Deferred member’s pension account and deferred refund account
24.—(1) If a member ceases to be an active member and becomes a deferred member in relation to an employment—
(a)the active member’s pension account must be closed; and
(b)a deferred member’s pension account must be opened.
(2) The deferred member’s pension account must specify the opening balance in that account.
(3) On the day the account is opened, the opening balance is the amount of pension the member has accrued.
(4) The amount of pension a member has accrued is—
(a)the opening balance for the member’s last active Scheme year; plus
(b)the amount of earned pension, if any, from the first day of the member’s last active Scheme year until the last day of active membership; plus
(c)any additional pension acquired during that period pursuant to arrangements made under regulation 16(1) or (3) (additional pension contributions); plus, or minus, as the case may be;
(d)any pension account adjustment applicable during that period.
(5) Except where regulation 10 (temporary reduction in contributions) applied, the amount of earned pension for the period mentioned in paragraph (4)(b) is 1/49th of the pensionable pay received during that period (irrespective of whether it relates to work carried out in that period).
(6) Where regulation 10 (temporary reduction in contributions) applied to any of the period mentioned in paragraph (4)(b), the amount of earned pension is 1/98th of the member’s pensionable pay received while that regulation applied (irrespective of whether it relates to work carried out in that period).
(7) The balance in the member’s account at the end of the Scheme year in which the member becomes a deferred member is adjusted at the beginning of the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the member became a deferred member in accordance with actuarial guidance issued by the Scottish Ministers.
(8) The revalued balance calculated under paragraph (7) is the opening balance for the following Scheme year and thereafter, subject to paragraph (9), the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971(1) applied.
(9) If a deferred member’s account is closed before the end of a Scheme year, any pension account adjustment applicable to the account must be made immediately before the date the account is closed.
(10) Other than to correct an error in a deferred member’s pension account, the only pension account adjustment that can arise under this regulation is an adjustment as a consequence of a matter specified in regulation 23(6) (adjustments to active member’s pension accounts).
(11) If a member ceases to be an active member without becoming entitled to any benefits because that member has less than two years qualifying service—
(a)the active member’s pension account must be closed; and
(b)a deferred refund account must be opened.
(12) Paragraphs (3) to (10) of this regulation apply to deferred refund accounts as they apply to deferred member pension accounts.