Explanatory note

These Regulations amend the Local Government Superannuation (Scotland) Regulations 1987. They make provision in connection with persons who have been eligible to be pensionable employees under the Local Government Superannuation Scheme but have instead made contributions to a personal pension scheme and have suffered loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986.

Regulation 3 amends regulation B4B(4) of the 1987 Regulations to enable such a person, who is still eligible to be a pensionable employee, to elect to rejoin the Scheme at any time.

Regulations 5 and 6 add respectively new regulation J15 and Schedule 17A providing for the calculation of the amount (“the restitution payment”) which would need to be made to the Scheme in respect of such a person to restore his position to what it would have been if he had been a pensionable employee throughout the period when he made contributions to the personal pension scheme. New regulation J15 also provides that where the administering authority are satisfied that the transfer value paid by the personal pension scheme to the appropriate superannuation fund on the individual becoming a pensionable employee is adequate to so restore his position, the individual is entitled to count as reckonable service the whole of the period during which he contributed to the personal pension scheme. Provision is also made for partial reinstatement, that is for the individual to buy such lesser amount of reckonable service as the administering authority may approve.

Regulation 4 makes an amendment to regulation J9(1)(a) of the 1987 Regulations consequential on insertion of new regulation J15.