The Local Government Pension Scheme (Transitional Provisions and Savings) (Scotland) Regulations 2014

Made: 21st August 2014

Laid before the Scottish Parliament: 22nd August 2014

Coming into force: 1st April 2015

In accordance with section 21 of the 2013 Act, they consulted the representatives of such persons as appeared to them likely to be affected by these Regulations.

Citation, extent, commencement and interpretation

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• (1) These Regulations may be cited as the Local Government Pension Scheme (Transitional Provisions and Savings) (Scotland) Regulations 2014.

• (2) These Regulations extend to Scotland.

• (3) These Regulations come into force on 1st April 2015.

• (4) In these Regulations—

• “the 1974 Regulations” means the Local Government Superannuation (Scotland) Regulations 1974[^f00003];

• “the 1974 Scheme” means the occupational pension scheme constituted by the 1974 Regulations;

• “the 1987 Regulations” means the Local Government Superannuation (Scotland) Regulations 1987[^f00004];

• “the 1987 Scheme” means the occupational pension scheme constituted by the 1987 Regulations;

• “the 1998 Regulations” means the Local Government Pension Scheme (Scotland) Regulations 1998[^f00005];

• “the 1998 Transitional Regulations” means the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 1998

• “the 1998 Scheme” means the occupational pension scheme constituted by the 1998 Regulations and the 1998 Transitional Regulations;

• “the 2009 Scheme Transitional Regulations” means the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 2008[^f00007];

• “the 2009 Scheme” means the occupational pension scheme constituted by the Administration Regulations, the Benefits Regulations and the 2009 Scheme Transitional Regulations;

• “the 2014 Regulations” means the Local Government Pension Scheme (Scotland) Regulations 2014[^f00008];

• “the 2015 Scheme” means the occupational pension scheme constituted by these Regulations and the 2014 Regulations;

• “the 2018 Regulations” means the Local Government Pension Scheme (Scotland) Regulations 2018 (S.S.I. 2018/141),

• “the Administration Regulations” means the Local Government Pension Scheme (Administration) (Scotland) Regulations 2008[^f00009];

• “the Benefits Regulations” means the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008[^f00010];

• “certificate of protection” means a certificate issued under regulation 22 of the 1998 Regulations, regulation 43 of the Administration Regulations or regulation 93 of the 2014 Regulations;

• “the Earlier Schemes” means the 1974, the 1987, the 1998 , the 2009 and the 2015 Schemes collectively;

• “the Earlier Regulations” means the regulations by which the Earlier Schemes were constituted;

• “eligible member” has the meaning given in regulation 4A(2);

• “final assumed benefits” means the benefits calculated in accordance with regulation 4K;

• “final guarantee amount” is the amount by which the eligible member’s final assumed benefits are exceeded by their final underpin amount (if at all) in respect of a pension account;

• “final underpin amount” means the amount calculated in accordance with regulation 4L;

• “final underpin date” has the meaning given in regulation 4H(1);

• “provisional assumed benefits” means the benefits calculated in accordance with regulation 4I;

• “provisional underpin amount” means the amount calculated in accordance with regulation 4J;

• “PSP Directions 2022” means the Public Service Pensions (Exercise of Powers, Compensation and Information) Directions 2022;

• “PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022;

• “Public Sector Transfer Club” means the group of occupational pension schemes in the public sector which operates an agreed reciprocal basis for transfer payments;

• “public service pension scheme” has the same meaning as in section 1 of the Pension Schemes Act 1993[^f00011].

• “underpin date” has the meaning given in regulation 4G;

• “underpin period” has the meaning given in regulation 4A(3).

• (5) In these Regulations, where an expression is used in relation to provisions in the 1998 Regulations, the 1998 Transitional Regulations, the Benefits Regulations, the Administration Regulations, the 2009 Scheme Transitional Regulations, or the 2014 Regulations, those expressions are to be construed in accordance with the meaning given to those expressions in the provisions referred to, unless the context indicates otherwise.

• (6) Where these Regulations refer to the PSP Directions 2022, a reference to “scheme manager” in those Directions is to be read as “administering authority”.

• (7) The 1998 Regulations as saved by regulation 3(1), which saves for certain purposes the regulations listed in schedule 1 are to be read as if the amendments set out in the schedule are made.

• (8) Sections 45 to 49 of the Benefits Regulations cease to have effect on 8 April 2019.

Revocation of Regulations

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Except to the extent that these Regulations provide otherwise, the Regulations listed in Schedule 1 are revoked.

Membership before 1st April 2015

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• (1) Notwithstanding the revocations effected by regulation 2, and subject to this regulation, the Regulations listed in Schedule 1 (other than regulation 3(4) of the ... Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 2008[^f00012]) continue to have effect so far as is necessary—

• (a) so that membership accrued in the Earlier Schemes in respect of service before 1st April 2015, the pension rights accrued at that date, and any rights and obligations imposed on any person under those Schemes in relation to service before 1st April 2015, are preserved , with the exception that a member who ceased active membership before 1st December 2006 and who aggregates that earlier membership, not having a continuous break in active membership of public service pension schemes of more than five years, shall have a normal pension age of 65 in relation to that earlier membership; and

• (b) so that benefits are payable in accordance with these Regulations.

• (2) In paragraph (1)(a) the expression “pension rights accrued” includes any right to any pension, lump sum, grant or other benefit due to or in respect of a member.

• (3) A scheme manager responsible under regulation 2(2) of the 2014 Regulations (introductory) for the local administration of pensions and other benefits payable under those Regulations is also responsible for the administration of benefits pursuant to paragraph (1) of this regulation.

• (4) Where a person has been an active member of the 2015 Scheme, and retirement benefits under paragraph (1) are payable to a member in accordance with regulation 11 of these Regulations (retirement benefits), the benefits paid from Earlier Schemes and the 2015 Scheme are, for all purposes, to be regarded as constituting a single pension scheme.

• (5) But a retirement pension and any retirement grant payable to a member under paragraph (4) is subject to actuarial adjustment if , subject to paragraph (12) and to paragraph 2(1) of Schedule 2, it would have been subject to actuarial adjustment under the 2009 Scheme, irrespective of whether retirement pension under the 2015 Scheme payable at the same time is subject to actuarial adjustment.

• (6) Where a member who has not had a disqualifying break aggregates benefits from Earlier Schemes with benefits from the 2015 Scheme, the benefits from the Earlier Schemes other than additional pension under regulation 13 or 14 of the Benefits Regulations are payable as final salary benefits or, in the case of councillor members, career average pay benefits.

• (7) A disqualifying break for the purposes of paragraph (6) is a continuous break in active membership of a public service pension scheme of more than five years.

• (8) Where a person has not been an active member of the 2015 Scheme and has benefits under the Earlier Schemes, or has been an active member of the 2015 Scheme and has benefits under the Earlier Schemes which have not been aggregated with the benefits in the 2015 Scheme, the benefits payable as a consequence of paragraph (1) are payable in accordance with the Earlier Schemes as applied by this regulation.

• (9) Any pensionable pay received or contribution paid by a member on or after 1st April 2015 which relates to work carried out before that date shall be dealt with in accordance with the 2009 Scheme.

• (10) Any guidance issued by the Scheme Actuary in accordance with any provision in the Earlier Regulations is to be treated as actuarial guidance issued by the Scottish Ministers as defined in Schedule 1 to the 2014 Regulations and any reference to guidance issued by the Government Actuary in the Earlier Regulations is to be construed as a reference to actuarial guidance issued by the Scottish Ministers.

• (11) Regulations 64 and 65 of the Administration Regulations (abatement) continue to have effect in relation to pensions in payment deriving from the Earlier Schemes regardless of when payment of those pensions commenced.

• (12) The employer may waive any actuarial reduction in whole or in part, where benefits are payable under regulation 29(5) of the 2014 Regulations.

• (13) A person who is a deferred member of one of the Earlier Schemes whose benefits under those Schemes have not come into payment, is not in local government service in employment from which the benefits arose, and who has attained the age of 55 or over, may elect to receive immediate payment of the benefits, reduced by the amount shown as appropriate in actuarial guidance issued by the Scottish Ministers.

• (14) An election under paragraph (13) must be made by notice in writing to the appropriate administering authority.

• (15) Where a member makes an election under paragraph (13)—

• (a) the benefits become payable immediately,

• (b) for the purposes of calculating benefits payable in accordance with the 1987 Scheme, the retirement pension is not to be reduced under paragraph (13) to less than the rate set out in regulation E3(15) of the 1987 Regulations,

• (c) for the purposes of calculating benefits payable in accordance with the 1998 Scheme, the retirement pension is not to be reduced under paragraph (13) to less than the aggregate of the amounts set out in regulation 35(5)(a) and (b) of the 1998 Regulations,

• (d) for the purposes of regulation 17, the reduction under paragraph (13) is treated as if it was made under regulation E3(14) of the 1987 regulations, regulation 30 of the 1998 Regulations or regulation 30 of the Benefit Regulations, as the case may be, and

• (e) for the purposes of regulation 21(5) of the Benefit Regulations, the reduction under paragraph (13) is treated as if it had been made under regulation 30 of the Benefit Regulations.

• (16) Regulation 150(7) (“appropriate rights” / “pension credit benefits” under the scheme) of the 1998 Regulations has effect with the substitution of the references to age 60 with references to age 55.

• (17) Regulation 95(7) (“appropriate rights” / “pension credit benefits” under the scheme) of the Administration Regulations has effect with the substitution of the references to age 60 with references to age 55.

Statutory underpin

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Membership of the 2015 Scheme

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• (1) A person who is an active member of the 2009 Scheme in an employment (or in the case of a councillor member, office) immediately before 1st April 2015 becomes an active member of the 2015 Scheme on 1st April 2015 in that employment provided the person is eligible for membership of the 2015 Scheme on that date.

• (2) Paragraph (1) does not apply to a person who ceases to be an active member on 31st March 2015 by virtue of regulation 11 of the Administration Regulations (ending of membership) and these Regulations apply to any such person as if that person is not an active member immediately before 1st April 2015.

• (3) Notwithstanding regulation 3(3) of the 2014 Regulations (active membership), a person who is eligible to be an active member of the 2009 Scheme immediately before 1st April 2015 who is not a member of the 2009 Scheme, does not become a member of the 2015 Scheme on 1st April 2015 unless that date is the automatic enrolment date for that member.

• (4) If any person has notified an employer under regulation 11(2) of the Administration Regulations before 1st April 2015 of a wish to leave the 2009 Scheme, but would not (apart from this paragraph) have ceased to be an active member immediately before 1st April 2015—

• (a) paragraph (1) does not apply to that person;

• (b) the person’s active membership ceases on 31st March 2015; and

• (c) these Regulations apply to that person as if that person is not an active member immediately before 1st April 2015.

• (5) A person who was a deferred member of one of the Earlier Schemes whose benefits under those Schemes have not come into payment and who becomes an active member of the 2015 Scheme by virtue of regulation 3(1) of the 2014 Regulations (active membership) without a disqualifying break, may choose, by notice in writing to the appropriate administering authority within 12 months of becoming a member of the 2015 Scheme, to be treated as if he or she had become an active member of the 2015 Scheme by virtue of paragraph (1).

• (6) A disqualifying break for the purposes of paragraph (5) is a continuous break of more than five years in active membership of a public service pension scheme.

• (7) A designation by a body of an employee or class of employees as being eligible for membership of the 2009 Scheme pursuant to regulations 3 (general eligibility for membership), 6 (admission agreements: further provisions), 7 (eligibility for membership of employees of other bodies not listed in Schedule 2) or 9(6) (further restrictions on eligibility: admission agreements with certain NHS bodies) of the Administration Regulations has effect as a designation as being eligible for membership of the 2015 Scheme.

Admission agreements

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• (1) Any admission agreement entered into before 1st April 2015 continues to have effect after 31st March 2015 and employees of admission bodies designated before that date in accordance with an admission agreement as eligible for membership of the Local Government Pension Scheme are from 1st April 2015, subject to regulation 5(2) to (4), members of the 2015 Scheme by virtue of the agreement.

• (2) Any indemnity, bond or guarantee provided in respect of an admission agreement entered into before 1st April 2015 has effect in relation to any liabilities whether incurred before or after that date.

• (3) Any condition imposed before 1st April 2015 by the Scottish Ministers on an approval for the admission of a body to the Earlier Schemes continues to have effect and withdrawal of the approval by the Scottish Ministers where the condition is not met has effect as if approval for admission to the 2015 Scheme had been withdrawn.

Qualifying service for the 2015 Scheme

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• (1) Any period of active membership in the Earlier Schemes which the member has at 31st March 2015 counts as qualifying service in the 2015 Scheme for the purposes of regulation 3(6)(a) and (c) of the 2014 Regulations (active membership).

• (2) Any transfer value payment accepted into the Earlier Schemes counts as a transfer value payment into the 2015 Scheme for the purposes of regulation 3(6)(b), (c) and (d) of the 2014 Regulations (active membership).

• (3) A transfer value payment made under the Earlier Schemes to a qualifying recognised overseas pension scheme counts as qualifying service in the 2015 Scheme for the purpose of regulation 3(6)(g) of the 2014 Regulations (active membership).

• (4) A member of the 2015 Scheme who has a deferred benefit or a pension in payment under the Earlier Schemes is treated as having qualifying service for a period of 2 years for the purposes of regulation 3(6) of the 2014 Regulations (active membership).

• (5) A person who became a member of the 2015 Scheme by virtue of regulation 5(1) of these Regulations (membership of the 2015 Scheme), and for whom a transfer value was credited under the Earlier Regulations, who ceases to be an active member of the 2015 Scheme before achieving qualifying service for a period of two years may elect—

• (a) to have regulation 18 of the 2014 Regulations (rights to return of contributions) deemed to apply to the contributions paid both into the Earlier Schemes and the 2015 Scheme (where the period in respect of which contributions to the Earlier Schemes were paid has been aggregated with membership of the 2015 Scheme); or

• (b) to be a deferred member of the 2015 Scheme notwithstanding regulation 6(1) of the 2014 Regulations (deferred members); or

• (c) if the member has reached the normal retirement age applicable to that member under the 2009 Scheme, to draw retirement pension immediately upon cessation of local government service, notwithstanding regulation 6(1) (deferred members) of the 2014 Regulations.

• (6) An election under paragraphs (5)(a) or (b) must be made in writing to the member’s administering authority within the period of six months beginning with the date on which the active membership ceased and an election under paragraph (5)(c) must be made to that authority within the period of six months beginning with the date of the cessation of local government service, and in default of any election being made the member shall be awarded a deferred benefit in the 2015 Scheme, or an immediate pension, as appropriate.

Pensionable pay

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• (1) For the purposes of regulation 20(1) of the 2014 Regulations (meaning of pensionable pay), no account is to be taken of any supplement paid in recognition of the difference in contribution rates between members of the principal civil service pension scheme and the 2009 or 2015 Schemes.