Scottish Parliamentary Pensions Act 2009

• (a) a right to be paid a pension from the age of 65,

• (b) a right to commute a portion of that pension into a lump sum,

• (c) a right to take early retirement when aged between 60 and 65 and accordingly to be paid a reduced pension,

• (d) a right to be paid a lump sum instead of a pension where the member has not yet received a pension and is not expected to live for longer than one year because of a health condition,

• (e) a right to be paid a lump sum instead of a pension where that lump sum would be a trivial commutation lump sum for the purposes of Part 1 of Schedule 29 to the Finance Act 2004 (c. 12),

• (f) where a pension credit member dies within 5 years of first receiving a pension, a right to have the pension paid to a surviving partner, dependant children or personal representatives for the remainder of the 5 year period,

• (g) where a pension credit member dies before first receiving a pension, a right to have a lump sum paid to a surviving partner, dependant children or personal representatives of an amount equal to 25% of the cash equivalent of the benefits attributable to the corresponding pension credit (within the meaning of Chapter 1 of Part 4ZA to the Pension Schemes Act 1993 (c. 48)).

• (3) An individual's benefits as a pension credit member are to be provided separately from any other benefits to which the individual may be entitled under the scheme.

• (4) A rule which extinguishes an individual's right to receive scheme benefits on being paid a lump sum does not extinguish any separate rights which the individual may have to receive benefits as a pension credit member (or as a surviving partner, dependant child or personal representative of such a member).

Pension debit members

92

• (1) A “pension debit member” is an individual whose scheme benefits have been reduced under section 31 of the Welfare Reform and Pensions Act 1999 (c. 30).

• (2) When calculating a deceased individual's “scheme pension entitlement” for the purposes of Chapter 3 of Part J (see rule 56), any reduction of the deceased's scheme benefits by way of a pension debit is to be ignored.

• (3) A pension debit member may not replace scheme benefits by buying added years which the member would not have been able to buy had those benefits not been reduced.

• (4) This rule applies for the purposes of calculating the amount of any death in service lump sum or deferred pensioner lump sum payable in respect of a pension debit member. The proportion of scheme member contributions attributable to the period before the pension debit member's scheme benefits became subject to the pension debit is to be reduced by the percentage by which those benefits were reduced. Part 4 of the Welfare Reform and Pensions Act 1999 (c. 30) sets out—

• (a) when a pension debit member's scheme benefits become subject to a pension debit (see sections 28 and 29 of that Act), and

• (b) the percentage by which those benefits are to be reduced (see section 31 of that Act).

Death of ex-partner before discharge of pension credit liability

93

• (1) This rule applies where an individual entitled to a pension credit (see section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (c. 30)) dies before the Fund trustees have discharged their liability in respect of that credit.

• (2) Where this rule applies, the Fund trustees may pay a lump sum to the individual's personal representatives of any amount they think fit (up to a maximum of 25% of the pension credit).

Part Q — Dual mandate MSPs

Dual mandate MSPs

94

A “dual mandate MSP” is a serving MSP whose salary is reduced under section 82 of the Scotland Act 1998 (c. 46).

Pension reduction for dual mandate MSPs

95

The following adjustments are to be made when doing the calculation set out in rule 38(1) in respect of any individual who was a dual mandate MSP during any period in which the individual was an MSP member—

• (a) any reduction in final salary by virtue of section 82 of the Scotland Act 1998 (c. 46) is to be ignored,

• (b) when determining A, any period of reckonable service as an MSP in respect of which the individual—

• (i) made lower rate scheme member contributions, and

• (ii) was a dual mandate MSP,

is to be reduced by the same proportion as the MSP's salary was reduced during that period by virtue of section 82 of the Scotland Act 1998 (c. 46), and

• (c) when determining B, any period of reckonable service as an MSP in respect of which the individual—

• (i) made higher rate scheme member contributions, and

• (ii) was a dual mandate MSP,

is to be reduced by the same proportion as the MSP's salary was reduced during that period by virtue of section 82 of the Scotland Act 1998 (c. 46).

Part R — Taxes

2004 Act terms

96

In this Part—

• “the 2004 Act” means the Finance Act 2004 (c. 12),

• “event” means a benefit crystallisation event listed in the table in section 216 of the 2004 Act,

• “lifetime allowance charge” has the meaning given by section 214 of the 2004 Act,

• “scheme administrator” means the scheme administrator of the scheme for the purposes of section 217 of the 2004 Act (see sections 270 to 274 of the 2004 Act), and

• “unauthorised charge” means an unauthorised payments charge (see section 208 of the 2004 Act) or an unauthorised payments surcharge (see section 210 of the 2004 Act).

Payment of lifetime allowance charge by scheme administrator

97

• (1) The scheme administrator may pay a lifetime allowance charge for which the administrator is liable under section 217 of the 2004 Act.

• (2) But such a payment may be made only if the individual with whom the scheme administrator is jointly and severally liable—

• (a) requests the scheme administrator to make the payment on or before the date of the event in respect of which the lifetime allowance charge arises, and

• (b) pays the amount concerned to the scheme administrator on or before that date.

Payment of lifetime allowance charge from Pension Fund

98

• (1) If rule 97(2) prevents the scheme administrator from paying a lifetime allowance charge for which the administrator is liable under section 217 of the 2004 Act, the charge is to be paid from the Pension Fund.

• (2) Following such a payment, a reduction is to be made—

• (a) where liability arose in respect of event 8, to the amount or value of the transferred sums or assets, or

• (b) where liability arose in respect of any other event, to the amount or value of the benefits payable from the Fund to or in respect of the individual with whom the scheme administrator was jointly and severally liable.

• (3) A reduction under rule 98(2) must, in the scheme actuary's opinion, fully reflect the corresponding amount paid under rule 97.

Deductions for tax arising on lump sum payments

99

Any tax due under section 205 of the 2004 Act in respect of a short service lump sum (see rule 72) is to be deducted from that sum before it is paid.

Reduction of benefits which would otherwise attract unauthorised charge

100

Where an unauthorised charge would (but for this rule) arise in respect of any payment from the Pension Fund, that payment must be—

• (a) reduced to an amount just below the amount which would otherwise cause that charge to arise, or

• (b) where no such reduction is possible, withheld in accordance with rule 101.

Prohibition on payments which would give rise to liability for certain taxes

101

Nothing in the scheme authorises any payment from the Pension Fund if making that payment would give rise to liability for a scheme sanction charge (see section 239 of the 2004 Act) or a de-registration charge (see section 242 of the 2004 Act). Any payment which would, but for this rule, be made under the scheme is not to be made.

Part S — Accounts, audit and actuarial reports

Accounts and audit

102

• (1) The Fund trustees must keep proper accounts (and must, in particular, prepare annual statements of account for each financial year).

• (2) The Fund trustees must, within 7 months of the end of each financial year—

• (a) arrange for the audit of the annual accounts for that year, and

• (b) lay a copy of the annual accounts and audit report before the Scottish Parliament.

Actuarial reports

103

• (1) The “scheme actuary” is the person appointed by the Fund trustees in accordance with section 47(1)(b) of the Pensions Act 1995 (c. 26).

• (2) The Fund trustees may obtain an actuarial report on the scheme at any time they think fit (and must do so at intervals of no more than 3 years).

• (3) An actuarial report is to include—

• (a) a report on the general financial position of the Pension Fund,

• (b) an actuarial valuation of the Pension Fund's assets and liabilities, and

• (c) the scheme actuary's recommended rate for future contributions under rule 32 (expressed as a percentage of participating member salary payments).

• (4) The Fund trustees must lay a copy of each actuarial report before the Scottish Parliament within 3 months of obtaining it.

Part T — Miscellaneous

Dispute resolution procedure

104

Section 50 of the Pensions Act 1995 (c. 26) requires the Fund trustees to make and implement arrangements for the resolution of disputes.

Guaranteed minimum pension

105

• (1) Any individual who is entitled to a guaranteed minimum pension under the scheme in respect of any transfer-in sum is, on attaining pensionable age, to be paid a pension for the rest of the individual's life at a weekly rate of not less that his or her guaranteed minimum (if any) under sections 14 to 16 of the Pension Schemes Act 1993 (c. 48).

• “pensionable age” is to be construed in accordance with paragraph (a) of the definition of that term in section 181 of the Pension Schemes Act 1993 (c. 48).

• (2) The commencement of payment of a pension payable under this rule is to be postponed if the individual concerned is an MSP or the holder of a pensionable office on the day on which it becomes payable.

• (3) Such a postponement is to last—

• (a) until the earlier of—

• (i) the day on which the individual is neither an MSP nor the holder of a pensionable office, or

• (ii) the day falling 5 years after the first day of the postponement, or

• (b) for such longer period as the individual may consent to.

Restriction on assignability etc.

106

Despite paragraphs (a) to (c) of section 91(5) of the Pensions Act 1995 (c. 26), assignations, surrenders and commutations of the type described in those paragraphs are not permitted in relation to scheme benefits (except insofar as permitted explicitly by any scheme rule).

Payments due in respect of deceased individuals

107

• (1) This rule applies where a deceased's scheme entitlement is no more than the amount for the time being applicable in relation to the enactments mentioned in section 6 of the Administration of Estates (Small Payments) Act 1965 (c. 32). A deceased's “scheme entitlement” is the total of—

• (a) any amounts due to the deceased under the scheme at the time of death, and

• (b) any amounts payable to the deceased's personal representatives under the scheme (ignoring any amounts due by way of interest accruing after death).

• (2) Where this rule applies, the Fund trustees need not require confirmation or other proof of title before paying amounts due to—

• (a) the deceased's personal representatives, or

• (b) any person appearing to the Fund trustees to be beneficially entitled to the deceased's estate.

• (3) The recipient of any amount so paid is to be liable to account for that amount (and the Fund trustees are to be relieved from any such liability).

Formal communications

108

• (1) A “formal communication” means any—

• (a) notice,

• (b) application,

• (c) request, or

• (d) certification,

made or given under or for the purposes of this Act.

• (2) A formal communication must be in writing.

• (3) A formal communication is made or given to a person if it is—

• (a) delivered, or sent by post, to—

• (i) where the formal communication is being delivered to the Fund trustees or an MSP, the Scottish Parliament,

• (ii) where the formal communication is being sent to the holder of a pensionable office (who is not an MSP), the office-holder's principal office, or

• (iii) in any other case, the usual or last known abode of the person to whom the formal communication is delivered or sent, or

• (b) sent in some other way (including by electronic means) which the sender reasonably considers likely to cause it to be delivered on the same or next day.

• (4) A formal communication which is sent by electronic means is to be treated as being in writing if it is received in a form which is legible and capable of being used for subsequent reference.

• (5) A formal communication sent in the way described in rule 108(3)(b) is, unless the contrary is proved, to be treated as having been delivered on the day after it is sent (or, if that day falls on a weekend or a bank holiday, on the next weekday which is not a bank holiday).

Part U — Key terms

Interpretation

109

• (1) In the scheme—

• “deferred pensioner” means an individual (other than a participating member or a scheme pensioner whose pension payments are suspended under rule 41) who is not entitled to receive a scheme pension by virtue only of being—aged under 65, oran MSP, or the holder of a pensionable office, who is aged 65 or over,

• “doctor” means a fully registered person within the meaning of the Medical Act 1983 (c. 54),

• “elected” means returned as an MSP by virtue of the Scotland Act 1998 (c. 46) (and includes being appointed as an MSP by virtue of section 10 of that Act),

• “final salary”, in relation to an MSP or the holder of a pensionable office, means—the MSP salary or, as the case may be, office-holder salary paid to the individual during the last 12 months (whether continuous or not) during which the individual was an MSP member or, as the case may be, office-holder member, orif the individual made scheme member contributions from MSP salary or, as the case may be, office-holder salary for fewer than 12 months, the amount determined by doing the following calculation—$A×365B$where—“A” is the MSP salary or, as the case may be, office-holder salary paid to the individual during the period for which the individual was an MSP member or, as the case may be, office-holder member, and“B” is the number of days for which the individual was an MSP member or, as the case may be, office-holder member,

• “financial year” means a year ending with 31 March,

• “guaranteed minimum pension” has the meaning given by section 8 of the Pension Schemes Act 1993 (c. 48),

• “higher rate scheme member contribution” is a scheme member contribution of 11% of salary,

• “ill-health pension” means—a serious ill-health pension,an ordinary ill-health pension, ora deferred pensioner's ill-health pension,

• “lower rate scheme member contribution” is a scheme member contribution of 6% of salary,

• “MSP” means a member of the Scottish Parliament (but also includes an individual to whom an MSP salary is payable after dissolution by virtue of section 83(4) of the Scotland Act 1998 (c. 46)),

• “ordinary general election day” means a day on which an ordinary general election is scheduled to be held under section 2(2) of the Scotland Act 1998 (c. 46),

• “participating member” means an individual who is an MSP member or an office-holder member (or both an MSP member and an office-holder member),

• “rule” means a rule set out in the scheme,

• “salary” means—in relation to an MSP, the salary payable by virtue of section 81(1) of the Scotland Act 1998 (c. 46) (including any salary payable because of section 83(4) of that Act), andin relation to an office-holder, the salary payable for holding office,and “MSP salary” and “office-holder salary” are to be construed accordingly,

• “salary payment” means—in relation to a participating member who is an MSP member only, a payment in respect of the member's MSP salary,in relation to a participating member who is an office-holder member only, a payment in respect of the member's office-holder salary,in relation to a participating member who is both an MSP member and an office-holder member, a payment in respect of the member's MSP salary or office-holder salary (or both salaries),

• “scheme member” means an individual who is—a participating member,a deferred pensioner, ora scheme pensioner,

• “scheme pensioner” means an individual—entitled to receive a scheme pension, orwho would be so entitled but for rule 41(1),

• “SPCB” means the Scottish Parliamentary Corporate Body,

• “work” includes work—under a contract of employment, service or apprenticeship,as the holder of an office, oras a self-employed person.

• (2) References in the scheme to the amount of an individual's scheme pension are references to the amount of scheme pension payable to the individual under rule 37(2) and, unless the contrary intention appears, are to be read as including any reduction or enhancement to that amount attributable to—

• (a) rules 43(2), 44(2), 46(4), 50 or 95, or

• (b) section 31 of the Welfare Reform and Pensions Act 1999 (c. 30) or any other enactment,

and references to the annual amount of an individual's scheme pension are to be construed accordingly.

• (3) References in the scheme to an amount of scheme member contributions “with interest” are references an amount equal to—

• (a) the amount of those contributions, and

• (b) compound interest of 4% each year accruing from the date each contribution was paid (calculated with annual rests).

Index

110

The words and expressions listed in the left column of the following table are defined or otherwise explained for the purposes of the scheme by the rules indicated in the right column.

SCHEDULE 2

MSP resettlement grant

1

• (1) The SPCB must pay a grant (an “MSP resettlement grant”) to each individual who—

• (a) is an MSP immediately before a dissolution of the Scottish Parliament, but

• (b) is not returned as an MSP at the next general election held under Part 1 of the Scotland Act 1998 (c. 46).

• (2) An MSP resettlement grant is not payable to the personal representatives of an individual who dies before the election concerned.

MSP ill-health retirement grant

2

• (1) The SPCB must pay a grant (an “MSP ill-health retirement grant”) to an ex-MSP who applies for such a grant if—

• (a) the applicant resigned as an MSP at any time other than immediately before a dissolution of the Scottish Parliament, and

• (b) the SPCB is satisfied that the resignation was a direct consequence of a health condition which prevented the applicant from performing adequately his or her duties as an MSP.

• (2) The SPCB may, for the purposes of so satisfying itself, require—

• (a) an applicant to provide evidence from a doctor of the applicant's state of health,

• (b) an examination of the applicant by a doctor nominated by the SPCB (with examination costs borne as the SPCB may determine).

Amount of MSP grants

3

• (1) The amount of an MSP resettlement grant or MSP ill-health retirement grant is to be equal to the appropriate percentage of the annual MSP salary payable in accordance with section 81(1) of the Scotland Act 1998 (c. 46) when the individual stopped being an MSP.

• (2) When determining “A”, any period during which the individual to whom the grant is payable was a dual mandate MSP is to be reduced by the same proportion as the individual's MSP salary was reduced during that period by virtue of section 82 of the Scotland Act 1998 (c. 46)).

• (3) Sub-paragraph (2) does not apply in relation to any period—

• (a) during which an individual who is an MSP on the day on which this paragraph comes into force is an MSP, and

• (b) which occurs before the first general election held under Part 1 of the Scotland Act 1998 (c. 46) after that day.

Office-holder resettlement grant

4

• (1) The SPCB must pay a grant (an “office-holder resettlement grant”) to an individual who—

• (a) stops being the holder of a pensionable office, and

• (b) is not appointed as the holder of a pensionable office during the following 90 days.

• (2) The amount of an office-holder resettlement grant is to be equal to the appropriate percentage of the annual office-holder salary payable to the individual when the individual left office.

• “appropriate percentage” means—in the case of the Presiding Officer or First Minister, the higher of—50%, andX%, “X” being equal to—$A12×100$where “A” is the number of complete continuous years for which the individual has been Presiding Officer or First Minister (up to a maximum of 12),

• (b) in any other case, 25%.

• (3) An office-holder resettlement grant is not payable—

• (a) to the personal representatives of an individual who—

• (i) stops holding a pensionable office because he or she dies, or

• (ii) dies during the period of 90 days after the individual stops holding a pensionable office, or

• (b) to any individual who, on the day this paragraph comes into force, is or has been—

• (i) the Presiding Officer, or

• (ii) the First Minister.

Key terms

5

The following terms have the same meaning in this schedule as they have in the Scottish Parliamentary Pension Scheme (see schedule 1)—

• “doctor”

• “dual mandate MSP”

• “holder of a pensionable office”

• “MSP”

• “MSP salary”

• “office-holder salary”

• “SPCB”

SCHEDULE 3

Introductory

1

• (1) In this schedule—

• “new rules day” means the first day of the month which follows the month which includes the day falling 6 months after the Bill for this Act receives Royal Assent,

• “new scheme rules” means the rules set out in schedule 1 which govern the scheme from the new rules day,

• “1999 scheme rules” means the provisions of the 1999 pensions order which governed the scheme before the new rules day.

• (2) Other words and expressions used in this schedule have the same meaning as they have in the new scheme rules (unless the contrary intention appears).

Continuation of scheme and transfer of Pension Fund

2

Despite article A3 of the 1999 pensions order—

• (a) that order continues to have effect in so far as needed to give effect to section 1(1) of this Act, and

• (b) article B1 of the 1999 scheme rules continue to have effect in so far as it establishes the Pension Fund.

Scheme participation

3

An individual is not entitled to participate in the scheme as an office-holder member if, on the new rules day, the individual is or has been—

• (a) the Presiding Officer, or

• (b) the First Minister.

Scheme member contributions

4

• (1) An “existing participating member” is an individual who—

• (a) participates in the scheme in accordance with the 1999 scheme rules when this paragraph comes into force, and

• (b) would become a participating member in accordance with the new scheme rules if still participating in the scheme on the new rules day.

• (2) Despite new scheme rule 28, an existing participating member is to continue to make lower rate scheme member contributions after the new rules day if he or she notifies the SPCB that he or she wishes to do so.

• (3) Such a notice is valid only if received at least 14 days before the new rules day.

• (4) The SPCB must inform the Fund trustees of every valid notice given to it under this paragraph.

• (5) This paragraph does not prevent the existing participating member from subsequently changing the amount of scheme member contributions in accordance with new scheme rule 29.

Contributions from SPCB

5

The determination under article D3(2) of the 1999 scheme rules which has effect immediately before the new rules day is to have effect after that day as if made under new scheme rule 32(2).

Reckonable service as an MSP

6

• (1) This paragraph applies to an individual who—

• (a) was a “participating member” under the 1999 scheme rules, but

• (b) is not, immediately before the new rules day, a “pensioner member” under the 1999 scheme rules.

• (2) After the new rules day—

• (a) the “aggregate period of reckonable service as a participating member” which an individual to whom this paragraph applies has obtained under the 1999 scheme rules is to be treated as a period of reckonable service as an MSP for the purposes of the new scheme rules, and

• (b) the individual concerned is to be treated as having made lower rate scheme member contributions during that period.

• (3) Where an individual to whom this paragraph applies—

• (a) is purchasing added years by periodical contributions in accordance with Schedule 5 to the 1999 pensions order immediately before the new rules day, or

• (b) has had an application to purchase added years accepted by the SPCB in accordance with Schedule 5 to the 1999 pensions order but has not yet made the lump sum payment,

no part of the added years concerned are to be treated as forming part of the individual's “aggregate period of reckonable service as a participating member” for the purposes of this paragraph.

Reckonable service as an office-holder

7

• (1) This paragraph applies to an individual who—

• (a) was a “participating office holder” under the 1999 scheme rules, but

• (b) is not, immediately before the new rules day, a “pensioner member” under the 1999 scheme rules.

• (2) After the new rules day—

• (a) the “aggregate period of reckonable service as a participating office holder” which an individual to whom this paragraph applies has obtained under the 1999 scheme rules is to be treated as a period of reckonable service as an office-holder under the new scheme rules, and

• (b) the individual concerned is, for the purposes of new scheme rule 39, to be treated as having obtained a single office-holder pension entitlement in respect of that “aggregate period of reckonable service as a participating office holder” to be calculated as follows—

$$aggregateperiodofreckonableserviceasaparticipatingoffice-holder×highestoffice-holdersalary50$where “highest office-holder salary” means—the highest office-holder salary paid to the individual during any period of 12 months (whether continuous or not and whether before or spanning the new rules day) for which the individual participates in the scheme (as a “participating office holder” under the 1999 scheme rules or as an “office-holder member” under the new scheme rules) in respect of a pensionable office to which he or she was appointed before the new rules day, orwhere the individual so participates for fewer than 12 months, the amount determined by doing the following calculation—$A×365B$where—“A” is the office-holder salary paid to the individual during the period in which he or she so participates, and“B” is the number of days for which the individual so participates.$

Total reckonable service

8

The total reckonable service of an individual who participated in the scheme before the new rules day (see new scheme rule 35) includes the “actual period of reckonable service as a participant” which the individual obtained under the 1999 scheme rules.

Special provision for participants reaching age of 75 before the new rules day

9

• (1) This paragraph applies to an individual who—

• (a) is participating in the scheme in accordance with the 1999 scheme rules, and

• (b) is aged under 75 when this paragraph comes into force but will reach the age of 75 before the new rules day.

• (2) An individual to whom this paragraph applies may, before reaching the age of 75, give notice to the SPCB that he or she desires to commute into a lump sum such part of his or her pension as is specified in the notice.

• (3) An individual who gives such a notice is to be treated for the purposes of Part G of the 1999 scheme rules as having given an equivalent notice under article G1(1) (and Part G is to apply accordingly).

• (4) Despite article F1(a) and (b) and article F2 of the 1999 scheme rules—

• (a) the fact that an individual who gives such a notice is—

• (i) an MSP, or

• (ii) the holder of a qualifying office (within the meaning of article C2(3) of the 1999 scheme rules),

does not prevent the individual from being entitled to receive a pension, from the day before the individual's 75th birthday, in accordance with article F1 or F2 of the 1999 scheme rules, but

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

Payment of pensions due on new rules day etc.

10

Despite article A3 of the 1999 pensions order, the 1999 scheme rules are to continue to have effect (instead of the new scheme rules) in relation to any individual who, immediately before the new rules day, is entitled to receive a pension in accordance with the 1999 scheme rules. But the SPCB's functions, rights, liabilities and obligations under the 1999 scheme rules which relate to such individuals are transferred to and vest in the Fund trustees.

Entitlement of partners and children after new rules day

11

Despite the preceding paragraph, the new scheme rules are to govern an individual's entitlement to receive scheme benefits by virtue of being the partner or child of an individual who—

• (a) is entitled to receive a pension on the new rules day, or

• (b) died before the new rules day.

Early retirement

12

• (1) An individual falls within this paragraph if the individual—

• (a) participated in the scheme before the new rules day,

• (b) accumulates at least 15 years relevant service before the cut-off date, being service which is the total of—

• (i) any period of service as an MSP during which the individual participated in the scheme (under the 1999 scheme rules or the new scheme rules), and

• (ii) any period of service as a member of the European Parliament or the House of Commons that is not concurrent with any such period of service as an MSP, and

• (c) where the individual is under 55, has a “protected pension age” of under 55 in relation to the scheme for the purposes of paragraph 22(8) of Schedule 36 to the Finance Act 2004 (c. 12).

• (2) Rule 46 applies to an individual falling within this paragraph with the following modifications—

• (a) in rule 46(1)(a), for “55” substitute “50”,

• (b) the proportion of the amount of annual scheme pension attributable to reckonable service accumulated before the cut-off date is to be reduced under rule 46(4) by no more than the appropriate percentage specified in the table set out in schedule 4 to the 1999 pensions order.

• (3) In this paragraph “cut-off date” means the date of the first general election held under Part 1 of the Scotland Act 1998 (c. 46) after the new rules day.

Partner’s and children’s pensions

13

• (1) An individual falls within this paragraph if the individual—

• (a) participated in the scheme before the new rules day,

• (b) accumulates at least 15 years relevant service before the date of the first general election held under Part 1 of the Scotland Act 1998 (c. 46) after the new rules day, being service which is the total of—

• (i) any period of service as an MSP during which the individual participated in the scheme (under the 1999 scheme rules or the new scheme rules), and

• (ii) any period of service as a member of the European Parliament or the House of Commons that is not concurrent with any such period of service as an MSP, and

• (c) takes early retirement after the new rules day.

• (2) The reduction made under new scheme rule 46(4) to the scheme pension of an individual falling within this paragraph is to be ignored when calculating the individual's “scheme pension entitlement” for the purposes of new scheme rule 56.

5 year guarantee

14

• (1) The Fund trustees may, instead of continuing to pay a deceased scheme pensioner's scheme pension under new scheme rule 71, pay to the deceased's personal representatives an amount equal to the lump sum which would have been payable under article M4 of the 1999 scheme rules if those had continued in force.

• (2) But such a lump sum may be paid only if—

• (a) the deceased participated in the scheme before the new rules day, and

• (b) the payment would, by virtue of paragraph 36 of Schedule 36 to the Finance Act 2004 (c. 12), be permitted by the lump sum death benefit rule (see section 168 of that Act).

Deferred pensioner lump sums

15

• (1) This paragraph applies where a deferred pensioner lump sum is payable under new scheme rule 67(1) in respect of a deceased individual who participated in the scheme under the 1999 scheme rules.

• (2) Where this paragraph applies, any sums deducted from the deceased's salary in accordance with Part D of the 1999 scheme rules are to be treated for the purposes of new scheme rule 67(2) as being scheme member contributions made by the deceased.

Short service refunds

16

• (1) Condition 3 of new scheme rule 72(1) does not apply in relation to an individual who participated in the scheme before the new rules day (but such an individual is entitled to a short service refund only if he or she has fewer than 2 years total reckonable service).

• (2) Any sums deducted from the salary of such an individual in accordance with Part D of the 1999 scheme rules are to be treated for the purposes of new scheme rule 72(2) as being scheme member contributions made by the individual.

Transfers

17

• (1) When applying rule 76 in relation to an individual who participated in the scheme before the new rules day, amount A is to include—

• (a) any contributions made in respect of the individual under article D1 of the 1999 scheme rules,

• (b) any sums received in respect of the individual under article P6 of the 1999 scheme rules, and

• (c) any payments made by the individual under Schedule 5 to the 1999 scheme rules.

• (2) Condition 2 in new scheme rule 81 does not apply during the 12 months following the new rules day in relation to an individual who is a participating member on the new rules day.

Added years

18

• (1) This paragraph applies where an individual—

• (a) is purchasing added years by periodical contributions in accordance with Schedule 5 to the 1999 scheme rules immediately before the new rules day, or

• (b) has had an application to purchase added years accepted by the SPCB in accordance with Schedule 5 to the 1999 scheme rules but has not yet made the lump sum payment.

• (2) Where this paragraph applies—

• (a) Part Q of (and Schedule 5 to) the 1999 scheme rules are, despite article A3 of the 1999 pensions order, to continue to have effect , subject to the modifications in sub-paragraph (2A), in relation to those purchases,

• (b) the individual's reckonable service as an MSP is to be increased by any added years in respect of which the periodical contributions (including any paid before the new rules day) or lump sum has been paid, and

• (c) that increased period of reckonable service is, for the purposes of new scheme rule 38(1), to be treated as a period during which lower rate scheme member contributions were made.

• (2A)

• (a) in paragraph 3 of Schedule 5 to the 1999 scheme rules for “irrevocable on and form the date when the Parliamentary corporation accepts it” substitute “revocable by the member giving notice in writing to the Fund trustees”, and

• (b) after paragraph 3, insert—

(3A) Where a participating member buying added years by periodical contributions revokes the application before paying the last instalment— (a) no more instalments are payable; and (b) the Fund trustees must calculate the number of added years in respect of which the periodical contributions have been paid as follows— $A×BC$ where— “A” is the number of added years the individual applied to buy; “B” is the period (in days) in respect of which instalments have been paid; and “C” is the period (in days) for which instalments would have been paid in accordance with paragraph 4(a) had the individual not revoked the application.

• (3) The reference in new scheme rule 89(3)(c)(ii) to scheme member contributions is, in relation to any tax year including or after the new rules day, to include any contributions made during that year under paragraph 4 of Schedule 6 to the 1999 scheme rules.

AVC Scheme

19

• (1) Despite article A3 of the 1999 pensions order, the scheme for making additional voluntary contributions set out in Part R of (and Schedule 6 to) the 1999 scheme rules is to continue to have effect with the following modifications—

• (a) all the SPCB's functions, rights, liabilities and obligations in relation to the AVC scheme are transferred to and vest in the Fund trustees,

• (b) no individual may become a contributor to the AVC scheme after the new rules day (and sub-paragraphs (1) and (3) of paragraph 3 of Schedule 6 is accordingly to cease to have effect),

• (c) in paragraph 3(2) of Schedule 6, the words from “but” to “participant” are to cease to have effect,

• (d) no transfers may be made to the AVC scheme after the new rules day (and paragraph 4 (4) of Schedule 6 is accordingly to cease to have effect),

• (e) in paragraph 9 of Schedule 6—

• (i) in sub-paragraph (1)(a), for the words from “an” to “1993” substitute “another pension scheme subject to that transfer being a recognised transfer for the purposes of section 169 of the Finance Act 2004 (c. 12)”, and

• (ii) in sub-paragraph (1)(c), for “2 years” substitute “3 months”,

• (f) paragraphs 10 and 11 of Schedule 6 are to cease to have effect.

• (2) New scheme rule 3 does not apply in relation to benefits payable and AVC contributions received under the AVC scheme.

Guaranteed minimum pension

20

The reference in new scheme rule 105(1) to a “transfer-in sum” includes reference to any sum received under article P6 of the 1999 scheme rules.

Presiding Officer and First Minister pension scheme

21

• (1) Despite article A3 of the 1999 pensions order, Part S of the 1999 order is to continue to have effect in relation to—

• (a) any individual who is, or who has been, the First Minister or the Presiding Officer on or before the new rules day, and

• (b) the rights of any person to receive benefits under Part S of the 1999 order in respect of such an individual.

• (2) The SPCB is to continue as the manager of the scheme established by Part S of the 1999 order and, in particular, is to determine the extent of any benefits conferred on an individual in respect of that scheme in accordance with paragraph 2(2) of Schedule 5 to the Welfare Reform and Pensions Act 1999 (c. 30).

• (3) When calculating an individual's entitlement to benefits under article S2 of the 1999 scheme rules, any reduction of the deceased's pension by way of a pension debit arising under the Welfare Reform and Pensions Act 1999 (c. 30) is to be ignored.

General saving

22

Despite article A3 of the 1999 pensions order, the 1999 scheme rules are to continue to have effect in so far as they are needed to give effect to any provisions saved by this schedule.

Disapplication of scheme modifications

23

The modifications set out in regulations made under paragraph 3 of Schedule 36 to the Finance Act 2004 (c. 12) no longer apply in relation to the scheme

Grants payable on leaving office

The Pension Fund

Payments to and from Fund

Fund trustees

Functions

Number of trustees

Eligibility

Appointment of Fund trustees

Remuneration, allowances and expenses

Resignation

Removal

Change of status

Member-nominated trustees

Procedure

Quorum

Staff and advisers

Fund management

Indemnity insurance

Delegation

Validity of acts

MSP members

Office-holder members

MSP opt-out

Office-holder opt-out

MSP opt-in

Office-holder opt-in

Scheme member contributions

Amount of scheme member contribution

Procedure for changing scheme member contribution rate

Relief from liability to make scheme member contributions

Contributions when salary not drawn

Contributions from SPCB

Reckonable service as an MSP

Reckonable service as an office-holder

Total reckonable service

Measuring reckonable service

Scheme pension

Amount of MSP pension

Amount of office-holder pension

Duration of scheme pension

Suspension of scheme pension

Right to commute pension into a lump sum

Payment of retirement lump sum and corresponding reduction in pension

Special rule for commutation by individual approaching the age of 75

Commuting trivial amounts

Early retirement

Serious ill-health pension

Ordinary ill-health pension

Deferred pensioner's ill-health pension

Amount of serious ill-health pension

Amount of ordinary ill-health pension

Amount of deferred pensioner's ill-health pension

Review of ill-health pension entitlements

Medical examinations

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

Meaning of “scheme pension entitlement”

Partner

Partner's pension

Enhancement of initial partner's pension

Duration of partner's pension

Partner's trivial lump sum

Children's pensions

Eligible children

Payment of children's pension

Death in service lump sum

Nominations for death in service lump sum

Deferred pensioner lump sum

Initial pension period

Guaranteed pension for surviving partner

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

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

Payment of short service refunds

Extinction of scheme benefits

Statement of entitlement

Transfers to other pension schemes

Enhancement of transferable sum

Reduction of transferable sum

Transfer payment

Time limits

Extinction of scheme benefits

Transfer in

Effect of transfer in

Limitation on transfers in

Added years

Buying added years by instalments

Revocation of accepted application

85A

• (1) This rule applies—

• (a) where an MSP member buying added years by monthly instalments revokes the application before paying the last instalment; and

• (b) where an office-holder member (who is not an MSP) buying added years by monthly instalments revokes the application before paying the last instalment.

• (2) Where this rule applies no more instalments are payable and the individual’s reckonable service as an MSP or, as the case may be, office-holder is increased by a number of added years calculated as follows—

$A×BC$

where—

“A” is the number of added years the individual applied to buy,

“B” is the period (in days) in respect of which instalments have been paid, and

“C” is the period (in days) for which instalments would have been paid had the individual remained in the scheme continuously and not revoked the application.

Interruption of service

Resumption of service as MSP member

Buying added years by lump sum

Limitations on buying added years

Multiple applications

Pension credit members

Pension debit members

Death of ex-partner before discharge of pension credit liability

Dual mandate MSPs

Pension reduction for dual mandate MSPs

2004 Act terms

Payment of lifetime allowance charge by scheme administrator

Payment of lifetime allowance charge from Pension Fund

Deductions for tax arising on lump sum payments

Reduction of benefits which would otherwise attract unauthorised charge

Prohibition on payments which would give rise to liability for certain taxes

Accounts and audit

Actuarial reports

Dispute resolution procedure

Guaranteed minimum pension

Restriction on assignability etc.

Payments due in respect of deceased individuals

Formal communications

Interpretation

Index

MSP resettlement grant

MSP ill-health retirement grant

Amount of MSP grants

Office-holder resettlement grant

Key terms

Introductory

Continuation of scheme and transfer of Pension Fund

Scheme participation

Scheme member contributions

Contributions from SPCB

Reckonable service as an MSP

Reckonable service as an office-holder

Total reckonable service

Special provision for participants reaching age of 75 before the new rules day

Payment of pensions due on new rules day etc.

Entitlement of partners and children after new rules day

Early retirement

Partner's and children's pensions

5 year guarantee

Deferred pensioner lump sums

Short service refunds

Transfers

Added years

AVC Scheme

Guaranteed minimum pension

Presiding Officer and First Minister pension scheme

General saving

Disapplication of scheme modifications

Editorial notes

[^c19631461]: S. 1 wholly in force at 1.9.2009; s. 1(1)(3) in force at Royal Assent for certain purposes and s. 1(1)(3) in force otherwise at 1.9.2009 and s. 1(2) in force at 1.9.2009 see s. 5

[^key-d064ec0a130aedb523ae62ec32aefc17]: Sch. 1 rule 85A and cross-heading inserted (11.2.2011) by The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 4

[^key-6380ff0315f6522b9512ebaf56f6df47]: Sch. 1 rule 13 omitted (11.2.2011) by virtue of The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 1

[^key-d467c4ac214ba5762d979b711f202c90]: Words in sch. 1 rule 49 substituted (11.2.2011) by The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 2

[^key-9c6913a5ca3d819e5b7f13862d9e5d80]: Words in sch. 1 rule 85(2) substituted (11.2.2011) by The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 3

[^key-d3b667dd3624ba8b38c301b4834656f7]: Words in sch. 3 para. 18(2)(a) inserted (11.2.2011) by The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 5(a)

[^key-d99c7290e943ba6d62d0ef80fabd9f32]: Sch. 3 para. 18(2A) inserted (11.2.2011) by The Scottish Parliamentary Pensions Act 2009 (Modifications to the Scottish Parliamentary Pensions Scheme) Resolution 2011 (S.S.I. 2011/244), Annex para. 5(b)

[^key-e47d4bf007e880127813ecee59fe5e26]: S. 3(4)-(7) substituted for s. 3(4) (6.4.2011) by The Interpretation and Legislative Reform (Scotland) Act 2010 (Consequential Provisions) Order 2011 (S.S.I. 2011/196), arts. 1, 3

[^key-9a61ac0e25c6f067878d9bff6384320d]: Words in sch. 1 para. 75 substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 43(2) (with s. 87)

[^key-c0582b3a44871020ef6e506ab1fe7efc]: Words in sch. 1 para. 91(2)(g) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 43(3) (with s. 87)

[^key-2a47565563c06fef766d86ecf2a7f622]: Word in sch. 1 rule 38(2) substituted (20.3.2026) by The Scottish Elections (Representation and Reform) Act 2025 (Consequential Provision) Regulations 2026 (S.S.I. 2026/151), regs. 1, 2(2)(a)

[^key-ddba19a61468e3d8c6fd90ae0f699363]: Word in sch. 1 rule 95 substituted (20.3.2026) by The Scottish Elections (Representation and Reform) Act 2025 (Consequential Provision) Regulations 2026 (S.S.I. 2026/151), regs. 1, 2(2)(b)

[^key-e69f04b84db8f5715bf24adddf43c185]: Word in sch. 2 para. 3(2) substituted (20.3.2026) by The Scottish Elections (Representation and Reform) Act 2025 (Consequential Provision) Regulations 2026 (S.S.I. 2026/151), regs. 1, 2(3)