PART VII (SSI 2009/186)
INCREASED PENSION ENTITLEMENT
“the 1971 Act” means the Pensions (Increase) Act 1971;
“administering authority” means a body required to maintain a pension fund under these Regulations or the Local Government Pension Scheme (Administration)(Scotland)Regulations 2008;
“appropriate fund”, in relation to a person to whom these regulations apply, has the meaning given in regulation 73 (appropriate
funds);
“basic rate” has the meaning given by section 17(1) of the 1971 Act;
“the existing Orders” means the Pensions Increase(Review) Order 1979, the Pensions Increase(Review) Order 1980, the Pensions Increase(Review) Order 1981, the Pensions Increase(Review) Order 1982, the Pensions Increase(Review) Order 1983, the Pensions Increase(Review) Order 1984, the Pensions Increase(Review) Order 1985, the Pensions Increase(Review) Order 1986, the Pensions Increase(Review) Order 1987, the Pensions Increase(Review) Order 1988, the Pensions Increase (Review) Order 1989, the Pensions Increase(Review) Order 1990, the Pensions Increase(Review) Order 1991, the Pensions Increase(Review) Order 1992, the Pensions Increase(Review) Order 1993, the Pensions Increase(Review) Order 1994, the Pensions Increase(Review) Order 1995, the Pensions Increase(Review) Order 1996, the Pensions Increase(Review) Order 1997, the Pensions Increase(Review) Order 1998, the Pensions Increase(Review) Order 1999, the Pensions Increase(Review) Order 2000, the Pensions Increase(Review) Order 2001, the Pensions Increase(Review) Order 2002, the Pensions Increase(Review) Order 2003, the Pensions Increase(Review) Order 2004, the Pensions Increase(Review) Order 2005, the Pensions Increase(Review) Order 2006, the Pensions Increase(Review) Order 2007, the Pensions Increase (Review) Order 2008 and the Pensions Increase(Review) Order 2009 and “existing Order” shall be construed accordingly;
“guaranteed minimum pension” has the same meaning as in section 181(1) of the Pension Schemes Act 1993;
“relevant administering authority” means the body maintaining the appropriate fund;
“the scheme” means the occupational pension scheme constituted by the 1987 Regulations or these Regulations; and
“tax year” means a period of 12 months beginning on 6th April and ending on the following 5th April.
Application of this Part
162. This part applies to a person who–
(a) was entitled to a pension under the scheme on 5th April 2009;
(b) was entitled to a guaranteed minimum pension on that date; and
(c) has in any tax year since entitlement to the guaranteed minimum pension commenced received a GMP-related payment.
GMP-related payment
163.—(1) Where, in any tax year, the relevant administering authority has–
(a) increased the annual rate of an official pension in accordance with the existing Order relevant to that tax year; but
(b) the amount by reference to which that increase is calculated is not reduced by the GMP-related reduction,
the GMP-related payment for that tax year is the amount equal to the GMP-related reduction in that tax year.
(2) The GMP-related reduction for any tax year is the reduction in the amount by reference to which any increase in the rate of an official pension is calculated by the amount calculated in accordance with–
(a) the existing Order for that tax year;
(b) section 59(5) and (5ZA) of the Social Security Pensions Act 1975, as modified by section 59A of that Act, as these sections have effect in relation to that tax year; and
(c) any direction made under section 59A of that Act which has effect in relation to that tax year.
Authorisation of payment of GMP-related payments
164.—(1) The relevant administering authority may pay GMP-related payments to–
(a) a person to whom this Part applies; and
(b) a deceased entitled member.
(2) Where a relevant administering authority has paid GMP-related payments before 6th April 2009, the authority may not, after 6th April 2009, recover those payments.
(3) In this regulation, a deceased entitled member is a person who–
(a) at the date of his death was entitled to a pension under the scheme;
(b) at that date was entitled to a guaranteed minimum pension; and
(c) has in any tax year since entitlement to the guaranteed minimum pension commenced received a GMP-related payment.
Increased Pension Entitlement
165.—(1) Subject to paragraph (3) and (4), a person to whom this Part applies is entitled to an Increased Pension Entitlement calculated in accordance with paragraph (2).
(2) The Increased Pension Entitlement is an amount equal to the basic rate of a pension which, if that pension had been increased by the amount of any increase under section 1 of the 1971 Act and the existing Orders, would result in an annual amount being paid to the person in relation to the tax year 2009–10 which equals the Protected Sum.
(3) Where the person’s pension is terminated under the scheme, the person is not entitled to receive any payment of an amount of the Increased Pension Entitlement in respect of any period after the date on which the pension is terminated.
(4) Where the person’s pension, or any proportion of the pension, is forfeited, either permanently or temporarily, the same proportion of the person’s Increased Pension Entitlement is forfeited for the same period of time.
(5) For the purposes of paragraph (2) of this regulation, “pension” has the meaning given by section 8 of the 1971 Act and begins at the time stated in section 8(2) of that Act.
(6) In this regulation–
(a) “Protected Sum” is the amount equal to the annual amount of the GMP-related payment for the tax year 2009–10; and
(b) the annual amount of the GMP-related payment for the tax year 2009–10 is the amount equal to the GMP-related payment that the relevant administering authority would have paid to the person in the tax year 2009–10 if that authority had, in relation to that complete tax year, applied the existing Orders as if the person was not entitled to a guaranteed minimum pension.
Increased Pension Entitlement – further provision
166.—(1) An Increased Pension Entitlement is payable by the relevant administering authority and shall be paid out of the appropriate fund.
(2) An Increased Pension Entitlement is payable for life and shall be discharged by payments at such reasonable intervals as the administering authority may, in their discretion, determine except that payment on account of an Increased Pension Entitlement may be delayed, in whole or in part, pending the determination of any question as to the liability of the administering authority
in respect thereof, including any question as to the continuance of that liability.
(3) Neither the Increased Pension Entitlement nor any portion of that entitlement may be commuted for a lump sum.
[Editorial Note: Regulation 6 of SSI 2009/186 inserted two regulations 165 into the LGPS (Scotland) Regulations 1998. The second regulation 165 has been numbered 166.]