Office of Public Sector Information

Calculating amounts of transfer value payments

3.F.6—(1) Subject to paragraphs (3) and (5), the amount of the guaranteed cash equivalent transfer value payment is to be calculated in accordance with guidance and tables provided by the scheme actuary to the Scottish Ministers for use at the guarantee date.

(2) In preparing those tables the scheme actuary must use such factors as the scheme actuary considers appropriate, having regard to section 97 of the 1993 Act and regulations made under that Act (whether or not the payment is in respect of a person entitled to a guaranteed cash equivalent transfer value payment under that Act).

(3) Subject to paragraph (5), if the amount calculated in accordance with paragraph (1) is less than the member’s minimum transfer value (if any), the amount of the guaranteed cash equivalent transfer value payment is to be equal to that value instead.

(4) In paragraph (3) “minimum transfer value”, in relation to any person, means the sum of–

(a) any transfer value payments that have been made to the scheme in respect of the person as a result of which the person is entitled to count any pensionable service under the scheme by reference to which the accrued rights subject to the transfer are calculated; and

(b) any contributions paid by the person under Chapter 3.C as a result of which the person is entitled to count such service.

(5) If the transfer value payment is made under the public sector transfer arrangements, the amount of the transfer value payment is calculated–

(a) in accordance with those arrangements rather than paragraphs (1) and (3); and

(b) by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph that are in use on the date used for the calculation.

Effect of transfers-out

3.F.7  If a transfer value payment is made under this Chapter in respect of a person’s rights under the scheme, those rights are extinguished.

Transfers in

Right to apply for acceptance of transfer value payment from another scheme

3.F.8—(1) Subject to the provisions of this Chapter, an active member may apply for a transfer value payment in respect of some or all of the rights that have accrued to or in respect of him or her under any kind of scheme or arrangement to which paragraph (2) applies, other than a FSAVC, to be accepted by the scheme.

(2) This paragraph applies to–

(a) a registered occupational pension scheme;

(b) a registered personal pension scheme;

(c) a registered buy-out policy; and

(d) a corresponding health service scheme.

(3) Paragraph (1) does not apply to rights that are directly attributable to a pension credit.

(4) In this regulation “FSAVC” means–

(a) a scheme which–

(i) immediately before 6th April 2006 was approved by the Commissioners for Her Majesty’s Revenue and Customs by virtue of section 591(2)(h)(144) of the Income and Corporation Taxes Act 1988 (free-standing AVC schemes); and

(ii) became a registered scheme for the purposes of that Act by virtue of Schedule 36 to that Act; and

(b) a scheme established on or after that date as a registered free-standing AVC scheme.

Procedure for applications under regulation 3.F.8

3.F.9—(1) An application under regulation 3.F.8–

(a) must be made in writing;

(b) must specify the scheme or arrangement from which the transfer value payment is to be made and the anticipated amount of the payment;

(c) may only be made during the period of one year beginning with the day on which the applicant becomes eligible to be an active member of the scheme and before the applicant reaches the age of 65;

(d) if the Scottish Ministers so require, may only be made if the member has first requested a statement–

(i) in the case of a transfer made under the public sector transfer arrangements, of the service that the member will be entitled to count as a result of the transfer if the payment is accepted by the Scottish Ministers; and

(ii) in a case where the transfer is not made under those arrangements, of the service that member will be entitled so to count if the payment is so accepted by the Scottish Ministers within such period as is specified in the statement; and

(e) must meet such other conditions as the Scottish Ministers may require.

(2) A statement given to the member in pursuance of a such a request as is mentioned in paragraph (1)(d)–

(a) in the case mentioned in paragraph (1)(d)(i), must inform the member of the effect (if any) of regulation 3.A.11 (restriction on pensionable earnings used for calculating benefits in respect of capped transferred-in service) in the member’s case; and

(b) in the case mentioned in paragraph (1)(d)(ii), must specify such amount as is calculated in accordance with guidance and tables provided by the scheme actuary for the purpose.

Acceptance of transfer value payments

3.F.10—(1) If an application is duly made by a member under regulation 3.F.8, the Scottish Ministers may accept the transfer value payment if such conditions as they may require are met, unless paragraph (4) applies.

(2) If the Scottish Ministers accept the payment–

(a) the member is entitled to count the increase in the member’s pensionable earnings for the purposes of calculating benefits payable to or in respect of the member under the scheme; and

(b) in the case of a member any of whose service falls to be treated as capped transferred-in service, with such period as so falls counting as such service.

(3) In paragraph (2)(a) “the appropriate increase” means the increase calculated in accordance with regulation 3.F.11.

(4) For the meaning of “capped transferred-in service”, see regulation 3.F.12.

(5) The Scottish Ministers may not accept a transfer value payment if–

(a) it would be applied in whole or in part in respect of the member’s or the member’s spouse’s entitlement to a guaranteed minimum pension; and

(b) it is less than the amount required for that purpose, as calculated in accordance with guidance and tables prepared by the scheme actuary for the purposes of this paragraph.

(6) Paragraph (5) does not apply if the transfer would be paid under the public sector transfer arrangements.

Calculation of transferred-in pensionable service

3.F.11—(1) Subject to the following provisions of this regulation, the increase in pensionable earnings that the member is entitled to count under regulation 3.F.10 as the result of a transfer is calculated in accordance with guidance and tables provided by the scheme actuary for the purpose by reference to any relevant factors as at the date on which the transfer payment is received by the Scottish Ministers.

(2) For the purposes of the calculation under paragraph (1) the benefits in respect of the transfer payment will be calculated by increasing the member’s pensionable earnings for the financial year in which the member joined the scheme (or the financial year in which the transfer payment is received if the payment is more than 12 months after the member joined the scheme).

(3) The amount of the increase referred to in paragraph (2) will be calculated by–

(a) treating the member as entitled to a period of officer service equal to the period of employment that qualified the member for the rights in respect of which the transfer payment is being made;

(b) calculating the final year’s pensionable pay that would have given rise to a cash equivalent in respect of officer service under regulation 3.F.6 (calculating amounts of transfer value payments); and

(c) increasing the member’s pensionable earnings by an amount equal to the pensionable pay that the member would have received during that period of officer service if the member’s pensionable pay had been equal to the final year’s pensionable pay mentioned in paragraph (b) throughout that period.

(4) Paragraph (3) does not apply if–

(a) a written statement estimating the increase in pensionable earnings that the member would be entitled to count as result of the transfer was given to the member by the Scottish Ministers during the period of 3 months ending 12 months after the starting day; and

(b) the transfer payment is received by the Scottish Ministers less than 3 months after the date of the statement.

(5) If the transfer value payment is accepted under the public sector transfer arrangements, the increase in pensionable earnings the member is entitled to count is calculated–

(a) in accordance with those arrangements; and

(b) by reference to the guidance and tables provided by the scheme actuary for the purposes of this paragraph, that are in use on the date that is used by the transferring scheme for calculating the transfer value payment.

(6) If the transfer value payment is accepted from a corresponding health service scheme, the increase in pensionable earnings the member is entitled to count is the increase that the member would be entitled to count if–

(a) the member’s employment to which that scheme applied were NHS employment in respect of which the member was a member of the scheme; and

(b) the member’s contributions to that scheme were contributions to the scheme.

(7) In this Part “corresponding health service scheme” means–

(a) a superannuation scheme provided under regulations made under section 10 of the Superannuation Act 1972(145) and having effect in England and Wales;

(b) a superannuation scheme provided under Article 12 of the Superannuation (Northern Ireland) Order 1972(146);

(c) a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald)(147) applies; and

(d) any other occupational pension scheme approved for the purposes of this regulation by the Scottish Ministers.

Meaning of “capped transferred-in service”

3.F.12—(1) This regulation applies if–

(a) the Scottish Ministers accept a transfer value payment in respect of a member under a transfer to which the public sector transfer arrangements apply; and

(b) the service in respect of which the transfer is made was, or included, capped service in employment to which the scheme by which the payment is made (“the transferring scheme”) applied.

(2) For the purposes of this Part, the same proportion of the service that the member is entitled to count under regulation 3.F.10(2)(a) as the capped service bears to the whole of the service in respect of which the transfer is made is capped transferred-in service.

(3) For the purposes of paragraph (1)(b), the service in respect of which the transfer is made was capped service so far as–

(a) in the case of service before 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to the permitted maximum for that year within the meaning of section 590C(2) of the Income and Corporation Taxes Act 1988(148); or

(b) in the case of service on or after 6th April 2006, the member was an active member of the transferring scheme whose pension under that scheme in respect of the service was to be calculated by reference to remuneration limited in each tax year to an amount calculated in the same manner as the permitted maximum under that section was calculated for tax years ending before that date.

(4) For the purposes of paragraph (3), it does not matter whether, apart from the application of the limit, the member’s remuneration in any tax year would have exceeded the amount of the limit.

Public sector transfer arrangements

3.F.13  This Chapter applies in the case of a transfer to which the public sector transfer arrangements apply as it applies in other cases, except to the extent that–

(a) any provision in this Chapter provides otherwise; or

(b) the arrangements themselves make different provision.

Bulk transfers out

3.F.14—(1) This regulation applies if–

(a) the employment of one or more active members (“the transferring employees”) is transferred without their consent to a new employer;

(b) on that transfer the transferring employees cease to be eligible to be active members of the scheme;

(c) after that transfer the transferring employees become active members of another occupational pension scheme (“the new employer’s scheme”);

(d) the Scottish Ministers have agreed special terms for the making of transfer value payments in respect of the transferring employees to the new employer’s scheme, after consultation with the scheme actuary; and

(e) the transferring employees have consented in writing to their rights being transferred in accordance with those terms.

(2) In the case of the transferring members or the transferred members the transfer value payment to be paid–

(a) is not calculated in accordance with regulation 3.F.6; but

(b) is to be such amount as the Scottish Ministers determine to be appropriate in accordance with the special terms after consulting the scheme actuary.

(3) This Chapter has effect with such modifications as are necessary to give effect to those terms.

(4) If the transfer is directly or indirectly attributable to an enactment, this Chapter has effect with such modifications as the Scottish Ministers consider necessary in consequence of the transfer.

(5) Where a member to whom this regulation applies is also a member to whom Part 2 applies, a bulk transfer under this regulation also operates as a transfer of that member’s rights under Part 2.

Bulk transfers in

3.F.15—(1) This regulation applies if–

(a) the employment of one or more persons (“the transferred employees”) is transferred without their consent to a new employer;

(b) on that transfer the transferred employees cease to be active members of an occupational pension scheme (“the former employer’s scheme”);

(c) after that transfer the transferred employees become active members of the scheme;

(d) the Scottish Ministers have agreed special terms for the acceptance of transfer value payments in respect of the transferred employees from the former employer’s scheme, after consulting the scheme actuary; and

(e) the transferred employees have consented in writing to their rights being transferred in accordance with those terms.

(2) The scheme has effect with such modifications as are necessary to give effect to the terms mentioned in paragraph (1)(e).

(3) If the transfer is directly or indirectly attributable to an enactment, the scheme has effect with such modifications as the Scottish Ministers consider necessary in consequence of the transfer.

EU and other overseas transfers

3.F.16—(1) This regulation applies in the case of a member whose transfer is subject to transfer arrangements concluded with any scheme for the provision of retirement benefits established outside the United Kingdom.

(2) The scheme applies in relation to the member with such modifications as the Scottish Ministers consider necessary to comply with–

(a) the terms of those arrangements;

(b) any applicable provision contained in or made under any enactment; and

(c) the requirements to be met by a scheme registered under Chapter 2 of Part 4 of the 2004 Act.

CHAPTER 3.G RE-EMPLOYMENT AND REJOINING THE SCHEME

Preliminary

Application of Chapter 3.G

3.G.1—(1) Subject to paragraphs (4) to (7), this Chapter applies to persons who–

(a) have been active members of the scheme in respect of their service in an employment;

(b) have ceased to be employed in that employment and have become deferred members or pensioner members of the scheme because of their rights in respect of that service;

(c) become employed again in an employment that qualifies them to belong to the scheme; and

(d) become active members of the scheme in respect of their service in that employment.

(2) In these regulations a member to whom this Chapter applies is referred to as a “re employed member”.

(3) In this Chapter, in relation to any re-employed member–

(a) the service referred to in paragraph (1)(a) is referred to as “the earlier service”; and

(b) the service referred to in paragraph (1)(d) is referred to as “the later service”.

(4) This Chapter also applies to members who–

(a) cease to be active members in respect of their service in an employment as the result of exercising the option under regulation 3.B.5 (opting out of the scheme); and

(b) later become active members in that or another employment,

as it applies to members who cease to be employed in the employment in which they are active members, and paragraph (3) must be read accordingly.

(5) This Chapter does not apply if the earlier service and the later service are treated as a single continuous period of pensionable service under regulation 3.A.4(5) (pensionable service: breaks in service).

(6) Regulation 3.G.4 applies whether or not the employment mentioned in paragraph (1)(c) is employment that qualifies the member to belong to the scheme.

(7) If a re-employed member ceases to be an active member again, this Chapter applies again in respect of the later service as if it were the earlier service (and so on).

General rule: separate treatment of service etc. except where unfavourable to member

General rule: separate treatment of service etc.

3.G.2—(1) The general rule is that, in accordance with regulations 3.D.17 (dual capacity membership) and 3.E.25 (dual capacity membership: death benefits)–

(a) the re-employed member’s pensionable service in respect of the earlier service and the later service are treated separately; and

(b) the re-employed member’s pensionable earnings in respect of the earlier service and the later service are determined separately.

(2) This regulation is subject to the provisions mentioned in regulations 3.D.17(4) and 3.E.25(5).

Exception to general rule in 3.G.2

3.G.3—(1) The general rule in regulation 3.G.2 does not apply if–

(a) at the time that the member first becomes entitled to a pension under the scheme in respect of the earlier service or the later service; or

(b) if it is earlier, at the time of the member’s death,

in the opinion of the Scottish Ministers the benefits payable to or in respect of the member would be more valuable if that general rule were disregarded.

(2) Accordingly, in a case within paragraph (1)–

(a) the member’s pensionable service in respect of the earlier service and the later service are treated as one single continuous period;

(b) the member’s qualifying service in respect of the earlier service and the later service are each treated as one single continuous period;

(c) the member is not treated as a deferred member in respect of the earlier service; and

(d) the member’s pensionable earnings in respect of the later period may be determined by reference to the earlier period as well as the later period (as a result of regulation 3.A.4(5)).

Special rules about re-employment of ill health pensioners

Effect of re-employment on upper tier ill health pensions

3.G.4—(1) This regulation applies if a member who is entitled to an upper tier ill health pension under regulation 3.D.7 (early retirement on ill health (active members)) in respect earlier service–

(a) did not opt to exchange that pension for a lump sum in accordance with regulation 3.D.11 (option for members in serious ill health to exchange whole pension for lump sum); and

(b) has re-entered employment (“the further employment”).

(2) Subject to paragraphs (3) and (4), the member ceases to be entitled to the upper tier ill health pension under regulation 3.D.7 and becomes entitled to a lower tier ill health pension under that regulation.

(3) In a case where the further employment is–

(a) not NHS employment; and

(b) an excluded employment,

paragraph (2) does not apply.

(4) In a case where the further employment is–

(a) NHS employment; and

(b) an excluded employment

paragraph (2) does not apply during the initial period.

(5) As regards a further employment in NHS employment–

(a) paragraph (2) applies from the first lower tier ill health pension payment date which falls after the first anniversary of the member’s re-entry into NHS employment, whether or not that day is part of a continuous period of further NHS employment beginning with entry into that employment; and

(b) the member may not rejoin the scheme in respect of that employment or any other NHS employment until after the first anniversary of the member’s re-entry into NHS employment, whether or not that or any other NHS employment is an excluded employment.

(6) For the purposes of this regulation–

(a) an employment is an excluded employment at any time in a scheme year, in relation to a member, if the member’s earnings from the employment and any other employments are such that the lower earnings limit for that year is not exceeded;

(b) for the purposes of paragraph (2) an employment that has been an excluded employment in a scheme year is not treated as ceasing to be such an employment until the first day following the end of the pension pay period for the upper tier ill health pension in which the limit described in sub paragraph (a) is first exceeded; and

(c) “the initial period” means the period of 12 months beginning with the day on which the member first enters an employment which results in this regulation applying.

(7) A member who, before attaining the age of 65, has ceased to be entitled to an upper tier ill health pension under paragraph (2), and who–

(a) is in further NHS employment and ceases to be employed at all during the initial period; or

(b) is in further employment that is not NHS employment and ceases to be employed in that further employment within a period of one year beginning with the day on which that further employment ceased to be an excluded employment,

may apply to the Scottish Ministers under this paragraph to become entitled to an upper tier ill health pension.

(8) An application under paragraph (7)–

(a) where paragraph (7)(a) applies, must–

(i) state that the member has ceased to be employed at all;

(ii) be made within the initial period; and

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 3.D.7(3)(a) (early retirement on ill health (active members)); and

(b) where paragraph (7)(b) applies, must–

(i) state that the member has ceased to be employed at all;

(ii) be made within a period of one year beginning with the day on which that employment ceased to be an excluded employment; and

(iii) be made in writing and be accompanied by evidence from a registered medical practitioner that the member meets the condition in regulation 3.D.8(3)(a) (re assessment to entitlement to an ill health pension determined under regulation 3.D.7).

(9) If on an application under paragraph (7) the Scottish Ministers are satisfied that the member meets the condition in 3.D.7(3)(a), from the day following that on which the member’s last employment ceased–

(a) the member ceases to be entitled to the lower tier ill health pension under regulation 3.D.7; and

(b) becomes entitled to an upper tier ill health pension under that regulation in respect of the earlier service.

(10) A member who falls within paragraph (1) must–

(a) notify the Scottish Ministers if the member is in NHS employment at the end of the initial period;

(b) notify the Scottish Ministers if the member’s aggregate earnings for the purpose of national insurance from employments held in a tax year are such that the lower earnings limit is exceeded; and

(c) provide the Scottish Ministers or any other person specified by the Scottish Ministers with such further information as the Scottish Ministers specify concerning any further employment.

(11) This regulation is subject to regulation 3.G.5 (re-employed lower tier ill health pensioners).

Re-employed lower tier ill health pensioners

3.G.5—(1) This regulation applies to re-employed members who are entitled to a lower tier ill health pension under regulation 3.D.7 (early retirement on ill health: active members) in respect of the earlier service.

(2) For the purposes of determining whether a member can count 45 years of pensionable service for any purpose, the earlier service and the later service are aggregated.

(3) If the re-employed member became entitled to a lower tier ill health pension for the earlier service, and on the termination of the later service the member becomes entitled to–

(a) a lower tier ill health pension; or

(b) an upper tier ill health pension,

under regulation 3.D.7 in respect of the later service, the re-employed member is entitled to the benefits set out in paragraph (4).

(4) The benefits mentioned in paragraph (3) are–

(a) the member’s original lower tier ill health pension in respect of his or her earlier service; and

(b) a lower tier or, as the case may be, upper tier ill health pension in respect of the later service.

CHAPTER 3.H ABATEMENT

Application of Chapter 3.H

3.H.1—(1) This Chapter applies to practitioners.

(2) This Chapter applies if–

(a) a person who is a practitioner member of the scheme is employed in NHS employment; or

(b) the person’s pension is a pension under–

(i) regulation 3.D.7 (early retirement on ill health (active members)); or

(ii) regulation 3.D.9 (early retirement on ill health: deferred members); and

(c) the person has not reached the age of 65.

(3) In this Chapter “NHS employment” includes–

(a) employment with an employer in respect of whom a direction has been made under section 7 of the Superannuation (Miscellaneous Provisions) Act 1967(149);

(b) employment to which regulations made under section 10 of the Superannuation Act 1972 and having effect in England and Wales apply;

(c) employment to which regulations made under Article 12 of the Superannuation (Northern Ireland) Order 1972 apply;

(d) employment to which a scheme made under section 2 of the Superannuation Act 1984 (an Act of Tynwald) applies; and

(e) employment with an employer with whom an agreement has been made under section 235 of the 2006 Act.

(4) In this Chapter, subject to paragraph (4)–

(a) a person to whom this Chapter applies is referred to as an “employed pensioner”;

(b) the pension to which the employed pensioner is entitled is referred to as the “old service pension”;

(c) the employment in respect of which the pension is payable is referred to the “the old employment”; and

(d) the employment in which the employed pensioner is employed is referred to as the “new employment”.

(5) This Chapter applies whether or not the person is an active member of the scheme in the new employment.

(6) For the purposes of this Chapter, so much of any pension as is additional pension is ignored.

Information

3.H.2—(1) A person who becomes an employed pensioner must inform–

(a) the person’s employer in the new employment; and

(b) any other person that the Scottish Ministers may specify,

that the old service pension is payable.

(2) A person who ceases to be an employed pensioner in one new employment and becomes an employed pensioner in another new employment must inform–

(a) the person’s employer in the other new employment; and

(b) any other person that the Scottish Ministers may specify,

that the old service pension is payable.

Reduction of pension

3.H.3—(1) If the condition in paragraph (2) is met, the amount of the old service pension for any scheme year is reduced.

(2) The condition is that the employed pensioner’s relevant income for the scheme year exceeds the employed pensioner’s previous earnings.

(3) The amount of the reduction under paragraph (1) is equal to that excess but cannot exceed the enhancement amount.

(4) For the meaning of “relevant income” and “enhancement amount” see regulation 3.H.4.

(5) For the meaning of “previous earnings” see regulation 3.H.5.

(6) If the employed pensioner holds the new employment for only part of any scheme year, this regulation applies as if–

(a) the reference in paragraph (2) to the employed pensioner’s relevant income were a reference to the appropriate proportion of that income; and

(b) the reference in that paragraph to the employed pensioner’s previous earnings were a reference to the appropriate proportion of those earnings.

(7) In paragraph (6) “the appropriate proportion” means the same proportion as the period during which the new employment is held bears to the whole scheme year.

(8) If the member has a guaranteed minimum under section 14 of the Pension schemes Act 1993 in relation to the old service pension, nothing in this regulation requires the reduction of the old service pension below the amount of the member’s guaranteed minimum in relation to it.

Meaning of “relevant income”

3.H.4—(1) The employed pensioner’s relevant income for a scheme year is the aggregate of–

(a) the amount of pensionable earnings received by the employed pensioner during that year from the new employment (assuming, in any case where the employed pensioner is not an active member of the scheme in the new employment, that the employed pensioner is such a member); and

(b) the enhancement amount in relation to the old service pension.

(2) The enhancement amount, in relation to an old service pension, is the difference between–

(a) the amount of that pension for that year; and

(b) the amount that that pension would have been had it been payable under regulation 3.D.4 (early payment of pension with actuarial reduction).

(3) If the old service pension is payable under regulation 3.D.7 (early retirement on ill health active members) or 3.D.9 ((early retirement on ill health (deferred members)) to an employed pensioner who had not reached the age of 55 at the time when entitlement to the pension arose, for the purposes of paragraph (2)(b)–

(a) the fact that entitlement to a pension under regulation 3.D.4 depends on reaching that age is ignored; but

(b) the employed person’s actual age at the relevant time is taken into account in determining the reduction to be made under regulation 3.D.4(2).

(4) If the old service pension is an upper tier ill health pension, for the purposes of paragraph (2)(b), only the employed pensioner’s actual pensionable service at the time when entitlement to the pension arose is taken into account in determining the amount that would have been payable under regulation 3.D.4.

(5) If the employed pensioner exercised the option under regulation 3.D.10 (general option to exchange part of pension for lump sum) in relation to the old service pension, the resulting reduction in the pension is ignored for the purposes of this regulation.

(6) References in this regulation to the amount of a pension for any scheme year are to its amount for that year after any increases payable under the Pensions (Increase) Act 1971 in respect of that pension, including the increases that would have been payable in respect of any amount not paid because of a reduction ignored under paragraph (5).

Meaning of “previous earnings”: general

3.H.5—(1) For the purposes of this Chapter an employed pensioner’s previous earnings is the average of the annual amounts of the member’s earnings in respect of practitioner service (or service which is treated as practitioner service) uprated to the date of entitlement to the pension in accordance with regulation 3.D.1(4)(b) and adjusted in each scheme year for inflation.

(2) The reference in paragraph (1) to adjusting that amount in each scheme year for inflation is to increasing it by the same amount as that by which an annual pension equal to that amount would have been increased under the Pensions (Increase) Act 1971 at 6th April in that scheme year if–

(a) that pension was eligible to be so increased; and

(b) the beginning date for that pension were the same as the beginning date for the old service pension.

(3) In this regulation “the beginning date”, in relation to a pension, means the date on which it is treated as beginning for the purposes of the Pensions (Increase) Act 1971 (see section 8(2) of that Act).

Employed pensioners with more than one pension

3.H.6—(1) This regulation provides for the application of this Chapter where a person is entitled to more than one old service pension falling within regulation 3.H.1(2)(c) in any scheme year.

(2) In regulation 3.H.3–

(a) for paragraphs (1) to (3) substitute–

“(1) If the condition in paragraph (2) is met, the amount of the old service pensions for any scheme year is reduced.

(2) The condition is that the employed pensioner’s relevant income for the scheme year exceeds the employed pensioner’s previous earnings for all the old employments.

(3) The amount of the reduction under paragraph (1) in the case of each of the pensions is equal to the same proportion of that excess as the amount of the pension for the scheme year before the reduction bears to the sum of the pensions for that year before the reduction.”.

(3) In regulation 3.H.4(1)(b) for “the old service pension” substitute “all the old service pensions”.

(4) Regulation 3.H.7 applies as if references to the old service pension were references to all those pensions.

Provisional reductions and later adjustments

3.H.7—(1) If it appears to the Scottish Ministers that the condition in regulation 3.H.3(2) will be met in any scheme year in respect of the old service pension for that year, the Scottish Ministers may reduce the amount of that pension paid at any time in the scheme year.

(2) Where the old service pension for a scheme year is being reduced under this Chapter, the Scottish Ministers must review the amount of the reduction–

(a) at the end of the scheme year; and

(b) at any time during the scheme year if it appears to the Scottish Ministers that–

(i) the amount of the reduction made for the year is or may become incorrect; or

(ii) no reduction should be made.

(3) If at any time during the scheme year it so appears, the Scottish Ministers must make such adjustments, whether by altering the amount of the reduction or by repaying to the employed pensioner any amount that should not have been deducted from the pension, as appear to the Scottish Ministers to be required.

(4) If at the end of the scheme year it is apparent that–

(a) the reduction in the old service pension for the year was excessive; or

(b) no such reduction should have been made,

the Scottish Ministers must repay the amount due to the employed pensioner.

(5) If at the end of the scheme year it is apparent that the old service pension paid for the year exceeded the amount due because the reduction in the old service pension required under regulation 3.H.3 was not made, the employed pensioner must repay the excess to the Scottish Ministers.

(6) Paragraph (5) does not affect the Scottish Ministers' right to recover a payment or overpayment in any case where the Scottish Ministers consider it appropriate to do so.