Calculating amounts of transfer value payments
3.F.6.—(1) Subject to paragraphs (2), (3) and (5), the amount of the guaranteed cash equivalent transfer value payment is to be calculated and verified by the Scottish Ministers in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 1996(1).
(2) Before determining the factors to be used in the calculation of the member’s guaranteed cash equivalent transfer value payment, the Scottish Ministers must take advice from the scheme actuary.
(3) Subject to paragraph (5), if the amount calculated in accordance with paragraph (1) is less than the member’s minimum transfer value (if any), the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.
(4) In paragraph (3) “minimum transfer value” means—
(a)in the case of a person other than a 2008 Section Optant, the sum of—
(i)any transfer value payments that have been made to this Section of the scheme in respect of the person as a result of which the person is entitled to count any pensionable service under this Section of the scheme by reference to which the accrued rights subject to the transfer are calculated; and
(ii)any contributions paid by the person under Chapter 3.C (contributions) as a result of which the person is entitled to count such service; and
(b)in the case of a 2008 Section Optant, the sum of—
(i)any transfer value payments that have been made to the 1995 Section in respect of the Optant;
(ii)any contributions paid by the Optant under regulation D1 (contributions by members) of the 2011 Regulations (as modified by paragraph 14 of Schedule 1 to those Regulations) in respect of pensionable employment in that Section on or before 31st March 2008; and
(iii)any payments made by the Optant under regulation Q1 (right to buy additional service) of the 2011 Regulations (as modified by paragraph 26 of Schedule 1 to those Regulations) for the purchase of additional service,
which entitle the Optant to count, under Chapter 3.K of this Section of the scheme, any pensionable service by reference to which the accrued rights subject to the transfer are calculated.
(5) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is to be calculated—
(a)in accordance with those arrangements rather than paragraphs (1) and (3); and
(b)by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph that are in use on the date used for the calculation; and
(c)separately in respect of—
(i)the aggregate of any amounts of pensionable earnings that the member is entitled to count for the purpose of calculating benefits payable to, or in respect of, the member that fall to be treated as—
(aa)a capped increase to pensionable earnings in accordance with regulation 3.F.12 (meaning of capped increase); or
(bb)an amount of capped Optant pensionable earnings in accordance with regulation 3.K.9 (pensionable earnings to be treated as capped); and
(ii)any amount of pensionable earnings that do not fall to be so treated.
(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.10.