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The Local Government Pension Scheme Regulations 1997

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Pension increases under the Pensions (Increase) Acts

91.—(1) Where a pension to which the Pensions (Increase) Act 1971(1) (“the 1971 Act”) applies is payable out of an appropriate fund, any increase under that Act or the Pensions (Increase) Act 1974(2) (“the 1974 Act”), must be paid from that fund.

(2) But Schedule 3 to the 1971 Act only has effect in relation to any such increase where—

(a)the last employing authority is not a body required by regulation 79 to contribute to that fund nor a Water Act Company; or

(b)the last employing authority is such a body or Company and the increase was payable before 1st April 1990.

(3) In a case where the last employing authority ceases after 31st March 1990 to be such a body, Schedule 3 to the 1971 Act has effect only so far as the cost of the increase has not, in the opinion of an actuary appointed by the administering authority of the fund, already been provided for by contributions under regulation 79.

(4) Where the last employing authority is a Water Act Company, the Environment Agency must reimburse the appropriate administering authority the cost of any increase payable under the 1971 Act or the 1974 Act on or after 1st April 1990 from the Closed Water Authorities Fund.

(5) The Closed Water Authorities Fund is the Closed Fund vested in the Environment Agency by regulation 2(1) of the Local Government Pension Scheme (Environment Agency) Regulations 1996(3).

(6) The amounts due under paragraph (4) or under Schedule 3 to the 1971 Act must be paid on or before such dates falling at intervals of not more than 12 months as the appropriate administering authority may determine.

(7) The administering authority shall credit to the appropriate fund any amounts paid to them under paragraph (4) or Schedule 3 to the 1971 Act and any interest paid on them.

(8) The last employing authority has the same meaning as in paragraph 1(2) of Schedule 3 to the 1971 Act, except that if the pension became payable by reason of service with a relevant body, it means that body.

(9) Relevant bodies are—

(a)an admission body which has made an admission agreement,

(b)a body employing persons deemed to be in employment by regulation 129 or 130, or

(c)a company under the control of a Scheme employer listed in Schedule 2.

(10) A Water Act Company is—

(a)a company nominated in accordance with section 4 of the Water Act 1989(4) as the successor company of a water authority, or

(b)a company nominated by order under section 83(1) of that Act.

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