The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998

• “concurrent qualifying employment”, in relation to a calculation by a LGSS employer, means qualifying employment with that employer which is concurrent with qualifying employment with that or another LGSS employer;

• “excluded employment” means a period of employment– in an independent school (within the meaning of section 135(1) of the Education (Scotland) Act 1980²⁸; or in relation to which a pension or other benefits (other than a refund of contributions) are being or have been paid under an occupational pension scheme;

• “qualifying employment”, in relation to an employee, means a period of employment (other than excluded employment) in relation to which the LGSS employer is satisfied that the employee was in local government employment (within the meaning of the LGSS Regulations) or pensionable employment (within the meaning of the Teachers Superannuation (Scotland) Regulations 1992²⁹ or of the National Health Service Superannuation Scheme (Scotland) Regulations 1995³⁰ or was in employment which would have been such employment but for a relevant disqualification;

• “relevant disqualification”, in relation to an occupational pension scheme (including the LGSS) which applies to qualifying employment, means any of the following reasons in consequence of which (either alone or taken together) a person has not become, has ceased to be or has not been treated as being eligible for membership of the scheme, namely– the failure of a medical examination required for such membership; the making of any election to opt out of or the absence of an election to opt into such membership with respect to any period of employment; a restriction excluding some part-time employment from being employment to which the scheme applies; in the case of the LGSS– ineligibility under regulation B4B(6) of the Superannuation Regulations; or in the case of a manual worker, failure to complete a period of continuous employment required to be a pensionable employee; and other expressions used in this Part and in Part III have the same meaning as in that Part.

PART V — INJURY ALLOWANCES ETC.

Interpretation of Part V

38

• (1) In this Part, unless the context otherwise requires, “relevant employment”, in relation to any person, means employment–

• (a) with a LGSS employer or the predecessor of such an employer; or

• (b) in which the person is, by virtue of regulation B6 of the Superannuation Regulations (admission agreements) or any corresponding earlier provision, entitled to participate in the benefits of a pension fund maintained under those Regulations or the former regulations;

and for the purposes of this Part a police cadet appointed under section 8 of the Police (Scotland) Act 1967³¹ shall be deemed to be in employment with the police authority who maintain the force with which he is undergoing training.

• (2) In this Part “the relevant employer”, in relation to any person, means–

• (a) the employer by whom the person in question was employed immediately before he first qualifies for any allowance or lump sum payable under this Part;

• (b) if he dies without qualifying for any such allowance or lump sum, the employer who last employed him in a relevant employment before his death; or

• (c) if the employer specified in paragraph (a) or (b) has ceased to exist, the employer to whom he would have been transferred if he had continued in the employment in question.

• (3) References in this Part to an injury or disease do not include any injury or disease which is one in respect of which the person is entitled–

• (a) to an injury award under a scheme made in accordance with section 26 of the Fire Services Act 1947³²; or

• (b) to injury benefits under regulations made in accordance with section 27 of the Police (Scotland) Act 1967.

• (4) For the purposes of this Part, if a person–

• (a) sustains an injury while travelling as a passenger by vehicle to or from his place of work with his employer’s permission (whether express or implied); 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, or pursuant to arrangements made by, his employer.

he shall be treated as having sustained the injury as a result of a requirement of carrying out his work.

Loss of employment through permanent incapacity

39

• (1) If–

• (a) as a result of anything he was required to do in carrying out his work a person who is employed in a relevant employment–

• (i) sustains an injury; or

• (ii) contracts a disease; and

• (b) he ceases to be employed in that or any other relevant employment as a result of an incapacity which is likely to be permanent and was caused by the injury or disease,

he shall be entitled to an annual allowance not exceeding 85 per cent of his annual rate of remuneration in respect of the employment when he ceased to be employed.

• (2) The allowance is to be paid by the relevant employer and, subject to paragraph (1), is to be of such amount as that employer may from time to time determine.

• (3) In ascertaining for the purposes of paragraph (1) a person’s annual rate of remuneration when he ceased to be employed–

• (a) the annual rate of any fluctuating element included in 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 as at the date on which he ceased to be employed;

• (c) if at that date–

• (i) he had no remuneration; or

• (ii) his remuneration was reduced,

because of absence from duty, the annual rate is that which would have applied if he had not been absent;

• (d) if at that date he was entitled to an allowance under regulation 40 by reason of a reduction in his remuneration (whether as a result of the same or another injury or disease), the annual rate is that which would have applied if his remuneration had not been reduced;

• (e) if his remuneration is calculated by reference to a rate which is not annual, the annual rate is to be derived from the applicable rate at that date; and

• (f) if his remuneration is retrospectively altered as a result of a pay award, the annual rate is that based on the award.

• (4) The relevant employer may suspend or discontinue the allowance under this regulation if the person becomes capable of working again.

Reduction in remuneration

40

• (1) If–

• (a) as a result of anything he was required to do in carrying out his work a person who is employed in a relevant employment–

• (i) sustains an injury; or

• (ii) contracts a disease,

and suffers a reduction in his remuneration while he is employed in that or any other relevant employment; and

• (b) regulation 39 does not apply,

he shall be entitled to an allowance while the reduction continues.

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

• (3) The allowance under paragraph (1) is to be paid by the relevant employer and is to be of such amount as the employer may from time to time determine, but must not in any year exceed the shortfall between–

• (a) the person’s remuneration in the relevant employment; and

• (b) the remuneration he would have been paid if he had not sustained the injury or, as the case may be, contracted the disease.

Allowances for pensioners

41

• (1) Where a person ceases to be employed in a relevant employment, if–

• (a) immediately before so ceasing he was entitled to an allowance under regulation 40;

• (b) on so ceasing regulation 39 does not apply, but he becomes entitled under Part E of the Superannuation Regulations to receive payments in respect of an annual retirement pension and regulation E22(4) of those Regulations (different relevant period for calculating pensionable remuneration where a material reduction has been certified) does not apply; and

• (c) the annual rate of the retirement pension in any year falls short of what it would have been if the amount of the allowance paid under regulation 40 during the period which is the relevant period for the purposes of regulation E22 of the Superannuation Regulations had been part of his remuneration in the relevant employment,

the relevant employer may pay him an allowance (but not of an amount in any year exceeding that shortfall).

• (2) An allowance under this regulation continues for such period as the relevant employer may determine.

Death benefits

42

• (1) If–

• (a) as a result of anything he was required to do in carrying out his work a person who is employed in a relevant employment–

• (i) sustains an injury; or

• (ii) contracts a disease; and

• (b) he dies as a result of the injury or disease,

then–

• (i) subject to paragraph (2), if the deceased leaves a surviving spouse or spouses, the surviving spouse or all of them shall be entitled to an annual allowance or lump sum; and

• (ii) if the deceased leaves a dependant, the dependant shall be eligible for an annual allowance or lump sum.

• (2) A surviving spouse shall not be entitled to an annual allowance or lump sum if at the date of death he was cohabiting with another person outside marriage.

• (3) The allowance or lump sum is to be paid by the relevant employer and is to be of such amount as the employer may from time to time determine.

• (4) Subject to paragraph (5), an allowance to a surviving spouse shall cease if he remarries or cohabits with another person outside marriage, but if that marriage is dissolved or the cohabitation ceases the relevant employer may restore the allowance for such period as the employer may determine.

• (5) Where the person whom the surviving spouse marries or with whom he cohabits is also a surviving spouse entitled to an allowance under this regulation, they may determine which of them is to be entitled to the allowance and the other shall cease to be entitled to it until the dissolution of the marriage or, as the case may be, the ending of the cohabitation.

• (6) An allowance to a dependant shall continue for such period as the relevant employer may determine.

Considerations in determining amount of benefits

43

• (1) In determining the amount of an allowance under regulation 39 or 40 or of an allowance or a lump sum under regulation 42, the relevant employer is to have regard to all the circumstances of the case, including the matters specified in paragraph (2) (except in so far as they are excluded by paragraph (3)).

• (2) The matters mentioned in paragraph (1) are–

• (a) any right to benefit under Part V of the Social Security Contributions and Benefits Act 1992³³;

• (b) any other statutory right to benefit or compensation;

• (c) any right to receive pension benefit (whether payable under an enactment or otherwise); and

• (d) any damages recovered and any sum received by virtue of a contract of insurance.

• (3) In the case of an allowance or a lump sum which is payable by virtue of a person having sustained an injury, no regard shall be had–

• (a) to any benefit payable periodically which the person was entitled to be paid before the injury was sustained;

• (b) to any right which accrued before that time; or

• (c) to any damages or sum received by virtue of such a right.

Application of Part V in respect of injury or disease before commencement date

44

• (1) Subject to the following provisions of this regulation, this Part applies even if the injury or disease was sustained or contracted before the date on which these Regulations come into force.

• (2) Regulations 39 and 41 do not apply if the cessation of employment occurred before 31st March 1972, regulation 40 does not apply if the reduction of remuneration occurred before that date and regulation 42 does not apply if the death occurred before that date.

• (3) Any injury benefit treated by virtue of regulation L9(6) of the Superannuation Regulations as having been paid under Part L of those Regulations shall be treated as if it were an allowance or lump sum, as the case may be, paid under this Part.

• (4) If adequate provision has already been made for a person under regulation 7 of the Benefits Regulations, this Part does not apply to him.

• (5) Where–

• (a) by virtue of paragraph (2) regulation 39, 40, 41 or 42 applies in a case where the cessation of the employment, the reduction of remuneration or, as the case may be, the death occurred before 21st December 1987; and

• (b) paragraphs (3) and (4) do not apply,

the relevant employer shall decide what allowance or lump sum (if any) is to be granted in accordance with this Part for any past or future period (but in making that decision the relevant employer shall take into account any allowance to which the person is or was entitled under regulation 8 of the Benefits Regulations).

• (6) Regulation 43(2)(c) has effect in cases where the cessation of employment, reduction in remuneration or death in question occurred before 6th April 1988 with the insertion after the word “otherwise)” of the words “out of any fund to which any body which employed him in relevant employment has made any contributions in respect of him or out of any fund to which assets of any such fund were transferred”.

PART VI — GRATUITIES AS RESPECTS NON-PENSIONABLE SERVICE

Meaning of “service” in Part VI

45

• (1) In this Part, unless the context otherwise requires, “service” is to be construed in accordance with this regulation.

• (2) A person’s service is the time spent by him in employment with any LGSS employer or former local authority which is not excluded by paragraph (3).

• (3) Subject to paragraph (4), a person’s service does not include any period–

• (a) before he attained the age of 16 or after he attained the age of 70;

• (b) in excess of a total of 40 years;

• (c) in respect of which a gratuity has been granted under a local Act, section 18 of the Local Government Superannuation Act 1953³⁴, the Local Government Superannuation (Scotland) Regulations 1974, the Superannuation Regulations, Part II of the Local Government (Compensation for Redundancy or Premature Retirement on Reorganisation) (Scotland) Regulations 1995 or these Regulations;

• (d) during which he is not a pensionable employee by virtue of a failure to apply under regulation B4(1) of the Superannuation Regulations (application for membership) or notification under regulation B4(2) or B4A of those Regulations (which provide respectively for notifications that a person does not wish to become, or, as the case may be, wishes to cease to be a pensionable employee), or any corresponding act or omission under those Regulations, unless–

• (i) he was employed by a LGSS employer on 1st April 1986 and had attained the age of 55 before that date; or

• (ii) he was so employed on 31st December 1993, had attained the age of 50 before that date and immediately before that date was disqualified from being a pensionable employee because his contractual hours were fewer than 15;

• (e) in respect of which he has retained rights in a scheme which was a relevant policy scheme within the meaning of regulation K1 of the Superannuation Regulations; or

• (f) which has been or may be taken into account for the purpose of calculating any benefit under the LGSS or any other public service scheme, or which, but for an election by that person on or after 6th April 1988 not to participate in the benefits of such a scheme, might have been so taken into account.

• (4) Where regulation 46(1) applies, service includes periods before 1st April 1986 of the kinds mentioned in paragraph (3)(e) and (f).

• (5) In paragraph (3)(f) “public service scheme” means the Universities' Superannuation Scheme and any occupational pension scheme–

• (a) which cannot come into force, or be amended, without the scheme or amendment being approved by a Minister of the Crown or government department; and

• (b) which includes provisions for any such whole-time service as is described in regulation F2(1) of the Superannuation Regulations, rendered by a person before he becomes entitled to participate in the scheme, to be reckonable as service in respect of which benefits are payable under the scheme.

• (6) In paragraph (5) “occupational pension scheme” means any scheme or arrangement comprised in one or more instruments or agreements and having effect (or being capable of having effect) in relation to one or more descriptions or categories of employments so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, on death or on retirement, to or in respect of earners with qualifying service in an employment of any such description or category.

Death in service gratuities

46

• (1) Where a person who has been employed by a LGSS employer for not less than one year dies while in that employment, the LGSS employer may make a discretionary grant (“a death benefit gratuity”) to one or more of the person’s spouse and dependants.

• (2) A death benefit gratuity may consist of a lump sum or an annuity or both.

• (3) The amount of a death benefit gratuity (including the capital value of any annuity) or, in a case where the gratuity is paid to more than one person, the aggregate amount of such gratuity must not exceed the prescribed maximum.

• (4) In this regulation “the prescribed maximum” means 3.75 per cent of the aggregate of–

• (a) an amount equal to remuneration at the annual rate for a period equal to the total of the length in years and days of the person’s service before 1st April 1986 and 50 per cent of any war service (within the meaning of Part F of the Superannuation Regulations) in respect of which a period might have become reckonable as reckonable service under regulation F6 of those Regulations if the conditions in regulation F3(2) to (9) of those Regulations had been satisfied; and

• (b) an amount equal to remuneration at the annual rate (with the necessary adjustments in accordance with paragraph (6)), for a period equal to the length in years and days of that person’s service after 31st March 1986, but in the case of a person–

• (i) whose contractual hours are fewer than 15 and who had not attained the age of 50 on 31st December 1993; or

• (ii) who contractual hours are at least 15 and who had not before 1st April 1986 attained the age of 55,

disregarding the assumed membership.

• (5) In this regulation “annual rate of remuneration”, in relation to an employee, means the annual rate of his remuneration (ascertained as if paragraphs 4 and 5 of Part III of Schedule 16 to the Superannuation Regulations had applied) at whichever of the following times yields the highest figure–

• (a) the date on which he ceased to be employed;

• (b) 12 months before that date; or

• (c) 24 months before that date.

• (6) For the purposes of paragraph (4), the necessary adjustments to the annual rate of remuneration are–

• (a) if that rate exceeds the annual equivalent of the lower earnings limit in force at the time at which the annual rate of remuneration falls to be ascertained (as determined in accordance with section 5 of the Social Security Contributions and Benefits Act 1992³⁵), but not the upper earnings limit then in force (as so determined), to substitute the lower earnings limit; and

• (b) if that rate exceeds that upper earnings limit, to substitute the sum of that lower earnings limit and the excess over that upper earnings limit.

• (7) In paragraph (4) “the assumed membership”, in relation to any person, means any service which would have been counted as part of his effective service if the person–

• (a) in the case of paragraph (4)(b)(i), had made an election under regulation B4 or regulation B4B of the Superannuation Regulations on 31st December 1993; and

• (b) in the case of paragraph (4)(b)(ii)–

• (i) had made any election which he was entitled to make under regulation B2(4) or B3(2)(a) or (b) of those Regulations on 21st December 1987; and

• (ii) had not given any notice he is entitled to give under regulation B4A of the Superannuation Regulations.

Retirement gratuities

47

• (1) Where a person–

• (a) who has been employed by a LGSS employer for at least five years; or

• (b) who has been so employed for at least one year and–

• (i) has attained the age of 60; or

• (ii) is incapable of discharging efficiently the duties of his employment by reason of permanent ill-health or infirmity of mind or body,

ceases to be so employed (otherwise than as mentioned in regulation 48(1)(b)), the LGSS employer may make him a discretionary grant (“a retirement gratuity”).

• (2) A retirement gratuity may consist of a lump sum or an annuity or both.

• (3) The amount of a retirement gratuity (including the capital value of any annuity) must not exceed–

• (a) an amount equal to three-eightieths of the person’s annual rate of remuneration for each year of service; or

• (b) the prescribed maximum;

and in this paragraph “annual rate of remuneration” has the meaning given in regulation 46(5) and “the prescribed maximum” the meaning given in regulation 46(4).

• (4) Where–

• (a) the gratuity granted under paragraph (1) to a person (“the original annuitant”) is or includes an annuity; and

• (b) he dies at a time when the capital value of the payments of the annuity he has received falls short of its capital value at the time of its grant,

the LGSS employer may grant a further gratuity by way of an annuity to one or more of the original annuitant’s spouse and dependants.

• (5) The amount of an annuity granted under paragraph (4) or, in a case where an annuity is paid to more than one person, the aggregate amount of annuity must be the lesser of–

• (a) the amount the capital value of which equals the shortfall mentioned in paragraph (b) of that paragraph; or

• (b) two-thirds of the amount of the annuity payable to the original annuitant immediately before his death.

Redundancy gratuities

48

• (1) Where a person–

• (a) has been employed by a LGSS employer–

• (i) for at least five years; or

• (ii) in the case of a person who has attained the age of 60, for at least one year;

• (b) ceases to be so employed–

• (i) by reason of redundancy; or

• (ii) in the interests of the efficient exercise of the LGSS employer’s functions; and

• (c) the LGSS employer–

• (i) have certified in relation to him in accordance with regulation E2(4)(a) of the Superannuation Regulations; or

• (ii) are satisfied that if he were a pensionable employee they would have so certified,

the LGSS employer may make him a discretionary grant (“a redundancy gratuity”).

• (2) A redundancy gratuity may consist of a lump sum or an annuity or both.

• (3) Where–

• (a) the gratuity granted to a person under paragraph (1) is or includes an annuity; and

• (b) he dies before receiving payments of the annuity of an aggregate amount equal to its capital value,

the LGSS employer may grant a further gratuity by way of an annuity to one or more of the person’s spouse and dependants.

• (4) Where–

• (a) the gratuity granted to a person under paragraph (1) is or includes an annuity; and

• (b) he dies at a time when the capital value of the payments of the annuity he has received falls short of its capital value at the time of its grant,

the LGSS employer may grant a further gratuity by way of an annuity to one or more of his spouse and dependants.

• (5) The amount of a redundancy gratuity in respect of any person (including the capital value of any annuity) or, in a case where the gratuity is paid to more than one person, the aggregate amount of such gratuity must not exceed the prescribed maximum (as defined in regulation 46(4)).

• (6) The capital value of an annuity granted under paragraph (4) or, in a case where an annuity is paid to more than one person, the aggregate amount of such annuities must not exceed the shortfall mentioned in paragraph (4)(b).

• (7) Where a person to whom a further gratuity is granted under paragraph (4) dies at a time when the capital value of the payments of the annuity he has received falls short of its capital value at the time of its grant, the LGSS employer may grant a further gratuity by way of an annuity to any other person to whom they might have granted a further annuity under paragraph (4) at the time of the original annuitant’s death, but its capital value must not exceed that shortfall.

Schemes in connection with the exercise of powers

49

A LGSS employer may make a scheme with respect to the exercise of their powers under regulation 46, 47 or 48.

PART VII — MISCELLANEOUS AND SUPPLEMENTARY

Decisions and appeals

Decisions and appeals

50

• (1) Any question concerning the rights of any person or his eligibility to be considered for any award under Part V or Part VI shall be decided in the first instance by the relevant LGSS employer, that is to say the LGSS employer who last employed the person in respect of whose employment the question arises.

• (2) The questions specified in paragraph (1) shall be decided as soon as is reasonably practicable after the occurrence of the last event by virtue of which the award may be payable.

• (3) A body who have decided any question under this regulation shall, as soon as is reasonably practicable after doing so, send a written notification of their decision to every person affected by it.

• (4) The notification shall include–

• (a) the grounds for the decision; and

• (b) in any case where paragraph (5) applies, conspicuous statement directing the person’s attention to his right under that paragraph to appeal to the Secretary of State.

• (5) Where–

• (a) the relevant employer has decided or failed to decide any such question as is mentioned in paragraph (1); and

• (b) an appeal is duly made to the Secretary of State,

then, subject to the following provisions of this regulation, the question shall be determined by him.

• (6) The Secretary of State shall not determine any question that fell to be decided by the relevant employer in the exercise of a discretion conferred by these Regulations.

• (7) An appeal under paragraph (5) shall be made by notice in writing which–

• (a) shall be served (whether by being sent by post or otherwise) as soon as is reasonably practicable; and

• (b) may be served by any person whose interests are affected.

Supplemental

Finance

51

• (1) The cost of any payment to be made under these Regulations is not to be met out of any pension fund.

• (2) Where–

• (a) an allowance under regulation 7 of the Benefits Regulations (a “regulation 7 allowance”) is payable in addition to any allowance or lump sum under Part V of these Regulations; and

• (b) the relevant employer is the employing authority for the purposes of regulation 7(4) of the Benefits Regulations (repayment to appropriate superannuation fund),

the regulation 7 allowance shall be treated for the purposes of paragraph (1) as an allowance under these Regulations.

Revocations and transitional provisions

52

• (1) The Regulations specified in Schedule 3 are hereby revoked to the extent specified in that Schedule.

• (2) Anything done under or by virtue of any provision of–

• (a) the Local Government (Compensation for Premature Retirement) (Scotland) Regulations 1979³⁶;

• (b) Part II of the Local Government (Compensation for Redundancy and Premature Retirement) (Scotland) Regulations 1984³⁷;

• (c) Part K or L of the Superannuation Regulations; or

• (d) the Local Government (Compensation for Redundancy) (Scotland) Regulations 1994³⁸,

shall be deemed to have been done under or by virtue of the corresponding provision of these Regulations and anything begun under any of those provisions may be continued under these Regulations as if begun under these Regulations.

• (3) Where a period of time specified in, or applying by virtue of, a provision specified in paragraph (2) is current at the commencement of these Regulations, these Regulations shall have effect as if the corresponding provision of these Regulations had been in force when that period began to run.

SCHEDULE 1 — APPROPRIATE PERCENTAGES FOR ADJUSTMENT OF ANNUAL COMPENSATION FOR REDUNDANCY PAYMENTS

	Appropriate percentage	Appropriate percentage
Age last birthday	Male	Female
50	6.04	5.61
51	6.12	5.66
52	6.21	5.72
53	6.31	5.80
54	6.45	5.90
55	6.59	6.02
56	6.75	6.13
57	6.92	6.26
58	7.10	6.40
59	7.30	6.55
60	7.51	6.70
61	7.73	6.87
62	7.97	7.05
63	8.23	7.24
64	8.51	7.45

SCHEDULE 2 — REVOCATIONS

(1)	(2)	(3)
Regulations revoked	References	Extent of revocation
The Local Government (Compensation for Premature Retirement) (Scotland) Regulations 1979	S.I. 1979/785	The whole Regulations
The Local Government (Compensation for Premature Retirement) (Scotland) Amendment Regulations 1982	S.I. 1982/917	The whole Regulations
The Local Government (Compensation for Redundancy and Premature Retirement) (Scotland) Regulations 1984	S.I. 1984/846	The whole Regulations
The Local Government (Compensation for Premature Retirement) (Scotland) Amendment Regulations 1986	S.I. 1986/409	The whole Regulations
The Local Government Superannuation (Scotland) Regulations 1987	S.I. 1987/1850	Parts K and L
The Local Government Superannuation (Scotland) Amendment Regulations 1989	S.I. 1989/802	Regulations 30 and 31
The Local Government (Compensation for Premature Retirement) (Scotland) Amendment Regulations 1990	S.I. 1990/125	The whole Regulations
The Local Government Superannuation (Scotland) Amendment Regulations 1990	S.I. 1990/422	Regulations 29 and 30
The Designation of Institutions of Higher Education (Scotland) Order 1992	S.I. 1992/1025	Schedule, paragraph 3
The Transfer of Colleges of Further Education (Scotland) Order 1992	S.I. 1992/1597	Schedule 2, paragraph 1
The Jordanhill College of Education (Closure) (Scotland) Order 1993	S.I. 1993/490	Schedule, paragraph 1
The Local Government Superannuation (Scotland) Amendment Regulations 1993	S.I. 1993/1593	Regulation 29
The Duncan of Jordanstone College of Art (Closure) (Scotland) Order 1994	S.I. 1994/1715	Schedule, paragraph 1
The Local Government (Compensation for Redundancy) (Scotland) Regulations 1994	S.I. 1994/3068	The whole Regulations
The Local Government (Compensation for Redundancy or Premature Retirement on Reorganisation) (Scotland) Regulations 1995	S.I. 1995/340	Regulations 13 and 14
The Local Government (Superannuation and Compensation for Premature Retirement (Scotland) Amendment Regulations 1995	S.I. 1995/750	In regulation 2 the definition of “the 1979 Regulations” and regulation 3
The Local Government (Superannuation and Compensation for Redundancy or Premature Retirement) (Scotland) Amendment Regulations 1995	S.I. 1995/3294	Regulation 11
The Local Government (Superannuation and Compensation for Premature Retirement) (Scotland) Amendment Regulations 1996	S.I. 1996/1241	Regulation 3
The Compensation for Redundancy or Premature Retirement (Scottish Environment Protection Agency and River Purification Boards Transitional Arrangements) (Scotland) Regulations 1996	S.I. 1996/1360	Regulations 14 and 15

Signed

Brian Wilson — Minister of State, Scottish Office — 26th January 1998

Explanatory note

(This note is not part of the Regulations)

These Regulations consolidate, with amendments, the provisions of the Local Government (Compensation for Premature Retirement) (Scotland) Regulations 1979, as amended, Part II of the Local Government (Compensation for Redundancy and Premature Retirement) (Scotland) Regulations 1984 and the Local Government (Compensation for Redundancy) (Scotland) Regulations 1994. They also revoke Parts K and L of the Local Government Superannuation (Scotland) Regulations 1987 dealing with injury allowances and gratuities. Parts V and VI of these Regulations replace them. As a result, these Regulations contain all the provisions relating to discretionary payments and payments of injury benefits by employers to persons engaged in local government employment other than teachers and those engaged in the police and fire services (excluding payments under the Local Government (Compensation for Redundancy or Premature Retirement on Reorganisation) (Scotland) Regulations 1995).

Part II enables Local Government Superannuation Scheme employers (“LGSS employers” defined in regulation 2(1)) to pay to employees who cease to hold employment and become entitled to a statutory redundancy payment compensation to make up the difference between the statutory redundancy payment and the amount which that payment would have been if based on his full weekly pay, without applying the limits imposed by statute.

Part III enables LGSS employers to pay compensation for premature retirement. This is available to employees over 50 who cease work by reason of redundancy, or in the interests of the efficient exercise of the employers' functions or by reason of being a holder of joint employment where the other holder ceased work, and who fulfil other specified conditions. The employer has power to credit them with an additional period of service, and benefits to the former employee or his surviving spouse and children become payable based on that service.

The main changes in Part III compared to the previous Regulations are that–

• (1) Part III now applies to non-pensionable as well as pensionable employees;

• (2) holders of a joint appointment whose appointment has been terminated because the other ceased to hold his appointment may now be considered for a discretionary award under Part III (regulation 6(1)(a)(iii));

• (3) in the case of employees who become eligible for compensation for the first time under these Regulations by virtue of these changes, where the date of premature retirement is before the Regulations come into force, the employing authority may credit them with an additional period of service within six months of the Regulations coming into force (regulation 8(2)(a)), instead of the usual limit of six months from the date of premature retirement;

• (4) all the service of a part-time employee can be taken into account when considering an award of compensatory added years (regulation 7(3));

• (5) spouses of post retirement marriages of employees awarded compensatory added years may receive part of the annual compensation (regulation 20(3));

• (6) where a child who is eligible for long-term compensation has attained the age of 17 and is receiving remuneration for full-time training for a trade, the “indexed training rate” has been uprated (regulation 25(6));

• (7) interest is to be paid on compensation paid late in certain circumstances (regulation 30);

• (8) the “appropriate authority” (the administering authority or, where a person is not a pensionable employee, the authority which would otherwise have been the administering authority) may pay compensation on behalf of the employing authority and recover it from them. In the case of the lump sum compensation payable under regulation 9, it must not be paid from the superannuation fund. In the case of any other compensation paid on behalf of the employing authority, it may be paid from the superannuation fund but the appropriate authority must recover the amount from the employing authority within two months of payment (regulation 31(2) to (5)).

Regulations 1(2) and 33 provide that where a person is credited with an additional period of service in respect of his redundancy or premature retirement at a material date before these Regulations come into force, the provisions of the Regulations for payment of benefits in respect of that service will have effect from the material date. This is subject to the qualification that regulation 20(3), which introduces compensation for a surviving spouse in a post-retirement marriage, shall not have effect from a date earlier than 25th July 1996 (the date when the equivalent provision came into force in England and Wales). Retrospection is authorised by section 24(3) of the Superannuation Act 1972. No beneficiary is placed in a worse position by such retrospection.

Part IV enables LGSS employers to pay compensation to employees who cease to be employed by reason of redundancy or in the interests of the efficient exercise of the employers' functions, in cases where compensation under Part III is not available. The employees concerned must be eligible to be Local Government Superannuation Scheme members and fulfil other specified conditions.

Part V provides for payment of injury benefits by LGSS employers.

Part VI enables LGSS employers to pay certain gratuities to former employees or their spouses or children in respect of non-pensionable service.

Footnotes