The Local Government Pension Scheme (Scotland) Regulations 2018

Retirement pension accounts : deferred and pension credit members

26.—(1) When a deferred member becomes entitled to immediate payment of a retirement pension—

(a) the deferred member’s pension account must be closed; and

(b) a retirement pension account must be opened.

(2) The retirement pension account must specify—

(a) the amount of accrued pension;

(b) the amount of any additional pension (if any) purchased under regulation 17(6)(b)(i) (additional voluntary contributions);

(c) the early payment reduction or deferred payment enhancement (if any) and the amount of pension to which that reduction or enhancement applies;

(d) the commutation amount (if any);

(e) the amount of any pension adjustment; and

(f) the amount of pension payable from time to time and the date from which it is to be paid.

(3) Subject to paragraph (4), the amount of accrued pension for the purposes of paragraph (2)(a) is the amount specified in that member’s deferred member’s pension account immediately before it was closed.

(4) The amount of accrued pension specified in paragraph (2)(a) must be reduced to take account of the commutation amount.

(5) The amount of any pension adjustment not already accounted for under paragraph (2)(a) is, for the purposes of paragraph (2)(e), the aggregate of the amounts calculated in accordance with actuarial guidance issued by the Scottish Ministers to account for—

(a) any tax to which the administering authority may become chargeable under the Finance Act 2004 in accordance with regulation 82 (tax); or

(b) a pension sharing order.

(6) The balance in the member’s account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the Pensions (Increase) Act 1971 applied.

(7) This regulation applies in relation to pension credit members who become entitled to immediate payment of a retirement pension as it applies to deferred members with the following modifications—

(a) all references to deferred members are to be read as references to pension credit members; and

(b) the reference to accrued pension in paragraph (2)(a) is to be read as a reference to the amount of pension credit in the pension credit member’s account.

(8) If the member ceased to be an active member, became a deferred member and a pensioner member within the same Scheme year, the balance in the member’s retirement pension account at the end of the Scheme year in which the retirement pension account was opened is adjusted at the beginning of the following Scheme year by the revaluation adjustment applicable to the Scheme year in which the retirement pension account was opened, in accordance with guidance issued by the Scottish Ministers.