Continuity of rights within regulation 12(1)
     15.  - (1) Regulation 14 applies in relation to a right which ceases to have effect under regulation 12(1)(a) as if-

(a) that right arose under a notice which ceases to have effect by virtue of regulation 11(1), and

(b) the corresponding provision of the 1998 Regulations were regulation 54,

(but see the following provisions).

    (2) If the right arose under regulation D6, D7 or D8 of the 1974 Regulations and immediately before the commencement date the member had the right to make any payments by lump sum payable by instalments, then for regulation 14 the protected rate is the rate at which he was paying instalments immediately before the commencement date, expressed as a percentage of his remuneration at that time.

    (3) Paragraph (1) does not apply in the case of an election made under regulation C8 of the 1987 Regulations.

    (4) Regulation 54(6) of the 1998 Regulations does not apply where regulation 54 applies by virtue of paragraph (1) above, and instead the member's appropriate administering authority must calculate the amounts of the additional contributions by reference to the preferential rate.

    (5) The preferential rate is the rate at which the member was making payments (including payments by instalments of a lump sum) by virtue of regulation C9(2) of the 1987 Regulations immediately before the commencement date, expressed as a percentage of his remuneration at that time.

Temporary right to pay off liabilities under regulation 15 by capital payment
     16.  - (1) A member to whom regulation 14 applies by virtue of regulation 15(1), may make an election to make a capital payment in full satisfaction of his liabilities in respect of any period for which he remains liable to make any payment by virtue of regulation 15(1).

    (2) Such an election may only be made by notice in writing to the member's appropriate administering authority before the end of the period of six months beginning with the commencement date.

    (3) When an administering authority receive such an election they must notify the member of the amount of the capital payment required.

    (4) However, if that capital payment, when aggregated with the member's total contributions (as mentioned in regulation 15(2) of the 1998 Regulations) payable in the tax year in which he makes the election, would exceed the maximum amount so payable by him, such an election is ineffective.

    (5) Where following a payment under such an election any body's liabilities in respect of the member under regulation P13 of the 1987 Regulations continue by virtue of regulation 20(3), then, despite that regulation, he is entitled to count a period of membership of the same length as if all payments to be made in respect of that period under regulation P13 of the 1987 Regulations had been made.

Re-employment after return of contributions: service before 6th April 1978
     17.  - (1) This paragraph applies to a member if-

(a) he left a local government employment after 15th May 1974 and before 6th April 1978 with less than 5 years' total membership;

(b) a return of contributions for that employment was made to him; and

(c) he has subsequently begun another local government employment (whether before or after the commencement date) in which he is an active member.

    (2) Despite regulation 8(3) of the 1998 Regulations, a member within paragraph (1) may count the period for which the contributions were returned, if he pays the appropriate sum to his appropriate fund in his new employment.

    (3) That repayment must be made before the expiry of the period of six months beginning with his return to local government employment or such longer period as the authority who returned the contributions and, if different, his appropriate administering authority in his new employment may allow.

    (4) The appropriate sum is an amount equal to-

(a) the amount of returned contributions (net of any tax deducted, but including any increase under regulation M3 of the 1987 Regulations or any corresponding earlier provision and any interest paid on the return); plus

(b) interest on the amount specified in paragraph (a) for the period beginning with the date the contributions were returned and ending with the date of payment of the appropriate sum.

    (5) Interest must be calculated-

(a) at 6 per cent. compounded with yearly rests for each complete period of a year ending before 1st April 1977; and

(b) at 2.25 per cent. compounded with three-monthly rests for each complete period of three months beginning on or after that date.

    (6) In any case where the whole or part of the period for which the contributions were returned was a period before 1st April 1972 which, if the member had been entitled immediately before the commencement date to count it, would have been reduced under regulation 8, the period which may be counted under paragraph (2) must be similarly reduced.

    (7) The repayment by a member under paragraph (2) in any tax year must not, when aggregated with his total contributions (as mentioned in regulation 15(2) of the 1998 Regulations) payable in that tax year, exceed the maximum amount so payable by him.

Equivalent pension benefits
     18.  - (1) This paragraph applies where-

(a) when a member left his local government employment he was not entitled in relation to that employment to a retirement pension under regulation 24, 25, 26 or 30 of the 1998 Regulations (or any corresponding provision of any earlier regulations) and he receives a return of contributions;

(b) the whole or some part of his period of membership was in service in a non-participating employment or in service which relates to employment with a non-local government employer in a non-participating employment;

(c) a period of his service in a non-participating employment came to an end by reason-


(i) of the repeal of section 56(1) of the National Insurance Act 1965[3], or

(ii) of the provisions of regulation 2(2) of the National Insurance (Non-Participation Assurance of Equivalent Pension Benefits) Regulations 1960[4] (as modified by regulation 9(2)(a) or (b) of the National Insurance (Non-participation Transitional Provisions) Regulations 1974[5]); and



(d) at some time during the settlement period (within the meaning of regulation 2 of those Regulations of 1974) he became, and has remained, assured of equivalent pension benefits.

    (2) Where paragraph (1) applies, the member is entitled under the 1998 Regulations in relation to that employment to an annual retirement pension payable at the rate of the equivalent pension benefits applicable to him in respect of any period of membership-

(a) in service in a non-participating employment; or

(b) which relates to service with a non-local government employer in a non-participating employment.

    (3) That pension is payable from the first date on which he-

(a) has attained state pensionable age; and

(b) is no longer in any local government employment.

    (4) Where a pension is payable under paragraph (2) to a member who attains state pensionable age for a period of service in a non-participating employment, which counts for the purpose of calculating any benefits payable to the member (other than excepted service), no relevant provision shall apply so as to reduce the pension below the minimum rate of equivalent pension benefits applicable for that period of service under the Insurance Acts.

    (5) A relevant provision is a provision of the 1998 Regulations for the surrender, assignation, reduction, termination or suspension of a pension.

    (6) Paragraph (4) does not apply to relevant provision for the reduction, termination or suspension of a pension, which is used for a purpose prescribed by regulations made, or deemed to have been made, under section 57(1)(c) of the National Insurance Act 1965 (equivalent pension benefits).

    (7) For these Regulations and the 1998 Regulations, a member to whom paragraph (1) applies shall be treated as having ceased to hold the employment for which he receives a return of contributions on the day before the date of receipt.

    (8) Entitlement to a pension under paragraph (2) must be disregarded-

(a) for regulations 19(4), (6) and (8), 28, 33(1), 37(5), 41, 44(5), 45(7) and 86(1)(a) of the 1998 Regulations; and

(b) for determining whether a person is at any time a pensioner member or a deferred member.

    (9) For this regulation a member may count the excess period referred to in regulation 123(1) of the 1998 Regulations (service not matched by period credited on transfer into the Scheme).

    (10) In this regulation-

"non-participating employment" has the same meaning as in section 56(1) of the National Insurance Act 1965;

"excepted service", in relation to any person, is any earlier period of such service as is mentioned in paragraph (4), being service in respect of which-

(a) a payment in lieu of contributions has been made; or

(b) equivalent pension benefits satisfying the requirements of the Insurance Acts have already been assured to him.

Pension funds and authorities

Superannuation funds and appropriate fund authorities
     19.  - (1) The funds which are appropriate superannuation funds for the old provisions immediately before the commencement date shall continue to be appropriate superannuation funds for those provisions and shall be the appropriate funds for the 1998 Regulations.

    (2) Without prejudice to paragraph (1), any liabilities under the old provisions, as they continue to apply by virtue of these Regulations, shall continue to be payable by the appropriate administering authority from the fund which is the appropriate superannuation fund as respects those liabilities immediately before that date.

    (3) Where immediately before that date any body is or may become liable to make payments to any such authority or to any superannuation fund in respect of any liability arising under the old provisions in respect of any person, liabilities in respect of whom continue to arise on or after that date under those provisions, that body shall continue to be the body which is or may become so liable.

Continuation of employers' liability for certain payments
     20.  - (1) Nothing in these Regulations affects the liability of any body to make payments under regulation P13 of the 1987 Regulations in respect of any member who continues as an active member on the commencement date by virtue of regulation 3(1).

    (2) However, if the member (or his executor) informs the relevant authority under regulation 14(2) (as applied by regulation 15(1)) that he does not wish a right which ceases to have effect under regulation 12(1)(a) to be treated as mentioned in regulation 14(1), regulation P13 of the 1987 Regulations shall cease to apply in relation to that member's payments so far as they become due on or after the commencement date.

    (3) Where, in a case in which payments continue to be made under regulation P13(1) of the 1987 Regulations by virtue of paragraph (1), following an election under regulation 16(1) a member makes a capital payment in full satisfaction of his liabilities in respect of any period, any liabilities which any body has in respect of him under that regulation are not affected.

" or
(h) the amount of any supplement paid by the Scottish Environment Protection Agency in recognition of the difference in contribution rates between members of the principal civil service pension scheme and the Scheme".

    (3) In regulation 30 (early leavers: deferred retirement benefits and elections for early payment)-

(a) in paragraph (1) for the words "may elect to receive payment of them immediately" substitute the words "is entitled, on his so requesting the administering authority in writing, to receive payment of those benefits in respect of his SEPA service immediately or, at his option, at any time before he attains the age of 60";

(b) omit paragraphs (2), (3) and (8);

(c) in paragraph (4) for the words from the beginning to "85 years" substitute the words "If the member has not attained the age of 60";

(d) in paragraph (7) for "NRD" substitute the words "60th birthday";

(e) at the end add the following new paragraph:-

    " (9) In this regulation "SEPA service" means-


(a) the period during which the person concerned has remained an active member and in continuous employment of the Scottish Environment Protection Agency following a relevant statutory transfer (as defined in regulation 21(6) of the Transitional Regulations); and

(b) where a transfer value has been accepted from the Principal Civil Service Pension Scheme made under section 1 of the Superannuation Act 1972 and referred to as such in section 2(10) of that Act, the period of membership which he was entitled to count under regulation J9(1)(a) of the 1987 Regulations.".

    (4) The employment with the Scottish Environment Protection Agency referred to in paragraph (1) does not count as new employment for regulation 109 (statements of policy concerning abatement of retirement pensions in new employment) or regulation 110 (application of abatement policy in individual cases).

    (5) The 1998 Regulations and these Regulations shall have effect, so long as the member remains an active member and in continuous employment of the Scottish Environment Protection Agency, as if they conferred on the member the same rights relating to service overseas as he would have enjoyed if he had remained subject to the principal civil service pension scheme.

    (6) A relevant statutory transfer in relation to a member is a transfer of his employment-

(a) which took place on 1st April 1996 as a consequence of a transfer of functions on that date to the Scottish Environment Protection Agency; or

(b) which took place as a consequence of a transfer to the Scottish Environment Protection Agency of the undertaking in which he was formerly employed to which the Transfer of Undertakings (Protection of Employment) Regulations 1981[6] apply.

    (7) A pensionable civil servant is a person who is employed in the civil service of the State and is a member, or is eligible to be a member, of the principal civil service pension scheme.

Former members of NHS Superannuation Scheme for Scotland
     22.  - (1) The 1998 Regulations apply with the modifications mentioned in paragraphs (3) to (5) to a member-

(a) who became an active member immediately after being transferred to employment by the governing body of a university or designated institution within the meaning of Part II of the Further and Higher Education (Scotland) Act 1992[7] or by the board of management of a college of further education within the meaning of Part I of that Act as a consequence of a transfer to the governing body or board of management on 1st September 1996, or in the case of a transfer to the governing body of the Robert Gordon University on 1st December 1996, of the undertaking in which he was employed, to which transfer the Transfer of Undertakings (Protection of Employment) Regulations 1981 apply;

(b) who immediately before that transfer was employed by a health board and was a member, or was eligible to be a member, of the pension scheme the rules of which are set out in the National Health Service Regulations; and

(c) who since that transfer has been an active member in relevant local government employment.

    (2) In regulation 30 of the 1998 Regulations (early leavers: deferred retirement benefits and elections for early payment)-

(a) in paragraph (1) for the words "may elect to receive payment of them immediately" substitute the words "is entitled, on his so requesting the administering authority in writing, to receive payment immediately of those benefits in respect of his relevant local government employment and transferred service";

(b) omit paragraphs (2), (3) and (8);

(c) in paragraph (4) for the words from the beginning to "85 years" substitute the words "If the member has not attained the age of 60";

(d) at the end add the following new paragraph:-

    " (9) In this regulation-


"relevant local government employment" has the meaning given in regulation 22(5) of the Transitional Regulations;
"transferred service" means, where on the transfer referred to in regulation 22(1)(a) of the Transitional Regulations a transfer value has been accepted in respect of a person's accrued rights from the National Health Service Superannuation Scheme for Scotland constituted under the National Health Service Superannuation Scheme (Scotland) Regulations 1995, the period of membership which he was entitled to count under regulation J9(1)(a) of the 1987 Regulations.".

    (3) Regulation 56 of those Regulations (effect of increases under Chapter III of Part III for older members) does not apply to so much of any period counted under that Chapter as is attributable to contributions paid under a contract-

(a) which was deemed by paragraph 5 of Schedule 16B to the 1987 Regulations to have been made pursuant to an election under regulation C5 or C6 of those Regulations;

(b) under which contributions were being made immediately before the commencement date; and

(c) which is treated as continuing under regulation 14.

    (4) For regulation 123 of the 1998 Regulations (rights as to service not matched by credited period), in the case of the transfer mentioned in paragraph (1) member's transferred-in service means any service which for the National Health Service Regulations the member was entitled to count in relation to employment in which he was an officer (as defined in those Regulations) for determining whether he was entitled to a benefit under those Regulations, but for no other purpose.

    (5) In this regulation-

"the National Health Service Regulations" means the National Health Service Superannuation Scheme (Scotland) Regulations 1995[8];

"relevant local government employment" means a continuous period of employment as an active member comprising-

(a) the period, immediately following the transfer to employment by a governing body or board of management in terms of paragraph (1)(a), of employment by that governing body or board of management during which the member was continuously engaged in the work of the undertaking in which he was previously employed or in the work of another undertaking transferred to that governing body or board of management as mentioned in paragraph (1)(a); and

(b) any further periods, immediately following the period described in sub-paragraph (a) and each other, of employment by another governing body or board of management of the kind specified in paragraph (1)(a) during which the member was continuously engaged in the work of an undertaking transferred to that governing body or board of management as mentioned in paragraph (1)(a).

Community scheme transferees
     23.  - (1) Community scheme transferees and their surviving spouses, dependants and children are entitled to such rights under the Scheme as are specified in guidance issued by the Government Actuary.

    (2) A Community Scheme transferee is a person-

(a) who became employed by a Community institution after having been employed in local government employment;

(b) in respect of whom the scheme managers of the Communities' scheme were paid a transfer value under Chapter IV of Part IV of the Pension Schemes Act 1993[9] or Part J of the 1987 Regulations or any corresponding earlier provisions; and

(c) whose fund authority (as defined in regulation 116 of the 1998 Regulations) have been repaid for the credit of their pension fund an amount which in accordance with that guidance may be treated as equivalent to that transfer value.

    (3) The rights to which any person is entitled by virtue of guidance under this regulation must not be less valuable than those to which he would have been entitled if regulation J6 of the 1987 Regulations still applied to him.

[4] S.I. 1960/1103.back

[5] S.I. 1974/2057.back

[6] S.I. 1981/1794; the definition of "undertaking" was amended by the Trade Union Reform and Employment Rights Act 1993 (c.19), section 33.back

[7] 1992 c.37.back

[8] S.I. 1995/365, amended by S.I. 1997/1434 and 1916.back

[9] 1993 c.48.back

[10] 1978 c.30.back