Scottish Parliamentary Pensions Act 2009

The Fund trustees must pay all sums they receive under the scheme into the Pension Fund.

The Scottish Parliament may resolve to appoint as a Fund trustee any individual nominated by the SPCB as suitable to hold that office.

A Fund trustee appointment has immediate effect (unless the Scottish Parliament resolves otherwise).

The Court of Session may appoint a Fund trustee only on an application under section 19(2) of the Trusts (Scotland) Act 1921 (c. 58).

The Fund trustees do not have power to assume new trustees.

A Fund trustee may be remunerated, or receive allowances, from the Pension Fund for acting as a Fund trustee only if the following conditions are met—

Expenses properly incurred by the Fund trustees in connection with the performance of their functions are to be paid from the Pension Fund.

A resignation has effect immediately on the notice of resignation being given.

This rule does not apply where there is a sole trustee.

A Parliamentary resolution passed on a division for the purposes of this rule has effect only if voted for by at least two-thirds of the voting MSPs.

The Fund trustees may authorise any person (including one or more of themselves) to perform, or to authorise others to perform, any of their functions to the extent authorised.

An authorisation does not affect the Fund trustees' responsibility for delegated functions or their ability to perform those functions themselves.

The Fund trustees are free to vary or revoke any previous decision or authorisation (but such a variation or revocation may reduce the scheme benefits to which any individual is entitled only if made in accordance with any other scheme rule).

Every individual aged under 75 holding a pensionable office is to participate in the scheme as an “office-holder member” (unless the individual opts out under rule 24).

An MSP may opt out of participating in the scheme by giving notice to the Fund trustees.

This rule does not prevent an MSP who is also a holder of a pensionable office from opting out as an office-holder member only under rule 24 (but such an MSP may not opt out as an MSP member only).

In any other case, an MSP who opts out stops being a participating member on whatever date the Fund trustees decide is the earliest practicable date after they receive the opt-out notice.

The holder of a pensionable office may opt out of participating in the scheme as an office-holder member only by giving notice to the Fund trustees.

In any other case, a holder of a pensionable office who opts out stops being an office-holder member on whatever date the Fund trustees decide is the earliest practicable date after they receive the opt-out notice.

An MSP may not opt back into the scheme as an office-holder member unless that individual also opts back in as (or already is) an MSP member.

A participating member may, by giving notice to the Fund trustees, choose to make lower rate scheme member contributions instead of higher rate scheme member contributions (or vice versa).

If a participating member fails to repay a shortfall, the Fund trustees may recover the shortfall by directing the person responsible for paying the participating member's salary to adjust subsequent scheme member contributions accordingly.

An MSP member is to stop making scheme member contributions from MSP salary when he or she obtains sufficient reckonable service as an MSP to entitle him or her to the maximum annual MSP pension permitted by rule 38(2).

Such an MSP member is to begin making scheme member contributions again only if his or her MSP salary increases.

Scheme member contributions are not to be made from the office-holder salary of an office-holder member whose reckonable service as an office-holder already entitles him or her to the maximum office-holder pension entitlement permitted by rule 39(4).

Such an office-holder member is to begin making scheme member contributions again only if his or her office-holder salary increases.

The SPCB must pay a sum into the Pension Fund in respect of each financial year.

A period for which an MSP member makes scheme member contributions from salary payments in respect of MSP salary is a period of reckonable service as an MSP.

A period for which an office-holder member makes scheme member contributions from salary payments in respect of office-holder salary is a period of reckonable service as an office-holder.

The annual MSP pension payable to an individual is an amount equal to—

$\mathrm{MSP\text{'}s}\mathrm{final}\mathrm{salary}\times \left(\frac{A}{50}+\frac{B}{40}\right)$

where—

“A” is the individual's reckonable service as an MSP during which lower rate scheme member contributions were made, and

“B” is the individual's reckonable service as an MSP during which higher rate scheme member contributions were made.

Where an individual's annual MSP pension (including any enhancement made by virtue of other scheme rules) exceeds the individual's annual MSP pension cap, the annual MSP pension payable to the individual is to be reduced to the individual's annual MSP pension cap.

An individual's “annual MSP pension cap” is two-thirds of the individual's final salary as an MSP (ignoring any reduction in final salary by virtue of section 82(2) of the Scotland Act 1998 (c. 46)).

The annual office-holder pension payable to an individual is an amount equal to the total of the individual's office-holder pension entitlements.

An individual obtains an office-holder pension entitlement in respect of each period for which he or she holds a pensionable office.

The amount of an office-holder pension entitlement for such a period is calculated as follows—

$\mathrm{office-holder\text{'}s}\mathrm{final}\mathrm{salary}\mathrm{in}\mathrm{respect}\mathrm{of}\mathrm{period}\times \left(\frac{A}{50}+\frac{B}{40}\right)$

where—

“A” is the individual's reckonable service as an office-holder accrued when holding the office concerned in respect of which the individual made lower rate scheme member contributions, and

“B” is the individual's reckonable service as an office-holder accrued when holding the office concerned during which the individual made higher rate scheme member contributions.

A scheme pension is payable from the day on which the individual concerned is first entitled to receive it.

Pension payments are to continue for the rest of the individual's life (see rule 41 for exception).

Pension payments are to be made monthly in arrears (or in other instalments of no longer than one year as the Fund trustees may determine).

Where a scheme pensioner becomes an MSP or the holder of a pensionable office, pension payments are to be suspended until the individual concerned stops being an MSP or the holder of that office.

An individual may commute a portion of the individual's scheme pension into a lump sum (a “retirement lump sum”) by giving notice (a “commutation notice”) to the Fund trustees.

The annual scheme pension payable to an individual who is to be paid a retirement lump sum is to be reduced by an amount which the Fund trustees determine to be appropriate in consequence of the individual's entitlement to the retirement lump sum.

The Fund trustees may pay a lump sum (a “one-off lump sum”) to an individual if the following conditions are met—

The amount of one-off lump sum to which an individual is entitled on any day is an amount equal to the value of the individual's uncrystallised rights under the scheme on that day (as determined by the Fund trustees in accordance with section 212 of the Finance Act 2004 (c. 12)).

Payment of a one-off lump sum extinguishes the rights of all persons to receive scheme benefits in respect of the recipient.

In this rule, “relevant day” means the day on which the individual resigned as or otherwise stopped being, an MSP or, as the case may be, the holder of a pensionable office.

The Fund trustees may review an individual's entitlement to an ill-health pension at any time before the individual reaches the age of 65 (and may carry out such a review at regular intervals determined by them).

The Fund trustees may require an individual whose entitlement is being reviewed to provide evidence from a doctor on the individual's state of health.

The Fund trustees may determine that an individual who refuses to be examined in accordance with rule 54, or who otherwise fails to co-operate with a review, is no longer to be entitled to an ill-health pension.

The cost of any doctor's examination is to be borne by the Fund trustees or the examinee (as the Fund trustees may determine).

An individual is entitled to be paid a lump sum (an “ill-health lump sum”) instead of a scheme pension if the following conditions are met—

Payment of an ill-health lump sum extinguishes all the recipient's rights to receive scheme benefits.

A participating member may withdraw a nomination at any time by giving notice to the Fund trustees in such form as they may require.

The proportion of any death in service lump sum which would, but for rule 66(3), have been paid to invalidated nominees is to be paid to the deceased's personal representatives.

A deferred pensioner lump sum is to be equal to the amount of scheme member contributions, with interest, made by a deferred pensioner.

Where the surviving partner dies during the deceased's initial pension period, the pension payable under this rule is to be paid to the surviving partner's personal representatives.

An additional lump sum is to be paid to the deceased's personal representatives if the Fund trustees consider that the amount of any guaranteed lump sum (or any previous additional lump sum) should have been more than the amount paid (because they have revised their estimate of the amount of children's pension which they consider likely to be payable).

An additional lump sum is to be equal to the difference between the amount of the guaranteed lump sum (together with any previous additional lump sum) and the amount which the Fund trustees consider should have been paid.

A guaranteed lump sum or additional lump sum may be paid under this rule only if the Fund trustees are satisfied that, if paid, the lump sum would be a “defined benefits lump sum death benefit” for the purposes of Part 2 of Schedule 29 to the Finance Act 2004 (c. 12).

A pension payable under this rule is to be reduced by the amount of any children's pension payable during the same period.

A sum (a “short service refund”) is to be paid to an individual if the following conditions are met—

A participating member may increase his or her reckonable service by buying added years in accordance with this Part.

Added years can be bought as years and as fractions of years.

An individual who is an MSP member may apply to buy added years in respect of reckonable service as an MSP only.

An individual who is an office-holder member but not an MSP may apply to buy added years in respect of reckonable service as an office-holder only.

The Fund trustees may accept a participating member's application to buy added years by monthly instalments payable if the following conditions are met—

An accepted application is F5revocable by the member giving notice to the Fund trustees .

On payment of the last instalment, the participating member's reckonable service as an MSP or, as the case may, as an office-holder is increased by the number of added years bought.

The increased period of reckonable service is, for the purposes of rule 38(1) or, as the case may be, 39(3), to be treated as a period during which higher rate scheme member contributions were made.

Where added years are bought by an office-holder member who is not an MSP, the increase in reckonable service is, for the purposes of rule 39(3), to be attributed to the period in office being served when the added years are bought.

Where this rule applies no more instalments are payable and the individual’s reckonable service as an MSP or, as the case may be, office-holder is increased by a number of added years calculated as follows—

The Fund trustees may accept a participating member's application to buy added years by lump sum if the following conditions are met.

The lump sum is payable by the participating member during the period of 6 months following acceptance (and the right to buy added years in pursuance of an accepted application is extinguished at the end of that period).

The amount of the lump sum is to be determined by the Fund trustees by reference to the MSP's or, as the case may be, the office-holder's salary on the day he or she applied to buy added years.

On payment of the lump sum, the participating member's reckonable service as an MSP or, as the case may, as an office-holder is increased by the number of added years bought.

The increased period of reckonable service is, for the purposes of rule 38(1) or, as the case may be, 39(3), to be treated as a period during which higher rate scheme member contributions were made.

Where added years are bought by an office-holder member who is not an MSP, the increase in reckonable service is, for the purposes of rule 39(3), to be attributed to the period in office being served when the added years are bought.

A “pension credit member” is an individual on whom rights are conferred by the Fund trustees in accordance with paragraph 1(2) of Schedule 5 to the Welfare Reform and Pensions Act 1999 (c. 30).

An individual's benefits as a pension credit member are to be provided separately from any other benefits to which the individual may be entitled under the scheme.

A rule which extinguishes an individual's right to receive scheme benefits on being paid a lump sum does not extinguish any separate rights which the individual may have to receive benefits as a pension credit member (or as a surviving partner, dependant child or personal representative of such a member).

A “pension debit member” is an individual whose scheme benefits have been reduced under section 31 of the Welfare Reform and Pensions Act 1999 (c. 30).

When calculating a deceased individual's “scheme pension entitlement” for the purposes of Chapter 3 of Part J (see rule 56), any reduction of the deceased's scheme benefits by way of a pension debit is to be ignored.

A pension debit member may not replace scheme benefits by buying added years which the member would not have been able to buy had those benefits not been reduced.

This rule applies where an individual entitled to a pension credit (see section 29(1)(b) of the Welfare Reform and Pensions Act 1999 (c. 30)) dies before the Fund trustees have discharged their liability in respect of that credit.

Where this rule applies, the Fund trustees may pay a lump sum to the individual's personal representatives of any amount they think fit (up to a maximum of 25% of the pension credit).

The scheme administrator may pay a lifetime allowance charge for which the administrator is liable under section 217 of the 2004 Act.

If rule 97(2) prevents the scheme administrator from paying a lifetime allowance charge for which the administrator is liable under section 217 of the 2004 Act, the charge is to be paid from the Pension Fund.

A reduction under rule 98(2) must, in the scheme actuary's opinion, fully reflect the corresponding amount paid under rule 97.

The Fund trustees must keep proper accounts (and must, in particular, prepare annual statements of account for each financial year).

The “scheme actuary” is the person appointed by the Fund trustees in accordance with section 47(1)(b) of the Pensions Act 1995 (c. 26).

The Fund trustees may obtain an actuarial report on the scheme at any time they think fit (and must do so at intervals of no more than 3 years).

The Fund trustees must lay a copy of each actuarial report before the Scottish Parliament within 3 months of obtaining it.

Any individual who is entitled to a guaranteed minimum pension under the scheme in respect of any transfer-in sum is, on attaining pensionable age, to be paid a pension for the rest of the individual's life at a weekly rate of not less that his or her guaranteed minimum (if any) under sections 14 to 16 of the Pension Schemes Act 1993 (c. 48).

The commencement of payment of a pension payable under this rule is to be postponed if the individual concerned is an MSP or the holder of a pensionable office on the day on which it becomes payable.

The recipient of any amount so paid is to be liable to account for that amount (and the Fund trustees are to be relieved from any such liability).

A formal communication must be in writing.

A formal communication which is sent by electronic means is to be treated as being in writing if it is received in a form which is legible and capable of being used for subsequent reference.

A formal communication sent in the way described in rule 108(3)(b) is, unless the contrary is proved, to be treated as having been delivered on the day after it is sent (or, if that day falls on a weekend or a bank holiday, on the next weekday which is not a bank holiday).