The London Government Reorganisation (Pensions etc.) Order 1989

Citation, commencement and interpretation

1.—(1) This Order may be cited as the London Government Reorganisation (Pensions etc.) Order and shall come into force on 30th October 1989.

(2) In this Order—

“the 1985 Act” means the Local Government Act 1985;

“the Authority” means the body established by article 2(1);

“the Residuary Body” means the London Residuary Body; and

“the 1986 Regulations” means the Local Government Superannuation Regulations 1986(1).

Establishment of the London Pensions Fund Authority

2.—(1) On 31st October 1989 there shall be established a body corporate known as the London Pensions Fund Authority to receive the functions, property, rights and liabilities transferred by this Order.

(2) Schedule 1 shall have effect in relation to the Authority.

Transfer of pension and other functions

3.  On 1st April 1990 the functions, property, rights and liabilities of the Residuary Body which are specified in Schedule 2 shall become the functions, property, rights and liabilities of the Authority.

Power to levy

4.—(1) The Authority may in respect of any financial year beginning on or after1st April 1990 make one or more levies in order to meet its net expenditure.

(2) Any levy shall be made on one of the following classes of authorities—

(i) all London borough councils and the Common Council of the City of London; or

(ii) inner London borough councils and the Common Council; or

(iii) outer London borough councils.

(3) The amount to be paid by each of the authorities of any class on which a levy is made shall be proportionate to its relevant population as calculated in accordance with section 69 of the Local Government Finance Act 1988(2).

(4) A levy shall be made by serving on each authority of the relevant class a written demand stating the date or dates on or before which a payment in respect of the levy is required to be made and the amount of that payment.

(5) A demand must be served on, or information as to the amount to be demanded must be given to each authority of a class on which a levy is made before 14th February in the financial year preceding that to which the levy relates.

(6) In this article “net expenditure” means all expenditure and costs incurred by the Authority less receipts (if any), but excluding any expenditure or costs payable out of, or receipts which fall to be credited to, the superannuation fund maintained by the Authority under the 1986 Regulations.

Interim borrowing powers

5.—(1) Without prejudice to its powers under Schedule 13 to the Local Government Act 1972(3), the Authority may borrow by way of temporary loan or overdraft from a bank or otherwise any sums which it may require for the purpose of defraying its expenses before 1st April 1990.

(2) The sums borrowed by the Authority under paragraph (1) shall not exceed such amount as the Secretary of State may approve and shall be repaid before 1st April 1991.

Continuity of the exercise of functions

6.—(1) Anything done by or in relation to (or having effect as if done by or in relation to) the Residuary Body in the exercise of or in connection with a matter transferred by article 3 shall, so far as is required for continuing its effect on or after 1st April 1990, have effect as if done by or in relation to the Authority.

(2) Without prejudice to the generality of paragraph (1), that paragraph applies to the making of any application, decision or determination, to the giving of any notice, to the entering into of any agreement or other instrument, and to the bringing of any action or proceeding; but nothing in this Order shall be construed as transferring any contract of employment.

(3) Any pending action or proceeding may be amended in such manner as may be necessary or proper in consequence of this Order.

Other supplementary provision

7.—(1) With effect from 1st April 1990 the 1986 Regulations are amended—

(a) In regulation C1(2), by substituting for the words “London Residuary Body” the words “London Pensions Fund Authority”;

(b) in regulation C1(4), by substituting for the words “London Residuary Body” the words “London Pensions Fund Authority”;

(c) in regulation C1(5), by substituting for the words “London Residuary Body”, in the second place in which they occur the words “London Pensions Fund Authority”; and

(d) in regulation P1(1), by inserting after the words “district council” the words “the London Pensions Fund Authority”.

(2) The 1986 Regulations are amended—

(a) In regulation C1(1), by substituting for the words “paragraphs (2), (3) and (6)” the words “paragraphs (2), (5) and (6).”; and

(b) by adding to regulation C1(5) the following:—

“or (h) within one month and a day after ceasing to be a pensionable employee as is mentioned in sub-paragraph (e), becomes a pensionable employee of a London borough council or of the Common Council, or

(i) is a pensionable employee of the London Pensions Fund Authority.”.

(3) Part I of Schedule 2 to the 1986 Regulations is amended in Column 1 by inserting after a “higher education corporation” the words “London Pensions Fund Authority”.

(4) Without prejudice to the generality of article 6 (continuity of the exercise of functions)—

(a) any admission agreement within the meaning of the 1986 Regulations in force immediately before 1st April 1990 whereby employees of any body were, or could become, admitted employees participating in the benefits of the superannuation fund maintained under those Regulations by the Residuary Body shall be of full force and effect in favour of, or against the Authority;

(b) where a person has ceased to contribute to that fund and has not become a contributor to any other superannuation fund maintained under those Regulations, the transferred fund shall on and after 1st April 1990 be deemed to be the fund to which he was last a contributor; and

(c) on and after 1st April 1990 the Authority is to be treated as being the previous fund authority for the purposes of Part Q of those Regulations in place of the Residuary Body.

(5) With effect from 1st April 1990 paragraphs 48 and 49 of Schedule 2 to the Pensions (Increase) Act 1971(4) are amended by substituting for the words “London Residuary Body” the words “London Pensions Fund Authority”.

(6) At the end of Part II of Schedule 2 to the Pensions (Increase) Act 1971 (pensions payable out of local funds) there shall be inserted—“64C.  A pension payable by the London Pensions Fund Authority.”.

(7) Any liability of the Residuary Body as the last employing authority under paragraph 1(1) of Schedule 3 to the Pensions (Increase) Act 1971 in respect of any employee whose last day of service occurs before 1st April 1990 shall become the liability of the Authority.

(8) Section 61(5) of the 1985 Act shall continue to have effect, so that no liability to reimburse the Authority in respect of any payment made by it shall attach to the Secretary of State, the Arts Council of Great Britain or the Historic Buildings and Monuments Commission for England where no liability to reimburse the Residuary Body would have attached to them if this Order had not been made.) is amended by inserting after paragraph (1) the following:—

“(m) the London Pensions Fund Authority.”.

C. F. Patten

Secretary of State for the Environment

5th October 1989