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Scottish Parliamentary Pensions Act 2009

Type Act of the Scottish Parliament

Publication 2009-02-25

Last updated 2026-03-20

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Scottish Parliamentary Pension Scheme

1

(1) The Scottish Parliamentary Pension Scheme is to continue but is to be governed from the coming into force of this section in accordance with the rules set out in schedule 1.

(2) The Scottish Parliamentary Contributory Pension Fund (and all the SPCB's functions, rights, liabilities and obligations in relation to that Fund) are transferred to and vest in the Fund trustees appointed and holding office in accordance with those rules.

(3) Schedule 3 makes further transitional provisions and savings.

Grants payable on leaving office

2

Schedule 2 sets out circumstances in which the SPCB is to pay grants to individuals when they stop being MSPs or holding certain offices.

Modification of pension schemes etc.

3

(1) The Scottish Parliament may resolve to modify—

(a) the Scottish Parliamentary Pension Scheme,

(b) the grants scheme set out in schedule 2, or

(c) the pension scheme for First Ministers and Presiding Officers which is comprised in Part S of the 1999 pensions order.

(2) A resolution may, in particular, modify—

(a) the rules set out in schedule 1,

(b) schedules 2 or 3, or

(3) A resolution may—

(a) make different provision for different purposes,

(b) make provision having retrospective effect.

(4) The Clerk of the Parliament must send a copy of a resolution to the Queen’s Printer for Scotland (“the Queen’s Printer”) immediately after it is passed.

(5) Section 41(2) to (5) of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10) and the Scottish Statutory Instruments Regulations 2011 (S.S.I.2011/195) apply to the resolution—

(a) as if it were a Scottish statutory instrument,

(b) as if the copy of it sent to the Queen’s Printer under subsection (4) was a certified copy received in accordance with section 41(1) of the Interpretation and Legislative Reform (Scotland) Act 2010, and

(6) References to “responsible authority” are to be read as references to the Clerk of the Parliament.

(7) Regulation 7(2) and (3) of the Scottish Statutory Instruments Regulations 2011 does not apply.

Interpretation

4

In this Act—

“1999 pensions order” means the Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999 (S.I. 1999/1082),

“Scottish Parliamentary Pension Scheme” means the pension scheme constituted by the 1999 pensions order (but does not include the pension scheme for First Ministers and Presiding Officers which is comprised in Part S of that order),

“Scottish Parliamentary Contributory Pension Fund” means the fund established by article B1 of the 1999 pensions order, and

“SPCB” means the Scottish Parliamentary Corporate Body.

Commencement

5

(1) The following provisions come into force on Royal Assent—

sections 4 and 6

this section

rules 4 and 8 to 11 of schedule 1 (and section 1(1) in so far as it introduces them)

paragraphs 1, 4 and 9 of schedule 3 (and section 1(3) in so far as it introduces those paragraphs)

(2) Section 3 also comes into force on Royal Assent (but, during the period before the rest of this Act comes into force, a motion for a resolution under that section may be moved only by a member of the SPCB).

(3) The rest of this Act comes into force on the first day of the month which follows the month which includes the day falling 6 months after Royal Assent.

Short title

6

This Act is called the Scottish Parliamentary Pensions Act 2009.

SCHEDULE 1

1

This schedule sets out the rules of the Scottish Parliamentary Pension Scheme (“the scheme”).

Part A — The Pension Fund

The Pension Fund

2

“The Pension Fund” means the Scottish Parliamentary Contributory Pension Fund.

Payments to and from Fund

3

(1) The following payments are to be made from the Pension Fund—

(a) all pensions and lump sums payable under the scheme, and

(b) all amounts payable by the Fund trustees under the scheme.

(2) The Fund trustees must pay all sums they receive under the scheme into the Pension Fund.

Part B — Fund trustees

Fund trustees

4

The “Fund trustees” are the individuals appointed under and holding office in accordance with this Part.

Functions

5

The Fund trustees' principal function is to administer the Pension Fund, and to manage and apply its assets, in accordance with the scheme.

Number of trustees

6

There are to be at least 3 but no more than 6 Fund trustees.

Eligibility

7

A person who is prevented by the Pensions Act 1995 (c. 26), or by any other enactment or rule of law, from being a pension scheme trustee is barred from being a Fund trustee.

Appointment of Fund trustees

8

(1) The Scottish Parliament may resolve to appoint as a Fund trustee any individual nominated by the SPCB as suitable to hold that office.

(2) The SPCB must, when deciding who to nominate—

(a) do its best to ensure that the Fund trustees include a participating member and a scheme pensioner, and

(b) have regard to any recommendation by the incumbent Fund trustees.

(3) A Fund trustee appointment has immediate effect (unless the Scottish Parliament resolves otherwise).

(4) The Court of Session may appoint a Fund trustee only on an application under section 19(2) of the Trusts (Scotland) Act 1921 (c. 58).

(5) The Fund trustees do not have power to assume new trustees.

Remuneration, allowances and expenses

9

(1) A Fund trustee may be remunerated, or receive allowances, from the Pension Fund for acting as a Fund trustee only if the following conditions are met—

Condition 1	The Fund trustee is not a scheme member (or a pension credit member).
Condition 2	The other Fund trustees (if any), before appointment, recommend to the SPCB that the Fund trustee be remunerated or entitled to allowances.
Condition 3	The SPCB's nomination to the Scottish Parliament specifies that remuneration or allowances are to be paid.

(2) Expenses properly incurred by the Fund trustees in connection with the performance of their functions are to be paid from the Pension Fund.

Resignation

10

(1) A Fund trustee may resign by giving notice of resignation to—

(a) the Presiding Officer, and

(b) the other Fund trustees.

(2) A resignation has effect immediately on the notice of resignation being given.

(3) This rule does not apply where there is a sole trustee.

Removal

11

(1) A Fund trustee is removed from office only if—

(a) the Scottish Parliament resolves to end the Fund trustee's tenure,

(b) the Fund trustee becomes barred from being a Fund trustee (see rule 7), or

(2) A Parliamentary resolution passed on a division for the purposes of this rule has effect only if voted for by at least two-thirds of the voting MSPs.

Change of status

12

(1) This rule applies—

(a) where a Fund trustee who was a participating member when appointed becomes a deferred pensioner or a scheme pensioner,

(b) where a Fund trustee who was a deferred pensioner when appointed—

(i) becomes a participating member or a scheme pensioner, or

(ii) has his or her rights to receive scheme benefits extinguished under rule 80, and

(2) Where this rule applies—

(a) the Fund trustee must give notice of change of circumstance to—

(i) the Presiding Officer, and

(ii) the other Fund trustees, and

(b) the Fund trustee's tenure ends 6 months after the change of circumstance occurs (unless the Scottish Parliament resolves otherwise).

Member-nominated trustees

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedure

14

The Fund trustees may regulate their own procedure (in so far as not regulated by the scheme).

Quorum

15

A meeting of the Fund trustees is quorate if—

(a) 3 or more Fund trustees are present, or

(b) where fewer than 3 Fund trustees hold office, if both trustees are (or the sole trustee is) present.

Staff and advisers

16

The Fund trustees may—

(a) employ staff on such terms as they think fit,

(b) seek advice from any person.

Fund management

17

The Fund trustees must monitor the performance of any fund manager they appoint.

Indemnity insurance

18

The Fund trustees may obtain insurance designed to indemnify them against any personal liability arising in connection with the performance (or purported performance) of their functions.

Delegation

19

(1) The Fund trustees may authorise any person (including one or more of themselves) to perform, or to authorise others to perform, any of their functions to the extent authorised.

(2) An authorisation does not affect the Fund trustees' responsibility for delegated functions or their ability to perform those functions themselves.

Validity of acts

20

(1) A decision, authorisation or other act of the Fund trustees is not invalidated—

(a) by any change to the individuals (or to the status or eligibility of individuals) holding office as Fund trustees,

(b) by any defect in the nomination or appointment of a Fund trustee, or

(2) The Fund trustees are free to vary or revoke any previous decision or authorisation (but such a variation or revocation may reduce the scheme benefits to which any individual is entitled only if made in accordance with any other scheme rule).

Part C — Participating members

MSP members

21

Every serving MSP aged under 75 is to participate in the scheme as an “MSP member” (unless the MSP opts out under rule 23).

Office-holder members

22

(1) Every individual aged under 75 holding a pensionable office is to participate in the scheme as an “office-holder member” (unless the individual opts out under rule 24).

(2) An individual holds a pensionable office by being—

(a) the Presiding Officer,

(b) a deputy Presiding Officer,

(d) a junior Scottish Minister.

MSP opt-out

23

(1) An MSP may opt out of participating in the scheme by giving notice to the Fund trustees.

This rule does not prevent an MSP who is also a holder of a pensionable office from opting out as an office-holder member only under rule 24 (but such an MSP may not opt out as an MSP member only).

(2) Where an MSP opts out within 3 months of first being elected as an MSP—

(a) the MSP is to be treated—

(i) as having never been an MSP member, and

(ii) as having not been an office-holder member for any period since the election, and

(b) any scheme member contributions made since being elected are to be repaid to the MSP.

(3) In any other case, an MSP who opts out stops being a participating member on whatever date the Fund trustees decide is the earliest practicable date after they receive the opt-out notice.

Office-holder opt-out

24

(1) The holder of a pensionable office may opt out of participating in the scheme as an office-holder member only by giving notice to the Fund trustees.

(2) Where the holder of a pensionable office opts out within 3 months of being appointed to that office—

(a) the office-holder is to be treated as having not been an office-holder member since being appointed, and

(b) any scheme member contributions made in respect of office-holder's salary since being appointed are to be repaid to the office-holder.

(3) In any other case, a holder of a pensionable office who opts out stops being an office-holder member on whatever date the Fund trustees decide is the earliest practicable date after they receive the opt-out notice.

MSP opt-in

25

An individual who has opted out of participating in the scheme may, if subsequently elected as an MSP, opt back into the scheme as an MSP member with effect from the election date by—

(a) giving notice to the Fund trustees within 3 months of being elected, and

(b) paying to the Fund trustees by the due date the amount which they certify as the amount of scheme member contributions which would have been made from the individual's MSP salary payments between the election date and the next day on which a scheme member contribution is to be made.

“due date” means the 28th day after the Fund trustees give their certification to the MSP (or any later day as the Fund trustees may specify).

Office-holder opt-in

26

(1) An individual who has opted out of participating in the scheme (or who has opted out of participating as an office-holder member only) may, if subsequently appointed to hold any pensionable office, opt back into the scheme as an office-holder member with effect from the appointment date by—

(a) giving notice to the Fund trustees within 3 months of being appointed, and

(b) paying to the Fund trustees by the due date the amount which they certify as the amount of scheme member contributions which would have been made from the individual's office-holder salary payments between the appointment date and the next day on which a scheme member contribution is to be made.

“due date” means the 28th day after the Fund trustees give their certification to the office-holder (or any later day as the Fund trustees may specify).

(2) An MSP may not opt back into the scheme as an office-holder member unless that individual also opts back in as (or already is) an MSP member.

Part D — Contributions

Scheme member contributions

27

The person responsible for paying a participating member's salary must—

(a) deduct an amount (a “scheme member contribution”) from each salary payment (but see rule 30), and

(b) pay the scheme member contribution to the Fund trustees.

Amount of scheme member contribution

28

Higher rate scheme member contributions are be deducted under rule 27 (unless the participating member concerned chooses to make lower rate scheme contributions).

Procedure for changing scheme member contribution rate

29

(1) A participating member may, by giving notice to the Fund trustees, choose to make lower rate scheme member contributions instead of higher rate scheme member contributions (or vice versa).

(2) Such a notice may be given only within 3 months of—

(a) being elected (or re-elected) as an MSP, or

(b) where the participating member is not an MSP, being appointed (or re-appointed) as the holder of a pensionable office.

(3) The notified change has effect from the day of the election or appointment and—

(a) the Fund trustees must pay the participating member an amount equal to any excess of scheme member contributions made in respect of that period, or (as the case may be)

(b) the participating member must pay any shortfall in scheme member contributions made in respect of that period to the Fund trustees.

(4) If a participating member fails to repay a shortfall, the Fund trustees may recover the shortfall by directing the person responsible for paying the participating member's salary to adjust subsequent scheme member contributions accordingly.

Relief from liability to make scheme member contributions

30

(1) An MSP member is to stop making scheme member contributions from MSP salary when he or she obtains sufficient reckonable service as an MSP to entitle him or her to the maximum annual MSP pension permitted by rule 38(2).

(2) Such an MSP member is to begin making scheme member contributions again only if his or her MSP salary increases.

(3) Those contributions are to be made—

(a) only in respect of the amount by which the MSP salary is increased, and

(b) at the rate which applied when the MSP member stopped making scheme member contributions in respect of his or her full MSP salary.

(4) Scheme member contributions are not to be made from the office-holder salary of an office-holder member whose reckonable service as an office-holder already entitles him or her to the maximum office-holder pension entitlement permitted by rule 39(4).

(5) Such an office-holder member is to begin making scheme member contributions again only if his or her office-holder salary increases.

(6) Those contributions are to be made—

(a) only in respect of the amount by which the office-holder salary is increased, and

(b) at the rate which applied when the office-holder member stopped making scheme member contributions in respect of his or her full office-holder salary.

(7) If—

(a) the Fund trustees have accepted an individual's application to buy added years, but

(b) the individual has not yet paid for those added years in full,

the individual's reckonable service as an MSP or office-holder is to be treated for the purposes of this rule as including the period by which his or her reckonable service will be increased on payment of the last instalment or lump sum.

Contributions when salary not drawn

31

The person responsible for paying the salary of a participating member who chooses not to draw that salary (or any part of it) must—

(a) deduct amount A from the funds available to pay the salary (or that part of it), and

(b) pay that amount to the Fund trustees.

Contributions from SPCB

32

(1) The SPCB must pay a sum into the Pension Fund in respect of each financial year.

(2) The SPCB must, when determining the amount of each annual sum, have regard to—

(a) the scheme actuary's recommended rate for future contributions (see rule 103(3)(c)), and

(b) any advice from the Fund trustees on the rate of future contributions.

Part E — Reckonable service

Reckonable service as an MSP

33

(1) A period for which an MSP member makes scheme member contributions from salary payments in respect of MSP salary is a period of reckonable service as an MSP.

(2) An individual's “reckonable service as an MSP” means the total of—

(a) the period described in rule 33(1) or (if more than one) the total of such periods, and

(b) any amount by which that period is increased under Part N (transfers) or Part O (added years).

Reckonable service as an office-holder

34

(1) A period for which an office-holder member makes scheme member contributions from salary payments in respect of office-holder salary is a period of reckonable service as an office-holder.

(2) An individual's “reckonable service as an office-holder” means the total of—

(a) the period described in rule 34(1) or (if more than one) the total of such periods, and

(b) any amount by which that period is increased under Part N (transfers) or Part O (added years).

Total reckonable service

35

An individual's “total reckonable service” is the total of any periods in which the individual obtains—

(a) reckonable service as an MSP only under rule 33(1),

(b) reckonable service as an office-holder only under rule 34(1), and

Measuring reckonable service

36

A period of reckonable service is measured in years and fractions of a year (unless the contrary intention appears).

Part F — Pensions

Scheme pension

37

(1) A pension (a “scheme pension”) is to be paid to every individual who—

(a) has reckonable service as an MSP or office-holder,

(b) is aged 65 or over, and

(2) Unless the scheme otherwise provides, the annual scheme pension payable to such an individual is an amount equal to the total of—

(a) the annual MSP pension payable in accordance with rule 38, and

(b) the annual office-holder pension payable in accordance with rule 39.

Amount of MSP pension

38

(1) The annual MSP pension payable to an individual is an amount equal to—

$$MSP'sfinalsalary×(A50+B40)$where—“A” is the individual's reckonable service as an MSP during which lower rate scheme member contributions were made, and“B” is the individual's reckonable service as an MSP during which higher rate scheme member contributions were made.$

(2) Where an individual's annual MSP pension (including any enhancement made by virtue of other scheme rules) exceeds the individual's annual MSP pension cap, the annual MSP pension payable to the individual is to be reduced to the individual's annual MSP pension cap.

An individual's “annual MSP pension cap” is two-thirds of the individual's final salary as an MSP (ignoring any reduction in final salary by virtue of section 82 of the Scotland Act 1998 (c. 46)).

Amount of office-holder pension

39

(1) The annual office-holder pension payable to an individual is an amount equal to the total of the individual's office-holder pension entitlements.

(2) An individual obtains an office-holder pension entitlement in respect of each period for which he or she holds a pensionable office.

(3) The amount of an office-holder pension entitlement for such a period is calculated as follows—

$$office-holder'sfinalsalaryinrespectofperiod×(A50+B40)$where—“A” is the individual's reckonable service as an office-holder accrued when holding the office concerned in respect of which the individual made lower rate scheme member contributions, and“B” is the individual's reckonable service as an office-holder accrued when holding the office concerned during which the individual made higher rate scheme member contributions.$

(4) Where an individual's annual office-holder pension (including any enhancement made by virtue of other scheme rules) exceeds the individual's annual office-holder pension cap, the annual office-holder pension payable to the individual is to be reduced to the individual's annual office-holder pension cap. An individual's “annual office-holder pension cap” is—

(a) two-thirds of the final salary amount used to calculate the individual's office-holder pension entitlement, or

(b) where an individual has more than one such entitlement, two-thirds of the highest such final salary amount.

Duration of scheme pension

40

(1) A scheme pension is payable from the day on which the individual concerned is first entitled to receive it.

(2) Pension payments need not begin unless the individual entitled to the scheme pension has—

(a) notified the Fund trustees that he or she wishes pension payments to begin, and

(b) given the Fund trustees such information as they may reasonably require—

(i) about the individual's entitlement to any other pension,

(ii) to calculate their liability for a lifetime allowance charge or any other tax,

(iii) to make the payments.

This rule does not affect the date from which a scheme pension is payable.

(3) Pension payments are to continue for the rest of the individual's life (see rule 41 for exception).

(4) Pension payments are to be made monthly in arrears (or in other instalments of no longer than one year as the Fund trustees may determine).

Suspension of scheme pension

41

(1) Where a scheme pensioner becomes an MSP or the holder of a pensionable office, pension payments are to be suspended until the individual concerned stops being an MSP or the holder of that office.

(2) The amount of any lump sum payable under Part K in respect of an individual who dies when such a suspension has effect is to be reduced by an amount equal to the total of—

(a) the amount of scheme pension already paid to the individual,

(b) the amount of any retirement lump sum paid to the individual, and

(3) When such a suspension ends in relation to an individual who was entitled to an ill-health pension before the suspension began—

(a) the individual is to be treated from then on as if he or she had not been entitled to an ill-health pension, and

(b) a corresponding reduction is to be made—

(i) to the individual's pension payments, and

(ii) to any added years obtained by virtue of rule 86(2)(a)).

Part G — Retirement lump sums

Right to commute pension into a lump sum

42

(1) An individual may commute a portion of the individual's scheme pension into a lump sum (a “retirement lump sum”) by giving notice (a “commutation notice”) to the Fund trustees.

(2) A commutation notice is valid only if it—

(a) is given before the earlier of—

(i) the day on which a scheme pension is first paid to the individual, and

(ii) the individual's 75th birthday,

(b) specifies the proportion of the individual's scheme pension that the individual wants to commute into a retirement lump sum, and

(i) determine the amount payable, and

(ii) satisfy themselves that, if paid, the retirement lump sum would be a “pension commencement lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).

Payment of retirement lump sum and corresponding reduction in pension

43

(1) An individual who gives a valid commutation notice is to be paid a retirement lump sum of an amount equal to the lower of—

(a) the amount which the Fund trustees determine to be equivalent to the proportion of the individual's scheme pension specified in the commutation notice, or

(b) the permitted maximum (construed in accordance with paragraph 2 of Schedule 29 to the Finance Act 2004 (c. 12)).

(2) The annual scheme pension payable to an individual who is to be paid a retirement lump sum is to be reduced by an amount which the Fund trustees determine to be appropriate in consequence of the individual's entitlement to the retirement lump sum.

(3) A determination of the Fund trustees' for the purposes of this rule must be—

(a) certified by the scheme actuary, or

(b) made in accordance with guidance and tables prepared by the scheme actuary.

Special rule for commutation by individual approaching the age of 75

44

(1) This rule applies to an individual who—

(a) gives a valid commutation notice before reaching the age of 75, and

(b) would not (but for this rule) be entitled to be paid a scheme pension at that time by reason only of being a serving MSP or the holder of a pensionable office.

(2) Despite rule 37(1)(c)—

(a) an individual to whom this rule applies is to be entitled to be paid a scheme pension from the day before the member's 75th birthday, but

(b) the amount of scheme pension so payable is to be nil until the individual is neither an MSP nor the holder of a pensionable office.

Commuting trivial amounts

45

(1) The Fund trustees may pay a lump sum (a “one-off lump sum”) to an individual if the following conditions are met—

Condition 1	The individual applies to the Fund trustees for payment of a one-off lump sum instead of a scheme pension.
Condition 2	The Fund trustees are satisfied that, if paid, the one-off lump sum would be a “trivial commutation lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) The amount of one-off lump sum to which an individual is entitled on any day is an amount equal to the value of the individual's uncrystallised rights under the scheme on that day (as determined by the Fund trustees in accordance with section 212 of the Finance Act 2004 (c. 12)).

(3) A determination of the Fund trustees must be—

(a) certified by the scheme actuary, or

(b) made in accordance with guidance and tables prepared by the scheme actuary.

(4) Payment of a one-off lump sum extinguishes the rights of all persons to receive scheme benefits in respect of the recipient.

Part H — Early retirement

Early retirement

46

(1) An individual is eligible to take early retirement if the individual is—

(a) 55 or over but is not yet 65, and

(b) neither an MSP nor the holder of a pensionable office.

(2) An eligible individual may take early retirement by giving notice (an “early retirement notice”) to the Fund trustees.

(3) Despite rule 37(1), an individual who takes early retirement is entitled to be paid his or her scheme pension from—

(a) the date on which the early retirement notice is given, or

(b) such later date as the individual may specify in the early retirement notice.

(4) The annual scheme pension payable to an individual is to be reduced by the appropriate percentage.

(5) The reduction in scheme pension is to continue to have effect after the individual reaches the age of 65.

Part I — Ill-health

Serious ill-health pension

47

An individual is entitled to a serious ill-health pension if the Fund trustees are satisfied that the following conditions are met—

Ordinary ill-health pension

48

An individual is entitled to an ordinary ill-health pension if the Fund trustees are satisfied that the following conditions are met—

Deferred pensioner’s ill-health pension

49

A deferred pensioner is entitled to a deferred pensioner's ill-health pension if the Fund trustees are satisfied that the following conditions are met—

Amount of serious ill-health pension

50

(1) Part F (Pensions) applies with the following modifications to an individual who is entitled to a serious ill-health pension and who has reckonable service as an MSP—

(a) the individual is to be treated as having been aged 65 on the relevant day,

(b) the individual's reckonable service as an MSP is to be increased by a period equal to the period of reckonable service as an MSP that the individual would obtain if the individual were to be an MSP member from the relevant day until the individual's 65th birthday,

(c) if the individual was a dual mandate MSP on the relevant day (or would have been had he or she been an MSP on that day), that increased period of reckonable service as an MSP is to be reduced by the same proportion as the MSP's salary was (or would have been) reduced on that day,

(d) the individual is to be treated as having made scheme member contributions during that increased period of reckonable service as an MSP at the rate which applied to the individual on the relevant day, and

(e) the individual's reckonable service as an office-holder (if any) is not increased.

(2) Part F (Pensions) applies with the following modifications to an individual who is entitled to a serious ill-health pension and who has reckonable service as an office-holder only—

(a) the individual is to be treated as having been aged 65 on the relevant day, and

(b) the amount of annual office-holder pension payable to the individual is to be increased by an amount equal to—

$$A×BC$where—“A” is the annual salary payable to an MSP by virtue of section 81(1) of the Scotland Act on the relevant day,“B” is the period of reckonable service as an office-holder that the individual would have obtained if the individual had continued to hold a pensionable office from the relevant day until the individual's 65th birthday, and“C” is—(i) if higher rate scheme member contributions were being made on the relevant day, 40,(ii) if lower rate scheme member contributions were being made on the relevant day, 50.$

(3) In this rule, “relevant day” means the day on which the individual resigned as or otherwise stopped being, an MSP or, as the case may be, the holder of a pensionable office.

Amount of ordinary ill-health pension

51

Rule 37 applies to an individual who is entitled to an ordinary ill-health pension as if the individual reached the age of 65 on the day on which the individual resigned as or otherwise stopped being an MSP or, as the case may be, the holder of a pensionable office.

Amount of deferred pensioner’s ill-health pension

52

Rule 37 applies to an individual who is entitled to a deferred pensioner's ill-health pension as if the individual reached the age of 65 on the day on which the application for the pension was made.

Review of ill-health pension entitlements

53

(1) The Fund trustees may review an individual's entitlement to an ill-health pension at any time before the individual reaches the age of 65 (and may carry out such a review at regular intervals determined by them).

(2) The Fund trustees may require an individual whose entitlement is being reviewed to provide evidence from a doctor on the individual's state of health.

(3) The Fund trustees may, if satisfied following a review that the individual's state of health no longer prevents the individual from doing gainful work, determine that the individual—

(a) is no longer to be entitled to a ill-health pension, or

(b) is to be entitled to an ordinary ill-health pension instead of a serious ill-health pension (where they remain satisfied that the individual's state of health still prevents the individual from adequately performing the duties of an MSP or a holder of a pensionable office).

(4) The Fund trustees may determine that an individual who refuses to be examined in accordance with rule 54, or who otherwise fails to co-operate with a review, is no longer to be entitled to an ill-health pension.

(5) If the Fund trustees make a determination under this rule—

(a) pension payments are to stop or, as the case may be, be reduced from the date of the determination, and

(b) the scheme is to operate in relation to the individual from then onwards as if the individual had not been entitled to an ill-health pension or, as the case may be, to a serious ill-health pension.

Medical examinations

54

(1) The Fund trustees may require—

(a) an applicant for an ill-health pension, or

(b) an individual whose entitlement to an ill-health pension is being reviewed,

to be examined by a doctor nominated by them.

(2) The cost of any doctor's examination is to be borne by the Fund trustees or the examinee (as the Fund trustees may determine).

Ill-health lump sums: life expectancy of less than one year

55

(1) An individual is entitled to be paid a lump sum (an “ill-health lump sum”) instead of a scheme pension if the following conditions are met—

Condition 1	The individual applies to the Fund trustees for an ill-health lump-sum.
Condition 2	The individual is neither an MSP nor the holder of a pensionable office.
Condition 3	The individual has reckonable service as an MSP or as an office-holder.
Condition 4	The Fund trustees are otherwise satisfied that, if paid, the ill-health lump sum will be a “serious ill-health lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) An ill-health lump sum is to be equal to 5 times the annual scheme pension—

(a) in the case of an applicant aged 65 or over, which would otherwise be payable to the individual,

(b) in the case of an applicant aged under 65, which would be payable if the individual became entitled to a serious ill-health pension from the day on which the ill-health lump sum is payable.

(3) Payment of an ill-health lump sum extinguishes all the recipient's rights to receive scheme benefits.

Part J — Surviving partners and children

Chapter 1 — Scheme pension entitlement

Meaning of “scheme pension entitlement”

56

(1) References in this Part to a deceased individual's “scheme pension entitlement” are to be construed in accordance with this rule.

(2) The “scheme pension entitlement” of an individual who died while being a participating member—

(a) where if the individual died when aged 65 or over, is the annual amount of scheme pension which would have been payable to the deceased if he or she had not been an MSP or the holder of a pensionable office on the day on which he or she died,

(b) where if the individual died when aged under 65, is the annual amount of scheme pension which would have been payable to the deceased if he or she had become entitled to (and had been paid) a serious ill-health pension on the day on which he or she died.

(3) The “scheme pension entitlement” of an individual who died while being a deferred pensioner—

(a) where if the individual died when aged 65 or over, is the annual amount of scheme pension which would have been payable to the deceased if he or she had not been an MSP or the holder of a pensionable office on the day on which he or she died,

(b) where if the individual died when aged under 65, is the annual amount of scheme pension which would have been payable to the deceased if he or she had been aged 65 on the day on which he or she died.

(4) The “scheme pension entitlement” of an individual who died while being a scheme pensioner—

(a) where the deceased received a retirement lump sum, is the annual amount of scheme pension which would have been payable to the deceased immediately before he or she died had the pension not been reduced under rule 43(2),

(b) where the deceased did not receive a retirement lump sum, is the annual amount of scheme pension being paid to the deceased immediately before he or she died.

(5) The “scheme pension entitlement” of a deceased individual whose entitlement to scheme benefits was extinguished by rule 55(3) before he or she died is the annual amount of scheme pension which would have been payable to the deceased if—

(a) the ill-health lump sum had not been paid to the deceased,

(b) the deceased had stopped being a participating member on the day on which the ill-health lump sum was paid,

(d) where that day was before the deceased's 65th birthday—

(i) the deceased had been entitled to a serious ill-health pension from that day (see rule 47), and

(ii) the deceased's scheme pension had been enhanced and paid accordingly (see rule 50).

(6) Where an individual dies when his or her pension payments are suspended under rule 41—

(a) the deceased individual is to be treated for the purposes of this rule as a scheme pensioner (regardless of whether also a participating member at that time), and

(b) the suspension is to be treated as having been lifted immediately before the individual died.

(7) A deceased individual who was a scheme pensioner when he or she died only because of rule 44(2) is to be treated for the purposes of this rule as having been a deferred pensioner at that time.

Chapter 2 — Partner's pension etc.

Partner

57

(1) “Partner”, in relation to any deceased individual, means—

(a) the individual's spouse or civil partner, or

(b) where no such person survives the deceased, any individual falling within this rule.

(2) An individual falls within rule 57(1)(b) if—

(a) the deceased nominated the individual as his or her partner by giving notice to the Fund trustees at least 6 months before death, and

(b) the Fund trustees are satisfied—

(i) that the individual and the deceased lived together as if they were husband and wife or, as the case may be, civil partners for the period of 2 years which immediately preceded the deceased's death,

(ii) that neither the individual nor the deceased lived with any other person in such a relationship (or with a spouse or civil partner) during that period,

(iii) that, during that period—

(A) the individual was financially dependant on the deceased, or

(B) the individual's financial relationship with the deceased was one of mutual dependence, and

(iv) that the individual and the deceased were not, immediately before the deceased died, prevented by law from either marrying or becoming civil partners.

Partner’s pension

58

(1) A pension (a “partner's pension”) is to be paid to a surviving partner of any scheme member who dies.

(2) The annual partner's pension so payable is 5/8ths of the deceased's scheme pension entitlement.

Enhancement of initial partner’s pension

59

(1) This rule applies where amount A is less than amount B for any part of the 3 month period following the death of a participating member or a scheme pensioner.

(2) Amount A is the total of—

(a) the amount of partner's pension to be paid to the surviving partner for the 3 month period (or the relevant part of it), and

(b) the amount of children's pension to be paid to the surviving partner for the 3 month period (or the relevant part of it) on condition that the partner applies it for the benefit of an eligible child.

(3) Amount B is—

(a) where the deceased was a participating member, the amount of the salary payments which would have been paid for the 3 month period (or the relevant part of it) if the deceased had lived and had continued to be paid the same salary, or

(b) where the deceased was a scheme pensioner, the amount of scheme pension which would have been payable for the 3 month period (or the relevant part of it) if the deceased had lived.

(4) Where this rule applies, the partner's pension is to be increased by the difference between amount A and amount B.

(5) An individual who dies while being both—

(a) a participating member, and

(b) a scheme pensioner whose pension payments are suspended under rule 41,

is to be treated for the purposes of this rule as a participating member.

Duration of partner’s pension

60

(1) A partner's pension is payable from the day after the day on which the deceased partner died.

(2) Pension payments need not begin unless the individual entitled to them has given the Fund trustees—

(a) notice of that entitlement, and

(b) such information as they may reasonably require—

(i) about the surviving partner's entitlement to any other pension,

(ii) to calculate their liability for a lifetime allowance charge or any other tax,

(iii) to make the payments.

This rule does not affect the date from which a partner's pension is payable.

(3) Pension payments are to continue for the rest of the surviving partner's life.

(4) Pension payments are to be made monthly in arrears (or in such other instalments of no longer than one year as the Fund trustees may determine).

Partner’s trivial lump sum

61

(1) The Fund trustees may pay a lump sum (a “partner's trivial lump sum”) to an individual who is entitled to a partner's pension if the following conditions are met—

Condition 1	The individual applies to the Fund trustees for payment of a partner's trivial lump sum instead of a partner's pension.
Condition 2	No payment relating to the deceased has been made to the individual by way of—a partner's pension, ora death in service lump sum.
Condition 3	The individual is not entitled to receive pension payments under rule 69.
Condition 4	The Fund trustees are satisfied that, if paid, the partner's trivial lump sum would be a “trivial commutation lump sum death benefit” for the purposes of Part 2 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) The amount of a partner's trivial lump sum is to be an amount equal to the value of the individual's scheme benefits (as determined by the Fund trustees).

(3) Such a determination must be—

(a) certified by the scheme actuary, or

(b) made in accordance with guidance or tables prepared by the scheme actuary.

(4) Payment of a partner's trivial lump sum extinguishes all the individual's rights to receive scheme benefits in respect of the deceased.

Chapter 3 — Children's pensions

Children’s pensions

62

(1) A pension (a “children's pension”) is to be paid in respect of any period during which there are eligible children of any scheme member who dies.

(2) The annual children's pension so payable is—

(a) when a partner's pension is also payable, amount A,

(b) when no partner's pension is payable, amount B.

(3) Amount A is—

(a) where there is one eligible child, 1/4 of the deceased's scheme pension entitlement,

(b) where there are two or more eligible children, 3/8ths of deceased's scheme pension entitlement.

(4) Amount B is—

(a) where there is one eligible child entitled to receive the pension, 5/16ths of the deceased's scheme pension entitlement,

(b) where there are two or more eligible children entitled to receive the pension, 5/8ths of deceased's scheme pension entitlement.

Eligible children

63

(1) A “child”, in relation to a deceased individual, includes—

(a) an adopted child, and

(b) a stepchild who, when the deceased died, was—

(i) financially dependant on the deceased, or

(ii) dependant on the deceased because of physical or mental impairment.

(2) A deceased's child is an “eligible child” for any period starting on or after the date of the deceased's death during which any of the following conditions are met—

Condition 1	The child is born and aged 17 or under.
Condition 2	The child—is aged over 17 but under 23,was, when the deceased died—financially dependant on the deceased, oraged 17 or under, andwould, in the opinion of the Fund trustees, be financially dependant on the deceased had the deceased survived.
Condition 3	The child—was dependant on the deceased because of physical or mental impairment when he or she died, andwould, in the opinion of the Fund trustees, still be so dependant had the deceased survived.

Payment of children’s pension

64

(1) A children's pension is payable—

(a) from the start of the first period in respect of which rule 62(1) requires it to be paid, and

(b) during the rest of that period (and any subsequent period in respect of which that rule requires it to be paid).

(2) It is for the Fund trustees to decide to who a children's pension (or any part of it) is to be paid.

(3) Where a children's pension (or any part of it) is paid to a person other than the eligible children in respect of whom it is paid (the “intended beneficiaries”), the recipient must—

(a) apply such proportion of the amount paid as the Fund trustees may direct for the benefit of each intended beneficiary, or

(b) where no direction is made, apply the amount paid (without discretion) for the benefit of the intended beneficiaries.

(4) If the recipient does not so apply a pensions payment (or any part of it), the Fund trustees may—

(a) recover the misappropriated amount from the recipient, and

(b) take such action as they think fit in order to ensure that any recovered amount is applied for the benefit of the intended beneficiary.

For example, the Fund trustees may deduct an amount equal to the misappropriated amount from any future amount to be paid to the recipient under the scheme.

(5) The Fund trustees may withhold payment of a children's pension (or any part of it) if they are not satisfied that arrangements are in place to ensure that it will be applied for the benefit of the intended beneficiary.

Any withheld amounts are to be paid as soon as the Fund trustees are satisfied that such arrangements are in place.

(6) Pension payments need not begin unless the Fund trustees have received—

(a) notice of an eligible child's entitlement, and

(b) such information as they may reasonably require—

(i) about the eligible child's entitlement to any other pension,

(ii) to calculate their liability for a lifetime allowance charge or any other tax,

(iii) to make the payments.

This rule does not affect the date from which a children's pension is payable.

(7) Pension payments are to be made monthly in arrears (or in other instalments of no longer than one year as the Fund trustees may determine).

Part K — Lump sum death benefits

Death in service lump sum

65

(1) The Fund trustees may pay a lump sum (a “death in service lump sum”) on the death of a participating member—

(a) to the deceased's nominee, or

(b) where there is no such nominee, to the deceased's personal representatives.

But they may do so only if satisfied that, if paid, the death in service lump sum would be a “defined benefits lump sum death benefit” for the purposes of Part 2 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) A death in service lump sum is to be the greater of—

(a) 4 times the participating member's annual salary at the time of death, or

(b) the scheme member contributions, with interest, paid before death.

Nominations for death in service lump sum

66

(1) A participating member may nominate any person as his or her nominee by giving notice to the Fund trustees in such form as they may require. Such a nomination may—

(a) nominate 2 or more persons, and

(b) where it does so, may specify the proportion of any death in service lump sum which is to be paid to each nominee.

(2) A participating member may withdraw a nomination at any time by giving notice to the Fund trustees in such form as they may require.

(3) A nomination in force when the participating member dies is invalid in so far as—

(a) it nominates an individual who was the participating member's partner when the nomination was made but was not his or her partner when he or she died, or

(b) the Fund trustees consider that it would not be reasonably practicable to pay a death in service lump sum to a nominee.

(4) The proportion of any death in service lump sum which would, but for rule 66(3), have been paid to invalidated nominees is to be paid to the deceased's personal representatives.

Deferred pensioner lump sum

67

(1) A lump sum (a “deferred pensioner lump sum”) is to be paid to the personal representatives of a deferred pensioner who dies while aged under 75 leaving no—

(a) surviving partner, or

(b) surviving child who, at the time of death, is an eligible child or is unborn.

But such a payment may be made only if the Fund trustees are satisfied that, if paid, the deferred pensioner lump sum would be a “defined benefits lump sum death benefit” for the purposes of Part 2 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) A deferred pensioner lump sum is to be equal to the amount of scheme member contributions, with interest, made by a deferred pensioner.

Part L — 5 year guarantee

Initial pension period

68

A scheme pensioner's “initial pension period” is the period of 5 years beginning on the day on which he or she is first entitled to receive a scheme pension (not counting any intervening period of less than 5 years in which pension payments are suspended under rule 41 or reduced under rule 44).

Guaranteed pension for surviving partner

69

(1) Where a scheme pensioner dies during his or her initial pension period and leaves a surviving partner—

(a) the surviving partner's entitlement to be paid a partner's pension is suspended for the remainder of the initial pension period, and

(b) the deceased's scheme pension is to continue to be paid for the remainder of his or her initial pension period (but is to be paid to the surviving partner instead of to the deceased).

(2) Where a children's pension is payable in respect of the deceased, the pension payable under this rule is to be reduced—

(a) for the 3 months following death, by the amount of children's pension payable to the surviving partner during that period, and

(b) for the remainder of the initial pension period, by the total amount of children's pension payable during that period.

(3) Where the surviving partner dies during the deceased's initial pension period, the pension payable under this rule is to be paid to the surviving partner's personal representatives.

Guaranteed lump sum where scheme pensioner dies aged under 75 with no surviving partner

70

(1) A lump sum (a “guaranteed lump sum”) is to be paid to the personal representatives of any scheme pensioner who—

(a) dies before the end of his or her initial pension period,

(b) was aged under 75 when he or she died, and

(2) A guaranteed lump sum is to be equal to—

(a) the amount of scheme pension which would have been paid to the deceased from time of death until the end of his or her initial pension period, less

(b) the amount of children's pension (if any) which the Fund trustees consider likely to be payable from that time until the end of that period.

(3) An additional lump sum is to be paid to the deceased's personal representatives if the Fund trustees consider that the amount of any guaranteed lump sum (or any previous additional lump sum) should have been more than the amount paid (because they have revised their estimate of the amount of children's pension which they consider likely to be payable).

(4) An additional lump sum is to be equal to the difference between the amount of the guaranteed lump sum (together with any previous additional lump sum) and the amount which the Fund trustees consider should have been paid.

(5) A guaranteed lump sum or additional lump sum may be paid under this rule only if the Fund trustees are satisfied that, if paid, the lump sum would be a “defined benefits lump sum death benefit” for the purposes of Part 2 of Schedule 29 to the Finance Act 2004 (c. 12).

Guaranteed pension where scheme pensioner dies aged 75 or over with no surviving partner

71

(1) Where a scheme pensioner—

(a) dies before the end of his or her initial pension period,

(b) was aged 75 or over when he or she died, and

the deceased's scheme pension is to continue to be paid for the remainder of his or her initial pension period (and is to be paid to the deceased's personal representatives).

(2) A pension payable under this rule is to be reduced by the amount of any children's pension payable during the same period.

Part M — Short service refunds

Payment of short service refunds

72

(1) A sum (a “short service refund”) is to be paid to an individual if the following conditions are met—

Condition 1	The individual is no longer a participating member.
Condition 2	The individual is not a scheme pensioner.
Condition 3	The individual has fewer than 3 months total reckonable service.
Condition 4	The individual has applied to the Fund trustees for payment of a short service refund.
Condition 5	The Fund trustees are satisfied that, if paid, the full amount of the short service refund will be a “short service refund lump sum” for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12).

(2) A short service refund is to be equal to—

(a) the amount of scheme member contributions paid by the individual, less

(b) the amount of any contributions equivalent premium paid in respect of the individual (see section 55(2) of the Pension Schemes Act 1993 (c. 48)).

Extinction of scheme benefits

73

Payment of a short service refund extinguishes the rights of all persons to receive scheme benefits in respect of the recipient.

Part N — Transfers

Chapter 1 — Transfers out

Statement of entitlement

74

(1) An individual's “transferable sum” is the amount of cash equivalent set out in a statement of entitlement which the Fund trustees provide to the individual under section 93A of the Pension Schemes Act 1993 (c. 48) (but see rules 76 to 78 which provide for enhancement and reduction of transferable sums).

(2) That section applies for the purposes of the scheme in relation to an individual who—

(a) is aged 64 or over, and

(b) stopped being a participating member no longer than 6 months ago,

in the same way as it applies in relation to an individual aged under 64.

Transfers to other pension schemes

75

An individual's transferable sum must be transferred from the Pension Fund if the following conditions are met—

Enhancement of transferable sum

76

(1) A transferable sum of less than amount A is to be increased to amount A.

(2) Amount A, in relation to an individual, means the total of—

(a) the individual's scheme member contributions,

(b) any transfer-in sums paid into the Pension Fund in relation to the individual, and

Reduction of transferable sum

77

Where section 96(2) of the Pension Schemes Act 1993 (c. 48) applies in relation to a transfer under rule 75, the Fund trustees may reduce the transferable sum by an amount equal to the proportion of that sum which represents the individual's accrued rights—

(a) to a guaranteed minimum pension, or

(b) attributable to service in contracted-out employment (within the meaning of section 8 of the Pension Schemes Act 1993 (c. 48)).

Transfer payment

78

(1) Where rule 75 requires a transfer to be made, the transferable sum is to be paid from the Pension Fund in the way specified in the transfer-out notice by no later than—

(a) the individual's 65th birthday, or

(b) if later, the day falling 6 months after the transfer notice was given.

(2) If payment is made later than 6 months after the guarantee date relating to the statement of entitlement by reference to which the transferable sum was determined, the transferable sum is to be increased by—

(a) the amount, if any, by which it falls short of what the transferable sum would have been if the guarantee date had been the date of payment, or

(b) if greater, the amount of interest on the transferable sum calculated on a daily basis over the period from the guarantee date to the date of payment (calculated at an annual rate of 1% above the Bank of England base rate).

Time limits

79

The Fund trustees may extend any time limit set out in this Chapter in relation to a particular transfer if they think it reasonable to do so.

Extinction of scheme benefits

80

A transfer under rule 75 extinguishes the rights of all persons to receive scheme benefits in respect of the individual (other than any accrued rights in respect of which the transferable sum was reduced under rule 77).

Chapter 2 — Transfers in

Transfer in

81

A sum (a “transfer-in sum”) may be paid from another pension scheme into the Pension Fund in relation to a participating member if the following conditions are met—

Effect of transfer in

82

(1) The reckonable service of any participating member in respect of whom a transfer-in sum is paid into the Pension Fund is to be increased as follows—

(a) where the participating member is an MSP member, the participating member's reckonable service as an MSP is to be increased by an amount determined by the Fund trustees,

(b) where the participating member is an office-holder member but not an MSP—

(i) the participating member's reckonable service as an office-holder is to be increased by an amount determined by the Fund trustees, and

(ii) that increase is, for the purposes of rule 39(3), to be attributed to the period in office being served when the transfer-in sum is paid.

(2) The increased period of reckonable service is, for the purposes of rule 38(1) or, as the case may be, 39(3), to be treated as a period during which higher rate scheme member contributions were made.

(3) The Fund trustees must determine the amount by which a participating member's reckonable service is to be so increased—

(a) as at the date on which the transfer-in sum is paid into the Fund, and

(b) in accordance with guidance and tables prepared by the scheme actuary.

Limitation on transfers in

83

(1) A transfer-in sum is not to be paid if the Fund trustees consider that the corresponding increase in reckonable service, when taken with the participating member's anticipated reckonable service, would (but for rule 38(2) or 39(4)) entitle the participating member to—

(a) an annual MSP pension of more than the individual's annual MSP pension cap, or

(b) an annual office-holder pension of more than the individual's annual office-holder pension cap.

(2) An applicant's “anticipated reckonable service” is the reckonable service as an MSP or, as the case may be, office-holder which the participating member would obtain if he or she—

(a) continued as an MSP member (and continued making scheme member contributions at the same rate) until the next ordinary general election day, or (as the case may be)

(b) continued to hold the same office and to be an office-holder member (and continued making scheme member contributions at the same rate) until the next ordinary general election day (or such other day as the Fund trustees may determine).

Part O — Added years

Added years

84

(1) A participating member may increase his or her reckonable service by buying added years in accordance with this Part.

(2) Added years can be bought as years and as fractions of years.

(3) An individual who is an MSP member may apply to buy added years in respect of reckonable service as an MSP only.

(4) An individual who is an office-holder member but not an MSP may apply to buy added years in respect of reckonable service as an office-holder only.

Buying added years by instalments

85

(1) The Fund trustees may accept a participating member's application to buy added years by monthly instalments payable if the following conditions are met—

Condition 1	The application states the number of added years which the applicant wishes to buy.
Condition 2	The application states whether the applicant wishes to pay instalments for a period ending on—his or her 65th birthday, orthe next ordinary general election day.
Condition 3	The applicant has satisfied the Fund trustees that he or she is in good health.
Condition 4	The applicant has given the Fund trustees any information that they reasonably require in relation to the application.
Condition 5	Rule 89 does not require the Fund trustees to reject the application.

(2) An accepted application is revocable by the member giving notice to the Fund trustees .

(3) The person responsible for paying the participating member's salary must—

(a) deduct instalments from each salary payment made from the first day of the month following acceptance until the end of the period for which instalments are payable, and

(b) pay them to the Fund trustees.

(4) The amount of the instalments is to be determined—

(a) by the scheme actuary, or

(b) by the Fund trustees in accordance with guidance or tables prepared by the scheme actuary.

(5) On payment of the last instalment, the participating member's reckonable service as an MSP or, as the case may, as an office-holder is increased by the number of added years bought.

(6) The increased period of reckonable service is, for the purposes of rule 38(1) or, as the case may be, 39(3), to be treated as a period during which higher rate scheme member contributions were made.

(7) Where added years are bought by an office-holder member who is not an MSP, the increase in reckonable service is, for the purposes of rule 39(3), to be attributed to the period in office being served when the added years are bought.

Interruption of service

86

(1) This rule applies—

(a) where an MSP member buying added years by monthly instalments stops being an MSP before paying the last instalment, and

(b) where an office-holder member (who is not an MSP) buying added years by monthly instalments stops holding his or her current office (or becomes an MSP) before paying the last instalment.

(2) Where this rule applies no more instalments are payable and the individual's reckonable service as an MSP or, as the case may be, office-holder is increased—

(a) where the individual died or left the scheme in circumstances entitling him or her to a serious ill-health pension, by the number of added years by which it would have increased if all the instalments had been paid, or

(b) where the individual leaves the scheme in any other circumstance, by a number of added years calculated as follows—

$$A×BC$where—“A” is the number of added years the individual applied to buy,“B” is the period (in days) in respect of which instalments have been paid, and“C” is the period (in days) for which instalments would have been paid had the individual remained in the scheme continuously.$

Resumption of service as MSP member

87

(1) This rule applies where—

(a) an MSP member's application to buy added years by monthly instalments is accepted by the Fund trustees but the individual concerned stops being an MSP member before paying the last instalment,

(b) the individual subsequently rejoins the scheme as an MSP member before the end of the period for which instalments were originally payable, and

(c) the individual, within 3 months of so rejoining, notifies the Fund trustees of his or her intention to resume paying instalments.

(2) Where this rule applies—

(a) instalments (of the same amount as before) are payable from the day on which the individual rejoined the scheme until the end of the period for which instalments were originally payable,

(b) the individual's reckonable service as an MSP is reduced by the amount by which it was previously increased under rule 86(2), and

(c) when the last instalment is paid (or, if earlier, when the individual next leaves the scheme), the individual's reckonable service as an MSP is increased by a number of added years calculated as follows—

$$A×BC$where—“A” is the number of added years the individual applied to buy,“B” is the total of the periods (in days) before and after the break in service in respect of which instalments have been paid, and“C” is the period (in days) for which instalments would have been paid had the individual remained in the scheme continuously.$

Buying added years by lump sum

88

(1) The Fund trustees may accept a participating member's application to buy added years by lump sum if the following conditions are met.

Condition 1	The application states the number of added years which the applicant wishes to buy.
Condition 2	The applicant has satisfied the Fund trustees that he or she is in good health.
Condition 3	The applicant has given the Fund trustees any information that they reasonably require in relation to the application.
Condition 4	Rule 89 does not require the Fund trustees to reject the application.

(2) The lump sum is payable by the participating member during the period of 6 months following acceptance (and the right to buy added years in pursuance of an accepted application is extinguished at the end of that period).

(3) The amount of the lump sum is to be determined by the Fund trustees by reference to the MSP's or, as the case may be, the office-holder's salary on the day he or she applied to buy added years.

(4) Such a determination must be—

(a) certified by the scheme actuary, or

(b) made in accordance with guidance or tables prepared by the scheme actuary.

(5) On payment of the lump sum, the participating member's reckonable service as an MSP or, as the case may, as an office-holder is increased by the number of added years bought.

(6) The increased period of reckonable service is, for the purposes of rule 38(1) or, as the case may be, 39(3), to be treated as a period during which higher rate scheme member contributions were made.

(7) Where added years are bought by an office-holder member who is not an MSP, the increase in reckonable service is, for the purposes of rule 39(3), to be attributed to the period in office being served when the added years are bought.

Limitations on buying added years

89

(1) The Fund trustees must reject an application to buy added years if the corresponding increase in reckonable service, when taken with the applicant's anticipated reckonable service, would (but for rule 38(2) or 39(4)) entitle the applicant to—

(a) an annual MSP pension of more than the individual's annual MSP pension cap, or

(b) an annual office-holder pension of more than the individual's annual office-holder pension cap.

(2) An applicant's “anticipated reckonable service” is the reckonable service as an MSP or, as the case may be, office-holder which the applicant would obtain if he or she—

(a) continued as an MSP member (and continued making scheme member contributions at the same rate) until—

(i) where applying to buy by monthly instalments, the end of the period for which instalments are payable, or

(ii) where applying to buy by lump sum, the next ordinary general election day, or

(b) continued to hold the same office and to be an office-holder member (and continued making scheme member contributions at the same rate) until—

(i) where applying to buy by monthly instalments, the end of the period for which instalments are payable, or

(ii) where applying to buy by lump sum, the next ordinary general election day (or such other day as the Fund trustees may determine).

(3) The Fund trustees must reject an application to buy added years if they consider—

(a) that an annual allowance charge may arise under section 227 of the Finance Act 2004 (c. 12) in respect of the applicant in any tax year in which an instalment or lump sum would be payable if the application were accepted,

(b) that a lifetime allowance charge may arise under section 214 of the Finance Act 2004 (c. 12) in respect of the applicant (or may so arise if the application were accepted), or

(i) the amount which the applicant would pay for added years in any tax year, and

(ii) the amount of scheme member contributions to be made by the applicant in that year,

would exceed 20% of the salary payments to be made to the applicant in that year.

Multiple applications

90

The Fund trustees may accept more than one application by a participating member to buy added years by instalment or lump sum (and may, in particular, accept two or more applications to buy added years by instalments payable in overlapping periods).

Pension credit members

91

(1) A “pension credit member” is an individual on whom rights are conferred by the Fund trustees in accordance with paragraph 1(2) of Schedule 5 to the Welfare Reform and Pensions Act 1999 (c. 30).

(2) It is for the Fund trustees to determine the benefits to which a pension credit member is to be entitled. But those benefits may consist only of—

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