The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Regulation 2

SCHEDULE 1INTERPRETATION

“the 1993 Act” means the Pension Schemes Act 1993(1);

“the 1995 Act” means the Pensions Act 1995(2);

“the 1999 Act” means the Welfare Reform and Pensions Act 1999(3);

“the 1987 Regulations” means the Local Government Superannuation (Scotland) Regulations 1987(4);

“the 1998 Regulations” means the Local Government Pension Scheme (Scotland) Regulations 1998(5);

“the Benefits Regulations” means the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008(6);

“the Earlier Regulations” means all or any of the Local Government Superannuation (Administration) (Scotland) Regulations 1938(7), the Local Government Superannuation (Administration) (No. 2) (Scotland) Regulations 1938(8), the Local Government Superannuation (Administration) (Scotland) Regulations 1954(9), Local Government Superannuation (Scotland) Regulations 1974(10), the 1987 Regulations or the 1998 Regulations as appropriate;

“the former regulations” means–

(a)

those of the enactments and instruments referred to in paragraph 5(1) of Schedule 7 to the Superannuation Act 1972(11) and applying to Scotland that were in force immediately before 1st April 1974;

(b)

the Local Government Superannuation (Miscellaneous Provisions) Regulations 1973(12); and

(c)

the Local Government Superannuation (Miscellaneous Provisions) (No. 2) Regulations 1973(13);

“the Transitional Regulations” means the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 2008(14);

“active member” has the same meaning as in section 124(1) of the Pensions Act 1995(15);

“actuary” means a Fellow of the Faculty or Institute of Actuaries;

“administering authority” means a body required to maintain a pension fund under these Regulations and “appropriate administering authority” means the body maintaining the appropriate fund;

“admission agreement”, in relation to an admission body, means an agreement that all, or any designated class, of the body’s employees may be members;

“admission body” means a body mentioned in regulation 4(2) (community admission bodies) or 5(2) (transferee admission bodies);

“appropriate fund”, in relation to a member, has the meaning given in regulation 28 (appropriate funds) and, in relation to a pension credit member, means the fund which is the appropriate fund for the transferor on the transfer date;

“appropriate policy” means a policy of insurance or annuity contract which provides an annuity which satisfies requirements prescribed under section 95(2)(c) of the Pension Schemes Act 1993(16);

“appropriate scheme”, for the purposes of Part 10, is construed in accordance with section 9(5) of the 1993 Act;

“ARCs” means additional regular contributions as referred to in regulation 20 (payment of additional regular contributions);

“AVCs” means additional voluntary contributions as referred to in regulation 22 (additional voluntary contributions and shared cost additional voluntary contributions);

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“CIPFA” means the Chartered Institute of Public Finance and Accountancy;

“contracted out rights” has the meaning given in regulation 91(6);

“the commencement date” means 1st April 2009;

“deferred member” has the same meaning as in section 124(1) of the Pensions Act 1995(17), except as provided in regulation 13 (re-employed and rejoining deferred members);

“employing authority” means a body employing an employee who is eligible to be a member;

“ex civil partner” means a former civil partner to whom pension credit rights under the Scheme have been or are to be allocated following a pension sharing order;

“ex spouse” means a former spouse to whom pension credit rights under the Scheme have been or are to be allocated following a pension sharing order;

“guaranteed minimum” means the guaranteed minimum as defined in sections 14 and 17 of the 1993 Act (minimum pensions for earners, widows, widowers and surviving civil partners(18), so far as it is attributable to earnings factors for the tax year 1988 89 or for subsequent tax years, increased in accordance with the requirements of section 109 of that Act (annual increase of guaranteed minimum pensions) and in this definition “earnings factors” means the earnings factors referred to in section 14 of that Act and “tax year” means the 12 months beginning with 6th April in any year;

“indexing” means indexing in accordance with the Government Index of Retail Prices;

“local Act scheme” has the meaning given in section 8 of the Superannuation Act 1972, except that where it refers to any time before 25th March 1972 it has the same meaning as in the Local Government Superannuation Act of 1937(19);

“local authority” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994(20);

“local government area” must be construed in accordance with section 1 of the Local Government etc. (Scotland) Act 1994;

“local government employment” means employment by virtue of which the person employed is or has been a member;

“member” has the same meaning as in section 124(1) of the 1995 Act but, except in regulation 62 (annual benefit statements) and in Part 10 (pension sharing), does not include a pension credit member;

“normal benefit age”, for the purposes of Part 10, means 65;

“normal retirement age” is 65;

“occupational pension scheme” has the meaning given by section 150(5) of the Finance Act 2004(21);

“overseas arrangement” has the meaning given in regulation 90(1) (qualifying arrangements);

“part-time employee” has the meaning given in regulation 2 (interpretation) of the Benefits Regulations;

“pension credit” means a credit under section 29(1)(b) of the 1999 Act or corresponding Northern Ireland legislation;

“pension credit benefits” means benefits payable under the Scheme to or in respect of a pension credit member by virtue of rights under the Scheme attributable to a pension credit;

“pension credit member” means a person who has pension credit rights or benefits under the Scheme;

“pension credit rights” means rights to future benefits under the Scheme which are attributable to a pension credit;

“pension debit” has the meaning given in section 29(1)(a) of the 1999 Act;

“pension debit member” means a member, whether an active member, a deferred member or a pensioner member, whose shareable rights under the Scheme are subject to a pension debit;

“pension sharing order” means any order or provision which is mentioned in section 28(1) of the 1999 Act or Article 25(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

“pensionable pay” has the meaning given in regulation 5 (pensionable pay) of the Benefits Regulations;

“pensionable service”, for the purposes of Part 10, has the meaning given by section 124(1) of the Pensions Act 1995;

“pensioner member” has the same meaning as in section 124(1) of the 1995 Act;

“person responsible for a pension arrangement”, for the purposes of Part 10, has the meaning given by section 46(2) of the 1999 Act;

“personal pension scheme”, for the purposes of Part 10, has the meaning given by section 1 of the 1993 Act;

“preserved benefits” means benefits to which a person–

(a)

was entitled immediately before the commencement date and which are preserved by virtue of regulation 3(1) and (2)(a) of the Transitional Regulations; and

(b)

becomes entitled under these Regulations,

and which have not become payable and which have not had an election made in respect of them under regulation 13 (re employed and rejoining deferred members);

“prospective member” means a person who under his or her contract of service or these Regulations–

(a)

may, if the person wishes or the person’s employer consents, become a member;

(b)

will be able to do so if the person continues in the same employment sufficiently long; or

(c)

will become a member unless the person chooses not to do so;

“Reference banks” means the seven largest persons for the time being who–

(a)

have permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b)

are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling;

and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006(22)), as shown in the audited end of year accounts last published before that time;

“registered scheme” means a pension scheme registered by the Commissioners for Her Majesty’s Revenue and Customs under Part 4 of the Finance Act 2004;

“SCAVCs” means shared cost additional voluntary contributions as referred to in regulation 22 (additional voluntary contributions);

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

“scheme actuary” means the actuary appointed from time to time by the Scottish Ministers to provide a consulting service on actuarial matters relevant to these Regulations;

“Scheme employer” means a body listed in Schedule 2 (but see regulation 6(6));

“Scheme function” means any function under the Regulations which constitute the Scheme;

“shareable rights”, for the purposes of Part 10, has the meaning given by section 27(2) of the 1999 Act;

“teachers' scheme” means an occupational pension scheme made under section 9 of the Superannuation Act 1972 (superannuation of teachers);

“transfer day”, for the purposes of Part 10, has the meaning given in regulation 87(4);

“transferee”, for the purposes of Part 10, has the meaning given by section 29(8) of the 1999 Act;

“transferor”, for the purposes of Part 10, has the meaning given by section 29(8) of the 1999 Act;

“trustees or managers”, for the purposes of Part 10, has the meaning given by section 46(1) of the 1999 Act;

“total membership” means the aggregate of periods of membership which count as such under regulation 7 (periods of membership) of the Benefits Regulations; and

“variable time employee” and “whole time employee” have the meanings given in regulation 2 (interpretation) of the Benefits Regulations.

Regulation 3(2)

SCHEDULE 2SCHEME EMPLOYERS

A local authority.
A joint board or joint committee appointed under any enactment, order or scheme, all the constituent authorities of which are local authorities.
The body known as Scottish Water established under section 20 of the Water Industry (Scotland) Act 2002(23).
The Scottish Children’s Reporter established under section 128 of the Local Government etc (Scotland) Act 1994.
The Scottish Environment Protection Agency established under section 20 of the Environment Act 1995(24).
A board of management of a college of further education established in terms of Part 1 of the Further and Higher Education (Scotland) Act 1992(25).
A board of management of a self governing school constituted and incorporated under section 19(2) of the Self governing Schools etc. (Scotland) Act 1989(26).
The Strathclyde Passenger Transport Authority established under section 40(1) of the Local Government etc (Scotland) Act 1994.
The Strathclyde Passenger Transport Executive established under section 9(1) of the Transport Act 1968(27) or any subsidiary thereof.
Visit Scotland, established under section 1(1) of the Development of Tourism Act 1969(28).
A Transport Partnership created by virtue of an order under section 1 of the Transport (Scotland) Act 2005(29).
The Scottish Police Services Authority established under section 1(1) of the Police, Public Order and Criminal Justice (Scotland) Act 2006(30).

Regulation 5(7)

SCHEDULE 3MATTERS TO BE INCLUDED IN ADMISSION AGREEMENTS WITH TRANSFEREE ADMISSION BODIES

1. A requirement for the transferee admission body to pay to the administering authority all contributions and payments due under these Regulations and the Benefits Regulations.

2. If required by regulation 5(5), a reference to the indemnity or bond in accordance with regulation 5(6) and a warranty from the transferee admission body that such an indemnity or bond is in place.

3. A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in these Regulations, the Benefits Regulations, the Transitional Regulations and in any employer’s guide published by the administering authority and provided to that body.

4. An undertaking from the transferee admission body to the administering authority that it will not do anything to prejudice the status of the Scheme as a registered scheme.

5. A representation and warranty from the transferee admission body to the administering authority that all the body’s employees who are members are employed in connection with the provision of a service or assets mentioned in regulation 5(2).

6. An undertaking from the transferee admission body that it will promptly notify the administering authority in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy or in the interest of efficiency.

7. A requirement that the transferee admission body notifies the administering authority of each occasion on which it exercises a discretion under these Regulations, the Benefits Regulations or the Transitional Regulations and the manner in which it exercises that discretion.

8. A requirement that the transferee admission body–

(a)notifies the administering authority of any matter which may affect, or is likely to affect, its participation in the Scheme; and

(b)gives immediate notice to that authority of any actual or proposed change in its status which may give rise to a termination,

and, for these purposes, a termination includes a take over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of the body’s business or constitution.

9. A provision–

(a)for automatic termination of the admission agreement, as required by regulation 6(2), if the transferee admission body ceases to be such a body; and

(b)otherwise for a minimum period of three month’s notice to terminate the agreement.

10. A right for the administering authority to terminate the agreement in the event of–

(a)the insolvency, winding up or liquidation of the transferee admission body;

(b)a breach by that body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time);

(c)the withdrawal of approval by the Inland Revenue to the participation of that body as a Scheme employer; or

(d)a failure by that body to pay any sums due to the fund within a reasonable period after receipt of a notice from the administering authority requiring it to do so.

11. A requirement that the admission agreement in its final form must be available for public inspection at the appropriate offices of the administering authority.

12. In relation to a transferee admission body under regulation 5(2)(a)–

(a)a reference to the date of the contract, other arrangement or direction by which the body met the requirements of that regulation;

(b)a provision whereby the Scheme employer may set off against any payments due to the body an amount equal to any overdue employer and employee contributions and other payments (including interest payable under these Regulations) due from the body as an employing authority;

(c)a provision requiring the Scheme employer to keep under assessment the level of risk arising as a result of the matters mentioned in regulation 5(5);

(d)provision that where a representation or notification must be given to an administering authority under paragraph 5, 6, 7 or 8, it must also be given to the Scheme employer; and

(e)where the Scheme employer is not also the administering authority, a requirement that the admission agreement in its final form must be available for public inspection at the appropriate offices of that employer.

Regulation 28

SCHEDULE 4APPROPRIATE FUNDS

Part I

1. The appropriate fund for a member is the fund specified in column 2 of the following Table for a member of such member’s description.

2. But where a member is within paragraph 5 of that Table, the Scottish Ministers may by direction substitute another fund (“the substituted fund”).

3. Before giving a direction under paragraph 2 Scottish Ministers must consult with any bodies appearing to them to be affected by the proposed direction.

4. The direction may require the making of financial adjustments between the funds, whether by way of a payment to the substituted fund or of a transfer of assets or both.

5. It may also contain provision as to the transfer of liabilities to the substituted fund and any other consequential and incidental matters.

6. Where an administering authority have established an admission agreement fund under regulation 29 (admission agreement funds)–

(a)references in this Schedule and in regulation 28 (appropriate funds) to the fund are to the fund maintained by that authority under regulation 26 (pension funds); and

(b)in relation to a member employed by a body specified in the notice required by regulation 29(3), the appropriate fund is the admission agreement fund.

TABLE

Member	Appropriate fund
1. An employee of an administering authority	Fund maintained by that authority
2. A member falling within the Table in Part II of this Schedule	Fund specified for him or her in that table
3. An employee of a company under the control of a Scheme employer specified in Schedule 2	Fund which is appropriate fund for employees of that Scheme employer
4. An admission agreement employee	Fund maintained by the administering authority with whom the admission agreement making him or her eligible for membership was made.
5. Members for whom no fund is specified by paragraphs 1 4	Fund maintained by the administering authority within whose local government area all or most of the member’s employing authority’s area lies

Part II –Miscellaneous Authorities

Member	Appropriate fund
1. Former employee of East of Scotland Water Authority who transferred to Scottish Water on 1st April 2002.	Fund maintained by City of Edinburgh Council
2. Employee of Scottish Water who commenced employment on or after 1st April 2002 and whose pay notice is prepared in the Edinburgh premises of Scottish Water.
3. Former employee of West of Scotland Water Authority who transferred to Scottish Water on 1st April 2002.	Fund maintained by Glasgow City Council
4. Employee of Scottish Water who commenced employment on or after 1st April 2002 and whose pay notice is prepared in the Glasgow premises of Scottish Water.
5. Former employee of North of Scotland Water Authority who transferred to Scottish Water on 1st April 2002.	Fund maintained by Aberdeen City Council
6. Employee of Scottish Water who commenced employment on or after 1st April 2002 and whose pay notice is prepared in the Inverness premises of Scottish Water.
7. Employee of Scottish Children’s Reporter Administration.	Fund maintained by Falkirk Council
8. Employee of Scottish Environment Protection Agency.	Fund maintained by Falkirk Council
9. Employee of Strathclyde Passenger Transport Authority.	Fund maintained by Glasgow City Council
10. Employee of Strathclyde Passenger Transport Executive.	Fund maintained by Glasgow City Council
11. Former employee of Argyll, the Isles, Loch Lomond, Stirling and Trossachs Tourist Board.	Fund maintained by Falkirk Council
12. Former employee of Scottish Homes.	Fund maintained by City of Edinburgh Council
13. Former employee of the Scottish Special Housing Association.	Fund maintained by City of Edinburgh Council
14. Employee of the South East of Scotland Transport Partnership, other than an employee who falls within entries 15 to 17 below.	Fund maintained by City of Edinburgh Council
15. Former employee of Clackmannanshire Council or Falkirk Council who transferred to the South East of Scotland Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Falkirk Council
16. Former employee of Fife Council who transferred to the South East of Scotland Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Fife Council
17. Former employee of Scottish Borders Council who transferred to the South East of Scotland Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Scottish Borders Council.
18. Employee of the Central and Tay Transport Partnership, other than an employee who falls within entry 19 below.	Fund maintained by Dundee City Council
19. Former employee of Stirling Council who transferred to the Central and Tay Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Falkirk Council
20. Employee of the Highlands and Islands Transport Partnership other than an employee who falls within entries 21 to 23 below.	Fund maintained by Highland Council
21. Former employee of Argyll and Bute Council who transferred to the Highlands and Island Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by City of Glasgow Council
22. Former employee of Moray Council who transferred to the Highlands and Islands Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Aberdeen City Council
23. Former employee of Orkney Islands Council who transferred to the Highlands and Islands Transport Partnership as a consequence of an order made under section 2 or 10 of the Transport (Scotland) Act 2005.	Fund maintained by Orkney Islands Council
24. Employee of the Scottish Police Services Authority, other than an employee who falls within entries 25 to 31 below.	Fund maintained by City of Glasgow Council
25. Former employee of Fife Police Authority who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Fife Council
26. Former employee of Lothian and Borders Joint Police Board who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by City of Edinburgh Council
27. Former employee of Dumfries and Galloway Police Authority who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Dumfries and Galloway Council
28. Former employee of Tayside Joint Police Board who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Dundee City Council
29. Former employee of Central Scotland Joint Police Board who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Falkirk Council
30. Former employee of Northern Joint Police Board who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Highland Council
31. Former employee of Grampian Joint Police Board who transferred to the Scottish Police Services Authority by virtue of a staff transfer order under paragraph 2 of Schedule 3 to the Police Public Order and Criminal Justice (Scotland) Act 2006.	Fund maintained by Aberdeen City Council
32. Employee of VisitScotland, other than an employee who is a former employee of the Scottish Network 1 Tourist Board or the Scottish Network 2 Tourist Board who transferred to VisitScotland by virtue of paragraph 1 of Schedule 1 to the Tourist Boards (Scotland) Act 2006 and who was a member of the Scheme at the date of that transfer, for whom the appropriate fund is set out at entries 33 to 43 below.	Fund maintained by City of Edinburgh Council
33. Former employee of the Scottish Network 1 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Dumfries network area.	Fund maintained by Dumfries and Galloway Council
34. Former employee of the Scottish Network 1 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Edinburgh network area.	Fund maintained by City of Edinburgh Council
35. Former employee of the Scottish Network 1 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Glasgow or Prestwick network area.	Fund maintained by City of Glasgow Council
36. Former employee of the Scottish Network 1 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Selkirk network area.	Fund maintained by Scottish Borders Council
37. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Aberdeen network area.	Fund maintained by Aberdeen City Council
38. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Dundee or Perth network area.	Fund maintained by Dundee City Council
39. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Kirkwall network area.	Fund maintained by Orkney Islands Council
40. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Lerwick network area.	Fund maintained by Shetland Islands Council
41. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Markinch network area.	Fund maintained by Fife Council
42. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Stornoway or Strathpeffer network area.	Fund maintained by Highland Council
43. Former employee of the Scottish Network 2 Tourist Board who worked at the date of the transfer to VisitScotland in the VisitScotland Stirling network area.	Fund maintained by Falkirk Council

Regulation 71

SCHEDULE 5COUNCILLOR MEMBERS

BENEFITS

Preliminary

1. Omit regulation 43 (permanent reductions in pay).

Retirement benefits

2.—(1) Regulation 13(1) (re employed and rejoining deferred members) shall only apply to a councillor member in respect of any councillor membership where both the former membership and the membership as an active member referred to in that paragraph are councillor membership in the same appropriate fund.

(2) Omit regulation 13(8)(c).

3. Omit regulation 14 (concurrent employments).