The Local Government Pension Scheme (Scotland) Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations (“the Regulations”) introduce a new local government pension scheme (“the Scheme”) which is to come into existence on 1st April 2015 and replace the local government pension scheme constituted by the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008 (S.S.I. 2008/230) and the Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 (S.S.I. 2008/228) (“the 2008 Scheme”). In contrast to the 2008 Scheme which was a final salary pension scheme in which unreduced benefits were payable to members from the age of 65, the Scheme provides for members to accrue pension on a career average revalued earnings basis and for unreduced benefits to be payable from their state pension age.

Part 1 of the Regulations sets out provisions relating to benefits, membership and contributions.

Regulations 3 to 8 set out the rules for eligibility for membership and the different categories of member.

Regulations 9 to 21 set out the rules for contributions and include provision known as the “50/50” option which enables members to elect to pay half the usual rate of contribution and to accrue benefits at half the usual rate. Regulations 16 and 17 make provision for the purchase of additional benefits. Provision is also made for the payment or crediting of contributions during absences from work and for the calculation of an assumed level of pensionable pay during such absences.

Regulations 22 to 28 provide for the creation and maintenance of pension accounts.

Regulations 29 to 50 provide for the payment of benefits to members and their survivors.

Part 2 of the Regulations sets out provisions relating to the administration of the Scheme.

Regulations 51 to 69 provide for management of the Scheme including the obtaining of actuarial valuations and the calculation of employer contributions.

Regulations 70 to 88 provide for the making and notification of decisions and for challenges to those decisions, and for the supply of relevant information to enable decisions to be taken.

Regulations 89 to 92 set out provisions for forfeiture of benefits.

Regulation 93 provides for certificates of protection where, otherwise than by virtue of the member’s own actions, the member’s rate of pay is reduced or any future increase is restricted to the detriment of the member’s pension. Statutory guidance will be provided.

Regulations 94 to 100 set out provisions relating to transfers between funds.

Regulation 101 applies the Regulations to councillors as to employees of councils with modifications.

Regulation 102 applies for separate employments where members take on additional duties.

Schedule 1 contains definitions.

Schedule 2 sets out who can be Scheme employers and makes provision relating to admission agreements between employers who are not listed within the Schedule and administering authorities.

Schedule 3 sets out who must maintain a fund for the Scheme, and is thus an administering authority.

Schedule 4 contains provision identifying who is the appropriate administering authority for the employees of any particular Scheme employer.

Schedule 5 modifies certain provisions in their application to councillor members.

A regulatory impact assessment has been produced for these Regulations and is available at http://www.sppa.gov.uk/Local Government.