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The Local Government Pension Scheme (Scotland) Regulations 1998

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2.—(1) This paragraph sets out limits on benefits in respect of local government employment payable to or in respect of a Class A member under these Regulations.

(2) Subject to sub-paragraph (3), the aggregate pension payable on retirement must not exceed the lesser of–

(a)one thirtieth of the member’s final remuneration multiplied by the member’s years of service or 20 years if less; and

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

(3) If it results in a higher sum than the maximum under sub-paragraph (2), the aggregate pension payable must not exceed one sixtieth of the member’s final remuneration multiplied by his years of service.

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

(5) The aggregate pension payable to a member who has elected under regulation 7 to leave the Scheme but remains in local government employment is the greater of–

(a)one sixtieth of the member’s final remuneration multiplied by his years of service prior to leaving the scheme or 40 years if less; and

(b)the maximum pension that could have been payable at NRD under sub-paragraph (2) or (3) multiplied by the fraction of which

(i)the numerator is the member’s years of service 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 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.

(6) For sub-paragraphs (2), (3), (4) and (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) Subject to sub-paragraph (8), the aggregate benefit payable by way of lump sum 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.

(8) However, for a lump sum payable under regulation 26, the limit is the maximum retirement grant payable under sub-paragraph (6) or (7) assuming the member had continued as an active member until his NRD.

(9) However, for a lump sum payable under regulation 26 the limit is three eightieths of the member’s final remuneration, multiplied by the years of service the member would have had if he had continued as an active member until his NRD.

(10) 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 9(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.

(11) The years of service under sub-paragraphs (3), (4), (8) and (9) must not exceed 40 years.

(12) 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 (4), 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 (2), (3), (4) or (5), ignoring any retained benefits.

(13) 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 (4); and

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

(14) The final remuneration of a Class A member must not exceed the Revenue permitted maximum.

(15) However, if a Class A member is an existing rights member sub-paragraph (14) does not apply for calculating any benefit under the Scheme in so far as it is calculated by reference to a credited period which is counted as a period of membership under regulation 122(1).

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