The Local Government Pension Scheme (Increased Pension Entitlement) (Miscellaneous Amendments) (Scotland) Regulations 2019

Amendment of the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008

9.  After regulation 44 insert—

“Increased Pension Entitlement

45.   Regulations 46 to 49 apply to a person who—

(a) was entitled to a pension under the scheme on 7 April 2018,

(b) was entitled to a guaranteed minimum pension on that date, and

(c) has in any tax year since entitlement to the guaranteed minimum pension commenced received a GMP-related payment.

GMP-related payment

46.— (1) Where, in any tax year, the relevant administering authority has—

(a) increased the annual rate of an official pension in accordance with the existing Order relevant to that tax year, but

(b) the amount by reference to which that increase is calculated is not reduced by the GMP-related reduction,

the GMP-related payment for that tax year is the amount equal to the GMP-related reduction in that tax year.

(2) The GMP-related reduction for any tax year is the reduction in the amount by reference to which any increase in the rate of an official pension is calculated by the amount calculated in accordance with—

(a) the existing Order for that tax year,

(b) section 59(5) and (5ZA) of the Social Security Pensions Act 1975(a), as modified by section 59A of that Act, as these sections have effect in relation to that tax year, and

(c) any direction made under section 59A of that Act which has effect in relation to that tax year.

Authorisation of GMP-related payments

47.— (1) The relevant administering authority may pay GMP-related payments to—

(a) a person to whom sections 45 to 49 apply, and

(b) a deceased entitled member.

(2) Where a relevant administering authority has paid GMP-related payments before 8 April 2019, the authority may not recover those payments on or after 8 April 2019.

(3) In this regulation, a deceased entitled member is a person who—

(a) at the date of his death was entitled to a pension under the scheme,

(b) at that date was entitled to a guaranteed minimum pension, and

(c) has in any tax year since entitlement to the guaranteed minimum pension commenced received a GMP-related payment.

Increased Pension Entitlement

48.— (1) Subject to paragraphs (3), (4) and (5), a person to whom regulations 46 to 49 apply is entitled to an Increased Pension Entitlement calculated in accordance with paragraph (2).

(2) The Increased Pension Entitlement is an amount equal to the basic rate of a pension which, if that pension had been increased by the amount of any increase under section 1 of the 1971 Act and the existing Orders, would result in an annual amount being paid to the person in relation to the tax year 2019-20 which equals the Protected Sum.

(3) Where the person’s pension is terminated under the scheme, the person is not entitled to receive any payment of an amount of the Increased Pension Entitlement in respect of any period after the date on which the pension is terminated.

(4) Where a person’s pension is not payable to the person, the person is not entitled to receive any payment of an amount of the Increased Pension Entitlement during any period when the pension is not payable to the person.

(5) Where the person’s pension, or any proportion of the pension, is forfeited, either permanently or temporarily, the same proportion of the person’s Increased Pension Entitlement is forfeited for the same period of time.

(6) For the purposes of paragraph (2) of this regulation, “pension” has the meaning given by section 8 of the 1971 Act and begins at the time stated in section 8(2) of that Act.

(7) In this regulation—

(a) “Protected Sum” is the amount equal to the annual amount of the GMP-related payment for the tax year 2019-20, and

(b) the annual amount of the GMP-related payment for the tax year 2019-20 is the amount equal to the GMP-related payment that the relevant administering authority would have paid to the person in the tax year 2019-20 if that authority had, in relation to that complete tax year, applied the existing Orders as if the person was not entitled to a guaranteed minimum pension or was entitled to the original guaranteed minimum pension awarded prior to the reconciliation exercise.

Increased Pension Entitlement – further provision

49.— (1) An Increased Pension Entitlement is payable by the relevant administering authority and shall be paid out of the appropriate fund.

(2) An Increased Pension Entitlement is payable for life and shall be discharged by payments at such reasonable intervals as the administering authority may, in their discretion, determine except that payment on account of an Increased Pension Entitlement may be delayed, in whole or in part, pending the determination of any question as to the liability of the administering authority in respect thereof, including any question as to the continuance of that liability.

(3) Neither the Increased Pension Entitlement nor any portion of that entitlement may be commuted for a lump sum.”.