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.
17A Additional contributions - Civil Partners

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.
31. Re-employed and rejoining deferred members.
31A. Concurrent employments (SI2005/293)
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.
133A. Members of local authorities - general
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.
  Schedule 7 Councillor Members (SI2007/71)
  Schedule 8 Additional contributions for Civil Partners (2007/514)

  Schedule 6 Explanatory Note