Consultation procedures for any proposed changes to the Scottish Local Government pension schemes
Before any changes can be made to any of the Scottish Local Government pension schemes' regulations, Scottish Ministers are required by law to formally consult the people (or their representatives) who are likely to be affected by the changes.
Details of recent consultations and a list of the organisations Scottish Ministers would expect to consult are shown below.
The Local Government Pension Scheme (Scotland)
The purpose of this consultation is to seek the views of stakeholders about possible changes to the local fund valuation cycle. In 2019, the UK Government directed that the LGPS schemes’ statutory valuations should move to a quadrennial (four yearly) cycle, and our consultation asks whether scheme and local valuations should be aligned.
Secondly, we are seeking to assess the impact of changes introduced in 2018 to the provisions in Regulation 61, which provide administering authorities with the option of suspending an employer’s liability to pay an exit payment when managing the process of an employer exiting the scheme.
This consultation will end 9 March 2020.
Local Government Pensions Consultation
7 Tweedside Park
The consultation will run until 5 February 2020.
This technical consultation is regarding draft miscellaneous amendments to the Local Government Pension Scheme (Scotland) Regulations 2018. The amendments were discussed with our advisors who confirmed that, as this was mainly a technical exercise to correct drafting errors and fix references, we would restrict the consultation on this occasion.
This consultation ended on Monday 11 March 2019
In 2008/2009 GMP related overpayments across the public service schemes were identified and Scottish Ministers chose to allow the pension in payment to remain unadjusted for affected pensioners in the Police, Firefighter and Local Government Pension schemes.
Scottish Ministers have decided that a similar approach should be taken for GMP related overpayments that arise from the current GMP reconciliation exercise, which concludes in December 2018. This means that pensions currently in payment will remain unadjusted, going forward, for affected pensioners in the Police, Firefighter and Local Government Pension schemes.
These draft regulations provide for a new scheme award known as an Increased Pension Entitlement (IPE) which reflects the GMP-related overpayment.
This consultation ended on Thursday 11 October 2018
The Scottish Government is grateful for the number of responses made to the consultation on The Local Government Pension Scheme (Scotland) Regulations 2018.
The purpose of this paper is to provide stakeholders with a summary of the feedback received to that consultation. This document also sets out our replies to those comments; describing how the draft regulations have been altered in response, or providing further explanation where required.
The Scottish Public Pensions Agency wishes to thank the organisations and individuals who took the time to read and submit comments on the draft regulations. We regret the delay in providing this response due to staffing issues.
The comments we received have resulted in changes to the way we intend to consult stakeholders in the future and informed The Local Government Pension Scheme (Miscellaneous Amendments) (Scotland) (Draft) Regulations 2019 - currently out to technical consultation until the 11 March 2019.
Following the implementation of the reforms of the Local Government Pension Scheme from 1 April 2015, work has continued with practitioners to identify areas in the regulations that require clarification and correction. These amending regulations are the product of that work and contain other policy developments such as provisions as a result of the Pension Schemes Act 2015.
The bulk of the proposed amendments in the draft Regulations are to clarify existing provisions or arise from changes suggested by stakeholders and to which SPPA has agreed. There are changes which relate to the Taxation of Pensions Act 2014 and are in relation to AVC provision, the Annual Allowance (scheme pays) and to Auto-enrolment. These regulations also introduce further flexibility to assist fund authorities and employers to address funding liabilities when a body ceases to be a scheme employer.
This consultation ended on Monday 15 January 2018
The bulk of the proposed amendments in the draft Regulations are technical. There are amendments to both the Local Government Pension Scheme (Scotland) Regulations 2014 and the Local Government Pension Scheme (Transitional Provisions and Savings)(Scotland) Regulations 2014.
The draft amendments also introduce provisions required by the Marriage and Civil Partnership (Scotland) Act 2014 into the Local Government Pension Scheme (Scotland) Regulations 1998 and the Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008. This is required, as there are deferred and pensioner members of both of these earlier schemes.
Draft amendments are also made to the 1998 regulations to ensure that deferred ill health applications are considered by the administering authority rather than the former Scheme employer. This reflects the policy intent in both the 2008 regulations and the 2014 regulations, and mirrors the procedure currently followed by the administering authorities.
Consultation period: 30 September to 11 November 2014
These Regulations made under section 1 of the Public Service Pensions Act 2013 include provisions in relation to pension boards and a Scheme Advisory Board that are required to be included in regulations made under that section in terms of sections 5 and 7 of that Act. They also include further provisions provided by the Scottish Local Government Pensions Advisory Group for the new Local Government Pension Scheme which were agreed in a series of bilateral meetings between COSLA and the Trade Unions representing local government employees in Scotland.
The Regulations do not cover provisions in relation to employer cost cap as provided for in section 12 of the Public Service Pensions Act 2013. A cost cap will be set on the completion of the necessary actuarial work expected to conclude towards the end of 2015. An amendment to the Scheme will be made at that time to include the cost cap.
Consultation period: 26th June 2014 to 7th August 2014
Your technical comments on the draft Local Government Pension Scheme (Transitional Provisions and Savings) (Scotland) Regulations 2014 are now invited.
The bulk of the proposed amendments in the draft Regulations are to preserve transitional protection for certain groups and ensure that active members within 10 years of normal pension age under the 2009 Scheme on 1st April 2012 remain entitled to draw benefits on retirement which are no less than they would have been able to draw if the 2009 Scheme had continued to
Consultation period: 6th January 2014 to 14th February 2014
Your technical comments on the draft Local Government Pension Scheme (Scotland) Regulations 2014 are now invited. These are to be introduced from 1st April 2015.
The Scottish Local Government Pensions Advisory Group (SLOGPAG), comprising representatives from COSLA, the trades unions and the Scottish Government, has over the last eighteen months, been working, to develop proposals for a new Scottish Local Government Pension Scheme with effect from April 2015. This method of developing the new Scheme to meet Scottish needs represents the Scottish Government's preferred collaborative approach and the advantages of this open and transparent process are recognised by each of us.
Some of the proposed amendments to the existing Regulations are to ensure that the reformed LGPS in Scotland complies with the UK Public Services Pensions Act 2013. The purpose of the changes is to ensure the delivery of a scheme, which continues to provide valued benefits for scheme members which are affordable, sustainable and fair to employers, scheme members and tax payers.
This consultation has now concluded
The Public Service Pensions Act 2013 includes several key provisions relating to the administration and governance of the new public service pension schemes established under Section 1 of the Act. In the case of the Local Government Pension Scheme in Scotland, these arrangements will apply to the new Scheme which comes into effect on 1st April 2015.
This consultation paper explores four specific sections of the Act which impact on the governance arrangements in the new Scheme:
- Scheme manager
- Pension board Pension board information, and
- Scheme advisory board
Consultation period 31st October 2013 to 1st December 2013
The regulations introduce amendments relating to auto-enrolment and AVCs.
Consultation period 26th November 2010 to 7th January 2011
Pensions in payment and deferred awards are index-linked by virtue of the Pensions (Increase) Act 1971 whereby the rate is published by Treasury in an Order made under the Act. Thus, the change in indexation of pensions in payment from RPI to CPI will occur automatically without any statutory amendments. In addition where provisions of ‘The Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008’ and ‘The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008’ refer to the Pensions (Increase) Act 1971, the CPI will automatically apply from 4th April 2011.
However there are references specifically to the ‘RPI’ in the schemes’ regulations/rules and we have considered those that require amendment to reflect the change to CPI from 3rd April 2011.
A draft governance compliance guidance was issued for consultation. Please find the relevant document and respondent information form below for details:
Consultation period 19th November to 18th December 2009
This consultation detailed draft Regulations to amend the LGPS (Administration) (Scotland) Regulations 2008 and the LGPS (Benefits, Membership and Contributions) (Scotland) Regulations 2008. The main change was to add a new provision to the Regulations requiring Administering Authorities to publish annually a document called The Pension Fund Annual Report. Consultation documents can be accessed from the links below:
Consultation period 11th November to 18th December 2009
Following our previous consultation (16th July to 9th October 2009) on possible changes to the LGPS (Management and Investments of Funds) (Scotland) Regulations 1998, a consultation took place on draft regulations relating to the changes. The opportunity has also been taken to consolidate the 1998 regulations. Consultation documents can be accessed from the links below:
Consultation period 16th July to 9th October 2009
Consultation documents can be accessed from the links below:
Consultation period 17th December 2008 to 20th January 2009
The Local Government Pensions (Increased Pension Entitlement) (Scotland) Regulations 2009 amends the above regulations to introduce a new Part VII which specifically provides for the IPE and introduces the necessary legislative changes to ensure that, from April 2009, the amount of overpayment currently received by LGPS pensioners as a result of GMP overpayments, will continue to be paid, though it will be frozen at the existing level.
Consultation period 31st October to 12th December 2008
Proposed additional provisions to be inserted into the above regulations as follows:-
to allow administering authorities to recover additional costs from employing authorities which have been incurred and were attributable to authorities' level of performance.
to enable administering authorities to set our procedures for liaising and communicating with employing authorities and to establish levels of performance which they and their employing authorities were expected to achieve in carrying out their scheme functions.
Consultation period 10th September to 31st October 2008
Draft regulations have been issued for consultation which will make provision in the above-named Regulations, from 1st April 2009, for a third tier ill-health lump sum compensation payment, payable at the discretion of the employer in circumstances where a scheme member has ceased to be employed on capability grounds but is not deemed to be permanently incapable of carrying out efficiently the duties of that employment. The amending regulations will also increase the maximum lump sum compensation payment which may be awarded in cases of redundancy or efficiency from 66 weeks to 104 weeks’ pay.
Consultation Period 30th July to 31st October 2008
Proposals have been outlined for the new Local Government Pension Scheme (LGPS) in Scotland. These proposals have been jointly developed over the last 6 months by a tripartite group comprising of representatives from the Scottish Executive, COSLA and Trades Unions. These proposals have been developed to meet the varied needs of a diverse workforce, balanced with the requirements of employers.
Consultation period 20th June to 21st September 2007
A consultation paper was issued on 20th June 2007 to amend both the Local Government Pensiond Scheme (Scotland) Regulations 1998 (the "principal regulations") and the Local Government Pension Scheme (Management & Investment of Funds) (Scotland) Regulations 1998 (the "Management and Investment of Funds Regulations"). The main purpose of the regulations is to make an amendment to the "Management & Investment of Funds Regulations" in order to comply with EC Directive 2005/68EC on Re-insurance.
The opportunity has been taken to introduce certain other amendments to these regulations and to the principal regulations as follows:
- to introduce a facility for civil partnership members to purchase pre-April 1988 service, at full cost to the members;
- to increase the limits on investment by fund administering authorities under stock lending arrangements from 25% to 35% of the value of the fund;
- to make minor amendments to clarify certain tax changes introduced in 2006 under the Finance Act 2004; and
- to insert a reference to regulation 34 (Requirements as to time of payment) in regulation 79(5) (Employer's further payments)
Consultation period 16th October to 15th November 2006
A consultation paper was issued on 16th October 2006 following on from the broad consultations which took place as part of "Facing the Future - Principles and propositions for an affordable and sustainable Local Government Pension Scheme in Scotland" and subsequent careful consideration of the various comments received. These documents can be accessed by following the links below
Consultation period 16th October to 4th November 2006
A consultation paper was issued on 16th October 2006 which outline the intention to provide councillors access to the LGPS in Scotland. These documents can be accessed by following the links below
Consultation Period 29th June to 31st July 2006
A News Release was issued to announce the commencement of the above consultation exercise. This consultation is in respect of proposed changes to the Local Government Pension Scheme (Scotland) Regulations 1998. The main proposals cover the removal of the Rule of 85 and simplification of the tax regime for pension schemes under the Finance Act 2004. This period of statutory consultation follows two earlier consultation exercises on the proposed changes, the first in September 2004 in respect of the removal of the Rule of 85 and the second in July 2005 in respect of changes in order to comply with provisions set out in the Finance Act 2004.
The consultation documents can be accessed below.
Consultation period 15th December 2005 to 10th January 2006
A consultation paper was issued on 15th December 2005 following our initial consultation exercise carried out in October (see below). These documents can be accessed by following these links
Consultation period 7th October to 25th November 2005
A consultation paper was issued on 7th October 2005 detailing proposed changes to the Local Government Pension Scheme (Scotland) Regulations 1998 to make necessary changes to list the regional transport partnerships as local government employers. This paper was accompanied by a Scottish Executive Press Release which gives details of the proposed make up of each partnership.
Consultation period 15th July to 16th September 2005
A consultation paper was issued on 15th July 2005, detailing a series of proposed changes to the Local Government Pension Scheme (Scotland) Regulations 1998 to bring it into line with changes introduced by the Finance Act 2004. The closing date for comments is 16th September 2005. It is proposed to issue a draft statutory instrument for a further period of consultation taking into account comments made during this exercise.
Consultation period 12th August to 9th September 2005
A consultation paper was issued on 12th August 2005, detailing a series of proposed changes to the Local Government Pension Scheme (Scotland) Regulations 1988, the LGPS (Transitional Provisions) (Scotland) Regulations 1998 and the LG (Discretionary Payments & Injury Benefits)(Scotland) Regulations 1998. These amendments are necessary to implement the survivor pension provisions of the Civil Partnership Act 2004 in the above set of regulations. The closing date for comments is 9th September 2005.
Consultation period 2nd September to 2nd December 2004
This consultation is in respect of proposed amendments by ODPM to the LGPS regulations in England and Wales and to alert local authority employers, pensions administrators and employee representatives to the fact that the SPPA is considering introducing similar draft amendment regulations covering the Local Government Pension Scheme (Scotland) in due course and invites comments on these proposals by 2nd December 2004.
The consultation drew attention to Circular 161 issued in August 2004 by the Local Government Pension Committee in response to the ODPM’s proposals as outlined in their consultation letter and draft amendment regulations which were issued on 31st March 2004.
Consultation period 25th November 2004 to 20th May 2005
A consultation paper entitled "Facing the future - Principles and propositions for an affordable and sustainable Local Government Pension Scheme in Scotland" was issued on 25th November 2004. The closing date for the receipt of responses is 20th May 2005.
To view the SPPA covering letter and consultation paper please click on the appropriate link. For your convenience, the questions contained in the main consultation document, which we would appreciate your views on, have also been collated into a separate questionnaire which can be completed and 'e' mailed or posted back to us at the SPPA.
This document is based upon a consultation document issued on 4th October 2004 by the Office of the Deputy Prime Minister about the future of the LGPS in England and Wales. The Local Government Pensions Committee have also issued Circular No. 166 which provides a summary of the ODPM consultation document.