SCHEDULES

Regulation 2(4)

SCHEDULE 1Interpretation

In these Regulations—

“active member” means a person who is in an employment, and—

(a)

paying contributions to the Scheme,

(b)

treated as paying contributions to the Scheme, or

(c)

absent from that employment for one of the reasons mentioned in regulation 11;

“actuarial guidance issued by the Scottish Ministers” means guidance identified by the Scottish Ministers as such which has been issued in accordance with regulation 2(3);

“additional maternity or adoption leave” means leave under section 73 or 75B of the Employment Rights Act 1996(1);

“additional paternity leave” means leave under the Additional Paternity Leave Regulations 2010(2);

“additional pension” means pension under these Regulations other than earned pension;

“administering authority” means a body listed in Schedule 3 which is required to hold a fund for the purposes of these Regulations;

“admission agreement” means an agreement between an administering authority and an admission body that named individuals, or all or any specified class of the admission body’s employees, may be members of the Scheme;

“admission body” has the meaning given in paragraph 1 of Part 2 of Schedule 2;

“amount of accrued pension” means the earned pension in a member’s pension account adjusted to take account of any revaluation adjustment applicable;

“amount of pension payable” means the earned and additional pension in a member’s pension account adjusted to take account of any revaluation adjustment, index rate adjustment, commutation amount or pension account adjustment applicable;

“annual allowance charge” has the meaning given to that expression by section 227 of the Finance Act 2004(3);

“assumed pensionable pay” has the meaning given by regulation 21;

“automatic enrolment date” means the automatic enrolment date within the meaning of section 3 of the Pensions Act 2008(4);

“automatic re-enrolment date” means—

(a)

for the purposes of regulation 3(5)(b), the automatic re-enrolment date chosen by a member’s employer in accordance with section 5 of the Pensions Act 2008 and regulation 12 of the Occupational and Personal Pensions Schemes (Automatic Enrolment) Regulations 2010 for those of its eligible jobholders who are not active members; and

(b)

for the purposes of regulation 10(5)(a), the automatic re-enrolment date chosen by a member’s employer in accordance with section 5 of the Pensions Act 2008 and regulation 12 of the Occupational and Personal Pensions Schemes (Automatic Enrolment) Regulations 2010 for those of its eligible jobholders who are not active members (or the date the employer would have chosen if the employer does not have any such employees);

“AVC” means a payment of additional voluntary contributions made under regulation 17;

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“benefit crystallisation event” has the meaning given by section 216 of the Finance Act 2004(5);

“child-related leave” means—

(a)

ordinary adoption leave;

(b)

ordinary maternity leave;

(c)

additional maternity or adoption leave during which the member receives some pensionable pay;

(d)

paternity leave; or

(e)

additional paternity leave during which the member receives some pensionable pay.

“children’s pension” means a pension payable to an eligible child in accordance with regulation 40, 43 or 46;

“cohabiting partner” means a person whom the appropriate administering authority is satisfied fulfils the following conditions—

(a)

the person (P) has fulfilled the condition in paragraph (b) for a continuous period of at least 2 years on the date the member (M) died; and

(b)

the condition is that—

(i)

M is able to marry, or form a civil partnership with P,

(ii)

M and P are living together as if they were husband and wife or as if they were civil partners,

(iii)

neither M nor P is living with a third person as if they were husband and wife or as if they were civil partners, and

(iv)

either P is financially dependent on M, or M and P are financially interdependent;

“commutation amount” means the amount of pension a member has elected to give up in return for a lump sum in accordance with regulation 32;

“deferred member” has the meaning given by regulation 6;

“deferred payment enhancement” means the amount by which a member’s entitlement is increased pursuant to regulation 29(4) or (11);

“dependent” in relation to a person means that in the opinion of the administering authority, at the date of the member’s death—

(a)

the person was financially dependent on the member;

(b)

the person’s financial relationship with the member was one of mutual dependence; or

(c)

the person was dependent on the member because of physical or mental impairment;

“early payment reduction” means the amount by which a member’s entitlement is reduced pursuant to regulation 29(5), (6) or (12);

“earned pension” means pension accrued from the member’s pensionable pay pursuant to regulation 23(4) or (5) or credited pursuant to regulation 99(1) (effect of acceptance of transfer value);

“eligible child”, in relation to a deceased member, means—

(a)

a natural or adopted child of a member who meets any of conditions A to C and who was born before, on, or in the case of a natural child, within 12 months of the member’s death; or

(b)

a step-child or child accepted by the deceased as a member of the family (excluding a child sponsored by the member through a registered charity) who—

(i)

meets any of conditions A to C; and

(ii)

was dependent on the member at the date of death.

Condition A is that the person is aged under 18.

Condition B is that the person is in full-time education or vocational training and has not reached the age of 23 (but an administering authority may continue to treat a person as fulfilling Condition B notwithstanding any break in a course of education or vocational training, although the person does not fulfil Condition B during such a break).

Condition C is that the person is unable to engage in gainful employment because of physical or mental impairment and either—

(i)

has not reached the age of 23; or

(ii)

the impairment is in the opinion of an IRMP likely to be permanent and the person was dependent on the member at the date of the member’s death because of that physical or mental impairment.

(iii)

“employment” for the purposes of these Regulations only shall include holding an office, with necessary modifications to these Regulations, if any, in respect of a person holding an office;

(iv)

“enactment” has the same meaning as in section 126(1) of the Scotland Act 1998(6);

“European pensions institution” has the same meaning as in section 293(8) of the Pensions Act 2004(7);

“gainful employment” means paid employment for not less than 30 hours in each week for a period of not less than 12 months;

“index rate adjustment” means the percentage increase that would apply if the balance in the member’s account were a pension in payment eligible for increase under the Pensions (Increase) Act 1971(8);

“IRMP” means an independent registered medical practitioner who is registered with the General Medical Council and—

(a)

holds a diploma in occupational health medicine (D Occ Med) or an equivalent qualification issued by a competent authority in an EEA state; and for the purposes of this definition, “competent authority” has the meaning given by section 55(1) of the Medical Act 1983(9); or

(b)

is an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equivalent institution of an EEA state;

“joint liability amount” has the meaning given to that expression by section 237B(3) of the Finance Act 2004(10);

“local government service” means an employment by virtue of which the person employed is or has been a member of the Scheme;

“membership” is to be construed in accordance with section 124(1) of the Pensions Act 1995(11);

“non-contractual overtime” means overtime above the hours of the standard full-time working week that the employee (part-time or full time) is not contracted to work;

“normal pension age” means the pensionable age of a person as specified from time to time in Schedule 4 to the Pensions Act 1995(12), or if higher, age 65;

“occupational pension scheme” has the meaning given by section 1 of the Pensions Schemes Act 1993(13);

“ordinary adoption leave” means leave under section 75A of the Employment Rights Act 1996(14);

“ordinary maternity leave” means leave under section 71 of the Employment Rights Act 1996;

“partner” in relation to an active member means a spouse, civil partner or cohabiting partner;

“paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002(15);

“payment period” means a period of service to which an employee’s wages or salary payments relate;

“pensionable age” has the meaning given in section 181 of the Pension Schemes Act 1993;

“pensionable pay” has the meaning given by regulation 20 but if the circumstances specified in regulation 21(2) apply, references in these Regulations to a member’s pensionable pay are references to that member’s assumed pensionable pay;

“pension account” means an account of the description in regulation 22;

“pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999(16);

“pension credit member” has the meaning given by regulation 8(1);

“pension debit” means a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999;

“pensioner member” has the meaning given by regulation 7(1);

“pensions board” means a board or committee established by an administering authority to discharge functions under regulation 51(4);

“pension sharing order” means any provision or order specified in section 28 of the Welfare Reform and Pensions Act 1999;

“Pensions Regulator” means the body corporate established under section 1 of the Pensions Act 2004(17);

“permanently incapable” means that the member will, more likely than not, be incapable until at the earliest the member’s normal pension age;

“public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993(18);

“qualifying recognised overseas pension scheme” has the meaning given by section 169(2) of the Finance Act 2004(19);

“qualifying service for a period of two years” has the meaning given by regulation 3(6);

“reference banks” means the seven largest persons for the time being who—

(a)

have permission under Part 4A of the Financial Services and Markets Act 2000(20) to accept deposits;

(b)

are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling,

and for the purposes of this definition, the size of the person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006(21)), as shown in the audited end-of-year accounts last published before that time;

“registered pension scheme” has the same meaning as in section 150(2) of the Finance Act 2004(22);

“reserve forces pay” means the total of—

(a)

pay for performing relevant reserve forces service (including marriage, family and similar allowances); and

(b)

any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951(23);

“reserve forces service leave” means absence from duty because of being called out or recalled for permanent service in Her Majesty’s armed forces pursuant to a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996(24);

“retirement pension” includes earned pension and additional pension;

“revaluation adjustment” means the percentage specified in the relevant Treasury order made under section 9(2) of the Public Service Pensions Act 2013(25) which is to be applied to the sum in a pension account at the beginning of the next scheme year;

“the Scheme” means the scheme established by these Regulations;

“Scheme employer” means a body listed in Schedule 2 employing an employee who is eligible to be a member and includes an admission body;

“Scheme employer’s consent” includes the consent of the appropriate administering authority in circumstances where the member’s former employer is no longer a Scheme employer;

“Scheme employment” means an employment by virtue of which a person is entitled to be a member of this Scheme;

“Scheme pays election” means a member giving the administering authority notice of joint and several liability under section 237B of the Finance Act 2004(26) in respect of the member’s annual allowance charge;

“Scheme year” means a period of one year beginning with 1st April and ending with 31st March;

“statutory pay” means any statutory maternity, paternity, adoption pay, or sick pay payable under the Social Security Contributions and Benefits Act 1992(27);

“survivor member” means a person entitled to a survivor pension or a children’s pension;

“survivor pension” means a pension payable under regulation 39, 40, 42, 43, 45 or 46;

“SCAVC” means an arrangement established under regulation 17 to which the Scheme employer has chosen to contribute in addition to contributions that the active member contributes;

“Tier 1 benefits” has the meaning given by regulation 34(5) calculated in accordance with regulation 37;

“Tier 2 benefits” has the meaning given by regulation 34(6) calculated in accordance with regulation 37;

“trade dispute” has the meaning given in section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992(28);

“transferred in benefit” means a benefit in a member’s pension account deriving from a transfer value payment;

“transfer value payment” means a payment made from the Scheme to another registered pension scheme or qualifying recognised overseas pension scheme, or a payment received by the Scheme from a registered pension scheme or from a European pensions institution.

(1)

1996 c.18; section 73 was substituted by the Employment Relations Act 1999; section 75B was inserted by the Employment Act 2002.

(2)

S.I. 2010/1055.

(3)

2004 c.12; section 227 has been amended by the Finance Act 2009 and the Finance Act 2011.

(4)

2008 c.30; section 3 was substituted by the Pensions Act 2011 and there have been further amendments which are not relevant to this instrument.

(5)

2004 c.12; section 216 has been amended by the Finance Acts 2005, 2006, 2008 and 2011.

(6)

1998 c.46.