86.—(1) If a member is convicted of a relevant offence, the former Scheme employer may apply to the Scottish Ministers who may issue a forfeiture certificate.
(2) A relevant offence is an offence committed in connection with an employment in which the person convicted is a member.
(3) Where a former Scheme employer applies for a forfeiture certificate, it must at the same time send the convicted person and the appropriate administering authority a copy of the application.
(4) Where a forfeiture certificate is issued, the member's former Scheme employer may direct that any of the member's rights (including membership and survivor benefits) under these Regulations are forfeited, and in making the determination the Scheme employer must take into account any recommendations issued by Scottish Ministers when issuing a forfeiture certificate under paragraph (1).
(5) The former Scheme employer must serve a notice of its decision to make a direction on the member.
(6) A forfeiture certificate is a certificate that the offence—
(a)was gravely injurious to the State; or
(b)is liable to lead to a serious loss of confidence in the public service.
(7) If the former Scheme employer incurred loss as a direct consequence of the relevant offence, it may only give a direction under paragraph (4) if—
(a)it is unable to recover its loss under regulation 87 (recovery or retention where former member has misconduct obligation); or
(b)it is unable to recover its loss by any other means,
except after an unreasonable time or at disproportionate cost.
(8) A direction under paragraph (4) may only be given if an application for a forfeiture certificate has been made by the former Scheme employer before the expiry of the period of 3 months beginning with the date of conviction.