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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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with a view to providing that assets equivalent to the exit payment due from the exiting employer are provided to the fund over such period of time as the administering authority considers reasonable.

(6) Where in the opinion of an administering authority there are circumstances which make it likely that a Scheme employer (including an admission body) will become an exiting employer, the administering authority may obtain from an actuary a certificate specifying the percentage or amount by which, in the actuary's opinion—

(a) the contribution at the primary rate should be adjusted; or

(b) any prior secondary rate adjustment should be increased or reduced,

with a view to providing that assets equivalent to the exit payment that will be due from the Scheme employer are provided to the fund by the likely exit date or, where the Scheme employer is unable to meet that liability by that date, over such period of time thereafter as the administering authority considers reasonable.

(7) When an exiting employer has paid the exit payment into the appropriate fund (or received the exit credit), no further payments are due from that employer in respect of any liabilities relating to the benefits in respect of any current or former employees of that employer as a result of these Regulations.

(8) Paragraph (9) applies where—

(a) a Scheme employer agrees to pay increased contributions to meet the cost of an award of additional pension under regulation 30 (award of additional pension); or

(b) it appears likely to an administering authority that the amount of the liabilities arising or likely to arise in respect of members in employment with a Scheme employer exceeds the amount specified, or likely as a result of the assumptions stated, for that authority, in a rates and adjustments certificate by virtue of regulation 60(6) (actuarial valuations of pension funds: assumptions).

(9) The administering authority must obtain a revision of the rates and adjustments certificate concerned, showing the resulting changes as respects that Scheme employer.

(10) For the purposes of this regulation—

“exiting employer” means an employer of any of the descriptions specified in paragraph (1);

“exit payment” means the amount as set out in the rates and adjustments certificate referred to in sub-paragraph (2)(b) or, if applicable, sub-paragraph (2A)(b) required to be paid by the exiting employer over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);

“deferred employer” means an exiting employer which enters into a deferred debt agreement with an administering authority.

“exit credit” means any amount paid to the exiting employer by the administering authority in respect of the excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2)(a) or, if applicable, sub-paragraph (2A)(a);

“exit date” means the date on which the employer becomes an exiting employer; and

“related employer” means any Scheme employer or other such contracting body which is a party to the admission agreement (other than an administering authority in its role as an administering authority).

Payments

Employer's contributions

62

(1) A Scheme employer must contribute to the appropriate fund in each year covered by a rates and adjustment certificate under regulation 60 (actuarial valuations of pension funds) or 61 (special circumstances where revised actuarial valuations and certificates must be obtained) the amount appropriate for that authority as calculated in accordance with the certificate and paragraph (4).

(2) During each of those years a Scheme employer must make payments to the appropriate fund on account of the amount required for the whole year.

(3) Those payments on account must—

(a) be paid at the end of the intervals determined under regulation 64 (payment by Scheme employers to administering authorities); and

(b) equal the appropriate proportion of the whole amount due under paragraph (1) for the year in question.

(4) An employer's contribution for any year is the primary percentage for that year of—

(a) the pensionable pay on which contributions have been paid into the fund by active members in accordance with regulations 9 to 12, 14 and 15 (contributions), except where sub-paragraph (b) applies; and

(b) the assumed pensionable pay in respect of members on leave due to sickness or injury on reduced contractual pay or no pay or on child-related leave,

increased or reduced by any secondary rate adjustments specified for that employer for that year in the rates and adjustments certificate except where actual pay received during child-related leave is greater than assumed pensionable pay.

(5) The primary percentage is the primary rate of the employer's contribution specified in that certificate expressed as a percentage of the pay of its employees who are active members.

(6) A Scheme employer must also pay into the appropriate fund in each year any employer contributions made under regulation 16 (additional pension contributions).

Employer's further payments

63

(1) Any extra charge on the appropriate fund resulting from a member becoming entitled to benefits under regulation 34 (early payment of retirement pension on ill-health grounds) must be paid into the fund by the Scheme employer concerned.

(2) An administering authority may require the Scheme employer concerned to make additional payments to the appropriate fund in respect of any extra charge on the fund resulting from retirements benefits becoming immediately payable to a member under regulation 29(6) (early retirement) or under regulation 29(7) (flexible retirement) or (8) (early leavers on grounds of redundancy or business efficiency), including the cost as calculated by an actuary appointed by the administering authority, as a result of a waiver of any reduction under regulation 29(9).

(3) Other than where regulation 61(8) (special circumstances where revised actuarial valuations and certificates must be obtained) applies, a Scheme employer making an award under regulation 30 (award of additional pension) must pay a sum into the appropriate fund to meet the cost of any additional pension, in accordance with actuarial guidance issued by the Scottish Ministers.

Payment by Scheme employers to administering authorities

64

(1) Every Scheme employer must pay to the appropriate administering authority on or before such dates falling at intervals of not more than 12 months as the appropriate administering authority may determine—

(a) all amounts received from time to time from employees under regulations 9 to 14 and 16 (contributions);

(b) any charge payable under regulation 63 (employer's further payments) of which it has been notified by the administering authority during the interval;

(d) any amount specified in a notice given in accordance with regulation 65 (additional costs arising from Scheme employer's level of performance); and

(e) all amounts received from time to time from the Ministry of Defence in respect of employee and employer contributions for a member on reserve forces service leave.

(2) But—

(a) a Scheme employer must pay the amounts mentioned in paragraph (1)(a) within the prescribed period referred to in section 49(8) of the Pensions Act 1995 ; and

(b) paragraph (1)(c) does not apply where the cost of the administration of the fund is paid out of the fund under regulation 4(4) of the Local Government Pensions Scheme (Management and Investment of Funds) (Scotland) Regulations 2010 (management of pension fund) .

(3) Every payment under paragraph (1)(a) must be accompanied by a statement showing—

(a) the total pensionable pay received by members during the period covered by the statement whilst regulation 9 (contributions) applied (including the assumed pensionable pay members were treated as receiving during that period);

(b) the total employee contributions deducted from the pensionable pay referred to in sub-paragraph (a);

(c) the total pensionable pay received by members during the period covered by the statement whilst regulation 10 (temporary reduction in contributions) applied (including the assumed pensionable pay members were treated as receiving during that period);

(d) the total employee contributions deducted from pensionable pay referred to in sub-paragraph (c);

(e) the total employer contributions in respect of the pensionable pay referred to in sub-paragraphs (a) and (c);

(f) the total additional pension contributions paid by members under regulation 16 (additional pension contributions) during the period covered by the statement; and

(g) the total additional pension contributions paid by the employer under regulation 16 (additional pension contributions) during the period covered by the statement.

(4) An administering authority may direct that the information mentioned in paragraph (3) shall be given to the authority in such form and at such intervals as it specifies in the direction.

(5) If an amount payable under paragraph (1)(c) or (d) cannot be settled by agreement, it must be determined by the Scottish Ministers.

Additional costs arising from Scheme employer's level of performance

65

(1) This regulation applies where, in the opinion of an administering authority, it has incurred additional costs which should be recovered from a Scheme employer because of that employer's level of performance in carrying out its functions under these Regulations.

(2) The administering authority may give written notice to the Scheme employer stating—

(a) the administering authority's reasons for forming the opinion mentioned in paragraph (1);

(b) the amount the authority has determined the Scheme employer should pay under regulation 64(1)(d) (payments by Scheme employers to administering authorities) in respect of those costs and the basis on which the specified amount is calculated; and

(c) where the administering authority has prepared a pension administration strategy under regulation 57 (pension administration strategy), the provisions of the strategy which are relevant to the decision to give the notice and to the matters in sub-paragraph (a) or (b).

Interest on late payments by Scheme employers

66

(1) An administering authority may require a Scheme employer or former Scheme employer from which any payment under regulations 62 to 65 (employer's contributions or payments) is overdue to pay interest on that amount.

(2) The date on which any amount due under regulation 62 (employer's contributions), 63 (employer's further payments) or 65 (additional costs arising from Scheme employer's level of performance) is overdue is one month from the date specified by the administering authority for payment.

(3) The date on which any amount due under regulation 64 (payment by Scheme employers to administering authorities) (other than an extra charge payable under regulation 64 and referred to in regulation 64(1)(b)) is overdue is the day after the date when that payment is due.

(4) Interest payable under this regulation must be calculated at one per cent above base rate on a day to day basis from the due date to the date of payment and compounded with 3-monthly rests.

Decisions

First instance decisions

67

(1) Any question concerning the rights or liabilities under the Scheme of any person other than a Scheme employer must be decided in the first instance by the person specified in this regulation.

(2) In relation to any employment in which a person is a member or prospective member, the appropriate administering authority must decide—

(a) any question concerning the person's previous service or employment;

(b) any question about counting additional periods as membership or crediting additional pension.

(3) Such a decision must be made as soon as is reasonably practicable after the person becomes a member in the employment.

(4) Where a person is or may become entitled to a benefit payable out of a pension fund, the administering authority maintaining that fund must decide its amount.

(5) That decision must be made as soon as is reasonably practicable after the event by virtue of which the entitlement arises or may arise.

(6) Any question whether a person is entitled to a benefit under the Scheme must be decided by the Scheme employer who last employed the person.

(7) That decision must be made as soon as is reasonably practicable after the earlier of—

(a) the date the employment ends; or

(b) the date specified in the notification mentioned in regulation 5(4) or, where relevant, the date referred to in regulation 5(5) (ending active membership).

(8) In paragraphs (4) and (6) “benefit” includes a return of contributions.

(9) Any question concerning what rate of contribution a member is liable to pay to the appropriate fund must be decided by the member's Scheme employer.

(10) Other questions in relation to any member or prospective member must be decided by the member's Scheme employer as soon as is reasonably practicable after the member or prospective member becomes a member or a material change affects his or her employment.

Notification of first instance decisions

68

(1) Every person whose rights or liabilities are affected by a decision under regulation 67 (first instance decisions) must be notified of it in writing by the body which made it as soon as is reasonably practicable.

(2) A notification of a decision that the person is not entitled to a benefit must include the grounds for the decision.

(3) A notification of a decision about the amount of a benefit must include a statement showing how it is calculated.

(4) Every notification must contain a conspicuous statement giving the address from which further information about the decision may be obtained.

(5) Every notification must also—

(a) refer to the rights available under regulations 69 (applications to resolve disagreements) and 71 (reference of disagreement for reconsideration by Scottish Ministers);

(b) specify the time limits within which the rights under those regulations may be exercised; and

(c) specify the job title and the address of the person to whom applications under regulation 69 (applications to resolve disagreements) may be made.

Applications to resolve disagreements

69

(1) This regulation applies where there is a disagreement about a matter in relation to the Scheme between a member (or an alternative applicant) and a Scheme employer or the administering authority.

(2) For the purposes of this Regulation, the following persons are alternative applicants—

(a) a widow, widower or surviving civil partner or cohabiting partner of a deceased member;

(b) a dependant of a deceased member or any other person to whom benefits in respect of the member may be paid;

(d) a person who ceased to be a member, or to fall within any of sub-paragraphs (a) to (c), during the period of 6 months ending with the date of the application; and

(e) in the case of a disagreement relating to the question whether a person claiming to be a member or to fall within any of sub-paragraphs (a) to (d) does so, the claimant.

(3) The member or, as the case may be, the alternative applicant may apply to—

(a) the person specified under regulation 68(5)(c) (notification of first instance decision) to give a decision on the disagreement; or

(b) the appropriate administering authority for that authority to refer the disagreement to a person for decision.

(4) An application for a decision under paragraph (3) must—

(a) set out the applicant's full name, address and date of birth;

(b) include a statement giving details of the nature of the disagreement and the reasons why the applicant is aggrieved;

(d) be accompanied by a copy of any written notification under regulation 68 (notification of first instance decision).

(5) An application by—

(a) a member or prospective member;

(b) a person who ceased to be a member or prospective member during the period of 6 months ending with the date of the application; or

must also set out their national insurance number (if any) and the name of their Scheme employer.

(6) An application by any other person must also set out—

(a) that person's relationship to the member; and

(b) the member's full name, address, date of birth and national insurance number (if any) and the name of the member's Scheme employer.

(7) An application must be made before the end of—

(a) the period of 6 months beginning with the relevant date; or

(b) such longer period as the person giving the decision on the disagreement considers reasonable.

(8) The relevant date is—

(a) in the case of a disagreement relating to a decision under regulation 67 (first instance decisions), the date notification of the decision is given under regulation 68 (notification of first instance decision); and

(b) in any other case, the date of the act or omission which is the cause of the disagreement or, if there is more than one, the last of them.

(9) Paragraph (7)(b) does not apply where an appeal has been made under regulation 74(1) (appeals by administering authorities) in respect of a matter that is the subject of an application under this regulation.

Notice of decisions on disagreements

70

(1) Subject to paragraph (2), a decision on a disagreement to which an application under regulation 69 (applications to resolve disagreements) relates must be given by notice in writing to—

(a) the applicant;

(b) the Scheme employer; and

before the expiry of the period of 2 months beginning with the date the application was received.

(2) If no such notice is given before the expiry of that period, an interim reply must immediately be sent to the persons mentioned in paragraph (1)(a) to (c) setting out—

(a) the reasons for the delay; and

(b) an expected date for giving the decision.

(3) A notice under paragraph (1) must include—

(a) a statement of the decision;

(b) a reference to any legislation or provisions of the Scheme on which the person making the decision relied;

(c) in a case where the disagreement relates to the exercise of a discretion, a reference to the provisions of the Scheme conferring the discretion;

(d) a reference to the rights of the applicant and the Scheme employer's right to refer the disagreement for reconsideration by the Scottish Ministers under regulation 71 (reference of disagreement for reconsideration by Scottish Ministers) and to the time within which the applicant may do so; and

(e) a statement that the Money and Pensions Service is available to give assistance in connection with any difficulty with the Scheme that remains unresolved including the address at which the Money and Pensions Service may be contacted.

Reference of disagreement for reconsideration by Scottish Ministers

71

(1) This regulation applies where an application about a disagreement has been made under regulation 69 (applications to resolve disagreements) and—

(a) notice of a decision has been given under regulation 70(1) (notice of decisions on disagreements);

(b) an interim reply has been sent under regulation 70(2) but no such notice has been given before the expiry of the period of one month beginning with the expected decision date; or

(c) no such notice has been given or interim reply sent before the expiry of the period of 3 months beginning with the date the application was made.

(2) The applicant under regulation 69 (applications to resolve disagreements) may, before the expiry of the period of 6 months beginning with the relevant date, make an application to the Scottish Ministers to reconsider the disagreement.

(3) The relevant date is—

(a) in a case falling within paragraph (1)(a), the date of the notice given under regulation 70(1) (notice of decisions on disagreements);

(b) in a case falling within paragraph (1)(b), the date on which the period mentioned in that sub-paragraph expires; and

(4) The application must—

(a) set out the applicant's full name, address and date of birth;

(b) set out details of the grounds on which it is made (including any relevant supporting documentation);

(d) be accompanied by a copy of any written notification under regulation 70 (notice of decisions on disagreements); and

(e) be signed by or on behalf of the applicant.

(5) An application by a member or prospective member or a person claiming to be such must also set out his or her national insurance number (if any) and the name of the Scheme employer.

(6) An application by any other person must also set out—

(a) the person's relationship to the member; and

(b) the member's full name, address, date of birth and national insurance number (if any) and the name of the member's Scheme employer.

(7) Where notice of a decision on the disagreement has been given under regulation 70 (notice of decisions on disagreements), the application must also—

(a) state why the applicant is dissatisfied with that decision; and

(b) be accompanied by a copy of that notice.

(8) The Scottish Ministers must determine—

(a) the procedure to be followed when exercising their functions under this regulation; and

(b) the manner in which those functions are to be exercised.

Notice of decisions on reconsideration of disagreement

72

(1) Subject to paragraph (2), the Scottish Ministers must give their decision on an application under regulation 71 (reference of disagreement for reconsideration by Scottish Ministers) by notice in writing to—

(a) the applicant; and

(b) the Scheme employer,

before the expiry of the period of 2 months beginning with the date the application was received.

(2) If no such notice is given before the expiry of that period an interim reply must immediately be sent to those parties setting out—

(a) the reasons for the delay; and

(b) an expected date for giving the decision.

(3) A notice under paragraph (1) must include—

(a) a statement of the decision;

(b) in a case where a decision was given under regulation 70 (notice of decisions on disagreements), an explanation of whether and, if so, the extent to which that decision is confirmed or replaced;

(d) in a case where the disagreement relates to the exercise of a discretion, a reference to the provisions of the Scheme conferring the discretion;

(e) a statement that the Money and Pensions Service is available to give assistance in connection with any difficulty with the Scheme which remains unresolved including the address at which the Money and Pensions Service may be contacted; and

(f) a statement that the Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the Scheme made or referred in accordance with the Pension Schemes Act 1993 including the address at which the Pensions Ombudsman may be contacted.

Rights of representation

73

(1) An application under regulation 69 (applications to resolve disagreements) or 71 (reference of disagreement for reconsideration by Scottish Ministers) may be made or continued on behalf of the applicant by a representative nominated by the applicant.

(2) Where a person who has the right to make or has made such an application dies, the application may be made or continued on the person's behalf by the person's executor.

(3) Where such a person is under a legal disability because of nonage or is or becomes otherwise incapable of acting for himself or herself, the application may be made or continued on the person's behalf by a member of the person's family or some other person suitable to represent the person.

(4) Where a representative is nominated before an application is made, the application must specify the representative's full name and address and whether that address is to be used for service on the applicant of any documents in connection with the application.

(5) Where a representative's address is not to be so used the representative must be sent a copy of—

(a) a notice under regulation 70(1) (notice of decisions on disagreements) or 72(1) (notice of decisions on reconsideration of disagreement); or

(b) an interim reply under regulation 70(2) (notice of decisions on disagreements) or 72(2) (notice of decisions on reconsideration of disagreement).

Appeals by administering authorities

74

(1) This regulation applies where a Scheme employer—

(a) has decided, or failed to decide, any question falling to be decided by that employer under regulation 67 (first instance decisions) (otherwise than in the exercise of a discretion); and

(b) is not an administering authority.

(2) The administering authority maintaining the pension fund to which the Scheme employer pays contributions may appeal to the Scottish Ministers to decide the question.

(3) Such an appeal must be made by notice in writing given before the end of—

(a) the period of 6 months beginning with the relevant date; or

(b) such longer period as the Scottish Ministers consider reasonable.

(4) The relevant date is—

(a) in the case of an appeal relating to a decision notified under regulation 68(1), the date of the notification of the decision; and

(b) in the case of an appeal relating to a failure to decide any question, the date of that failure.

(5) For the purposes of paragraph (4)(b), a Scheme employer is to be taken to have failed to decide a question at the expiry of the period of 3 months beginning with the date on which the administering authority have requested a decision in writing.

(6) The Scottish Ministers must issue their decision on the appeal by notice in writing to the appellant and to any other person appearing to them to be affected by it.

(7) Paragraph (8) applies where any other person—

(a) has made an application under regulation 69 (applications to resolve disagreements) or 71 (reference of disagreement for reconsideration by Scottish Ministers) which has not been determined in respect of any of the matters which are the subject of an appeal under this regulation; or

(b) makes such an application—

(i) at the same time as such an appeal is made; or

(ii) after such an appeal is made and before it is determined.

(8) The appeal must be sisted—

(a) pending notification of a decision under regulation 70 (notice of decisions on disagreements) or 72 (notice of decision on reconsideration of disagreement); or

(b) until the application is withdrawn.

Exchange of information

75

(1) A Scheme employer must—

(a) inform the appropriate administering authority of all decisions made by the employer under regulation 67 (first instance decisions) or given under regulation 70 (notice of decisions on disagreements) by a person appointed by the Scheme employer under regulation 68(5)(c) (notification of first instance decisions) concerning members; and

(b) give that authority such other information as it requires for discharging its Scheme functions.

(2) If—

(a) an administering authority makes any decision under regulations 67 (first instance decisions) or 70 (notice of decisions on disagreements) about a person for whom it is not the Scheme employer; and

(b) information about that decision is required by the person's Scheme employer for discharging that employer's Scheme functions,

that authority must give that employer that information if asked to supply it.

(3) Within 3 months of the end of each Scheme year, each Scheme employer must give a statement to the appropriate administering authority giving the following details in respect of each employee who has been an active member during the Scheme year—

(a) the employee's name and gender;

(b) the employee's date of birth and national insurance number;

(d) the information relating to the employee for the Scheme year in question for each employment which is specified in paragraph (4).

(4) The information required by paragraph (3)(d) is—

(a) the dates of active membership;

(b) the pensionable pay received and employee contributions deducted while regulation 9 (contributions) applied;

(c) the pensionable pay received and employee contributions deducted while regulation 10 (temporary reduction in contributions) applied;

(d) any contributions by the employer in relation to the employee's pensionable pay;

(e) any contributions by employee or employer under regulation 16 (additional pension contributions); and

(f) any contributions by employee or employer under regulation 17 (additional voluntary contributions).

Interest on late payment of certain benefits

76

(A1) This regulation does not apply to sums in respect of which interest is payable under—

(a) regulation 4T of the Transitional Provisions and Savings Regulations 2014; or

(b) regulation 14 of the Local Government Pension Scheme (Remediable Service) (Scotland) Regulations 2023.

(1) Where all or part of a pension or lump sum payment due under these Regulations (other than a payment due under regulation 17 (additional voluntary contributions)) is not paid within the relevant period after the due date, an administering authority must pay interest on the unpaid amount to the person to whom it is payable.

(2) The relevant period is—

(a) in the case of a survivor pension, the period ending one month after the date on which the administering authority receives notification of the member's death;

(b) in the case of any other pension, one year; or

(3) The due date is—

(a) in the case of a pension, the date on which it becomes payable;

(b) in the case of a lump sum under regulation 32 (election for lump sum instead of pension) the benefit crystallisation event date;

(c) in the case of a death grant, the date on which the member dies or, where notification of death is received more than 2 years after the date of death, the date of notification; or

(d) in the case of a lump sum under regulation 33 (commutation and small pensions) the date of the commutation election or, if later, the nominated date within the meaning of paragraph 7(3) of Part 1 of schedule 29 of the Finance Act 2004 .

(4) Interest payable under this regulation is calculated at one per cent above base rate on a day to day basis from the due date of payment and compounded with 3-monthly rests.

Payments due in respect of deceased persons

77

(1) Paragraph (2) applies if, when a person dies, the total amount due to that person's personal representatives under the Scheme (including anything due at that person's death) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965 and applying in relation to that person's death.

(2) An administering authority may pay the whole or part of the amount due from its pension fund to—

(a) a person's personal representatives; or

(b) any person or persons appearing to the authority to be beneficiaries to the estate,

without the production of confirmation of the person's estate.

(3) Such a payment discharges that authority from accounting for the amount paid.

Payments for persons incapable of managing their affairs

78

If it appears to an administering authority that a person is entitled to payment of benefits under the Scheme but is incapacitated (within the meaning of section 1 of the Adults with Incapacity (Scotland) Act 2000) —

(a) the authority may pay the benefits or any part of them to a person having the care of the person entitled, or such other person as the authority may determine, to be applied for the benefit of the person entitled; and

(b) in so far as the authority does not pay the benefits in that manner, the authority may apply them in such manner as the authority may determine, for the benefit of the person entitled, or any beneficiaries of the person entitled.

Non-assignability

79

(1) Every benefit to which a person is entitled under the Scheme is payable to or in trust for that person.

(2) No such benefit may be assigned or charged and any such assignation or charge is void.

(3) On the bankruptcy of a person entitled to a benefit under the Scheme no part of the benefit passes to any trustee or other person acting on behalf of the creditors, except in accordance with a debtor contribution order fixed by the Accountant in Bankruptcy under section 90(1) of the Bankruptcy (Scotland) Act 2016 or varied by a debtor's trustee under section 95(1) of that Act.

Deduction and recovery of member's contributions

80

(1) A Scheme employer may deduct from a person's pay any contributions payable by the member under these Regulations.

(2) Sums payable under regulation 13(1) (contributions during reserve forces leave) may be deducted from any payment made under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 , to the extent that they are payable in respect of the same period.

(3) An administering authority may recover any contributions or sum remaining due and not deducted under paragraph (1) or (2)—

(a) as a debt arising under a contract in any court of competent jurisdiction; or

(b) by deducting it from any payment by way of benefits to or in respect of the person in question under these Regulations.

(4) But the sums mentioned in paragraph (2) are only recoverable under paragraph (3) if unpaid for 12 months after the person ceases to perform relevant reserve forces service.

(5) If—

(a) a Scheme employer deducts in error any amount in respect of contributions from a person's pay or any other sum due to that person; and

(b) the amount has not been repaid before the expiry of the period of one month beginning with the date of the deduction,

the appropriate body must pay interest on the amount, and the due date for the calculation of the interest payable is the date of the deduction.

(6) Where the employee's contributions have been paid into a fund, the repayment and any interest must be made out of that fund.

(7) Interest must be calculated at one per cent above base rate on a day to day basis from the due date of payment and compounded with 3-monthly rests.

(8) The “appropriate body” for the purposes of paragraph (5) is—

(a) the appropriate administering authority, where the employee's contributions have been paid into a fund; and

(b) the person's Scheme employer where the employee's contributions have not yet been paid into a fund.

Joint liability in respect of annual allowance charge

81

(1) This regulation applies where a member gives notice to the appropriate administering authority of joint and several liability under section 237B (liability of scheme administrator) of the Finance Act 2004 in respect of the member's annual allowance charge.

(2) Where the joint liability amount specified in the notice is met by the pension fund, the appropriate administering authority must reduce the value of the member's rights accrued under the Scheme in accordance with actuarial guidance issued by the Scottish Ministers.

Tax

82

The appropriate administering authority may deduct from any payment of benefits under the Scheme any tax to which they may become chargeable under the Finance Act 2004.

Pension increase under the Pension Schemes Act 1993

83

Any increase of pension required by reason of Chapter 3 of Part 4 of the Pension Schemes Act 1993 (protection of increases in guaranteed minimum pensions: anti-franking) must be paid from the appropriate fund held by the administering authority.

Annual benefit statements

84

(1) An administering authority must issue an annual benefit statement to each of its active, deferred and pension credit members.

(2) Subject to paragraph (3), the statement must be issued no later than 5 months after the end of the Scheme year to which it relates.

(3) A statement must be issued before the end of the 5 month period mentioned in paragraph (2) where a member makes a request in writing to the administering authority, unless that authority is unable to comply with the request because relevant data is not available.

(4) The statement for an active member must be provided in accordance with section 14 of the Public Services Pensions Act 2013 .

Information to be supplied by employees

85

(1) Before the expiry of 3 months beginning with the date on which a person becomes a member, the Scheme employer must ask the member in writing for the documents specified in paragraph (2).

(2) Those documents are—

(a) a statement in writing listing all the person's previous periods of membership of a public service pension scheme (including the Scheme); and

(b) copies of all notifications previously given to the member under these Regulations and their equivalents under any previous Regulations.

(3) A request under this regulation must contain a conspicuous statement that it is important that the member gives full and accurate information, especially for ascertaining the member's rights under the Scheme.

(4) The Scheme employer need not request any documents if it is satisfied that it, or the appropriate administering authority (if different), already has all material information.

Forfeiture

86

(1) If a member is convicted of a relevant offence, the former Scheme employer may apply to the Scottish Ministers who may issue a forfeiture certificate.

(2) A relevant offence is an offence committed in connection with an employment in which the person convicted is a member.

(3) Where a former Scheme employer applies for a forfeiture certificate, it must at the same time send the convicted person and the appropriate administering authority a copy of the application.

(4) Where a forfeiture certificate is issued, the member's former Scheme employer may direct that any of the member's rights (including membership and survivor benefits) under these Regulations are forfeited, and in making the determination the Scheme employer must take into account any recommendations issued by Scottish Ministers when issuing a forfeiture certificate under paragraph (1).

(5) The former Scheme employer must serve a notice of its decision to make a direction on the member.

(6) A forfeiture certificate is a certificate that the offence—

(a) was gravely injurious to the State; or

(b) is liable to lead to a serious loss of confidence in the public service.

(7) If the former Scheme employer incurred loss as a direct consequence of the relevant offence, it may only give a direction under paragraph (4) if—

(a) it is unable to recover its loss under regulation 87 (recovery or retention where former member has misconduct obligation); or

(b) it is unable to recover its loss by any other means,

except after an unreasonable time or at disproportionate cost.

(8) A direction under paragraph (4) may only be given if an application for a forfeiture certificate has been made by the former Scheme employer before the expiry of the period of 3 months beginning with the date of conviction.

Recovery or retention where former member has misconduct obligation

87

(1) This regulation applies where a person—

(a) has left an employment in which that person was or had at some time been a member of the Scheme, in consequence of grave misconduct or a criminal, negligent or fraudulent act or omission in connection with that employment;

(b) has incurred some monetary obligation, arising out of that misconduct, act or omission, to the body that was the Scheme employer in that employment; and

(c) is entitled to benefits under these Regulations, which for the purposes of this regulation includes entitlement to a refund of contributions.

(2) The former Scheme employer may recover or retain out of the appropriate fund the amount of the monetary obligation.

(3) The former Scheme employer must give the former employee—

(a) not less than 3 months' notice of the amount to be recovered or retained under paragraph (2); and

(b) a statement showing the amount recovered or retained, how it is calculated and the effect on the person's benefits or prospective benefits.

(4) If there is any dispute over the amount of the monetary obligation specified in paragraph (1)(b), the former Scheme employer may not recover or retain any amount under paragraph (2) until the obligation is enforceable under an order of a competent court or the award of an arbiter.

Adjustment of accounts following forfeiture etc

88

(1) Where a direction for forfeiture is issued under regulation 86 (forfeiture of pension rights after conviction for employment-related offences) the appropriate administering authority must transfer out of the member's pension account the benefits which are forfeited and pay them to the relevant Scheme employer.

(2) Where an amount is recovered or retained under regulation 87 (recovery or retention where former member has misconduct obligation), the appropriate administering authority must transfer out of the member's pension account the amount recovered or retained and pay it to the relevant Scheme employer.

(3) If the effect of a forfeiture direction, or of the recovery or retention of an amount, is to extinguish the member's entitlement to benefits, the administering authority must close the member's pension account.

Protection of guaranteed minimum pension rights

89

(1) The power to direct forfeiture of benefits under regulation 86 (forfeiture of pension rights after conviction for employment-related offences) or to recover or retain amounts under regulation 87 (recovery or retention where former member has misconduct obligation) may not be exercised so as to deprive a person of the guaranteed minimum pension or any widow's, widower's or surviving civil partner's guaranteed minimum pension.

(2) But such a power may be exercised if the person is convicted—

(a) of the offence of treason; or

(b) of one or more offences under the Official Secrets Acts 1911 to 1989 , or under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023, for which the person has been sentenced on the same occasion—

(i) to a term of imprisonment of at least 10 years; or

(ii) to 2 or more consecutive terms amounting in the aggregate to at least 10 years.

Certificates of protection

Certificate of protection

90

(1) Where, otherwise than by virtue of a member's own circumstances—

(a) the member's rate of pay is permanently reduced; or

(b) the rate at which it may be increased is restricted in such a way that it is likely that the rate of the member's pension will be adversely affected,

the member is entitled to be issued with a certificate to that effect by the Scheme employer, (but see paragraph (3)).

(2) A certificate of protection issued by a Scheme employer after the coming into force of these Regulations has effect for 10 years from the date the member's pay is reduced or restricted and, where the member elects, the member's pay for the purposes of calculating the member's pension (and other benefits under these Regulations) is the member's pay but as if the reduction or other restriction specified in the certificate had not come into effect.

(3) A member is not entitled to be issued with a certificate under this regulation if the reduction in the member's rate of pay—

(a) is temporary; or

(b) consists of the termination of, or a reduction in, a temporary increase in the rate of pay.

(4) A certificate issued under this regulation must specify the date of the reduction or restriction.

(5) The Scheme employer may issue a certificate without an application of the member, but need not issue a certificate if the member does not apply for one within 12 months after the date of reduction or restriction.

(6) The Scheme employer must send a copy of the certificate to the member's appropriate administering authority.

(7) The Scheme employer must keep a record of the certificate including such information as would be necessary for applying paragraph (2) for the period of 10 years beginning with the date of reduction or restriction specified in it.

(8) If the member ceases to be an active member with the Scheme employer that issued the certificate, the certificate does not carry forward in relation to any further period of membership with another Scheme employer except where the member transfers employment from the Scheme employer that issued the certificate to employment with another Scheme employer as a result of a transfer—

(a) to which the TUPE Regulations apply; or

(b) which is treated as if it were a relevant transfer within the meaning of regulation 2(1) and 3 of the TUPE Regulations, notwithstanding regulation 3(5) of those Regulations.

(9) If the member leaves the employment under which the certificate was issued, without becoming entitled to immediate or deferred pension benefits, the certificate lapses.

(10) The operation of a certificate issued under this regulation is subject to guidance issued by the Scottish Ministers.

Transfers

Rights to payment out of pension fund

91

(1) A member is entitled to request a transfer under Chapter 1 or 2 of Part 4ZA of the Pension Schemes Act 1993 and where the member does so the amount of any transfer payment due in respect of the member under the relevant transfer may only be paid by the administering authority from its pension fund if the transfer payment is a recognised transfer (within the meaning of section 169 of the Finance Act 2004 ) in accordance with guidance from Scottish Ministers.

(1A) Where a transfer under paragraph (1) is applied for by an eligible member and is not a Club Transfer, the value of the transfer is to be calculated in accordance with actuarial guidance issued by the Scottish Ministers, taking into account the member’s provisional underpin amount and provisional assumed benefits, which are calculated in accordance with regulations 4I and 4J of the Transitional Provisions and Savings Regulations 2014.

(2) Where such a transfer payment is to be or has been paid from a fund, no other payment or transfer of assets may be made from the fund as respects the accrued rights covered by the transfer payment.

(3) Paragraph (2) overrides anything to the contrary in these Regulations.

(4) “Eligible member” has the same meaning as in regulation 4A(2) of the Transitional Provisions and Savings Regulations 2014.

Contracting-out requirements affecting transfers out

92

(1) There must be deducted from the transfer payment to be made in respect of any person to a contracted-in defined benefit registered pension scheme—

(a) the amount of any contributions equivalent premium payable pursuant to section 55 of the Pension Schemes Act 1993 ; or

(b) an amount sufficient to meet the liability in respect of the person's contracted-out rights.

(2) Where the amount mentioned in paragraph (1)(a) is deducted, the appropriate administering authority must use that amount to pay the premium.

(3) Where the amount mentioned in paragraph (1)(b) is deducted, the appropriate administering authority may use the amount in preserving the liability mentioned in that sub-paragraph in the appropriate fund unless the member wishes a transfer payment in respect of it to be paid to the trustees or managers of a contracted-out defined benefit or contracted-in defined contribution registered pension scheme.

(4) Contracted-out rights, in relation to a member, are—

(a) the member's, and any surviving spouse, civil partner or cohabiting partner's rights to guaranteed minimum pensions; and

(b) the member's section 9(2B) rights as defined in regulation 1(2) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 .

Bulk transfer (transfers of undertakings etc)

93

(1) This regulation applies where—

(a) 2 or more members' active membership ends on their joining a different registered pension scheme (“the new scheme”);

(b) it is agreed by—

(i) the members' appropriate administering authority;

(ii) the members' Scheme employers (if different); and

(iii) the trustees or managers of the new scheme;

that a payment should be made under this regulation; and

(i) agree in writing that payment should be made instead of any payment which they otherwise might require to be made under Chapter 4 or 5 of Part 4 of the Pension Schemes Act 1993; and

(ii) waive any rights they might have under those Chapters by virtue of the cessation of their active membership.

(2) The appropriate administering authority must not give its agreement under paragraph (1)(b) unless it is satisfied that the rights that each of the members will acquire under the new scheme are at least equivalent to those which would have obtained if a transfer value had been paid to the same scheme under Chapter 4 or 5 of Part 4 of the Pension Schemes Act 1993, as they apply as modified by these Regulations (assuming in any case where a member would not be entitled to such a payment that the member was so entitled).

(3) The appropriate administering authority must calculate the appropriate amount of earned pension in accordance with actuarial guidance issued by the Scottish Ministers.

(4) The appropriate administering authority must provide each member with sufficient information in writing to check that the matters of which the authority must be satisfied under paragraph (2) are satisfied, before the member agrees as mentioned in paragraph (1)(c).

(5) The appropriate administering authority must—

(a) set aside (whether in cash or in assets or both) such part of the appropriate fund (“transfer payment”) as an actuary appointed by the authority and an actuary appointed by the trustees or managers of the new schemes for the purpose may agree as appropriate for the acquisition of such rights in that scheme as they may so agree; and

(b) pay or transfer the transfer payment to the trustees or managers of the new scheme for the benefit of the relevant members.

(6) The appropriate administering authority must certify to the new scheme's trustees or managers the amount included in the transfer payment which represents each member's contributions and interest on them.

(7) Where a transfer payment is to be or has been made under this regulation, no other payment or transfer of assets will be made from the pension fund by reason of membership covered by the transfer payment.

(8) Paragraph (7) overrides anything to the contrary in these Regulations.

(9) This regulation is subject to regulation 10(6) of the Local Government Pension Scheme (Remediable Service) (Scotland) Regulations 2023 (transfer payments out of the fund before 1 October 2023).

Calculation of amount of transfer payment

94

(1) The amount of the transfer payment to be paid under regulation 93 (bulk transfers) is the amount determined by an actuary appointed by the members' appropriate administering authority to be equal to the value at the date those members join the new scheme, of the actual and potential liabilities payable from its fund which have then accrued in respect of the members and the persons who are or may become entitled to benefits under the Scheme through the members.

(2) The actuary may make such adjustments as are thought fit in calculating that amount and in particular as respects the period from the date mentioned in paragraph (1) to the date of actual payment of the transfer value.

(2A) The actuary must take into account the member’s provisional underpin amount and provisional assumed benefits, which are calculated in relation to the member in accordance with regulations 4I and 4J of the Transitional Provisions and Savings Regulations 2014.

(3) The actuary must specify in the valuation the actuarial assumptions used in making it.

(4) The Scheme employer pays the costs of determining the appropriate part of the fund and apportioning the fund.

(5) But if there is more than one Scheme employer involved, each pays such part of the costs as the actuary determines to be appropriate.

Inward transfers of pension rights

95

(1) An active member with relevant pension rights may request the appropriate administering authority to accept a transfer value for some or all of those rights from the relevant transferor.

(2) In this regulation “relevant pension rights” are—

(a) accrued rights under a registered pension scheme other than rights to benefits under the scheme which are attributable (directly or indirectly) to a pension credit; and

(b) accrued rights under a European pensions institution.

(3) Accrued rights under a registered pension scheme include rights to preserved benefits and rights appropriately secured under section 19 of the Pension Schemes Act 1993 .

(4) The relevant transferor for the rights specified in paragraph (1) is the trustees or managers of the scheme under which the transferring person's relevant pension rights arise.

(5) But the relevant transferor for the rights specified in paragraph (3) are the trustees and managers of the scheme, or the insurance company, to which a payment in respect of the person's accrued rights has been made.

(6) A request from a transferring person under paragraph (1) must be made by notice in writing given to the appropriate administering authority before the expiry of the period of 12 months beginning with the date on which the person first became an active member in an employment (or such longer period as the Scheme employer may allow).

(7) Where a request under paragraph (1) is duly made, the administering authority may accept the transfer value and credit it to its pension fund.

(8) The calculation of the appropriate amount of earned pension is to be in accordance with actuarial guidance issued by the Scottish Ministers.

Effect of acceptance of transfer value

96

(1) Where a transfer value has been accepted under regulation 95 (inward transfer of pension rights), the administering authority must credit the active member's pension account with the appropriate amount of earned pension.

(2) The calculation of the appropriate amount of earned pension for the purposes of paragraph (1) is to be in accordance with actuarial guidance issued by the Scottish Ministers.

Changes of administering authority

97

(1) Subject to paragraph (7), this regulation applies where—

(a) an administering authority becomes an active member's appropriate administering authority;

(b) immediately before it does so, another administering authority was that member's appropriate administering authority; and

(2) An administering authority which has ceased to be a member's appropriate administering authority must make a transfer value payment to the member's new appropriate administering authority in accordance with actuarial guidance issued by the Scottish Ministers.

(3) Where paragraph (2) applies as respects 10 or more members by virtue of a single event, the amount of the payment under that paragraph is determined by agreement between an actuary appointed by the administering authority by which the payment must be made and an actuary appointed by the administering authority to which it must be made.

(4) Where the actuaries cannot agree on the amount within 12 months of the date of transfer, or where there is more than one date of transfer, within 12 months of the date of the last transfer which relates to the single event—

(a) the matter will be referred to a third actuary, chosen by agreement between the actuaries, or in default of agreement, by the President of the Institute and Faculty of Actuaries ; and

(b) that actuary's determination is final.

(5) The costs of determining the amount to be transferred shall be paid in equal shares by the fund held by the member's former appropriate administering authority and the fund held by the member's new appropriate administering authority.

(6) Any payment under paragraph (2) must be credited to the new appropriate administering authority's fund.

(7) This regulation does not apply where a member enters an employment in local government service which is concurrent with another in which the member is also an active member.

Councillors

98

For the purposes of these Regulations, councillors of a local authority are treated as employees of a local authority subject to the modifications listed in schedule 5.

Separate employments

Separate employments etc.

99

(1) Where a person holds separate employments under one Scheme employer, these Regulations apply as if each of them were under a different employer.

(2) This regulation also applies where an employee of a Scheme employer is also employed to carry out one or more of the additional duties.

(3) The additional duties are duties as—

(a) a returning officer at—

(i) local government elections; or

(ii) elections for the Scottish Parliament; or

(iii) UK Parliamentary elections;

(b) an acting returning officer (including as a regional or local returning officer at a European Parliamentary election).

Scheme actuary and employer cost cap

Scheme actuary

100

(1) The Scottish Ministers must appoint an actuary as Scheme actuary to carry out valuations of the Scheme and any connected scheme in accordance with Treasury directions made under section 11(2) of the Public Service Pensions Act 2013 (“the Treasury directions”).

(2) The person appointed as Scheme actuary under paragraph (1) must, in the opinion of the Scottish Ministers, be appropriately qualified to carry out a valuation of the Scheme.

(3) The Scottish Ministers must secure that the Scheme actuary carries out actuarial valuations of the assets and liabilities of the Scheme on the dates specified in regulation 60(1)(a) (actuarial valuations of pension funds) and prepare valuation reports in accordance with the Treasury directions, within such period as enables the requirements in those directions to be met.

(4) An administering authority must provide the Scheme actuary with any data that the Scheme actuary reasonably requires, in accordance with the Treasury directions, in order to carry out a valuation and prepare a report on the valuation.

Employer cost cap

101

(1) The employer cost cap for the Scheme is 15.2% of pensionable earnings of members of the Scheme.

(2) Where the cost of the Scheme, calculated following a valuation in accordance with Treasury directions under section 11(2) of the Public Service Pensions Act 2013, is more than the margins specified in the Public Service Pensions (Employer Cost Cap) Regulations 2014 above or below the employer cost cap, the Scottish Ministers must follow the procedure specified in paragraph (3) for reaching agreement with administering authorities, employers and members (or representatives of employers and members) as to the steps required to achieve the target cost specified in those Regulations.

(3) The procedure specified for the purposes of section 12(6)(a) of the Public Service Pensions Act 2013 is consultation for such period as the Scottish Ministers consider appropriate with the Scheme Advisory Board with a view to reaching an agreement endorsed by all members of that Board.

(4) If, following such consultation, agreement is not reached within 3 months of the date on which the consultation period ends, the Scottish Ministers must take steps to adjust the rate at which benefits accrue under regulation 23(4) or (5) (active member's pension accounts) so that the target cost for the Scheme is achieved.

Revocations and transitional provisions

102

(1) The Regulations specified in Schedule 6 are revoked.

(2) Anything done under or by virtue of any regulation revoked by these Regulations if it could have been done under or for the purpose of these Regulations, is deemed to have been done under or by virtue of the corresponding provision of these Regulations and anything begun under or by virtue of any such regulation may be continued under these Regulations as if begun under these Regulations.

SCHEDULE 1 — Interpretation

In these Regulations—

“active member” means a person who is in an employment, and— paying contributions to the Scheme; or treated as paying contributions to the Scheme;and for this purpose a person who is “in an employment” includes a person who is absent from that employment for one of the reasons mentioned in regulation 11 and “active membership” is construed accordingly;

“actuarial guidance issued by the Scottish Ministers” means guidance identified by the Scottish Ministers as such which has been issued in accordance with regulation 2(3);

“additional maternity or adoption leave” means leave under section 73 or 75B of the Employment Rights Act 1996[^f00053];

“additional paternity leave” means leave under the Additional Paternity Leave Regulations 2010[^f00054];

“additional pension” means pension under these Regulations other than earned pension;

“administering authority” means a body listed in schedule 3 which is required to maintain a fund for the purposes of these Regulations;

“admission agreement” means an agreement between an administering authority and an admission body that named individuals, or all or any specified class of the admission body’s employees, may be members of the Scheme;

“admission body” means a body listed in paragraph 1 of Part 2 of schedule 2;

“amount of accrued pension” means the earned pension in a member’s pension account adjusted to take account of any revaluation adjustment applicable;

“amount of pension payable” means the earned pension and additional pension in a member’s pension account adjusted to take account of any revaluation adjustment, index rate adjustment, commutation amount or pension account adjustment applicable;

“annual allowance charge” has the meaning given to that expression by section 227 of the Finance Act 2004[^f00055];

“assumed pensionable pay” has the meaning given by regulation 21;

“automatic enrolment date” means the automatic enrolment date within the meaning of section 3 of the Pensions Act 2008[^f00056];

“automatic re-enrolment date” means— for the purposes of regulation 3(5)(b), the automatic re-enrolment date chosen by a member’s employer in accordance with section 5 of the Pensions Act 2008 and regulation 12 of the Occupational and Personal Pensions Schemes (Automatic Enrolment) Regulations 2010[^f00057] for those of its eligible jobholders who are not active members; and for the purposes of regulation 10(5)(a), the automatic re-enrolment date chosen by a member’s employer in accordance with section 5 of the Pensions Act 2008 and regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 for those of its eligible employees who are not active members (or the date the employer would have chosen if the employer did not have any such employees);

“AVC” has the meaning given by regulation 17;

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“benefit crystallisation event” has the meaning given by section 216 of the Finance Act 2004[^f00058];

“child-related leave” means— ordinary adoption leave; ordinary maternity leave; additional maternity or adoption leave during which the member receives some pensionable pay; paternity leave; additional paternity leave; or shared parental leave during which the member receives some pensionable pay;

“children’s pension” means a pension payable to an eligible child in accordance with regulation 40, 43 or 46;

“Club Memorandum” means the current memorandum published by the Cabinet Office under the title “The Public Sector Transfer Club – memorandum by the Cabinet Office”[^f00059];

“Club Transfer” means a transfer of employment between members of the Public Sector Transfer Club;

“cohabiting partner” means a person whom the appropriate administering authority is satisfied fulfils the following conditions— the person (P) has fulfilled the condition in paragraph (b) for a continuous period of at least 2 years on the date the member (M) died; and the condition is that— M is able to marry or form a civil partnership with P; M and P are living together as if they were a married couple or as if they were civil partners; neither M nor P is living with a third person as if they were a married couple or as if they were civil partners; and either P is financially dependent on M, or M and P are financially interdependent;

“commutation amount” means the amount of pension a member has elected to give up in return for a lump sum in accordance with regulation 32;

“deferred member” has the meaning given by regulation 6;

“deferred payment enhancement” means the amount by which a member’s pension is increased pursuant to regulation 29(5) or (12);

“dependant” in relation to a person means that in the opinion of the administering authority, at the date of the member’s death— the person was financially dependent on the member; the person’s financial relationship with the member was one of mutual dependence; or the person was dependent on the member because of the person’s physical or mental impairment;

“early payment reduction” means the amount by which a member’s entitlement is reduced pursuant to regulation 29(6), (7) or (13);

“earned pension” means pension accrued from the member’s pensionable pay pursuant to regulation 23(4) or (5) or credited pursuant to regulation 96(1) (effect of acceptance of transfer value);

“eligible child”, in relation to a deceased member, means— a natural or adopted child of a member who meets any of conditions A to C and who was born before, on, or in the case of a natural child, within 12 months of the member’s death; or a step-child or child accepted by the deceased as a member of the family (excluding a child sponsored by the member through a registered charity) who— meets any of conditions A to C; and was dependent on the member at the date of the member’s death.

Condition A is that the person is aged under 18.

Condition B is that the person is in full-time education or vocational training and has not reached the age of 23 (but an administering authority may continue to treat a person as fulfilling Condition B notwithstanding any break in a course of education or vocational training, although the person does not fulfil Condition B during such a break).

Condition C is that the person is unable to engage in gainful employment because of physical or mental impairment and either— has not reached the age of 23; or the impairment is in the opinion of an IRMP likely to be permanent and the person was dependent on the member at the date of the member’s death because of that physical or mental impairment;

“employment” for the purposes of these Regulations only shall include holding an office, and related expressions are construed accordingly;

“enactment” has the same meaning as in section 126(1) of the Scotland Act 1998[^f00060];

“European pensions institution” has the same meaning as in section 293(8) of the Pensions Act 2004[^f00061];

“gainful employment” means paid employment for not less than 30 hours in each week for a period of not less than 12 months;

“the Governance Regulations” means the Local Government Pension Scheme (Governance) (Scotland) Regulations 2015[^f00062];

“index rate adjustment” means the percentage increase that would apply if the balance in the member’s account were a pension in payment eligible for increase under the Pensions (Increase) Act 1971[^f00063];

“IRMP” means an independent registered medical practitioner who is registered with the General Medical Council and— holds a diploma in occupational health medicine (D Occ Med) or an equivalent qualification issued by a competent authority in an EEA state; and for the purposes of this definition, “competent authority” has the meaning given by section 55(1) of the Medical Act 1983[^f00064]; or is an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equivalent institution of an EEA state;

“joint liability amount” has the meaning given to that expression by section 237B(3) of the Finance Act 2004[^f00065];

“membership” is to be construed in accordance with section 124(1) of the Pensions Act 1995[^f00066];

“non-contractual overtime” means overtime (above the hours of the standard full-time working week) that the employee (part-time or full time) is not contracted to work;

“normal pension age” means the pensionable age of a person as specified from time to time in schedule 4 of the Pensions Act 1995, or if higher, age 65;

“occupational pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993[^f00067];

“ordinary adoption leave” means leave under section 75A of the Employment Rights Act 1996[^f00068];

“ordinary maternity leave” means leave under section 71 of the Employment Rights Act 1996[^f00069];

“partner” means a spouse, civil partner or cohabiting partner;

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002[^f00070];

“payment period” means a period of service to which an employee’s wages or salary payments relate;

“pensionable age” has the meaning given in section 181 of the Pension Schemes Act 1993;

“pensionable pay” has the meaning given by regulation 20 but if the circumstances specified in regulation 21(2) apply, references in these Regulations to a member’s pensionable pay are references to that member’s assumed pensionable pay;

“pension account” means an account of a description in regulation 22(3)(b);

“pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999[^f00071];

“pension credit member” has the meaning given by regulation 8(1);

“pension debit” means a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999;

“pensioner member” has the meaning given by regulation 7(1);

“pension board” means a board or committee established by an administering authority to discharge functions under regulation 5 (pension boards) of the Governance Regulations;

“pension sharing order” means any provision or order specified in section 28 of the Welfare Reform and Pensions Act 1999;

“permanently incapable” refers to the member being incapable until at the earliest the member’s normal pension age;

“public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993[^f00072];

“Public Sector Transfer Club” means the arrangements approved by the Secretary of State and detailed in the Club Memorandum as providing reciprocal arrangements between the Scheme and other registered occupational pension schemes for making and receiving transfer value payments;

“qualifying recognised overseas pension scheme” has the meaning given by section 169(2) of the Finance Act 2004[^f00073];

“qualifying service for a period of 2 years” has the meaning given by regulation 3(6);

“reference banks” means the seven largest persons for the time being who— have permission under Part 4A of the Financial Services and Markets Act 2000[^f00074] to accept deposits; are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and quote a base rate in sterling, and, for the purposes of this definition, the size of the person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006[^f00075]), as shown in the audited end-of-year accounts last published before that time;

“registered pension scheme” has the same meaning as in section 150(2) of the Finance Act 2004;

“reserve forces pay” means the total of— pay for performing relevant reserve forces service (including marriage, family and similar allowances); and any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951[^f00076];

“reserve forces service leave” means absence from duty because of being called out or recalled for permanent service in Her Majesty’s armed forces pursuant to a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996[^f00077];

“retirement pension” includes earned pension and additional pension;

“revaluation adjustment” means— in the case of a balance transferred under a Club Transfer, the revaluation adjustment that would have applied to that balance if it had not been transferred; and in any other case the percentage specified as the change in prices in the relevant Treasury order made under section 9(2) of the Public Service Pensions Act 2013 which is to be applied to a sum in a pension account at the beginning of the next scheme year;

“SCAVC” has the meaning given in regulation 17(1);

“the Scheme” has the meaning given in regulation 2;

“Scheme actuary” means the actuary appointed under regulation 100 (Scheme actuary);

“Scheme Advisory Board” means the board established under regulation 2 (Scheme Advisory Board) of the Governance Regulations;

“Scheme employer” means a body which is listed in Schedule 2 and has any employee who is eligible to be a member and includes an admission body;

“Scheme employer’s consent” includes the consent of the appropriate administering authority in circumstances where the member’s former employer is no longer a Scheme employer;

“Scheme employment” means an employment by virtue of which a person is entitled to be a member of the Scheme;

“Scheme pays election” means a member giving the administering authority notice of joint and several liability under section 237B of the Finance Act 2004[^f00078] in respect of the member’s annual allowance charge;

“Scheme year” means a period of one year beginning with 1st April and ending with 31st March;

“shared parental leave” means leave as defined in regulation 3 of the Shared Parental Leave Regulations 2014[^f00079];

“statutory pay” means any statutory sick, maternity, paternity, shared parental or adoption pay payable under the Social Security Contributions and Benefits Act 1992[^f00080];

“survivor member” means a person entitled to a survivor pension or a children’s pension;

“survivor pension” means a pension payable under regulation 39, 40, 42, 43, 45 or 46;

“Tier 1 benefits” means the benefits a member is entitled to under regulation 34(4) (calculated in accordance with regulation 37);

“Tier 2 benefits” means the benefits a member is entitled to under regulation 34(5) (calculated in accordance with regulation 37);

“trade dispute” has the meaning given in section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992[^f00081];

“transfer value payment” means a payment made from the Scheme to another registered pension scheme or qualifying recognised overseas pension scheme, or a payment received by the Scheme from a registered pension scheme or from a European pensions institution;

“the Transitional Provisions and Savings Regulations 2014” means the Local Government Pension Scheme (Transitional Provisions and Savings) (Scotland) Regulations 2014[^f00082];

“the TUPE Regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006[^f00083]; and

“UFPLS” means an uncrystallised funds pension lump sum as defined in paragraph 4A of schedule 29 of the Finance Act 2004, as inserted by paragraph 57 of schedule 1 of the Taxation of Pensions Act 2014[^f00084].

SCHEDULE 2 — Scheme employers

PART 1

A local authority which is a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994[^f00085].

A joint board or joint committee appointed under any enactment, order or scheme, all the constituent authorities of which are local authorities.

The body known as Scottish Water established under section 20 of the Water Industry (Scotland) Act 2002[^f00086].

The Scottish Children’s Reporter established under section 128 of the Local Government etc. (Scotland) Act 1994 and continued in being by section 15 of the Children’s Hearings (Scotland) Act 2011[^f00087].

The Scottish Environment Protection Agency established under section 20 of the Environment Act 1995[^f00088].

A board of management of a college of further education established in terms of Part 1 of the Further and Higher Education (Scotland) Act 1992[^f00089].

The Strathclyde Passenger Transport Authority established under section 40(1) of the Local Government etc. (Scotland) Act 1994.

The Strathclyde Passenger Transport Executive established under section 9(1) of the Transport Act 1968[^f00090] or any subsidiary thereof.

VisitScotland, established under section 1(1) of the Development of Tourism Act 1969[^f00091].

A Transport Partnership created by virtue of an order under section 1 of the Transport (Scotland) Act 2005[^f00092].

The Scottish Police Authority established under section 1 of the Police and Fire Reform (Scotland) Act 2012[^f00093].

The Scottish Fire and Rescue Service established under section 1A(1) of the Fire (Scotland) Act 2005[^f00094].

PART 2

1

The following bodies are admission bodies with whom an administering authority may make an admission agreement—

(a) a body which provides a public service in the United Kingdom which operates otherwise than for the purposes of gain and has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest (whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise);

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

(i) any Scheme employers; or

(ii) local authorities or officers of local authorities;

(d) a body that is providing or will provide a service or assets in connection with the exercise of a function of a Scheme employer as a result of—

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

(ii) any provision in any enactment;

(e) a body which provides a public service in the United Kingdom and is approved in writing by the Scottish Ministers for the purpose of admission to the Scheme.

2

An approval under paragraph 1(e) may be subject to such conditions as the Scottish Ministers think fit and the Scottish Ministers may withdraw an approval at any time if such conditions are not met.

3

The Scheme employer, if it is not also the administering authority, must be a party to an admission agreement with a body falling within the description in paragraph 1(d).

4

In the case of an admission body falling within the description in paragraph 1(b), where at the date of the admission agreement the contributions paid to the body by one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, the Scheme employer paying contributions (or, if more than one pays contributions, all of them) must guarantee the liability of the body to pay all amounts due from it under these Regulations.

5

If the admission body is exercising the functions of the Scheme employer in connection with more than one contract or other arrangement under paragraph 1(d)(i), the administering authority and the admission body shall enter into a separate admission agreement in respect of each contract or arrangement.

6

An admission agreement must require the admission body to carry out, to the satisfaction of the administering authority, and to the satisfaction of the Scheme employer in the case of a body falling within paragraph 1(d)(i), an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of service or assets by reason of insolvency, winding up, or liquidation of the admission body.

7

Notwithstanding paragraph 6, and subject to paragraph 8, the admission agreement must further provide that where the level of risk identified by the assessment is such as to require it, the admission body shall enter into an indemnity or bond in a form approved by the administering authority with—

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

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

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

8

Where, for any reason, it is not desirable for an admission body to enter into an indemnity or bond, the admission agreement must provide that the admission body secures a guarantee in a form satisfactory to the administering authority from—

(a) a person who funds the admission body in whole or in part;

(b) in the case of an admission body falling within the description in paragraph 1(d), the Scheme employer referred to in that paragraph;

(i) owns; or

(ii) controls the exercise of the functions of,

the admission body; or

(d) the Scottish Ministers in the case of an admission body—

(i) which is established by or under any enactment; and

(ii) where that enactment enables the Scottish Ministers to make financial provision for that admission body.

9

An admission agreement must include—

(a) provision for the agreement to terminate if the admission body ceases to be such a body;

(b) a requirement that the admission body notify the administering authority of any matter which may affect its participation in the Scheme;

(c) a requirement that the admission body notify the administering authority of any actual or proposed change in its status, including a take-over, reconstruction or amalgamation, insolvency, winding up, receivership or liquidation and a material change to the body's business or constitution;

(d) a right for the administering authority to terminate the agreement in the event of—

(i) the insolvency, winding up or liquidation of the admission body;

(ii) a material breach by the admission body of any of its obligations under the admission agreement or these Regulations which has not been remedied within a reasonable time;

(iii) a failure by the admission body to pay any sums due to the fund within a reasonable period after receipt of a notice from the administering authority requiring it to do so.

10

An admission agreement must include a requirement that the admission body will not do anything to prejudice the status of the Scheme as a registered scheme.

11

When an administering authority makes an admission agreement it must make a copy of the agreement available for public inspection at its offices and must promptly inform the Scottish Ministers of—

(a) the date the agreement takes effect;

(b) the admission body's name; and

12

Where an admission body is such a body by virtue of paragraph 1(d), an admission agreement must include—

(a) a requirement that only employees of the body who are employed in connection with the provision of the service or assets referred to in that sub-paragraph may be members of the Scheme;

(b) details of the contract, other arrangement or statutory provision by which the body met the requirements of that sub-paragraph;

(c) a provision whereby the Scheme employer referred to in that sub-paragraph may set off against any payments due to the body, an amount equal to any overdue employer and employee contributions and other payments (including interest) due from the body under these Regulations;

(d) a provision requiring the admission body to keep under assessment, to the satisfaction of the bodies mentioned in paragraph 6, the level of risk arising as a result of the matters mentioned in that paragraph;

(e) a provision requiring copies of notifications due to the administering authority under paragraph 9(b) or (c) to be given to the Scheme employer referred to in that sub-paragraph; and

(f) a provision requiring the Scheme employer referred to in that sub-paragraph to make a copy of the admission agreement available for public inspection at its offices.

13

Where an admission body of the description in paragraph 1(d) undertakes to meet the requirements of these Regulations, the appropriate administering authority must admit to the Scheme the eligible employees of that body.

SCHEDULE 3 — Administering authorities

1

The following bodies are required to maintain a pension fund and are administering authorities for the purposes of these Regulations—

(a) Aberdeen City Council

(b) Dumfries and Galloway Council

(d) City of Edinburgh Council

(e) Falkirk Council

(f) Fife Council

(g) Glasgow City Council

(h) The Highland Council

(i) Orkney Islands Council

(j) Scottish Borders Council

(k) Shetland Islands Council

SCHEDULE 4 — Appropriate Funds

PART 1

1

The appropriate fund for a member described in column 1 is the fund specified in column 2 of the following Table.

2

The Scottish Ministers may, on the application of a Scheme employer, by a written direction substitute a different administering authority as the appropriate administering authority for a person or class of persons.

3

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The Local Government Pension Scheme (Scotland) Regulations 2018

Payments

Employer's contributions

62

Employer's further payments

63

Payment by Scheme employers to administering authorities

64

Additional costs arising from Scheme employer's level of performance

65

Interest on late payments by Scheme employers

66

Decisions

First instance decisions

67

Notification of first instance decisions

68

Applications to resolve disagreements

69

Notice of decisions on disagreements

70

Reference of disagreement for reconsideration by Scottish Ministers

71

Notice of decisions on reconsideration of disagreement

72

Rights of representation

73

Appeals by administering authorities

74

Exchange of information

75

Interest on late payment of certain benefits

76

Payments due in respect of deceased persons

77

Payments for persons incapable of managing their affairs

78

Non-assignability

79

Deduction and recovery of member's contributions

80

Joint liability in respect of annual allowance charge

81

Tax

82

Pension increase under the Pension Schemes Act 1993

83

Annual benefit statements

84

Information to be supplied by employees

85

Forfeiture

Forfeiture of pension rights after conviction for employment-related offences

86

Recovery or retention where former member has misconduct obligation

87

Adjustment of accounts following forfeiture etc

88

Protection of guaranteed minimum pension rights

89

Certificates of protection

Certificate of protection

90

Transfers

Rights to payment out of pension fund

91

Contracting-out requirements affecting transfers out

92

Bulk transfer (transfers of undertakings etc)

93

Calculation of amount of transfer payment

94

Inward transfers of pension rights

95

Effect of acceptance of transfer value

96

Changes of administering authority

97

Councillors

Councillors