The Electricity (Amendment of Scottish Pension Schemes) Regulations 1990

Explanatory Note

(This note is not part of the Regulations)

These Regulations make certain amendments to the 2 pension schemes for the electricity industry in Scotland, namely the Hydro-Electric Pension Scheme (formerly called the Hydroboard Superannuation Fund) (“the North Scheme”) and the ScottishPower Pension Scheme (formerly called the South of Scotland Electricity Board’s Superannuation Scheme) (“the South Scheme”). The amendments are related to the transfer, under the Electricity Act 1989, of property, rights and liabilities of the North of Scotland Hydro-Electric Board and the South of Scotland Electricity Board to the successor companies, Scottish Hydro-Electric plc, Scottish Power plc and Scottish Nuclear Limited. The transfer date was 31st March 1990. After that date employees of Scottish Hydro-Electric plc generally participate in the North Scheme and employees of the other two successor companies generally participate in the South Scheme.

The Regulations have retrospective effect from 29th March 1990 as respects regulations 1, 2 and 3 and from 31st March 1990 as respects regulations 4 and 5. They do not place any person, other than the Boards or their successor companies, in a worse position than he would have been in if the Regulations had been made to have effect only from the date of making. On this basis retrospection is permitted by Schedule 15, paragraph 1(4) to the Electricity Act 1989.

Regulation 3 and Parts I and II of the Schedule amend the North Scheme and the South Scheme to ensure that Board members and former Board members who had been treated in practice as members of those Schemes became, prior to the transfer date of 31st March 1990, members of the appropriate Scheme. This regulation has effect from 29th March 1990.

Regulation 4 and Part III of the Schedule amend the North Scheme with effect from 31st March 1990 to allow certain employees to continue to participate in that Scheme. These are employees at Cruachan Power Station, who were members of the North Scheme immediately before 31st March 1990, and who on the transfer of that Station to Scottish Power plc on that date became employees of Scottish Power plc. Such continued participation ceases if the employee changes post after 31st March 1990.

Regulation 5 and Part IV of the Schedule amend the South Scheme with effect from 31st March 1990 to allow Scottish Nuclear Limited, a participating employer in that Scheme, to withdraw from the Scheme on giving a minimum of 3 months' notice.