Regulation 55 Amendment of regulation R8

Regulation R8 (members whose earnings are reduced) is amended as follows.

For paragraphs (1) and (2) substitute–

“(1)

The Scottish Ministers may agree to pay a preserved pension under regulation E6 in respect of a member’s pensionable service before the member’s earnings are reduced if–

(a)

the member has at least two year’s qualifying service; and

(b)

either of the following is the case–

(i)

within the three month period after the member’s earnings are reduced that member’s employer certifies that the reduction is due to the circumstances described in paragraph (2); or

(ii)

the member satisfies the conditions specified in paragraph (2A).

(2)

The circumstances referred to in paragraph (1)(b)(i) are that the reduction is due to–

(a)

the member being transferred to other employment with an employing authority;

(b)

the member taking up other employment with an employing authority in circumstances approved by the Scottish Ministers; or

(c)

a change in the member’s duties, while continuing in the same employment, otherwise than at the member’s request or as a result of something done by the member.

(2A)

The conditions referred to in paragraph (1)(b)(ii) are that–

(a)

the member has attained–

(i)

normal minimum pension age; or

(ii)

where relevant, protected pension age;

(b)

the member makes an election and the Scottish Ministers have not previously accepted an election made by that member; and

(c)

the member’s employer has certified that–

(i)

the member’s pensionable pay is reduced by at least 10% for a period of at least one year beginning with the first pay day on which the reduced pensionable pay was paid;

(ii)

for a period of at least 12 months ending immediately before the reduction referred to in head (i), the member’s pensionable pay had not been subject to any other reduction; and

(iii)

the reduction to the member’s pensionable pay is the result of a change to that member’s duties so that his new, or remaining, duties are less demanding and carry less responsibility than his previous duties.”.

For paragraph (4), substitute–

“(4)

An election referred to in paragraph (2A) of this regulation must be made–

(a)

in writing and addressed to the Scottish Ministers; and

(b)

within 15 months of the member’s pensionable pay being reduced.”.

In paragraph (5) for “exercising the option in this regulation”, substitute “ the Scottish Ministers agree to pay a preserved pension under regulation E6 in accordance with paragraph (1)”.

In paragraph (6)(b) after “(early retirement pension (ill health))”, insert “or E2A (ill health pension on early retirement)”.

For paragraph (7), substitute–

“(7)

If the member leaves pensionable employment with a pension under regulation E2 or E2A and the member’s pensionable service falls to be increased as described in–

(a)

regulation E2(4) to (6); or

(b)

regulation E2A(4) to (6),

then, if the member’s pensionable service before and after the break is treated separately under paragraph (5), the increase will apply only in respect of benefits attributable to the period after the member’s earnings were reduced.

(7A)

For the purposes of this regulation “pensionable pay” in respect of part-time employment means the amount that the Scottish Ministers determine would have been paid in respect of a single comparable whole-time employment.”.