N5.—(1) In the case of a member to whom regulation B6 applies, this regulation applies for the purpose of calculating the amount of the transfer payment by reference to which an additional period of pensionable service may be credited by the Scottish Ministers to that member.
(2) Subject to paragraphs (3) and (4), the transfer payment in respect of which an additional period of pensionable service may be credited by the Scottish Ministers to a member referred to in paragraph (1) shall be calculated in a manner that is consistent with the actuarial methods and assumptions used by the Scottish Ministers to calculate cash equivalents under regulation M3 (amount of members cash equivalent) in the case of transfers that are not made under the Public Sector Transfer Arrangements and will be of an amount equal to the total amount of—
(a)an amount which would enable the member to be credited by this Section of the scheme with such additional period of pensionable service as the Scottish Ministers may approve in respect of the period during which the member made contributions to a personal pension scheme (“the relevant scheme”);
(b)the amount of the cash equivalent, if any, which the member transferred to the relevant scheme by exercising a right under regulation M2 (exercising a right to transfer or buy-out) (“the transferred rights”); and
(c)an amount, to be determined from time to time by the scheme actuary, which represents the income which would have been received on the amount referred to in sub-paragraph (b) had that amount been invested during the period commencing at the end of the month in which it was paid by this Section of the scheme to the relevant scheme and ending at the end of the month in which the transfer payment was paid to this Section of the scheme by the relevant scheme.
(3) The amount, if any, payable by virtue of paragraphs 2(b) and (c) will be at least equal to the amount of the cash equivalent transfer value which would be payable by this Section of the scheme in respect of the transferred-out service if this Section of the scheme were to pay a cash equivalent transfer value in respect of that service immediately after the time at which the transfer payment is paid to this Section of the scheme by the relevant scheme.
(4) In the case of a member to whom regulation B6 applies who has been credited with an additional period of pensionable service calculated as specified in regulation N4 (transfers that are not made under the Public Sector Transfer Arrangements), the Scottish Ministers may adjust the amount of the transfer payment referred to in paragraph (2) on account of the payment by reference to which that pensionable service was credited.
(5) In this regulation—
“personal pension scheme” has the same meaning as in regulation B6;
“transfer payment” means the payment payable to this Section of the scheme by the relevant scheme in respect of a member to whom regulation B6 applies who elects to join or rejoin this Section of the scheme; and
“transferred-out service” means the period of pensionable service which the member transferred-out of this Section of the scheme by exercising a right under regulation M2 (exercising a right to transfer or buy-out)