Legalize / United Kingdom / Statutory-Instrument

The Local Government Superannuation (Scotland) Regulations 1987

Type Statutory-Instrument

Publication 1987-10-19

State In force

Department Queen's Printer of Acts of Parliament

Source legislation.gov.uk

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(e) he was entitled to receive payments in respect of a pension out of a superannuation fund mentioned in paragraph (2)(a), or

(f) he was a person to whom regulation E15, section 6 of the Act of 1953 or section 26 of the Act of 1937 applied.

(5) Where paragraph (2)(e) is the case, paragraph (4) applies—

(a) with the substitution for the date specified in paragraph (11) of the date (being a date later than 30th June 1950) on which he became entitled to participate or was a participant as mentioned in paragraph (2)(a) or (b), or, as the case may be, a period began which was reckonable, or falls to be treated as having been reckonable, as mentioned in paragraph (2)(c), and

(b) with the substitution for the reference in paragraph (4)(b) to the period mentioned in paragraph (2)(c) or (d)(i) of a reference to such a period as is mentioned in sub-paragraph (a).

(6) Where paragraph (2)(f) is the case, paragraph (4) applies with the substitution for the date specified in paragraph (11) of the date (being a date later than 30th June 1950) on which he last became entitled to participate or was a participant as mentioned in paragraph (2)(a) or (b).

(7) If he is a person to whom regulation D1(2) of the 1974 Regulations applied in respect of any service after the end of his war service, he must have repaid to the appropriate administering authority the sum or amount there mentioned.

(8) If he is an employee entitled to participate in the benefits of a superannuation fund maintained under these Regulations, he must not be entitled to reckon more than 45 years' reckonable service, disregarding reckonable service before attaining the age of 60 years beyond a total of 40 years.

(9) If he has become entitled to receive payment in respect of an annual pension out of a superannuation fund maintained under these Regulations (including a pension which is for the time being subject to reduction or suspension under regulation E15), no more than 45 years' service must have been taken into account in calculating the amount of that pension.

(10) Where paragraph (2)(f) applies and the scheme designated under regulation F5(2)(b) is not a scheme specified in Schedule 15, war service is for the purposes of paragraph (1) to be assumed.

(11) The date mentioned in paragraph (4) is the date before 1st July 1950 and after the end of his war service when, as the case may be—

(a) he became entitled to participate or was a participant as mentioned in paragraph (2)(a) or (b), or

(b) the period mentioned in paragraph (2)(c) or (d)(i) began.

Modified application of regulation F3 in certain cases

F4

(1) Regulation F3 applies in accordance with paragraphs (3) to (5) of this regulation in the cases specified in those paragraphs.

(2) In this regulation, unless the context otherwise requires, “service” means service or employment with any employer.

(3) In the case of a person to whom rule 11 of the Superannuation (Local Government and Overseas Employment) Interchange (Scotland) Rules 1969[^f00031] applied otherwise than by virtue of rule 3(3)(c) of those Rules, or to whom rule 6 of the Superannuation (Local Government and Overseas Employment) Interchange (Scotland) Rules 1958[^f00032], rule 3 of the Superannuation (Local Government, Commonwealth and Foreign Service) Interchange Scotland) Rules 1952[^f00033], or rule 3 of the superannuation (Local Government and Colonial Service) (Scotland) Interchange Rules 1949[^f00034] applied—

(a) service reckonable by virtue of the provisions of any of those Rules shall for the purposes of regulation F3(2)(c) be deemed to have been reckonable by him otherwise than by virtue of interchange rules, and

(b) the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

(4) In the case of a person to whom regulation 4 of the Electricity Pension Rights) Regulations 1948[^f00035] applied, or to whom regulation 4 of the Gas (Pension Rights) Regulations 1950[^f00036] applied as mentioned in paragraph (4) of that regulation, and who has re-entered local government employment not more than 12 months after ceasing to hold the employment by virtue of which the relevant regulation applied to him—

(a) any period of service beginning before 1st July 1950—

(i) in respect of which a transfer value has been accepted under interchange rules, or has been accepted or fallen to be treated as if it had been accepted under Part J, or

(ii) which he became entitled to reckon as reckonable service, or as non-contributing or contributing service or a period of contribution for the purposes of the former Regulations or of a local Act scheme,

shall be deemed to be such a period as is mentioned in regulation F3(2)(c), and

(b) the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

(5) In the case of a person—

(a) who after the date specified in regulation F3(11) left local government employment and became entitled to participate in the benefits of another occupational pension scheme, and

(b) who re-entered local government employment not more than 12 months after ceasing to be entitled as mentioned in sub-paragraph (a) and became entitled in that employment to reckon a period at least equal in length to the whole of his service from the date specified in regulation F3(11)—

(i) as reckonable service or qualifying service, or

(ii) s non-contributing or contributing service, or a period of contribution, for the purposes of the former Regulations or of a local Act scheme, or

(iii) a service material for the purposes of regulation H5(8),

the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

Notice of election

F5

(1) Notice of an election under regulation F3 is to be given in writing—

(a) in the case of a person who has, or a deceased employee who before he died had—

(i) become entitled to receive payments in respect of any annual pension out of a superannuation fund maintained under these Regulations (including a pension subject for the time being to reduction or suspension under regulation E15), or

(ii) become entitled to any annual pension under regulation E2(1)(c), to the administering authority maintaining the superannuation fund which is or was liable in respect of the pension of, where there is more than one pension, the first of them, or

(b) in the case of a person in respect of whom a transfer value has been paid after 31st March 1978, under Part J or under Part P of the 1974 Regulations, to the administering authority maintaining the superannuation fund out of which it was paid, or

(2) The person giving notice of an election under regulation F3—

(a) is to give the authority, in writing—

(i) all information in his possession, and

(ii) if the authority notify him in writing that they so require, any further information specified by them that he can reasonably be expected to obtain,

concerning the war service of the person to whom the notice relates and his past membership of any scheme designated under sub-paragraph (b), and

(b) is to designate in the notice the scheme, if any, which he believes complies with regulation F6(3), and—

(i) in that notice, or

(ii) at any time before he receives a notification of a decision or determination that the conditions specified in regulation F3(2) to (11) are satisfied in relation to the person to whom that notice relates by a further notice in writing to the same authority,

elect that regulation F6 shall apply with the substitution, in paragraph (1)(a) or (b) or (12) as the case may be, for “47 per cent” (or for any reduced percentage substituted under paragraph (13)) of any specified lesser percentage, and

(d) whether or not he has so elected, may at any time before he receives such a notification withdraw the notice given under regulation F3.

Reckonable service and benefits

F6

(1) Subject to regulation F5(2)(c) and paragraphs (2) to (16), a person in relation to whom regulation F3 applies is entitled, or as the case may be shall be deemed to have been entitled—

(a) in the case of a person entitled on the relevant date—

(i) to participate in the benefits of a superannuation fund maintained under these Regulations, or

(ii) to a retirement pension,

other than a person to whom regulation P13 of the 1974 Regulations applied, to reckon as reckonable service a period equal to 47 per cent of his war service; or

(b) in the case of a person to whom on the relevant date regulation P13 of the 1974 Regulations applied, to have a period equal to 47 per cent of his war service treated as having been for the purposes of paragraph (4) of that regulation a period during which the whole of his relevant policies were fully maintained; or

(c) in the case of a person who, having become entitled to receive an annual pension under the former Regulations or a local Act scheme, was on the relevant date entitled to receive payments in respect of that pension out of a superannuation fund maintained under these Regulations or the 1974 Regulations, to receive, in respect of the service in respect of which that pension is payable, the additional benefits specified in paragraph (11).

(2) Where regulation F3(2)(f) applies and the scheme designated under regulation F5(2)(b) (“the designated scheme”) is a scheme specified in Schedule 15, paragraph (1) applies only if that scheme complies with paragraph (3).

(3) A scheme complies with this paragraph if—

(a) it is the first public service scheme the war service provisions of which could have become applicable to the person if he had remained a member of it, and

(b) he is, or in the case of a deceased employee was, immediately before he died—

(i) entitled to reckon the employment in which he was subject to the scheme as reckonable service, or

(ii) entitled to a retirement pension in the calculation of which that employment was taken into account as reckonable service.

(4) Where the designated scheme is a scheme specified in Part I of Schedule 15 and complies paragraph (3), this regulation applies with the substitution throughout for references to 47 per cent of references to 63 and two thirds per cent.

(5) Where the designated scheme is a scheme specified in Part II of Schedule 15 and complies with paragraph (3), this regulation applies with the substitution throughout for references to 47 per cent of references to 46 and one half per cent.

(6) Where the designated scheme is not a scheme specified in Schedule 15, paragraph (1) applies only if a transfer value, calculated in accordance with Part V of Schedule 16, is received in respect of the period that could have become reckonable under the war service provisions of that scheme.

(7) Where paragraph (1) applies by virtue of the acceptance of such a transfer value, this regulation applies with the substitution throughout for references to a period equal to 47 per cent of the person’s war service of references to the period that could have become reckonable under the war service provisions of the designated scheme.

(8) Where the person was entitled on the relevant date to a retirement pension—

(a) his entitlement under paragraph (1)(a) or (b), and to any resulting increase in the rate of his retirement pension, shall be taken to have arisen on—

(i) 1st April 1978, or

(ii) the date on which he ceased to hold his employment,

whichever is the later, and

(b) if regulation E3(9) of the 1974 Regulations applied to him before 15th October 1982—

(i) any increase by virtue of paragraph (1)(a) or (b) in the amount of any benefit is not subject to reduction under regulation E3(14), and

(ii) the period that he is entitled by paragraph (1)(a) or (b) to reckon as reckonable service is not to be taken into account in calculating the reduction of any benefit falling to be reduced under regulation E3(14),

and for the purpose of this sub-paragraph any reference to regulation E3(14) shall be taken to include a reference to regulation 4 of the National Insurance (Modification of Local Government Superannuation Schemes) (Scotland) Regulations 1961[^f00037] and regulation 36 of the National Insurance (Modification of Local Government Superannuation Schemes) (Scotland) Regulations 1970[^f00038].

(9) The relevant date for the purposes of paragraphs (1) and (8) is the date of the election under regulation F3, except in the case of a deceased employee where it is the date of his death.

(10) Any period which a person is or is deemed to have been entitled to reckon as reckonable service by virtue of paragraph (1)(a) or (b) shall for the purposes of regulation E3(7) to (10) and of regulation E11(5) and (9) be deemed to be reckonable service before, as the case may be—

(a) 1st April 1972, or

(b) any earlier date on which he became a widower or was judicially separated from his wife or on which his marriage was dissolved.

(11) The additional benefits mentioned in paragraph (1)(c) are—

(a) an additional pension, payable from—

(i) 1st April 1978, or

(ii) the date on which the person became entitled to receive payments in respect of a pension as mentioned in paragraph (1)(c),

whichever is the later date, and

(b) if the person has received or is entitled to receive payment of any lump sum of the same nature as a retiring allowance, an additional lump sum,

calculated in accordance with, paragraph (12).

(12) Subject to regulation F5(2)(c) and paragraphs (13) and (16)—

(a) the annual rate of an additional pension, and

(b) the amount of an additional lump sum,

specified in paragraph (11) is the amount by which the annual rate of the corresponding original pension or, as the case may be, the amount of the corresponding original lump sum would have been increased if a period equal to 47 per cent of the person’s war service had been service, or a period, of a kind which (however described) counted in full in the calculation of the original pension or lump sum.

(13) If a period of part-time service or employment falling to be treated under section 12(5) of the Act of 1937 or under regulation E25 or under regulation P13(4)(b) of the 1974 Regulations as though it were whole-time service or employment for a proportionately reduced period—

(a) began before and ended on or after 1st July 1950, and

(b) was not preceded, without any break, by a period of whole-time service or employment,

paragraph (1)(a) or, as the case may be, paragraph (1)(b) or paragraphs (12) and (16) apply with the substitution for “47 per cent” of the percentage obtained by reducing 47 per cent in the same proportion.

(14) Where—

(a) before the date of notification of a decision or determination that he is entitled to reckon a period as reckonable service by virtue of paragraph (1)(a) or (b), a person in relation to whom regulation F3 applies has been credited with an additional period of service under—

(i) any provision made by an enactment or instrument for compensation for loss of employment or loss or diminution of emoluments or for early retirement in lieu of such compensation, or

(ii) regulation E3(12),

(“the enhancement provision”), and

(b) A + B + C exceeds 40 years, where—

A is the period which would but for this paragraph be reckonable by him as reckonable service by virtue of paragraph (1)(a) or (b),

B is the remainder of his reckonable service, and

C is the additional period of service with which he has been credited under the enhancement provision,

the period which is reckonable by him as reckonable service by virtue of paragraph (1)(a) or (b) is the total of 40—(B + C) and the amount, if any, by which (A + B + C)—40 exceeds C; except that where the instrument referred to in sub-paragraph (a) above is the Local Government Re-organisation (Retirement of Chief Officers) (Scotland) Regulations 1974[^f00039] for the figure “40” wherever it occurs in this sub-paragraph there shall be substituted the figure “45”.

(15) Where a person who was entitled or deemed to be entitled to any additional benefit specified in paragraph (11) dies and there is payable in respect of him out of a superannuation fund maintained under these Regulations any benefit similar to a widow’s pension, children’s pension or death gratuity payable under Part E (“the death benefit”), the person entitled to receive the death benefit is entitled to receive, in respect of the service in respect of which the death benefit is payable, a corresponding additional benefit at any rate or, as the case may be, of any amount which bears the same proportion to the death benefit as the first additional benefit bears to the corresponding original benefit.

(16) The total of an additional benefit under paragraph (11) or (15) and the corresponding original benefit must not exceed the greatest original benefit that could have been paid if—

(a) the period equal to 47 per cent of the person’s war service had been a period of service before he attained the age of 60 years, and

(b) no more than—

(i) 40 years' service before attaining that age, and

(ii) 45 years' service in all,

had been capable of counting in the calculation of the original benefit.

(17) In calculating a period equal to a percentage of a person’s war service for any of the purposes of this regulation, the war service is to be counted as a number of days, arrived at by—

(a) multiplying the number of complete years of war service, if any, by 365, and

(b) counting any part of the war service that does not amount to a number of complete years at its actual length in days,

and any fraction of a day resulting from the calculation is to be excluded from the period.

Revision of certain elections

F7

(1) Subject to paragraph (2), where—

(a) notice of one or more elections under regulation C8(2) or notice under regulation C2B(1) of the 1974 Regulations has been given by or in respect of a person in relation to whom regulation F3 applies, and

(b) the service thereby specified amounts to the whole of his reckonable service before, as the case may be—

(i) 1st April 1972, or

(ii) any earlier date on which he became a widower or was judicially separated from his wife or on which his marriage was dissolved,

he or his executors may elect that the period which he is or is deemed to be entitled to reckon as reckonable service by virtue of regulation F6(1)(a) or (b) is to be treated as having been included in the service specified in the latest notice.

(2) An election under paragraph (1)

(a) may not be made unless notice of election under regulation R3 of the 1974 Regulations was given within the period of 6 months beginning on the relevant date, or in the case of a deceased employee who died during that period within the period of 12 months beginning on the date of his death, and

(b) must, unless they allow a longer period, be made by giving notice in writing to the administering authority concerned within 3 months after the date of notification of a decision by that authority, or as the case may be a determination by the Secretary of State under regulation N8, that the person is or is deemed to be entitled to reckon such a period as is mentioned in paragraph (1).

(3) For the purposes of paragraph (2)(a) the relevant date—

(a) where regulation F3(2)(b) applies, is 5th September 1984 and

(b) in any other case, is 15th October 1982.

PART G — SPECIAL PROVISIONS FOR CERTAIN CASES

Preservation of rights and liabilities of persons to whom the provisions of a local Act scheme applied immediately before 16th May 1974

G1

(1) This regulation applies to a person who—

(a) immediately before 16th May 1974 was a local Act contributor; and

(b) became on 16th May 1974 a pensionable employee under a scheduled body.

(2) Where any provision of the person’s former local Act scheme which was similar to a provision of regulation C2, E2(1)(a) or E22 would have been more beneficial than the provision of such regulation, these Regulations have effect, for the appropriate period, as if the former provision had applied.

(3) The appropriate period for the purposes of this regulation is the period of application specified in the relevant provision of the person’s former local Act scheme, or, if no period is so specified, the period during which he continues in the employment of the scheduled body mentioned in paragraph (1)(b) or of any successor body.

Modification of the Regulations in their application to employees previously subject to a local Act scheme

G2

(1) Where an employee—

(a) was immediately before 16th May 1974 a local Act contributor; and

(b) became on that day a pensionable employee under a scheduled body,

these Regulations shall, so long as he remains in the employment of that body or of any successor body, have effect in relation to him as if—

(i) for any reference to a provision in the former Regulations there were substituted a reference to the corresponding or similar provision in the local Act scheme; and

(ii) for any reference to an expression in column 1 of the following Table (which lists certain expressions used in these Regulations) there were substituted a reference to the expression appearing opposite thereto in column 2.

(1)	(2)
1 The Acts of 1937 to 1953 and the Regulations made thereunder.	The appropriate local Act scheme.
2 The appropriate superannuation fund within the meaning of the Act of 1937.	A superannuation fund maintained under the appropriate local Act scheme.
3 Contributory employee.	Local Act contributor.
4 a Contributing service, and b Non-contributing service, for the purposes of the former Regulations.	Service for the purposes of the appropriate local Act scheme.
5 The former Regulations.	The appropriate local Act scheme.

(2) In this regulation “the appropriate local Act scheme” means the local Act scheme to which an employee mentioned in paragraph (1) was subject immediately before 16th May 1974.

Standard remuneration agreements

G3

A scheduled body may from time to time enter into an agreement with the bodies or persons representative of any class or description of employee of that scheduled body specifying the method which shall for the duration of the agreement determine—

(a) an amount representing the whole of the remuneration, or

(b) such part of his remuneration as is specified in the agreement,

of a member of that class or employee of that description.

PART H — LOCAL GOVERNMENT REORGANISATION ETC.

Definitions

H1

In this Part unless the context otherwise requires—

“Health Service Regulations” means the National Health Service (Superannuation) (Scotland) Regulations 1961 to 1974[^f00040];

“transferred employee” means— any person transferred on or after 16th May 1975 by or under an Order or Regulations made under the Local Government (Scotland) Act 1973[^f00041] which, in accordance with the provisions of section 216 of that Act, contain a provision as to the transfer of that person; any person appointed by a local authority or a river purification board to hold any office or employment before or as from 16th May 1975, who, but for the appointment, would be transferred on that day under the said section 216; or any person who at 16th May 1975 remained in the employment of the same body as immediately before that date but who, in consequence of the Local Government (Scotland) Act 1973, or anything done thereunder or of the 1974 Regulations, became on that day entitled to participate in the benefits of a superannuation fund maintained under those Regulations by a body different from the body which maintained the superannuation fund in the benefits of which he was immediately before 16th May 1975 entitled to participate;

“new employment” means employment to which a person is so transferred or appointed; and

“new employing body” means the body which becomes the employing authority in relation to a person so transferred or appointed;

and in relation to a person appointed as aforesaid his taking up the office or employment to which he is appointed shall for the purposes of this Part be deemed to be a transfer.

Continuity of employment and preservation of status

H2

(1) Subject to paragraph (2)—

(a) any provision of these Regulations has effect, in relation to a transferred employee to whom it applies, as if his new employment and his former employment had been one continuous employment, and

(b) notwithstanding anything in these Regulations, a transferred employee who is transferred after 20th December 1987 and was a pensionable employee immediately before the date on which he is transferred continues in his new employment to be a pensionable employee.

(2) Paragraph (1) does not affect the operation of regulation H3 or of regulations Q1 to Q3.

Discretionary powers

H3

Where—

(a) a transferred employee has continued in the employment of his new employing body, and

(b) immediately before he was transferred (whether before or after the commencement of these Regulations) it was the prevailing practice of the body employing him, in relation to employees of that description, to exercise so as to secure the payment of, or of increased, gratuities, allowances or pensions any discretionary power exercisable by them by virtue of any enactment relating to pensions, and

the new employing body shall exercise the power in a way which is not less beneficial than the general character of that practice.

Contributions of transferred manual workers

H4

A transferred employee who immediately before he was transferred (whether before or after the commencement of these Regulations) was paying contributions at a rate appropriate to a manual worker shall continue to contribute at the like rate so long as he continues to be employed by his new employing body on duties reasonably comparable to those on which he was engaged immediately before he was transferred.

Persons transferred to scheduled bodies under an Order under section 34 of the Local Government (Scotland) Act 1975 or in consequence of section 1 of the Education (Mentally Handicapped Children) (Scotland) Act 1974

H5

(1) This regulation applies to a person—

(a) transferred to the employment of a scheduled body, and

(i) who was by or under an order made under section 34 of the Local Government (Scotland) Act 1975[^f00042], or

(ii) who was in consequence of section 1 of the Education (Mentally Handicapped Children) (Scotland) Act 1974[^f00043],

(b) who immediately before he was so transferred was in an employment in which he was an officer within the meaning of the Health Service Regulations, and

(2) Subject to paragraph (8), a person to whom paragraph (1) applies is entitled to reckon—

(i) as reckonable service, any service which for the purposes of the Health Service Regulations he was entitled to reckon in relation to the employment mentioned in paragraph (1)(b) as, or as a period of, contributing service, and

(ii) as qualifying service, any service which for the purposes of those Regulations he was entitled to reckon in relation to that employment for the purpose of determining whether he was entitled to a benefit under those Regulations, but for no other purpose.

(3) Where, immediately before he was transferred, a person to whom paragraph (1) applies was in the process of making payments which were or were deemed to be payments under Schedule 2 to the Health Service Regulations, he is entitled—

(a) to make the outstanding payments as if they had been instalments of an amount payable under regulation D6 of the 1974 Regulations, and

(b) if he completes the payments in the manner provided in Schedule 7, to have the service in respect of which they were made counted for all the purposes of these Regulations at its full length.

(4) Where, immediately before he was transferred, a person to whom paragraph (1) applies was in the process of making payments in respect of added years under Schedule 8 to the Health Service Regulations, he is entitled—

(a) to make the outstanding payments as if they had been payments of an amount payable under regulation D10 of the 1974 Regulations, and

(b) in respect of the added years for which those payments are made he shall enjoy rights and be subject to liabilities as if those years were added years reckonable under regulation D6 in the employment to which he is so transferred.

(5) For the purposes of paragraph (2) any period of part-time service shall be treated as though it was whole-time service for a proportionately reduced period and, except for the purposes referred to in regulation E27(3), any service which was reckonable under the Health Service Regulations for all purposes (other than for the purpose of determining whether any benefit was payable) as a period of contributing service at half its length shall, subject to paragraph (3), be counted at half its length.

(6) Where, immediately before he was transferred, a person in relation to whom paragraph (1) is satisfied was a person in respect of whom the Secretary of State paid contributions under regulation 46 of the Health Service Regulations (persons subject to non-statutory superannuation schemes and arrangements) or carried out any such scheme or arrangements as are referred to in that regulation, that person shall not be subject to any provisions of these Regulations except those contained in this regulation, and the body to which that person was transferred shall—

(a) where immediately before 16th May 1974 the Secretary of State was under regulation 46 of the Health Service Regulations paying in respect of that person the contributions authorised or required by the relevant scheme to be paid by the employer, pay those contributions, and

(b) deduct from the person’s remuneration the amount of any contribution required by the scheme or under the arrangements to be paid by the employee.

(7) A person to whom sub-paragraph (1)(a) of this regulation applies but who was not, immediately before he was so transferred, an officer within the meaning of the Health Service Regulations and who would otherwise have become a pensionable employee in terms of regulation B2 of the 1974 Regulations shall not become a pensionable employee in terms of regulation B1 without his agreement so long as he is employed without a disqualifying break of service by a scheduled body on duties reasonably comparable to those on which he was engaged immediately before he was so transferred.

(8) In relation to a person who gave notice under regulation N12(3)(e) of the 1974 Regulations that he did not wish to avail himself of the benefits provided under those Regulations, these Regulations have effect as if they conferred on him rights corresponding with those which he would have enjoyed if he had remained subject to the provisions of the Health Service Regulations, and continue so to apply so long as he is employed without a disqualifying break of service by a scheduled body on duties reasonably comparable to those on which he was engaged immediately before he was transferred.

(a) Notwithstanding anything in paragraph (3) and subject to paragraph (6), regulations D3, D11, E5, E6, E15, and E33 shall have effect in relation to a pensionable employee who had given notice under regulation N12(3)(e) of the 1974 Regulations as if—

(i) any reference to reckonable service or qualifying service included a reference to service reckonable for the purpose of determining whether any benefit is payable to or in respect of him;

(ii) any reference to a retirement pension included a reference to a pension payable to him in terms of paragraph (8);

(iii) any reference to regulation E2(1)(c) included a reference to any right conferred upon him by virtue of paragraph (8) corresponding to regulation 10(1)(a)(iv) of the Health Service Regulations; and

(iv) in regulation D3(3)(b) the reference to the appropriate superannuation fund within the meaning of regulation C12 included a reference to the employing authority under the Health Service Regulations.

(b) In the case where the conditions of entitlement mentioned in regulation E5 or E6, as modified by sub-paragraph (a)(i), are satisfied, the widow’s pension payable in terms of paragraph (8) shall be payable at an annual rate of not less than the amount determined by multiplying one one hundred and sixtieth of the pensionable remuneration of her deceased husband by the length of years of the whole period of his service in contracted-out employment.

(10)

(a) Notwithstanding anything in paragraph (8), in the case of a pensionable employee who has given notice under regulation N12(3)(e) of the 1974 Regulations a refund of contributions shall not be payable—

(i) if his period of reckonable service and qualifying service after 5th April 1975 is not less than 5 years, in respect of any period of reckonable service and qualifying service after that date; or

(ii) if his period of reckonable service and qualifying service commenced before 6th April 1975 and is not less than 5 years, in respect of any period of reckonable service and qualifying service after 5th April 1975 of less than 5 years unless a payment is being or has been made in respect of the period of reckonable service and qualifying service before 6th April 1975; or

(iii) if he is entitled to any right conferred upon him by virtue of regulation N12(3)(e) of the 1974 Regulations corresponding to regulation 10(1)(a)(iv) of the Health Service Regulations,

and any reference in this paragraph to reckonable service and qualifying service shall include any service reckonable for the purpose of determining whether any benefit is payable to or in respect of him.

(b) Notwithstanding anything in paragraph (3)(e) of regulation N12 of the 1974 Regulations, a pensionable employee who has given notice in terms of that paragraph shall not surrender such part of his pension as would result in that pension being reduced to—

(i) an annual rate less than an annual rate determined by multiplying one eightieth of his pensionable remuneration by the length in years of the whole period of his service in contracted-out employment; and

(ii) if he has a guaranteed minimum under section 35 of the Pensions Act in relation to that pension, but for the provisions of regulation E1, less than his guaranteed minimum pension.

Gratuities etc. granted by former local authorities

H6

Notwithstanding the revocation of the 1974 Regulations, an authority who became responsible under regulation N6(1)(a) of those Regulations for the continued payment of a gratuity or allowance remain so responsible as if the 1974 Regulations had not been revoked.

Policy schemes

H7

Any agreement or trust deed which immediately before 21st December 1987 had effect as mentioned in regulation N7 of the 1974 Regulations continues so to have effect and any policy of insurance held by a scheduled body immediately before that date for the purposes mentioned in that regulation shall continue to be held by them for those purposes.

Overseas employment

H8

(1) This regulation applies—

(a) to a person who as at 31st March 1972 was subject to the Superannuation (Local Government and Overseas Employment) Interchange (Scotland) Rules 1969[^f00044] (in this regulation referred to as the “Rules of 1969”); or

(b) to a person who had ceased to be a contributory employee or local Act contributor before 1st April 1972 and had become so subject before the appointed day;

and shall apply to such a person who left his overseas employment and entered other overseas employment, whether or not he gave notice of the change of employment to the first fund authority or there was a break of more than 12 months between the overseas employments and who had not—

(i) again become a contributory employee or a local Act contributor, or

(ii) received any benefit under rule 6 of the Rules of 1969.

(2) Subject to paragraph (3), where a person, to whom this regulation applies, becomes a pensionable employee then, notwithstanding that there may have been a break of more than 12 months between his ceasing his overseas employment and becoming a pensionable employee, he shall be entitled—

(a) to reckon as reckonable service—

(i) any service, employment or period which immediately before he ceased to be a contributory employee in the employment of a local authority or other body he was, or for the purposes of the Regulations is treated as having been, entitled under or by virtue of the former Regulations or any other enactment to reckon as or aggregate with service he was entitled to reckon as either contributing service in relation to his employment under that body or non-contributing service for the purposes of the former Regulations, or

(ii) any service, employment or period which he would have been entitled to reckon as service (or a period of contribution) for the purpose of calculating a benefit payable to him under a local Act scheme if at the date on which he ceased to be a local Act contributor he had been entitled to a benefit payable under that scheme;

(b) to reckon as qualifying service—

(i) any service, employment or period which immediately before he so ceased he was entitled under or by virtue of the former Regulations or any other enactment to reckon either for the purpose of determining whether he was entitled to receive a benefit under the former Regulations or, as the case may be, for the purpose of determining whether he was entitled to a benefit under a local Act scheme, but for no other purpose, and

(ii) any period of overseas employment;

(c) where he gives notice in writing to the new fund authority, to aggregate the service he is entitled to reckon as reckonable or qualifying service by virtue of this regulation with any other service he is entitled to reckon as reckonable or qualifying service respectively by reason of the employment in respect of which he became a pensionable employee for the first time; and

(d) for the purpose of these Regulations to be regarded as if he had ceased to be a contributory employee or a local Act contributor immediately before 16th May 1974 and became a pensionable employee on that day but, for the purpose of observing any time limit related to the appointed day of the 1974 Regulations, the appointed day shall be taken to be the date on which he became a pensionable employee for the first time:

Provided that nothing in this paragraph shall entitle any person to reckon as reckonable service any period between the date he ceased to be a contributory employee or a local Act contributor and became for the first time a pensionable employee, or to reckon as qualifying service any period between those dates other than service in overseas employment.

(3) Paragraph (2) shall not apply to a person who has received a return of contributions from the first fund authority on or after ceasing to hold his last overseas employment unless he pays to the new fund authority an amount equal to the returned contributions (other than voluntary contributions) and compound interest thereon at a rate of three per cent per annum with half-yearly rests for a period beginning either with the date 12 months after the date on which he left overseas employment or, where this is later, the date on which he received the return of contributions and ending on the date on which he pays the said amount.

(4) Where a person gives notice in terms of paragraph (2)(c) and pays any amount required by paragraph (3) and the first fund authority and the new fund authority are not the same authority, then the first fund authority shall pay to the new fund authority a transfer value in accordance with the provisions of regulation Q2(1).

(5) Where a person to whom this regulation applies does not become a pensionable employee, then where he is, or but for the revocation of the Rules of 1969 would be, entitled to a benefit under rule 6 of the Rules of 1969 he shall, notwithstanding the revocation of the Rules of 1969, continue to be entitled to that benefit and the said benefit shall become payable without any requirement that he ceases to be in his overseas employment, but nothing in this paragraph shall entitle a person to reckon any service as reckonable service under regulation D1.

(6) Where a person to whom this regulation applies—

(a) does not become a pensionable employee,

(b) would not under the former Regulations or appropriate local Act scheme and the Rules of 1969 have had an entitlement to a benefit (other than a refund of contributions),

(c) was when he ceased to be a contributory employee or a local Act contributor entitled under the former Regulations to reckon not less than 5 years' contributing service, or not less than 5 years' service (or a period of not less than 5 years' contributions) under a local Act scheme,

(d) has attained the age of 60 years, or any lesser age at which under the conditions of service applicable to him in his overseas employment he is required by reason of age to retire from that employment,

(e) gives notice to the first fund authority, and

(f) has not received a refund of contributions, or has received a refund of contributions and either previously repaid such a refund, or within one month of giving notice under this regulation makes payment to the first fund authority of an amount equal to the refunded contributions (other than voluntary contributions) together with a like sum of interest as he would have had to pay had the repayment of refunded contributions been made under paragraph (3) of this regulation,

he shall be entitled to receive a benefit (not being a refund of contributions) calculated on the basis of the former Regulations or the appropriate local Act scheme, and the Rules of 1969 as they applied to that person at the time he ceased to be a contributory employee or a local Act contributor, but nothing in this paragraph shall entitle a person to reckon any service as reckonable service under regulation D1.

(7) This regulation shall apply to any person to whom rule 16 of the Rules of 1969 applied as if, in any paragraph other than this paragraph, there were substituted for any reference to the Rules of 1969 a reference to the Superannuation (Local Government and Overseas Employment) Interchange (Scotland) Rules 1958[^f00045] and for any reference to rule 6 of the Rules of 1969 a reference to rule 5 of the said Rules of 1958.

(8) Notwithstanding regulation J2(5)(d) or Part Q, where before 5th September 1984 there was paid a transfer value under Part P or Part Q of the 1974 Regulations in respect of a person to whom this regulation applies and that transfer value took no account of any additional reckonable service to which that person is entitled by virtue of this regulation, an additional transfer value shall be paid in respect of that person as regards the said additional reckonable service calculated in accordance with the provisions of Part J or Part Q as the case may be.

(9) In this regulation—

“appointed day” means 16th May 1974;

“contributing service” and “non contributing service” mean the service which a person to whom this regulation applies was entitled to reckon as contributing or non contributing service within the meaning of the Act of 1937;

“first fund authority” means the successor to the local authority administering the superannuation fund to which the person last contributed before entering overseas employment;

“new fund authority” means the local authority administering the superannuation fund to which the person contributes after first becoming a pensionable employee;

“overseas employment” means employment in the service of— the central or local government of an overseas country or a government constituted for two or more overseas countries or any Authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more overseas countries; a university or college in an overseas country; a public institution or other organisation engaged in health, welfare, research or educational services in an overseas country; an organisation receiving grants from Her Majesty’s Government in connection with functions overseas; the United Nations Organisation or any of its specialised agencies or any other inter-governmental organisation to which Her Majesty’s Government may be party; or the Overseas Development Administration or any predecessor body for service overseas, being employment which is either pensionable employment within the meaning of section 17(1) of the Superannuation (Miscellaneous Provisions) Act 1948[^f00046] or employment undertaken with the approval of the first fund authority;

“voluntary contributions” means payments made voluntarily by a contributory employee for the purpose of securing benefits for his widow, children or other dependants and payments (other than payments made in respect of a liability which has been wholly discharged) of any of the following categories— additional contributory payments of the kind referred to in section 2(3) and (4) of the Act of 1953; any similar payments made under a local Act scheme as a condition of reckoning any period of employment as service or as a period of contribution for the purposes of the scheme or where the local Act scheme provides for the reckoning of non-contributing service for the purposes of the scheme; any payments made for the purpose of increasing the length at which any period of service or of contribution would be reckonable for the purpose of calculating a benefit under a local Act scheme; any payments made in respect of added years.

PART J — INTERCHANGE ETC.

Interpretation

J1

In this Part, unless the context otherwise requires—

“Communities' scheme” means the pension scheme provided for officials and other servants of the Communities in accordance with regulations adopted by the Council of the European Communities;

“Community institution” includes a body treated as one of the Community institutions for the purposes of the Communities scheme;

“fund authority” means— in relation to a person who became, or ceased to be, employed in his local government employment before 16th May 1974, the local authority within the meaning of the Act of 1937 maintaining the superannuation fund to which the person became a contributor after he ceased to be employed in non-local government employment or, as the case may be, was last a contributor before he became employed in approved non-local government employment; and in relation to a person who became, or ceased to be, employed in his local government employment on or after 16th May 1974, the scheduled body maintaining the superannuation fund to which the person became a contributor after he ceased to be employed in non-local government employment or, as the case may be, was last a contributor before he became employed in approved non-local government employment;

“local Act authority” and “local Act scheme” have— in relation to any time before 25th March 1972, the same meanings as in the Act of 1937, and in relation to any time on or after 25th March 1972, the same meanings as in section 8 of the Act of 1972;

“local government employer”, in relation to a person who is, or has been, employed in local government employment, means the body which is, or is treated as being, the employing authority or former employing authority for the purposes of the Acts of 1937 to 1953, the local Act scheme or these Regulations, as the case may be;

“pension” does not include an allowance or gratuity; and

“service” means service or employment with any employer.

Outwards transfers

J2

(1) Subject to paragraphs (5) and (6), a transfer value shall be paid in relation to a person who has ceased to be employed in local government employment and has become employed in approved non-local government employment if the conditions in paragraph (3) are satisfied.

(2) This regulation applies even if the cessation of the local government employment, or the commencement of the approved non-local government employment, or both the cessation and the commencement, occurred before 21st December 1987.

(3) The conditions are that—

(a) he has made a written request to his fund authority for the transfer value to be paid; and

(b) subject to paragraph (4), the request was made not later than 6 months after 21st December 1987 or, if later, 6 months after the date on which he became employed in his approved non-local government employment; and

(d) in the case of a person who ceased to be employed in his local government employment before 31st March 1972, his local government employer has consented to the payment of the transfer value; and

(e) in the case of a person who received a return of contributions in relation to his local government employment (other than a person falling within paragraph (6)), he has within 3 months of making his request under sub-paragraph (a) paid his fund authority for the credit of their superannuation fund—

(i) a sum equal to the contributions returned to him (together with any interest which he was paid),

(ii) a sum equal to any deduction made on account of tax under section 378(2) of the Income Tax Act 1952[^f00047] or section 209(2) of the Income and Corporation Taxes Act 1970[^f00048]; and

(iii) compound interest on both those sums calculated in accordance with regulation J7 for the period beginning with the date on which he received the return of contributions and ending on the date of his request under sub-paragraph (a) (but no interest is to be paid if that period is less than 6 months).

(4) The local government employer may in any particular case extend the period mentioned in paragraph (3)(b).

(5) A transfer value shall not be paid in relation to a person—

(a) who has received any benefit (other than a return of contributions) under the Acts of 1937 to 1953 and the Regulations made thereunder, the former Regulations, any local Act scheme, the 1974 Regulations or these Regulations in respect of his local government employment, or

(b) who ceased to be employed in local government employment on or after 6th April 1978 having reached state pensionable age, unless his accrued pension for the purposes of Schedule 16 relates solely to service after he reached state pensionable age, or

(c) who ceased to be employed in local government employment on or after 6th April 1978 and who has become employed in approved non-local government employment (other than employment with a Community institution) which is not contracted-out employment for the purposes of the Pensions Act, unless—

(i) the person is a married woman or widow who, by virtue of an election made or treated as made for the purposes of Regulations under section 3 of the Pensions Act, is either liable to pay primary Class 1 contributions or Class 2 contributions (within the meaning of the Social Security Act 1975[^f00049] at a reduced rate prescribed by such Regulations or is exempt from liability to pay Class 2 contributions; or

(ii) the person’s reckonable service and qualifying service amounts in aggregate to less than 5 years; or

(d) in respect of whom a transfer value has been paid by the fund authority or a predecessor of that authority since he ceased to be employed in his local government employment; or

(e) who, on becoming employed in approved non-local government employment, became entitled, without any condition as to receipt of a transfer value, to reckon service in his local government employment in relation to his approved non-local government employment; or

(f) if a direction has been made in relation to his service in his local government employment under regulation C12(5) or M1 or any corresponding provision of earlier legislation or a local Act scheme.

(6) In relation to a person who ceased to be employed in local government employment on or after 6th April 1978 and has received a return of contributions in relation to that employment, a transfer value may only be paid in relation to service in respect of which he is entitled to preserved benefits.

Additional transfer value for certain persons transferring to public service pension schemes

J3

(1) Notwithstanding regulation J2(5)(d), where after 31st March 1978 and before 5th September 1984 there has been paid in respect of a person to whom regulation F3 applies a transfer value in the calculation of which the period that he became entitled by regulation F6(1)(a) or (b) to reckon as reckonable service was not taken into account, an additional transfer value shall be paid in respect of that period.

(2) Notwithstanding regulation J2(5)(d), where a transfer value has been paid before 1st April 1978 in respect of a person in relation to whom one of the conditions in regulation F3(2)(a) to (e) is satisfied and the conditions in regulation F3(4) to (9) were satisfied at the time of payment, an additional transfer value shall be paid if the conditions in paragraph (3) are satisfied.

(3) The conditions are that—

(a) the scheme managers of a public service scheme not specified in Schedule 15—

(i) have made a written request to the fund authority for the additional transfer value to be paid, and

(ii) have given them particulars of the service (being such whole-time service as is described in regulation F2(1)) to which it is to relate, and the rate or amount, as the case may be, to be used in ascertaining C of the formula set out in Part V of Schedule 16, and

(b) on payment of the additional transfer value the service to which it relates will be reckonable as service in respect of which benefits are payable under the war service provisions of the scheme.

Amount of transfer value

J4

(1) The amount of any transfer value payable under regulation J2 and of any additional transfer value payable under regulation J3(1) shall be calculated in accordance with the provisions of Parts I to III of Schedule 16.

(2) The amount of any additional transfer value payable under regulation J3(2) shall be calculated in accordance with Part V of Schedule 16.

(3) The transfer value or additional transfer value shall be paid to the scheme managers by the fund authority out of their superannuation fund.

(4) The fund authority shall provide the scheme managers and the person to whom the transfer value or additional transfer value relates with a written notice showing how it was calculated.

(5) A notice provided to a person under paragraph (4) shall include a statement of the kind required by regulation N7(2)(c).

Termination of right to payment out of fund authority’s superannuation fund

J5

Notwithstanding anything in the Acts of 1937 to 1953 and the Regulations made thereunder, the former Regulations, any local Act scheme, the 1974 Regulations or any other provision of these Regulations (excepting regulations H8(8), J3 and J6), where a transfer value is to be or has been paid under regulation J2 no other payment or transfer of assets shall, subject to regulations H8(8), J3 and J6, be made out of the superannuation fund on account of the service to which the transfer value relates.

Rights where a person transfers to the Communities' scheme and leaves without a right to either immediate or prospective pension

J6

(1) Where a person—

(a) became employed by a Community institution and became a participant in the Communities' scheme after having been employed in local government employment, and

(b) the scheme managers of the Communities' scheme were paid a transfer value under regulation 12 in relation to his previous service in local government employment, and

(c) he ceased to be employed in his employment with the Community institution without the right to an immediate or prospective pension, and

(d) his fund authority has been paid for the credit of their superannuation fund—

(i) a sum equal to the amount of the transfer value which the scheme managers received, and

(ii) compound interest on that sum calculated in accordance with regulation J7 for the period beginning with the date on which the transfer value was received by the scheme managers and ending on the date on which the fund authority was paid the sum required by (i) above (but no interest is to be paid if that period is less than 6 months),

the person and those claiming through him shall be entitled to the rights specified in paragraphs (2) and (3) below and nothing in regulation J5 shall apply to any such rights unless a transfer value under regulation J4 is subsequently paid.

(2) Where the person ceased to be employed in his local government employment before 31st March 1972, he and those claiming through him shall have the same rights (other than to a refund of contributions) as they would have had by virtue of the Acts of 1937 to 1953 and the Regulations made thereunder, the former Regulations, any local Act scheme and these Regulations (so far as applicable) if—

(a) he had reached the age of 65 by the termination of his local government employment, and

(b) he had been able to reckon 10 years' service, and

(3) Where the person ceased to be employed in his local government employment on or after 31st March 1972, he and those claiming through him shall be entitled to the like benefits other than to a return of contributions) as those which—

(a) if, on so ceasing, he had became entitled to benefits under Part E other than a pension under regulation E1 or E2(2)(a) or a local Act scheme, would have become payable to or in respect of him under that Part or that scheme in respect of service for which the transfer value mentioned in paragraph (1) above was paid if this Part had not applied to him, or

(b) if, on so ceasing, he had not become so entitled, would have become payable to or in respect of him under Part E or a local Act scheme in respect of such service as aforesaid if, immediately before he ceased that employment, he had been entitled to reckon an aggregate of 5 years' reckonable service and qualifying service or 5 years' service for the purpose of determining whether he was entitled to a benefit under a local Act scheme and if this Part had not applied to him,

and such benefits shall be deemed to be benefits under regulation E2(1)(c).

(4) This regulation shall not confer any right to the payment of any benefit for any period ending on or before—

(a) in relation to a person who ceased to be employed in his local government employment before 31st March 1972, the date on which he ceased to be employed in the service of the Community institution mentioned in paragraph (1) above or, where this is later, the earliest date at which, if he had remained in his local government employment without any break of service and become a pensionable employee on 16th May 1974, he would have become entitled, on ceasing to be employed, to a retirement pension by virtue of sub-paragraph (a) or, as the case may be, (b)(ii) of regulation E2(1);and

(b) in relation to a person who ceased to be employed in his local government employment on or after 31st March 1972, the date on which he ceased to be employed in the service of the Community institution mentioned in paragraph (1) above or, where this is later, the date on which the benefits to which he became entitled on ceasing to be employed in his local government employment or, as the case may be, to which he would have become so entitled if, immediately before he ceased to be employed in that employment, he had been entitled to reckon an aggregate of 5 years' reckonable service and qualifying service would, if this Part had not applied to him, have become payable to him under Part E.

(5) For the purposes of this regulation references to those claiming through a person shall be construed as references to his widow, dependants, children and executors so far as is appropriate in his particular case.

Compound interest on certain sums

J7

Compound interest under regulations J2(3)(e)(iii) and J6(1)(d)(ii) and Parts I paragraph 1(2)) and V of Schedule 16 is to be calculated—

(a) at the rate of 6 per cent with yearly rests for each complete period of a year ending before 1st April 1977 (and any residual period of less than a year is to be ignored), and

(b) at the rate of 21 per cent with 3-monthly rests for each complete period of 3 months beginning after 31st March 1977 (and any residual period of less than 3 months is to be ignored).

Inward transfers

J8

(1) Subject to paragraphs (5) and (6), a transfer value offered to a person’s fund authority by the scheme managers of his previous non-local government scheme shall be accepted by them and shall, together with the amount of any limited revaluation premium under section 45 of the Pensions Act repaid to the fund authority by the Secretary of State, be credited to their superannuation fund if the conditions specified in paragraph (3) are satisfied.

(2) This regulation applies even if the cessation of the non-local government employment, or the commencement of the local government employment, or both the cessation and commencement, occurred before 21st December 1987.

(3) The conditions are that—

(a) except where the transfer value is offered as mentioned in paragraph (5)(a) and is in respect of such a period as is mentioned in paragraph (5)(b), or relates only to service reckonable under the war service provisions of a public service scheme, he has made a written request to his fund authority for the transfer value to be accepted, and

(b) subject to paragraph (4), the request was made not later than 6 months after 21st December 1987 or, if later, 6 months after the date on which he became employed in his local government employment, and

(d) his local government employer has consented to the transfer value being accepted, except in the case of a person who became employed in his local government employment on or after 6th April 1978 and who ceased to be employed in his non-local government employment on or after 31st March 1972, and

(e) in the case of a person who became employed in his local government employment before 31st March 1972, he was employed in local government employment on that date.

(4) The local government employer may in any particular case extend the period mentioned in paragraph (3)(b).

(5) A transfer value which—

(a) is offered by the scheme managers of a public service scheme in relation to a person in relation to whom a transfer value was accepted and received before 1st April 1978, and

(b) is in respect of a period which could, if he had not ceased to be employed in his non-local government employment, have become reckonable under the war service provisions of the scheme,

shall not be accepted unless it is one calculated in accordance with Part V of Schedule 16.

(6) A transfer value under paragraph (1) shall not be accepted in relation to a person if—

(a) his non-local government employment was contracted-out employment for the purposes of the Pensions Act, and

(b) his non-local government scheme was not a statutory scheme or a scheme which is to be treated for the purposes of Schedule 17 as being a statutory scheme, and

(i) the annual equivalent of his guaranteed minimum in respect of service to which the transfer value relates, and

(ii) where equivalent pension benefits were, but would not remain, assured by his non-local government scheme, the annual rate of those benefits.

(7) A person’s resultant pension shall be calculated in accordance with the formula—

$$R=N80×S,$ where— R is the annual amount of the resultant pension, N is the reckonable service (expressed in years and fractions of a year) which would, apart from paragraph (5), be credited to him under regulation J9(1)(a) if the transfer value were to be accepted by the fund authority, and S is the annual rate of his remuneration on becoming employed in his local government employment (if he is paid weekly, the annual rate shall be calculated by multiplying the weekly rate by 52.18).$

(8) A person’s guaranteed minimum shall be calculated in accordance with section 35 of the Pensions Act and the annual equivalent shall be calculated by multiplying the guaranteed minimum by 52.18.

Right to reckon service

J9

(1) Where a transfer value (other than one to which regulation J8(5) applies) has been accepted in relation to a person under regulation J8—

(a) he shall, subject to regulation J10, be entitled to reckon as reckonable service a period calculated in accordance with Schedule 17 for all purposes of these Regulations except that of determining whether there is any entitlement to benefit (other than any benefit under regulation E2(2)), and

(b) he shall be entitled to reckon as qualifying service any service to which the transfer value relates which would not otherwise be qualifying service.

(2) A period reckonable under paragraph (1)(a) shall be treated as reckonable service after 31st March 1972 for the purposes of making any calculation under these Regulations.

(3) Service reckonable under paragraph (1)(b) shall count at its actual length.

(4) The fund authority shall provide the person with a written notice stating the periods of service which he is entitled to reckon under paragraph (1)(a) and (b) and, in the case of a person who became employed in his local government employment before 1st April 1980, whether or not his retirement pension is subject to reduction under regulation J12.

(5) A notice under paragraph (4) shall contain a statement of the kind by regulation N7(2)(c).

Adjustment to crediting of reckonable service and qualifying service on payment of refund of contributions

J10

Where a person on ceasing local government employment has received a return of contributions in relation to part only of the service which, but for the provisions of this regulation, he would be entitled to reckon as reckonable service under regulation J9, that reckonable service which he would otherwise be so entitled to reckon shall be reduced by X years, where X is a period expressed in years and fractions of a year in accordance with the following formula—

$$X=AB×C,$ where— A is the length of service in the non-local government scheme which reckoned for the purpose of determining whether he was entitled to a benefit thereunder in respect of which contributions were returned by the fund authority on his ceasing local government employment; B is the service which he is entitled to reckon under regulation 19(1)(b); and C is the period he would, but for the provisions of this regulation, be entitled to reckon as reckonable service under regulation J9(1)(a).$

Computation of contributions

J11

(1) Where a person to whom regulation 18 applies ceases to be employed in his local government employment in circumstances in which there is payable to him under regulation C12(4) an amount by way of return of contributions (with or without interest), then, in calculating that amount, the amount of the contributions paid by him shall be deemed to be increased by the aggregate of the following two sums:—

(i) if his non-local government scheme contains provision for return of contributions, such sum as would have been payable by way of a return of contributions, including interest (if any), under his non-local government scheme at the date of payment of the transfer value received under regulation J8(1) had that transfer value not been paid, and

(ii) such sum as was paid by him by way of superannuation contributions during the period which has become reckonable as reckonable service under regulation J9 which has not been taken into account under sub-paragraph (i).

(2) under regulation C12(4) the amount payable by way of return of contributions is a sum equal to the amount of a person’s contributions with compound interest thereon, compound interest shall also be payable on the amount by which those contributions are increased under paragraph (1) above, calculated in the manner described in regulation C12(4)(b) in respect of the period from the date of payment of the transfer value.

(3) Notwithstanding anything previously contained in this regulation, the sum by which contributions are increased under paragraph (1) above shall not include any sum in respect of contributions which were returned to and retained by the person who had paid them.

National Insurance modification

J12

(1) The retirement pension of a person to whom regulation J9 applies shall be reduced in accordance with paragraph (2) where—

(a) he became employed in his local government employment before 1st April 1980, and

(b) on becoming employed in his local government employment he did not enjoy unmodified status for the purposes of Part F of the 1974 Regulations, and

(c) his retirement pension is calculated by reference to reckonable service which includes the period which he is entitled to reckon under regulation J9(1)(a).

(2) Regulation F7 of the 1974 Regulations shall be taken to have applied in relation to the period which he is entitled to reckon under regulation 19(1)(a) as if—

(a) during that period he had been a person within Case B of Part F of the 1974 Regulations, and

(b) that period were service after 31st August 1947.

(3) Where a person to whom paragraph (1)(a) applies was in his non-local government employment subject to a statutory scheme under which he was subject to a reduction of pension in connection with graduated retirement benefit under section 36 of the Insurance Act, any retirement pension payable to him at the termination of his local government employment shall be reduced by the amount by which his pension under that scheme would have been reduced in connection as aforesaid.

(4) The reduction shall take effect on the date when a retirement pension becomes payable unless the person has not then reached pensionable age within the meaning of the Social Security Act 1975, in which case the reduction shall take effect on the date on which he reaches that age.

Certain persons who become subject to certain other superannuation schemes

J13

(1) Subject to the conditions in paragraph (2) being satisfied, this regulation applies to a person—

(a) who either—

(i) is in the employment of a passenger transport executive by virtue of which he is a pensionable employee; or

(ii) is in the employment of a body (other than a scheduled body) mentioned in regulation B5 by virtue of which he is deemed to be a pensionable employee; or

(iii) is in the employment of a body mentioned in paragraph (8) of regulation B6 and by virtue of an agreement made, or continued in force as if made, under that regulation is in that employment entitled to participate in the benefits of a superannuation fund maintained under Part P; and

(b) for whose superannuation in that employment that body can make other provision under an approved non-local government scheme.

(2) The conditions referred to in paragraph (1) are that—

(a) the person shall notify the body in whose employment he is as mentioned in paragraph (1)(a) and the appropriate administering authority in writing that he desires this regulation to apply to him; and

(b) that body and that authority shall consent to the application to him of this regulation.

(3) A person to whom this regulation applies—

(a) shall not, on and after the date on which he becomes subject in the employment mentioned in paragraph (1)(a) to an approved non-local government scheme, in that employment be liable to contribute to the appropriate superannuation fund; and

(b) shall be treated for the purposes of these Regulations (other than regulation C12 and, in the case of a person to whom regulation J14 applies, regulation J2) as if he had ceased to hold that employment on the day immediately before that date.

(4) In this regulation, for the purpose of giving on or after 21st December 1987 a notification under paragraph (2), “approved non-local government scheme” means such a scheme which is a contracted-out scheme within the meaning of the Pensions Act.

Transfer of rights of persons to whom regulation J13 applies

J14

(1) Where—

(a) regulation J13 applies to a person; and

(b) on the date on which he becomes subject to the approved non-local government scheme he has not reached pensionable age within the meaning of the Social Security Act 1975[^f00050]; and

(c) he gives written notice to the appropriate administering authority that he wishes to transfer his rights under these Regulations to the approved non-local government scheme; and

(d) both the appropriate administering authority and the body by whom he is employed have given their consent,

the appropriate administering authority shall, subject to paragraphs (3), (4) and (5), pay to the scheme managers of the approved non-local government scheme out of the superannuation fund a transfer value calculated in accordance with Schedule 16.

(2) The appropriate administering authority shall not give their consent under paragraph (1)(d) unless they are satisfied that the person transferring his rights will acquire rights under the approved non-local government scheme at least equivalent to those which he would have obtained if a transfer value had been paid to the scheme managers under regulation J2 or J3.

(3) If—

(a) the number of persons transferring their rights under paragraph (1) from a particular superannuation fund to the same or a different approved non-local government scheme as part of the same transfer scheme is more than 9 but less than 100; and

(b) the superannuation fund’s assets immediately before any transfer takes place are not adequate, or are more than adequate, to meet the accrued actuarial liabilities of the fund at that time,

the total payable under paragraph (1) (or, as the case may be, the respective totals) shall be adjusted by an actuary appointed by the administering authority to the extent he considers appropriate in the circumstances, subject to the agreement of that authority and the scheme managers.

(4) If the parties are unable to agree on the adjustment to be made under paragraph (3), the adjustment (if any) to be made shall be decided by an actuary appointed by the Secretary of State.

(5) If the number of persons transferring their rights under paragraph (1) from a particular superannuation fund to the same or a different approved non-local government scheme as part of the same transfer scheme is 100 or more—

(a) no payment shall be made under that paragraph; and

(b) the superannuation fund shall be apportioned in accordance with Schedule 18.

(6) Notwithstanding anything in the Acts of 1937 to 1953 and the Regulations made thereunder, the former Regulations, any local Act scheme, the 1974 Regulations or any provision of these Regulations, where a payment or transfer of assets is to be or has been made under this regulation or under Schedule 18, no other payment or transfer of assets shall be made out of the superannuation fund on account of service or employment to which the payment or transfer of assets under this regulation or under Schedule 18 relates.

(7) A person to whom this regulation applies shall be treated for the purposes of this regulation and of Schedule 18 as if a transfer value had been paid in terms of these Regulations on the day on which he becomes subject to the approved non-local government scheme.

(8) For the purposes of this regulation, a transfer scheme is a scheme, agreed between the scheme managers, the appropriate administering authority and, if different, the employing authority, providing for the transfer of rights under this regulation of a number of employees.

(9) In this regulation “accrued actuarial liabilities” means the actual and potential liabilities of the fund in connection with any service or employment before any transfer takes place.

PART K — GRATUITIES

Interpretation

K1

In this Part, unless the context otherwise requires—

“annual pay” means the remuneration received by an employee in respect of his employment with an employing authority during the final year of his employment, except that if the annual remuneration in either of the two consecutive preceding years was higher, then the pay received in either of those years, whichever is the greater, shall be deemed to be the annual pay received by the employee in the final year of his employment with an employing authority;

“benefits” means any allowance or lump sum payable under this Part;

“employing authority” means a scheduled body or the Scottish Special Housing Association in whose employment the employee was immediately before he ceased to be employed under the terms of regulation K2;

“lower earnings limit” means the lower earnings limit prescribed for the purposes of section 4(1) of the Social Security Act 1975[^f00051] applying at the time the employee ceases to be employed or, if earlier, at the end of the period used to determine annual pay;

“relevant policy scheme” means the Federated Superannuation System for Universities or the Federated Superannuation Scheme for Nurses and Hospital Officers or a scheme which the Secretary of State approved for the purposes of regulation P13 of the 1974 Regulations or approved under rule 3 or 3A of the Superannuation (Policy and Local Government Schemes) Interchange (Scotland) Rules 1948 to 1971[^f00052] or a scheme to which any person contributed by reason of regulation N12(2) of the 1974 Regulations;

“upper earnings limit” means the upper earnings limit prescribed for the purposes of section 4(1) of the Social Security Act 1975 applying at the time the employee ceases to be employed or, if earlier, at the end of the period used to determine annual pay;

“war service” means 50% of any period after 2nd September 1939 and before 30th June 1950 during which the employee concerned was over 18 years of age and was serving in the armed forces of the Crown, the merchant navy or mercantile marine, or in any of the women’s services specified in Schedule 14 and after which the employee concerned before 1st July 1950 entered the employment of an employing authority and remained in the employment of such a body, without there having been a continuous period of 12 months or more during which he was not employed by an employing authority, but does not include any war service of a kind specified in regulation F2(1) or taken into account for the purposes of Part F of these Regulations.

Persons to whom Part K applies

K2

(1) This Part shall apply to an employee who ceases to be employed by an employing authority and who—

(a) has not attained the age of 60 but has completed not less than 5 years' service; or

(b) has not attained the age of 60 but has completed not less than one year’s service and is incapable of discharging efficiently the duties of that employment by reason of permanent ill-health or infirmity of mind or body; or

and, where an employee dies while in the employment of an employing authority, to his widow or any other dependant provided that the employee was a person to whom this regulation would have applied had he remained in service to age 60, or where at the time of his death his age exceeded 60 and he had completed at least one year’s service.

(2) With consent of the Secretary of State this Part may apply to a former employee of an employing authority or to the widow or any other dependant of such an employee.

Payment of benefit

K3

(1) An employing authority may pay to any person to whom this Part applies a benefit of an amount not exceeding that determined in accordance with regulation K4.

(2) Any benefit payable under paragraph (1) may take the form of—

(a) a lump sum; or

(b) an annuity, the capital value of which does not exceed the amount payable under paragraph (1).

(3) Where an employing authority have granted a benefit to an employee under paragraph (1) by way of an annuity, and the employee dies before receiving an aggregate amount equal to the capital value of the annuity, the authority may grant a benefit to the widow or any other dependant of the employee and for that purpose regulation K2 shall have effect as if the employee had died while in the employment of the authority but as if for the amount specified in paragraph (2) there were substituted the difference between the capital value of the annuity and the aggregate amount of the payments made to the employee before his death.

Calculation of benefit

K4

(1) Where an employing authority have granted a benefit in respect of an employee under regulation K3, subject to paragraph (2) the amount of that benefit shall not exceed the aggregate of—

(a) 5% of his annual pay for each year of service, including war service, prior to 1st April 1986 with an employing authority in respect of which he is not entitled to receive a benefit under a public service scheme; and

(b) 5% of either his annual pay or the lower earnings limit, whichever is the lower, for each year of service after 31st March 1986 with an employing authority in respect of which—

(i) he is not entitled to receive a benefit under a public service scheme; and

(ii) he, not having attained the age of 55 on 1st April 1986, could not have exercised an option under regulations B2, B3, B4(1) or B4(4); and

(c) 5% of the excess of his annual pay over the upper earnings limit for each year of service after 1st April 1986 with an employing authority in respect of which—

(i) he was not entitled to receive a benefit under a public service scheme; and

(ii) he, not having attained the age of 55 on 1st April 1986, could not have exercised an option under regulations B2, B3, B4(1) or B4(4).

(2) For the purposes of this regulation—

(a) no account shall be taken of service before the age of 18 and after attaining the age of 70;

(b) no account shall be taken of service for which a payment has been made under the Act of 1953, the former Regulations, the 1974 Regulations or this Part of these Regulations;

(c) no account shall be taken of service after 1st April 1986 for which a return of contributions under the terms of regulation C12 has been made;

(d) no account shall be taken of service for which the employee has rights in a relevant policy scheme;

(e) no account shall be taken of service exceeding 40 years in total and, where actual service exceeds 40 years, the period of service after 1st April 1986 shall be reduced by that excess; and

(f) no payment under this regulation shall exceed an amount equal to twice annual pay.

Financial

K5

Any benefit under this Part shall not be paid out of the superannuation fund.

PART L — INJURY ALLOWANCES ETC.

Interpretation

L1

In this Part, unless the context otherwise requires—

“benefits” means any allowance or lump sum payable under this Part;

“relevant body” has the meaning given by regulation L7; and

“relevant employment” has the meaning given by regulation L2(2).

Persons to whom Part L applies

L2

(1) Subject to paragraph (4), this Part applies to a person employed in a relevant employment if he—

(a) sustains an injury, or

(b) contracts a disease,

as a result of anything he was required to do in carrying out his work.

(2) “Relevant employment” is employment, otherwise than as a teacher, with a body specified in Part I of Schedule 3 or in Part II of that Schedule or the predecessor of such a body, and for the purposes of this Part a police cadet appointed under section 8 of the Police (Scotland) Act 1967[^f00053] shall be deemed to be in employment with the police authority who maintain the police force with which he is undergoing training.

(3) A person is to be treated for the purpose of paragraph (1) as having sustained an injury as mentioned in that paragraph if—

(a) he sustains the injury while travelling by vehicle as a passenger with the express or implied permission of his employer to or from his place of work, and

(b) at the time of the injury the vehicle was being operated, otherwise than in the course of a public transport service, by or on behalf of his employer or pursuant to arrangements made by his employer.

(4) This Part does not apply where the injury or disease is one in respect of which the person is entitled to an injury award under a scheme made in accordance with section 26 of the Fire Services Act 1947[^f00054] or is entitled to injury benefits under Regulations made in accordance with section 27 of the Police (Scotland) Act 1967.

Loss of employment through permanent incapacity

L3

(1) If, as a result of an incapacity which is likely to be permanent caused by the injury or disease, a person to whom this Part applies ceases to be employed in a relevant employment (whether or not it is the same employment as that in which the injury or disease was sustained or contracted), he shall be entitled to an annual allowance.

(2) The allowance is to be paid by the relevant body and is to be of such amount as the body may from time to time determine.

(3) The relevant body may suspend or discontinue the allowance if the person becomes capable of working again.

(4) The allowance shall not exceed 85 per cent of the person’s annual rate of remuneration in respect of the employment when he ceased to be employed.

(5) In ascertaining for the purposes of paragraph (4) a person’s annual rate of remuneration in respect of the employment when he ceased to be employed—

(a) the annual rate of any fluctuating element of his remuneration is to be estimated by reference to an average taken over a representative period;

(b) the annual rate of any benefit in kind included in his remuneration is to be the estimated annual value of the benefit in kind at the date on which he ceased to be employed;

(c) if at that date he had no remuneration or his remuneration was reduced because of absence from duty, the annual rate is to be taken to be the annual rate which would have applied if he had not been absent;

(d) if at that date he was entitled to an allowance under regulation L4 by reason of a reduction in his remuneration, whether as a result of the same or of some other injury or disease, the annual rate is to be taken to be the annual rate which would have applied if his remuneration had not been reduced;

(e) if his remuneration is retrospectively altered as a result of a pay award, the annual rate of his remuneration is to be based on the retrospective pay award; and

(f) if his remuneration is not calculated by reference to an annual rate but by reference to some other rate, the annual rate is to be derived from the applicable rate at the date on which he ceased to be employed.

(6) In determining the amount of the allowance the relevant body is to have regard to all the circumstances of the case, including the matters specified in regulation L8.

Reduction in remuneration

L4

(1) If as a result of the injury or disease to a person to whom this Part applies that person suffers a reduction in his remuneration while he is employed in relevant employment (whether or not it is the same employment as that in which the injury or disease was sustained or contracted) and regulation L3 does not apply, he shall be entitled to an allowance while the reduction continues.

(2) A person’s remuneration is to be treated for the purposes of paragraph (1) as reduced if at any time it is lower than it would have been but for the injury or disease.

(3) The allowance is to be paid by the relevant body and is to be of such amount as the body may from time to time determine.

(4) The amount of the allowance, together with the person’s remuneration in the relevant employment, is not in any year to exceed the remuneration he would have been paid if he had not sustained or contracted the injury or disease.

(5) In determining the amount of an allowance under this regulation the relevant body is to have regard to all the circumstances of the case, including the matters specified in regulation L8.

Allowances for pensioners

L5

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