Important Changes to the Local Government Pension Scheme

June 2019

  • If a member retires on ill health grounds, and prior to being retired has suffered a drop-in pay from having worked reduced hours due to illness, then in calculating scheme benefits no account is to be taken of the reduction in pay. This provision is effective from 1st April 2015.
  • From 1st June 2018, all deferred members who have attained the age of 55 can elect to have their benefits paid out with immediate effect provided they are no longer in the employment which gave rise to the benefit (an individual with deferred benefits but now in a different local government employment would be able to access their benefits). Benefits taken prior to the normal scheme pension age will be subject to an early payment reduction.
  • Where a member is on authorised leave for a continuous period of less than 31 days (other than through illness or injury) and has reduced pay or nil pay, then on their return to work they must pay their member contributions based on the pay they would have received but for the absence.
  • One of the conditions for paying a pension to a surviving partner has been relaxed. Previously, at the time of his/her death, a member had to have been legally free to marry/form a civil partnership for a period of at least 2 years. Now the member only needs to have been free to marry/form a civil partnership at the time of his/her death. Other conditions however continue to apply (eg. the member and partner must have been living together as a married couple/civil partners for at least 2 years and have been financially interdependent or the partner dependent on the member).
  • Member contributions cannot be made on or after the day prior to the member’s 75th

The full list of changes can be found in the Local Government Pension Scheme (Miscellaneous Amendments) (Scotland) Regulations 2019 (S.S.I. 2019/161)

This update is for information purposes only and dos not override the statutory term of the Scheme Regulations