3.F.8.—(1) Subject to the provisions of this Chapter, an active member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of the member under any kind of scheme or arrangement to which paragraph (2) applies, other than a FSAVC, to be accepted by this Section of the scheme.
(2) This paragraph applies to—
(a)an occupational pension scheme other than a corresponding health service scheme;
(b)a personal pension scheme;
(c)a registered buy-out policy;
(d)a corresponding 1995 scheme; and
(e)a corresponding 2008 scheme.
(3) A member who makes an application for a transfer value to be accepted by the Scottish Ministers in respect of the member’s rights under a corresponding 2008 scheme may not also make an application for a transfer value to be accepted in respect of the member’s rights under a corresponding 1995 scheme.
(4) Paragraph (1) does not apply to rights that are directly attributable to a pension credit.
(5) In this regulation “FSAVC” means—
(a)a scheme which—
(i)immediately before 6th April 2006 was approved by the Commissioners for Her Majesty’s Revenue and Customs by virtue of section 591(2)(h) (free-standing AVC schemes) of the Income and Corporation Taxes Act 1988(1); and
(ii)became a registered scheme for the purposes of the 2004 Act by virtue of Schedule 36 (pensions schemes etc: transitional provisions and savings) to that Act; or
(b)a scheme established on or after that date as a registered free-standing AVC scheme.
(6) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.11.
3.F.9.—(1) An application under regulation 3.F.8 (right to apply for acceptance of transfer value payment from another scheme)—
(a)must be made in writing;
(b)must specify this Section of the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment;
(c)except in the case of a member whose transfer value payment is from a corresponding health service scheme, may only be made during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of this Section of the scheme;
(d)must be made before the applicant reaches age 65;
(e)if the Scottish Ministers so require, may only be made if the member has first requested a statement—
(i)in the case of a transfer made under the public sector transfer arrangements, of the increase to pensionable earnings and the service that the member will be entitled to count as a result of the transfer if the payment is accepted by the Scottish Ministers; and
(ii)in a case where the transfer is not made under those arrangements (including a transfer of rights from a corresponding 1995 scheme), of the increase to pensionable earnings and the service that member will be entitled so to count if the payment is so accepted by the Scottish Ministers within such period as is specified in the statement; and
(f)must meet such other conditions as the Scottish Ministers may require.
(2) A statement given to the member in pursuance of such a request as is mentioned in paragraph (1)(e)—
(a)in the case mentioned in paragraph (1)(e)(i), must inform the member of the effect (if any) of regulation 3.A.11 (meaning of pensionable earnings in relation to other practitioners) in the member’s case; and
(b)in the case mentioned in paragraph (1)(e)(ii), must specify such amount as is calculated in accordance with guidance and tables provided by the scheme actuary for the purpose.
(3) A statement given to the member of a corresponding 1995 Section of the scheme in pursuance of such a request as is mentioned in paragraph (1)(e) must inform the member of the amount of—
(a)the increase to pensionable earnings that will count under this Section of the scheme for the purposes of calculating benefits payable to or in respect of the member; and
(b)the amount of pensionable service that will count for the purposes of determining whether or not the member has reached 45 years of pensionable service for the purposes of regulation 3.A.3 (meaning of “pensionable service”).
3.F.10.—(1) If an application is duly made by a member under regulation 3.F.8 (right to apply for acceptance of transfer value payment from another scheme) the Scottish Ministers may accept the transfer value payment if such conditions as the Scottish Ministers may require are met, unless paragraph (9) applies.
(2) Subject to paragraph (8), if the Scottish Ministers accept the payment the member is entitled to count—
(a)the appropriate increase in the member’s pensionable earnings for the purposes of calculating benefits payable to, or in respect of, the member under this Section of the scheme; but
(b)the relevant period of pensionable service for the purpose of determining whether or not the member has reached 45 years of pensionable service for the purposes of regulation 3.A.3 (meaning of “pensionable service”).
(3) In paragraph (2)(a) “the appropriate increase” means the increase calculated in accordance with regulation 3.F.11 (calculation of increase to pensionable earnings as a result of a transfer-in).
(4) In paragraph (2)(b) “the relevant period” means the period calculated by reference to whichever of paragraph (5), (6) or (7) apply in respect of the transfer payment.
(5) If the Scottish Ministers accept the payment in respect of a member of a corresponding 1995 Section of the scheme, “the relevant period” means the period calculated in accordance with any guidance, tables and other relevant factors provided by the scheme actuary for that purpose, having regard to the period of employment that qualified the member for the rights in the corresponding 1995 Section of the scheme.
(6) If the Scottish Ministers accept the payment under the public sector transfer arrangements “the relevant period” means the period of pensionable service the member is entitled to count calculated—
(a)in accordance with those arrangements; and
(b)by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.
(7) If the Scottish Ministers accept the payment from a scheme that does not participate in the public sector transfer arrangements “the relevant period” means a period equal to the period of employment that qualified the member for the rights in respect of which the transfer payment is being made.
(8) Any part of a member’s increase to pensionable earnings under paragraph (2)(a) that falls to be treated as a capped increase to pensionable earnings must count as a capped increase to pensionable earnings for the purpose of regulation 3.F.6(5) (calculating amounts of transfer value payments)(2).
(9) The Scottish Ministers may not accept a transfer value payment if—
(a)it would be applied in whole or in part in respect of the member’s or the member’s spouse’s entitlement to a guaranteed minimum pension; and
(b)it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the scheme actuary for the purposes of this paragraph.
(10) Paragraph (9) does not apply if the transfer would be paid under the public sector transfer arrangements.
(11) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.11.
3.F.11.—(1) Subject to the following provisions of this regulation, the increase in pensionable earnings that the member is entitled to count under regulation 3.F.10 (acceptance of transfer value payments) as the result of a transfer is to be calculated in accordance with any guidance and tables provided by the scheme actuary for the purpose by reference to any relevant factors as at the date on which the transfer payment is received by the Scottish Ministers.
(2) Subject to paragraph (4), for the purposes of the calculation under paragraph (1), the benefits in respect of the transfer payment are to be calculated by increasing the member’s pensionable earnings for—
(a)the financial year in which the member joined this Section of the scheme; or
(b)the financial year in which the transfer payment is received if the payment is received more than 12 months after the day on which the member joined this Section of the scheme (“the starting day”).
(3) The amount of the increase referred to in paragraph (2) is to be calculated by—
(a)treating the member as entitled to a period of officer service equal to the period of employment that qualified the member for the rights in respect of which the transfer payment is being made;
(b)calculating the reckonable pay that would have given rise to a cash equivalent in respect of officer service under regulation 2.F.6 (calculating amounts of transfer value payments) equal to the amount of the transfer payment; and
(c)increasing the member’s pensionable earnings by an amount equal to the pensionable pay that the member would have received during that period of officer service if the member’s pensionable pay had been equal to the reckonable pay mentioned in paragraph (b) throughout that period.
(4) Paragraph (2)(b) does not apply if—
(a)a written statement estimating the increase in pensionable earnings that the member would be entitled to count as result of the transfer was given to the member by the Scottish Ministers during the period of three months ending 12 months after the starting day; and
(b)the transfer payment is received by the Scottish Ministers less than three months after the date of the statement.
(5) If the transfer value payment is accepted under the public sector transfer arrangements, the increase in pensionable earnings the member is entitled to count is to be calculated—
(a)in accordance with those arrangements; and
(b)by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.
(6) If the transfer value payment is accepted from a corresponding 2008 scheme, the increase in pensionable earnings the member is entitled to count is the increase that the member would be entitled to count if—
(a)the member’s employment to which that Section applied were NHS employment in respect of which the member was a member of this Section of the scheme; and
(b)the member’s contributions to that Section were contributions to this Section of the scheme.
(7) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.11.
3.F.12.—(1) This regulation applies if—
(a)the Scottish Ministers accept a transfer value payment in respect of a member under a transfer to which the public sector transfer arrangements apply; and
(b)the service in respect of which the transfer is made was, or included, capped service in employment to which the scheme by which the payment is made (“the transferring scheme”) applied.
(2) For the purposes of this Part—
(a)any part of the increase to pensionable earnings that the member is entitled to count under regulation 3.F.10(2)(a) (acceptance of transfer value payments); and
(b)which is the result of capped service in employment to which the transferring scheme applied,
is a capped increase to pensionable earnings.
(3) For the purposes of paragraph (1)(b), the service in respect of which the transfer is made was capped service so far as—
(a)in the case of service before 6th April 2006, the member was an active member of the transferring scheme whose pension under that Section in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) (earnings cap) of the Income and Corporation Taxes Act 1988(3); or
(b)in the case of service on or after 6th April 2006, the member was an active member of the transferring scheme whose pension under that Section in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under that section was calculated for tax years ending before that date.
(4) For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the member’s remuneration in any tax year would have exceeded the amount of the limit.
(5) In the case of a 2008 Section Optant, this regulation is subject to regulation 3.K.11.
3.F.13. This Chapter applies in the case of a transfer to which the public sector transfer arrangements apply as it applies in other cases, except to the extent that—
(a)any provision in this Chapter provides otherwise; or
(b)the arrangements themselves make different provision.
3.F.14.—(1) This regulation applies if—
(a)the employment of one or more active members (“the transferring employees”) is transferred without their consent to a new employer;
(b)on that transfer the transferring employees cease to be eligible to be active members of this Section of the scheme;
(c)after that transfer the transferring employees become active members of another occupational pension scheme (“the new employer’s scheme”);
(d)the Scottish Ministers have agreed special terms for the making of transfer value payments in respect of the transferring employees to the new employer’s scheme, after consultation with the scheme actuary; and
(e)the transferring employees have consented in writing to their rights being transferred in accordance with those terms.
(2) In the case of the transferring members or the transferred members, the transfer value payment to be paid—
(a)is not to be calculated in accordance with regulation 3.F.6 (calculating amounts of transfer value payments); and
(b)is such amount as the Scottish Ministers determine to be appropriate in accordance with the special terms after consulting the scheme actuary.
(3) This Chapter has effect with such modifications as are necessary to give effect to those terms.
(4) If the transfer is directly or indirectly attributable to an enactment, this Chapter has effect with such modifications as the Scottish Ministers consider necessary in consequence of the transfer.
(5) Where a member to whom this regulation applies is also a member to whom Part 2 applies, a bulk transfer under this regulation also operates as a transfer of that member’s rights under Part 2.
3.F.15.—(1) This regulation applies if—
(a)the employment of one or more persons (“the transferred employees”) is transferred without their consent to a new employer;
(b)on that transfer the transferred employees cease to be active members of an occupational pension scheme (“the former employer’s scheme”);
(c)after that transfer the transferred employees become active members of this Section of the scheme;
(d)the Scottish Ministers have agreed special terms for the acceptance of transfer value payments in respect of the transferred employees from the former employer’s scheme, after consulting the scheme actuary; and
(e)the transferred employees have consented in writing to their rights being transferred in accordance with those terms.
(2) This Section of the scheme has effect with such modifications as are necessary to give effect to the terms mentioned in paragraph (1)(e).
(3) If the transfer is directly or indirectly attributable to an enactment, this Section of the scheme has effect with such modifications as the Scottish Ministers consider necessary in consequence of the transfer.
3.F.16.—(1) This regulation applies in the case of a member whose transfer is subject to transfer arrangements concluded with any scheme for the provision of retirement benefits established outside the United Kingdom.
(2) This Section of the scheme applies in relation to the member with such modifications as the Scottish Ministers consider necessary to comply with—
(a)the terms of those arrangements;
(b)any applicable provision contained in or made under any enactment; and
(c)the requirements to be met by a scheme registered under Chapter 2 (registration of pension schemes) of Part 4 of the 2004 Act.
1988 c.1. Section 591 was repealed by Part 3 of Schedule 42 of the Finance Act 2004 (c.12).
For the meaning of “capped increase to pensionable earnings”, see regulation 3.F.12.
1988 c.1. Section 590C was repealed, subject to transitional provisions and savings, by Part 3 of Schedule 42 to the Finance Act 2004 (c.12).