Explanatory note

These Regulations make a number of amendments to the Local Government Pension Scheme (Scotland) constituted by the Local Government Pension Scheme (Scotland) Regulations, as amended (“the principal Regulations”).

The Regulations make a number of amendments to the principal Regulations to address changes in the tax regime consequent on the Finance Act 2004.

Regulations 11, 29 and 30 amend the rules which govern the amount of pension that can be taken as a lump sum, to allow scheme members to choose to take up to 25% of the capital value of their pension as a lump sum.

Regulation 21 amends regulation 43 of the principal Regulations so that a child’s pension can only be paid to the age of 23. Transitional arrangements allow a pension to be paid beyond that age if permitted by the current rules where the child is in receipt of benefits under the principal Regulations on 5th April 2006, or where the number in question was already in receipt of retirement benefits on 5th April 2006, and the child was born on or before 5th April 2007.

Regulation 40 removes the current limitations on contributions and total membership found in Schedule 4 to the principal Regulations.

Other amendments are minor amendments consequential on the new taxation provisions. These include a requirement that all benefits start to be paid by a member’s 75th birthday, and amendments referring to provisions in the Finance Act which allow payments to be made without incurring a charge to tax.