15.—(1) Where an authorised provider or a selected authorised provider fails to pay a benefit referred to in regulation 11(1) or a lump sum benefit referred to in regulation 13, the Scottish Ministers are liable to pay that amount.
(2) Where, on or after 1st June 2018, a participator or a person entitled to a pension credit elects for benefits to be provided by an authorised provider other than the one selected by the Scottish Ministers, the Scottish Ministers are not be liable under paragraph (1).
(3) Lump sums payable as mentioned in regulation 12(8)(f) and (12) and regulation 13, or paragraphs 3(2), 8 or 9 of the schedule, are to be paid—
(a)to the deceased’s spouse or civil partner or surviving scheme partner; or
(b)to the deceased’s personal executors if—
(i)there is no spouse, surviving scheme partner or civil partner; or
(ii)a notice has been given in accordance with any of the provisions referred to in paragraph (4) that the spouse, nominated partner or civil partner is not to receive the payment.
(4) The provisions referred to in paragraph (3)(b) are—
(a)regulation F5 of the 2011 Regulations (payment of lump sum);
(b)regulation 2.E.22 or 3.E.22 of the 2013 Regulations (payment of lump sums or pensions on death);
(c)regulation 111 of the 2015 Regulations (lump sum on death); and
(d)paragraph 11 of the schedule.
(5) Lump sums payable under regulations 12(1)(b), (c) and (d) and 14(1) must be paid to the participator.
(6) Subject to paragraph (7) below, in the case of a participator to whom any of the provisions referred to in paragraph (7) apply, the Scottish Ministers may realise such part of the investments made under these Regulations as is derived from any contributions made by the participator’s employer without purchasing an annuity and, in that event, the amount is payable to the participator as a lump sum.
(7) The provisions referred to in paragraph (6) are—
(a)regulation E1 to E12 of the 2011 Regulations;
(b)regulation 2.D.1, 2.D.4, 2.D.5, 2.D.8, 2.D.10, 2.D.11, 3.D.1, 3.D.4, 3.D.5, 3.D.7, or 3.D.9 of the 2013 Regulations; and
(c)regulation 72, 78, 80, 81, 83, 89 or 93 of the 2015 Regulations.
(8) In the case of a participator to whom any of the following provisions apply—
(a)regulation E2(8), E3(7) or E12(7) of the 2013 Regulations;
(b)regulation 2.D.15 or 3.D.11 of the 2013 Regulations; or
(c)regulation 108 of the 2015 Regulations,
the Scottish Ministers may realise the investments made under these Regulations without purchasing an annuity and, in that event, the proceeds are payable to the participator as a lump sum.