The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008

JurisdictionScotland
CitationSSI 2008/228
Year2008

2008 No. 228

PENSIONS

The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008

Made 4th June 2008

Laid before the Scottish Parliament 6th June 2008

Coming into force 1st April 2009

The Scottish Ministers make the following Regulations in exercise of the powers conferred by section 7 of and Schedule 3 to the Superannuation Act 19721and all other powers enabling them to do so.

In accordance with section 7(5) of that Act, they have consulted such associations of local authorities as appeared to them to be concerned, such local authorities with whom consultation appeared to them to be desirable, and such representatives of other persons likely to be affected by the proposed regulations as appeared to them to be appropriate.

1 PRELIMINARY

PART 1

PRELIMINARY

S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 and come into force on 1st April 2009.

S-2 Interpretation

Interpretation

2.—(1) Schedule 1 (interpretation) contains definitions of expressions used in these Regulations which apply for their interpretation unless the context indicates they have a different meaning.

(2) References to members or membership refer to active members of the Scheme or active membership under the Scheme respectively unless otherwise stated or the context indicates a different meaning.

(3) The definition of “Reference Banks” in Schedule 1 must be read with–

(a)

(a) section 22 of the Financial Services and Markets Act 20002;

(b)

(b) any relevant order under that section; and

(c)

(c) Schedule 2 to that Act.

2 MEMBERSHIP OF SCHEME

PART 2

MEMBERSHIP OF SCHEME

S-3 General eligibility for membership

General eligibility for membership

3.—(1) A person may only be an active member if–

(a)

(a) this regulation, regulation 4 (employees of non-scheme employers: community admission bodies) to 7 (eligibility in certain cases of persons who are not employers); or

(b)

(b) regulation 3(3) (active members) of the Benefits Regulations,

enables the person to be one and the person is not prevented from being one by regulation 9 (further restrictions on eligibility).

(2) A person may be a member if the person is employed by a body which is listed in Schedule 2.

S-4 Employees of non-Scheme employers: community admission bodies

Employees of non-Scheme employers: community admission bodies

4.—(1) Subject to the requirements of this regulation and regulation 6 (admission agreements further provisions), an administering authority may make an admission agreement with any community admission body.

(2) The following are community admission bodies–

(a)

(a) a body, which provides a public service in the United Kingdom otherwise than for the purposes of gain and which either–

(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest (whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise); or

(ii) is approved by the Scottish Ministers for the purposes of admission to the Scheme;

(b)

(b) a body to the funds of which a Scheme employer contributes;

(c)

(c) a body representative of–

(i) local authorities;

(ii) local authorities and officers of local authorities;

(iii) officers of local authorities where it is formed for the purpose of consultation on the common interests of local authorities and the discussion of matters relating to local government; or

(iv) Scheme employers;

(d)

(d) A voluntary organisation engaged in the provision of services under–

(ii) Part III of the National Assistance Act 19484;

(v) Section 14 of the Social Work (Scotland) Act 1968 (which places a duty on local authorities to provide domiciliary services and laundry facilities to certain households)8.

(3) An approval under paragraph (2)(a)(ii) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw an approval at any time if such conditions are not met.

(4) Where, at the date that an admission agreement is made with a body mentioned in paragraph (2)(b), the contributions paid to the body by one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, it must be a term of the admission agreement that the Scheme employer paying contributions (or, if more than one pays contributions, all of them) guarantees the liability of the body to pay all amounts due from it under these Regulations or the Benefit Regulations.

S-5 Employees of non-Scheme employers: transferee admission bodies

Employees of non-Scheme employers: transferee admission bodies

5.—(1) Subject to the requirements of this regulation and regulation 6 (admission agreements further provisions), an administering authority may make an admission agreement with any transferee admission body.

(2) A transferee admission body is a body, other than a community admission body, that is providing or will provide–

(a)

(a) a service or assets in connection with the exercise of a function of a Scheme employer as a result of–

(i) the transfer of the service or assets by means of a contract or other arrangement; or

(ii) guidance provided under section 2 of the Local Government in Scotland Act 20039(requiring a local authority to have regard to guidance provided by the Scottish Ministers on performance of its duties) or a statement of findings under section 3 of that Act (which allows Audit Scotland to take certain actions following a report on a local authority by the Controller of Audit); or

(b)

(b) a public service and which is approved by the Scottish Ministers for the purposes of admission to the Scheme.

(3) In the case of an admission agreement with a transferee admission body referred to in paragraph (2)(a) the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.

(4) An approval under paragraph (2)(b) may be subject to such conditions as the Scottish Ministers think fit and they may withdraw an approval at any time if such conditions are not met.

(5) An admission agreement with a transferee admission body shall require–

(a)

(a) that in the case of a body under–

(i) paragraph (2)(a), the Scheme employer; or

(ii) paragraph (2)(b), the transferee admission body, to the satisfaction of the administering authority,

shall carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee body; and

(b)

(b) that, where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.

(6) The indemnity or bond must be with–

(a)

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 200010to accept deposits or to effect and carry out contracts of general insurance;

(b)

(b) an EEA firm of the kind mentioned in paragraph (5)(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or

(c)

(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.

(7) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 3.

(8) This paragraph applies where a transferee admission body undertakes to meet the relevant requirements of this regulation and–

(a)

(a) in the case of a body under paragraph (2)(a), the Scheme employer undertakes to meet the relevant requirements of this regulation; or

(b)

(b) in the case of a body under paragraph (2)(b), the Scottish Ministers approve the body for admission to the Scheme and the conditions, if any, to which the approval is subject have been met.

(9) Where paragraph (8) applies–

(a)

(a) an administering authority must admit to the Scheme the eligible employees of the transferee admission body specified by the body; and

(b)

(b) where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

(10) Only those employees of the transferee admission body who are employed in connection with the provision of a service or assets mentioned in paragraph (2) are eligible to be designated, under regulation 6(1) (admission agreements – further provisions), members of the Scheme.

S-6 Admission agreements – further provisions

Admission agreements – further provisions

6.—(1) A person employed by a community admission body or an eligible person employed by a transferee admission body may only be a member if the person, or a class of employees to which the person belongs, is designated in the admission agreement by the body as being eligible for membership of the Scheme.

(2) An admission agreement must terminate if the admission body ceases to be such a body and may make such other provision about its termination as the parties consider appropriate.

(3) When an administering authority makes an admission agreement it must promptly inform the Scottish Ministers of–

(a)

(a) the date the agreement takes effect;

(b)

(b) the admission body’s name; and

(c)

(c) in the case of an agreement with a transferee admission body under regulation 5(2)(a) (transferee admission bodies) the name of the relevant Scheme employer.

(4) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions or...

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