PART 1 PRELIMINARY

Citation and commencement

1. These Regulations may be cited as the Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 and come into force on 1st April 2009.

Interpretation

2.–(1) Schedule 1 (interpretation) contains definitions of expressions used in these Regulations which apply for their interpretation unless the context indicates they have a different meaning.

(2) References to members or membership refer to active members of the Scheme or active membership under the Scheme respectively unless otherwise stated or the context indicates a different meaning.

(3) The definition of "Reference Banks" in Schedule 1 must be read with-

(a) section 22 of the Financial Services and Markets Act 2000(2);

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.

PART 2 MEMBERSHIP OF SCHEME

General eligibility for membership

3.–(1) A person may only be an active member if-

(a) this regulation, regulation 4 (employees of non-scheme employers: community admission bodies) to 7 (eligibility in certain cases of persons who are not employers); or

(b) regulation 3(3) (active members) of the Benefits Regulations,

enables the person to be one and the person is not prevented from being one by regulation 9 (further restrictions on eligibility).

(2) A person may be a member if the person is employed by a body which is listed in Schedule 2.

Employees of non-Scheme employers: community admission bodies

4.–(1) Subject to the requirements of this regulation and regulation 6 (admission agreements further provisions), an administering authority may make an admission agreement with any community admission body.

(2) The following are community admission bodies-

(a) a body, which provides a public service in the United Kingdom otherwise than for the purposes of gain and which either-

(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest (whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise); or

(ii) is approved by the Scottish Ministers for the purposes of admission to the Scheme;

(b) a body to the funds of which a Scheme employer contributes;

(c) a body representative of-

(i) local authorities;

(ii) local authorities and officers of local authorities;

(iii) officers of local authorities where it is formed for the purpose of consultation on the common interests of local authorities and the discussion of matters relating to local government; or

(iv) Scheme employers;

(d) A voluntary organisation engaged in the provision of services under-

(i) Part III of the National Health Service (Scotland) Act 1978(3);

(ii) Part III of the National Assistance Act 1948(4);

(iii) The Disability Discrimination Act 1995(5);

(iv) The Mental Health (Scotland) Act 1984(6) or the Mental Health (Care and Treatment) (Scotland) Act 2003(7); or

(v) Section 14 of the Social Work (Scotland) Act 1968 (which places a duty on local authorities to provide domiciliary services and laundry facilities to certain households)(8).

(3) An approval under paragraph (2)(a)(ii) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw an approval at any time if such conditions are not met.

(4) Where, at the date that an admission agreement is made with a body mentioned in paragraph (2)(b), the contributions paid to the body by one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, it must be a term of the admission agreement that the Scheme employer paying contributions (or, if more than one pays contributions, all of them) guarantees the liability of the body to pay all amounts due from it under these Regulations or the Benefit Regulations.

Employees of non-Scheme employers: transferee admission bodies

5.–(1) Subject to the requirements of this regulation and regulation 6 (admission agreements further provisions), an administering authority may make an admission agreement with any transferee admission body.

(2) A transferee admission body is a body, other than a community admission body, that is providing or will provide-

(a) a service or assets in connection with the exercise of a function of a Scheme employer as a result of-

(i) the transfer of the service or assets by means of a contract or other arrangement; or

(ii) guidance provided under section 2 of the Local Government in Scotland Act 2003(9) (requiring a local authority to have regard to guidance provided by the Scottish Ministers on performance of its duties) or a statement of findings under section 3 of that Act (which allows Audit Scotland to take certain actions following a report on a local authority by the Controller of Audit); or

(b) a public service and which is approved by the Scottish Ministers for the purposes of admission to the Scheme.

(3) In the case of an admission agreement with a transferee admission body referred to in paragraph (2)(a) the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.

(4) An approval under paragraph (2)(b) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw an approval at any time if such conditions are not met.

(5) An admission agreement with a transferee admission body shall require-

(a) that in the case of a body under-

(i) paragraph (2)(a), the Scheme employer; or

(ii) paragraph (2)(b), the transferee admission body, to the satisfaction of the administering authority,

shall carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee body; and

(b) that, where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.

(6) The indemnity or bond must be with-

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000(10) to accept deposits or to effect and carry out contracts of general insurance;

(b) an EEA firm of the kind mentioned in paragraph (5)(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or

(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.

(7) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 3.

(8) This paragraph applies where a transferee admission body undertakes to meet the relevant requirements of this regulation and-

(a) in the case of a body under paragraph (2)(a), the Scheme employer undertakes to meet the relevant requirements of this regulation; or

(b) in the case of a body under paragraph (2)(b), the Scottish Ministers approve the body for admission to the Scheme and the conditions, if any, to which the approval is subject have been met.

(9) Where paragraph (8) applies-

(a) an administering authority must admit to the Scheme the eligible employees of the transferee admission body specified by the body; and

(b) where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

(10) Only those employees of the transferee admission body who are employed in connection with the provision of a service or assets mentioned in paragraph (2) are eligible to be designated, under regulation 6(1) (admission agreements - further provisions), members of the Scheme.

Admission agreements - further provisions

6.–(1) A person employed by a community admission body or an eligible person employed by a transferee admission body may only be a member if the person, or a class of employees to which the person belongs, is designated in the admission agreement by the body as being eligible for membership of the Scheme.

(2) An admission agreement must terminate if the admission body ceases to be such a body and may make such other provision about its termination as the parties consider appropriate.

(3) When an administering authority makes an admission agreement it must promptly inform the Scottish Ministers of-

(a) the date the agreement takes effect;

(b) the admission body´s name; and

(c) in the case of an agreement with a transferee admission body under regulation 5(2)(a) (transferee admission bodies) the name of the relevant Scheme employer.

(4) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions or provide services or assets in areas that overlap or adjoin each other.

(5) Any question which may arise between the parties to an admission agreement relating to the construction of the agreement or the rights and obligations under that agreement shall be referred in writing to the Scottish Ministers for determination.

(6) These Regulations and the Benefits Regulations apply to employment with an admission body in which the employee is an active member in the same way as if the admission body were a Scheme employer.

Eligibility in certain cases of persons who are not employees

7.–(1) A person may be an active member if that person is an eligible officer.

(2) These are eligible officers-

(a) a registration officer;

(b) a person who immediately before 16th May 1974 was a member of a passenger transport executive or a director of a subsidiary of a passenger transport executive who was a contributory employee in that position and continues in it; or

(c) a councillor.

(3) If a registration officer is an active member, the registration officer must be treated as being in employment with the local authority who are the local registration authority for the purposes of section 5 of the Registration of Births, Deaths and Marriages (Scotland) Act 1965(11) and by whom the registration officer was appointed or deemed to have been appointed under section 7 of that Act.

(4) If a person mentioned in paragraph (2)(b) is an active member that person must be treated as being in the employment of the passenger transport executive.

(5) A person who has been appointed as a rent officer under section 43 of the Rent (Scotland) Act 1984(12) must be treated as being in employment of the local authority with whom the Scottish Ministers have made arrangements under that section to provide for the superannuation of the officer.

(6) A member of a passenger transport executive or a director of a subsidiary of such an executive must be treated as being in employment with the relevant executive.

(7) Regulation 8(1) (separate employments etc.) applies to the persons holding the positions specified in paragraph (6) as it applies to the employees specified in that regulation.

(8) If a councillor member is an active member, the councillor must be treated as being in the whole time employment of the local authority of which the councillor is a member and references to employment by or under such an employer and all similar expressions shall be construed accordingly.

Separate employments etc.

8.–(1) Where a person holds separate employments under one employing authority, these Regulations and the Benefits Regulations apply as if each of them were under a different employer.

(2) This paragraph applies where a whole time or a part-time employee of an employing authority is also employed to carry out one or more of the additional duties.

(3) The additional duties are duties as-

(a) a returning officer at-

(i) local government elections; or

(ii) elections for the Scottish Parliament; or

(b) an acting returning officer (including as a regional or local returning officer at a European Parliamentary election which are required by regulations made under paragraph 2 of Schedule 1 to the European Assembly Elections Act 1978(13) to be discharged by a returning officer).

(4) This paragraph applies where, immediately before 1st April 1974, an employee mentioned in paragraph (2) was in whole time or part time employment and had duties which included one or more of the additional duties.

(5) Where paragraphs (2) or (4) apply, each additional duty must be treated as a separate variable time employment with a different employing authority from the employing authority with whom the employee is in the whole time or, as the case may be, part time employment.

(6) Where-

(a) paragraph (2) applies; and

(b) paragraph (4) does not apply,

the employee´s employment to carry out an additional duty (or duties) must be treated as a single separate variable time employment with a different Scheme employer.

(7) A person who-

(a) is a member in any employment; and

(b) is also a medical inspector of immigrants appointed under the Immigration Act 1971(14) who receives his or her pay in that appointment from a Scheme employer listed in Schedule 2,

is eligible to be an active member in that appointment and shall be deemed to be in the employment of that Scheme employer.

Further restrictions on eligibility

9.–(1) Subject to paragraph (6) if a person´s employment entitles the person to belong to another public service pension scheme, or would so entitle him were it not for his age, that employment does not entitle the person to be a member, unless that other scheme was made under section 7 of the Superannuation Act 1972.

(2) "Public service pension scheme" has the meaning given by section 150 of the Finance Act 2004(15) (meaning of "pension scheme").

(3) An employee of an admission body may not be a member if the employee is a member of another occupational pension scheme in relation to the employment in respect of which that employee would otherwise be eligible to be a member of the Scheme under regulation 6(1) (admission agreements - further provisions).

(4) A person may not become a member after the day before the person´s 75th birthday.

(5) Part-time employment as an employee of a relevant authority (as defined in section 6 of the Fire (Scotland) Act 2005(16)) on terms under which the retained or voluntary member is or may be required to engage in fire fighting does not entitle the member to be a member of the Scheme.

(6) A person may be a member of the Scheme despite being entitled to be a member of the National Health Service Pension Scheme for Scotland(17) ("the NHS Scheme") if-

(a) that person´s entitlement to be a member of the NHS Scheme is by reason of the person´s employment by an NHS Scheme employing authority as a result of a prescribed arrangement under section 15 of the Community Care and Health (Scotland) Act 2002(18) (delegation etc. between local authorities and NHS bodies);

(b) the person is specified in, or within a class of employees specified in, an admission agreement made between an administering authority and an NHS Scheme employing authority; and

(c) the person was an active member of the scheme immediately before that person´s employment by the NHS Scheme employing authority.

Joining the Scheme

10.–(1) A person who is eligible to be an active member of the Scheme on the day the employment begins becomes an active member on that day unless the person notifies his or her employer in writing before his or her employment begins that he or she does not wish to become a member on that date.

(2) A person who applies to become a member after the date the member would otherwise become a member under paragraph (1) becomes a member on the first day of the first payment period following the application.

(3) Subject to paragraph (5), a person who only becomes eligible to be a member of the Scheme on a date after the employment begins becomes an active member on that date unless the person notifies his or her employer in writing before that date that he or she does not wish to become a member on that date.

(4) A person who applies to become a member after the date the person would otherwise become a member under paragraph (3) becomes a member on the first day of the first payment period following the application.

(5) A person referred to in paragraph (3) who is employed by a body listed in Schedule 2 may be an active member from the date that the employment began if the person applies to be so and pays contributions in respect of that earlier period at the appropriate contribution rate as provided in regulation 4 of the Benefits Regulations (contributions payable by active members).

(6) A former active member who is eligible for membership may reapply for membership of the Scheme and becomes an active member on the first day of the first payment period following the application.

(7) In paragraphs (2), (4) and (6), regulation 11(5) (ending of membership) and regulation 20(7) (payment of additional regular contributions), a payment period is a period of service to which the employee´s wages or salary payment relate.

Ending of membership

11.–(1) A person stops being a member in an employment if the person stops being eligible for membership in that employment.

(2) A person who wishes to leave the Scheme must notify his or her employer in writing.

(3) A person with more than one employment may leave the Scheme if the person wishes in respect of one, some or all of the employments.

(4) A member who gives notice under paragraph (2) stops being a member in the specified employment from the date the notification specifies.

(5) But, if a date earlier than the notification or no date is specified, the member stops being a member at the end of the payment period during which the notification is given.

(6) Where notice is given by a person before that person has been a member for one month, that person must be treated as not having been a member in that period.

(7) A person who is a member and is an employee of a transferee admission body is treated for the purposes of these Regulations and the Benefit Regulations as leaving a local government employment when the person ceases to be employed in connection with the provision of the service or assets under regulation 5(2) (employees of non-Scheme employers: transferee admission bodies) by virtue of which the person became eligible to join the scheme.

Periods of membership

12.–(1) A person may not count any period of membership if the person´s contributions for that period have been returned to the person.

(2) A person may not count any period of membership if the person´s rights in respect of it have been transferred by payment of a transfer value (see Part 9).

(3) A person may not count as a period of membership for the purpose of calculating any benefit under regulations 16 (retirement benefits) to 20 (early leavers: ill health) or 29 (calculation on leaving early) to 31 (early payment of pensions: ill-health) of the Benefits Regulations so much of that person´s membership as requires to be excluded to reduce the value referred to in regulation 68(2)(b) of these Regulations by the amount recovered or retained under regulation 68 (recovery or retention where former member has misconduct obligation) of these Regulations.

(4) Where a person pays contributions under regulation 17 (contribution during trade dispute absence) for any period, that period counts as a period within regulation 7 of the Benefits Regulations (periods of membership) even if the person´s contract of employment did not subsist throughout that period.

(5) A period of membership under regulation 7(1)(a) of the Benefits Regulations includes any period for which a member is treated as having paid contributions under regulation 14 (concurrent employments) and regulation 41(4) (rights to return of contribution) of these Regulations.

Re-employed and rejoining deferred members

13.–(1) Subject to paragraph (2), where a deferred member becomes an active member in an employment ("the new employment") before becoming entitled to the immediate payment of retirement benefits, the member may, by giving notice in accordance with paragraph (8), elect to have his or her membership in any former employment aggregated with his or her membership in the new employment.

(2) In the case of a deferred member who has been a councillor member, an election under paragraph (1) may only aggregate councillor membership with former councillor membership and, as the case may be, membership which is not councillor membership with former membership which is not councillor membership.

(3) Where a member elects under paragraph (1)-

(a) the member ceases to be entitled to rights under the Scheme in respect of the member´s former membership (except in so far as the member is entitled by virtue of having become an active member again to rights in respect of the aggregated total membership); and

(b) the member ceases to count as a deferred member for these Regulations as respects the member´s former membership (unless the member becomes a deferred member again after ceasing to be an active member).

(4) Where the member has ceased to be an active member more than once, the member may choose to aggregate under paragraph (1)-

(a) the membership at each of the times the member so ceased; or

(b) only such periods of membership as are specified in the notice.

(5) Where a member who may elect under paragraph (1) does not do so or does not elect as respects all periods of the membership-

(a) in applying regulations 6(1) (benefits), 8 (calculation of periods of length of membership) and 20 (early leavers: ill health) of the Benefits Regulations as respects any later membership, the total membership excludes unaggregated periods; and

(b) as respects each unaggregated period of the member´s former membership-

(i) paragraph (3) does not apply;

(ii) the member shall continue to be treated as a deferred member or, as the case may be, as a pensioner member (and not as an active member); and

(iii) the member shall be entitled to the same rights as if the member were not also an active member;

and references in these provisions to the member´s appropriate administering authority or appropriate fund shall be construed accordingly.

(6) For this regulation a period of membership is an unaggregated period if-

(a) no previous election has been made under this regulation for its aggregation; and

(b) in the case of a period as respects which the member was entitled to elect under regulation E2(9)(c) of the 1987 Regulations (elections to remain entitled to preserved benefits) or any previous corresponding provision of the Scheme, such an election was made.

(7) But a member cannot choose to aggregate any period of former membership which the member could have chosen to aggregate with another period of former membership but did not before the expiry of the period mentioned in paragraph (8)(a).

(8) Notice for the purposes of paragraph (1) must be given in writing-

(a) while the deferred member is an active member in the new employment;

(b) to the member´s appropriate administering authority in that employment; and

(c) if the appropriate fund for membership in the new employment is different from that for any former employment to which the notice relates, to the appropriate administering authority in that former employment.

(9) References in this regulation to former membership include all membership which the member was entitled to count as membership immediately before the member ceased former active membership.

(10) Where a person ceases to be an active member in one employment and immediately becomes an active member in another employment, the person shall be treated for the purposes of this regulation as if the person were a deferred member as respects the first employment, despite never having ceased to be an active member of the Scheme.

Concurrent employments

14.–(1) Where a person-

(a) ceases to be an active member in one employment in respect of which the person has at least two years' total membership ("the first employment"); and

(b) continues as an active member in another employment the person held concurrently with the first employment,

the person may elect to have the former membership in respect of the first employment aggregated with the person´s membership in that other employment.

(2) If the person so elects, the provisions of regulation 13 (re-employed and rejoining deferred members) shall apply as if references to-

(a) the person´s former membership or former active membership were references to the person´s membership from the person´s first employment;

(b) the new employment were references to the person´s concurrent employment; and

(c) the employment in which the person becomes an active member again were references to that concurrent employment.

(3) If no election is received within one month of a notification by an administering authority to a person of the person´s right to elect under paragraph (1), the administering authority may aggregate the person´s former membership in respect of the first employment with the membership in the other employment.

(4) In the case of a person to whom this regulation applies, the period of membership which will be aggregated with the person´s membership from the concurrent employment will be equal to the person´s membership from the person´s first employment, as reduced under regulation 8(3) and (4) (calculation of length of periods of membership) of the Benefits Regulations if the first employment was part time, multiplied by the fraction-

PART 10 PENSION SHARING

CHAPTER I PRELIMINARY PROVISIONS

Pension debit member

83.–(1) The amount of a pension or retirement grant payable to a pension debit member shall be reduced to take into account the debit to which the shareable rights of the pension debit member are subject under a pension sharing order.

(2) The amount of the reduction shall be calculated in accordance with guidance issued for this purpose by the scheme actuary.

CHAPTER II SHARING OF RIGHTS

Pension sharing mechanism in the Scheme

84.–(1) Pension sharing is available under the Scheme in respect of any of a person´s shareable rights under the Scheme except as otherwise provided in this regulation.

(2) Excluded from shareable rights for the purposes of this Part of these Regulations are any rights under the Scheme in respect of which a person is in receipt of a pension by virtue of being the surviving spouse or other dependant of a deceased member with pension rights under the Scheme(48).

Pension sharing order activates pension sharing creating pension debits and credits

85. On the coming into effect of a pension sharing order-

(a) the transferor´s shareable rights under the Scheme become subject to a debit of the appropriate amount ("pension debit"(49)) as defined in regulation 86 (calculation of "appropriate amount"); and

(b) the transferee becomes entitled to a credit of that amount ("pension credit"(50)) as against the administering authority.

Calculation of "appropriate amount"

86.–(1) Where the relevant pension sharing order specifies a percentage value to be transferred, the appropriate amount for the purposes of regulation 85 (pension sharing order) is the specified percentage of the cash equivalent of the relevant benefits on the valuation day.

(2) Where the relevant pension sharing order specifies an amount to be transferred, the appropriate amount for the purposes of regulation 85 is the lesser of-

(a) the specified amount; and

(b) the cash equivalent of the relevant benefits on the valuation day.

(3) Where the transferor is in pensionable service under the Scheme on the transfer day, the relevant benefits for the purposes of paragraphs (1) and (2) are the benefits or future benefits to which the transferor would be entitled under the Scheme by virtue of the transferor´s shareable rights under it had the transferor´s pensionable service terminated immediately before that day.

(4) Otherwise, the relevant benefits for the purposes of paragraphs (1) and (2) are the benefits or future benefits to which, immediately before the transfer day, the transferor is entitled under the terms of the Scheme by virtue of the transferor´s shareable rights under it.

(5) For the purposes of this regulation, the valuation day is such day within the implementation period for the discharge of the credit referred to in regulation 85(b) as the administering authority may specify by notice in writing to the transferor and transferee.

(6) In this regulation, the transfer day means the day on which the relevant pension sharing order or provision takes effect(51).

Pension debits and reduction of benefit

87.–(1) Subject to paragraph (2), where a member´s shareable rights are subject to a pension debit, each benefit or future benefit-

(a) to which the member is entitled under the Scheme by virtue of those rights; and

(b) which is a qualifying benefit,

is reduced by the appropriate percentage.

(2) Where a pension debit relates to the shareable rights under the Scheme of a member who is in pensionable service under the Scheme on the transfer day, each benefit or future benefit-

(a) to which the person is entitled under the Scheme by virtue of those rights; and

(b) which corresponds to a qualifying benefit,

is reduced by an amount equal to the appropriate percentage of the corresponding qualifying benefit.

(3) A benefit is a qualifying benefit for the purposes of paragraphs (1) and (2) if the cash equivalent by reference to which the amount of the pension debit is determined includes an amount in respect of it.

(4) In this Part(52)-

"appropriate percentage", in relation to a pension debit, means-

"relevant order or provision", in relation to a pension debit, means the pension sharing order on which the debit depends;

"transfer day" in relation to a pension debit, means the day on which the relevant order or provision takes effect.

Effect of pension sharing on protected rights and guaranteed minimum pension

88. Where a member has protected rights or a guaranteed minimum in relation to a pension provided by the Scheme, these shall in the case of a pension debit in relation to the member´s rights under the Scheme be reduced in terms of the provisions in sections 10(4) and (5) and 15A of the Pension Schemes Act 1993(53).

CHAPTER III MODE OF DISCHARGE AND "IMPLEMENTATION PERIOD"

Discharge of pension credit liability by conferring "appropriate rights" or making transfer payment to another scheme

89.–(1) The administering authority in relation to a pension credit derived from the Scheme may discharge its liability in respect of the credit by conferring appropriate rights under the Scheme on the ex-spouse or ex civil partner-

(a) with the consent of the ex-spouse or ex civil partner; or

(b) in accordance with regulations made by the Secretary of State under paragraph 1(2)(b) of Schedule 5 to the 1999 Act(54).

(2) The administering authority in relation to a pension credit derived from the Scheme may discharge its liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the ex-spouse or ex civil partner if-

(a) the qualifying arrangement is not disqualified as a destination for the credit;

(b) the person responsible for that arrangement is able and willing to accept payment in respect of the credit; and

(c) payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State under paragraph 1(3)(c) of Schedule 5 to the 1999 Act(55).

(3) For the purposes of paragraph (1), no account is to be taken of consent of the person entitled to the pension credit unless-

(a) it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under paragraph (2); or

(b) it is not withdrawn within 7 days of receipt of such notice.

(4) For the purposes of this Part, rights conferred on the ex-spouse or ex civil partner are appropriate if-

(a) they are conferred with effect from, and including, the day on which the pension sharing order, under which the credit arises takes effect; and

(b) their value, when calculated in accordance with regulations made by the Secretary of State under section 30(1) of the 1999 Act in relation to the calculation of cash equivalents(56), equals the amount of the credit.

Qualifying arrangements

90.–(1) The following are qualifying arrangements for the purposes of regulation 89 (discharge of pension credit liability)-

(a) an occupational pension scheme;

(b) a personal pension scheme;

(c) an appropriate annuity contract;

(d) an appropriate policy of insurance; and

(e) an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations 1996(57).

(2) An annuity contract or policy of insurance is appropriate for the purposes of paragraph (1) if, at the time it is entered into or taken out, the insurance company with which it is entered into or taken out-

(a) is carrying on ordinary long-term insurance business in the United Kingdom or any other member State; and

(b) satisfies such requirements as the Secretary of State may prescribe by regulations made under paragraph 6(2)(b) of Schedule 5 to the 1999 Act(58).

(3) Paragraph (2)(a) must be read with-

(a) section 22 of the Financial Services and Markets Act 2000(59);

(b) any relevant order made under that section; and

(c) Schedule 2 to that Act.

Disqualification as destination for pension credit

91.–(1) If a pension credit derives from a pension arrangement which is approved for the purposes of Part XIV of the Income and Corporation Taxes Act 1988, an arrangement is disqualified as a destination for the credit unless-

(a) it is also approved for those purposes; or

(b) it satisfies such requirements as the Secretary of State may prescribe by regulations made under paragraph 7(1)(b) of Schedule 5 to the 1999 Act (disqualification as destination for pension credit)(60).

(2) If the rights by reference to which the amount of a pension credit is determined are or include contracted-out rights, an arrangement is disqualified as a destination for the credit unless-

(a) it is of a description prescribed by the Secretary of State by regulations made under paragraph 7(2)(a) of Schedule 5 to the 1999 Act(61); and

(b) it satisfies such requirements as the Secretary of State may so prescribe under paragraph 7(2)(b) of Schedule 5 of the 1999 Act(62).

(3) An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Secretary of State under paragraph 7(3) of Schedule 5 to the 1999 Act(63), equals the credit.

(4) An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Secretary of State may prescribe by regulations made under paragraph 7(4) of Schedule 5 to the 1999 Act(64).

(5) The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of HM Revenue and Customs.

(6) In paragraph (2)-

"contracted-out rights" means such rights under, or derived from-

as the Secretary of State may prescribe by regulations made under paragraph 7(6)(b) of Schedule 5 to the 1999 Act(65).

Adjustment to the amount of the pension credit - payments made without knowledge of the pension debit

92. If-

(a) a person´s shareable rights under the Scheme have become subject to a pension debit;

(b) the administering authority makes a payment which is referable to those rights without knowing of the pension debit; and

(c) the cash equivalent of the member´s shareable rights after deduction of the payment is less than the amount of the pension debit,

the pension credit shall be reduced to that lesser amount(66).

"Implementation period" for discharge of pension credit

93.–(1) The administering authority shall discharge its liability in respect of a pension credit within "the implementation period"(67), which for a pension credit is the period of 4 months beginning with the later of-

(a) the day on which the relevant pension sharing order takes effect; and

(b) the first day on which the administering authority in relation to the relevant pension sharing order is in receipt of-

(i) the relevant documents; and

(ii) such information relating to the transferor and transferee as the Secretary of State may prescribe by regulations made under section 34(1)(b)(ii) of the 1999 Act(68).

(2) The reference in paragraph (1)(b)(i) to the relevant documents is to copies of-

(a) the relevant pension sharing order; and

(b) the order, decree or declarator responsible for the divorce, dissolution or annulment to which it relates,

and, if the pension credit depends on provision falling within sub-section (1)(f) of section 28 of the 1999 Act, to documentary evidence that the agreement containing the provision is one to which sub-section (3)(a) of that section applies.

(3) Paragraph (1) is subject to any provision made by regulations under section 41(2)(a) of the 1999 Act(69).

(4) The provisions of this regulation are subject to any provisions or requirements which the Secretary of State may make by regulations under sections 34(4)(a) and (c) of the 1999 Act which-

(a) make provision requiring a person subject to liability in respect of a pension credit to notify the transferor and transferee of the day on which the implementation period for the credit begins;

(b) provide for that section to have effect with modifications where the pension credit depends on a pension sharing order and the order is the subject of an application for leave to appeal out of time(70).

Failure to discharge liability in respect of pension credit within the implementation period and death of ex-spouse within period

94.–(1) Where the administering authority has not done what is required to discharge its liability in respect of a pension credit before the end of the implementation period for the credit-

(a) the administering authority shall, except in such cases as the Secretary of State may prescribe by regulations under section 33(2)(a) of the 1999 Act(71), notify the Regulatory Authority of that fact within such period as the Secretary of State may so prescribe; and

(b) section 10 of the Pensions Act 1995 (power of the Regulatory Authority to impose civil penalties)(72) shall apply to any administering authority which has failed to take all such steps as are reasonable to ensure that liability in respect of the credit was discharged before the end of the implementation period for it.

(2) If the administering authority fails to perform the obligation imposed by paragraph (1)(a), section 10 of the 1995 Act shall apply.

(3) Where the administering authority is subject to liability in respect of a pension credit, the Regulatory Authority may on the application of the administering authority extend the implementation period for the credit for the purposes of this section if it is satisfied that the application is made in such circumstances as the Secretary of State may prescribe by regulations made under section 33(4) of the 1999 Act(73).

(4) In this regulation "the Regulatory Authority" means the Occupational Pensions Regulatory Authority.

(5) Where an ex-spouse or ex civil partner dies before the administering authority has discharged its liability in respect of the pension credit, that liability may be discharged by the appropriate authority by the payment of a lump sum, to a person other than the person entitled to the pension credit.

(6) The lump sum shall be equal to 3 times the annual rate of the pension which would have been paid to the ex-spouse or ex civil partner if on the date of the death the ex-spouse or ex civil partner had become entitled to a pension as a pension credit member, calculated in accordance with guidance issued by the scheme actuary.

(7) The appropriate administering authority shall pay the lump sum to the deceased´s personal representatives.

CHAPTER IV APPROPRIATE RIGHTS/PENSION CREDIT BENEFITS

"Appropriate Rights"/"Pension credit benefits" under the Scheme

95.–(1) Except as referred to in this regulation or otherwise in this Part of the Scheme, the appropriate rights under the Scheme to which a pension credit member shall be entitled shall consist only of a pension, a retirement grant and rights in relation to a death grant as provided under the Scheme.

(2) Pension credit benefits are subject to the same indexing as other benefits payable under the Scheme.

(3) The amount of the retirement grant to which a pension credit member shall be entitled shall be calculated on the same basis as if the pension credit member´s pension were a deferred pension under the Scheme, except that no retirement grant shall be paid to the pension credit member if the corresponding pension debit member has already received a retirement grant from the Scheme before the date of the implementation of the pension sharing order.

(4) Regulations 23 (death grants: active members), 32 (death grants: deferred members) or 35 (death grants: pensioner members) of the Benefits Regulations shall apply in relation to a pension credit member.

(5) A pension credit member is entitled to his or her pension credit benefits on reaching his or her normal benefit age.

(6) The pension credit benefits are payable immediately on reaching normal retirement age and may not be deferred.

Additional Voluntary Contributions ("AVCs")

96. Where a pension debit member has an accumulated value of AVCs, the amount of the cash equivalent in respect of the corresponding pension credit, which is attributable to the accumulated value of the pension debit member´s AVCs, shall not be allocated to the pension credit benefits described in regulation 95(1) ("appropriate rights") but, at the election of the pension credit member, must be used in one of the permissible ways specified in regulation 23(3) (use of accumulated value of AVCs and SAVCs).

Additional contributions and additional periods

97.–(1) Subject to paragraph (2) an active member, whose benefits have been made subject to a pension sharing order, shall not be allowed to replace any rights debited to the member as a consequence of the pension sharing order with any rights which the member would not have been able to acquire (in addition to the debited rights) had the pension sharing order not been made(74).

(2) The provisions of paragraph (1) shall be relaxed if in line with any taxation exception or concession, which the Inland Revenue may stipulate in relation to "moderate earners" in accordance with the limits imposed in Schedule 10 to the Finance Act 1999 and any modifications thereto made by the Inland Revenue from time to time under paragraph 18(10) and (11) of that Schedule(75), or otherwise.

Commutation: small pensions

98.–(1) Regulation 39 of the Benefits Regulations (commutation: small pensions) shall apply, if as a result of a pension sharing order the annual rate of the retirement pension which a member who has attained state pensionable age is entitled to be paid falls below the sum mentioned in that regulation.

(2) Regulation 39 of those Regulations shall apply in respect of the retirement pension payable to a pension credit member in respect of a pension credit and the amount of that pension shall for the purpose of this regulation be aggregated with any other pension payable to that member under the Scheme.

Commutation: exceptional ill-health

99.–(1) The whole of the pension element payable in respect of a pension credit benefit may be commuted for a lump sum before normal benefit age in circumstances where the person entitled to the pension credit benefit is suffering from serious ill-health prior to the normal benefit age.

(2) In this regulation, "serious ill-health" means ill-health which is such as to give rise to a life expectancy of less than one year from the date on which the commutation of the pension credit benefit is applied for.

(3) The lump sum shall be equal to five times the annual rate of the pension to which the pension credit member would have been entitled if on the date of commutation he had already reached the normal benefit age.

Pension Transfers

100.–(1) The Scheme shall not accept any transfer into the Scheme in respect of any pension credit rights or pension credit benefits under any other pension scheme.

(2) No transfer of pension credit rights may be made from a pension credit member´s appropriate fund to another fund of the Scheme notwithstanding that that fund may be an appropriate fund for that member in respect of other rights he may have accrued under the Scheme.

CHAPTER V MISCELLANEOUS

Charges in respect of pension sharing costs

101.–(1) The administering authority may recover from the parties involved in pension sharing charges as set out in paragraph (2).

(2) The charges referred to in paragraph (1) are any costs reasonably incurred by the administering authority in connection with pension sharing activity other than those costs specified in paragraph (3).

(3) The costs specified in this paragraph are any costs which are not directly related to the costs which arise in relation to an individual case.

(4) The administering authority shall, before a pension sharing order is made, inform the member or the member´s spouse or civil partner, as the case may be, in writing of its intention to recover costs incurred with any description of pension sharing activity and provide the member or the member´s spouse or civil partner, as the case may be, with a written schedule of charges in accordance with regulations which may be made by the Secretary of State under section 41(1) of the 1999 Act(76).

Excluded membership

102.–(1) Pension credit rights or pension credit benefits may not be aggregated with any other rights or benefits under the Scheme (including those attributable to a different pension credit).

(2) Where a pension credit member is also an active member, the member may not count any period which may count for any purpose in connection with the member´s pension credit benefit towards any membership period required under the Scheme.

Appropriate fund and appropriate administering authority

103. For a pension credit member-

(a) the appropriate fund is the fund which is the appropriate fund for the transferor on the transfer date; and

(b) the appropriate administering authority is the administering authority of the fund.

Assignment

104. Except as may be required by law, or is necessary in law to give effect to a pension sharing order or is otherwise permitted for the purpose of this Part of the Scheme, pension credit benefits under the Scheme may not be assigned, charged or otherwise made subject to a security.

Regulation 2

SCHEDULE 1 INTERPRETATION

"the 1993 Act" means the Pension Schemes Act 1993(77);

"the 1995 Act" means the Pensions Act 1995(78);

"the 1999 Act" means the Welfare Reform and Pensions Act 1999(79);

"the 1987 Regulations" means the Local Government Superannuation (Scotland) Regulations 1987(80);

"the 1998 Regulations" means the Local Government Pension Scheme (Scotland) Regulations 1998(81);

"the Benefits Regulations" means the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008(82);

"the Earlier Regulations" means all or any of the Local Government Superannuation (Administration) (Scotland) Regulations 1938(83), the Local Government Superannuation (Administration) (No. 2) (Scotland) Regulations 1938(84), the Local Government Superannuation (Administration) (Scotland) Regulations 1954(85), Local Government Superannuation (Scotland) Regulations 1974(86), the 1987 Regulations or the 1998 Regulations as appropriate;

"the former regulations" means-

"the Transitional Regulations" means the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 2008(90);

"active member" has the same meaning as in section 124(1) of the Pensions Act 1995(91);

"actuary" means a Fellow of the Faculty or Institute of Actuaries;

"administering authority" means a body required to maintain a pension fund under these Regulations and "appropriate administering authority" means the body maintaining the appropriate fund;

"admission agreement", in relation to an admission body, means an agreement that all, or any designated class, of the body´s employees may be members;

"admission body" means a body mentioned in regulation 4(2) (community admission bodies) or 5(2) (transferee admission bodies);

"appropriate fund", in relation to a member, has the meaning given in regulation 28 (appropriate funds) and, in relation to a pension credit member, means the fund which is the appropriate fund for the transferor on the transfer date;

"appropriate policy" means a policy of insurance or annuity contract which provides an annuity which satisfies requirements prescribed under section 95(2)(c) of the Pension Schemes Act 1993(92);

"appropriate scheme", for the purposes of Part 10, is construed in accordance with section 9(5) of the 1993 Act;

"ARCs" means additional regular contributions as referred to in regulation 20 (payment of additional regular contributions);

"AVCs" means additional voluntary contributions as referred to in regulation 22 (additional voluntary contributions and shared cost additional voluntary contributions);

"base rate" means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

"CIPFA" means the Chartered Institute of Public Finance and Accountancy;

"contracted out rights" has the meaning given in regulation 91(6);

"the commencement date" means 1st April 2009;

"deferred member" has the same meaning as in section 124(1) of the Pensions Act 1995(93), except as provided in regulation 13 (re-employed and rejoining deferred members);

"employing authority" means a body employing an employee who is eligible to be a member;

"ex civil partner" means a former civil partner to whom pension credit rights under the Scheme have been or are to be allocated following a pension sharing order;

"ex spouse" means a former spouse to whom pension credit rights under the Scheme have been or are to be allocated following a pension sharing order;

"guaranteed minimum" means the guaranteed minimum as defined in sections 14 and 17 of the 1993 Act (minimum pensions for earners, widows, widowers and surviving civil partners(94), so far as it is attributable to earnings factors for the tax year 1988 89 or for subsequent tax years, increased in accordance with the requirements of section 109 of that Act (annual increase of guaranteed minimum pensions) and in this definition "earnings factors" means the earnings factors referred to in section 14 of that Act and "tax year" means the 12 months beginning with 6th April in any year;

"indexing" means indexing in accordance with the Government Index of Retail Prices;

"local Act scheme" has the meaning given in section 8 of the Superannuation Act 1972, except that where it refers to any time before 25th March 1972 it has the same meaning as in the Local Government Superannuation Act of 1937(95);

"local authority" means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994(96);

"local government area" must be construed in accordance with section 1 of the Local Government etc. (Scotland) Act 1994;

"local government employment" means employment by virtue of which the person employed is or has been a member;

"member" has the same meaning as in section 124(1) of the 1995 Act but, except in regulation 62 (annual benefit statements) and in Part 10 (pension sharing), does not include a pension credit member;

"normal benefit age", for the purposes of Part 10, means 65;

"normal retirement age" is 65;

"occupational pension scheme" has the meaning given by section 150(5) of the Finance Act 2004(97);

"overseas arrangement" has the meaning given in regulation 90(1) (qualifying arrangements);

"part-time employee" has the meaning given in regulation 2 (interpretation) of the Benefits Regulations;

"pension credit" means a credit under section 29(1)(b) of the 1999 Act or corresponding Northern Ireland legislation;

"pension credit benefits" means benefits payable under the Scheme to or in respect of a pension credit member by virtue of rights under the Scheme attributable to a pension credit;

"pension credit member" means a person who has pension credit rights or benefits under the Scheme;

"pension credit rights" means rights to future benefits under the Scheme which are attributable to a pension credit;

"pension debit" has the meaning given in section 29(1)(a) of the 1999 Act;

"pension debit member" means a member, whether an active member, a deferred member or a pensioner member, whose shareable rights under the Scheme are subject to a pension debit;

"pension sharing order" means any order or provision which is mentioned in section 28(1) of the 1999 Act or Article 25(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999;

"pensionable pay" has the meaning given in regulation 5 (pensionable pay) of the Benefits Regulations;

"pensionable service", for the purposes of Part 10, has the meaning given by section 124(1) of the Pensions Act 1995;

"pensioner member" has the same meaning as in section 124(1) of the 1995 Act;

"person responsible for a pension arrangement", for the purposes of Part 10, has the meaning given by section 46(2) of the 1999 Act;

"personal pension scheme", for the purposes of Part 10, has the meaning given by section 1 of the 1993 Act;

"preserved benefits" means benefits to which a person-

and which have not become payable and which have not had an election made in respect of them under regulation 13 (re employed and rejoining deferred members);

"prospective member" means a person who under his or her contract of service or these Regulations-

"Reference banks" means the seven largest persons for the time being who-

and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006(98)), as shown in the audited end of year accounts last published before that time;

"registered scheme" means a pension scheme registered by the Commissioners for Her Majesty´s Revenue and Customs under Part 4 of the Finance Act 2004;

"SCAVCs" means shared cost additional voluntary contributions as referred to in regulation 22 (additional voluntary contributions);

"the Scheme" means the occupational pension scheme constituted by these Regulations, the Benefits Regulations and the Transitional Regulations;

"scheme actuary" means the actuary appointed from time to time by the Scottish Ministers to provide a consulting service on actuarial matters relevant to these Regulations;

"Scheme employer" means a body listed in Schedule 2 (but see regulation 6(6));

"Scheme function" means any function under the Regulations which constitute the Scheme;

"shareable rights", for the purposes of Part 10, has the meaning given by section 27(2) of the 1999 Act;

"teachers' scheme" means an occupational pension scheme made under section 9 of the Superannuation Act 1972 (superannuation of teachers);

"transfer day", for the purposes of Part 10, has the meaning given in regulation 87(4);

"transferee", for the purposes of Part 10, has the meaning given by section 29(8) of the 1999 Act;

"transferor", for the purposes of Part 10, has the meaning given by section 29(8) of the 1999 Act;

"trustees or managers", for the purposes of Part 10, has the meaning given by section 46(1) of the 1999 Act;

"total membership" means the aggregate of periods of membership which count as such under regulation 7 (periods of membership) of the Benefits Regulations; and

"variable time employee" and "whole time employee" have the meanings given in regulation 2 (interpretation) of the Benefits Regulations.

Regulation 3(2)

SCHEDULE 2 SCHEME EMPLOYERS

A local authority.

A joint board or joint committee appointed under any enactment, order or scheme, all the constituent authorities of which are local authorities.

The body known as Scottish Water established under section 20 of the Water Industry (Scotland) Act 2002(99).

The Scottish Children´s Reporter established under section 128 of the Local Government etc (Scotland) Act 1994.

The Scottish Environment Protection Agency established under section 20 of the Environment Act 1995(100).

A board of management of a college of further education established in terms of Part 1 of the Further and Higher Education (Scotland) Act 1992(101).

A board of management of a self governing school constituted and incorporated under section 19(2) of the Self governing Schools etc. (Scotland) Act 1989(102).

The Strathclyde Passenger Transport Authority established under section 40(1) of the Local Government etc (Scotland) Act 1994.

The Strathclyde Passenger Transport Executive established under section 9(1) of the Transport Act 1968(103) or any subsidiary thereof.

Visit Scotland, established under section 1(1) of the Development of Tourism Act 1969(104).

A Transport Partnership created by virtue of an order under section 1 of the Transport (Scotland) Act 2005(105).

The Scottish Police Services Authority established under section 1(1) of the Police, Public Order and Criminal Justice (Scotland) Act 2006(106).

Regulation 5(7)

SCHEDULE 3 MATTERS TO BE INCLUDED IN ADMISSION AGREEMENTS WITH TRANSFEREE ADMISSION BODIES

1. A requirement for the transferee admission body to pay to the administering authority all contributions and payments due under these Regulations and the Benefits Regulations.

2. If required by regulation 5(5), a reference to the indemnity or bond in accordance with regulation 5(6) and a warranty from the transferee admission body that such an indemnity or bond is in place.

3. A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in these Regulations, the Benefits Regulations, the Transitional Regulations and in any employer´s guide published by the administering authority and provided to that body.

4. An undertaking from the transferee admission body to the administering authority that it will not do anything to prejudice the status of the Scheme as a registered scheme.

5. A representation and warranty from the transferee admission body to the administering authority that all the body´s employees who are members are employed in connection with the provision of a service or assets mentioned in regulation 5(2).

6. An undertaking from the transferee admission body that it will promptly notify the administering authority in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy or in the interest of efficiency.

7. A requirement that the transferee admission body notifies the administering authority of each occasion on which it exercises a discretion under these Regulations, the Benefits Regulations or the Transitional Regulations and the manner in which it exercises that discretion.

8. A requirement that the transferee admission body-

(a) notifies the administering authority of any matter which may affect, or is likely to affect, its participation in the Scheme; and

(b) gives immediate notice to that authority of any actual or proposed change in its status which may give rise to a termination,

and, for these purposes, a termination includes a take over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of the body´s business or constitution.

9. A provision-

(a) for automatic termination of the admission agreement, as required by regulation 6(2), if the transferee admission body ceases to be such a body; and

(b) otherwise for a minimum period of three month´s notice to terminate the agreement.

10. A right for the administering authority to terminate the agreement in the event of-

(a) the insolvency, winding up or liquidation of the transferee admission body;

(b) a breach by that body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time);

(c) the withdrawal of approval by the Inland Revenue to the participation of that body as a Scheme employer; or

(d) a failure by that body to pay any sums due to the fund within a reasonable period after receipt of a notice from the administering authority requiring it to do so.

11. A requirement that the admission agreement in its final form must be available for public inspection at the appropriate offices of the administering authority.

12. In relation to a transferee admission body under regulation 5(2)(a)-

(a) a reference to the date of the contract, other arrangement or direction by which the body met the requirements of that regulation;

(b) a provision whereby the Scheme employer may set off against any payments due to the body an amount equal to any overdue employer and employee contributions and other payments (including interest payable under these Regulations) due from the body as an employing authority;

(c) a provision requiring the Scheme employer to keep under assessment the level of risk arising as a result of the matters mentioned in regulation 5(5);

(d) provision that where a representation or notification must be given to an administering authority under paragraph 5, 6, 7 or 8, it must also be given to the Scheme employer; and

(e) where the Scheme employer is not also the administering authority, a requirement that the admission agreement in its final form must be available for public inspection at the appropriate offices of that employer.

Regulation 28

SCHEDULE 4 APPROPRIATE FUNDS

Part I

1. The appropriate fund for a member is the fund specified in column 2 of the following Table for a member of such member´s description.

2. But where a member is within paragraph 5 of that Table, the Scottish Ministers may by direction substitute another fund ("the substituted fund").

3. Before giving a direction under paragraph 2 Scottish Ministers must consult with any bodies appearing to them to be affected by the proposed direction.

4. The direction may require the making of financial adjustments between the funds, whether by way of a payment to the substituted fund or of a transfer of assets or both.

5. It may also contain provision as to the transfer of liabilities to the substituted fund and any other consequential and incidental matters.

6. Where an administering authority have established an admission agreement fund under regulation 29 (admission agreement funds)-

(a) references in this Schedule and in regulation 28 (appropriate funds) to the fund are to the fund maintained by that authority under regulation 26 (pension funds); and

(b) in relation to a member employed by a body specified in the notice required by regulation 29(3), the appropriate fund is the admission agreement fund.

Part II - Miscellaneous Authorities

Regulation 71

SCHEDULE 5 COUNCILLOR MEMBERS

BENEFITS

Preliminary

1. Omit regulation 43 (permanent reductions in pay).

Retirement benefits

2.–(1) Regulation 13(1) (re employed and rejoining deferred members) shall only apply to a councillor member in respect of any councillor membership where both the former membership and the membership as an active member referred to in that paragraph are councillor membership in the same appropriate fund.

(2) Omit regulation 13(8)(c).

3. Omit regulation 14 (concurrent employments).

OPTIONAL ADDITIONAL BENEFITS

Additional Voluntary Contributions

4. In regulation 23(1)(a)(ii) (use of accumulated value of AVCs and SAVCs) delete "19 (early leavers: business efficiency and redundancy),".

Shared Cost Schemes

5. In regulation 22 (additional voluntary contributions) omit-

(a) paragraph (3); and

(b) the words "or SCAVCS" where they occur.

ADMINISTRATION

Members' contributions

6. Omit regulation 21 (discontinuance of ARCs).

7. Omit paragraph (4) of regulation 41 (rights to return of contributions).

Transfers

8. Omit regulations 76, 77 and 81 (bulk transfer arrangements and payments between funds and authorities).

Explanatory Note

(This note is not part of the Regulations)

These Regulations set out provisions relating to the administration of the new Local Government Pension Scheme ("the Scheme") which is to come into existence on 1st April 2009 and is constituted by these Regulations, the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008 ("the Benefit Regulations") and the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 2008.

The provisions in these Regulations supersede without modification most of those in the Local Government Pension Scheme (Scotland) Regulations 1998 (as amended) that they replace. Reference is made where relevant to nominated cohabiting partners as they are a category of dependent beneficiary in the Benefits Regulations. The other main changes are mentioned in the following description of the arrangement of these Regulations.

The Regulations are divided into the following Parts-

• Part 1 deals with citation, commencement and interpretation;

• Part 2 sets out rules relating to membership of the Scheme. Regulation 10 (joining the Scheme) does not require any person who is eligible to be a member of the Scheme to apply to be such, unless he is applying for membership on a date other than that on which he would otherwise automatically become a member or he is the employee of an admission body;

• Part 3 deals with contributions. Regulation 20 (additional regular contributions) sets out the applicable procedure in circumstances where a member chooses to pay additional contributions under Regulation 13 of the Benefits Regulations. Regulations 22-24 simplify and update provisions dealing with additional voluntary contributions and shared cost additional voluntary contributions;

• Part 4 deals with pension funds and employers' payments. Regulation 39 (interest) provides that interest payable on overdue amounts is payable from the day after the amount is due rather than from one month after the due date as before in some cases, the only exception being any extra charge payable by an employing authority under regulation 36 (employers' payment following resolution to increase membership or award additional pension) or regulation 37 (employers' further payments);

• Part 5 deals with payment of benefits;

• Part 6 deals with determination of questions and disputes. Regulation 51 (first instance decisions) requires the employing authority to decide what contribution rate a member must pay. This is consequential on regulation 4 of the Benefits Regulations, which provide that the contribution rate a member pays is based on the member´s pensionable pay and a range of pay bands;

• Part 7 deals with policy statements and information;

• Part 8 deals with special adjustments;

• Part 9 deals with transfers. Regulation 82 (changes of fund and variable time employees) sets out the provisions which apply where a variable time employee transfers from one pension fund to another.

• Part 10 deals with pension sharing.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of businesses, charities or voluntary bodies and does not have a significant financial impact on any public bodies