Explanatory note

These Regulations amend the National Health Service Superannuation Scheme (Scotland) Regulations 1995 (“the Superannuation Scheme Regulations”). They make provision for persons who have been eligible to be pensionable under the Superannuation Scheme Regulations but who have opted to make contributions to a personal pension scheme and have suffered a loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 and make other miscellaneous amendments.

Regulation 3 substitutes a new regulation B1 which provides for part-time, as well as full-time, employees to be included automatically in the National Health Service Superannuation Scheme for Scotland (“the scheme”) on taking up NHS employment. Previously part-time employees had to make an election to be included. However, a person who has opted out of or not elected to join the scheme and who is thus not included in the scheme at the date of coming into force of this regulation (1st September 1997) will not be automatically included at that date but if eligible, may make an election at any time to join or rejoin the scheme.

Regulation 4 inserts a new regulation B6 into Part B of the Superannuation Scheme Regulations which makes special provision in respect of persons electing to rejoin the scheme who have previously opted out of the scheme as the result of a contravention which is actionable under section 62 of the Financial Services Act 1986 (mis-sold personal pensions).

Regulation 5 makes amendments to the Superannuation Scheme Regulations which are consequential upon the insertion of regulation B6. In particular, the permitted maximum is disapplied where a person becoming a member in circumstances where regulation B6 applies was eligible to be a member before 1st June 1989, except where there has been a break in service.

Regulation 6 makes an amendment to regulation M3 of the Superannuation Scheme Regulations which is consequential upon the insertion of regulation N3A. Regulation 7 makes amendments to Part N of the Superannuation Scheme Regulations which are consequential upon the insertion of regulation B6. It also re-inserts a provision which was omitted in error when the Superannuation Scheme Regulations were consolidated which prevents a person who has left and rejoined the scheme from transferring rights into the scheme if he has had a previous opportunity to do so and did not take it.

Regulation 8 inserts a new regulation N3A into the Superannuation Scheme Regulations which makes provision for the calculation of the transfer payment by reference to which an additional period of pensionable service may be credited by the scheme to persons to whom regulation B6 applies.

Regulation 9 amends regulation S2(1) of the Superannuation Scheme Regulations to correct an error made when consolidating the Regulations. It extends the provision for abatement of pensions on re-employment up to age 60 to cover the cases of members who are entitled to normal retirement pension at age 55 and members who are entitled to receive early payment of preserved pension. At present it applies only to cases of early retirement. The amendment will not apply to any person who has retired before the coming into force of these Regulations.

Regulation 10 amends regulation U2 of the Superannuation Scheme by deleting the provision which made decisions of the Secretary of State final. This is consequential on the extension of the jurisdiction of the Pensions Ombudsman to the determination of disputes in relation to the scheme. It has retrospective effect from 1st April 1997, as authorised by section 12(1) of the Superannuation Act 1972.

An assessment of the compliance cost to business of the measures arising from the reinstatement provisions of these Regulations has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Scottish Office Pensions Agency, Policy Branch, Room 506, St Margaret’s House, 151 London Road, Edinburgh EH8 7TG.