June 2019 - Important Local Government Pension Scheme (Scotland) Regulations -Changes

The Key Changes

  • Member contributions cannot be made on or after the day prior to a member’s 75th birthday, (i.e. contributions must stop 2 days prior to age 75).
  • Members on authorised leave of absence for a continuous period of less than 31 days (other than through illness or injury) and has reduced pay or nil pay, must pay their member contributions based on the pay they would have received but for the absence.
  • All deferred members who have attained age 55 can elect to have their benefits paid out with immediate effect provided they are no longer in the employment, which gave rise to the benefit. An individual with deferred benefits but now in a different local government employment would be able to access their benefits. Benefits taken prior to the normal scheme pension age will be subject to an early payment reduction.
  • If a member retires on ill health grounds and prior to being retired has suffered a drop in pay from having worked reduced hours due to illness, then in calculating scheme benefits, no account is to be taken of the reduction in pay. This provision is effective from 1 April 2015.
  • One of the conditions for paying a pension to a surviving partner has been relaxed. Previously, at the time of his/her death, a member had to have been legally free to marry/form a civil partnership for a period of at least 2 years. Now, the member only needs to have been free to marry/form a civil partnership at the time of his/her death. Other conditions however continue to apply (e.g. the member and partner must have been living together as a married couple/civil partners for at least 2 years and have been financially interdependent or the partner dependent on the member).

The full list of changes are contained in the Local Government Pension Scheme (Miscellaneous Amendments) (Scotland) Regulations 2019 (S.S.I. 2019/161)

This update is for information purposes only and does not override the statutory terms of the Scheme regulations.