Scottish Public Pensions Agency Ill-Health Pension Benefits: FOI release

Information requested

Part A.

I refer you to the attached regulations “The Local Government Pension Scheme (Scotland) Regulations 2018” where Reg 37 (8) states: -

‘For the purposes of this regulation, Regulations 38, 39, and 40, in calculating assumed pensionable pay in accordance with regulation 21 (4) (assumed pensionable pay), no account is to be taken of any reduction in the pensionable pay the member incurred if the member was working reduced contractual hours as a consequence of ill-health or infirmity of mind or body’.

When calculating Ill-health pension benefits due from an employee’s date of leaving (post 2015, following the introduction of the new CARE regulations) and in accordance with both your current Ill- Health ‘Regulations’ (Reg. 37(8) set out in italics above) and your ‘Statutory Ill-Health guidance’ please confirm if you would adjust their hours (please assume that employee in this example reduced their hours due to a medical condition from April 2009 having worked 37 hours previously and continued working reduced hours = 20 hours per week up to their date of leaving on ill-health) for the periods below for the purposes of their ill-health pension calculation. If APP applies, please also confirm if reduction in hours would be ignored for the calculation of APP for the relevant period(s) below: -

1. Service prior to 31/3/15 (Final Salary Benefits)?

2. Service from 1/4/15 – up to employees’ date of leaving (Accrued CARE Benefits)?

3. Enhanced Service awarded through either Tier 1 or Tier 2 ill-health retirement from their date of leaving (Enhancement)?
(Please note that the above points 1 – 3 only require you to confirm if the reduction in hours would be ignored (or not) for the periods above following an employee having reduced their hours due to medical reasons from April 2009 as a post 2015 leaver, retiring on ill-health under the new CARE pension scheme)

Part B

WHere a reduction in hours occurs due to an ill-health condition and subsequent adjustment was made to the ill-health pension benefits at a members date of leaving (Tier 1 or Tier 2) as a result of same, can you provide all the LGPS (Scotland) Ill-Health Regulations and the accompanying Statutory Ill-Health Guidance for each of the appropriate ill-health regimes in force from when this was first introduced in your Regulations?

Response

There are 11 local authorities in Scotland who have administering responsibility for the 11 Scottish Local Government Pension Funds.

The Local Government Pension Scheme in Scotland is a funded pension scheme and the funds are managed by 11 regional fund managers. The funds’ websites can be found through the following link:
www.pensions.gov.scot/local-government/your-local-government-pension-scheme/localgovernment-pension-funds

Some of the information you have requested is available from websites provided below. Under section 25 (1) of FOISA, we do not have to give you information which is already reasonably accessible to you. Whilst the administration of the Pension Funds is a matter for the LGPS funds, the following relates to the questions raised in this Freedom of Information request (in bold below):

Part A:
1. Annualised Pension Payments for Ill Health are calculated according to the Transitional Arrangements in: The Local Government Pension Scheme (Transitional Provisions and Savings) (Scotland) Regulations 2014 (Regulation 12).
2. The relevant Regulations for service on or after 01 April 2015 are found in: The Local Government Pension Scheme (Scotland) Regulations 2018 (Regulation 21 and Regulation 37).
3. As above.

Part B:
The Regulations for the Local Government Pension Scheme (Scotland) can be found at the following link: www.pensions.gov.scot/local-government/scheme-governance-andlegislation/ regulations.

We have not produced Statutory Ill Health Guidance for the Local Government Pension Scheme in Scotland, however there has been various guidance produced which can be found in published SPPA Circulars at: www.pensions.gov.scot/local-government/schemegovernance-
and-legislation/circulars .

I also include a link to the Local Government Association’s website for LGPS(S) Regulations and Guidance: www.scotlgpsregs.org

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