The National Health Service Superannuation Scheme (Scotland) Amendment Regulations 2008

(G14) (1) A member who has pensionable service on or after 1st April 2008 may, by giving notice in writing to the Scottish Ministers, nominate a person (“the nominated partner”) to receive a surviving nominated partner pension on his death and such a nomination shall be effective from the date the Scottish Ministers accept it. (2) The Scottish Ministers must accept a member’s nomination if– (a) the member and the nominated partner have jointly made and signed a declaration in the form required by the Scottish Ministers that remains effective at the member’s death; and (b) the nominated partner satisfies the Scottish Ministers that for a continuous period of at least two years ending with the member’s death– (i) the member and the nominated partner were living together as if they were husband and wife or civil partners; (ii) the member and the nominated partner were not prevented from marrying or entering into a civil partnership; (iii) the member and the nominated partner were financially interdependent or the nominated partner was financially dependent on the member; and (iv) neither the member nor the nominated partner was living with a third person as if they were husband and wife or as if they were civil partners. (3) A declaration under paragraph (2)(a) ceases to have effect if– (a) it is revoked by the member or the nominated partner by a signed notice in writing given to the Scottish Ministers in the required form (if any); (b) the member makes a later declaration under paragraph (2)(a); or (c) the member or the nominated partner marries or enters into a civil partnership. (4) If the Scottish Ministers have accepted a member’s nomination and the member subsequently dies before his nominated partner in the circumstances described in any of regulations G2 to G6, the nominated partner is entitled to a pension as described in paragraphs (6) to (10) of this regulation. (5) Subject to paragraph (6), regulations G1 to G6 apply to the calculation and payment of pensions for nominated partners in the same manner as they apply to pensions for widows and regulation G6(1) shall be read as if, for the words “where the member and his wife were not married to each other” it said “where a nomination for a surviving partner pension was not effective”. (6) When calculating a nominated partner’s pension, any part of the member’s benefit that is based on pensionable service before 6th April 1988 will, subject to paragraphs (7) and (8), be disregarded. (7) If regulation G2(3) or (3C) or regulation G4(2) or (2A) apply to the calculation of the nominated partner’s pension on a member’s death in pensionable employment or with a preserved pension– (a) the whole of the member’s pensionable service will be taken into account when calculating whether and (if so) to what extent there would have been an increase, by virtue of regulation E2(3) or E2A(4) in the pensionable service on which the member’s pension under regulation E2 or E2A would have been based; and (b) the whole period (if any) by which the member’s pension would have been increased will be treated as pensionable service after 5th April 1988. (8) If regulation G3(2) applies to the calculation of the nominated partner’s pension, so that the nominated partner’s pension is equal to the member’s pension for a limited period, the nominated partner’s pension for that limited period will be equal to the whole of the member’s pension (including any part of the member’s pension that is based on pensionable service before 6th April 1988). (9) Any reference in these Regulations to regulations G1 to G6 means, in relation to benefits in respect of a member who has nominated a partner, those regulations as applicable to the member’s nominated partner (if any). (G15) (1) A member may, by giving notice in writing to the Scottish Ministers before leaving pensionable employment, apply for his nominated partner to receive a dependent surviving nominated partner’s pension on the member’s death. (2) The Scottish Ministers must accept a member’s application only if they are satisfied that the member’s nominated partner is– (a) permanently incapable of earning a living because of physical or mental infirmity; and (b) wholly or mainly dependent on the member. (3) If the Scottish Ministers have accepted a member’s application and the member subsequently dies before his nominated partner, the dependent surviving nominated partner is entitled to a dependent surviving nominated partner’s pension. (4) The dependent surviving nominated partner’s pension is to be calculated in the same way as a widow’s pension under regulations G1 to G6 but based only on the member’s pensionable service before 6th April 1988. (5) If the Scottish Ministers have accepted a member’s application for a dependent surviving nominated partner’s pension and the member’s pensionable service started before 6th April 1988 any lump sum payable to the member will be reduced by an amount equal to 1.4 times the yearly rate of the part of the member’s pension that is based on pensionable service before 6th April 1988 (except to the extent that any reduction has been off-set under regulation Q2). (6) If regulation E2(10), E2A(10) or E6(8) applies to a member who has a nominated partner, any reference in those provisions to a lump sum payable on retirement means, in relation to a member to whom paragraph (5) of this regulation refers, a lump sum that is not reduced as described in that paragraph. (G16) (1) Subject to this regulation, an officer in respect of whom a pension has not already become payable under regulation E2 or E2A may, in respect of the whole or any part of his contributing service before 6th April 1988, elect to purchase an increase in the amount of any survivor’s pension that becomes payable under the scheme. (2) The purchase of an increase under paragraph (1) may be made only in respect of complete years of service, unless the officer wishes to purchase an increase in respect of all of his service before 6th April 1988, in which case the whole of the requisite period may be purchased whether or not it constitutes a multiple of complete years of service. (3) An election under paragraph (1)– (a) must be made within the period of 15 months beginning with the date on which these Regulations come into force; (b) must be made by notice in writing, given to the Scottish Ministers; (c) must specify the period in respect of which the election is made; (d) must be accompanied by a declaration in writing signed by the officer that he is of sound health for his age; and (e) is irrevocable. (4) Each figure in tables 2 and 4 of Schedule 1 is multiplied by a factor of 0.7 in respect of the cost of providing the increase provided under paragraph (1). (5) In this regulation “survivor’s pension” means a pension that becomes payable by virtue of– (a) regulation G7; (b) regulation G10; or (c) regulation G14. (G17) (1) If a member elects on or before the date determined in accordance with regulation G16(3)(a) to buy an increased surviving partner’s pension under regulation G16(1), any survivor’s pension that becomes payable in respect of that member will be based on pensionable service after 5th April 1988 plus any period of pensionable service before that date that the member elected to buy for this purpose under regulation G16(1). (2) Any survivor’s pension payable in respect of the member shall be paid to (as the case may be) the member’s surviving widower, civil partner or nominated partner regardless of whether that pension is payable by virtue of regulation G7, regulation G10 or regulation G14. (3) Subject to paragraph (4), any retirement lump sum payable to a member under regulation E7, in respect of any period of pensionable service that the member elected to buy as described in paragraph (1), will be reduced by 1.4 times the yearly rate of the member’s pension plus the relevant daily proportion of that rate for each additional day (except to the extent that any lump sum reduction has been off-set under regulation Q2). (4) If regulation E2(10), E2A(10) or E6(8) applies to a member to whom this regulation refers, any reference in those regulations to a lump sum payable on retirement must be taken to mean a lump sum that is not reduced as described in paragraph (2) of this regulation. (5) Subject to paragraph (6) if, by virtue of an election under regulation G16(1), the amount of the retirement lump sum would fall to be reduced by 1.4 times the yearly rate of a member’s pension plus the relevant daily proportion of that rate for each additional day, he may make an election to purchase an unreduced lump sum under regulation Q2 (right to buy an unreduced retirement lump sum) provided that the election is made no later than the date determined in accordance with regulation G16(3)(a). (6) A member who has purchased additional service in accordance with regulation Q1 (right to buy additional service) by way of a payment under regulation Q6 (electing to buy additional service or unreduced retirement lump sum) is not entitled to make an election under paragraph (4) in respect of the purchase of an unreduced lump sum.

Amendment of regulation H1

33

• (1) Regulation H1 (dependent child) is amended as follows.

• (2) In paragraph (1)–

• (a) in sub-paragraph (c)[^f00015], for “or civil partner” substitute “, civil partner or nominated partner”; and

• (b) after sub-paragraph (d) insert–

• ; or a child of a member’s nominated partner from a nominated partnership formed before the date on which the member leaves pensionable employment,

• (3) After paragraph (2) insert–

(2A) A child is a dependent child of a person whose pensionable employment ceases on or after 1st April 2008 for so long as he is– (a) under age 23; or (b) aged 23 or over and incapable of earning a living because of permanent physical or mental infirmity from which he was suffering at the time the member died.

• (4) In paragraph (3)[^f00016], for “A child is a dependent child” substitute “Subject to paragraphs (6) and (7), a child is a dependent child of a person whose pensionable employment ceases on or before 31st March 2008”.

Amendment of regulation H3

34

• (1) Regulation H3 (child allowance when member dies in pensionable employment) is amended as follows.

• (2) In paragraph (2) after “paragraph (3)” insert “if the member dies before 1st April 2008”.

• (3) After paragraph (2) insert–

(2A) If the member dies on or after 1st April 2008 the allowance will be calculated as described in whichever of paragraphs (4A) to (4D) apply– (a) as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health and had qualified for an upper tier pension under regulation E2A on the day he died; or (b) if greater, the amount that the member’s pension would have been if it had been based on 10 years pensionable service.

• (4) After paragraph (4) insert–

(4A) Subject to paragraphs (4B) to (4E), if the member dies leaving a dependent child and there is a surviving parent (or spouse, civil partner or nominated partner of a parent), the allowance will be equal to– (a) one-quarter of the pension described in paragraph (2A) if there is only one dependent child; and (b) one-half if there are two or more. (4B) If a widow's, widower's, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B) (widow’s pension when member dies in pensionable employment), the allowance payable in respect of any dependent child who is dependent on that widow, widower, surviving civil partner or surviving nominated partner will be payable from the day following the member’s death. (4C) If a widow's, widower's, surviving civil partner’s or nominated partner’s pension is payable at the rate mentioned in regulation G2(3B) but there is a dependent child who is not dependent on that widow, widower, surviving civil partner or surviving nominated partner, the allowance in respect of that child for the first three months after the member’s death will be equal to the rate of member’s pensionable pay when the member died. (4D) If a member dies leaving a dependent child and there is no surviving parent (or spouse, civil partner or nominated partner of a parent), the allowance will be equal to– (a) one-third of the pension described in paragraph (2A) if there is only one dependent child; and (b) two-thirds if there are two or more, except that the allowance for the first six months after the member’s death will be equal to the rate of the member’s pensionable pay when the member died. (4E) If the member dies leaving a dependent child and there is a surviving parent (or spouse, civil partner or nominated partner of a parent) but there is no entitlement to a widow's, widower’s or surviving civil partner’s pension calculated under regulation G2, the allowance will be paid at the rates described in paragraph (4D).

• (5) For paragraph (9) after “pay contributions”, insert “on or before 1st April 2008” and for “paragraphs (2) to (8)”, substitute “paragraph (2)”.

• (6) After paragraph (10) insert–

(11) The child allowance payable on a member’s death if, on the day the member died, the member is– (a) under the age of 75 if not a special class officer or under the age of 70 if a special class officer; (b) in NHS employment; (c) no longer required to pay contributions on or after 2nd April 2008 pursuant to regulation D1(3) or (4) (contributions by members); and (d) except where regulation R4(6) (members doing more than one job) applies, not in receipt of a pension under any of regulations E1 to E5, will be as described in paragraph (2A) but with the modifications set out in paragraph (12). (12) The modifications referred to in paragraph (11) are– (a) in paragraph (2A)(a) for “on the day he died” substitute “on the member’s last day of pensionable employment”; and (b) in paragraphs (4C) and (4D) for “member’s pensionable pay when he died” substitute “member’s final year’s pensionable pay”.

Amendment of regulation H4

35

• (1) Regulation H4 (child allowance when member dies after pension becomes payable) is amended as follows.

• (2) For paragraph (2) substitute–

(2) Subject to paragraphs (2A) and (8), the allowance will be calculated, as described in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension or, if greater, the amount that the member’s pension would have been if it had been based on 10 years pensionable service. (2A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated in whichever of paragraphs (3) or (4) apply, as a proportion of the amount of the member’s pension or, if greater, the amount that the member’s pension would have been if it had been based on the shorter of– (a) 10 years pensionable service; and (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.

• (3) In paragraph (3), for “or civil partner” substitute “, civil partner or nominated partner”.

• (4) After paragraph (8) insert–

(9) If a member who was in receipt of a substitute pension under regulation E2C dies before the end of the protection period that applies to him under regulation E2C(6)(a) or (b), the member’s pension referred to in paragraph (2) means that member’s original upper tier pension. (10) For the purpose of paragraphs (2) and (7), no account will be taken of any reduction to the member’s pension under regulation E11 (general option to exchange part of pension for lump sum).

Amendment of regulation H5

36

• (1) Regulation H5 (child allowance when member dies with preserved pension) is amended as follows.

• (2) In paragraph (2)–

• (a) for “If the member dies” substitute “Subject to paragraph (2A), if the member dies”;

• (b) for “H3(2)” substitute “H3(2A)”; and

• (c) omit “and, where applicable, H3(3)”.

• (3) After paragraph (2) insert–

(2A) Subject to paragraph (2B) if the member’s pensionable employment ceased on or before 31st March 2008 the allowance will be calculated, as described in whichever of paragraph (4), (5) or (6) apply, as a proportion of the pension that would have been payable to the member under the scheme if the member retired through ill health with a pension under regulation E2 on the day he died. (2B) If the member has less than 5 years' pensionable service, the allowance will be calculated as if the pension described in paragraph (2A) were based on the shorter of– (a) 10 years' pensionable service; and (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.. (4) For paragraph (3) substitute– (3) Subject to paragraph (3A), if the member dies 12 months or more after leaving pensionable employment, the allowance will be calculated as described in whichever of paragraph (4), (5) or (6) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount that the preserved pension would have been if it had been based on 10 years' pensionable service. (3A) If the member’s pensionable employment ceased on or before 31st March 2008, the allowance will be calculated as described in whichever of paragraph (4), (5) or (6) apply, as a proportion of the amount of the member’s preserved pension or, if greater, the amount of that the preserved pension would have been if it has been based on the shorter of– (a) 10 years' pensionable service; and (b) the pensionable service the member could have completed if he had stayed in pensionable employment until age 65.

• (5) In paragraphs (4) and (5)–

• (a) for “or surviving civil partner” substitute “, surviving civil partner or surviving nominated partner”; and

• (b) for “paragraph (2) or (3)” substitute “paragraphs (2) to (3A)”.

• (6) In paragraph (6)–

• (a) for “or surviving civil partner” substitute “, surviving civil partner or nominated partner”; and

• (b) for “or surviving civil partner's” substitute “, surviving civil partner’s or surviving nominated partner's”.

Amendment of regulation H7

37

• (1) In the heading to regulation H7 (increase of child allowance when child not dependent on surviving parent or spouse or civil partner of the parent), for “or civil partner” substitute “, civil partner or nominated partner”.

• (2) In regulation H7, for “or civil partner” wherever occurring, substitute “, civil partner or nominated partner”.

Amendment of regulation J1

38

For regulation J1(4)(b) (allocation of pension by member for benefit of dependent) substitute–

(b) if in pensionable employment– (i) in the case of a member who is not a special class officer, at any time after completing 45 years pensionable service; or (ii) in the case of a member who is a special class officer, at any time after reaching age 55 and completing 40 years pensionable service; or

Replacement of regulation K1

39

For regulation K1 (contracting-out conditions to be overriding) substitute–

(K1) (1) The scheme will be administered in conformity with the contracting-out conditions and, with the exception of the circumstances specified in paragraph (2), regulations K2 to K7 override any inconsistent provisions of these Regulations. (2) The circumstances referred to in paragraph (1) are– (a) where a trivial pension is commuted in accordance with regulation T7 (commutation of trivial pensions); (b) where a pension is commuted in accordance with regulations E2(10) (early retirement pension (ill health)), E2A(10) (ill health pension on early retirement) or E6(5) (preserved pension); or (c) where a pension is forfeited for the reasons specified in regulation T6(1)(b) or (c) (loss of rights to benefits). (3) In this Part– (a) “contracting-out conditions” means the conditions specified in sections 9(2A) and (2B) (requirements for certification of schemes) of the 1993 Act; (b) “guaranteed minimum” means the guaranteed minimum as defined in sections 13 to 17 of the 1993 Act; (c) “guaranteed minimum pension” is a pension calculated in accordance with the guaranteed minimum requirements; and (d) “protected rights” has the same meaning as in the 1993 Act.

Amendment of regulation K2

40

• (1) Regulation K2 (guaranteed minimum pensions) is amended as follows.

• (2) In paragraph (1), for “section 14 of the Pension Schemes Act 1993 (earner’s guaranteed minimum)” substitute “section 13 (minimum pensions for earners) of the 1993 Act”.

• (3) In paragraphs (4), (4A) and (5), for “tax year 1988-89 and subsequent tax years” substitute “tax years 1988 89 to 1996 97 inclusive”.

• (4) For paragraph (6) substitute–

(6) A member who on leaving pensionable employment– (a) becomes entitled to a refund of contributions under regulation E9 (early leavers' entitlement to refund of contributions); or (b) exercises a right to require a transfer or buy-out in accordance with regulation M2 (exercising a right to transfer or buy-out), but, in either case, remains (as described in regulation E9(2)) entitled to a guaranteed minimum pension or section 9(2B) rights, is entitled to the benefits specified in paragraphs (6A) and (6B). (6A) The benefits are– (a) a pension payable from the date on which he reaches state pension age at a weekly rate equal to his guaranteed minimum (if any); and (b) a pension and lump sum from the date he reaches normal benefit age in respect of his section 9(2B) rights. (6B) On the death of a member to whom paragraph (6) applies, no benefit will be payable except for a widow's, widower's, surviving civil partner’s or nominated partner’s pension equal to the aggregate of– (a) that described in paragraph (3) or, as the case may be, paragraph (4); and (b) half the member’s pension in respect of section 9(2B) rights.

Amendment of regulation L1

41

In regulation L1(3)(b) (treatment of pensionable service of early leavers returning to pensionable employment), after “(early retirement pension on grounds of ill health)” insert “or E2A (ill health pension on early retirement)”.

Replacement of regulations M1 to M6

42

For regulations M1 to M6 substitute–

(M1) (1) A member who leaves pensionable employment with a preserved pension has the right to require the Scottish Ministers to transfer or buy-out his rights under the scheme as described in this regulation. (2) Subject to the following provisions of this regulation, the member may require the Scottish Ministers to use the cash equivalent of his rights under the scheme– (a) to purchase one or more buy-out policies from one or more insurance companies chosen by the member; (b) to acquire rights under– (i) another occupational pension scheme; or (ii) a personal pension scheme, that satisfies the requirements of Chapter IV of Part IV of the 1993 Act; (c) to acquire rights under an arrangement that is a qualifying recognised overseas pension scheme for the purposes of section 169(2) (recognised transfers)[^f00017] of the 2004 Act; or (d) in any combination of the ways described in sub paragraphs (a), (b) and (c). (3) The member must exercise his right under paragraph (1) in relation to each and every portion of the cash equivalent unless paragraph (4) applies. (4) The benefits attributable to– (a) the member’s accrued rights to a guaranteed minimum pension; or (b) the member’s accrued rights attributable to service in contracted-out employment on or after 6th April 1997, may be excluded from the cash equivalent transfer value payment if section 96(2) (further provisions concerning exercise of option under s.95) of the 1993 Act applies (trustees or managers of certain receiving schemes or arrangements able and willing to accept a transfer payment only in respect of the member’s other rights). (5) A member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme in accordance with paragraph (2) may exercise the right– (a) at any time before reaching age 60; or (b) at a later time if the member exercises the right to require a transfer on the transfer of his employment to a new employer as a result of a transfer of an undertaking to that employer. (6) A member may require the Scottish Ministers to use the cash equivalent of the member’s rights under the scheme to purchase one or more buy-out policies or to acquire rights under a personal pension scheme only– (a) if the member leaves pensionable employment on or after 1st January 1986; and (b) if those rights are to be transferred to a personal pension scheme, in relation to any period of service of 2 years or more falling before 6th April 1988, only if a period of not less than one month has elapsed between the date the member left NHS employment and the date of commencement of any further NHS employment. (7) Paragraph (8) applies where a member– (a) leaves pensionable employment by opting-out; (b) on so doing becomes entitled to a preserved pension under regulation E6 (preserved pension); and (c) has at least 2 years' service before 6th April 1988. (8) In relation to the member’s rights– (a) the member’s right to require a transfer or buy-out will be limited to the cash equivalent of the part of the member’s rights that is attributable to service after 5 April 1988; and (b) the member will acquire a right to the cash equivalent of the member’s remaining rights only if the member actually leaves NHS employment before reaching age 60. (9) A member who leaves pensionable employment before reaching age 60, without becoming entitled to a pension under any of regulations E1 to E5 or a preserved pension under regulation E6 will be treated, for the purposes of regulations M1 to M5, as if he had left pensionable employment with a preserved pension, except that– (a) a member who requires the cash equivalent to be used to buy one or more buy-out policies must exercise the right to buy-out within 12 months after leaving pensionable employment; and (b) a member who requires the cash equivalent to be used to acquire rights under another occupational pension scheme, a personal pension scheme or a qualifying recognised overseas pension scheme must join that other scheme within 12 months after leaving pensionable employment and exercise the right to transfer within 12 months after joining that other scheme. (M2) (1) A member who wishes to exercise his right to a transfer or a buy out must apply in writing to the Scottish Ministers for a statement of the amount of the cash equivalent of the member’s accrued benefits under the scheme at the guarantee date (“statement of entitlement”). (2) In these Regulations, “the guarantee date” means any date that– (a) falls within the required period; (b) is chosen by the Scottish Ministers; (c) is specified in the statement of entitlement; and (d) is within the period of 10 days ending with the date on which the member is provided with the statement of entitlement. (3) In counting the period of 10 days referred to in paragraph (2)(d), Saturdays, Sundays, Christmas Day, New Year’s Day and Good Friday are excluded. (4) In paragraph (2) “the required period” means– (a) the period of 3 months beginning with the date of the member’s application for a statement of entitlement; or (b) such longer period beginning with that date (but not exceeding six months) as may reasonably be required if, for reasons beyond the control of the Scottish Ministers, the requisite information cannot be obtained to calculate the amount of the cash equivalent. (5) The member may withdraw the application for a statement of entitlement by notice in writing at any time before the statement is provided. (M3) (1) Subject to the following provisions of this regulation, the member’s guaranteed cash equivalent will be equal to the capitalised value of all the member’s accrued rights to benefits under the scheme and any associated rights under Part I of the Pensions (Increase) Act 1971[^f00018], calculated and verified as required by Chapter IV of Part IV of the 1993 Act. (2) Except in the case of a transfer payment accepted under regulation N3A (transfers in respect of members to whom regulation B6 applies who elect to rejoin the scheme), a member’s cash equivalent will be at least equal to the amount of any transfer payments accepted in respect of the member under regulation N1(4) (member’s right to transfer accrued rights to benefits to the scheme), plus the amount of the member’s contributions to the scheme. (3) If a member’s cash equivalent is used to acquire rights under another occupational pension scheme, any part of the cash equivalent that relates to service before 29th January 1988 will be calculated as described in the 1980 Regulations as applicable immediately before that date, if this would be more favourable to the member. (4) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is calculated– (a) in accordance with those arrangements rather than paragraphs (2) and (3); and (b) by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph that are in use on the date used for the calculation. (5) In any case where the Scottish Ministers have directed, under regulation T6 (loss of rights to benefits), that part of a member’s benefits under these Regulations is forfeited, the cash equivalent payable in respect of that member shall be reduced by the capitalised value of the forfeited part of those benefits. (M4) (1) A member who has applied for and received a statement of entitlement under regulation M2 may apply in writing to the Scottish Ministers for a transfer value payment to be made. (2) On making such an application a member becomes entitled to a payment of an amount equal, or amounts equal in aggregate, to the amount specified in the statement of entitlement (or such other amount as may be payable by virtue of regulation M5(2)). (3) In these Regulations such a payment is referred to as “the guaranteed cash equivalent transfer value payment”. (4) The application must specify the pension scheme or other arrangement to which the payment or payments should be applied. (5) The application must meet such other conditions as the Scottish Ministers may require. (6) An application under this regulation may be withdrawn by notice in writing to the Scottish Ministers, unless an agreement for the application of the whole or part of the guaranteed cash equivalent transfer value payment has been entered into with a third party before the notice is given. (M5) (1) Subject to paragraph (5), an application under regulation M4 must be made before the end of the period of 3 months beginning with the guarantee date, and the payment must be made no later than– (a) 6 months after that date; or (b) if it is earlier, the date on which the member reaches 60. (2) If the payment is made later than 6 months after the guarantee date, the amount of the payment to which the member is entitled must be increased by– (a) the amount by which the amount specified in the statement of entitlement falls short of the amount it would have been if the guarantee date had been the date on which the payment is made; or (b) if it is greater and there was no reasonable excuse for the delay in payment, interest on the amount specified in the statement of entitlement, calculated on a daily basis over the period from the guarantee date to the date when the payment is made at an annual rate of 1% above the Bank of England base rate. (3) In this regulation “Bank of England base rate” means– (a) except where sub paragraph (b) applies, the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets; or (b) if an order under section 19 (reserve powers) of the Bank of England Act 1998[^f00019] is in force, any equivalent rate determined by the Treasury under that section. (4) Paragraph (5) applies if– (a) disciplinary or court proceedings against the member are begun within 12 months after the member leaves the employment which qualified the member to belong to the scheme; and (b) it appears to the Scottish Ministers that the proceedings may lead to all or part of the member’s benefits being forfeited under regulation T6 (loss of rights to benefits). (5) The Scottish Ministers may defer doing what is needed to carry out what the member requires until the end of the period of 3 months beginning with the date on which those proceedings (including any proceedings on appeal) are concluded. (6) In any case where a direction is given under regulation T6 for the forfeiture of a member’s benefits, this regulation applies as if the amount specified in the statement of entitlement were reduced by an amount equal to the value of the benefits forfeited, as determined by the scheme actuary. (7) Subject to paragraph (8), if a transfer value payment is made in respect of a member’s rights under the scheme, those rights are extinguished. (8) If the member’s rights described in regulation M1(4) have been excluded from the transfer payment, the Scottish Ministers will continue to be liable to provide the benefits described in regulation K2(7) (guaranteed minimum pensions). (M6) (1) If one or more members (the transferring members)– (a) leave pensionable employment; (b) join another occupational pension scheme; and (c) exercise a right to transfer to that scheme under regulation M2, the Scottish Ministers may, after taking advice from the scheme actuary, make a single transfer payment to that scheme in respect of the transferring members. (2) The Scottish Ministers must calculate the amount of any transfer payment paid under this regulation taking advice from the scheme actuary.

Amendment of regulation N1

43

In regulation N1(2)(b) (member’s right to transfer accrued rights to benefits to the scheme), after “amount of the transfer payment” insert “that relates to rights accrued in the transferring scheme before 6th April 1997.”.

Omission of regulation N5

44

Regulation N5 (waiver of transfer payments) is omitted.

Amendment of regulation P3

45

In regulation P3 (absence for reasons other than illness or injury), for paragraph (1) substitute–

(1) This regulation applies to a member who starts a leave of absence from work on, or after, 1st April 2008 for reasons other than those referred to in regulation P1. (1A) A period of absence to which this regulation applies will count as pensionable service if for a continuous period not exceeding 6 months commencing with the member’s first day of leave of absence, the member contributes to the scheme.

Amendment of regulation Q1

46

• (1) Regulation Q1 (right to buy additional service)[^f00020] is amended as follows.

• (2) After paragraph (1) insert–

(1A) A member may only increase his rights to benefits by buying additional service, other than service to which paragraph (9) refers, if– (a) he has given notice of his intention to exercise that right– (i) in writing; or (ii) in such other form as the Scottish Ministers agree to accept; (b) that notice was received by his employing authority or the scheme administrator on or before 31st March 2008; (c) the Scottish Ministers accept an election to pay for additional service under regulation Q6; and (d) the member makes regular additional contributions in respect of that election from a birthday that falls between 1st April 2008 and 31st March 2009.

• (3) For paragraph (2) substitute–

(2) A member buying additional service to which paragraph (9) refers, may choose to pay for that additional service by– (a) making a single payment in accordance with regulation Q3; (b) making regular additional contributions in accordance with regulation Q5; or (c) a combination of payments described in sub-paragraphs (a) and (b). (2A) A member buying additional service other than that to which paragraph (9) refers, must pay for that additional service by making regular additional contributions in accordance with regulation Q5.

• (4) In paragraph (4)(a) after “(early retirement pension on grounds of ill health)” insert “or E2A (ill health pension on early retirement)”.

• (5) After paragraph (5A) insert–

(5B) For the purpose of regulation G14 (surviving nominated partner’s pension) if a member who has a nominated partner exercised his right to buy additional service before 6th April 1988, the additional service bought as a result of the exercise of that right will be treated as service before 6th April 1988.

Amendment of regulation Q2

47

In regulation Q2(1) (right to buy an unreduced retirement lump sum) omit “or in a civil partnership”.

Amendment of regulation Q3

48

• (1) Regulation Q3 (payment for additional service by single payment) is amended as follows.

• (2) For paragraph (1) substitute–

(1) A member who wishes to buy additional service for all or part of his previous pensionable service in accordance with regulation Q1(9) by a single payment must elect to do so within 12 months of re-joining the scheme following the break in pensionable employment described in that regulation.

• (3) Omit paragraph (2).

• (4) For paragraph (3) substitute–

(3) The amount of a single payment for additional service will be one half of the cost calculated in accordance with table 1 of Schedule 2.

• (5) Omit paragraph (7).

Amendment of regulation Q4

49

After regulation Q4(2A) (paying for unreduced retirement lump sum by single payment) insert–

(2B) A member who has a nominated partner who wishes to pay for an unreduced lump sum by a single payment must elect to do so within 12 months after applying for his nominated partner to receive a dependent surviving nominated partner’s pension under regulation G15.

Amendment of regulation Q5

50

• (1) Regulation Q5 (paying by regular additional contributions) is amended as follows.

• (2) In paragraph (6)–

• (a) after “scheme” insert “before 1st April 2008”; and

• (b) for “the Inland Revenue” substitute “the Commissioners for Her Majesty’s Revenue and Customs[^f00021]”.

• (3) After paragraph (6) insert–

(6A) The member’s total regular additional contributions made on or after 1st April 2008 under this regulation may not exceed– (a) in the case of a member paying contributions of 5 per cent of the member’s pensionable pay under regulation D1 (contributions by members) on the member’s birthday immediately following the date of the election referred to in paragraph (3), 10 per cent of pensionable pay; (b) in the case of a member paying contributions of more than 5 per cent of the member’s pensionable pay under regulation D1 on the birthday referred to in sub paragraph (a), 9 per cent of pensionable pay; and (c) in any case referred to in sub-paragraph (a) or (b), any other limit specified for the time being by the Commissioners for Her Majesty’s Revenue and Customs.

Amendment of regulation Q7

51

• (1) Regulation Q7 (part payment for additional service or unreduced retirement sum) is amended as follows.

• (2) In paragraph (2), after “(early retirement pension (ill health))” insert “or E2A (ill health pension on early retirement)”.

• (3) In paragraph (3), after “E2” insert “or E2A”.

Insertion of new regulations Q8 to Q17

52

After regulation Q7 (part payment for additional service or unreduced retirement sum) insert–

(Q8) (1) A member who is in pensionable employment may opt to make additional periodical contributions during the contribution option period to increase by a specified amount– (a) the benefits payable to the member under Parts E (benefits for members) and S (members who return to pensionable employment after pension becomes payable) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependant children at the same rate as the member’s pension for three to six months under Parts G (widows and widowers) , H (dependent child allowance) and S); or (b) those benefits and the benefits payable in respect of surviving partners and dependent children under Parts G, H and S. (2) A member may exercise the option under paragraph (1) more than once. (3) If a member exercises an option under paragraph (1), the member’s employing authority must– (a) deduct the member’s contributions from the member’s earnings; and (b) pay them to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid. (4) The annual amount of the periodical contributions payable at the beginning of the contribution option period must not be– (a) an amount less than the minimum amount; or (b) an amount other than a multiple of that amount. (5) In paragraph (4) “minimum amount” means the amount that would, in accordance with tables prepared for the Scottish Ministers by the scheme actuary for the scheme year in which the contributions are paid, be the amount of the contributions required to secure an increase in the member’s pension of– (a) £250; or (b) such other amount as the Scottish Ministers may for the time being determine assuming that the contributions are made in accordance with the option for the remainder of the option period. (6) The tables referred to in paragraph (5)– (a) may specify different amounts for different descriptions of members; and (b) may be amended during a scheme year, but no such amendment affects the contributions payable under any option during that year, except an option under which contributions begin to be paid after the date on which the amendment takes effect. (7) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of– (a) contributions made under regulation Q10 (member’s option to pay lump sum contributions to purchase additional pension); or (b) contributions made under regulation Q11 (payment of additional lump sum contributions by employing authority), may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine. (8) In these Regulations “the contribution option period”, in relation to an option under this regulation, means a period of whole years, that– (a) is specified in the option; (b) begins with the pay period in respect of which the first contribution is made under the option; (c) is not less than 1 year nor more than 20 years; and (d) does not end later than the member’s chosen birthday as specified in the option. (9) For the purposes of this Part, a member’s 'chosen birthday' must be either his 60th or 65th birthday. (Q9) (1) This paragraph applies if during the contribution option period a member who has exercised the option under regulation Q8– (a) is absent from work for any of the reasons described in regulation P1(2) (maternity, paternity and adoption absence); or (b) is on a leave of absence in accordance with regulation P2 (absence because of illness or injury). (2) If paragraph (1) applies– (a) the contributions under the option continue to be payable unless the member ceases paying contributions under regulation D1; and (b) where the member does so cease, the member may continue to make contributions in accordance with the option if the member resumes making contributions under regulation D1 before the end of the period of 12 months beginning with the day on which the member first ceased to pay those contributions. (3) This paragraph applies if a member– (a) exercises the option under regulation Q8; (b) leaves pensionable employment during the contribution option period; and (c) returns to pensionable employment within 12 months of leaving. (4) If paragraph (3) applies, the member may continue to make contributions in accordance with the option after returning to pensionable employment unless a refund of contributions has been made to the member under regulation E9 (early leavers' entitlement to refund of contributions). (5) For the purposes of paragraph (4) it does not matter whether the member has paid any of the repaid contributions to the Scottish Ministers in accordance with regulation E9(3). (Q10) (1) A member who is in pensionable employment may opt to make a single lump sum contribution to increase by a specified amount– (a) the benefits payable to the member under Parts E and S, including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependant children at the same rate as the member’s pension for three to six months under Parts G, H and S; or (b) those benefits and the benefits payable in respect of surviving partners and dependent children under Parts G, H and S. (2) A member may only make a contribution under this regulation of an amount– (a) that is not less than the minimum amount; or (b) a multiple of that amount. (3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the Scottish Ministers by the scheme actuary, the amount of the single contribution required at the time that the option is exercised to secure an increase in the member’s pension of– (a) £250; or (b) such other amount as the Scottish Ministers may for the time being determine. (4) A member may exercise the option under paragraph (1) more than once. (5) If a member exercises an option under paragraph (1) the additional contribution is payable by the member to the employing authority– (a) by deduction from the member’s earnings or otherwise; and (b) before the end of the period of 1 month beginning with the day on which the member is notified by the Scottish Ministers that the option is accepted. (6) The employing authority must pay the additional contributions to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid or, as the case may be, the authority received payment of the contribution. (7) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of– (a) contributions made under regulation Q8; or (b) contributions made under regulation Q11, may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine. (Q11) (1) The employing authority of a member who is in pensionable employment may opt to make a single lump sum contribution to increase by a specified amount– (a) the benefits payable to the member under Parts E and S, including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependant children at the same rate as the member’s pension for three to six months under Parts G, H and S; or (b) those benefits and the benefits payable in respect of surviving partners and dependent children under Parts G, H and S. (2) An employing authority may only make a contribution under this regulation of an amount– (a) that is not less than the minimum amount (as defined in regulation Q10(3)); or (b) a multiple of that amount. (3) An employing authority may only exercise the option under paragraph (1) with the member’s consent, but may exercise it more than once in respect of the same member. (4) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of– (a) contributions made under regulation Q8; or (b) contributions made under regulation Q10, may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine. (5) A contribution under this regulation must be paid by the employing authority to the Scottish Ministers within one month of the date on which the authority gave the Scottish Ministers notice under regulation Q12(2). (Q12) (1) A member exercising an option under regulation Q8 or Q10 must do so by giving notice in writing to the employing authority, giving such information as may be required. (2) An employing authority exercising an option under regulation Q11 must do so by giving notice in writing to the Scottish Ministers, giving such information as may be required. (3) An option under regulation Q8, Q10 or Q11 may not be exercised during a period when the member is absent from work. (4) For the purposes of these Regulations– (a) a member is treated as exercising an option under regulation Q8 or Q10 on the date on which the employing authority receives the member’s notice under paragraph (1); and (b) an employing authority is treated as exercising an option under regulation Q11 on the date on which the Scottish Ministers receives the authority’s notice under paragraph (2). (5) The Scottish Ministers– (a) must refuse to accept an option exercised under– (i) regulation Q8 if not satisfied that that the member is in good health and there is no reason why the member’s health should prevent the member from paying the contributions for the whole contribution period; and (ii) regulation Q10 or Q11 if not satisfied that the member is in good health; and (b) may refuse to accept an option under regulation Q8, Q10 or Q11 in any other circumstances. (6) If the Scottish Ministers refuse to accept an option described in paragraph (5), the Scottish Ministers must give notice in writing of that fact– (a) in the case of an option exercised under regulation Q8 or Q10, to the member; and (b) in the case of an option exercised under regulation Q11, to the employing authority and the member. (7) These Regulations apply as if an option– (a) under regulation Q8, Q10 or Q11 had not been exercised if the Scottish Ministers refuse to accept the option; (b) under regulation Q10 had not been exercised if the payment is not received by the employing authority– (i) before the end of the period of 1 month beginning with the day on which the Scottish Ministers notify the member of the acceptance of the option; or (ii) if it is earlier, on or before the member’s chosen birthday; and (c) under regulation Q11 had not been exercised if the payment is not received by the Scottish Ministers on or before the member’s chosen birthday. (Q13) (1) A member may cancel an option under regulation Q8(1) by giving the employing authority notice in writing. (2) If a member cancels such an option, the additional periodical contributions cease to be payable for the first pay period beginning after the date on which the employing authority receives the notice and all subsequent pay periods. (3) If it appears to the Scottish Ministers that the requirement in regulation Q8(7) will not be met if the member continues to makes periodical contributions under an option exercised under regulation Q8, the Scottish Ministers may cancel the option by giving the member notice in writing. (4) If the Scottish Ministers cancel such an option, the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods. (Q14) (1) This regulation applies if– (a) an option is exercised by a member under regulation Q8 and all the contributions to be made under the option are made; or (b) an option is exercised by a member under regulation Q10 or by a member’s employing authority under regulation Q11 and the lump sum payment is made. (2) Subject to paragraph (7) the member’s pension is increased by the full amount of the increase to be made in accordance with the terms of the option after the final adjustment in that amount in accordance with regulation Q17. (3) Paragraph (2) is without prejudice to any reduction falling to be made in accordance with regulation Q15(5) as a result of the member becoming entitled to payment of a pension before his chosen birthday. (4) In the case of an option under regulation Q8(1)(b), Q10(1)(b) or Q11(1)(b), any benefit payable to a surviving partner or a dependent child in respect of the member under these Regulations is increased by the appropriate amount. (5) In paragraph (4), subject to regulations Q15 and Q16(3), “the appropriate amount” means– (a) in the case of a surviving partner pension payable under regulation G2 (widow’s pension when member dies in pensionable employment), G4 (widow’s pension when member dies with preserved pension) or S4A(10) (benefits on death in pensionable employment after pension under regulation E2A becomes payable), 37.5% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)); (b) in the case of a surviving partner pension payable under regulation G3 (widow’s pension when member dies after pension becomes payable), 37.5% of the amount of the increase in the member’s pension as a result of the option; (c) in the case of a child allowance payable under regulation H3 (child allowance when member dies in pensionable employment), H5 (child allowance when member dies with preserved pension) or S4A(17)(b), the appropriate fraction of 75% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)); and (d) in the case of a child allowance payable under regulation H4 (child allowance when member dies after pension becomes payable) or S4A(17)(a), the appropriate fraction of 75% of the amount of the increase in the member’s pension as a result of the option. (6) For the purposes of paragraph (5) the “appropriate fraction” means the same fraction as that applied to the member’s pension in order to calculate the amount of child allowance payable in respect of that member. (7) Paragraph (8) applies only to an option under regulation Q8(1)(a), Q10(1)(a) or Q11(1)(a) where a pension is to be paid for either three or six months at the same rate as the member’s pension was being paid at the date of that member’s death. (8) Any increase in a member’s pension shall be included only in a benefit payable to a surviving partner or a dependent child in respect of the member under these Regulations whilst it is being paid at the rate and for the duration of one of the periods referred to in paragraph (7). (Q15) (1) If a member in respect of whom an option under regulation Q8, Q10 or Q11 has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised– (a) an amount equal to the contributions paid under the option must be paid– (i) in the case of an option under regulation Q8 or Q10, to the member’s personal representatives; and (ii) in the case of an option under regulation Q11, to the employing authority which made the contribution; and (b) regulation Q14(4) does not apply. (2) If a member in respect of whom an option under regulation Q8 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation Q14(4) applies as if all contributions due after the date of death had been made. (3) If a member in respect of whom an option under regulation Q8, Q10 or Q11 has been exercised becomes entitled to a pension under regulation E2A as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised– (a) regulation Q14(2) and (4) does not apply; and (b) an amount equal to the contributions paid under the option must be paid– (i) in the case of an option under regulation Q8 or Q10, to the member; and (ii) in the case of an option under regulation Q11, to the employing authority which made the contribution. (4) If a member in respect of whom an option under regulation Q8 has been exercised becomes entitled to a pension under regulation E2A before the end of the contribution period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation Q14(2) and (4) applies as if all contributions under the option had been made. (5) If a member in respect of whom an option under regulation Q8, Q10 or Q11 has been exercised– (a) becomes entitled to a pension under regulation E3, E3A, or E5; (b) becomes entitled to a pension under regulation E1 or E6 before reaching the age of 60; or (c) becomes entitled to a pension under regulation E1 after age 60 but before his chosen birthday, the increase in the member’s pension which would otherwise be due under regulation Q14(2) or regulation Q16 is reduced. (6) The amount of the reduction is such amount as the Scottish Ministers determine, after consulting the scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches his chosen birthday. (Q16) (1) This regulation applies if– (a) the full number and amount of contributions due under an option under regulation Q8 for the whole contribution option period are not made; and (b) regulation Q15(1) to (4) do not apply. (2) The increase in the member’s pension is– (a) the appropriate proportion of the increase that would have been made under regulation Q14(2) if the full number and amount of contributions had been made; or (b) the appropriate proportion of the increase calculated in accordance with sub-paragraph (a) reduced in accordance with regulation Q15(6) if regulation Q15(5) applies to the member. (3) In the case of an option under regulation Q8(1)(b), Q10(1)(b) or Q11(1)(b), the increase in any surviving partner or child allowance payable under Parts G, H and S in respect of the member is– (a) the appropriate proportion of the increase that would have been made under regulation Q14(4) if the full number and amount of contributions had been made; or (b) the appropriate proportion of the increase calculated in accordance with sub-paragraph (a) reduced in accordance with regulation Q15(5) if that regulation applies to the member. (4) For the purposes of paragraphs (2) and (3), the appropriate proportion is calculated in accordance with such method as the scheme actuary may determine and specify in guidance given to the Scottish Ministers. (5) In making a determination under paragraph (4), the scheme actuary must have regard to– (a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation Q8 for the whole contribution option period; and (b) the preservation requirement. (Q17) (1) This regulation applies for the purposes of determining the final amount of the increase in a member’s pension as a result of the exercise of an option under regulation Q8, Q10 or Q11. (2) The amount of that increase immediately before the beginning date for that pension is found as set out in paragraph (3). (3) Step 1– - calculate the amount of the increase in accordance with regulations Q14 to Q16 immediately before the beginning date (“the basic amount”); - Step 2– multiply the basic amount by the retail prices index for the second month before that in which the person becomes entitled to it to find the Step 2 amount; - Step 3– divide the Step 2 amount by the retail prices index for the month in which the option was exercised to find the Step 3 amount; - Step 4– add to the Step 3 amount any amount by which the Step 3 amount would be increased under the Pensions (Increase) Act 1971[^f00022] if it were the amount of the member’s pension to find the Step 4 amount; - Step 5– divide the Step 4 amount by the Step 3 amount to find the Step 5 factor; and - Step 6– divide the Step 3 amount by the Step 5 factor to find the “adjusted basic amount”. (4) The amount of the increase in a member’s pension as a result of the exercise of an option under regulation Q8, Q10 or Q11 as at the beginning date for that pension is– (a) if the adjusted basic amount is greater than the basic amount, the adjusted basic amount; and (b) otherwise the basic amount. (6) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of section 8(2) of the Pensions (Increase) Act 1971.

Amendment of regulation R3

53

• (1) Regulation R3(8) (mental health officers) is amended as follows.

• (2) In sub paragraph (a) after “(early retirement pension (ill health))” insert “or E2A (ill health pension on early retirement)”.

• (3) In sub paragraph (b) for “or surviving civil partner's” substitute “surviving civil partner’s or surviving nominated partner's”.

Amendment of regulation R4

54

In regulation R4(3) (members doing more than one job), for “70” substitute “75”.

Amendment of regulation R8

55

• (1) Regulation R8 (members whose earnings are reduced) is amended as follows.

• (2) For paragraphs (1) and (2) substitute–

(1) The Scottish Ministers may agree to pay a preserved pension under regulation E6 in respect of a member’s pensionable service before the member’s earnings are reduced if– (a) the member has at least two year’s qualifying service; and (b) either of the following is the case– (i) within the three month period after the member’s earnings are reduced that member’s employer certifies that the reduction is due to the circumstances described in paragraph (2); or (ii) the member satisfies the conditions specified in paragraph (2A). (2) The circumstances referred to in paragraph (1)(b)(i) are that the reduction is due to– (a) the member being transferred to other employment with an employing authority; (b) the member taking up other employment with an employing authority in circumstances approved by the Scottish Ministers; or (c) a change in the member’s duties, while continuing in the same employment, otherwise than at the member’s request or as a result of something done by the member. (2A) The conditions referred to in paragraph (1)(b)(ii) are that– (a) the member has attained– (i) normal minimum pension age; or (ii) where relevant, protected pension age; (b) the member makes an election and the Scottish Ministers have not previously accepted an election made by that member; and (c) the member’s employer has certified that– (i) the member’s pensionable pay is reduced by at least 10% for a period of at least one year beginning with the first pay day on which the reduced pensionable pay was paid; (ii) for a period of at least 12 months ending immediately before the reduction referred to in head (i), the member’s pensionable pay had not been subject to any other reduction; and (iii) the reduction to the member’s pensionable pay is the result of a change to that member’s duties so that his new, or remaining, duties are less demanding and carry less responsibility than his previous duties.

• (3) For paragraph (4), substitute–

(4) An election referred to in paragraph (2A) of this regulation must be made– (a) in writing and addressed to the Scottish Ministers; and (b) within 15 months of the member’s pensionable pay being reduced.

• (4) In paragraph (5) for “exercising the option in this regulation”, substitute “ the Scottish Ministers agree to pay a preserved pension under regulation E6 in accordance with paragraph (1)”.

• (5) In paragraph (6)(b) after “(early retirement pension (ill health))”, insert “or E2A (ill health pension on early retirement)”.

• (6) For paragraph (7), substitute–

(7) If the member leaves pensionable employment with a pension under regulation E2 or E2A and the member’s pensionable service falls to be increased as described in– (a) regulation E2(4) to (6); or (b) regulation E2A(4) to (6), then, if the member’s pensionable service before and after the break is treated separately under paragraph (5), the increase will apply only in respect of benefits attributable to the period after the member’s earnings were reduced. (7A) For the purposes of this regulation “pensionable pay” in respect of part-time employment means the amount that the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment.

Amendment of regulation S1

56

For regulation S1(4) (suspension of pension on return to NHS employment) substitute–

(4) The pension referred to in paragraph (1) becomes payable again– (a) if the member for a period of 1 month– (i) ceases to be in any NHS employment; or (ii) reduces the number of hours worked to 16 or less; or (b) if sooner than events described in sub-paragraph (a)– (i) from the date of his 70th birthday if the pension referred to in paragraph (1) becomes payable on or before 31st March 2008; or (ii) from the date of his 75th birthday if the pension referred to in paragraph (1) becomes payable on or after 1st April 2008.

Amendment of regulation S2

57

• (1) Regulation S2 (reduction of pension on return to NHS employment) is amended as follows.

• (2) For paragraphs (1) and (1A) substitute–

(1) Subject to paragraph (12), this regulation applies to a member– (a) until he attains the age of 60; (b) who is in receipt of a relevant pension; and (c) who continues in, or subsequently returns to, NHS employment. (1A) A relevant pension for the purpose of this regulation is a pension payable– (a) in respect of pensionable employment that ceased before 1st April 2008– (i) under any of regulations E2 to E3C; or (ii) in accordance with regulation E6(2)(b); (b) in respect of pensionable employment that ceased on or after 1st April 2008– (i) any of regulations E2 to E3; (ii) in accordance with regulation E3A(2)(d)(ii); or (iii) except where paragraph (c) applies, in accordance with E6(2)(b); or (c) where the member is a special class officer– (i) if regulation E1; or (ii) if regulation R2(3)(b) applies to the member, in accordance with E6(2)(b).

• (3) For paragraph (3) substitute–

(3) If the relevant pension is one referred to in paragraph (1A)(a) or (c)– (a) the member’s pension will be reduced by the appropriate amount; and (b) the appropriate amount is the difference between the member’s previous pay and the aggregate of– (i) the amount of the member’s pension (including any amount by which that pension has been reduced pursuant to an election under regulation E11); and (ii) the amount of the member’s pay from NHS employment for the financial year after the pension becomes payable. (3A) If the relevant pension is one referred to in paragraph (1A)(b), the member’s pension will be reduced in accordance with paragraphs (3B) to (3D) if amount A exceeds the member’s previous pay. (3B) The reduction in that member’s pension shall be equal to the difference between amount A and the member’s previous pay, but shall not exceed amount B. (3C) For the purposes of paragraphs (3A) and (3B), amount A is the aggregate of– (a) the amount of the member’s pay from NHS employment for any financial year after the pension becomes payable; and (b) amount B. (3D) For the purposes of paragraphs (3B) and (3C), amount B is the difference between– (a) the amount of the member’s pension (including any amount by which that pension has been reduced pursuant to an election under regulation E7); and (b) the amount of an actuarially reduced pension.

• (4) In paragraph (11), in the appropriate place in alphabetical order insert–

• “actuarially reduced pension” means such annual amount as the Scottish Ministers determine, after consulting the scheme actuary, to be the amount that would have been payable to the member (regardless of whether the member has reached normal minimum pension age or protected minimum pension age) if the member had become entitled to a pension– calculated in accordance with regulation E5 at the time he became entitled to a pension mentioned in paragraph (1A)(b); and any increases to that amount payable under Part I of the Pensions (Increase) Act 1971 for that period;

• (5) For paragraph (12), substitute–