The Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008

Explanatory Note

(This note is not part of the Regulations)

These Regulations set out provisions relating to benefits, membership and contributions in the new Local Government Pension (Scotland) Scheme (“the Scheme”) which is to come into existence on 1st April 2009 and replace the Local Government Pension (Scotland) Scheme 1998 (“the 1998 Scheme”).

Regulation 2 contains definitions.

Regulation 3 sets out who is a member of the Scheme: broadly speaking, this is anyone who is, or could have been, had it continued in existence, a member of the 1998 Scheme.

Regulation 4 contains a table of rates of contributions on pensionable pay, and makes provisions for part-time and term-time workers. “Pensionable pay” is defined in regulation 5.

Regulation 6 provides for a minimum membership of 2 years for entitlement to benefits in most cases, and regulations 7 and 8 explain how length of membership is calculated.

Regulations 9 to 12 provide for the calculation of final pay.

Regulations 12 and 13 respectively provide power for employing authorities to increase membership or award additional pension.

Regulations 14 and 15 respectively provide for voluntary additional payments to increase pension, and for AVCs.

Regulation 16 provides for the normal retirement age (65), regulation 17 for retirement after this age, and regulation 18 for flexible retirement.

Regulation 19 makes provision relating to redundancy and business efficiency, and regulation 20 makes provision relating to ill-health retirement.

Regulation 21 provides for commutation of pension, and regulation 22 places a limit on the total amount of benefits.

Regulations 23, 24 and 28 (active members), 32, 33 and 34 (deferred members) and 35, 36 and 37 (pensioner members) provide for death grants, survivor benefits and children’s pension for the respective classes of member. Regulation 25 contains a definition of “nominated cohabiting partner” and regulation 26 of “eligible child” for these purposes. Regulations 27 and 28 make further provision about children’s pensions.

Regulations 29 to 31 make provision relating to early payment of pension.

Regulation 38 provides for payment of increases under the Pensions (Increase) Act 1971, regulations 39 and 40 for commutation of small pensions and in the case of exceptional ill-health, and regulation 41 requires administering and employing authorities to have regard to guidance issued by the Scottish Ministers about future costs of the Scheme.

Regulation 42 deals with pension debits.

Regulation 43 prevents double entitlement.

Regulation 44 introduces the Schedule dealing with councillor members.

A regulatory impact assessment has not been produced for these Regulations as they have no impact on the costs of businesses, charities or voluntary bodies and do not have a significant financial impact on any public bodies