Scottish Parliamentary Pensions Act 2009

Scottish Parliamentary Pension Scheme

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

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

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

Grants payable on leaving office

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

Modification of pension schemes etc.

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• (1) The Scottish Parliament may resolve to modify—

• (a) the Scottish Parliamentary Pension Scheme,

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

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

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

• (a) the rules set out in schedule 1,

• (b) schedules 2 or 3, or

• (c) the 1999 pensions order.

• (3) A resolution may—

• (a) make different provision for different purposes,

• (b) make provision having retrospective effect.

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

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

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

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

• (c) with the modifications set out in subsections (6) and (7).

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

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

Interpretation

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In this Act—

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

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

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

• “SPCB” means the Scottish Parliamentary Corporate Body.

Commencement

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

• sections 4 and 6

• this section

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

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

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

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

Short title

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This Act is called the Scottish Parliamentary Pensions Act 2009.

SCHEDULE 1

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

Part A — The Pension Fund

The Pension Fund

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

Payments to and from Fund

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

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

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

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

Part B — Fund trustees

Fund trustees

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

Functions

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

Number of trustees

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

Eligibility

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

Appointment of Fund trustees

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

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

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

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

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

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

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

Remuneration, allowances and expenses

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

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

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

Resignation

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

• (a) the Presiding Officer, and

• (b) the other Fund trustees.

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

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

Removal

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

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

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

• (c) the Fund trustee's tenure ends under rule 12.

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

Change of status

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• (1) This rule applies—

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

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

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

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

• (c) where a Fund trustee who was a scheme pensioner when appointed becomes an MSP or the holder of a pensionable office.

• (2) Where this rule applies—

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

• (i) the Presiding Officer, and

• (ii) the other Fund trustees, and

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

Member-nominated trustees

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

Procedure

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

Quorum

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A meeting of the Fund trustees is quorate if—

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

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

Staff and advisers

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The Fund trustees may—

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

• (b) seek advice from any person.

Fund management

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

Indemnity insurance

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

Delegation

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

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

Validity of acts

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

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

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

• (c) by the fact that it is done when fewer than 3 Fund trustees held office.

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

Part C — Participating members

MSP members

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

Office-holder members

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

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

• (a) the Presiding Officer,

• (b) a deputy Presiding Officer,

• (c) one of the Scottish Ministers, or

• (d) a junior Scottish Minister.

MSP opt-out

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

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

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

• (a) the MSP is to be treated—

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

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

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

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

Office-holder opt-out

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

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

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

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

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

MSP opt-in

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

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

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

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

Office-holder opt-in

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

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

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

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

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

Part D — Contributions

Scheme member contributions

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

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

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

Amount of scheme member contribution

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

Procedure for changing scheme member contribution rate

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

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

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

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

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

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

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

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

Relief from liability to make scheme member contributions

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

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

• (3) Those contributions are to be made—

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

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

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

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

• (6) Those contributions are to be made—

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

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

• (7) If—

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

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

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