Statutory Instruments 1999 No. 1082
The Scotland Act 1998 (Transitory and Transitional Provisions) (Scotland Parliamentary Pension Scheme) Order 1999 - continued

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PART N

REFUNDS

Refund to contributor
     N1.  - (1) Subject to paragraphs (3) and (6), contributions paid by a person and not previously refunded to him shall be refunded to him by the Parliamentary corporation, with interest from the dates on which the contributions were paid respectively, if he requests the Parliamentary corporation to refund the contributions to him and, on the date of that request, the conditions specified in paragraph (2) are fulfilled in relation to him.

    (2) The conditions referred to in paragraph (1) are that-

    (a) the person has ceased to be a participant;

    (b) his aggregate period of reckonable service as a participant is less than two years; and

    (c) he has not become entitled to a pension under the Scheme.

    (3) A person shall not be entitled to a refund of contributions if, in the case of a man, he had ceased to be a participant during or on a date after the end of the tax year in which he attains the age of 65 or, in the case of a woman she had ceased to be a participant during or on a date after the end of the tax year in which she attained the age of 60.

    (4) If, after the refund of contributions to him under this article, the person becomes entitled to pay and pays contributions under article D1, he may-

    (a) if he so desires, and makes the repayment before the end of the period of three months beginning with the date on which he becomes so entitled; or

    (b) after the end of that period, if the Parliamentary corporation so allows,

repay to the Parliamentary corporation the sum so paid to him, with interest from the date on which it was paid to him:

    Provided that in any tax year the amount of the repayment together with-

      (i) the contributions made by him under article D1; and

      (ii) any contributions made by him under article Q1 or R1; and

      (iii) any other additional voluntary contributions,

    shall not exceed the smaller of 15% of his member's salary or his office holder's salary or both and 15% of the permitted maximum; and any sum to be paid to the Parliamentary corporation under this paragraph may, if the Parliamentary corporation so allows, be paid by instalments over such period, not exceeding three years, as the Parliamentary corporation thinks fit.

    (5) Any amount (whether of principal or interest) paid by the participant to the Parliamentary corporation under paragraph (4) shall be treated for the purposes of this article as if it were a contribution paid by him at the time when he makes that payment.

    (6) The Parliamentary corporation shall deduct from the amount of any contributions which may be repaid to a person in accordance with this article the amount certified by the Secretary of State under section 63(1)(d) of the Pension Schemes Act 1993 in respect of that person.

    (7) For the purpose of calculating a person's actual period of reckonable service as a participant, no account shall be taken of any period in respect of which contributions paid by that person have been-

    (a) refunded to him under this article; and

    (b) not subsequently repaid by him to the Parliamentary corporation.

Refund after death
     N2. Where a person has died-

the Parliamentary corporation shall refund to his executors the contributions paid by the participant and not previously refunded to him, with interest from the dates on which the contributions were paid respectively.

Deduction of tax from refunds of contributions
     N3. On making any repayment of contributions (including interest on contributions) under article N1, the Parliamentary corporation shall be entitled to deduct from the repayment any tax to which it may become chargeable under section 598(2) of the Taxes Act 1988 (charge to tax: repayment of employee's contributions).



PART P

TRANSFERS

Transfers to other pension schemes
     P1.  - (1) At the request of any person who has been a participant but who has ceased to be either-

    (a) a member of the Parliament; or

    (b) an office holder,

and who (in either case) has not become entitled to a pension under the Scheme, the Parliamentary corporation shall pay into or for the purposes of any one, or more than one, scheme or annuity to which this article applies, a sum or sums representing the transfer value of that person's accrued pension rights in the Fund (referred to in this article as a "transfer payment").

    (2) This article applies to any scheme or annuity which satisfies the requirements prescribed by regulations made under section 95(2) of the Pension Schemes Act 1993.

    (3) Where a person has required the Parliamentary corporation to make a transfer payment in accordance with paragraph (1), there shall be deducted from that payment-

    (a) the amount of any contributions equivalent premium; or

    (b) an amount sufficient to meet the liability in respect of the person's contracted-out rights.

    (4) The amount mentioned in paragraph (1)(b) may not be deducted where-

    (a) the transfer payment is made to an occupational pension scheme which is contracted-out or an appropriate personal pension scheme; and

    (b) that scheme's trustees or managers undertake to accept liability for his contracted-out rights.

    (5) Where the amount mentioned in paragraph (1)(a) is deducted, if the Parliamentary corporation thinks fit, that amount may be used in preserving the liability mentioned in paragraph (2)(b) in the Fund, otherwise it may be used in paying the contributions equivalent premium.

    (6) A person may require the Parliamentary corporation to make a transfer payment in respect of him at any time before a date-

    (a) not more than one year before the date on which he attains the age of 65; or

    (b) not more than six months after the date on which he ceases to be a participant,

whichever is the later.

Transfers to other pension schemes after opt-out
     P2.  - (1) At the request of any person who-

the Parliamentary corporation shall pay into or for the purpose of any one or more than one scheme or annuity to which this article applies a sum or sums representing the transfer value of that person's accrued pension rights in the Fund.

    (2) This article applies to any fund or scheme specified in regulation P1(2).

    (3) Where a transfer value has been paid under this article in respect of a person who is an opted-out member or an opted-out office holder and that person subsequently ceases to be a member of the Parliament or an office holder, a transfer value may be paid under article P1 in respect of any pension rights accrued to or in respect of him which are preserved in the Scheme.

    (4) Article P1(3) and (4) shall apply for the purposes of this article.

Transfer to overseas pension schemes
     P3.  - (1) At the request of any person who has been a participant but who has ceased to be either-

and who (in either case) has not become entitled to a pension under the Scheme, the Parliamentary corporation shall pay into or for the purposes of any one, or more than one, fund or scheme to which this article applies a sum or sums representing the transfer value of that person's accrued pension rights in the Fund.

    (2) This article applies to any overseas fund or scheme which is approved by the Parliamentary corporation, provided that the Parliamentary corporation shall before giving such approval consult and have regard to the views of the Board of Inland Revenue and the Occupational Pensions Regulatory Authority as to the suitability of the fund or scheme for the purposes of this article.

    (3) At the request of any person-

the Parliamentary corporation may receive a sum, out of, or out of monies held for the purposes of, that fund or scheme, equal to the sum paid under this article together with interest thereon from the date of that payment at such a rate as may be agreed by the Parliamentary corporation.

Effect of transfers out on reckonable service
     P4. Where any sums are paid by the Parliamentary corporation under article P1, P2 or P3 in respect of any person, then-

Certification by the Government Actuary
     P5. For the purposes of articles P1, P2 and P3, any transfer value of the whole or part of a person's accrued pension rights under this Scheme shall be such sum as shall satisfy the requirements prescribed under section 95(2) of the Pension Schemes Act 1993 and shall be certified by, or calculated in accordance with tables prepared by, the Government Actuary.

Transfers from other pension schemes
     P6.  - (1) At the request of any person who-

the Parliamentary corporation shall receive any sums payable by way of transfer value in respect of him out of, or out of moneys held for the purposes of, any scheme or annuity to which article P1 applies, or under any enactment for the time being in force which authorises the transfer of pension rights.

    (2) Where any sums are received by the Parliamentary corporation under paragraph (1) at the request of any person-

    (3) Any period determined by the Parliamentary corporation under paragraph (2)(a) shall be a period or number of years either certified by the Government Actuary as being appropriate in relation to the sums received by the Parliamentary corporation at the request of the person in question or a period or number of years calculated, in accordance with tables prepared by the Government Actuary, as being appropriate in relation to those sums.



PART Q

ADDED YEARS

Purchase of added years by participating members
     Q1. Schedule 5 shall have effect with respect to the purchase of added years by a participating member, and subject to the provisions of that Schedule, his aggregate period of reckonable service as a participating member shall be treated as increased by the period of added years so purchased.



PART R

ADDITIONAL VOLUNTARY CONTRIBUTIONS

Additional voluntary contributions by participants
     R1. Schedule 6 shall have effect for the purposes of the AVC Scheme.



PART S

SPECIAL PENSION PROVISION FOR FIRST MINISTER AND PRESIDING OFFICER

Pension for First Minister and Presiding Officer
     S1.  - (1) Any person who has held the office of First Minister or Presiding Officer shall, on ceasing to hold that office and subject to paragraph (2), be entitled to receive a pension under this article.

    (2) No pension shall be payable under this article to any person so long as he is in receipt of any salary charged or payable out of-

    (a) the Scottish Consolidated Fund other than a salary payable in respect of his membership of the Parliament; or

    (b) the Consolidated Fund or out of monies provided by Parliament other than a salary payable in respect of his membership of the House of Commons.

    (3) The annual amount of a pension payable under this article shall be equal to one half of the salary payable in respect of the office in question at the rate in force on the person's ceasing to hold that office.

Pension for dependants of First Minister or Presiding Officer
     S2. In relation to a person who has held the office of First Minister or Presiding Officer and has died, articles K1 and K2 shall have effect as if-

Pensions met out of Scottish Consolidated Fund
     S3. Any pension payable under article S1 or S2 shall be charged on and paid out of the Scottish Consolidated Fund.



PART T

MISCELLANEOUS AND SUPPLEMENTAL

Non-assignability of benefits
     T1. Any benefit under this Scheme shall not be assignable or chargeable with debts or other liabilities.

Payments due to deceased persons
     T2.  - (1) Where on the death of any person there is due to the deceased or his executors from the Parliamentary corporation a sum which (if any part of it due by way of interest is disregarded) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965[8], confirmation or other proof of the title of the deceased's executors may be dispensed with, and the Parliamentary corporation may pay the whole or any part of that sum to those executors or to the person, or to or among any one or more of any persons, appearing to the Parliamentary corporation to be beneficially entitled to the personal or movable estate of the deceased.

    (2) Any person to whom a payment is made under paragraph (1), and not the Parliamentary corporation, shall thereafter be liable to account for the amount paid to him under that paragraph.

    (3) If the Parliamentary corporation receives notice in writing of any claim against the estate of the deceased at any time before it has made a full payment under paragraph (1), then, except where the sum to be paid appears to it to be bona vacantia, the Parliamentary corporation shall not make any, or (as the case may be) any further, payment under that paragraph to any person other than the executors of the deceased until the claim is satisfied or withdrawn.


Helen Liddell
Minister of State, Scottish Office

St Andrew's House, Edinburgh
29th March 1999



SCHEDULE 1
Article B2


SCOTTISH PARLIAMENTARY CONTRIBUTORY PENSION FUND


Management of Fund
     1. The Parliamentary corporation may appoint such person as it thinks fit to acquire assets for and dispose of assets of the Fund on its behalf and in accordance only with such instructions as to investment policy, as it shall from time to time determine and lay down.

     2. The Parliamentary corporation shall review any acquisition or disposal of the assets of the Fund by such person as may be appointed under paragraph 1 and shall do so within six months of the date of any such acquisition or disposal.

     3. Upon a review pursuant to paragraph 3, the Parliamentary corporation may ratify the acquisition or disposal, or may take such other action in respect of it as it thinks fit.

Accounts and actuarial report
     4. The Parliamentary corporation shall keep proper accounts and shall prepare in respect of each financial year of the Fund statements of account in such form and in such manner as the Comptroller and Auditor-General or, in relation to any financial year beginning on or after 1st April 2000, the Auditor General for Scotland may direct.

     5. The Auditor General for Scotland shall examine and certify every statement of account prepared under paragraph 4 of this Schedule and shall lay a copy of every such statement, together with his report on it, before the Parliament.

     6. The Government Actuary shall prepare an actuarial report on the Scheme, including an actuarial valuation of the assets and liabilities of the Fund, as at 6th May 1999 and thereafter at three-yearly intervals and shall send copies of each report to the Parliamentary corporation.

Expenses
     7. The expenses of managing the Fund, including any fee payable to the Comptroller and Auditor General or to the Auditor General for Scotland, and the remuneration and pensions, or contributions towards the pensions, payable to or in respect of staff employed solely in connection with management of the Fund, shall be met out of the Fund.

     8. Section 21(6) of the Scotland Act 1998 shall not apply to expenses to which paragraph 7 applies.



SCHEDULE 2
Article F5


MAXIMUM PENSIONS


     1. In this Schedule, unless the context otherwise requires-

    "index" at any time, means the index of retail prices published by the Office for National Statistics of the Chancellor of the Exchequer, or any successor agreed as appropriate by the Board of Inland Revenue, for the calendar month three months prior to that time;

    "pensionable service" means actual service as a participant;

    "retained benefits" means benefits for a participant derived from-

    (a) retirement benefits schemes approved or seeking approval under Chapter I of Part XIV of the Taxes Act 1988 or relevant statutory schemes as defined in section 611A of that Act[9], excluding benefits in respect of service;

    (b) funds to which section 608 of the Taxes Act 1988 applies, excluding benefits in respect of service;

    (c) retirement benefit schemes which have been accepted by the Board of Inland Revenue as "corresponding" for the purposes of section 596(2)(b) of the Taxes Act 1988[10], excluding benefits in respect of service;

    (d) retirement annuity contracts or trust schemes approved under section 620 of the Taxes Act 1988, or personal pension schemes (other than arrangements to which only minimum contributions are paid) which related to relevant earnings from the current employment or previous employments (including periods of self employment whether alone or in partnership);

    (e) transfer payments from overseas schemes held in a type of arrangement defined in (a) or (d) above excluding those in respect of service,

including such benefits which have been transferred to another scheme, whether or not in the United Kingdom, but excluding such benefits which relate to service with an unassociated employer which is concurrent with service:

Provided that-

      (i) if the total of the retained benefits is less than a pension of £260 those retained benefits may be disregarded; and

      (ii) if the participant's earnings in the 12 months after entry to the Scheme do not exceed one quarter of the permitted maximum, benefits from those sources, other than those transferred into the Scheme, shall not be classed as retained benefits;

    "service" means service as a member of the Parliament or as an office holder, and includes, where appropriate, any increase in reckonable service attributable to sums received by way of transfer value or to the purchase of added years.

     2. This Schedule sets out the maximum pension payable to a person at the relevant date.

     3.  - (1) On retirement at any time after age 50, except before normal retirement date on grounds of incapacity, a pension of 1/60th of the person's final salary for each year of service (not exceeding 40 years) or, if greater, the lesser of-

    (a) 1/30th of his final salary for each year of service (not exceeding 20 years); and

    (b) 2/3rds of his final salary minus the pension value of all retained benefits.

    (2) On retirement before the normal retirement date on grounds of incapacity an immediate pension in accordance with sub-paragraph (1) above on the basis of the number of years which would have counted as service had the participant remained in service to the normal retirement date.

    (3) On leaving pensionable service before the normal retirement date a deferred pension-

    (a) for participants who remain in service, of that proportion of the amount calculated in accordance with sub-paragraph (2) above that the number (not exceeding 40) of years of service completed before leaving pensionable service bears to the potential number (not exceeding 40) of years of service had the participant remained in service to the normal retirement date;

    (b) for other participants the amount calculated in accordance with sub-paragraph (1) above,

increased by up to 5% for each complete year, or, if greater, in proportion to any increase in the index which has occurred during the period of deferment.

    (4) Benefits are further restricted as necessary to ensure that the participant's total retirement benefit under the Scheme, from any free standing additional voluntary contributions scheme and from any other additional voluntary contributions does not exceed 1/30th of the permitted maximum for each year of service. For the purpose of this limit service is the aggregate of service provided that the total shall not exceed 20 years. The permitted maximum in this context is that for the year of assessment in which the benefits commence to be paid or, if earlier, are transferred out under article P1 or P2. For the purpose of calculating the total retirement benefit the pension equivalent of benefits in any form other than pension is one 1/12th of its cash value.





Notes:

[8] 1965 c.32.back

[9] Section 611A was inserted by the Finance Act 1989 (c.26), Schedule 6, paragraphs 15 and 18(1).back

[10] Section 596(2) was amended by the Finance Act 1989, Schedule 9, paragraphs 8(1), (2)(b) and 18(1).back


 
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