Scottish Ministers are required to issue actuarial guidance under the 2014 LGPS Scotland Regulations for the new Local Government Pension Scheme (Scotland) 2015. This includes guidance for the following: Additional Pension, AVCs Conversion to Additional Pension, Early retirement Factors, Flexible Retirement, Individual Transfers, Interfund Transfers, Late Retirement, Lifetime Allowance - Maximum Benefits, Pension Credits, Pension Debits, Trivial Commutation, Scheme Pays & Cash Commutation.
2018
The Government Actuaries Department (GAD) has revised the LGPS Scotland Pension Scheme's CETV factors following HMT's published change to the discount rate used for calculating CETVs. The impact of the change in the discount rate is to increase all CETV factors.
The attached workbook contains the revised factors which are based on a SCAPE discount rate of 2.4% net of benefit increases. The workbook provides replacement CETV and Pensioner Cash Equivalent factors for those currently included in our guidance notes.
The table in the workbook (and how they correspond to the factors table in the guidance documents) are explained in the 'Factors List' tab of the spreadsheet.
2017
Use of accummulated AVCs to provide additional pension under the Scheme
Actuarial Factors for Individual Cash Equivalent and Club Transfers from 16 March 2016. Addendum: Non-Club transfers-in after NPA
Late Retirement Please note that this guidance is effective for late retirements taking place on or after 24 June 2017. Please see Circular 2017/1 for further information.
2016
Purchase of Additional Survivor Benefits
Trivial Commutation - Addendum
Auto-enrolment Briefing Note (Feb 2016)
2015
The LGPS Scotland Listing of Extant Guidance, issued 2 April 2015, documents the guidance in force from 1 April 2015. Any guidance documents issued prior to 2015 but still in force may be found on the Timeline Regulations website, under GAD guidance for Post 31 March 2009 Scheme.
LGPS Scotland Individual Transfers Factor Suite 26 March 2015.pdf
LGPS Scotland Listing of extant Guidance 2 April 2015.pdf
LGPS Scotland Individual Transfers guidance final 20 May 2015.pdf
LGPS Scotland Additional Pension Guidance final 26 February 2015.pdf
LGPS Scotland Annual Allowance - Scheme Pays pre 1 April 2015 elections final 25 February 2015.pdf
LGPS Scotland AVCs Conversion to Additional Pension Guidance final February 2015.pdf
LGPS Scotland Cash Commutation Guidance final 26 February 2015.pdf
LGPS Scotland Early Retirement Guidance final 26 February 2015.pdf
LGPS Scotland Flexible Retirement Guidance final 26 February 2015.pdf
LGPS Scotland Interfund Transfers guidance final 26 February 2015.pdf
LGPS Scotland Late Retirement Guidance final 26 February 2015.pdf
LGPS Scotland Lifetime Allowance - Maximum Benefits Guidance final 26 February 2015.pdf
LGPS Scotland Pension Credits Guidance Final 26 February 2015.pdf
LGPS Scotland Pension Debits Guidance final 26 February 2015.pdf
LGPS Scotland Trivial Commutation Guidance final 26 February 2015.pdf
LGPS individual transfers - Clarification of the definition of “public service scheme”
One of the protections given to members of the final salary public service pension schemes is to link the pension awarded to the final salary at retirement rather than the date that accrual ceased in the scheme. This protection also applies to members who have left a public service pension scheme and later re-joined the same or another public service scheme provided that the gap in service is no more than five years.
This protection affects the form of benefits awarded if the member transfers pension benefits from a different public service pension scheme.
For the purpose of this protection, “public service scheme” is defined in the legislation. Authorities should check whether a scheme is a public service scheme or not. Not all members of the transfer Club are public service schemes. Some schemes which are public service schemes are:
• Local Government Pension Scheme
• NHS Pension Scheme
• Teachers Pension Scheme
• Civil Service Pension Scheme
• Armed Forces Pension Scheme
• Police Pension Scheme
• Firefighters Pension Scheme
(this applies to all the schemes applying in the different constituent countries of the UK)
Legislative and Actuarial Guidance references
Paragraph 6.5 of the actuarial guidance on individual transfers dated 2 April 2015 applies to members who have not had a continuous break in active membership of more than five years in any public service pension scheme.
The final salary link is legislated for in regulation 9 of the LGPS(S) Transition Regulations; this uses the same definition of “Public Service Pension Scheme” as the Pension Schemes Act 1993. That definition is:
“"public service pension scheme" means an occupational pension scheme established by or under an enactment or the Royal prerogative or a Royal charter, being a scheme-
(a) all the particulars of which are set out in, or in a legislative instrument made under, an enactment, Royal warrant or charter, or
(b) which cannot come into force, or be amended, without the scheme or amendment being approved by a Minister of the Crown or government department or by the Scottish Ministers, and includes any occupational pension scheme established, with the concurrence of the Treasury, by or with the approval of any Minister of the Crown or established by or with the approval of the Scottish Ministers and any occupational pension scheme prescribed by regulations made by the Secretary of State and the Treasury jointly as being a scheme which ought in their opinion to be treated as a public service pension scheme for the purposes of this Act.”
The spreadsheets are to assist administrators and does not override the factors set our in the actuarial guidance documents themselves.
