The Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999

Interpretation

1.—(1) In this Schedule, unless the context otherwise requires–

“approved scheme” means a retirement benefits scheme approved under Chapter I of Part XIV of the Taxes Act 1988 or such other legislation as may be in force from time to time in respect of such approval;

“contributor” means a participant who is admitted to the AVC Scheme in accordance with paragraph 3(1);

“dependant” of a contributor means the contributor’s spouse and any eligible child of the contributor;

“free-standing additional voluntary contribution scheme” means an additional voluntary contribution scheme which is an approved scheme to which an employer does not contribute;

“index” has the same meaning as in Schedule 2;

“maximum pension” shall be construed in accordance with Schedule 2;

“pensionable service” has the same meaning as in Schedule 2;

“personal pension scheme” means a scheme approved under Chapter IV of Part XIV of the Taxes Act 1988;

“retained benefits” has the same meaning as in Schedule 2;

“retained death benefits” means any lump sum benefits payable on the contributor’s death derived from the sources set out in the definition of “retained benefits” in Schedule 2, but if the total of retained death benefit is less than £2,500 it may be disregarded:

Provided that benefits representing a return of the contributor’s own contributions plus interest thereon and benefits derived from a return of funds under retirement annuity contracts approved under section 620 of the Taxes Act 1988 or personal pension schemes may be ignored for this purpose;

“retirement benefits scheme” means a scheme within the meaning of section 611 of the Taxes Act 1988;

“service” has the same meaning as in Schedule 2.

(2) In this Schedule, “final remuneration” means the greater of–

(a) the highest emoluments of a person as a member of the Parliament and/or as an office holder which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any period of 12 months in the 5 years preceding the relevant date, and

(b) the yearly average of the total emoluments of a person as a member of the Parliament and/or as an office holder which are assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined for any 3 or more consecutive years ending not earlier than 10 years before the relevant date:

• Provided that–

  (i)

  where final remuneration is computed by reference to any year other than the last complete year ending on the relevant date, the contributor’s remuneration (as calculated in (a) above) or total emoluments (for the purposes of (b) above) of any year may be increased in proportion to any increase in the index from the last day of that year up to the relevant date;

  (ii)

  an early retirement pension in payment by virtue of Part H of this Scheme may not be included in final remuneration;

  (iii)

  a contributor in receipt of a much reduced remuneration by reason of incapacity for more than 10 years up to the relevant date may calculate final remuneration under (a) or (b) above with the final remuneration calculated at the cessation of normal pay and increased in accordance with the index;

  (iv)

  final remuneration shall not exceed the permitted maximum.

  For the purposes of providing immediate benefits at the relevant date it is permitted to calculate final remuneration on the appropriate basis above using remuneration assessable to tax under Case I or II of Schedule E and upon which tax liability has not been determined. On determination of this liability final remuneration shall be recalculated. If this results in a lower final remuneration then benefits in payment shall be reduced as necessary. Where final remuneration is greater it is possible to augment the benefits in payment. Such augmentation, however, must take the form of an annuity.

• Where immediate benefits are not being provided or where a transfer payment is to be made in respect of accrued pension benefits then final remuneration may only be calculated using remuneration assessable to income tax under Case I or II of Schedule E and upon which tax liability has been determined.