The National Health Service Superannuation Scheme (2008 Section) (Scotland) Regulations 2013

CHAPTER 2.C CONTRIBUTIONS

Basic contributions by members

Contributions by members

2.C.1.—(1) Each active member must make contributions to this Section of the scheme (“member contributions”) in respect of—

(a) the member’s pensionable pay in accordance with regulation 2.C.2 (contribution rate for members other than non-GP providers) where the member is not a non-GP provider; and

(b) the member’s pensionable earnings in accordance with regulation 2.C.4 (contribution rate and determination of pensionable earnings for non-GP providers) where the member is a non-GP provider.

(2) Member contributions must be made—

(a) until the member completes 45 years’ pensionable service; or

(b) where the notice required by regulation 2.A.3(3) (meaning of “pensionable service”) has been properly received, until the member ceases officer service.

(3) In the case of a member who is not a non-GP provider, the member’s employing authority must deduct member contributions from the member’s pensionable pay and pay them to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid to the member.

(4) In the case of a member who is a non-GP provider, the contracting Health Board or someone appointed to act on their behalf must pay to the Scottish Ministers contributions under this regulation paid to it by the non-GP provider or paid to it by another employing authority not later than the 19th day of the month following the month in which the earnings were paid to the non-GP provider.

(5) Paragraph (6) applies where a member has failed to pay member contributions or an employing authority has failed to deduct such contributions in accordance with this regulation.

(6) The Scottish Ministers may recover any sum that remains due in respect of contributions referred to in paragraph (5) by deduction from any payment by way of benefits to, or in respect of, the member entitled to them if—

(a) the member agrees to such a deduction; and

(b) the deduction is to the member’s advantage.

(7) Paragraph (6) is without prejudice to any other method of recovery the Scottish Ministers may have.

(8) A member who is absent from service in circumstances within regulation 2.A.5(1) to (4) (pensionable service: breaks in service) may make contributions to this Section of the scheme in respect of the member’s pensionable pay or, as the case may be, pensionable earnings in accordance with that regulation and whichever of regulations 2.C.2 (contribution rate for members other than non-GP providers) or 2.C.4 (contribution rate and determination of pensionable earnings for non-GP providers) applies to that member.

(9) If, apart from this paragraph, the pay or, as the case may be, earnings for a scheme year in respect of a member’s service would not be a whole number of pounds, those earnings must be rounded down to the nearest whole pound.

Contribution rate for members other than non-GP providers

2.C.2.—(1) Contributions under regulation 2.C.1(1)(a) (contributions by members) must be paid at the member’s contribution rate for the scheme year in question.

(2) Where paragraph (2) of regulation 2.C.3 applies, a member’s contribution rate for the scheme year 2013-2014 is the percentage specified in column 2 of the following table in respect of the corresponding pensionable pay band specified in column 1 of that table into which the member’s pensionable pay falls.

Table 1: Scheme year 2013-2014

Column 1 Pensionable pay band	Column 2 Contribution percentage rate
Up to £15,278	5.0%
£15,279 to £21,175	5.3%
£21,176 to £26,557	6.8%
£26,558 to £48,982	9.0%
£48,983 to £69,931	11.3%
£69,932 to £110,273	12.3%
£110,274 to any higher amount	13.3%

(3) Where paragraph (16), (17) or (21) of regulation 2.C.3 applies, a member’s contribution rate for the scheme year 2013-2014 is the percentage specified in column 2 of the following table in respect of the corresponding pensionable pay band specified in column 1 of that table into which the member’s pensionable pay falls.

Table 2: Scheme year 2013-2014

Column 1 Pensionable pay band	Column 2 Contribution percentage rate
Up to £15,431	5.0%
£15,432 to £21,387	5.3%
£21,388 to £26,823	6.8%
£26,824 to £49,472	9.0%
£49,473 to £70,630	11.3%
£70,631 to £111,376	12.3%
£111,377 to any higher amount	13.3%

(4) The Scottish Ministers must, with the consent of the Treasury, determine the pensionable pay bands and contribution percentage rates specified in the tables set out in this regulation in respect of each scheme year.

(5) Before determining those pensionable pay bands or contribution percentage rates, the Scottish Ministers must consider the advice of the scheme actuary.

Determination of pensionable pay for the purposes of setting a contribution rate for members other than non-GP providers

2.C.3.—(1) For the purposes of this regulation—

(a) “previous scheme year” means the scheme year immediately preceding the scheme year in respect of which contributions are payable in accordance with this Part (“the current scheme year”); and

(b) if a member holds two or more pensionable employments at the same time—

(i) the determinations referred to in paragraphs (4) to (21) are to apply to each such employment separately; and

(ii) each such employment is to be treated separately for the purpose of paying contributions.

(2) Subject to paragraphs (16) and (17), for the purposes of determining the relevant annual contribution rate for the current scheme year paragraphs (3) to (15) apply to a member who is in pensionable employment with the same employing authority on both the last day of the previous scheme year and the first day of the current scheme year.

(3) For the purposes of paragraphs (4) to (15)—

(a) a member is to be regarded as being in pensionable employment throughout the previous scheme year regardless of any period in that year during which the member continued to be employed by the same employer but did not make contributions to this Section of the scheme;

(b) for the purposes of calculating the member’s pensionable pay—

(i) contributions for any period referred to in sub-paragraph (a) are to be deemed to have been paid; and

(ii) any additional pensionable pay that the member is treated as having received during an absence from work in accordance with regulation 2.A.10 (pensionable pay: breaks in service) is to be included; and

(c) the amount of pensionable pay determined in accordance with those paragraphs is to be rounded down to the nearest whole pound.

(4) If a member—

(a) was in pensionable employment with an employing authority on a whole-time basis throughout the previous scheme year;

(b) paid contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) (contribution rate for members other than non-GP providers) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the member’s pensionable pay received during the previous scheme year.

(5) If a member—

(a) was in pensionable employment with an employing authority on a part-time basis throughout the previous scheme year;

(b) paid contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by reference to the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment during the previous scheme year.

(6) If a member—

(a) was in pensionable employment with an employing authority on a combination of a whole-time and part-time basis throughout the previous scheme year;

(b) paid contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the aggregate of—

(i) the member’s pensionable pay received during the previous scheme year in respect of the member’s whole-time employment; and

(ii) the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment for that period in respect of the member’s part-time employment.

(7) If a member—

(a) was in pensionable employment with an employing authority on a whole-time basis throughout the previous scheme year;

(b) did not pay contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received in respect of that employment for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that employer commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(8) If a member—

(a) was in pensionable employment with an employing authority on a part-time basis throughout the previous scheme year;

(b) did not pay contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

CWTE is the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment in respect of the member’s part-time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that employer commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(9) If a member—

(a) was in pensionable employment with an employing authority on a combination of a whole-time and part time basis throughout the previous scheme year;

(b) did not pay contributions in respect of that employment at the same percentage rate throughout that previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received for the whole-time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year;

CWTE is the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment in respect of the member’s part time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(10) If a member—

(a) commenced pensionable employment with an employing authority on a whole-time basis during the previous scheme year;

(b) paid contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received in respect of that employment during the previous scheme year; and

NDPE is the number of days of pensionable employment with that employer during the previous scheme year.

(11) If a member—

(a) commenced pensionable employment with an employing authority on a part time basis during the previous scheme year;

(b) paid contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

CWTE is the amount the Scottish Ministers determine would have been paid for that employment during the previous scheme year in respect of a single comparable whole-time employment; and

NDPE is the number of days of pensionable employment with that employer during the previous scheme year.

(12) If a member—

(a) commenced pensionable employment with an employing authority during the previous scheme year and has since been employed on both a whole-time and part time basis;

(b) paid contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) (contribution rate for members other than non-GP providers) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received for the whole-time employment with that employer during the previous scheme year;

CWTE is the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment in respect of the member’s part time employment with that employer during the previous scheme year; and

NDPE is the number of days of pensionable employment with that employer during the previous scheme year.

(13) If a member—

(a) commenced pensionable employment with an employing authority on a whole-time basis during the previous scheme year;

(b) did not pay contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year;

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received in respect of that employment for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that employer commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(14) If a member—

(a) commences pensionable employment with an employing authority on a part time basis during the previous scheme year;

(b) did not pay contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

CWTE is the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment in respect of the member’s part time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that employer commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(15) If a member—

(a) commenced pensionable employment with an employing authority during the previous scheme year and has since been employed on both a whole-time and part time basis with that employing authority;

(b) did not pay contributions in respect of that employment at the same percentage rate from the date that employment commenced to the last day of the previous scheme year; and

(c) is employed by that authority on the first day of the current scheme year,

the member must pay contributions during the current scheme year at the rate specified in column 2 of the table in regulation 2.C.2(2) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined by the formula—

where—

RPP is the pensionable pay received for the whole-time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year;

CWTE is the amount the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment in respect of the member’s part time employment with that employer for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year; and

NDPE is the number of days of pensionable employment with that authority for the period commencing on the date the member’s contribution rate last changed in that previous scheme year and ending on the last day of that previous scheme year.

(16) If, at any time during the current scheme year, a member commences a new employment, the member must pay contributions in respect of that employment at the rate specified in column 2 of the table in regulation 2.C.2(3) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined in accordance with paragraph (20).

(17) Subject to paragraph (18), if at any time during the current scheme year, a change is made to a member’s annual rate of pensionable pay or pensionable allowances in respect of an existing employment the member must pay contributions—

(a) from the first day of the pay period in which the change is made at the rate specified in column 2 of the table in regulation 2.C.2(3) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined in accordance with paragraph (20); and

(b) as if the member’s employment had commenced on that day.

(18) Paragraph (17) does not apply to a change made to a member’s annual rate of pensionable allowances in respect of an existing employment that is determined by that member’s employer to have been made in respect of—

(a) unplanned changes to that member’s duties; or

(b) changes to that member’s duties that are unlikely to persist for at least 12 months.

(19) If the change to a member’s pensionable pay referred to in paragraph (17) is made in respect of an existing part time employment, that paragraph does not apply unless there is a corresponding change to the amount of pensionable pay that would be paid to that member in respect of a whole-time comparable employment.

(20) Where paragraph (16) or (17) apply the Scottish Ministers must determine the member’s pensionable pay—

(a) by applying the formula—

where—

EPP is the estimated pensionable pay that the member’s employing authority considers will be payable to the member in respect of that employment during the current scheme year; and

NDPE is the number of days of pensionable employment from the date employment commences to the end of the current scheme year; and

(b) if the further employment is part time employment, by determining how much would be paid in respect of a whole-time comparable employment,

with the amount determined under sub-paragraph (a) being the member’s pensionable pay for the purposes of this paragraph if the further employment is whole-time employment and the amount determined under sub-paragraph (b) being the member’s pensionable pay for the purposes of this paragraph if the further employment is part time employment.

(21) If none of paragraphs (4) to (17) apply—

(a) the Scottish Ministers must determine the amount of the member’s pensionable pay, and in doing so must, in addition to the matters referred to in regulation 2.C.2(5) (contribution rate for members other than non-GP providers), have regard to the pensionable pay attributable to pensionable employment comparable to the member’s employment, prevailing pay scales and prevailing rates of pensionable allowances; and

(b) the member must pay contributions at the rate specified in column 2 of the table in regulation 2.C.2(3) in respect of the amount of pensionable pay referred to in column 1 of that table which corresponds to the amount of the member’s pensionable pay determined in accordance with paragraph (a).

(22) In any case where paragraph (16) applies and it is apparent at the time when the person becomes an active member in an employment under this Part the person’s pensionable pay in that employment includes any amount that is variable, that amount is to be taken as such amount as the employing authority consider appropriate for the current scheme year scheme year and, in the case of a member who works part time, is the variable amount that would be paid in respect of a comparable whole-time employment.

(23) If a transfer payment from a corresponding health service scheme is accepted in respect of a person, the person is to be treated for the purposes of this regulation as if—

(a) the person was an active member of this Section of the scheme during any period during which the person was an active member of that Section; and

(b) the pay by reference to which the person’s benefits under that Section were calculated was pensionable pay for the purposes of this Section of the scheme.

Contribution rate and determination of pensionable earnings for non-GP providers

2.C.4.—(1) Member contributions payable by a non-GP provider under regulation 2.C.1(1)(b) (contributions by members) must be paid at the member’s contribution rate for the scheme year in question.

(2) A member’s contribution rate is the percentage specified in column 2 of the relevant table in paragraph (15) in respect of the corresponding pensionable earnings band specified in column 1 of that table into which the member’s pensionable earnings falls.

(3) The Scottish Ministers must, with the consent of the Treasury, determine the pensionable earnings bands and contribution percentage rates specified in the relevant table in respect of each scheme year.

(4) Before determining those pensionable pay bands or contribution percentage rates, the Scottish Ministers must consider the advice of the scheme actuary.

(5) Paragraph (6) applies where, in respect of a scheme year, a non-GP provider—

(a) has certified their pensionable earnings in accordance with regulation 2.J.14 (employing authority and certain member record keeping and contribution estimates) and forwarded a record of those earnings to the contracting Health Board or someone appointed to act on their behalf; or

(b) was not required to certify their earnings in accordance with that regulation but the contracting Health Board or someone appointed to act on their behalf has the figure that represents the non-GP provider’s pensionable earnings for that scheme year.

(6) In the circumstances referred to in paragraph (5), contributions payable for the scheme year in question are those specified in column 2 of the relevant table in paragraph (15) in respect of the amount of pensionable earnings referred to in column 1 of that table which corresponds to the certified or final pensionable earnings from all non-GP provider sources and any additional pensionable earnings the non-GP provider is treated as having received during a break in service in accordance with regulation 2.A.10.

(7) Subject to paragraph (8), if paragraph (5) does not apply to a non-GP provider in respect of a scheme year, that non-GP provider must pay contributions at the rate in column 2 of the relevant table in paragraph (15), on the basis of whichever of the following the contracting Health Board or someone appointed to act on their behalf considers the most appropriate in the circumstances—

(a) an amount of the non-GP provider’s earnings that has been agreed between the contracting Health Board or someone appointed to act on their behalf on the one hand and the non-GP provider on the other hand;

(b) an amount that corresponds to that non-GP provider’s most recent certified or final pensionable earnings referred to in paragraph (5); or

(c) an amount of such earnings that corresponds to the estimate by the contracting Health Board, or someone appointed to act on their behalf, of the non-GP provider’s pensionable earnings from all non-GP provider sources for that year.

(8) If paragraph (7) applies to a non-GP provider in respect of a scheme year and paragraph (5)(a) or (b) is subsequently satisfied in respect of that scheme year, that non-GP provider must pay contributions at the rate determined in accordance with paragraph (6).

(9) The contracting Health Board or someone appointed to act on their behalf may adjust a non-GP provider’s contribution rate for any scheme year determined in accordance with paragraph (7)—

(a) by agreement between the contracting Health Board or someone appointed to act on their behalf on the one hand and the non-GP provider on the other hand; or

(b) without such agreement, if the contracting Health Board or someone appointed to act on their behalf is satisfied that pensionable earnings will exceed the amount used to determine the contribution rate in accordance with that paragraph.

(10) If a member is in non-GP provider service and concurrently in practitioner service in respect of which the member is liable to pay contributions in accordance with regulation 3.C.1 (contributions by members), contributions payable in respect of the member’s non-GP provider service are to be determined under this regulation whereas contributions payable in respect of the member’s practitioner service are to be determined under regulation 3.C.2 (members’ contribution rate).

(11) In determining member contributions payable in accordance with this regulation, the contracting Health Board or someone appointed to act on their behalf must take account of pensionable earnings from all non-GP provider sources, including any pensionable earnings as a non-GP provider determined by another contracting Health Board.

(12) An employing authority that is not the contracting Health Board or someone appointed to act on their behalf must, in respect of any pensionable earnings the Health Board or person appointed pays to a non-GP provider, take advice from any other relevant contracting Health Board or person appointed in determining the contributions payable in accordance with this regulation.

(13) Where paragraph (14) does not apply, a non-GP provider must pay member contributions to the contracting Health Board or someone appointed to act on their behalf.

(14) If a non-GP provider is engaged under a contract of employment or a contract for services by an employing authority or is a partner or shareholder in an employing authority that is not an OOH provider, that authority must—

(a) deduct contributions under this regulation from any pensionable earnings the authority pays that person; and

(b) if it is not also the contracting Health Board, pay those contributions to that contracting Health Board or someone appointed to act on their behalf not later than the 7th day of the month following the month in which the earnings were paid.

(15) In this regulation, “the relevant table” means—

(a) in respect of the 2012-2013 scheme year, table 1; and

(b) in respect of the 2013-2014 scheme year, table 2.

Table 1: Scheme year 2012-2013

Column 1 Pensionable earnings band	Column 2 Contribution percentage rate
Up to £21,175	5.0%
£21,176 to £26,557	6.5%
£26,558 to £48,982	8.0%
£48,983 to £69,931	8.9%
£69,932 to £110,273	9.9%
£110,274 to any higher amount	10.9%

Table 2: Scheme year 2013-2014

Column 1 Pensionable earnings band	Column 2 Contribution percentage rate
Up to £15,431	5.0%
£15,432 to £21,387	5.3%
£21,388 to £26,823	6.8%
£26,824 to £49,472	9.0%
£49,473 to £70,630	11.3%
£70,631 to £111,376	12.3%
£111,377 to any higher amount	13.3%

Contributions by employing authorities

Contributions by employing authorities: general

2.C.5.—(1) The employing authority of a member who is an active member of this Section of the scheme under this Part must contribute to the scheme, in respect of the pensionable pay or, as the case may be, pensionable earnings of that member, at the rate specified in paragraph (4) (“the employer’s standard rate”).

(2) In specifying the employer’s standard rate, the Scottish Ministers must—

(a) obtain the consent of the Treasury; and

(b) take account of the advice of the scheme actuary and the cost of providing for any increase in pensions under the scheme as a result of orders made under the provisions of the Pensions (Increase) Act 1971(1) and section 59 (increase in official pensions) of the Social Security Pensions Act 1975(2).

(3) If, for any period, a person holds more than one employment with an employing authority in respect of which the person is an active member of this Section of the scheme, this regulation and regulation 2.C.6 (contributions by employing authorities: early retirement on termination of employment) apply in respect of each of those employments as if it were the only employment held.

(4) The employer’s standard rate is 13.5%.

(5) In any particular case the Scottish Ministers may direct that, for the purposes of this Chapter, “employing authority” includes one or more of—

(a) a successor, transmittee or assignee of an employing authority’s business or functions; or

(b) the last employing authority of a person to whom these Regulations apply.

(6) Subject to paragraph (7), if a non-GP provider is—

(a) an employing authority which is a GMS practice, a section 17C agreement provider or an HBPMS contractor; or

(b) a shareholder or partner in such an employing authority,

that employing authority must pay employer’s standard rate contributions to the contracting Health Board, or someone appointed to act on their behalf, not later than the 7th day of the month following the month in which the earnings were paid.

(7) If a non-GP provider is a shareholder or partner in more than one employing authority referred to in paragraph (6), each employing authority must pay employer’s standard rate contributions on any pensionable earnings it pays to the non-GP provider or, as the case may be, on the non-GP provider’s share of the partnership profits, to the contracting Health Board, or someone appointed to act on their behalf, not later than the 7th day of the month following the month in which the earnings were paid.

(8) If regulation 2.C.4(14) (effect of payment of additional contributions) applies (but paragraph (6) does not) and the employing authority referred to in regulation 2.C.4(14)—

(a) is not the contracting Health Board, that authority must pay employer’s standard rate contributions under this regulation to the contracting Health Board or someone appointed to act on their behalf not later than the 7th day of the month following the month in which the earnings were paid; or

(b) is the contracting Health Board, that Health Board or someone appointed to act on their behalf must pay employer’s standard rate contributions under this regulation to the Scottish Ministers in respect of any pensionable earnings it pays to the non-GP provider.

(9) Not later than the 19th day of the month following the month in which pensionable pay or, as the case may be, pensionable earnings are paid to a member, the employer’s standard rate contributions under this regulation must be paid to Scottish Ministers—

(a) in the case of a member other than a non-GP provider, by that member’s employing authority; and

(b) in the case of a non-GP provider, by the contracting Health Board or someone appointed to act on their behalf.

Contributions by employing authorities: early retirement on termination of employment

2.C.6.—(1) If a pension becomes payable to a member under regulation 2.D.11 (early retirement on termination of employment by employing authority), the employing authority must make a contribution to the Scottish Ministers in respect of—

(a) the cost of providing the pension under that regulation for the period between the member leaving the employment in which the member was an active member and reaching age 65—

(i) before any part of that pension is exchanged for a lump sum under regulation 2.D.14 (general option to exchange part of pension for lump sum); and

(ii) in the case of a 2008 Section Optant, after that pension is reduced in accordance with regulation 2.K.12 (amount of pension and lump sum to be paid to a 2008 Section Optant);

(b) the cost of providing for any increase in the rate of the benefits referred to in sub-paragraph (a) for that period as a result of orders made under section 59 of the Social Security Pensions Act 1975 (so far as not already met by contributions made under regulation 2.C.5(1) (contributions by employing authorities: general)); and

(c) in the case of a 2008 Section Optant, the additional cost attributable to the early payment of the lump sum to be paid to such an Optant under regulation 2.K.12.

(2) If, on a pension under regulation 2.D.11 (early retirement on termination of employment by employing authority) becoming payable to a member in respect of the termination of the member’s employment with an employing authority (“the first authority”), a pension also becomes payable to the member in respect of pensionable service with one or more other employing authorities, the first authority must also make any additional contributions due in accordance with paragraph (1) in respect of that other pension.

(3) An employing authority is not responsible for meeting any costs in respect of the early payment of benefits to the extent that the benefits are attributable to contributions made under regulation 2.C.8 (option to pay additional periodical contributions), 2.C.10 (option to pay lump sum contribution) or 2.C.11 (additional lump sum contribution by employing authority).

(4) Any contributions payable under this regulation must be paid—

(a) except in a case falling within paragraph (b), by a single payment made within one month of the date on which the pension under regulation 2.D.11 became payable; or

(b) if the Scottish Ministers agree, by not more than 5 equal annual instalments, the first of which is to be paid within one month of the date on which the pension under regulation 2.D.11 became payable and the others by 31st October in each of the following four scheme years.

(5) Paragraph (4)(b) does not apply where the member leaves the employment in which the member was an active member on or after 1st April 2013.

(6) The following amounts must be determined by the Scottish Ministers on the advice of the scheme actuary—

(a) the costs mentioned in paragraph (1);

(b) the amount of the payment mentioned in paragraph (4)(a); and

(c) the amount of each of the instalments payable under paragraph (4)(b).

Guarantees, indemnities and bonds

2.C.7.—(1) This regulation applies if—

(a) an employing authority fails to pay contributions in accordance with regulation 2.C.5 (contributions by employing authorities: general) or 2.C.6 (contributions by employing authorities: early retirement on termination of employment); and

(b) the employing authority is—

(i) a GMS practice;

(ii) an HBPMS practice;

(iii) a section 17C agreement provider; or

(iv) an OOH provider.

(2) The Scottish Ministers may require the employing authority to have in force a guarantee, indemnity or bond which provides for payment to the Scottish Ministers, should that authority fail to meet them, of all future liabilities of the authority under—

(a) this Part; or

(b) the National Health Service Superannuation Scheme (Scotland) (Additional Voluntary Contributions) Regulations 1998(3).

(3) The guarantee, indemnity or bond must be in such form, in respect of such an amount and provided by such a person as the Scottish Ministers approve for the purpose.

Additional contributions to purchase additional pension

Member’s option to pay additional periodical contributions to purchase additional pension

2.C.8.—(1) An active member may opt to make additional periodical contributions by monthly instalments during the contribution option period—

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (members’ retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or 6 months under Chapter 2.E (death benefits)); or

(b) to increase by a specified amount those benefits so payable and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 2.E (death benefits) in respect of the member.

(2) A member may exercise the option under paragraph (1) more than once.

(3) If a member exercises the option under paragraph (1), the member’s employing authority must—

(a) deduct the member’s contributions from the member’s earnings; and

(b) pay them to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid.

(4) The annual amount of the periodical contributions payable at the beginning of the contribution option period must be—

(a) not less than the minimum amount; and

(b) in the case of an amount exceeding the minimum amount, a multiple of the minimum amount.

(5) In paragraph (4) “the minimum amount” means the amount that would, in accordance with tables prepared for the Scottish Ministers by the scheme actuary for the scheme year in which the contributions are paid, be the amount of the contributions required to secure an increase in the member’s pension of—

(a) £250; or

(b) such other amount as the Scottish Ministers may for the time being determine,

assuming that the contributions are made in accordance with the option for the remainder of the option period.

(6) The tables referred to in paragraph (5)—

(a) may specify different amounts for different descriptions of members; and

(b) may be amended during a scheme year,

but no such amendment affects the contributions payable during that year under any option, except an option under which contributions begin to be paid after the date on which the amendment takes effect.

(7) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of—

(a) contributions made under regulation 2.C.10 (member’s option to pay lump sum contribution to purchase additional pension); or

(b) contributions made under regulation 2.C.11 (payment of additional lump sum contributions by employing authority),

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine (taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 3.C.6 to 3.C.15 (additional contributions).

(8) In this Part, “contribution option period” in relation to an option under this regulation means a period of whole years that—

(a) is specified in the option;

(b) begins with the pay period in respect of which the first contribution is made under the option;

(c) is not less than one year nor more than 20 years; and

(d) does not end later than the member’s 65th birthday.

(9) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Effect of member being absent or leaving and rejoining this Section of the scheme during the contribution option period

2.C.9.—(1) This paragraph applies if during the contribution option period a member who has exercised the option under regulation 2.C.8 (option to pay additional periodical contributions) is—

(a) absent from work because of illness or injury;

(b) on maternity leave;

(c) on adoption leave;

(d) on paternity leave;

(e) on parental leave; or

(f) on a leave of absence of the kind mentioned in regulation 2.A.5(3) (pensionable service: breaks in service).

(2) If paragraph (1) applies—

(a) the contributions under the option continue to be payable unless the member ceases paying contributions under regulation 2.C.1 (contributions by members); and

(b) if the member does so cease, the member may continue to make contributions in accordance with the option if the member resumes making contributions under regulation 2.C.1 before the end of the period of 12 months beginning with the day on which the member first ceased to pay those contributions.

(3) This paragraph applies if—

(a) a member exercises the option under regulation 2.C.8;

(b) the member ceases to be an active member during the contribution option period; and

(c) the member becomes an active member again before the end of the period of 12 months beginning with the day on which the member ceased to be an active member.

(4) If paragraph (3) applies, the member may continue to make contributions in accordance with the option after becoming an active member again unless a repayment of contributions has been made to the member under regulation 2.C.18 (repayment of contributions).

(5) For the purposes of paragraph (4) it does not matter if the member has paid any of the repaid contributions back to the Scottish Ministers.

Member’s option to pay lump sum contribution to purchase additional pension

2.C.10.—(1) An active member may opt to make a single lump sum contribution—

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (members’ retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or 6 months under Chapter 2.E (death benefits)); or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 2.E (death benefits) in respect of the member.

(2) A member may only make a contribution under this regulation of an amount that is—

(a) not less than the minimum amount; and

(b) in the case of an amount exceeding the minimum amount, a multiple of the minimum amount.

(3) In paragraph (2) “the minimum amount” means the amount that is, in accordance with tables prepared for the Scottish Ministers by the scheme actuary, the amount of the single contribution required at the time that the option is exercised to secure an increase in the member’s pension of—

(a) £250; or

(b) such other amount as the Scottish Ministers may for the time being determine.

(4) A member may exercise the option under paragraph (1) more than once.

(5) If a member exercises an option under paragraph (1)—

(a) the additional contribution is payable by the member to the employing authority—

(i) by deduction from the member’s earnings or otherwise; and

(ii) before the end of the period of one month beginning with the day on which the member is notified by the Scottish Ministers that the option is accepted; and

(b) the employing authority must pay it to the Scottish Ministers not later than the 19th day of the month following the month in which the earnings were paid or, as the case may be, the authority received payment of the contribution.

(6) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of—

(a) contributions made under regulation 2.C.8 (member’s option to pay additional periodical contributions to purchase additional pension); or

(b) contributions made under regulation 2.C.11 (payment of additional lump sum contributions by employing authority),

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 3.C.6 to 3.C.15 (additional contributions).

(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Payment of additional lump sum contributions by employing authority

2.C.11.—(1) The employing authority of an active member may opt to make a single lump sum contribution—

(a) to increase by a specified amount the benefits payable to the member under Chapter 2.D (members’ retirement benefits) (including if a member dies after a pension becomes payable, the benefits paid to a surviving partner and dependent children at the same rate as the member’s pension for three or 6 months under Chapter 2.E (death benefits)); or

(b) to increase by a specified amount those benefits and to increase the benefits otherwise payable in respect of surviving partners and dependent children under Chapter 2.E (death benefits) in respect of the member.

(2) An employing authority may only make a contribution under this regulation of an amount—

(a) that is not less than the minimum amount (as defined in regulation 2.C.10(3) (option to pay lump sum contribution); and

(b) in the case of an amount exceeding the minimum amount, a multiple of the minimum amount (as so defined).

(3) An employing authority may only exercise the option under paragraph (1) with the member’s consent, but may exercise it more than once in respect of the same member.

(4) The total increase in the member’s pension as a result of contributions made under this regulation, taken together with any increase as a result of—

(a) contributions made under regulation 2.C.8 (member’s option to pay additional periodical contributions to purchase additional pension); or

(b) contributions made under regulation 2.C.10 (member’s option to pay lump sum contribution to purchase additional pension),

may not exceed £5000 or such other amount as the Scottish Ministers may for the time being determine (taking into account any increase in the member’s pension as a result of the exercise of an option in accordance with regulations 3.C.6 to 3.C.15 (additional contributions).

(5) A contribution under this regulation must be paid by the employing authority to the Scottish Ministers within one month of the date on which the authority gave the Scottish Ministers notice under regulation 2.C.12(2) (exercise of options under regulations 2.C.8, 2.C.10 and 2.C.11).

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Exercise of options under regulations 2.C.8, 2.C.10 and 2.C.11

2.C.12.—(1) A member exercising an option under regulation 2.C.8 (option to pay additional periodical contributions) or 2.C.10 (option to pay lump sum contribution) must—

(a) do so by giving notice in writing to the employing authority, giving such information as may be required; and

(b) at the same time, provide the Scottish Ministers with a copy of that notice.

(2) An employing authority exercising an option under regulation 2.C.11 (lump sum contributions by employing authority) must do so by giving notice in writing to the Scottish Ministers, giving such information as may be required.

(3) An option under regulation 2.C.8, 2.C.10 or 2.C.11 may not be exercised during a period whilst the member is absent from work for any reason.

(4) For the purposes of this Part—

(a) a member is to be treated as exercising an option under regulation 2.C.8 or 2.C.10 on the date on which the employing authority receives the member’s notice under paragraph (1); and

(b) an employing authority is to be treated as exercising an option under regulation 2.C.11 on the date on which the Scottish Ministers receive the authority’s notice under paragraph (2).

(5) The Scottish Ministers may refuse to accept an option exercised under regulation 2.C.8, 2.C.10 or 2.C.11 and must do so if not satisfied that—

(a) the member is in good health; and

(b) in the case of an option exercised under regulation 2.C.8, there is no reason why the member’s health should prevent the member from paying the contributions for the whole contribution period.

(6) If the Scottish Ministers refuse to accept such an option—

(a) they must give notice in writing of that fact—

(i) in the case of an option exercised under regulation 2.C.8 or 2.C.10, to the member; and

(ii) in the case of an option exercised under regulation 2.C.11, to the employing authority and the member; and

(b) this Part applies as if the option had not been exercised.

(7) This Part also applies as if an option under regulation 2.C.10 or 2.C.11 had not been exercised if—

(a) in the case of an option under regulation 2.C.10, the payment is not received by the employing authority—

(i) before the end of the period of one month beginning with the day on which the Scottish Ministers notify the member of the acceptance of the option; or

(ii) if it is earlier, on or before the member’s 65th birthday; and

(b) in the case of an option under regulation 2.C.11, the payment is not received by the Scottish Ministers—

(i) before the end of the period of one month beginning with the day on which the employing authority gave the Scottish Ministers notice under paragraph (2); or

(ii) if it is earlier, on or before the member’s 65th birthday.

Cancellation of options under regulation 2.C.8

2.C.13.—(1) A member may cancel an option under regulation 2.C.8(1) (option to pay additional periodical contributions) by giving the employing authority notice in writing.

(2) If a member cancels such an option, the additional periodical contributions cease to be payable for the first pay period beginning after the date on which the employing authority receives the notice and all subsequent pay periods.

(3) If it appears to the Scottish Ministers that the requirement in regulation 2.C.8(7) will not be met if the member continues to make periodical contributions under an option exercised under regulation 2.C.8, the Scottish Ministers may cancel the option by giving the member notice in writing.

(4) If the Scottish Ministers cancel such an option in accordance with paragraph (3), the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods.

(5) If, after the exercise of the option under regulation 2.C.8, the Scottish Ministers have reasonable grounds to believe that the member’s health will prevent the member from paying contributions for the whole contribution period, the Scottish Ministers may cancel the option by giving the member notice in writing.

(6) If the Scottish Ministers cancel such an option in accordance with paragraph (5), the additional periodical contributions cease to be payable for the first pay period beginning after the date specified in the notice and all subsequent pay periods and any periodical payments made before the date of cancellation must be returned to the member.

Effect of payment of additional contributions

2.C.14.—(1) This regulation applies if—

(a) an option is exercised by a member under regulation 2.C.8 (option to pay additional periodical contributions) and all the contributions to be made under the option are made; or

(b) an option is exercised by a member under regulation 2.C.10 (option to pay lump sum contribution) or by a member’s employing authority under regulation 2.C.11 (lump sum contributions by employing authority) and the lump sum payment is made(4).

(2) Subject to paragraph (8) the member’s pension is to be increased by the full amount of the increase to be made in accordance with the terms of the option, after the final adjustment in that amount in accordance with regulation 2.C.17 (revaluation of increases bought under options).

(3) Paragraph (2) is without prejudice to any increase or reduction falling to be made in the total amount of the member’s pension under Chapter 2.D (members’ retirement benefits) or Chapter 2.K (2008 Section Optants) as a result of the member becoming entitled to payment of the pension before or after reaching age 65(5).

(4) In the case of an option under regulation 2.C.8(1)(b), 2.C.10(1)(b) or 2.C.11(1)(b), any pension payable under Chapter 2.E (death benefits) in respect of the member is to be increased by the appropriate amount.

(5) In paragraph (4), subject to regulation 2.C.15 (effect of death or early payment of pension) and regulation 2.C.16(3) (effect of part payment of periodical contributions), “the appropriate amount” means—

(a) in the case of a pension under regulation 2.E.1 (surviving dependent adult’s pension) the amount of which is determined under regulation 2.E.3 (active members and non-contributing members) or 2.E.5 (deferred members), 37.5% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3));

(b) in the case of a pension under regulation 2.E.1 the amount of which is determined under regulation 2.E.4 (pensioner members), 37.5% of the amount of the increase in the member’s pension as a result of the option;

(c) in the case of a pension under regulation 2.E.8 (surviving dependent child’s pension) the amount of which is determined under regulation 2.E.10 (active members and non-contributing members) or 2.E.12 (deferred members), the appropriate fraction (within the meaning of regulation 2.E.10 or, as the case may be, regulation 2.E.12) of 75% of the amount of the increase mentioned in paragraph (2) that would have applied in the member’s case if the member had become entitled to the increase on the date of death (disregarding paragraph (3)); and

(d) in the case of a pension under regulation 2.E.8 (surviving dependent child’s pension) the amount of which is determined under regulation 2.E.11 (pensioner members), the appropriate fraction (within the meaning of that regulation) of 75% of the amount of the increase in the member’s pension as a result of the option.

(6) Except as provided in regulation 2.D.5 (partial retirement: members aged at least 55), no separate claim is required as respects any additional pension payable by virtue of this regulation.

(7) This regulation is subject to regulation 2.C.15 (effect of death or early payment of pension).

(8) Paragraph (9) applies only to an option under regulation 2.C.8(1)(a), 2.C.10(1)(a) or 2.C.11(1)(a), where a pension is to be paid for either three or 6 months at the same rate as the member’s pension was being paid at the date of that member’s death.

(9) Any increase in the member’s pension must be included only in a benefit payable to a surviving partner or a dependent child in respect of the member under these Regulations whilst it is being paid at the rate and for the duration of one of the periods referred to in paragraph (8).

(10) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Effect of death or early payment of pension after option exercised under regulation 2.C.8, 2.C.10 or 2.C.11

2.C.15.—(1) If a member in respect of whom an option under regulation 2.C.8 (option to pay additional periodical contributions), 2.C.10 (option to pay lump sum contribution) or 2.C.11 (lump sum contributions by employing authority) has been exercised dies before the end of the period of 12 months beginning with the date on which the option was exercised—

(a) an amount equal to the contributions paid under the option must be paid—

(i) in the case of an option under regulation 2.C.8 or 2.C.10, to the member’s personal representatives; and

(ii) in the case of an option under regulation 2.C.11, to the employing authority which made the contribution; and

(b) regulation 2.C.14(4) (effect of payment of additional contributions) does not apply.

(2) If a member in respect of whom an option under regulation 2.C.8 has been exercised dies after the end of the period of 12 months beginning with the date on which the option was exercised and before the end of the contribution option period, regulation 2.C.14(4) applies as if all contributions due after the date of death had been made.

(3) If a member in respect of whom an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised becomes entitled to a pension under regulation 2.D.8 (early retirement on ill health: active members and non-contributing members) as a result of a claim made before the end of the period of 12 months beginning with the date on which the option was exercised—

(a) regulation 2.C.14(2) and (4) does not apply; and

(b) an amount equal to the contributions paid under the option must be paid—

(i) in the case of an option under regulation 2.C.8 or 2.C.10, to the member; and

(ii) in the case of an option under regulation 2.C.11, to the employing authority which made the contribution.

(4) Subject to regulation 2.C.13(5) and (6), if a member in respect of whom an option under regulation 2.C.8 has been exercised becomes entitled to a pension under regulation 2.D.8 before the end of the contribution option period as a result of a claim made after the end of the period of 12 months beginning with the date on which the option was exercised, regulation 2.C.14(2) and (4) applies as if all contributions under the option had been made.

(5) If a member in respect of whom an option under regulation 2.C.8, 2.C.10 or 2.C.11 has been exercised—

(a) becomes entitled to a pension under regulation 2.D.4 (early payment of pension with actuarial reduction), 2.D.10 (early retirement on ill health: deferred members) or 2.D.11 (early retirement on termination of employment by employing authority); or

(b) becomes entitled to a pension under regulation 2.D.5 (partial retirement: members aged at least 55) before reaching age 65,

the increase in the member’s pension under Chapter 2.D (members’ retirement benefits) which would otherwise be due under regulation 2.C.14(2) is reduced.

(6) The amount of the reduction is such amount as the Scottish Ministers determine, after consulting the scheme actuary, to be appropriate by reason of the payment of the increase before the member reaches 65.

(7) This regulation is subject to regulation 2.C.16 (effect of part payment of periodical contributions).

Effect of part payment of periodical contributions

2.C.16.—(1) This regulation applies if—

(a) the full number and amount of contributions due under an option under regulation 2.C.8 (option to pay additional periodical contributions) for the whole contribution option period are not made; and

(b) regulation 2.C.15(1) to (4) (effect of death or early payment of pension) does not apply.

(2) The increase in the member’s pension under Chapter 2.D is the appropriate proportion of the increase that would have been made under regulation 2.C.14(2) (effect of payment of additional contributions) if the full number and amount of contributions had been made (but taking account of regulation 2.C.15(5) if that applies).

(3) In the case of an option under regulation 2.C.8(1)(b), the increase in any benefit payable under Chapter 2.E (death benefits) in respect of the member is the appropriate proportion of the increase that would have been made under regulation 2.C.14(4) if the full number and amount of contributions had been made (but taking account of regulation 2.C.15(5) if that applies).

(4) For the purposes of paragraphs (2) and (3), the appropriate proportion is calculated in accordance with such method as the scheme actuary may determine and specify in guidance given to the Scottish Ministers.

(5) In making a determination under paragraph (4), the scheme actuary must have regard to—

(a) the proportion that the total contributions paid bears to the full amount of contributions due under an option under regulation 2.C.8 for the whole contribution option period; and

(b) the preservation requirements.

(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 2.K.4.

Revaluation of increases bought under options: members’ pensions

2.C.17.—(1) Where an option under regulation 2.C.8 (option to pay additional periodical contributions), 2.C.10 (option to pay lump sum contribution) or 2.C.11 (lump sum contributions by employing authority) has been exercised, the final amount of the increase in a member’s pension immediately before the beginning date for that pension must be determined in accordance with this regulation.

(2) Where the increase in pension is in respect of an option that was exercised less than two months before the increase becomes payable, the final amount is to be calculated in accordance with paragraph (4).

(3) Where the increase in pension is in respect of an option that was exercised two or more months before the increase in pension becomes payable, the final amount is to be calculated in accordance with whichever of paragraph (5) or (6) applies.

(4) The calculation referred to in paragraph (2) is as follows—

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 —	Add to the Step 1 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971(6) on a pension of the same amount as the Step 1 amount when it first falls into payment, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the Step 1 amount, to find the Step 3 factor.
Step 4 —	Divide the Step 1 amount by the Step 3 factor to find the final amount referred to in paragraph (1).

(5) If the member exercised the option on or before 31st March 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 —	Multiply the Step 1 amount by the retail prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the retail prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 —	Take the greater of the Step 1 amount and the Step 3 amount, to find the Step 4 amount.
Step 5 —	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971 on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.
Step 6 —	Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.
Step 7 —	Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(6) If the member exercised the option on or after 1st April 2011, the calculation referred to in paragraph (3) is as follows—

Step 1 —	Calculate the basic amount of the increase in accordance with regulations 2.C.14 to 2.C.16, to find the Step 1 amount.
Step 2 —	Multiply the Step 1 amount by the prices index for the second month before the month in which the increase in pension will become payable, to find the Step 2 amount.
Step 3 —	Divide the Step 2 amount by the prices index for the month in which the option was exercised, to find the Step 3 amount.
Step 4 —	Take the greater of the Step 1 amount and the Step 3 amount, to find the Step 4 amount.
Step 5 —	Add to the Step 4 amount an amount that is equal to any increases that would be due under the Pensions (Increase) Act 1971(7) on a pension of the same amount as the Step 4 amount when it first falls into payment, to find the Step 5 amount.
Step 6 —	Divide the Step 5 amount by the Step 4 amount, to find the Step 6 factor.
Step 7 —	Divide the Step 4 amount by the Step 6 factor to find the final amount referred to in paragraph (1).

(7) In this regulation—

“the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) of that Act);

“the prices index” means, as regards any month, the change in the general level of prices for that month used to determine increases to official pensions for the purposes of the Pensions (Increase) Act 1971.

Repayment of contributions

Repayment of contributions

2.C.18.—(1) The contributions made by a member under this Chapter are not repayable in any circumstances unless—

(a) paragraph (2) applies; or

(b) Chapter 5 (early leavers: cash transfer sums and contribution refunds) of Part 4 of the 1993 Act applies and the payment is made in accordance with that Chapter.

(2) This paragraph applies if—

(a) a person who is not a pensioner member ceases to be an active member for the purposes of this Part and does not continue to be, or become, an active member for the purposes of Part 3 within 12 months of ceasing officer service;

(b) the person does not fall within regulation 2.D.1(2)(a) to (d) (normal retirement pensions);

(c) paragraph (1)(b) does not apply; and

(d) the person claims repayment of contributions under this regulation by applying in writing to the Scottish Ministers.

(3) If paragraph (1)(b) applies, the person is entitled to be paid the amount to which the person is entitled under Chapter 5 of Part 4 of the 1993 Act, less—

(a) such part of any contributions equivalent premium paid in respect of the person as is permitted by or under section 61 (deduction of contributions equivalent premium) of the 1993 Act; and

(b) an amount equal to the income tax payable under section 205 (short service refund lump sum charge) of the 2004 Act as a result of the repayment.

(4) If paragraph (2) applies, the person is entitled to be paid an amount equal to the sum of the contributions made by the person under this Chapter, less the amounts mentioned in paragraph (3)(a) and (b).

(5) If a repayment is made under this regulation, the member’s rights under this Section of the scheme are extinguished unless the person or the person’s spouse or civil partner is entitled to a guaranteed minimum pension under this Section of the scheme and a contributions equivalent payment has not been paid.

(6) A person—

(a) who is entitled to a repayment of contributions under this regulation; and

(b) whose pensionable service did not cease because the person’s employment was terminated at the person’s request,

is entitled to interest on the amount of the repayment unless the person’s pensionable service ceased because the person’s employment was terminated by reason of misconduct or inefficiency.

(7) Subject to paragraphs (8) and (9), the interest is calculated on a compound basis at the rate of 2.5% per year, with yearly rests, for the period starting on 1st April after the contributions were paid and ending with the day the member leaves pensionable service.

(8) Paragraph (7) does not apply if paragraph (1)(b) applies and the person is entitled to a greater amount of interest under Chapter 5 (early leavers: cash transfer sums and contribution refunds) of Part 4 of the 1993 Act.

(9) So far as the contributions were paid under another scheme and were included in a transfer payment to this Section of the scheme—

(a) interest for the period before the transfer payment was made is calculated in accordance with this Section of the scheme making the transfer payment (subject to any provision made in any enactment applicable to the transfer); and

(b) paragraph (7) does not apply as respects that period.

(1)

1971 c.56.

(2)

1970 c.60. Section 59 was amended by section 11 of, and paragraph 20 of Schedule 3 to, the Social Security Act 1979 (c.18), paragraph 33 of Schedule 5, and Schedule 6, to the Social Security Act 1985 (c.53), section 9(8) of the Social Security Act 1986 (c.50), sections 1(7) and 5 of the Pensions (Miscellaneous Provisions) Act 1990 (c.7), paragraph 34 of Schedule 2 to the Social Security (Consequential Provisions) Act 1992 (c.6) and paragraph 9(1) of Schedule 8 to the Pensions Schemes Act 1993 (c.48).

(3)

S.S.I. 1998/1451, amended by S.I. 2001/3649 and S.S.I. 2001/465, 2004/62, 2005/544, 2006/307, 2008/225, 2010/22 and 369, 2011/364 and 2012/163.

(4)

For the effect of the options under regulation 2.C.8 where this regulation does not apply, see regulation 2.C.16 (effect of part payment of periodical contributions).

(5)

See regulations 2.D.3 to 2.D.5 and 2.K.21.

(6)

1971 c.56.

(7)

1971 c.56.