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The Local Government Pension Scheme (Scotland) Regulations 2018

Type Scottish-Statutory-Instrument

Publication 2018-05-01

Last updated 2025-04-02

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(3) If the Scheme employer is not the member's appropriate administering authority, it must first obtain that authority's approval of its choice of IRMP.

(4) The Scheme employer and IRMP must have regard to guidance given by the Scottish Ministers when carrying out their functions under this regulation and regulation 36 (early payment of retirement pension on ill-health grounds: deferred members).

Early payment of retirement pension on ill-health grounds: deferred members

36

(1) A deferred member who, because of ill-health or infirmity of mind or body—

(a) becomes permanently incapable of discharging efficiently the duties of the employment that member was engaged in at the date the member became a deferred member; and

(b) is unlikely to be capable of undertaking gainful employment before normal pension age,

may ask to receive payment of a retirement pension whatever the member's age.

(2) A request under paragraph (1) must be made in writing to the deferred member's appropriate administering authority.

(3) Before determining whether or not to agree to a request under paragraph (1), the deferred member's appropriate administering authority must obtain a certificate from an IRMP as to—

(a) whether the member is suffering from a condition that renders the member permanently incapable of discharging efficiently the duties of the employment the member was engaged in because of ill-health or infirmity of mind or body; and, if so

(b) whether as a result of that condition the member is unlikely to be capable of undertaking gainful employment before reaching normal pension age.

Calculation of ill-health pension amounts

37

(1) Subject to paragraphs (5) and (6), Tier 1 benefits are calculated by adjusting the active member's pension account as follows—

(a) an amount is added to the balance in the account for the year in which the member's employment was terminated, equivalent to the amount of earned pension the member would have accrued between the day following the date of termination and normal pension age, if that member had been treated as receiving assumed pensionable pay, calculated in accordance with regulation 21(4) (assumed pensionable pay) or, as appropriate regulation 21(7) for each year and fraction of a year in that period and treating any election under regulation 10 (temporary reduction in contributions) as lapsed at the date of the termination of the member's employment; and

(b) retirement pension is payable to the member as if the member had reached normal pension age on the date the member's employment was terminated.

(2) Subject to paragraphs (5) and (6), Tier 2 benefits are calculated by adjusting the active member's pension account as follows—

(a) for the year in which the member's employment was terminated, one quarter of the sum calculated in accordance with paragraph (1)(a) is added; and

(b) retirement pension is payable to the member as if the member had reached normal pension age on the date the member's employment was terminated.

(3) Benefits payable under regulation 36 (early payment of retirement pension on ill-health grounds: deferred members) are the retirement pension that would be payable to the member as if that member had reached normal pension age on the date the member made a request under regulation 36.

(4) Where a member entitled to Tier 1 benefits subsequently becomes an active member, no addition is to be made under paragraph (1)(a) or (2)(a) to any Tier 1 or Tier 2 benefits that the member becomes entitled to after that subsequent period of membership.

(5) Where a member entitled to Tier 2 benefits (“the initial ill-health retirement”) subsequently becomes an active member, the addition made under paragraph (1)(a) or (2)(a) to any Tier 1 or Tier 2 benefits that the member becomes entitled to after that subsequent period of membership is modified in accordance with paragraph (6).

(6) The number of years for which a member to whom paragraph (5) applies is treated as having received assumed pensionable pay for the purposes of paragraph (1)(a) or (2)(a) shall not exceed—

(a) the number of years at the date of the initial ill health retirement up to normal pension age; less

(b) a quarter of the number of years calculated in accordance with sub-paragraph (a); less

(7) No adjustment is to be made to any sum by virtue of regulation 21(8) for any period after the date of termination of employment under regulation 34 (early payment of retirement pension on ill-health grounds: active members).

(8) For the purposes of this regulation, regulations 38, 39 and 40, in calculating assumed pensionable pay in accordance with regulation 21(4) (assumed pensionable pay), no account is to be taken of any reduction in the pensionable pay the member incurred if the member was working reduced contractual hours as a consequence of ill-health or infirmity of mind or body.

Survivor benefits

Death grants: active members

38

(1) If an active member dies before attaining the age of 75, the appropriate administering authority shall pay a death grant.

(2) The administering authority may, at its absolute discretion, pay the death grant to or for the benefit of the member's nominee, personal representatives or any person appearing to the authority to have been a relative or dependent of the member.

(3) The death grant is the amount of 3 times the member's annual assumed pensionable pay calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death or, if higher, the aggregate of the amount of any death grant payable under regulation 41 (death grants: deferred members and pension credit members) and the amount of any death grant payable under regulation 44 (death grants: pensioner members).

Survivor benefits: partners of active members

39

(1) If an active member dies leaving a surviving spouse, civil partner or cohabiting partner, that person is entitled to a pension which shall come into payment on the day following the member's death.

(2) The appropriate administering authority shall close the active member's pension account and shall open a survivor member's pension account from the day following the member's death.

(3) The opening balance of the survivor member's pension account is the amount of pension payable to the survivor calculated in accordance with paragraph (4).

(4) The amount of a pension payable under paragraph (3) is calculated by adding together the amounts in sub-paragraphs (a) and (b)—

(a) the pension that the member would have been entitled to draw , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(i) the member had been entitled to draw a pension on the date of the member's death;

(ii) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment either relating to the age at which it was drawn or following a Scheme pays election;

(iii) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(iv) the member's earned pension had accrued at a rate of 1/160th of pensionable pay; and

(v) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160; ...

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) For the purposes of sub-paragraph (a), if the member died in the period beginning with 1 April and ending with 5 April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date,

(b) a sum equivalent to 1/160th of the member's annual assumed pensionable pay calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death, for each year or fraction of a year between the date of the member's death and the member's normal pension age.

(5) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraph (4)(a)(iii) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(6) The balance in the survivor member's pension account at the end of the Scheme year in which the survivor member's account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member's account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s account was opened, in accordance with guidance issued by the Scottish Ministers.

(7) The ... balance calculated under paragraph (3) is the opening balance of the survivor member's pension account for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (6), thereafter, the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 applied.

(7A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

(8) If there is more than one surviving spouse, they become jointly entitled in equal shares under paragraph (1).

Survivor benefits: children of active members

40

(1) If an active member dies leaving one or more eligible children, they are entitled to a children's pension which shall come into payment on the day following the member's death.

(2) If a pension is payable to a partner of an active member under regulation 39(1), the appropriate administering authority shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(3) The opening balance of a survivor member's pension account opened under paragraph (2) is the amount of pension payable to the eligible child or children calculated in accordance with paragraph (4) or (5), but if the pension payable under regulation 39(1) ceases to be paid, the pension payable to the eligible child or children is recalculated in accordance with paragraph (9) or (10) as from the day following the date the pension under regulation 39(1) ceased to be paid.

(4) The amount of pension payable under paragraph (3) where there is only one such child is calculated by adding together the amounts in sub-paragraphs (a) and (b)—

(a) the pension that the member would have been entitled to draw , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(i) the member had been entitled to draw a pension on the date of the member's death;

(ii) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn, or following a Scheme pays election, or any pension debit applied on account of a pension sharing order;

(iii) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(iv) the member's earned pension had accrued at a rate of 1/320th of pensionable pay; and

(v) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/320; ...

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1 April and ending with 5 April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date,

(b) a sum equivalent to 1/320th of the member's annual assumed pensionable pay calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death, for each year or fraction of a year between the date of the member's death and the member's normal pension age.

(5) The amount of pension payable under paragraph (3) where there is more than one such child, is calculated by adding together the amounts in sub-paragraphs (a) and (b), and is payable to those children in equal shares—

(a) the pension that the member would have been entitled to draw , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(i) the member had been able to draw a pension on the date of the member's death;

(ii) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial reduction relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(iii) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(iv) the member's earned pension had accrued at a rate of 1/160th of pensionable pay; and

(v) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160; ...

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1 April and ending with 5 April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date,

(b) a sum equivalent to 1/160th of the member's annual assumed pensionable pay calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death, for each year or fraction of a year between the date of the member's death and the member's normal pension age.

(6) At the point at which the number of eligible children is reduced to one, if a pension is still payable to a surviving partner under regulation 39(1), the pension payable to that eligible child is recalculated in accordance with paragraph (4) as from the day following the date the other eligible child's or children's pension ceased to be paid.

(7) If, on the day following the member's death, no pension is payable to a partner of an active member under regulation 39(1), the appropriate administering authority shall close the active member's pension account and shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(8) The opening balance of a survivor member's pension account opened under paragraph (7) is the amount of pension payable to the eligible child or children, calculated in accordance with paragraph (9) or (10).

(9) The amount of pension payable under paragraph (8) where there is only one such child is calculated by adding together the amounts in paragraphs (a) and (b)—

(a) the pension that the member would have been entitled to draw , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(i) the member had been entitled to draw a pension on the day the member died;

(ii) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(iii) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(iv) the member's earned pension had accrued at a rate of 1/240th of pensionable pay; and

(v) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/240; ...

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1 April and ending with 5 April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date,

(b) a sum equivalent to 1/240th of the member's annual assumed pensionable pay, calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death, for each year or fraction of a year between the date of the member's death and the member's normal pension age.

(10) The amount of pension payable under paragraph (8) where there is more than one such child, is calculated by adding together the amounts in paragraphs (a) and (b), and is payable to those children in equal shares—

(a) the pension that the member would have been entitled to draw , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(i) the member had been entitled to draw a pension on the date the member died;

(ii) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(iii) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(iv) the member's earned pension had accrued at a rate of 1/120th of pensionable pay; and

(v) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/120; ...

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1 April and ending with 5 April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date,

(b) a sum equivalent to 1/120th of the member's annual assumed pensionable pay, calculated in accordance with regulation 21(4) or, as appropriate, regulation 21(9), as at the date of the member's death, for each year or fraction of a year between the date of the member's death and the member's normal pension age.

(11) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraphs (4)(a)(iii), (5)(a)(iii), (9)(a)(iii) and (10)(a)(iii) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(12) At the point at which the number of eligible children is reduced to one, the pension payable to that child is recalculated in accordance with paragraph (9).

(13) The balance in the survivor member's pension account at the end of the Scheme year in which the survivor member's account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member's account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s account was opened, in accordance with guidance issued by the Scottish Ministers.

(14) The ... balance calculated under paragraph (3) or (8) is the opening balance of the survivor member's pension account for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (13), thereafter, the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 applied.

(15) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

Death grants: deferred members and pension credit members

41

(1) If a deferred member dies before attaining the age of 75, the appropriate administering authority shall pay a death grant.

(2) The administering authority may, at its absolute discretion, pay the death grant to or for the benefit of the member's nominee, personal representatives or any person appearing to the authority to have been a relative or dependent of the member.

(3) The death grant is the amount the member would have been entitled to receive as retirement pension annually , excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014, if—

(a) the member had been able to draw a pension on the day the member died; ...

(b) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn, and

(c) it included any deferred guarantee amount calculated under regulation 4N of the Transitional Provisions and Savings Regulations 2014.

multiplied by 5.

(3A) In paragraph (3) “deferred guarantee amount” has the meaning given in regulation 4N(3) of the Transitional Provisions and Savings Regulations 2014.

(3B) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(4) This regulation applies to pension credit members (including persons entitled to a pension credit who die before the appropriate administering authority awards a pension credit) as it applies to deferred members with the modification that for the amount of death grant calculated under paragraph (3), the amount calculated under paragraph (3)(a) and (b) is multiplied by 5 , and paragraph (3B) does not apply.

Survivor benefits: partners of deferred members

42

(1) If a deferred member dies leaving a surviving spouse, civil partner or cohabiting partner, that person is entitled to a pension which shall come into payment on the day following the member's death.

(2) The appropriate administering authority shall close the deferred member's pension account and shall open a survivor member's pension account from the day following the member's death.

(3) The opening balance of the survivor member's pension account is the amount of pension payable to the survivor calculated in accordance with paragraph (4).

(4) The amount of a pension payable under paragraph (3) is calculated by adding together the pension that the member would have been entitled to draw excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014 if—

(a) the member had been able to draw a pension on the date the member died;

(b) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment either relating to the age at which it was drawn or following a Scheme pays election;

(c) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(d) the member's earned pension had accrued at a rate of 1/160th of pensionable pay; and

(e) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160; ...

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(5) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraph (4)(c) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(6) If the member ceased to be an active member, became a deferred member and died all within the same Scheme year, the balance in the survivor member's pension account at the end of the Scheme year in which the survivor member's account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member's account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s account was opened, in accordance with guidance issued by the Scottish Ministers.

(7) Where—

(a) paragraph (6) applies, the ... balance calculated under paragraph (3) is the opening balance of the survivor member's pension account for the following Scheme year , and the revaluation adjustment is applied to the balance in accordance with paragraph (6);

(b) paragraph (6) does not apply, the balance under paragraph (3) is the opening balance of the survivor member's pension account for the following Scheme year,

and, thereafter, the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 applied.

(7A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

(8) If there is more than one surviving spouse, they become jointly entitled in equal shares under paragraph (1).

Survivor benefits: children of deferred members

43

(1) If a deferred member dies leaving one or more eligible children, they are entitled to a children's pension which shall come into payment on the day following the member's death.

(2) If a pension is payable to a partner of a deferred member under regulation 42(1) (survivor benefits: partners of deferred members), the appropriate administering authority shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(3) The opening balance of a survivor member's pension account opened under paragraph (2) is the amount of pension payable to the eligible child or children calculated in accordance with paragraph (4) or (5) but if the pension payable under regulation 42(1) ceases to be paid, the pension payable to the eligible child or children is recalculated in accordance with paragraph (9) or (10) as from the day following the date the pension under regulation 42(1) ceased to be paid.

(4) The amount of pension payable under paragraph (3) where there is only one such child is calculated by adding together the pension that the member would have been entitled to draw excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014 if—

(a) the member had been entitled to draw a pension on the date the member died;

(b) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(c) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(d) the member's earned pension had accrued at a rate of 1/320th of pensionable pay; and

(e) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/320; ...

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(5) The amount of pension payable under paragraph (3) where there is more than one such child, is payable to those children in equal shares and is calculated by adding together the pension that the member would have been entitled to draw excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014 if—

(a) the member had been entitled to draw a pension on the date the member died;

(b) the pension the member would have been able to draw on the date the member died had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(c) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(d) the member's earned pension had accrued at a rate of 1/160th of pensionable pay; and

(e) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160; ...

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5A) For the purposes of paragraph (5), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(6) At the point at which the number of eligible children is reduced to one, if a pension is still payable to a surviving partner under regulation 42(1), the pension payable to that eligible child is recalculated in accordance with paragraph (4) as from the day following the date the other eligible child's or children's pension ceased to be paid.

(7) If, on the day following the member's death, no pension is payable to a partner of a deferred member under regulation 42(1), the appropriate administering authority shall close the deferred member's pension account and shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(8) The opening balance of a survivor member's pension account opened under paragraph (7) is the amount of pension payable to the eligible child or children, calculated in accordance with paragraph (9) or (10).

(9) The amount of pension payable under paragraph (8) where there is only one such child is calculated by adding together the pension that the member would have been entitled to draw excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014 if—

(a) the member had been entitled to draw a pension on the date the member died;

(b) the pension the member would have been able to draw on that date had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(c) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(d) the member's earned pension had accrued at a rate of 1/240th of pensionable pay; and

(e) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/240; ...

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9A) For the purposes of paragraph (9), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(10) The amount of pension payable under paragraph (8) where there is more than one such child, is payable to those children in equal shares and is calculated by adding together the pension that the member would have been entitled to draw excluding any final guarantee amount under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014 if—

(a) the member had been entitled to draw a pension on the date the member died;

(b) the pension the member would have been able to draw on the date the member died had not been subject to any restriction on the age at which it could be drawn, or actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(c) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(d) the member's earned pension had accrued at a rate of 1/120th of pensionable pay; and

(e) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/120; ...

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10A) For the purposes of paragraph (10), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member and became a deferred member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(11) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraphs (4)(c), (5)(c), (9)(c) and (10)(c) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(12) At the point at which the number of eligible children is reduced to one, the pension payable to that child is recalculated in accordance with paragraph (9) as from the day following the date the other eligible child’s or children’s pension ceased to be paid.

(13) If the member ceased to be an active member, became a deferred member and died all within the same Scheme year, the balance in the survivor member’s pension account at the end of the Scheme year in which the survivor member’s account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member’s account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the survivor account was opened, in accordance with guidance issued by the Scottish Ministers.

(14) Where—

(a) paragraph (13) applies, the ... balance calculated under paragraph (3) or (8) is the opening balance of the survivor member’s pension account for the following Scheme year and the revaluation adjustment is applied to the balance in accordance with paragraph (13);

(b) paragraph (13) does not apply, the balance under paragraph (3) or (8), as the case may be, is the opening balance of the survivor member’s pension account for the following Scheme year,

(15) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

Death grants: pensioner members

44

(1) If a pensioner member dies before attaining the age of 75 the appropriate administering authority shall pay a death grant.

(2) The administering authority may, at its absolute discretion, pay the death grant to or for the benefit of the member's nominee, personal representatives or any person appearing to the authority to have been a relative or dependent of the member.

(3) Subject to paragraph (4), the death grant is the amount of 10 times the annual amount the member would have been entitled to receive as retirement pension at the date of death if there had been no commutation under regulation 32 (election for lump sum instead of pension), but the amount so calculated is reduced by the amounts of any such commuted lump sum and any retirement pension paid to the member.

(4) Where any pension paid to a member derived from a pension credit, the death grant is the amount of 10 times the annual amount the member would have been entitled to receive as that pension at the date of death if there had been no commutation under regulation 32 (election for lump sum instead of pension), reduced by the amounts of any such commuted lump sum and any pension paid to the member.

(5) For the purposes of a death grant payable in accordance with paragraph (3) (but not for the purposes of a death grant derived from a pension credit payable in accordance with paragraph (4)), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension the member would have been entitled to receive as retirement pension at the date of death is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

Survivor benefits: partners of pensioner members

45

(1) If a pensioner member (other than a pensioner member where the pension the member was in receipt of was derived from a pension credit) dies leaving a surviving spouse, civil partner or cohabiting partner, that person is entitled to a pension which shall come into payment on the day following the member's death.

(2) The appropriate administering authority shall close the pensioner member's pension account and shall open a survivor member's pension account from the day following the member's death.

(3) The opening balance of the survivor member's pension account is the amount of pension payable to the survivor calculated in accordance with paragraph (4).

(4) The amount of a pension payable under paragraph (3) is calculated by adding together the pension that the member would have been entitled to draw on the date of the member's death if—

(a) the member's earned pension (including any amount added under regulations 37(1)(a) or 37(2)(a) (enhancement of member's Tier 1 and Tier 2 benefits)) had accrued at a rate of 1/160th of pensionable pay;

(b) the pension had not been subject to any actuarial adjustment relating either to the age at which it was drawn or following a Scheme pays election;

(d) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension);

(e) the pension included 49/160 of any additional pension purchased under regulation 17(7)(b)(i) (additional voluntary contributions) which included provision for a survivor's pension; and

(f) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(5) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraph (4)(d) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(6) If the member ceased to be an active member, became a pensioner member and died all within the same Scheme year, the balance in the survivor member's pension account at the end of the Scheme year in which the survivor member's account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member's account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the member became a pensioner member, in accordance with guidance issued by the Scottish Ministers.

(7) Where—

(a) paragraph (6) applies, the ... balance calculated under paragraph (3) is the opening balance of the survivor member's pension account for the following Scheme year and the revaluation adjustment is applied to the balance in accordance with paragraph (6);

(b) paragraph (6) does not apply, the balance under paragraph (3) is the opening balance of the survivor member's pension account for the following Scheme year,

(7A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

(8) If there is more than one surviving spouse, they become jointly entitled in equal shares under paragraph (1).

(9) The pension that the member would have been entitled to, for the purpose of calculating the amount of pension payable under paragraph (3), is not to include any final guarantee amount that has been added to the pension under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014.

Survivor benefits: children of pensioner members

46

(1) If a pensioner member (other than a pensioner member where the pension the member was in receipt of was derived from a pension credit) dies leaving one or more eligible children, they are entitled to a children's pension which shall come into payment on the day following the member's death.

(2) If a pension is payable to a partner of a pensioner member under regulation 45(1) (survivor benefits: partners of pensioner members), the appropriate administering authority shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(3) The opening balance of a survivor member's pension account opened under paragraph (2) is the amount of pension payable to the eligible child or children calculated in accordance with paragraph (4) or (5) but if the pension payable under regulation 45(1) ceases to be paid, the pension payable to the eligible child or children is recalculated in accordance with paragraph (9) or (10) from the day following the date the pension under regulation 45(1) ceased to be paid.

(4) The amount of pension payable under paragraph (3) where there is only one such child is calculated by adding together the pension that the member would have been entitled to draw on the date of the member's death if—

(a) the member's earned pension (including any amount added under regulations 37(1)(a) or 37(2)(a) (enhancement of member's Tier 1 and Tier 2 benefits)) had accrued at a rate of 1/320th of pensionable pay;

(b) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/320;

(c) the member's pension had not been subject to any actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(d) there had been no commutation under regulation 32 (election for lump sum instead of pension);

(e) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension); and

(f) the pension included 49/320 of any additional pension purchased under regulation 17(6)(b)(i) (additional voluntary contributions) which included provision for a survivor's pension; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(5) The amount of pension payable under paragraph (3) where there is more than one such child, is payable to those children in equal shares and is calculated by adding together the pension that the member would have been entitled to draw on the date of the member's death if—

(a) the member's earned pension (including any amount added under regulations 37(1)(a) or 37(2)(a) (enhancement of member's Tier 1 and Tier 2 benefits)) had accrued at a rate of 1/160th of pensionable pay;

(b) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/160;

(c) the member's pension had not been subject to any actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(d) there had been no commutation under regulation 32 (election for lump sum instead of pension);

(e) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension); and

(f) the pension included 49/160 of any additional pension purchased under regulation 17(6)(b)(i) (additional voluntary contributions) which included provision for a survivor's pension; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5A) For the purposes of paragraph (5), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(6) At the point at which the number of eligible children is reduced to one, if a pension is still payable to a surviving partner under regulation 45(1), the pension payable to that eligible child is recalculated in accordance with paragraph (4) as from the day following the date the other eligible child's or children's pension ceased to be paid.

(7) If, on the day following the member's death, no pension is payable to a partner of a pensioner member under regulation 45(1), the appropriate administering authority shall close the pensioner member's pension account and shall open a survivor member's pension account for the eligible child or children from the day following the member's death.

(8) The opening balance of a survivor member's pension account opened under paragraph (7) is the amount of pension payable to the eligible child or children, calculated in accordance with paragraph (9) or (10).

(9) The amount of pension payable under paragraph (8) where there is only one such child is calculated by adding together the pension that the member would have been entitled to draw on the date of the member's death if—

(a) the member's earned pension (including any amount added under regulations 37(1)(a) or 37(2)(a) (enhancement of member's Tier 1 and Tier 2 benefits)) had accrued at a rate of 1/240th of pensionable pay;

(b) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/240;

(c) the member's pension had not been subject to any actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(d) there had been no commutation under regulation 32 (election for lump sum instead of pension);

(e) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension); and

(f) the pension included 49/240 of any additional pension purchased under regulation 17(6)(b)(i) (additional voluntary contributions) which included provision for a survivor's pension; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9A) For the purposes of paragraph (9), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(10) The amount of pension payable under paragraph (8) where there is more than one such child, is payable to those children in equal shares and is calculated by adding together the pension that the member would have been entitled to draw if—

(a) the member's earned pension (including any amount added under regulations 37(1)(a) or 37(2)(a) (enhancement of member's Tier 1 and Tier 2 benefits)) had accrued at a rate of 1/120th of pensionable pay;

(b) the amount of any earned pension credited under regulation 96(1) (effect of acceptance of transfer value) had been multiplied by 49/120;

(c) the member's pension had not been subject to any actuarial adjustment relating to the age at which it was drawn or following a Scheme pays election or any pension debit applied on account of a pension sharing order;

(d) there had been no commutation under regulation 32 (election for lump sum instead of pension);

(e) the pension excluded any additional pension purchased under regulation 16 (additional pension contributions) and any additional pension awarded under regulation 30 (award of additional pension); and

(f) the pension included 49/120 of any additional pension purchased under regulation 17(6)(b)(i) (additional voluntary contributions) which included provision for a survivor's pension; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10A) The pension that the member would have been entitled to, for the purpose of calculating the amount of pension payable under paragraphs (3) and (8), is not to include any final guarantee amount that has been added to the pension under regulation 4B or 4C of the Transitional Provisions and Savings Regulations 2014.

(10B) For the purposes of paragraph (10), if the member—

(a) died in the period beginning with 1 April and ending with 5 April in the Scheme year following the Scheme year in which the member ceased to be an active member, or

(b) ceased to be an active member in the period beginning with 1 April and ending with 5 April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.

(11) Additional pension purchased under regulation 16 is not excluded for the purposes of paragraphs (4)(e), (5)(e), (9)(e) and (10)(e) where the member has elected to purchase that additional pension to cover the amount of pension which would otherwise have accrued but for—

(a) an absence from work with no pensionable pay in consequence of a trade dispute; or

(b) an absence from work with permission with no pensionable pay, otherwise than because of—

(i) illness or injury;

(ii) child related leave; or

(iii) reserve forces special leave.

(12) At the point at which the number of eligible children is reduced to one, the pension payable to that child is recalculated in accordance with paragraph (9) as from the date the other eligible child's or children's pension ceased to be paid.

(13) If the member ceased to be an active member, became a pensioner member and died all within the same Scheme year, the balance in the survivor member's pension account at the end of the Scheme year in which the survivor member's account was opened is adjusted on the revaluation date in the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the survivor member's account was opened, and takes effect from the start of the Scheme year following the Scheme year in which the member became a pensioner member, in accordance with guidance issued by the Scottish Ministers.

(14) Where—

(a) paragraph (13) applies, the ... balance calculated under paragraph (3) or (8) is the opening balance of the survivor member's pension account for the following Scheme year and the revaluation adjustment is applied to the balance in accordance with paragraph (13);

(b) paragraph (13) does not apply, the balance under paragraph (3) or (8), as the case may be, is the opening balance of the survivor member's pension account for the following Scheme year,

(14A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.

(15) For the purposes of paragraphs (4)(a), (5)(a), (9)(a) and (10)(a), earned pension also includes any amount awarded under regulations 37(1)(a) or (2)(a).

Adjustments of benefits

No double entitlement

47

(1) Where apart from this regulation any member would be entitled to a pension or lump sum under 2 or more regulations by reason of the same period of membership—

(a) that member is entitled to benefits under only one regulation;

(b) the member may choose under which provision benefits are to be paid; and

(c) if the member does not choose, the administering authority must choose and notify the member in writing of the provision under which benefits are to be paid.

(2) A member's choice must be by notice in writing given to the administering authority before the expiry of 3 months beginning with the day on which the member becomes entitled to choose under which provision the pension or lump sum is to be paid.

(3) Paragraph (1) does not affect the member's rights under the Pension Schemes Act 1993 .

Limit on total amount of benefits

48

(1) No person is entitled under any provision of these Regulations to receive benefits the capital value of which exceed that person's lifetime allowance, except in accordance with actuarial guidance issued by the Scottish Ministers, and any benefits to which a person is entitled are restricted accordingly.

(2) In this regulation “lifetime allowance” is to be construed in accordance with section 218 of and schedule 36 of the Finance Act 2004 and Schedule 6 to the Finance Act 2014 and, where applicable, is to include primary protection, enhanced protection, individual protection or fixed protection within the meaning of those provisions .

(3) The capital value of a person's benefits shall be calculated in accordance with actuarial guidance issued by the Scottish Ministers.

Guaranteed minimum pensions

49

(1) Where a member's local government service is contracted-out employment and that member has a guaranteed minimum, the member is entitled from the date of attaining pensionable age to payment of a pension at a weekly rate equal to not less than that guaranteed minimum.

(2) But if the member attains pensionable age while in local government service, the member is not so entitled until leaving that employment, unless paragraph (3) or (4) applies.

(3) If the member—

(a) continues in local government service for a further period of 5 years after attaining pensionable age; and

(b) does not then leave that service,

the member is entitled from the end of the period mentioned in sub-paragraph (a) to payment of so much of the retirement pension as equals that guaranteed minimum.

(4) If the member attains pensionable age while in local government service but subsequently changes employment to employment which is not local government service, the member is entitled.

(5) If the member changes employment to employment which is not local government service and the member attains pensionable age while in that employment, the member is entitled.

(6) Subject to regulation 29(3) (retirement after normal retirement date), where paragraph (3), (4) or (5) applies, the member may consent to a postponement of the entitlement.

(7) For the purposes of this regulation, a person has a guaranteed minimum if they have such a minimum under section 14 (earner's guaranteed minimum) of the Pension Schemes Act 1993 in relation to benefits under these Regulations, and references to entitlement are to the entitlement to payment of a pension in accordance with paragraph (1).

(8) In this regulation “contracted out employment” shall be construed in accordance with section 8 of the Pension Schemes Act 1993.

Pension debits

50

(1) Administering authorities shall have regard to actuarial guidance issued by the Scottish Ministers as to reduction of benefits payable under these Regulations in consequence of a pension debit.

(2) An administering authority shall make such adjustments to a member's pension accounts as are required to give effect to a pension debit.

PART 2 — Administration

Administering authorities

Scheme managers

51

(1) The bodies listed in schedule 3, referred to in these Regulations as “administering authorities”, must maintain a pension fund for the Scheme.

(2) An administering authority is responsible for managing and administering the Scheme in relation to any person for which it is the appropriate administering authority under these Regulations.

(3) The appropriate fund in relation to a person who is or has been a member of the Scheme, or is entitled to any benefit in respect of a person who is or has been a member of the Scheme, is the fund specified in schedule 4 in relation to that person.

Admission agreement funds

52

(1) An administering authority which has made an admission agreement may establish a further pension fund (an “admission agreement fund”) in addition to the fund maintained under regulation 51(1) (Scheme managers) (“the main fund”).

(2) Immediately after an administering authority establishes an admission agreement fund, it must give the Scottish Ministers written notice that it has done so.

(3) The notice must specify the admission bodies whose employees are eligible for benefits from the admission agreement fund.

(4) Where an admission agreement fund is established—

(a) the liabilities of the main fund as respects membership relating to employment with those specified bodies become liabilities of the admission agreement fund; and

(b) assets of such value as an actuary appointed by the appropriate administering authority determines to be appropriate must be transferred from the main fund to the admission agreement fund.

(5) When valuations under regulation 60 (actuarial valuations of pension funds) of both the main fund and the admission agreement fund are first obtained after the admission agreement fund is established, the administering authority must obtain from the actuary appointed by the authority—

(a) a transfer statement; and

(b) a rates and adjustment certificate for the admission agreement fund for each remaining year of the period covered by the most recent such certificate for its main fund.

(6) The transfer statement must specify whether, in the actuary's opinion, there is a need for further assets to be transferred from the main fund to the admission agreement fund and, if so, their value.

(7) Where the transfer statement specifies that assets of a specified value need to be transferred, the administering authority must arrange for assets of that value to be transferred as soon as is reasonably practicable.

Administering authorities: governance compliance statement

53

(1) An administering authority must prepare a written statement setting out—

(a) whether the authority delegates its functions, or part of its functions under these Regulations to a committee, a sub-committee or an officer of the authority;

(b) if the authority does so—

(i) the terms, structure and operational procedures of the delegation;

(ii) the frequency of any committee or sub-committee meetings;

(iii) whether such a committee or sub-committee includes representatives of Scheme employers or members, and if so, whether those representatives have voting rights;

(c) the extent to which a delegation, or the absence of a delegation, complies with guidance given by the Scottish Ministers and, to the extent that it does not so comply, the reasons for not complying; and

(d) details of the terms, structure and operational procedures relating to the local pension board established under regulation 5 (pension boards) of the Governance Regulations.

(2) An administering authority must keep a statement prepared under paragraph (1) under review, and make such revisions as are appropriate, following a material change to any of the matters mentioned in that paragraph.

(3) Before preparing or revising a statement under this regulation, an administering authority must consult such persons as it considers appropriate.

(4) An administering authority must publish its statement under this regulation, and any revised statement.

Accounts and audit

54

(1) After any of its pension funds has been audited, an administering authority must immediately send copies of the following to each body whose employees are active members—

(a) a summary of the revenue account and balance sheet of the fund; and

(b) any report by the auditor.

(2) The pension input period for the purposes of section 238 of the Finance Act 2004 is the year ending on 5th April 2016 and each year ending on 5th April after that year.

Strategies, statements and reports

Pension fund annual report

55

(1) An administering authority must, in relation to each year beginning on 1st April 2015 and each subsequent year, prepare a document (“the pension fund annual report”) which contains—

(a) a report about the management and financial performance during the year of each of the pension funds maintained by the authority;

(b) a report explaining the authority's investment policy for each of those funds and reviewing the performance during the year of the investments of each fund;

(d) for each of those funds, a statement by the actuary who carried out the most recent valuation of the assets and liabilities of the fund in accordance with regulation 60 (actuarial valuations of pension funds), of the level of funding disclosed by that valuation;

(e) the current version of the statement under regulation 53 (governance compliance statement);

(f) for each of the funds, the fund account and net asset statement with supporting notes and disclosures prepared in accordance with proper practices;

(g) an annual report dealing with—

(i) the extent to which the authority and the Scheme employers in relation to which it is the administering authority have achieved any levels of performance set out in a pension administration strategy in accordance with regulation 57 (pension administration strategy); and

(ii) such other matters arising from a pension administration strategy as it considers appropriate;

(h) the current version of the statement referred to in regulation 56 (funding strategy statement);

(i) the current version of the statement under regulation 12 of the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 2010 (statement of investment principles) ;

(j) the current version of the statement under regulation 59 (statements of policy concerning communications with members and Scheme employers); and

(k) any other material which the authority considers appropriate.

(2) The authority must publish the pension fund annual report or details of where it may be obtained on or before 1st December following the Scheme year end.

(3) In preparing and publishing the pension fund annual report, the authority must have regard to guidance given by the Scottish Ministers.

Funding strategy statement

56

(1) An administering authority must, after consultation with such persons as it considers appropriate, prepare, maintain and publish a written statement setting out its funding strategy.

(2) The statement must be published no later than 31st March 2016.

(3) The authority must keep the statement under review and, after consultation with such persons as it considers appropriate, make such revisions as are appropriate following a material change in its policy set out in the statement, and if revisions are made, publish the statement as revised.

(4) In preparing, maintaining and reviewing the statement, the administering authority must have regard to—

(a) the guidance set out in the current version of the document published by the Chartered Institute of Public Finance and Accountancy (“CIPFA”) and called “Preparing and maintaining a Funding Strategy Statement in the Local Government Pension Scheme”; and

(b) the statement of investment principles published by the administering authority under regulation 12 of the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 2010.

Pension administration strategy

57

(1) An administering authority may prepare a written statement of the authority's policies in relation to such of the matters mentioned in paragraph (2) as it considers appropriate (“its pension administration strategy”) and, where it does so, paragraphs (3) to (7) apply.

(2) The matters are—

(a) procedures for liaison and communication with Scheme employers in relation to which it is the administering authority (“its Scheme employers”);

(b) the establishment of levels of performance which the administering authority and its Scheme employers are expected to achieve in carrying out their Scheme functions by—

(i) the setting of performance targets;

(ii) the making of agreements about levels of performance and associated matters; or

(iii) such other means as the administering authority considers appropriate;

(c) procedures which aim to secure that the administering authority and its Scheme employers comply with statutory requirements in respect of those functions and with any agreement about levels of performance;

(d) procedures for improving the communication by the administering authority and its Scheme employers to each other of information relating to those functions;

(e) the circumstances in which the administering authority may consider giving written notice to any of its Scheme employers under regulation 65 (additional costs arising from Scheme employer's level of performance) on account of that employer's unsatisfactory performance in carrying out its Scheme functions when measured against levels of performance established under sub-paragraph (b);

(f) the publication by the administering authority of annual reports dealing with—

(i) the extent to which that authority and its Scheme employers have achieved the levels of performance established under sub-paragraph (b); and

(ii) such other matters arising from its pension administration strategy as it considers appropriate; and

(g) such other matters as appear to the administering authority after consulting its Scheme employers and such other persons as it considers appropriate, to be suitable for inclusion in that strategy.

(3) An administering authority must—

(a) keep its pension administration strategy under review; and

(b) make such revisions as are appropriate following a material change in its policies in relation to any of the matters contained in the strategy.

(4) In preparing or reviewing and making revisions to its pension administration strategy, an administering authority must consult its Scheme employers and such other persons as it considers appropriate.

(5) An administering authority must publish—

(a) its pension administration strategy; and

(b) where revisions are made to it, the strategy as revised.

(6) Where an administering authority publishes its pension administration strategy, or that strategy as revised, it must send a copy of it to each of its Scheme employers and to the Scottish Ministers as soon as is reasonably practicable.

(7) An administering authority and its Scheme employers must have regard to its pension administration strategy when carrying out their functions under these Regulations.

(8) In this regulation references to the functions of an administering authority include, where applicable, its functions as a Scheme employer.

Statements of policy about exercise of discretionary functions

58

(1) A Scheme employer must prepare a written statement of its policy in relation to the exercise of its functions under regulations—

(a) 16(2)(e) and 16(4)(d) (funding of additional pension);

(b) 29(7) (flexible retirement);

(d) 30 (award of additional pension),

and an administering authority must prepare such a statement in relation to the exercise of its functions under regulation 29(9) in cases where a former employer has ceased to be a Scheme employer.

(2) Each Scheme employer must send a copy of its statement to each relevant administering authority before 1st July 2015 and must publish its statement.

(3) A body required to prepare a statement under paragraph (1) must—

(a) keep its statement under review; and

(b) make such revisions as are appropriate following a change in its policy.

(4) Before the expiry of a month beginning with the date any such revisions are made, each Scheme employer must send a copy of its revised statement to each relevant administering authority, and must publish its statement as revised.

(5) In preparing, or reviewing and making revisions to its statement, a body required to prepare a statement under paragraph (1) must have regard to the extent to which the exercise of the functions mentioned in paragraph (1) in accordance with its policy could lead to a serious loss of confidence in the public service.

(6) In this regulation a relevant administering authority, in relation to a Scheme employer, is any authority which is an appropriate administering authority for that employer's employees.

Statements of policy concerning communications with members and Scheme employers

59

(1) An administering authority must prepare, maintain and publish a written statement setting out its policy concerning communications with—

(a) members;

(b) representatives of members;

(d) Scheme employers.

(2) In particular the statement must set out its policy on—

(a) the provision of information and publicity about the Scheme to members, representatives of members and Scheme employers;

(b) the format, frequency and method of distributing such information or publicity; and

(3) The statement must be revised and published by the administering authority following a material change in their policy on any of the matters referred to in paragraph (2).

Actuarial valuations

Actuarial valuations of pension funds

60

(1) An administering authority must obtain—

(a) an actuarial valuation of the assets and liabilities of each of its pension funds ... as at 31st March 2020 and on 31st March in every third year afterwards;

(b) a report by an actuary in respect of the valuation; and

(2) Each of those documents must be obtained before the first anniversary of the date (“the valuation date”) as at which the valuation is made or such later date as the Scottish Ministers may agree.

(3) A report under paragraph (1)(b) must contain a statement of the demographic assumptions used in making the valuation; and the statement must show how the assumptions relate to the events which have actually occurred in relation to members of the Scheme since the last valuation.

(4) A rates and adjustments certificate is a certificate specifying—

(a) the primary rate of the employer's contribution; and

(b) the secondary rate of the employer's contribution,

for each year of the period of 3 years beginning with 1st April in the year following that in which the valuation date falls.

(5) The actuary must have regard to—

(a) the existing and prospective liabilities arising from circumstances common to all those bodies;

(b) the desirability of maintaining as nearly constant a primary rate as possible;

(c) the current version of the administering authority's funding strategy mentioned in regulation 56 (funding strategy statements); and

(d) the requirement to secure the solvency of the pension fund and the long term cost efficiency of the Scheme, so far as relating to the pension fund.

(5A) Compensation paid by the scheme to a person by virtue of section 82(1) of PSPJOA 2022 or additional benefits payable by virtue of regulation 4Q of the Transitional Provisions and Savings Regulations 2014 are liabilities for the purpose of the actuarial valuation under paragraph (1)(a).

(6) A rates and adjustments certificate must contain a statement of the assumptions on which the certificate is given as respects—

(a) the number of members who will become entitled to payment of pensions under the provisions of the Scheme; and

(b) the amount of the liabilities arising in respect of such members,

during the period covered by the certificate.

(6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The administering authority must provide the actuary preparing a valuation or a rates and adjustments certificate with the consolidated revenue account of the fund and such other information as the actuary requests.

(8) In this regulation—

(a) the primary rate of an employer's contribution is the amount in respect of the cost of future accruals which, in the actuary's opinion, should be paid to a fund by all bodies whose employees contribute to it so as to secure its solvency, expressed as a percentage of the pay of their employees who are active members; and

(b) the secondary rate of an employer's contributions is any percentage or amount by which, in the actuary's opinion, contributions at the primary rate should, in the case of a Scheme employer, be increased or reduced by reason of any circumstances peculiar to that employer.

Special circumstances where revised actuarial valuations and certificates must be obtained

61

(1) Subject to paragraph (3), if a person—

(a) ceases to be a Scheme employer (including ceasing to be an admission body participating in the Scheme); or

(b) is or was a Scheme employer, but, irrespective of whether that employer employs active members contributing to one or more other funds, no longer has an active member contributing towards a fund which has liabilities in respect of benefits in respect of current and former employees of that employer,

that person becomes “an exiting employer” in relation to the relevant fund for the purposes of this regulation and is liable to pay the exit payment or to receive the exit credit.

(2) When a person becomes an exiting employer, the appropriate administering authority must obtain—

(a) an actuarial valuation as at the exit date of the liabilities of the fund in respect of benefits in respect of the exiting employer's current and former employees; and

(b) a revised rates and adjustments certificate showing the exit payment due from the exiting employer, or the excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2)(a).

(2A) A person proposing to become an exiting employer may request the appropriate administering authority to obtain—

(a) an indicative actuarial valuation at a specific date of the liabilities of the fund in respect of benefits in respect of that person’s current and former employees, and

(b) a revised rates and adjustments certificate showing the exit payment that would be due from such employer, or the excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2A)(a),

and the indicative actuarial valuation must for a period of up to 90 days from the specific date be used in substitution for any valuation at the employer’s exit date carried out under paragraph (2).

(2B) Compensation paid by the scheme to a person by virtue of section 82(1) of PSPJOA 2022 or additional benefits payable by virtue of regulation 4Q of the Transitional Provisions and Savings Regulations 2014 are liabilities for the purpose of the actuarial valuation under paragraph (2)(a) and paragraph (2A)(a).

(2C) an administering authority must provide an indicative actuarial valuation when requested by a person under paragraph (2A), unless that person has made a previous request under paragraph (2A) within the preceding 12 months.

(2D) An administering authority must determine the amount of an exit credit, which may be zero, taking into account the factors specified in paragraph (2F) and must—

(a) notify its intention to make a determination to—

(i) the exiting employer and any other body that has provided a guarantee to the exiting employer under paragraph 8 of Part 2 of schedule 2 of these Regulations,

(ii) where the exiting employer is a body that has participated in the Scheme as a result of an admission agreement under paragraph 1(d) of Part 2 of schedule 2 of these Regulations, the Scheme employer in connection with the exercise of whose function it was providing a service or assets, and

(b) pay the amount determined to that exiting employer within six months of the exit date, or such longer time as the administering authority and the exiting employer may agree.

(2E) When an administering authority has paid an exit credit to an exiting employer, no further payments are due from that administering authority in respect of any excess of assets relating to the benefits in respect of any current or former employees of that employer as a result of these Regulations.

(2F) In exercising its discretion to determine the amount of any exit credit, the administering authority must have regard to the following factors—

(a) the extent to which there is an excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2)(a) or, if applicable, paragraph (2A)(a),

(b) the proportion of this excess of assets which has arisen because of the value of the employer’s contributions,

(c) any representations to the administering authority made by the exiting employer and, where that employer participated in the scheme by virtue of an admission agreement, any body listed in paragraphs 8(a) to (d)(ii) of Part 2 of schedule 2 of these Regulations,

(d) any guidance or statement specified under regulation 56(4) of these Regulations, or any other guidance relating to the preparation of a funding strategy statement issued or endorsed by the Scottish Ministers,

(e) any other relevant factors.

(3) An administering authority may by written notice (“suspension notice”) to an employer suspend that employer's liability to pay an exit payment starting from the date when that employer would otherwise become an exiting employer. A suspension notice must specify the period during which the suspension notice is to apply, but an administering authority may withdraw a suspension notice prior to the expiry of the suspension period, at its discretion.

(4) If an administering authority serves a suspension notice the employer must continue to make such contributions towards the liabilities of the fund in respect of benefits for the employer's current and former employees until a new and satisfactory valuation is carried out and the suspension notice is withdrawn.

(4A) An administering authority may enter into a written agreement with an exiting employer for that employer to defer their obligation to make an exit payment and continue to make contributions at the secondary rate (“a deferred debt agreement”).

(4B) An administering authority may only enter into a deferred debt agreement with an exiting employer where—

(a) the last active member in respect of that Scheme employer has left the fund;

(b) the funding strategy mentioned in regulation 56 (funding strategy statement) has set out the administering authority’s policy on deferred debt agreements; and

(i) consulted the exiting employer; and

(ii) had regard to the views of an actuary appointed by the administering authority.

(4C) Where a deferred debt agreement has been entered into under paragraph (4A)—

(a) the exiting employer becomes a deferred employer on the date specified in the agreement;

(b) the deferred employer must—

(i) meet all requirements on Scheme employers except the requirement to pay the primary rate of contributions as determined under regulation 60(8)(a) (actuarial valuations of pension funds); and

(ii) pay the secondary rate of contributions as determined under regulation 60(8)(b) as revised from time to time following an actuarial valuation until the termination of the deferred debt agreement.

(4D) A deferred debt agreement must include express provision for it to remain in force for a specified period, which may be varied by agreement of the administering authority and the deferred employer.

(4E) A deferred debt agreement terminates on the first date on which one of the following events occurs—

(a) the deferred employer enrols new active members in the relevant fund;

(b) the period specified, or as varied, under paragraph (4D) elapses;

(d) the administering authority serves a notice on the deferred employer that the administering authority is reasonably satisfied that the deferred employer’s ability to meet the contributions payable under the deferred debt agreement has weakened materially or is likely to weaken materially in the next 12 months; or

(e) an actuary appointed by the administering authority assesses that the deferred employer has paid sufficient contributions at the secondary rate to cover the exit payment that would have been due under paragraph (1) if the employer had become an exiting employer on the calculation date.

(4F) Paragraph (4E)(c) does not apply where the administering authority serves a notice on the deferred employer that the administering authority is reasonably satisfied that the event would not be likely to materially weaken the deferred employer’s ability to meet the contributions payable under the deferred debt agreement in the next 12 months.

(4G) On the termination of a deferred debt agreement under paragraph (4E)(b), (c), (d) or (e), a deferred employer becomes an exiting employer in relation to the relevant fund for the purposes of this regulation.

(5) Where for any reason it is not possible to obtain all or part of the exit payment due from the exiting employer, or from an insurer, or any person providing an indemnity, bond or guarantee on behalf of the exiting employer, the administering authority must obtain a further revision of any rates and adjustments certificate for the fund showing—

(a) in the case where a body is an admission body falling within paragraph 1(d) of Part 2 of schedule 2 of these Regulations (Scheme employers: bodies providing services as a result of transfer of a service), the revised contribution due from the body which is the related employer in relation to that admission body; and

(b) in any other case, the revised contributions due from each Scheme employer which contributes to the fund,

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