The Local Government Pension Scheme (Scotland) Regulations 2018

Assumed pensionable pay

21.—(1) During the period the circumstances specified in paragraph (2) apply in relation to an employment, the pensionable pay that an active member is, in relation to that employment, treated as receiving for the purposes of these Regulations (including this regulation), other than regulations 9 to 12 and 14 (excluding 11(2) (contributions)), is that member’s assumed pensionable pay calculated in accordance with paragraph (4).

(2) The circumstances are that the member—

(a) is on leave due to sickness or injury and is on reduced contractual pay or no pay;

(b) is on child-related leave other than any part of that leave period where the pensionable pay received is greater than the assumed pensionable pay for that part of the leave period; or

(c) is absent on reserve forces service leave.

(3) Paragraph (2)(c) does not apply in respect of any period of service which qualifies the member for benefits under any other occupational pension scheme in respect of that service.

(4) Subject to paragraphs (6) and (7), the annual rate of assumed pensionable pay for an employment for a Scheme year is—

(a) where the member is paid monthly—

(i) the pensionable pay the member received relating to that employment in the 3 months preceding the commencement of the pay period in which the circumstance specified in paragraph (2) began or, for the purposes of regulations 37(1)(a) (calculation of ill-health pension amounts), 38(3)(death grants: active members), 39(4)(b) (Survivor benefits: partners of active members), 40(4)(b), (5)(b), (9)(b) and (10)(b) (Survivor benefits: children of active members), the pay period in which, respectively, the ill-health retirement or death occurred;

(ii) less any lump sum received during that period;

(iii) with the resulting sum being grossed up to an annual figure;

(iv) to which any regular lump sum payment received in the 12 months preceding the date specified in paragraph (i) should be added;

(v) if the member received no pensionable pay relating to that employment in the 12 weeks preceding the commencement of the pay period in which the absence commenced, assumed pensionable pay should be calculated on the pensionable pay the member received relating to that employment in the 3 months preceding the pay period in which they last received pensionable pay in that employment;

(b) where the member is paid otherwise than monthly—

(i) the pensionable pay the member received relating to that employment in the 12 weeks preceding the commencement of the pay period in which the circumstance specified in paragraph (2) began or, for the purposes of regulations 37(1)(a) (calculation of ill-health pension amounts), 38(3) (death grants; active members), 40(4)(b), (5)(b), (9)(b) and (10)(b) (Survivor benefits: children of active members) the pay period in which, respectively, the ill-health retirement or death occurred;

(ii) less any lump sum received;

(iii) with the resulting sum being grossed up to an annual figure;

(iv) to which any regular lump sum payment received in the 12 months preceding the date specified in paragraph (i) should be added;

(v) if the member received no pensionable pay relating to that employment in the 12 weeks preceding the commencement of the pay period in which the absence commenced, assumed pensionable pay should be calculated on the pensionable pay the member received relating to that employment in the 3 months preceding the pay period in which they last received pensionable pay in that employment.

(5) For the purposes of paragraph (4) a “regular lump sum” is a payment for which the member’s employer determines there is a reasonable expectation that such a payment would be paid on a regular basis.

(6) Where the pensionable pay received by a member during the period specified in paragraph (4)(a)(i) or (4)(b)(i) was, in the opinion of the Scheme employer, materially higher or lower than that member normally received, for the purposes of this regulation the Scheme employer may substitute for the pensionable pay the member received a higher or lower level of pensionable pay to reflect the level of pensionable pay that the member would normally have received.

(7) Where any pensionable pay that has been received by a member includes fees of the kind listed in regulation 20(2)(o) (returning officer fees), for the purposes of this regulation the annual rate of pensionable pay relating to those fees for the period specified in paragraph (4)(a)(i) or (4)(b)(i) is the annual average of that pay during the 3 years preceding the date the ill-health retirement or death occurred.

(8) The assumed pensionable pay that a member is treated as receiving is adjusted by the revaluation adjustment on the first day of the second Scheme year which commenced after the first date on which the member is treated as receiving assumed pensionable pay.

(9) For the purposes of regulations 37(1)(a) (calculation of ill-health pension amounts), 38(3) (death grants: active members), 39(4)(b) (survivor benefits: partners of active members) and 40(4)(b), (5)(b), (9)(b) and (10)(b) (survivor benefits: children of active members), the annual rate of assumed pensionable pay for an employment under regulation 99(2) (separate employments etc.), is the annual average pensionable pay the member received relating to that employment in the 3 years (or the period of membership in that employment, if less than 3 years) preceding the commencement of the pay period in which the ill-health retirement or death occurred.