The Local Government Pension Scheme Amendment (Scotland) Regulations 2010

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 (“the Administration Regulations”) and the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008 (“the Benefits Regulations”).

Regulations 3 to 6 amend the Administration Regulations. Regulation 3 amends regulation 27(2) of the Administration Regulations (governance compliance statement) to change the date by which the governance compliance statement must be published to 31st March 2011.

Regulation 4 inserts a new regulation 31A into the Administration Regulations (pension fund annual report) which requires administering authorities to publish a pension fund annual report and specifies what the report must contain, when it must be published and that in preparing and publishing such a report administering authorities must have regard to guidance given by the Scottish Ministers.

Regulation 5 amends regulation 42(1) of the Administration Regulations (exclusion of rights to return of contributions) to include a further restriction on the right to a refund of contributions in circumstances where a person holding two concurrent employments ceases to be an active member in one of them. A refund of contributions in such a scenario would result (due to the operation of paragraph 5 of Schedule 29 to the Finance Act 2004 (c.12)) in the remainder of the member’s benefits being extinguished. The amendment to regulation 42(1) prevents this.

Regulation 6 removes paragraph (6) of Schedule 5 to the Administration Regulations. Paragraph (6) of Schedule 5 erroneously disapplies regulation 21 of the Administration Regulations (discontinuance of additional regular contributions) in relation to councillor members.

Regulations 8 and 9 amend the Benefits Regulations. Regulation 8 amends regulation 9 of the Benefits Regulations (final pay: general) to clarify that pay for pension purposes means that pay received in the 12 months leading up to the date of leaving employment, or if it would produce a higher figure, either of the two immediately preceding years.

Regulation 9 amends regulation 30(1) of the Benefits Regulations (choice of payment of pension) by removing the words “or otherwise ceases to be a member” to clarify the effect of the provision.