The Firefighters’ Pension Scheme (Scotland) Regulations 2015

PART 8 Contributions

CHAPTER 1 Member contributions

Member contributions

110.—(1) Subject to regulations 111 to 113 (contributions during absences), an active member of this scheme must pay contributions to the scheme in respect of a scheme employment at the contribution rate applicable to the annual pensionable pay that member is receiving in the pay period in which 1st April falls for that employment (or in the case of an active member whose membership commences after 1st April in any year, on the annual pensionable pay the member receives at the commencement of that membership).

(2) For the purposes of paragraph (1), the contribution rates are to be specified in scheme regulations made under the 2013 Act by the Scottish Ministers.

(3) In these Regulations, “member contributions” means contributions which an active member may pay under this regulation and regulations 111 to 113 (contributions during absences from work).

Contributions during absence from work due to illness, injury, trade dispute or authorised absence

111.—(1) An active member away from scheme employment by reason of illness or injury must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the amount of any pensionable pay received, including statutory pay.

(2) If an active member is absent from scheme employment by reason of illness or injury and is not entitled to receive pensionable pay (including statutory pay) for any period, that member may pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the amount of pay received immediately before the cessation of pay and if required by the scheme employer, pay the amount of employer contribution which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

(3) If an active member is absent on a trade dispute, the member may elect to pay the contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving and if required by the scheme employer, pay the amount of employer contribution which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

(4) If an active member is away from work during a period of authorised unpaid absence, the member may elect to pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving and if required by the scheme employer, pay the amount of employer contributions which the scheme employer would otherwise be required to pay by regulation 117(3) (employer contributions).

(5) Where paragraph (2), (3) or (4) applies, the contributions must be paid before the end of the period of six months starting with the date on which the member is treated as receiving assumed pensionable pay.

Contributions during absence from work on reserve forces service leave

112.—(1) An active member (P), who is on reserve forces service leave and who is treated as receiving assumed pensionable pay, must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions).

(2) The amount of the contributions paid is calculated by multiplying the contribution rate by the lesser of the following amounts—

(a) assumed pensionable pay;

(b) the total of the actual pay received and any additional payment made by the scheme employer.

Contributions during child-related leave

113.—(1) An active member on child-related leave must pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by any pensionable pay received, including statutory pay but that pay does not include any amount that reduces the member’s actual pensionable pay on account of possible entitlement to statutory pay.

(2) If an active member is on ordinary maternity leave, paternity leave or ordinary adoption leave and is not entitled to receive pensionable pay (including statutory pay) for any of that period, that member is treated for the purposes of these Regulations as if that member had paid contributions for that unpaid period under paragraph (1).

(3) An active member on additional maternity leave, additional paternity leave, additional adoption leave or parental leave who is not entitled to receive any pensionable pay (including statutory pay) for any of the period of child-related leave, may elect to pay contributions at the contribution rate ascertained in accordance with regulation 110 (member contributions) multiplied by the assumed pensionable pay that member is treated as receiving.

(4) An election to pay contributions may only be made before the end of the period of 30 days starting with the date on which that member returns to work after the period of child-related leave, or if the member does not return to work, the day on which the member ceases to be employed by the employer.

Deduction and payment of contributions

114.—(1) The contributions required to be paid under regulation 110 (member contributions) may be deducted by the scheme employer from each instalment of pensionable pay as it becomes due unless another method of payment has been agreed between the scheme manager and the member.

(2) Contributions required to be paid under regulation 112(1) (contributions during absence from work on reserve forces service leave) may be deducted from any payment made under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951(1), to the extent that they are payable in respect of the same period.

(3) Contributions which the member has elected to pay, or is required to pay, under regulations 111 (contributions during absence from work due to illness, injury, trade dispute or authorised absence) and 113 (contributions during child-related leave) may be paid by a lump sum or by deduction from instalments of pensionable pay as agreed between the scheme manager and the member.

Schedule 1 (payments for added pension)

115.  Schedule 1 has effect (including as to the deduction of payments for added pension).

CHAPTER 2 Refund of member contributions

Refund of all member contributions and payments for extra pension made by member

116.—(1) This regulation applies in relation to a continuous period of pensionable service under the scheme.

(2) All member contributions and payments resulting from the election to make additional pension contributions under Schedule 1 are refundable if—

(a) regulation 15 (opting out before the end of the first three months) applies; or

(b) the member ceases to be in pensionable service under this scheme and—

(i) the member has less than three months qualifying service,

(ii) if a transfer payment has been received by this scheme in relation to the member, it was from another occupational pension scheme, and

(iii) the member has not reached GMP age under this scheme.

(3) If paragraph (2)(b) applies, the member is entitled to be paid an amount equal to the sum of any member contributions and payments for added pension made by the member, less an amount equal to the income tax payable under section 205 of FA 2004 (short service refund lump sum charge) as a result of a refund of those contributions and payments.

(4) If all member contributions and payments for added pension made by the member are refunded under this regulation, the member’s rights under this scheme in relation to the period of pensionable service are extinguished.

CHAPTER 3 Employer contributions

Employer contributions

117.—(1) The Scottish Ministers must determine after consultation with the scheme actuary the employer contribution rate.

(2) The employer of an active member of this scheme must pay contributions at the employer contribution rate on that member’s pensionable earnings.

(3) The employer of an active member who is treated under regulation 18 (meaning of “assumed pensionable pay”) as receiving assumed pensionable pay must pay contributions at the employer contribution rate of the assumed pensionable pay that the member is treated as receiving.

(4) The Scottish Ministers must notify the authority of the employer contribution rate and the date from which this will take effect.

(5) In these Regulations, “employer contribution” means the contributions payable under paragraph (2) or (3) of this regulation.

Employer additional contribution: ill-health award

118.—(1) Where a member has retired with an entitlement to the immediate payment of a higher tier ill-health pension and a lower tier ill-health pension under regulation 65(2) (entitlement to lower tier ill-health pension and higher tier ill-health pension), the authority must pay a higher tier ill-health additional contribution.

(2) The amount of the higher tier ill-health additional contribution is the amount determined and notified to the authority by the Scottish Ministers.

(3) Where a member has retired with an entitlement to the immediate payment of a lower tier ill-health pension and without any entitlement to a higher tier ill-health pension, the authority must pay a lower tier ill-health additional contribution.

(4) The amount of the lower tier ill-health additional contribution is the amount determined and notified to the authority by the Scottish Ministers.

(5) The employer must pay the higher tier ill-health additional contribution or the lower tier ill-health additional contribution, as the case may be, in equal instalments due on—

(a) the date on which the member retires;

(b) 1st April of the financial year following the financial year in which the first instalment was paid;

(c) 1st April of the financial year following the financial year in which the second instalment was paid.

Refund of employer additional contribution for ill health award following review

119.—(1) Subject to paragraph (2), where the scheme manager has considered the entitlement of a member (P) to an ill-health award under regulation 68 (review of ill-health award or early payment of retirement pension) and as a consequence of that review the entitlement of P to either a higher tier ill-health pension or a lower tier ill-health pension has ceased, or the entitlement of P to both pensions has ceased, the scheme manager must pay the amount in paragraph (3) or (5), as the case may be, to the authority.

(2) Where the authority has paid all the instalments of higher tier ill-health additional contributions required by regulation 118 (employer additional contribution: ill-health award), the scheme manager is not required to pay the authority the amount mentioned in paragraph (3).

(3) Where P, as a result of a review under regulation 68 (review of ill-health award or early payment of retirement pension), ceases to be entitled to a higher tier ill-health pension and remains entitled to a lower tier ill-health pension, the scheme manager must pay an amount equal to the difference between the instalments of higher tier ill-health additional contribution which have been paid under regulation 118(1) (employer additional contribution: ill-health award) and the instalments of the lower tier ill-health additional contribution which would have been required to be paid under regulation 118(3) if only the lower tier ill-health pension had been payable (“the notional payment”).

(4) The scheme manager must determine the amount of the notional payment payable under paragraph (3).

(5) Where P, as a result of a review under regulation 68 (review of ill-health award or early payment of retirement pension), ceases to be entitled to a higher tier ill health pension and to a lower tier ill-health pension or to a lower tier ill-health pension as the case may be and the authority has not paid all the instalments of higher tier ill-health pension or lower tier ill-health pension as required by regulation 118 (employer additional contribution ill-health award), the scheme manager must repay to the authority any instalments of higher tier ill-health additional contribution or lower tier ill-health additional contribution as the case may be, which have been paid in respect of P and no further instalments will be due in respect of P.

Employer additional contribution: employer initiated retirement

120.—(1) Where the authority has made a determination under regulation 62 (employer initiated retirement) to pay an active member who has not attained normal pension age a pension calculated in accordance with regulation 59 (annual rate of retirement pension (active members)) without making the early payment reduction, the authority must pay the employer initiated retirement additional contribution.

(2) The amount of the employer initiated retirement additional contribution is calculated in accordance with actuarial guidance and that actuarial guidance must have regard to the difference between the pension that is payable under regulation 62 (employer initiated retirement) and the pension payable under regulation 59 (annual rate of retirement pension (active members)) reduced in accordance with regulation 61(3) (early payment reduction).

(1)

1951 c.65.