General eligibility for membership: employees of Scheme employers etc.

     3.  - (1) A person may be an active member only if this regulation or regulation 4, regulation 4A (SI2005/293) or Chapter I of Part V enables him to be one and he is not prevented by regulation 5.

    (2) A person may be a member if he is employed by a Scheme employer.

    (3) A Scheme employer is a body which is listed in Schedule 2.

Employees of non-Scheme employers: community admission bodies (SI2005/293)
     4.  - (1) Subject to the requirements of this regulation and regulation 4B, an administering authority may make an admission agreement with any community admission body.

    (2) Community admission bodies are-

(a) a body which provides a public service in the United Kingdom otherwise than for the purpose of gain and which either-


(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest, whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise, or

(ii) is approved by the Scottish Ministers for the purposes of admission to the Scheme;



(b) a body to the funds of which any Scheme employer contributes;

(c) a body representative-


(i) of local authorities;

(ii) of local authorities and officers of local authorities;

(iii) of officers of local authorities which is formed for the purpose of consultation as to the common interests of local authorities and the discussion of matters relating to local government; or

(iv) of Scheme employers; and



(d) a voluntary organisation engaged in the provision of services under-


(i) Part III of the National Health Service (Scotland) Act 1978;

(ii) Part III of the National Assistance Act 1948;

(iii) the Disabled Persons (Employment) Act 1958;

(iv) the Mental Health (Scotland) Act 1984 or the Mental Health (Care and Treatment) (Scotland) Act 2003; or

(v) section 14 of the Social Work (Scotland) Act 1968 (which places a duty on local authorities to provide domiciliary services and laundry facilities to certain households).

(3) Approval under paragraph (2)(a)(ii) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw approval at any time if such conditions are not met.

(4) Where, at the date that the admission agreement is made with a body within paragraph (2)(b), the contributions paid to the body by any one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, it must be a term of the admission agreement that the Scheme employer who provides funding (and, if more than one, all of them) guarantees the liability of the body to pay all amounts due from it under the Regulations.

(SI2005/293)

Employees of non-Scheme employers: transferee admission bodies (SI2005/293)
     4A.  - (1) Subject to the requirements of this regulation and regulation 4B, an administering authority may make an admission agreement with any transferee admission body.

    (2) A transferee admission body is a body, other than a community admission body, that is providing, or will provide-

(a) a service or assets in connection with the exercise of a function of a Scheme employer as a result of-


(i) the transfer of the service or assets by means of a contract or other arrangement; or

(ii) guidance provided under section 2 of the Local Government in Scotland Act 2003 (requiring a local authority to have regard to guidance provided by the Scottish Ministers on performance of its duties) or a statement of findings under section 3 of that Act (which allows the Accounts Commission for Scotland to take certain actions following a report on a local authority by the Controller of Audit); or



(b) a public service and which is approved by the Scottish Ministers for the purposes of admission to the Scheme.

    (3) Only those employees of the transferee admission body who are employed in connection with the provision of the service or assets referred to in paragraph (2) are eligible to be members of the Scheme.

    (4) In the case of an admission agreement with a transferee admission body under paragraph (2)(a) the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.

    (5) Approval under paragraph (2)(b) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw approval at any time if such conditions are not met.

    (6) An admission agreement with a transferee admission body shall require that-

(a) in the case of a body under-


(i) paragraph (2)(a), the Scheme employer; or

(ii) paragraph (2)(b), the transferee admission body, to the satisfaction of the administering authority,

shall carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee admission body; and

(b) that where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.

    (7) The indemnity or bond must be with-

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits or to effect and carry out contracts of general insurance;

(b) an EEA firm of the kind mentioned in paragraph (5)(b) and (d) of Schedule 3 to that Act, which has permission under paragraph (15) of that Schedule (as a result of qualifying for authorisation under paragraph (12) of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or

(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.

    (8) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 2A.

    (9) Where a transferee admission body undertakes to meet the relevant requirements of this regulation, and-

(a) in the case of a body under paragraph (2)(a), the Scheme employer undertakes to meet the relevant requirements of this regulation; or

(b) in the case of a body under paragraph (2)(b), the Scottish Ministers approve the body for admission to the Scheme and the conditions, if any, to which the approval is subject have been met,

an administering authority must admit to the Scheme the eligible employees of the transferee admission body specified by the body and where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

(SI2005/293)

Requirements for admission agreements (SI2005/293)
     4B.  - (1) In regulations 4 and 4A an admission agreement is an agreement that all or any specified class of the admission body's employees may be members.

    (2) An admission agreement must terminate if the admission body ceases to be such a body and may make such other provision about its termination as the parties consider appropriate.

    (3) When an administering authority makes an admission agreement, it must promptly inform the Scottish Ministers of the date the agreement takes effect, the admission body's name and, in the case of an admission agreement with a transferee admission body under paragraph 4A(2)(a), the name of the relevant Scheme employer.

    (4) An administering authority must notify the Commissioners of the Inland Revenue of the admission of an admission body within the time prescribed in regulations made under section 605 of the Taxes Act 1988 (which provides for regulations to be made regarding the provision of information) and provide such information as may be so prescribed. (SI2006/468)

    (5) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions or provide services or assets in areas that overlap or adjoin each other.

    (6) Any question which may arise between the parties to an admission agreement relating to the construction of the agreement or the rights and obligations under that agreement shall be referred in writing for determination to the Scottish Ministers.

    (7) An employee of an admission body may not be a member if he is a member of another occupational pension scheme (within the meaning of section 1 of the Pension Schemes Act 1993) other than where the accrual of benefits under the occupational pension scheme would not affect approval of the Scheme as an approved scheme.

    (8) These Regulations apply to employment with an admission body in which the employee is an active member in the same way as if the admission body were a Scheme employer.

(SI2005/293)

Agreements to enable employees of non-Scheme employers to be members ("admission agreements")
     4.  - (SI2000/199) (1) An administering authority may make an admission agreement with any admission body.

    (2) An admission agreement is an agreement that all or any specified class of the admission body's employees may be members.

    (3) These are admission bodies-

(a) a body which provides a public service in the United Kingdom otherwise than for the purposes of gain and which either-


(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest, whether because the operations of the admission body are dependent on the operations of the Scheme employer or otherwise; or

(ii) is approved by the Scottish Ministers for the purpose of admission to the Scheme;



(b) a body to the funds of which any Scheme employer contributes;

(c) a body representative-



(i) of local authorities;

(ii) of local authorities and officers of local authorities;

(iii) of officers of local authorities; or

(iv) of Scheme employers;



(d) a voluntary organisation engaged in the provision of services under-



(i) Part III of the National Health Service (Scotland) Act 1978;

(ii) Part III of the National Assistance Act 1948;

(iii) the Disabled Persons (Employment) Act 1958;

(iv) the Mental Health (Scotland) Act 1984; or

(v) section 14 of the Social Work (Scotland) Act 1968;



(e) a body which exercises the function referred to in a relevant arrangement.

    (4) Approval under paragraph (3)(a)(ii) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw approval at any time if such conditions are not met.

    (5) It must be a term of an admission agreement made with a non-associated admission body within paragraph (3)(b) that the Scheme employer who provides funding (and, if more than one, all of them) guarantees the liability of the admission body to pay all amounts due from it under the Regulations.

    (6) In the case of an admission agreement with a transferee admission body-

(a) the transferor Scheme employer, if not also the administering authority, must be a party to the admission agreement;

(b) only those employees of the transferee admission body who are employed in connection with the function referred to in a relevant arrangement are eligible to be members of the Scheme;

(c) it shall require an indemnity or bond in an approved form and with an authorised insurer or a relevant institution; and

(d) provision shall be made for the matters set out in Schedule 2A.

    (7) Where a transferor Scheme employer and a transferee admission body undertake to meet the requirements of paragraph (6), an administering authority must admit to the Scheme the eligible employees of the transferee admission body and, where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

    (8) An admission agreement must terminate if the admission body ceases to be such a body.

    (9) An admission agreement may make such other provision about its termination as the parties consider appropriate.

    (10) When an administering authority make an admission agreement, they must promptly inform the Scottish Ministers of the date the agreement takes effect, the admission body's name and, in the case of an admission agreement with a transferee admission body, the name of the relevant transferor Scheme employer.

    (11) An administering authority must notify the Commissioners of Inland Revenue of the admission of an admission body within the time prescribed in regulations made under section 605 of the Taxes Act and provide such information as may be so prescribed.

    (12) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions or provide or make available services or assets in areas which overlap or adjoin each other.

    (13) Any question which may arise between the administering authority and any other party to an admission agreement relating to the construction of the agreement or to the rights and obligations under that agreement shall be referred in writing for determination to the Scottish Ministers.

    (14) An employee of an admission body may not be a member if he is a member of another occupational pension scheme (within the meaning of section 1 of the Pension Schemes Act 1993) other than where the accrual of benefits under that pension scheme would not affect approval of the Scheme as an approved scheme.

    (15) These Regulations apply to employment with an admission body in which the employee is an active member in the same way as if the body were a Scheme employer.

    (16) In this regulation, regulation 5 and Schedule 2A (where applicable)-

(a) "authorised insurer" means-


(i) an insurance company authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on general business; or

(ii) an EC company which is lawfully carrying on general business, or providing insurance of an appropriate class within general business, in the United Kingdom,



and expressions used in this definition and the Insurance Companies Act 1982 have the same meaning as in that Act; (SI2001/3649)

(a) "authorised insurer" means -

(i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of general insurance; or

(b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of general insurance,

and the expressions used in this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act. (SI2001/3649)

(b) "indemnity or bond in an approved form" means an indemnity or bond to meet a level of risk exposure arising on premature termination of a relevant arrangement actuarially assessed to the satisfaction of the administering authority and the transferor Scheme employer;

(c) "non-associated admission body" means a body described in-



(i) paragraph (3)(a)(ii); or

(ii) paragraph (3)(b) where, at the date that the admission agreement is made, the total contribution from any one or more Scheme employers to its funds equals less than 50% of funding contributed by third parties;



(d) "relevant arrangement" means a contract or other arrangement made with a transferor Scheme employer for the provision of, or making available of, services or assets, for the purposes of or in connection with the exercise of a function of that transferor Scheme employer;

(e) "relevant institution" means-



(i) an institution authorised under Part I of the Banking Act 1987 (regulation of deposit-taking business);

(ii) a person to whom the restriction on acceptance of deposits in section 3 of that Act does not apply because he is specified in Schedule 2 to that Act (Central banks etc.); or

(iii) a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits,



and "European authorised institution" has the same meaning as in the Banking Co-ordination (Second Council Directive) Regulations 1992; (SI2001/3649)

(e) "relevant institution" means -

(i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 accept deposits;

(ii) a person who is exempt from the general prohibition in respect of accepting deposits as a result of an exemption order made under section 38(1) of that Act;

(iii) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule to accept deposits as a result of satisfying the establishment conditions within the meaning of that Schedule,

and the expressions used in this definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act. (SI2001/3649)

(f) "transferee admission body" means an admission body described in paragraph (3)(e); and

(g) "transferor Scheme employer" means an authority or body which is a Scheme employer.

(SI2000/199) (SI2005/293)

4.  - (1) An administering authority may make an admission agreement with any admission body.

    (2) An admission agreement is an agreement that all or any specified class of the admission body's employees may be members.

    (3) An admission agreement may provide that a period of employment by the admission body before the date of the agreement counts as membership of the Scheme (or does so for some purposes).

    (4) An admission agreement must terminate if the admission body ceases to be such a body.

    (5) An admission agreement may make such other provision about its termination as the parties consider appropriate.

    (6) When an administering authority make an admission agreement, they must immediately inform the Secretary of State of the admission body's name and the date the agreement takes effect.

    (7) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions in areas which overlap or adjoin each other.

    (8) These are admission bodies-

(a) a body which provides a public service in the United Kingdom otherwise than for the purposes of gain;

(b) a body to the funds of which any local authority contribute;

(c) a body to which any grant is made out of money provided by Parliament;

(d) a body representative-


(i) of local authorities, or

(ii) of local authorities and officers of local authorities, or

(iii) of officers of local authorities;



(e) a voluntary organisation engaged in the provision of services under-



(i) Part III of the National Health Service (Scotland) Act 1978;

(ii) Part III of the National Assistance Act 1948;

(iii) the Disabled Persons (Employment) Act 1958;

(iv) the Mental Health (Scotland) Act 1984; or

(v) section 14 of the Social Work (Scotland) Act 1968.

    (9) However, a body falls within paragraph (8)(d)(iii) only if it is formed for the purpose of consultation as to the common interests of local authorities and the discussion of matters relating to local government.

    (10) These Regulations apply to employment with an admission body in which the employee is an active member in the same way as if the body were a Scheme employer. (SI2000/199)

Further restrictions on eligibility
     5.  - (1) Subject to paragraph (1A) (SI2001/460) if a person's employment entitles him to belong to another statutory pension scheme, that employment does not entitle him to be a member, unless that other scheme was made under section 7 of the Superannuation Act 1972.

(1A) Any person specified in paragraph (1B) paragraphs (1B) or (1C) (SI2002/311) below may be a member of the Scheme notwithstanding that he is in service in the Home Civil Service. (SI2001/460)

(1B) Any person who-

(a) was, or was eligible to be, an active member of the Scheme;

(b) was employed by Scottish Homes on 31st October 2001; and

(c) on 1st November 2001 became employed by the Scottish Ministers as a member of staff of the Scottish Administration,

is a person for the purposes of paragraph (1A). (SI2001/460)

(1C) Any person who-

(a) was, or was eligible to be, an active member of the Scheme; and

(b) on 1st April 2002 became employed by Scottish Enterprise or Highlands and Islands Enterprise,

is a person for the purposes of paragraph (1A). (SI2002/311)

(2) A statutory pension scheme is an occupational pension scheme provided by or under an enactment (including a local Act).

(2A) A person who is not eligible for membership of a teachers scheme because of the provisions of regulation B5(5) of the Teachers' Superannuation (Scotland) Regulations 1992 (re-employed teachers) is not entitled to be a member. (SI2000/199)

(3A) A person may not become a member after the day before his 75th birthday. (SI2006/468)

    (3) A person may not become a member after his 65th birthday unless-

(a) his total membership does not exceed his permitted maximum; and

(b) he is a permitted late member. (SI2000/199)

    (4) The permitted maximum for a Class A member is 40 years. (SI2006/468)

    (5) The permitted maximum for a Class B member or a Class C member is the sum of-

(a) his total membership before he attained 60 or, if less, 40 years, and

(b) his total membership since he attained 60,

or, if less, 45 years. (SI2006/468)

    (6) A permitted late member is a person to whom-

(a) a pension which must be the subject of a policy formulated under regulation 110 (statements of policy concerning abatement of retirement pensions in new employment);

(b) an ill-health grant under regulation 26(3) or an ill-health retirement grant under regulation E4 of the 1987 Regulations or regulation E21 of the 1974 Regulations; or

(c) a short service grant under the Benefits Regulations,

has become payable or who is entitled to or has received relevant compensation. (SI2000/199)

    (7) Relevant compensation is compensation which-

(a) is payable under any enactment for loss of employment or loss or reduction of employment benefits attributable to an enactment; and

(b) is liable to be reduced or suspended by reason of the person to whom it is payable entering employment with a Scheme employer, in the same way as it would have been if he had remained eligible to belong to the occupational pension scheme to which he belonged or was eligible to belong immediately before suffering the loss. (SI2000/199)

    (8) If a person has been entitled to an ill-health pension calculated by reference to an enhanced membership period, that period is counted as part of his total membership for paragraphs (3) (4) (SI2000/199) and (5).

    (9) Part-time employment as a member of a fire brigade maintained in pursuance of the Fire Services Act 1947 on terms under which the employee is or may be required to engage in fire-fighting does not entitle the employee to be a member of the Scheme.

(9) A retained or volunteer firefighter employed by a relevant authority within the meaning of section 6 of the Fire (Scotland) Act 2005 on terms under which the retained or volunteer firefighter is or may be required to engage in fire-fighting does not entitle the retained or volunteer firefighter to be a member of the Scheme. (SI2007/514)

(10) A person who is a member and is an employee of a transferee admission body is treated as leaving a local government employment when he ceases to be employed in connection with the function referred to in a relevant arrangement. (SI2000/199) (SI2005/293)

(10) A person who is a member and is an employee of a transferee admission body is treated as leaving a local government employment when he ceases to be employed in connection with the provision of the service or assets under regulation 4A(2) as a result of which employment he became eligible to join the Scheme. (SI2005/293)

(11) A person may be a member of the Scheme notwithstanding that he is entitled to be a member of the National Health Service Superannuation Scheme for Scotland (the "NHS Scheme") if-

(a) his entitlement to be a member of the NHS Scheme is by reason of his employment by an NHS Scheme employing authority as a result of a prescribed arrangement under section 15 of the Community Care and Health (Scotland) Act 2002 (delegation etc. between local authorities and NHS bodies);

(b) he is specified in, or within a class of employees specified in, an admission agreement made between an administering authority and an NHS Scheme employing authority; and

(c) he was an active member of the Scheme immediately before his employment by the NHS Scheme employing authority.

(SI2005/293)

(a) before his employment began; or

(b) if he only became eligible to be a member later, before the date he became eligible.

    (6) Paragraph (5) does not apply to-

(a) casual employees; or

(b) former members who opted to leave the Scheme by a notification under regulation 7.

    (7) An application for membership may be withdrawn before membership begins.

    (8) A former active member may reapply for membership.

    (9) Notwithstanding paragraph (8), a person who has given more than one notification under regulation 7 may reapply again only if-

(a) his employer or future employer consents;

(b) he is beginning a new employment with a new employing authority and he reapplies before he has been employed for three months; or

(c) he is an individual who during any period has been eligible to be a member but has instead made contributions to a personal pension scheme and has suffered loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 or section 150 of the Financial Services and Markets Act 2000 (SI2001/3649) (actions for damages in respect of contravention of rules etc. made under the Act).

Leaving the Scheme
     7.  - (1) A person may leave the Scheme if he wishes and stops being a member if he stops being eligible for membership.

    (2) A person who wishes to leave the Scheme must notify his employer in writing.

    (3) A member who gives such a notification stops being a member from the date the notification specifies.

    (4) However, if a date earlier than the notification or no date is specified, he stops being a member at the end of the payment period during which the notification is given.

    (5) Where notification is given by a person before he has been a member for one month, he must be treated as not having been a member in that period.