Citation and commencement

1. These Regulations may be cited as the Divorce etc. (Pensions) (Scotland) Amendment Regulations 2008 and shall come into force on 1st October 2008.

Amendment of the Divorce etc. (Pensions) (Scotland) Regulations 2000

2.–(1) The Divorce etc. (Pensions) (Scotland) Regulations 2000(2) are amended as follows.

(2) In regulation 2(1) (interpretation)-

(a) in the appropriate alphabetical places, insert-

• ""normal pension age" has the meaning given in section 180 (normal pension age) of the 1993 Act;";

""the Transfer Values Regulations" means the Occupational Pension Schemes (Transfer Values) Regulations 1996(3);";

(b) for the definition of "salary related occupational pension scheme", substitute-

• ""salary related occupational pension scheme" has the meaning given by regulation 1A of the Transfer Values Regulations;".

(2) In regulation 3 (valuation)-

(a) in paragraph (2)(d)-

(i) for "paragraphs (7) to (9)" substitute "paragraphs (7) and (8)";

(ii) after head (iii), insert-

• "; or

  (iv)

  the pension of the person with pension rights is not in payment and the person has attained normal pension age.";

(b) for paragraph (4)(b), substitute-

"(b) in accordance with regulation 11 (disclosure) of, and Schedule 1 to, the Transfer Values Regulations.";

(c) for paragraphs (7) to (9), substitute-

"(7) Cash equivalents are to be calculated and verified in accordance with regulations 7 to 7C and 7E(1) to (3) of the Transfer Values Regulations as appropriate.

(8) But when calculating and verifying a cash equivalent in accordance with those regulations-

(a) references to "trustees" must be read as references to "person responsible for the pension arrangement";

(b) where the person with pension rights is a pensioner member on the date on which the request for the valuation is received, the value of his pension must be calculated and verified in accordance with regulations 7 to 7E of the Transfer Values Regulations as appropriate;

(c) where the person is over normal pension age but not in receipt of a pension-

(i) the value of his pension must be calculated and verified in accordance with regulations 7 to 7E of the Transfer Values Regulations as appropriate; and

(ii) the person responsible for the pension arrangement must assume that the pension came into payment on the date on which the request for the valuation was received; and

(d) the date by reference to which the cash equivalent is to be calculated and verified is to be the date on which the request for the valuation was received."; and

(d) in paragraph (10), for "paragraph (3), (4), (7) or (9)", substitute "paragraph (3), (4) or (7)".

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Divorce etc. (Pensions) (Scotland) Regulations 2000 in consequence of the UK government´s resumption of direct responsibility for determining how cash equivalent transfer values ("cash equivalents") of pension rights are to be calculated. From 1st October 2008, the Actuarial Profession´s GN11 guidance no longer applies and cash equivalents are to be calculated in accordance with rules set out in the Occupational Pension Schemes (Transfer Values) Regulations 1996, as amended by the Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008. These Regulations provide for the same methodology to be used for valuation of pensions in connection with divorce or dissolution of civil partnerships.