cost schemes (SCAVCs)
66. Establishment of shared cost AVC schemes (SCAVCs).
67. Applications to pay SCAVCs.
68. Functions of employing and administering authorities.
69. Application and investment of SCAVCs.
70. Changes of employment in which membership is continued.
71. Termination.

PART IV

ADMINISTRATION

CHAPTER I

PENSION FUNDS AND EMPLOYERS' PAYMENTS
Pension funds
72. The pension funds.
73. Appropriate funds.
74. Admission agreement funds.
75. Accounts and audit.
75A. Funding strategy statement (SI2005/293)
76. Actuarial valuations and certificates.
77. Special circumstances where actuarial valuations and certificates must be obtained.
Employers' liability to make payments
78. Employer's contributions.
79. Employer's further payments.
80. Payments by employing authorities to appropriate administering authorities.
Interest
81. Interest.

CHAPTER II

MEMBERS' CONTRIBUTIONS
82. Discontinuance of additional contributions.
83. Separate treatment of AVCs and SCAVCs from other contributions.
84. Over-provision: calculation and return of surplus AVC and SCAVC funds. (SI2006/468)
85. Cost of calculations for transfer of AVCs or SCAVCs into the Scheme where no transfer is requested.
86. Rights to return of contributions.
87. Exclusion of rights to return of contributions.
88. Deduction and recovery of member's contributions.

CHAPTER III

PAYMENT OF BENEFITS ETC.
89. Pension increases and cash equivalents under the Pension Schemes Act 1993.
90. Pension increases under the Pensions (Increase) Acts.
91. Contributions equivalent premiums.
92. Commencement of pensions.
93. Interest on late payment of certain benefits.
94. Payments due in respect of deceased persons.
95. Non-assignability.

CHAPTER IV

DETERMINATIONS, INFORMATION AND RECORDS
Initial determinations of questions
96. First instance decisions.
97. Notification of decisions under regulation 96.
Resolution of disputes
98. Appointment of persons to resolve disputes.
99. Right to apply for an appointed person to decide a disagreement.
100. Decision by appointed person and notice of it.
101. Reference of disagreement to the Secretary of State.
102. Decisions of the Secretary of State and notice of it.
103. Rights of representation.
104. Appeals by administering authorities.
Information and records etc.
105. Statements of policy concerning exercise of discretionary functions.
105A. Annual benefit statements (SI2005/293)
106. Information to be supplied by employees.
107. Exchange of information by authorities.
108. Provision of information and calculation of restitution payment: mis-sold personal pensions.

CHAPTER V

SPECIAL ADJUSTMENTS
Abatement during new employment
109. Statements of policy concerning abatement of retirement pensions in new employment.
110. Application of abatement policy in individual cases.
Misconduct
111. Forfeiture of pension rights after conviction of employment-related offences.
112. Interim payments directions.
113. Recovery or retention where former member has misconduct obligation.
114. Protection of guaranteed minimum pension rights.
115. Transfer of sums from the pension fund to compensate for former member's misconduct.

CHAPTER VI

TRANSFERS
Transfers out
116. Application of Chapter IV of Part IV of the Pension Schemes Act 1993.
117. Rights to payment out of fund authority's pension fund.
118. Contracting-out requirements affecting transfers out.
Bulk transfer arrangements
119. Bulk transfers (transfers of undertakings) etc.
120. Calculation of amount of transfer payment under regulation 119.
Transfers in
121. Inward transfers of pension rights.
122. Right to count credited period.
123. Rights as to service not matched by credited period.
124. Credited periods for transferring members with mis-sold pension rights.
Community scheme transferees
125. Community scheme transferees.
Payments between funds and authorities
126. Changes of fund.
127. Liability for combined benefits. (SI2005/293)

PART V

SPECIAL CASES

CHAPTER I

ELIGIBILITY
128. Transport employees.
129. Further cases of eligibility: non-employees.
130. Separate employments etc.

CHAPTER II

MODIFICATIONS FOR CERTAIN EMPLOYEES ETC.
131. Schedule 6 (former contributors) shall have effect.
132. Employees of Scottish Homes and former employees of Scottish Special Housing Association.
133. Transfers under the Local Government etc. (Scotland) Act 1994 etc: early leavers.
134. Local government reorganisation.
135. Persons transferred under an order under section 34 of the Local Government (Scotland) Act 1975 or in consequence of section 1 of the Education (Mentally Handicapped Children) (Scotland) Act 1974.
Conversion of Discretionary Payments Regulations periods into membership
136. Conversion of periods credited under Discretionary Payments Regulations etc. into membership. (SI2005/293)
Rights under section 12 of the Superannuation Act 1972
137. Rights under section 12 of the Superannuation Act 1972.

PARTVI

PENSIONS SHARING

CHAPTER I

PRELIMINARY PROVISIONS

 

138.

Interpretation of Part VI

CHAPTER II

SHARING OF RIGHTS

139.

Pension sharing mechanism in the Scheme
140. Pension sharing order activates pension sharing creating pension debits and credits
141. Calculation of "appropriate amount"
142. Pension debits and reduction of benefit
143. Effect of pension sharing on protected rights and guaranteed minimum pension

 

CHAPTER III


MODE OF DISCHARGE AND "IMPLEMENTATION PERIOD"

 

144.

Discharge of pension credit liability by conferring "appropriate rights" or making transfer payment to another scheme
145. Qualifying arrangements
146. Disqualification as destination for pension credit
147. Adjustment to the amount of the pension credit - payments made without knowledge of the pension debit
148. "Implementation period" for discharge of pension credit
149. Failure to discharge liability in respect of pension credit within the implementation period and death of ex spouse or ex civil partner within period (SI2005/554)

CHAPTER IV


APPROPRIATE RIGHTS/PENSION CREDIT BENEFITS

 

150.

"Appropriate Rights"/"Pension credit benefits" under the Scheme
151. Additional Voluntary Contributions ("AVCs")
152. Additional contributions and additional periods
153. Commutation: small pensions
154. Commutation: exceptional ill health
155. Pension Transfers

 

CHAPTER V


MISCELLANEOUS

 

156.

Charges in respect of pension sharing costs
157. Excluded membership
158. Appropriate fund and appropriate administering authority
159. Assignment
160. Application of Part VI to deferred members and pensioner members under the 1987 Regulations

 

SCHEDULES

 


  Schedule 1 Interpretation.
  Schedule 1A Interpretation
  Schedule 2 Scheme employers.
  Schedule 2A Matters to be included in an Admission Agreement in certain cases.
  Schedule 3 Excluded membership.
  Schedule 4 Revenue restrictions. (SI2006/468) (SI2006/514)
  Schedule 5 Appropriate funds.
  Schedule 6 Former contributors.

  Explanatory Note