The Local Government Superannuation (Scotland) Regulations 1987

PART IV

1.  The transfer value payable under regulation Q2(1) in respect of a person is to be calculated in accordance with the following formula if the service he is entitled to reckon in his new local government employment which he was also entitled to reckon in his previous local government employment exceeds 182 days—

where—

• T is the amount of the transfer value;

• F is the amount shown in column (2) of the following Table applicable to his age as set out in column (1) when he ceased to be employed in his previous local government employment,

  TABLE

  (1)	(2)
  (Age on ceasing to be employed in previous local government employment)	(Amount)
  	£
  Under 30	11
  30 to 39 (inclusive)	12
  40 to 49 (inclusive)	13
  50 and over	14;

• S is the length of the reckonable service in complete years ignoring any residual period of 182 days or less and taking any residual period which exceeds 182 days as a complete year;

• R is the annual rate of his remuneration of his previous local government employment at the date on which he ceased to be employed in that employment; and

• A is the amount of any additional contributory payments remaining outstanding when he ceased to be employed in his previous local government employment.

2.  In any case not falling within paragraph 1 the transfer value payable under regulation Q2(1) in respect of a person is to be calculated in accordance with the following formula—

• T = 2 × C, where—

• T is the amount of the transfer value; and

• C is the amount of the employer’s contributions in relation to the reckonable service,

but the amount of the transfer value shall be zero if the person becomes employed in his new local government employment on or after 1st October 1981.

3.  In ascertaining for the purposes of this Part the length of reckonable service which a person is or was entitled to reckon, the reckonable service is to count at the length at which it would reckon in calculating the amount of a retirement pension under regulation E2(1)(b)(ii), except that—

(a) any period of reckonable service which was reckonable under section 15 of the Act of 1937 (which related to teachers) is to be ignored;

(b) it is to be assumed that he had completed the payment of any additional contributory payments; and

(c) if additional contributions under regulation D10 of the 1974 Regulations (or any corresponding provision of an earlier enactment) or regulation C6 have been paid but not all those for which he was originally liable, the apportionment formula in paragraph 3 of Schedule 9 is to be applied.

4.  Subject to paragraph 5, in ascertaining for the purposes of this Part the annual rate of a persons remuneration at the date on which he ceased to be employed in his previous local government employment—

(a) the annual rate of any fluctuating element of his remuneration is to be estimated by reference to an average taken over a representative period;

(b) the annual rate of any benefit in kind included in his remuneration is to be the estimated annual value of the benefit in kind at the date on which he ceased to be employed;

(c) if at that date he had no remuneration or his remuneration was reduced because of absence from duty, the annual rate is to be taken to be the annual rate which would have applied if he had not been absent;

(d) if the annual rate of his remuneration is retrospectively altered as a result of a pay award promulgated by a national joint council or other negotiating body on or before the date on which he ceased to be employed, the annual rate of his remuneration is to be based on the retrospective pay award;

(e) if his remuneration is not calculated by reference to an annual rate but by reference to some other rate, the annual rate is to be derived from the applicable rate at the date on which he ceased to be employed;

(f) if his previous local government employment was part-time, the annual rate of remuneration of a single comparable whole-time employment is to be used; and

(g) if the annual rate of his remuneration exceeds £100 it is to be rounded down to the nearest £100.

5.  If—

(a) during the 13 years ending on the cessation of the person’s previous local government employment his remuneration was reduced; and

(b) his employing authority certified under regulation E24 that the reduction was in consequence of a material change in circumstances; and

(c) his annual rate of remuneration immediately before the reduction, ascertained on similar principles to those in paragraph 4, was greater than the annual rate of remuneration on the date on which he ceased to be employed in his previous local government employment,

it is to be assumed for the purposes of this Part that he was earning at the higher rate at the date on which he ceased to be employed in his previous local government employment.

6.  Where the person has made a payment to his new fund authority under regulation D1(2) or J9(3) of the 1974 Regulations or H8(3) of these Regulations, the transfer value payable under regulation Q2(1) is to be reduced by an amount equal to that payment.

7.  Compound interest calculated in accordance with regulation J7 is to be paid on the transfer value payable under regulation Q2(1) for the period beginning with the date on which the person ceased to be employed in his previous local government employment and ending on the date on which the transfer value is paid (but no interest is to be paid if that period is less than 6 months).