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The Local Government Pension Scheme (Scotland) Regulations 1998

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Class B members and Class C members

3.  Paragraphs 4 to 6 set out limits on benefits in respect of local government employment payable to or in respect of a Class B member or Class C member under these Regulations and paragraph 7 limits additional contributions in some circumstances.

4.—(1) Subject to sub-paragraph (2), the aggregate pensions payable on retirement at NRD must not exceed the lesser of–

(a)for Class B members, one thirtieth of the member’s final remuneration multiplied by his years of service, or 20 years if less;

(b)for Class C members with less than 10 years service, the member’s final remuneration multiplied by the fraction specified below–

1 to 5 years1/60th for each year
6 years8/60ths
7 years16/60ths
8 years24/60ths
9 years32/60ths

(c)two thirds of the member’s final remuneration less the value of any retained benefits.

(2) However, if it results in a higher sum than the maximum under sub-paragraph (1), the maximum aggregate pension on retirement at NRD is one sixtieth of the member’s final remuneration multiplied by his years of service or 40 years if less.

(3) However, for a pension payable under regulation 26 the limit is the maximum pension payable under sub-paragraph (1) or (2), assuming the member had remained an active member until his NRD.

(4) For a pension payable under regulation 25 or 30, if it results in a higher sum, for the maximum under sub-paragraph (2) there is substituted an amount equal to the amount that would be the maximum under sub-paragraph (1) if the member had remained an active member until his NRD, multiplied by the fraction of which–

(a)the numerator is–

(i)the member’s years of service, or

(ii)40 years,

whichever is less; and

(b)the denominator is–

(i)his years of service, assuming he had remained an active member until his NRD, or

(ii)40 years,

whichever is less.

  • This amount may be increased by 5 per cent for each complete year, or in line with any increase in the retail prices index if greater, between the relevant date and the date on which the pension becomes payable.

(5) The aggregate pension payable on retirement after the member’s NRD must not exceed–

(a)the amount payable under sub-paragraph (1) or (2) on the basis that the actual retirement date was the member’s NRD;

(b)the amount that could have been payable under sub-paragraph (1) or (2) on retirement at NRD–

(i)with such an increase as an actuary appointed by the appropriate administering authority considers appropriate in view of the period of delay in payment between his NRD and the actual date the pension becomes payable, or

(ii)adjusted to reflect any increase in the general level of retail prices obtaining in Great Britain during that period;

(c)one sixtieth of the member’s final remuneration, multiplied by his increased period of membership,

whichever is the greatest.

(6) For sub-paragraphs (1) to (5) a member who is entitled to be paid a lump sum on retirement is treated as if he were entitled instead to be paid a pension on retirement of an annual amount equal to one twelfth of the lump sum.

(7) A member’s increased period of membership is the sum of–

(a)his total membership ending with his NRD; and

(b)his total membership after his NRD,

but must not exceed 45 years.

(8) The aggregate pension in respect of local government employment for a surviving spouse or eligible child of a member (other than a pension provided by surrender of the member’s own pension under regulation 32) payable or prospectively payable to that surviving spouse or eligible child shall not exceed–

(a)in the case of an active or deferred member, an amount equal to two thirds of the amount which would be payable under sub-paragraph (2), ignoring any retained benefits, if the member had retired under regulation 26 on the date of his death; and

(b)in the case of a pensioner member, an amount equal to two thirds of the amount payable at the date of death under sub-paragraph (1), (2), (3), (4) or (5) ignoring any retained benefits and increased in line with any subsequent increase in the retail prices index.

(9) If pensions are payable to more than one of the member’s surviving spouse and eligible children, the aggregate of all such pensions shall not exceed–

(a)on the death of an active member or deferred member the amount payable under sub-paragraph (3); and

(b)on the death of a pensioner member, the amount payable under sub-paragraph (1), (2), (3), (4) or (5).

5.—(1) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant for a Class B member on retirement at or before NRD must not exceed the lesser of–

(a)three times the initial pension paid to the member under Part II and Part III, excluding Chapter IV of Part III; and

(b)one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(2) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant on retirement at NRD for a Class C member must not exceed the lesser of–

(a)if the member has less than 20 years service, his final remuneration multiplied by the fraction set out in the table below–

Years of service to NRD80ths of final remuneration for each year
1 to 83
930
1036
1142
1248
1354
1463
1572
1681
1790
1899
19108

(b)one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(3) If it results in a higher sum than the maximum under sub-paragraph (1) or (2), the maximum aggregate retirement grant is three eightieths of the member’s final remuneration multiplied by each year of service or 40 years if less.

(4) However for a retirement grant payable under regulation 26, the limit is the maximum retirement grant payable under sub-paragraph (1), (2) or (3) assuming the member had continued as an active member until his NRD.

(5) The aggregate benefit payable to a Class C member by way of retirement grant before NRD is the greater of–

(a)three eightieths of the member’s final remuneration multiplied by his years of service or 40 years if less; and

(b)the maximum lump sum that could have been payable on retirement at NRD under sub-paragraph (2) multiplied by the fraction of which–

(i)the numerator is the member’s actual period of local government employment prior to leaving the scheme or 40 years if less, and

(ii)the denominator is his years of service assuming he had remained an active member until his NRD or 40 years if less.

  • This amount may be increased in line with any increase in the retail prices index between the relevant date and the date on which the benefit becomes payable.

(6) The aggregate benefit payable to a Class B member or a Class C member by way of a retirement grant on retirement after NRD must not exceed the greatest of–

(a)the amount payable under sub-paragraph (1), (2) or (3) on the basis that the actual retirement date was the member’s NRD;

(b)the amount that could have been payable under sub-paragraph (1), (2) or (3) on retirement at NRD together with interest in respect of the period of the delay in payment between his NRD and the actual date of payment;

(c)three eightieths of the member’s final remuneration multiplied by his increased period of membership.

(7) A member’s increased period of membership is the aggregate of

(a)his total membership ending with his NRD; and

(b)his total membership after his NRD,

but must not exceed 45 years.

(8) The benefits payable by way of lump sum on the death of an active or deferred member must not exceed four times his final remuneration (ascertained disregarding paragraphs 1(7)(d) and (e) and (6)) less any lump sum death in service retained benefits (other than a refund of the member’s contributions and any interest on such contributions or, if greater, £5,000.

6.—(1) The years of service taken into account under paragraphs 4(1), (3), 4(7)(a) and 5(7)(a) must not exceed 40 years.

(2) Without prejudice to Schedule 3, a credited period which is counted as a period of membership under regulation 122(1) does not count in calculating years of service for sub-paragraph (1) or paragraph 4 or 5.

7.—(1) If adding the additional contributions payable by a Class B member or a Class C member under an agreement made by him before the commencement date (other than AVCs payable under Schedule 7A to the 1987 Regulations) to those payable by him under these Regulations and any FSAVC scheme would cause the total of those contributions to exceed 15 per cent. of his remuneration, he may not pay that excess, but he may pay a lump sum representing it to the Scheme at a time permitted by the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990.

(2) That lump sum must be calculated in a way approved by the Government Actuary, who may issue guidance indicating how it is to be done.

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