The Police Pension Scheme (Scotland) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations establish a career average revalued earnings scheme for the payment of pensions and other benefits to members of the Police Service of Scotland.

Part 2 provides for establishment and scope of the scheme.

Part 3 contains governance provisions including delegation of the scheme manager’s functions and establishment of a pension board and a scheme advisory board.

Part 4 provides for scheme membership. It sets out the key concepts of eligible service, pensionable earnings and assumed pay. It contains eligibility and auto-enrolment provisions. It also provides for the determination of a new member’s eligibility for payment of ill-health benefits.

Part 5 provides for the establishment of a member’s pension accounts in relation to a continuous period of pensionable service under this scheme. It also provides for the establishment of a pension credit member’s account.

• Chapter 1 explains how the amount of accrued pension is calculated.

• Chapter 2 explains how adjustments to amounts of accrued pension are calculated.

• Chapter 4 provides for the establishment of the active member’s account. This Chapter shows how the proportion of pensionable earnings accrued as pension is revalued each year until the member leaves pensionable service.

• Chapter 5 provides for the establishment of the deferred member’s account and explains how the provisional amount of each description of deferred pension is calculated.

• Chapter 6 provides for the establishment of the retirement account. It shows how the amount of retirement earned pension is worked out.

Part 6 provides for compulsory ill-health retirement and early payment of full retirement pension on grounds of permanent medical unfitness.

Part 7 provides for a member’s entitlement to payment of retirement benefits. It sets out the key concept of qualifying service. It specifies how the annual rate of pension is calculated for full retirement pensions and ill-health pensions, and provides for review and cancellation of ill-health benefits.

Part 8 provides for benefits for pension credit members.

Part 9 provides for death benefits. It provides for the recovery and suspension of benefits in certain cases.

Part 10 provides for the payment of contributions by members and employers.

Part 11 provides for making and receiving transfer payments.

Part 12 provides for actuarial valuations and employer cost cap.

Part 13 contains supplementary provisions on payment of pensions, payment and deduction of tax and miscellaneous provisions. It provides for appeals to the sheriff against certain decisions made under the scheme.

Schedule 1 provides for appeals against medical decisions and referral of a decision to a medical authority for reconsideration.

Schedule 2 lists progressive medical conditions.

Schedule 3 makes provision for payments for added pension.

Schedule 4 makes transitional provision.

An impact assessment has not been prepared for this instrument as no impact on the costs of business or the voluntary sector is foreseen.