The Firefighters’ Pension Scheme (Scotland) Regulations 2015

CHAPTER 7 Deferred member’s account

Application of chapter

43.—(1) This Chapter applies in relation to a continuous period of pensionable service under this scheme.

(2) For a person who is a deferred member of this scheme in relation to two or more continuous periods of pensionable service, this Chapter applies separately in relation to each of those periods of service.

Establishment of deferred member’s account

44.—(1) This regulation applies when an active member of this scheme becomes a deferred member of this scheme.

(2) The scheme manager must—

(a) close the active member’s account for that period of service; and

(b) establish a pension account for the deferred member for that period of service.

(3) For the purpose of these Regulations, an account established under paragraph (2)(b) is called a deferred member’s account.

Provisional amount of deferred pension

45.—(1) The deferred member’s account must specify the provisional amount of deferred pension.

(2) The provisional amount of deferred pension is the sum of—

(a) the amount of accrued earned pension calculated under regulation 23(3) (calculation of amount of accrued pension for purpose of deferment or retirement) (“accrued amount”);

(b) the retirement index adjustment for the accrued amount; and

(c) the assumed age addition (if any) for the accrued amount.

(3) The retirement index adjustment is not applied in relation to the amount of accrued earned pension if a transfer payment was made before the end of the last active scheme year in respect of the member’s rights to that accrued earned pension.

(4) The assumed age addition applies in relation to a member who reaches normal pension age under this scheme at least one month before the last day of pensionable service.

Retirement amount of deferred pension

46.—(1) This regulation applies when a deferred member of this scheme becomes entitled to the immediate payment of a retirement pension for a period of service.

(2) The deferred member’s account must specify the retirement amount of deferred pension.

(3) The retirement amount of deferred pension is the sum of—

(a) the amount of any accrued added pension transferred to the deferred member’s account;

(b) the retirement PIA index adjustment for the accrued added pension;

(c) the assumed age addition (if any) for the accrued added pension; and

(d) the provisional amount of deferred pension.

(4) For the retirement amount of deferred pension, the deferred member’s account must specify—

(a) the early payment reduction (if any);

(b) the commutation amount (if any); and

(c) the total allocation amount (if any).

Adjustment of account after early payment of deferred pension ceases

47.  When a deferred member who has received the early payment of a deferred pension under regulation 67 (early payment of retirement pension to deferred member) ceases to be entitled to the early payment of the deferred pension under regulation 69(7) (consequences of review), the scheme manager must make the necessary adjustments to the deferred member’s account.

Account established after ill-health award ceases to be payable

48.  If a lower tier ill-health pension ceases to be payable to a person (P) under regulation 69 (consequences of review) and P does not re-enter pensionable service—

(a) a deferred member’s account must be established; and

(b) that account must be credited with an amount equal to the annual rate of the lower tier ill-health pension payable immediately before the lower tier ill-health pension ceased to be payable.

Closure of deferred member’s account after gap in pensionable service not exceeding five years

49.—(1) This regulation applies when a deferred member of this scheme re-enters pensionable service under this scheme after a gap in pensionable service not exceeding five years.

(2) The scheme manager must—

(a) close the deferred member’s account in relation to that period of service and treat the deferred member’s account as if it were never established;

(b) re-establish the active member’s account under Chapter 5 in relation to that period of service; and

(c) make entries in the active member’s account as if, during the gap in pensionable service the member—

(i) was in pensionable service under this scheme, but

(ii) received no pensionable pay.

(3) Where a deferred member had more than one deferred member’s account which has been opened within five years of the date in paragraph (1), the member may within three months of the date of re-entering scheme employment select which deferred member’s accounts should be closed.

(4) If the deferred member fails to make the selection mentioned in paragraph (3), the scheme manager must select which of the deferred member’s accounts is to be closed.