Written Question · S2W-21675 · Session 2
Whether it will take separate legal advice with regard to the abolition of Rule 85 of the local government pension scheme, in light of conf…
The question
To ask the Scottish Executive whether it will take separate legal advice with regard to the abolition of Rule 85 of the local government pension scheme, in light of conflicting legal advice reported by the UK Government, COSLA and UNISON.
The answer
The Scottish Executive consulted on proposals for the amendment of the Local Government Pension Scheme (LGPS) in Scotland in September 2004. The proposals were intended to deal with the sustainability and affordability of the scheme as part of the on-going development of the LGPS and also to ensure that the scheme complied with EC Employment Directive 2000/78/EC, which establishes a general framework for equal treatment in employment and occupation.
The Rule of 85 allows members of the LGPS to access full pension if they leave employment at age 60 or more but before the scheme’s normal retirement age of 65, if their age and length of service (including any period since leaving local government employment) total at least 85.
The Minister for Local Government in England and Wales announced, on 2 December 2005, that the UK Government had concluded that the Rule of 85 is to be removed from 1 October 2006 by amendments to the scheme regulations in England and Wales. The announcement stated that this was necessary in order to implement the terms of the EC Directive.
The Scottish Executive has given careful consideration to the legal opinion presented by COSLA on the question of the removal of the Rule of 85 from the Local Government Pension Scheme in Scotland and also that presented to the UK Government by UNISON. The Executive has concluded that retaining the rule would be incompatible with the Directive on age discrimination and that therefore it will require to be removed from the Local Government Pension Scheme with effect from October this year, in accordance with the UK Government’s timetable for implementing the Directive.
The Executive therefore intends that the Rule of 85 will be removed with effect from 1 October 2006 by amending the Local Government Pension Scheme (Scotland) Regulations 1998 in order to ensure compliance with the EC Directive and help maintain the sustainability and affordability of the Scottish scheme. Where it can be objectively justified consideration will be given to providing transitional protection to those existing scheme members who might have qualified to receive an unreduced early pension under the rule if it was not removed, and who may not have sufficient time to make alternative savings plans for their retirement. As was set out in the Executive’s consultation paper in September 2004, it is proposed that protection be provided to those existing scheme members who would satisfy the current Rule of 85 and attain age 60 by 31 March 2013. However, during the period of consultation the Executive will wish to discuss such proposals further with representatives of the local employers and unions representing LGPS members.
The Executive will prepare draft Regulations to implement the removal of the rule and publish these for consultation shortly.
The Rule of 85 allows members of the LGPS to access full pension if they leave employment at age 60 or more but before the scheme’s normal retirement age of 65, if their age and length of service (including any period since leaving local government employment) total at least 85.
The Minister for Local Government in England and Wales announced, on 2 December 2005, that the UK Government had concluded that the Rule of 85 is to be removed from 1 October 2006 by amendments to the scheme regulations in England and Wales. The announcement stated that this was necessary in order to implement the terms of the EC Directive.
The Scottish Executive has given careful consideration to the legal opinion presented by COSLA on the question of the removal of the Rule of 85 from the Local Government Pension Scheme in Scotland and also that presented to the UK Government by UNISON. The Executive has concluded that retaining the rule would be incompatible with the Directive on age discrimination and that therefore it will require to be removed from the Local Government Pension Scheme with effect from October this year, in accordance with the UK Government’s timetable for implementing the Directive.
The Executive therefore intends that the Rule of 85 will be removed with effect from 1 October 2006 by amending the Local Government Pension Scheme (Scotland) Regulations 1998 in order to ensure compliance with the EC Directive and help maintain the sustainability and affordability of the Scottish scheme. Where it can be objectively justified consideration will be given to providing transitional protection to those existing scheme members who might have qualified to receive an unreduced early pension under the rule if it was not removed, and who may not have sufficient time to make alternative savings plans for their retirement. As was set out in the Executive’s consultation paper in September 2004, it is proposed that protection be provided to those existing scheme members who would satisfy the current Rule of 85 and attain age 60 by 31 March 2013. However, during the period of consultation the Executive will wish to discuss such proposals further with representatives of the local employers and unions representing LGPS members.
The Executive will prepare draft Regulations to implement the removal of the rule and publish these for consultation shortly.
In the Official Report
No contribution in the Official Report cites S2W-21675 by reference.