The Local Government Pension Scheme (Scotland) Amendment Regulations 2005

Elections as to use of accumulated value of AVCs

25.  For regulation 65, substitute–

“65.— (1) Subject to paragraph (8), this regulation applies where a person–

(a) leaves his employment with the employer who was his employing authority when he made an election under regulation 59(1) or 59(11) without entitlement to the immediate payment of retirement benefits;

(b) stops being an active member without leaving that employment;

(c) leaves his employment with the employer who was his employing authority when he made an election under regulation 59(1) or 59(11) with entitlement to the immediate payment of retirement benefits–

(i) under regulation 24 (normal retirement) or 25 (redundancy etc.); or

(ii) by virtue of an election under regulation 30 (early payment); or

(d) becomes entitled to an ill-health pension under regulation 26.

(2) Subject to paragraph (7), a person must elect to have the accumulated value used–

(a) where paragraph (1)(a) applies to him, in one or more of the permissible ways; and

(b) where paragraph (1)(b) applies to him, in the way mentioned in paragraph (3)(b).

(3) The permissible ways are–

(a) to subscribe to an occupational pension scheme (other than the Scheme);

(b) to subscribe to a personal pension scheme (including an additional voluntary contributions scheme, other than an FSAVC scheme);

(c) to subscribe to a self-employed pension arrangement; or

(d) to purchase an appropriate policy from one or more AVC insurance companies.

(4) Where paragraph (1)(c) or (d) applies to a person, he may elect for the accumulated value to be used to provide additional pension for him under the Scheme, or partly to provide such pension for him.

(5) Where a member makes and election under paragraph (4), he becomes entitled to such additional pension as is shown as appropriate in guidance issued by the Government Actuary.

(6) The accumulated value may not be used to provide an additional lump sum benefit to the member unless it arises out of contributions made under any voluntary contributions scheme where the payments began before 8th April 1987.

(7) Where a person who has stopped being employed by an employing authority or being a member receives–

(a) a repayment of contributions under regulation 86; or

(b) a payment under regulation 87(2),

he must immediately be paid the accumulated value.

(8) A person who made an election under regulation 59(1) or 59(11) prior to 30th June 2005 shall continue to have the rights to make elections as to the use of the accumulated value as under the provisions of this regulation prior to its amendment by The Local Government Pension Scheme (Scotland) Amendment Regulations 2005 and accordingly, so far as is necessary to give effect to those rights and to make provision for any matters incidental to them, those provisions shall be treated as if they had continued in effect.

(9) In this regulation, “the accumulated value” means the accumulated value of the additional contributions invested under regulation 63(1).”.