Local Government Pension Scheme Regulations (Northern Ireland) 2002

SCHEDULES

Regulation 2(1)

SCHEDULE 1 INTERPRETATION

“The Act of 1937” means the Local Government Superannuation Act 1937(1) or the Local Government Superannuation (Scotland) Act 1937(2);

“The Act of 1950” means the Local Government (Superannuation) Act (Northern Ireland) 1950(3);

“The Act of 1953” means the Local Government Superannuation Act 1953(4);

“The Acts of 1937 to 1953” means the Act of 1937 and the Act of 1953;

“The Act of 1959” means the National Insurance Act (Northern Ireland) 1959(5);

“The Act of 1975” means the Social Security (Northern Ireland) Act 1975(6);

“The 1950 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1950(7);

“The 1962 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1962(8);

“The 1981 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1981(9);

“The 1992 Regulations” means the Local Government (Superannuation) Regulations 1992(10);

“The 1999 Act” means the Welfare Reform and Pensions Act 1999(11);

“The 1999 Order” means the Welfare Reform and Pensions (Northern Ireland) Order 1999(12);

“The 2000 Regulations” means the Local Government Pension Scheme Regulations (Northern Ireland) 2000(13);

“active member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995(14);

“actuary” means a Fellow of the Institute of Actuaries or of the Faculty of Actuaries;

“added years” has the meaning given in Schedule A1 to the 2000 Regulations;

“additional voluntary contributions provision” is a provision of an occupational pension scheme approved under section 591 of the Taxes Act, which provides for the payment by employees of voluntary contributions;

“additional voluntary contributions scheme” means a scheme approved under section 591 of the Taxes Act, to which an employer is not a contributor and which provides benefits additional to those provided by an occupational pension scheme;

“admission agreement” has the meaning given in regulation 4(2);

“admission agreement employee” means such an employee as is mentioned in regulation 4.

“admission body” means a body mentioned in regulation 4(3);

“appropriate personal pension scheme” means a personal pension scheme for which there is in force a certificate issued in accordance with regulations made under section 3 of the Pension Schemes (Northern Ireland) Act 1993;

“appropriate policy” means a policy of insurance or annuity contract which provides an annuity which satisfies requirements prescribed under section 91(2)(c) of the Pension Schemes (Northern Ireland) Act 1993(15);

“approved AVC body” means a building society or a person operating an approved scheme which provides benefits in respect of persons who have paid contributions in addition to those provided in relation to them under an occupational pension scheme;

“approved non-local government employment” means employment in which a person participates in an approved non-local government scheme;

“approved non-local government scheme” means a non-local government scheme which is –

(a)

approved under Part XIV of the Taxes Act; or

(b)

approved by the Commissioners of Inland Revenue for the purposes of these Regulations;

“approved scheme” has the meaning given in section 612 of the Taxes Act;

“Assembly” means the Northern Ireland Assembly;

“AVCs” means contributions made under regulation 63;

“AVC insurer” means –

(a)

a person who has permission under Part IV of the Financial Services and Markets Act 2000(16) to carry out contracts of long-term insurance; or

(b)

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long term insurance,

and this definition must be read with –

(i)

section 22 of the Financial Services and Markets Act 2000;

(ii)

any relevant order under that section;

(iii)

Schedule 2 to that Act;

“AVC pension policy” means a contract entered into on behalf of a member by the Committee with an AVC insurer for the payment by the company of pension benefits to the intended recipients of those benefits which are in addition to those payable under Part II and Chapters II and III of Part III;

“away on jury service”, in relation to a person, means being away from work with permission given so that he could –

(a)

attend for jury service in pursuance of a summons under the Juries (Northern Ireland) Order 1996(17); or

(b)

attend as a juror at an inquest under the Coroners Act (Northern Ireland) 1959(18);

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“Belfast Corporation” means the council of the former county borough of Belfast;

“The Belfast Corporation Superannuation Scheme” means the superannuation scheme made by Belfast Corporation under section 5A(19) of the Act of 1950, on 4th August 1964 or 20th April 1951 (both as amended) as the circumstances require;

“building society” has the meaning given in the Building Societies Act 1986(20);

“cancelling notice”, in relation to a person’s relevant reserve forces service, means –

(a)

the agreement (by a member who has not waived his right to receive a return of contributions under regulation 88) to receive them; or

(b)

a notice in writing given by him to the Committee not later than 12 months after the end of the period of service to which the notice relates (or within such longer period as it may allow) that the service should not be treated as relevant reserve forces service;

“child” has the meaning given in regulation 46;

“Class A member”, “Class B member” and “Class C member” have the meanings given in paragraph 1(1) of Schedule 4 and “Class B membership” and “Class C membership” shall be construed accordingly;

“club scheme” means an occupational pension scheme which –

(a)

provides benefits calculated by reference to final pay;

(b)

(except where it is established and maintained in the Channel Islands or the Isle of Man) is approved by the Commissioners of Inland Revenue under Chapter I of Part XIV of the Taxes Act;

(c)

is open to new participants, or is a closed scheme the trustees or managers of which also provide an open scheme which is a club scheme for new employees of the same employer and of the same grade or level of post as the participants in the closed scheme; and

(d)

complies with reciprocal arrangements for the payment and receipt of transfer values with the schemes made under Article 9 of the Order of 1972;

“The Committee” means the Northern Ireland Local Government Officers' Superannuation Committee established under section 1 of the Act of 1950;

“The Communities' scheme” means the pension scheme provided for officials and other servants of the Communities in accordance with regulations adopted by the Council of the European Communities;

“Community institution” includes a body treated as one of the Communities' institutions for the purposes of the Communities' scheme;

“continuity conditions” has the meaning given in paragraph 1(1) of Schedule 4;

“contracted-out employment” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993 and “contracted-out”, in relation to a scheme, must be construed in accordance with that Act;

“contractual hours” –

(a)

in relation to an employee (other than an employee with non-cyclical fluctuating hours), means the number of hours specified in his contract of employment as his contractual hours for the purposes of the Scheme; and

(b)

in relation to an employee with non-cyclical fluctuating hours, means the number of hours calculated as his contractual hours for the purposes of the Scheme in accordance with the provisions of his contract of employment;

“contractual weeks”, in relation to an employee, means the number of weeks in every period of 12 months for which, assuming he is not away on unpaid leave, pay is payable to him;

“contract of employment” includes terms of office;

“contributory employee” means a person who was entitled to participate in the benefits of a superannuation fund maintained under Part I of the Act of 1937;

“deferred member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995, except as provided in regulation 34(3) and (5);

“the Department” means the Department of the Environment;

“earnings factors” means the earnings factors referred to in section 10 of the Pension Schemes (Northern Ireland) Act 1993;

“eligible child” has the meaning given in regulation 46;

“employee” includes a permanent, temporary or casual employee;

“employing authority” means a body employing an employee who is eligible to be a member;

“employment” includes office;

“equivalent pension benefit” has the same meaning as in section 56(1) of the National Insurance Act (Northern Ireland) 1966(21);

“fees” includes other payments in the nature of fees;

“final pay” shall be construed in accordance with regulation 22;

“final pay period” shall be construed in accordance with regulations 22 and 23;

“fluctuating emoluments” are any part of an employee’s earnings which are not paid on a fixed basis and are additional to the basic wage or salary;

“former local authority” means a body, other than a Scheme employer, which was a local authority within the meaning of the Act of 1937 as originally enacted;

“the former regulations” means the 2000 Regulations, or as the circumstances require, the 1992 Regulations, the 1981 Regulations, the 1962 Regulations or the 1950 Regulations and shall be deemed also, in the case of a member who immediately before 1st April 1973 was subject to the Belfast Corporation Superannuation Scheme to include the provisions of that Scheme;

“FSAVC scheme” means a scheme approved by virtue of section 591(2)(h) of the Taxes Act;

“the fund” means the superannuation fund established under the 1950 Regulations;

“Government department” has the meaning given in section 176 of the Pension Schemes (Northern Ireland) Act 1993;

“the Great Britain Acts” means the National Insurance Acts 1965 to 1974(22);

“guaranteed minimum pension” means the guaranteed minimum as defined in sections 10 and 13 of the Pension Schemes (Northern Ireland) Act 1993 (minimum pensions for earners, widows and widowers), so far as it is attributable to earnings factors for the tax year 1988-89 or for subsequent tax years, increased in accordance with the requirements of section 105 of that Act (annual increase of guaranteed minimum pensions);

“ill-health pension” and “ill-health grant” shall be construed in accordance with regulation 29;

“the Insurance Act” means the National Insurance Act (Northern Ireland) 1966;

“the Isle of Man Act” means the National Insurance (Isle of Man) Act 1961 (an Act of Tynwald);

“local Act contributor” means a person who was entitled to participate in the benefits of a pension fund maintained under a local Act scheme;

“local Act scheme” has the meaning given in section 8 of the Superannuation Act 1972(23), except that where it refers to any time before 25th March 1972 it has the same meaning as in the Act of 1937;

“local authority” has the meaning assigned to it by Article 2 of the Order of 1972 and shall include the Northern Ireland Housing Executive;

“local government auditor” has the same meaning as in the Local Government Act (Northern Ireland) 1972(24);

“local government employment” means –

(a)

in relation to any time before 1st March 1993, employment by virtue of which the person employed was, or is deemed to have been, a contributory employee or a local Act contributor; and

(b)

in relation to any time after 28th February 1993, means employment by virtue of which the person employed is or has been, or is or has been deemed to be a member of the Scheme, or a pensionable employee (within the meaning of the 1992 Regulations) or a local Act contributor;

“lower earnings limit” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“manual worker” is an employee who is not an officer;

“maternity rights returner” is a woman who exercises a right to return to work after being away from work wholly or partly because of pregnancy or confinement;

“member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995 except that it shall not include a pension credit member except where specific reference is made to such member in regulation 95;

“Minister” means the Minister of the Environment;

“money purchase benefits” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“non-cyclical fluctuating hours” means hours which the employing authority are entitled to require the employee to work in a contractual week in any case where those hours vary in a way which is not cyclical;

“non-local government scheme” means an occupational pension scheme or other arrangements for superannuation, not being –

(a)

the superannuation scheme provided in regulations made under the Act of 1950; or

(b)

the superannuation scheme provided in regulations for the time being in force under Article 9 of the Order of 1972;

“normal benefit age” means 65;

“normal retirement age” has the meaning given in regulation 26(3);

“normal retirement date” has the meaning given in regulation 26(2);

“occupational pension scheme” means an occupational pension scheme within the meaning of section 1 of the Pension Schemes (Northern Ireland) Act 1993 other than –

(a)

a retirement benefits scheme (as defined in section 611 of the Taxes Act) which is not of a description mentioned in section 596(1)(a), (b) or (c) of that Act;

(b)

an additional voluntary contributions scheme;

(c)

an appropriate policy;

(d)

a personal pension scheme; or

(e)

a self-employed pension arrangement;

“officer” means an employee whose duties are wholly or mainly administrative, professional, technical or clerical;

“official pension” has the meaning given in the Pensions (Increase) (Northern Ireland) Act 1971(25);

“the Order of 1972 ”means the Superannuation (Northern Ireland) Order 1972(26);

“ordinary maternity leave” means for any period prior to 24th September 1996, leave under Article 15 of the Industrial Relations (No. 2) (Northern Ireland) Order 1976(27) and for any period commencing on or after 24th September 1996, leave under Part IX of the Employment Rights (Northern Ireland) Order 1996(28);

“parental leave” means leave under regulation 13(1) of the Maternity and Parental Leave etc. Regulations (Northern Ireland) 1999(29);

“part-time employee” means an employee –

(a)

whose contract of employment provides that he is such an employee for the Scheme; or

(b)

who is neither a whole-time employee nor a variable-time employee;

“payment in lieu of contributions” means a payment made in lieu of contributions under the Act of 1959, the Insurance Act, the Great Britain Acts or the Isle of Man Act;

“payment period” has the meaning given in regulation 6(4);

“pay” shall be construed in accordance with regulation 12;

“pensioner member” has the meaning given in Article 121(1) of the Pensions (Northern Ireland) Order 1995;

“the Pensions Order” means the Pensions (Northern Ireland) Order 1995;

“pension credit” means a credit under Article 26(1)(b) of the 1999 Order or under section 29(1)(b) of the 1999 Act;

“pension credit benefits” means benefits payable under the Scheme to or in respect of a pension credit member by virtue of rights under the Scheme attributable to a pension credit;

“pension credit member” means a person who has pension credit benefits under the Scheme;

“pension credit rights” means rights to future benefits under the Scheme which are attributable to a pension credit;

“pension debit” means a debit under Article 26(1)(a) of the 1999 Order or under section 29(1)(a) of the 1999 Act ;

“pension debit member” means a member, whether an active member, a deferred member or a pensioner member, whose shareable rights under the Scheme are subject to a pension debit;

“pension sharing order” in relation to a pension credit member, a pension debit member, a person entitled to a pension credit or pension credit rights means the order or provision by virtue of which Article 26 of the 1999 Order or section 29 of the 1999 Act takes effect;

“period of maternity absence” means any period throughout which a woman –

(a)

is absent from duty by reasons of pregnancy or confinement; and

(b)

may exercise the right under her contract of employment to return to work;

“permanently incapable” means incapable until, at the earliest, the member’s 65th birthday;

“personal pension scheme” means a personal pension scheme (within the meaning of section 1 of the Pension Schemes (Northern Ireland) Act 1993) which has been approved under Chapter IV of Part XIV of the Taxes Act or provisionally approved under section 655(5) of that Act;

“preserved benefits” means benefits to which a person becomes entitled under regulation 33, or the corresponding provisions of the former regulations and which have not had an election made in respect of them under regulation 34(1) nor have yet become payable;

“principal civil service pension scheme” has the meaning given in Article 4(10) of the Order of 1972;

“prospective member” means a person who under his contract of service or these Regulations –

(a)

may, if he wishes or his employer consents, become a member or will be able to do so if he continues in the same employment sufficiently long, or

(b)

will become a member unless he chooses not to do so;

“reference banks” means the seven largest persons for the time being who –

(a)

have permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits;

(b)

are incorporated in and carrying on within the United Kingdom a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling;

and for this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in Article 4 of the Companies (Northern Ireland) Order 1986)(30), as shown in the audited end-of-year accounts last published before that time and this definition must be read with –

(i)

section 22 of the Financial Services and Markets Act 2000;

(ii)

any relevant order under that section; and

(iii)

Schedule 2 to that Act;

“relevant reserve forces service” means service (other than service for the purposes of training only or service for a period in respect of which a cancelling notice has been served) –

(a)

in pursuance of any notice or directions given under any enactment which provides for the calling out on permanent service, or the calling into actual service, or the embodiment of, any reserve or auxiliary force, or members of such a force, or the recall of service pensioners;

(b)

in pursuance of any obligation or undertaking to serve when called upon as a commissioned officer; or

(c)

rendered by virtue of section 28 or 65 of the Reserve Forces Act 1996(31),

and paragraph (b) applies whether or not the obligation or undertaking is legally enforceable, but not in the case of an obligation or undertaking to accept a permanent commission or a commission for a fixed term or to serve for the purposes of periodical training;

“reserve forces pay”, in relation to any person, is the total of –

(a)

his pay for performing relevant reserve forces service (including marriage, family and similar allowances); and

(b)

any payments under Part V of the Reserve and Auxiliary Forces (Protection of Civil Interests) (Northern Ireland) Order 1953(32);

“reserve forces service leave”, in relation to a person, means being away from work –

(a)

after –

(i)

he has left the employment in which he is an active member; or

(ii)

he has been granted leave of absence from such an employment,

in order to perform reserve forces service;

(b)

without having agreed to receive a return of contributions under regulation 88; and

(c)

without having elected that the absence is not to count as such by giving notice in writing to the Committee not later than 12 months after the end of the period of reserve forces service to which the notice relates (or within such longer period as it may allow);

“reserve or auxiliary force” means the whole or part of the Royal Navy Reserve (including the Royal Fleet Reserve), the Royal Marines Reserve, the Territorial Army, the Army Reserve, the Air Force Reserve, the Royal Air Force Volunteer Reserve or the Royal Auxiliary Air Force;

“Revenue agreement”, in relation to a member, means agreement in writing by the Commissioners of Inland Revenue given after an application to them by the Committee that he may be treated as a Class B member or a Class C member by virtue of his membership before 1st June 1989 or, as the case may be, 17th March 1987 of a scheme approved under Chapter I of Part XIV of the Taxes Act;

“Revenue permitted maximum” means the permitted maximum, within the meaning of section 590C(2) of the Taxes Act;

“SCAVCs” means contributions made under regulation 70;

“the Scheme” means the occupational pension scheme constituted by these Regulations, the Transitional Regulations and the 2000 Regulations (so far as they continue to operate);

“Scheme employer” means a body as defined in regulation 3(3) (but see regulation 4(15));

“Scheme managers” means –

(a)

in relation to a statutory scheme, the Government department concerned or police or fire authority administering the scheme; and

(b)

in any other case, the person responsible for the management of the scheme;

“self-employed pension arrangement” has the same meaning as in section 176 of the Pension Schemes (Northern Ireland) Act 1993;

“service” –

(a)

in Chapter VI of Part IV means service or employment with any employer; and

(b)

elsewhere, means service with a Scheme employer,

and service rendered by an employee of a Scheme employer whose services are placed at the disposal of a Minister of the Crown or a Government department in pursuance of any enactment is to be treated as service with the Scheme employer;

“service pensioner” means a person in receipt of a pension (other than a pension awarded in respect of disablement) granted –

(a)

in respect of service in the Royal Navy, the Royal Marines, the regular army and the regular air force or any reserve or auxiliary force which has been called out on permanent service or which has been embodied; or

(b)

in respect of that and other service;

“shareable rights” means a person’s shareable rights mentioned in Article 24(2) of the 1999 Order or under section 27(2) of the 1999 Act;

“standard contribution rate” shall be construed in accordance with regulation 11;

“state pensionable age” means pensionable age within the meaning of section 122 of the Social Security Contributions and Benefits Act (Northern Ireland)1992(33);

“superannuable membership” has the meaning given in regulation 9(2);

“the Taxes Act” means the Income and Corporation Taxes Act 1988(34);

“tax year” means the 12 months beginning with 6th April in any year;

“the Transitional Regulations” means the Local Government Pension Scheme (Amendment No. 2 and Transitional Provisions) Regulations (Northern Ireland) 2002(35);

“total membership” and “total period of membership” shall be construed in accordance with regulation 8(2);

“trade dispute” has the meaning given by Article 2(4) and (7) of the Industrial Relations (Northern Ireland) Order 1992(36);

“trade dispute absence” means absence from duty, otherwise than with leave, for a period of one or more days during and because of a trade dispute;

“transfer date” in relation to a pension credit member and pension credit rights means the day on which the pension sharing order takes effect;

“transferor” in relation to a pension credit member or a person entitled to a pension credit means the person to whose shareable rights the pension sharing order relates;

“unaggregated period”, in relation to a period of membership, has the meaning given in regulation 34(6) and “aggregated” shall be construed accordingly;

“upper earnings limit” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“variable-time employee” means an employee whose contract of employment provides that he is such an employee for the Scheme and –

(a)

whose pay is calculated by reference to his duties (rather than necessarily by reference to the number of hours he has worked); or

(b)

whose duties only have to be performed on an occasional basis;

“whole-time employee” means an employee whose contract of employment provides –

(a)

that he is such an employee for the purposes of the Scheme; or

(b)

that his contractual hours are not less than the number of contractual hours for a person employed in that employment on a whole-time basis.

Regulation 4(7)(d) and (16)

SCHEDULE 2 MATTERS TO BE INCLUDED IN AN ADMISSION AGREEMENT IN CERTAIN CASES

1.  An admission agreement with a transferee admission body, shall contain provision for the matters set out in paragraphs 2 to 15.

2.  A reference to the date of the transfer arrangement.

3.  A requirement for the transferee admission body to pay to the Committee all contributions and payments due under the Regulations.

4.  A provision whereby the transferor Scheme employer may set off against any payments due to the transferee admission body an amount equal to any overdue employer and employee contributions and other payments (and interest payable under the Regulations) due from the transferee admission body as an employing authority.

5.  A reference to the indemnity or bond in the approved form.

6.  A warranty from the transferee admission body that such an indemnity or bond is in place.

7.  A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in the Regulations and in any employer’s guide published by the Committee and provided to the transferee admission body.

8.  An undertaking from the transferee admission body to the Committee that it shall not do anything to prejudice the status of the Scheme as an exempt approved scheme within the meaning given by section 592(1) of the Taxes Act.

9.  A representation and warranty from the transferee admission body to the Committee and to the transferor Scheme employer that all the transferee admission body’s employees or class of employees who are specified as members are employed in connection with the services or assets referred to in the transfer arrangement.

10.  An undertaking from the transferee admission body that it will promptly notify the Committee and the transferor Scheme employer in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy, in the interests of efficiency, an offence of a fraudulent character or due to grave misconduct.

11.  A requirement that the transferee admission body notifies the Committee and the transferor Scheme employer of each occasion on which it exercises discretion.

12.  A requirement that the transferee admission body notifies the Committee and the transferor Scheme employer of any matter which may affect, or is likely to affect, its participation in the Scheme and that it gives immediate notice of any actual or proposed change in its status which may give rise to a termination, including take-over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of its business or constitution.

13.  A minimum period of three months' notice to terminate the admission agreement but automatic termination, as required by regulation 4(9) in the event that the transferee admission body ceases to be such a body.

14.  A right for the Committee to terminate the agreement in the event of –

(a) the insolvency, winding up or liquidation of the transferee admission body;

(b) a breach by the transferee admission body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time);

(c) the withdrawal of approval by the Commissioners of Inland Revenue to the participation of the transferee admission body as a Scheme employer; or

(d) a failure by the transferee admission body to pay any sums due to the fund within a reasonable period after receipt of a notice from the Committee requiring it to do so.

15.  A requirement that the admission agreement in its final form shall be available for public inspection at the appropriate offices of the transferor Scheme employer and of the Committee (if different).

Regulation 9(3) and 125(1)

SCHEDULE 3 EXCLUDED MEMBERSHIP

TABLE

Description of membership	Purposes for which membership does not count	Relevant Notes
Notes: (1) For paragraph 2, a relevant member is a member who – (a) has entered the employment of a Scheme employer or former local authority after becoming entitled to payment of a pension benefit (other than a benefit under the National Insurance Act (Northern Ireland) 1966); or (b) has entered such employment after becoming entitled to a benefit under regulation 33 and has not made an election under regulation 34(1) (or, in a case where he was able to do so, gave notice under regulation D12(1)(c) of the 2000 Regulations (retention of entitlement to preserved benefits)), and the relevant benefit for a relevant member is the benefit mentioned in paragraph (a) or, as the case may be, paragraph (b). (2) Paragraph 2 applies to a maternity rights returner – (a) unless she has made an election under regulation 34(1); (b) in a case where she was able to give notice under regulation D12(1)(c) of the 2000 Regulations (retention of entitlement to preserved benefits), if she did so. (3) Any membership, which is excluded by paragraph 3 or 4(a) for calculating the amount of a death grant under regulation 41 in a case where a pension is reduced under regulation 44, is taken from the beginning of the period of membership. (4) A period which – (a) is the excess of any enhanced membership period counted under regulation 30 (ill-health) over the total membership otherwise; or (b) is counted by virtue of regulation F6(1)(a) of the 1992 Regulations (war service), counts as membership before attaining the age of 60 for calculating the amount of any benefit under regulations 18 to 36. (5) For paragraphs 3 and 4 the total membership includes any earlier period which was taken into account in the calculation of a retirement pension or an annual pension under the former regulations.
1.  A credited period which is counted as a period of membership under regulation 125(1) or was counted under any corresponding earlier provision and is counted under regulation 8(1)(d).	Calculating total membership for paragraph 2, 4, 5 or 6(1) of Schedule 4 (and see regulation 14(4)).
2.  Any period which has already been counted to determine whether a relevant member was entitled to the relevant benefit or has been or may be used to calculate its amount.	All regulations. (but see regulation 34(5)(b).	(1) and (2)
3.  So much of a Class A member’s total membership as exceeds 40 years.	Calculating the amount of any benefit under the Regulations.	(3) to (5)
4.  So much of the total membership of a Class B member or Class C member as – (a) is membership before he attains the age of 60 and exceeds 40 years, or (b) exceeds 45 years.	Calculating the amount of any benefit under the Regulations.	(3) to (5)
5.  So much of the membership of a member as respects whom an amount is recovered or retained under regulation 116 (misconduct obligations) as requires to be excluded to reduce the value referred to in regulation 116(2)(b) by that amount.	Calculating the amount of any benefit under regulations 18 to 36.

Regulations 8(2), 22(1), 25, 53(2), 55(5), 57(2), 61(5) and 99(2)

SCHEDULE 4 REVENUE RESTRICTIONS

Preliminary

1.—(1) In these Regulations –

• “Class A member” is a member who –

  (a)

  became a member on or after 1st June 1989 and is not to be treated as a Class B member or Class C member by virtue of a Revenue agreement; or

  (b)

  was a Class B member or a Class C member immediately before that date and is deemed to have become a Class A member by virtue of making a Class A election;

• “Class A election” means an election duly made by a Class B member or a Class C member by notice in writing to the Committee, before the date on which he ceases to be an active member for any reason (including death), that he wishes to be treated as a Class A member for the Scheme, as from 1st June 1989;

• “Class B member” is a member who –

  (a)

  became a member on or after 17th March 1987 and before 1st June 1989, or is to be treated as a Class B member by virtue of a Revenue agreement;

  (b)

  has continued to be a member since before 1st June 1989 and has not had a continuity break or satisfies one of the continuity conditions in relation to any period when he was not a member;

  (c)

  is not to be treated as a Class C member by virtue of a Revenue agreement;

  (d)

  has continued to be a member since before 1st June 1989 and has either not had a continuity break or satisfies one of the continuity conditions in relation to any period when he was not a member; and

  (e)

  is not deemed to have become a Class A member by virtue of making a Class A election;

• “Class C member” is a member who –

  (a)

  became a member before 17th March 1987 and has not had a continuity break or is to be treated as a Class C member by virtue of a Revenue agreement;

  (b)

  has continued to be a member since before 17th March 1987 or satisfies one of the continuity conditions in relation to any period when he was not a member;

  (c)

  has continued to be a member since before that date or satisfies one of the continuity conditions in relation to any period when he was not a member; and

  (d)

  is not deemed to have become a Class A member by virtue of a Class A election;

• “continuity break” is a change of employment from a Scheme employer (including an admission body) to a non-associated or transferee admission body (as defined in regulation 4(16)(c) and (g)) but does not include a change in the case of a person who was a member of the Scheme on 2nd April 2001;

• “continuity conditions”, in relation to a Class B member or a Class C member, are –

  (a)

  that his active membership ceased on his secondment or posting to another employer, at the time of the secondment or posting he had a definite expectation that he would become an active member again when it ended, and he again became an active member at the end of his secondment or posting;

  (b)

  that his active membership ceased by reason of his unpaid absence and he began paying contributions again under regulation 11 within one month of returning to work;

  (c)

  that the member’s active membership ceased wholly or partly because of her pregnancy or confinement and she began paying contributions again under that regulation within one month of returning to work as a maternity rights returner;

  (d)

  that the member’s active membership ceased otherwise than as mentioned in paragraph (a), (b) or (c) and within one month he rejoined the Scheme as an active member and began paying contributions again under that regulation;

• “existing rights member” means a member to whom regulation 5(2) of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990(37) applies;

• “relevant benefits” has the meaning given in section 612(1) of the Taxes Act 1988.

(2) A person has retained rights if he is entitled to or has received relevant benefits accrued under –

(a) an approved scheme, or a scheme in respect of which approval is sought;

(b) a relevant statutory scheme (as defined in section 611A of the Taxes Act);

(c) a fund to which section 608 of that Act applies (funds approved before 6th April 1980);

(d) a retirement benefits scheme (as defined in section 611 of that Act) accepted by the Commissioners of Inland Revenue as a scheme which corresponds as mentioned in section 596(2)(b) of that Act;

(e) a contract or trust scheme approved under section 620 of that Act or a personal pension scheme approved under section 631 of that Act; or

(f) transfer payments from pension schemes which are established outside the United Kingdom held in a type of arrangement mentioned in sub-paragraph (a), (b) or (e).

(3) But retained rights which are death benefits must be disregarded if –

(a) the member’s pay in the first year of his employment during which he is a member does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which that first year begins; or

(b) they do not exceed £2,500.

(4) Retained rights may be disregarded if, after 31st August 1991, the member started to purchase benefit or was given extra benefits under Part III, and

(a) where the member became a member on or after 14th March 1989, his remuneration in the first year of his employment during which he is a member does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which the first year begins; or

(b) where the member became a member before 14th March 1989, his remuneration in the first year in which he starts to accrue benefits under Part III does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which the first year begins.

(5) For sub-paragraph (2) benefits accrued under the Scheme must be disregarded unless they accrued in respect of a period of membership as respects which the person is treated as a deferred member or a pensioner member by virtue of regulation 34(5).

(6) In this Schedule “final remuneration” means, subject as provided in sub-paragraphs (7) to (10), the greater of –

(a) the highest total remuneration for any period of twelve complete and consecutive months (ending on the last day of the month) falling wholly within the five years preceding the relevant date; and

(b) the yearly average of the total emoluments from the employer which are assessable to income tax under Case I or II of Schedule E and upon which income tax liability has been determined in any three or more consecutive years ending at the end of any month not earlier than 10 years before the relevant date.

(7) Where final remuneration is calculated by reference to any period other than the last complete year ending on the relevant date, the member’s total remuneration or total emoluments may be increased for any year in proportion to any increase in the retail prices index from the last day of that period up to the relevant date, but for a Class C member this shall not apply to the calculation of the maximum retirement grant benefit unless the member’s aggregate retirement benefit is similarly increased beyond the maximum amount which could have been paid but for this provision and the similar provision in the definition of total remuneration and then only to the same extent.

(8) In respect of a Class B member, final remuneration for the purpose of the calculation of the retirement grant shall not exceed £100,000 or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act(38).

(9) In respect of any member whose remuneration in any tax year after 5th April 1987 used for the purpose of calculating retirement benefits has exceeded £100,000 (or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act) final remuneration shall not exceed the amount ascertained in accordance with sub-paragraph (6)(b) and sub-paragraph (6)(a) shall not apply unless the member chooses to adopt £100,000 (or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act).

(10) Remuneration and total emoluments shall not include any amounts which arise from the acquisition or disposal of shares or any interest in shares or from a right to acquire shares or anything in respect of which tax is chargeable by virtue of section 148 of the Taxes Act.

(11) In this Schedule –

(a) “relevant date” means the last day on which the member is an active member;

(b) “service” means service in local government employment;

(c) “total remuneration” in relation to any member means the aggregate of –

(i) actual amounts received for the twelve complete and consecutive months ending on or immediately prior to the date for which total remuneration is to be calculated (in this definition called the “calculation date”) which correspond to the fixed annual rates of salary for the time being in respect of that member’s service; and

(ii) that member’s average annual remuneration from the employer or otherwise in respect of service by the way of commissions, fluctuating emoluments or other benefits assessed to income tax under Schedule E (but not within sub-paragraph(i)) for the 36 complete and consecutive months ending on or immediately prior to the calculation date, but remuneration within the scope of this sub-paragraph for a year prior to that ending with the calculation date may be increased in proportion to any increase in the retail price index from the last day of that year up to the calculation date.

Class A members

2.—(1) This paragraph sets out limits on benefits in respect of local government employment payable to or in respect of a Class A member under these Regulations.

(2) The aggregate pension payable must not exceed one sixtieth of the member’s final remuneration multiplied by his years of service.

(3) Subject to sub-paragraph (2), the aggregate pension payable on retirement must not exceed the lesser of –

(a) one thirtieth of the member’s final remuneration multiplied by the member’s years of service or 20 years if less; and

(b) two-thirds of the member’s final remuneration less the value of any retained rights.

(4) But for a pension payable under regulation 29 (ill-health) the limit is the maximum retirement grant payable under sub-paragraph (6) or (7) assuming he had continued as an active member until his normal retirement date.

(5) The aggregate pension payable to a member who has elected under regulation 7 to leave the Scheme but remains in local government employment is the greater of –

(a) one sixtieth of the member’s final remuneration multiplied by his years of service prior to leaving the Scheme or 40 years if less; and

(b) the maximum pension that could have been payable at his normal retirement date under sub-paragraph (2) or (3) multiplied by the fraction of which –

(i) the numerator is the member’s years of service prior to leaving the Scheme or 40 years if less, and

(ii) the denominator is his total period of membership assuming he had remained an active member until his normal retirement date or 40 years if less.

This amount may be increased by 5 per cent. for each complete year, or in line with any increase in the retail prices index if greater, between the relevant date and the date on which the pension becomes payable.

(6) For sub-paragraphs (2), (3), (4) and (5) a member who is entitled to be paid a lump sum on retirement is treated as if he were entitled instead to be paid a pension on retirement of an annual amount equal to one twelfth of the lump sum.

(7) The aggregate benefit payable by way of lump sum must not exceed three eightieths of the member’s final remuneration, multiplied by his years of service.

(8) Subject to sub-paragraph (7), the aggregate benefit payable by way of a lump sum must not exceed the lesser of –

(a) three times the initial pension paid to the member under Part II and Part III excluding Chapter IV of Part III; and

(b) one and a half times the member’s final remuneration.

(9) But for a lump sum payable under regulation 29 the limit is the maximum retirement grant payable under sub-paragraph (7) or (8) assuming he had continued as an active member until his normal retirement date.

(10) The benefits payable by way of lump sum on the death of an active or deferred member must not exceed four times his final remuneration (disregarding the proviso in paragraph 1(9), paragraph 1(10) and paragraph 9(6)) less any lump sum death in service retained rights (other than a refund of the member’s contributions and any interest on such contributions) or, if greater £5000.

(11) The total service taken into account under sub-paragraphs (2), (4), (7) and (9) must not exceed 40 years.

(12) The aggregate pension in respect of local government employment for a surviving spouse or eligible child of a member (other than a pension provided by surrender of the member’s own pension under regulation 36) payable or prospectively payable to that surviving spouse or eligible child shall not exceed –

(a) in the case of an active or deferred member, an amount equal to two thirds of the amount which would be payable under sub-paragraph (4), ignoring any retained rights, if the member had retired under regulation 29 on the date of his death; and

(b) in the case of a pensioner member, an amount equal to two thirds of the amount payable at the date of death under sub-paragraph (2), (3), (4), (5) or (6), ignoring any retained rights.

(13) If pensions are payable to more than one of the member’s surviving spouse and eligible children, the aggregate of all such pensions shall not exceed –

(a) on the death of an active member or a deferred member the amount payable under sub-paragraph (4); and

(b) on the death of a pensioner member, the amount payable under sub-paragraph (2), (3), (4), (5) or (6).

(14) The final remuneration of a Class A member must not exceed the Revenue permitted maximum.

(15) But if a Class A member is an existing rights member sub-paragraph (14) does not apply for calculating any benefit under the Scheme in so far as it is calculated by reference to a credited period which is counted as a period of membership under regulation 125(1).

Class B members and Class C members

3.  Paragraphs 4 to 6 set out limits on benefits in respect of local government employment payable to or in respect of a Class B member or Class C member under these Regulations and paragraph 7 limits additional contributions in some circumstances.

4.—(1) Subject to sub-paragraph (2), the aggregate pensions payable on retirement at normal retirement date must not exceed the lesser of –

(a) for Class B members, one thirtieth of the member’s final remuneration multiplied by his years of service, or 20 years if less;

(b) for Class C members with less than 10 years service, the member’s final remuneration multiplied by the fraction specified below –

1 to 5 years	1/60th for each year
6 years	8/60ths
7 years	16/60ths
8 years	24/60ths
9 years	32/60ths

(c) two thirds of the member’s final remuneration less the value of any retained rights.

(2) But if it results in a higher sum than the maximum under sub-paragraph (1), the maximum aggregate pension on retirement at his normal retirement date is one sixtieth of the member’s final remuneration multiplied by his years of service or 40 years if less.

(3) But for a pension payable under regulation 29 the limit is the maximum pension payable under sub-paragraph (1) or (2), multiplied by the years of service the member would have had if he had continued as an active member until his normal retirement date.

(4) For a pension payable under regulation 28 or 33, if it results in a higher sum, for the maximum under sub-paragraph (2) there is substituted an amount equal to the amount that would be the maximum under sub-paragraph (2) if the member had remained an active member until his normal retirement date, multiplied by the fraction of which –

(a) the numerator is –

(i) his years of service, or

(ii) 40 years,

whichever is less, and

(b) the denominator is –

(i) his years of service, assuming he had remained an active member until his normal retirement date, or

(ii) 40 years,

whichever is less.

• This amount may be increased by 5 per cent. for each complete year, or in line with any increases in the retail prices index if greater, between the relevant date and the date on which the pension becomes payable.

(5) The aggregate pension payable on retirement after the member’s normal retirement date must not exceed –

(a) the amount payable under sub-paragraph (1) or (2) on the basis the actual retirement date was the member’s normal retirement date;

(b) the amount that could have been payable under sub-paragraph (1) or (2) on retirement at normal retirement date –

(i) with such an increase as an actuary appointed by the Committee considers appropriate in view of the period of delay in payment between his normal retirement date and the actual date the pension becomes payable, or

(ii) adjusted to reflect any increase in the general level of retail prices in Great Britain during that period;

(c) one sixtieth of the member’s final remuneration, multiplied by his increased period of membership,

whichever is the greatest.

(6) For sub-paragraphs (1) to (5) a member who is entitled to be paid a lump sum on retirement is treated as if he were entitled instead to be paid a pension on retirement of an annual amount equal to one twelfth of the lump sum.

(7) A member’s increased period of membership is the sum of –

(a) his total membership ending with his normal retirement date; and

(b) his total membership after his normal retirement date,

but must not exceed 45 years.

(8) The aggregate pension in respect of local government employment for a surviving spouse or eligible child of a member (other than a pension provided by surrender of the member’s own pension under regulation 36) payable or prospectively payable to that surviving spouse or eligible child shall not exceed –

(a) in the case of an active or deferred member, an amount equal to two thirds of the amount which would be payable under sub-paragraph (3), ignoring any retained rights, if the member had retired in circumstances entitling him to an ill-health pension and grant under regulation 29 on the date of his death; and

(b) in the case of a pensioner member, an amount equal to two thirds of the amount payable at the date of death under sub-paragraph (1), (2), (3), (4) or (5) ignoring any retained rights and increased in line with any subsequent increase in the retail prices index.

(9) If pensions are payable to more than one of the member’s surviving spouse and eligible children, the aggregate of all such pensions shall not exceed –

(a) on the death of an active member or deferred member the amount payable under sub-paragraph (3); and

(b) on the death of a pensioner member, the amount payable under sub-paragraph (1), (2), (3), (4) or (5).

5.—(1) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant for a Class B member on retirement at or before his normal retirement date must not exceed the lesser of –

(a) three times the initial pension paid to the member under Part II and Part III, excluding Chapter IV of Part III; and

(b) one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(2) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant on retirement at his normal retirement date for a Class C member must not exceed the lesser of –

(a) if the member has less than 20 years service, his final remuneration multiplied by the fraction set out in the table below –

Years of service to normal retirement date	80ths of final remuneration
1 to 8	3 for each year
9	30
10	36
11	42
12	48
13	54
14	63
15	72
16	81
17	90
18	99
19	108; and

(b) one and a half times the member’s final remuneration less the value of any retained rights in lump sum form.

(3) If it results in a higher sum than the maximum under sub-paragraph (1) or (2), the maximum aggregate retirement grant is three eightieths of the member’s final remuneration multiplied by each year of service or 40 years if less.

(4) But for a retirement grant payable under regulation 29, the limit is the maximum retirement grant payable under sub-paragraph (1), (2) or (3) assuming he continued as an active member until his normal retirement date.

(5) The aggregate benefit payable to a Class C member by way of retirement grant before his normal retirement date is the greater of –

(a) three eightieths of the member’s final remuneration multiplied by his years of service or 40 years if less; and

(b) the maximum lump sum that could have been payable on retirement at his normal retirement date under sub-paragraph (2) multiplied by the fraction of which –

(i) the numerator is the member’s actual period of local government employment prior to leaving the Scheme or 40 years if less, and

(ii) the denominator is his total period of membership assuming he had remained an active member until his normal retirement date or 40 years if less.

• This amount may be increased in line with any increase in the retail prices index between the relevant date and the date on which the benefit becomes payable.

(6) The aggregate benefit payable to a Class B member or a Class C member by way of a retirement grant on retirement after his normal retirement date must not exceed the greatest of –

(a) the amount payable under sub-paragraph (1), (2) or (3) on the basis that the actual retirement date was the member’s normal retirement date;

(b) the amount that could have been payable under sub-paragraph (1), (2) or (3) on retirement on his normal retirement date together with interest in respect of the period of the delay in payment between that date and the actual date of payment;

(c) three eightieths of the member’s final remuneration multiplied by his increased period of membership.

(7) A member’s increased period of membership is the aggregate of –

(a) his total membership ending with his normal retirement date; and

(b) his total period of membership after his normal retirement date

but must not exceed 45 years.

(8) The benefits payable by way of a lump sum on the death of an active or deferred member must not exceed four times his final remuneration (disregarding the proviso in paragraph 1(9), paragraph 1(10) and paragraph 9(6)) less any lump sum death in service retained rights (other than a refund of the member’s contributions and any interest on such contributions) or, if greater, £5,000.

6.—(1) The years of service taken into account under paragraph 4(1) and (2), and the total membership taken into account under paragraphs 4(7)(a) and 5(7)(a) must not exceed 40 years.

(2) Without prejudice to Schedule 3, a credited period which is counted as a period of membership under regulation 125(1) does not count in calculating years of service for sub-paragraph (1) or paragraph 4 or 5.

7.—(1) If adding the additional contributions payable by a Class B member or a Class C member under an agreement made by him before the commencement date (other than AVCs payable under Schedule C3 to the 2000 Regulations or any corresponding earlier provision) to those payable by him under regulations 11, 16 and 17 and any FSAVC scheme would cause the total of those contributions to exceed 15 per cent. of his remuneration, he may not pay that excess, but he may pay a lump sum representing it to the Scheme at a time permitted by the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990.

(2) That lump sum must be calculated in a way approved by the Government Actuary, who may issue guidance indicating how it is to be done.

Maximum additions under regulations 55 and 57

8.—(1) The maximum addition under regulation 55 or 57 is –

(a) the period (if any) by which the person’s potential period of membership falls short of 40 years; or

(b) his potential period of membership,

whichever is the shorter.

(2) His potential period of membership is the period he would be entitled to count as a period of membership in relation to his local government employment, assuming –

(a) if he is not an active member on the date of the resolution, that he became such a member on that date; and

(b) that he continued as an active member until his normal retirement date.

(3) If –

(a) the resolution under regulation 55 relates to a person who on the date of the resolution has retained rights; or

(b) on the date of the election under regulation 57 the member has retained rights,

the period of 40 years mentioned in sub-paragraph (1) must be reduced by the appropriate period.

(4) The appropriate period is such period as is certified by an actuary appointed by the Committee to be sufficient to secure –

(a) that the aggregate of –

(i) the relevant income benefits, and

(ii) the pension equivalent of the relevant capital benefits,

will not exceed two-thirds of his final remuneration; and

(b) that his retirement grant or , in the case of a Class C member, the aggregate of the retirement grant attributable to his period of membership before his normal retirement date and any retained rights in lump sum form, will not exceed his final remuneration by more than 50 per cent.

(5) In this regulation –

• “pension equivalent” has the meaning given in regulation 5(5)(b) of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993(39);

• “the relevant income benefits”, in relation to a member, means the aggregate annual amount of –

  (a)

  the actuarial value, expressed as an annuity payable to him, of the retained rights which are pension benefits; and

  (b)

  the part of his retirement pension attributable to his period of membership before his normal retirement date; and

• “the relevant capital benefits”, in relation to a member, means the aggregate amount of –

  (a)

  his retirement grant; and

  (b)

  any lump sum comprised in the relevant benefits which are pension benefits.

(6) For the purposes of sub-paragraphs (4) and (5) –

(a) it is to be assumed that the person will, until his normal retirement date, continue in the same employment and on the same terms and conditions (including, in particular, his scale of pay) as at the date of the resolution or, as the case may be, the election (assuming, if he has not entered the employment of the authority at that date, that he had done so on that date on the scale of pay at which the employment was offered to him);

(b) any period of membership on or after that date is to be disregarded; and

(c) regard is to be had to any advice from the Commissioners of Inland Revenue as to the calculation of the value of the earlier benefits.

Controlling directors

9.—(1) This paragraph applies to any member who is a controlling director, as defined in paragraph 5(5) of Schedule 23 to the Taxes Act.

(2) Regulation 23(1)(a) does not apply to a controlling director.

(3) For determining whether a controlling director who is a Class A member has retained rights, “approved scheme” includes –

(a) a retirement annuity contract or trust scheme approved under Chapter III of Part XIV of the Taxes Act; or

(b) any personal pension scheme approved under Chapter IV of that Part,

so far as it provides benefits secured by contributions in respect of his service with his Scheme employer or an associated employer.

(4) An employer is associated with another if one is controlled by the other or both are controlled by a third party; and control must be construed in accordance with section 840 of the Taxes Act or, in the case of a close company (as defined in section 416 of that Act) in accordance with that section 416.

(5) Paragraph 1(3)(a) and 1(4) do not apply to controlling directors.

(6) Final remuneration shall be ascertained in accordance with paragraph 1(6)(b) and paragraph 1(6)(a) shall not apply.

Overriding provisions

10.  Where by virtue of the Taxes Act or any later enactment schemes which were approved schemes before a certain date, have effect as if their rules restricted the total benefits payable under them, the rules of the Scheme have effect subject to those restrictions, notwithstanding any amendments of them by virtue of these or any earlier Regulations after the date of that Act or enactment, and in so far as those restrictions would permit those total benefits to be greater than is otherwise permitted under the Scheme, those restrictions shall prevail.

Regulation 111(2) and (3)

SCHEDULE 5 MIS-SOLD PENSIONS

Prescribed persons

1.  For the purposes of regulation 111(2) (prescribed persons to whom information may be provided) the persons are –

(a) a person who is or has been an authorised person within the meaning of the Financial Services and Markets Act 2000(40) (“the 2000 Act”) (“an authorised person”);

(b) an appointed representative within the meaning of section 39 of the 2000 Act (“an appointed representative”);

(c) a recognised self-regulating organisation within the meaning of the 2000 Act;

(d) a designated professional body within the meaning of the 2000 Act;

(e) the Financial Services Authority having the functions conferred on it by or under the 2000 Act;

(f) the Investors Compensation Scheme Limited;

(g) a professional indemnity insurer of an authorised person or an appointed representative;

(h) the Chartered Accountants Compensation Scheme Limited;

(i) the Solicitors Indemnity Fund Limited;

(j) a person or body arbitrating or adjudicating in, or investigating or considering, a complaint brought by such an individual as is mentioned in Article 164 of the Pensions Order against an authorised person or an appointed representative;

(k) A person or body appointed to act on behalf of any of the above.

2.  For the purposes of regulation 111(3) (persons on whom fees may be imposed) the persons are any person listed in sub-paragraphs (a) to (d) and (f) to (i) of paragraph 1 and any person or body appointed to act on behalf of any of those persons.

Regulation 76(3) and 83(1) to (4)

SCHEDULE 6 THE COMMITTEE

PART I CONSTITUTION OF THE COMMITTEE

1.  The Committee shall consist of a chairman appointed by the Minister and the following other members –

(a) five members appointed by the Minister after consultation with such organisations as may be recognised by him as representative of Scheme employers; and

(b) five members appointed by the Minister after consultation with such organisations as may be recognised by him as representative of employees affected by the Regulations.

2.—(1) Subject to the provisions of sub-paragraph (2) and paragraph 5, the term of office of a member of the Committee shall be four years from the date of his appointment.

(2) The Minister may extend the term of office of a member of the Committee by a maximum period of 18 months.

3.  The quorum of the Committee shall be six, or such other number as the Committee may, with the approval of the Department, determine.

4.  The Committee may act notwithstanding any vacancy in its number so long as the number of vacancies does not exceed the number of remaining members.

5.  A casual vacancy occurring in the membership of the Committee shall be filled by the Minister after consultation with the Committee and a person so appointed shall hold office for the residue of the term of the member in whose place he is so appointed.

6.  A member of the Committee may resign his membership by giving notice in writing, signed by him, to the Minister.

7.  Where any member of the Committee is absent from the meetings thereof for more than six months consecutively (except for a reason approved by the Minister) or becomes bankrupt or makes a composition with his creditors or is convicted of an indictable offence, the Committee shall forthwith by resolution declare the office to be vacant and shall notify that fact in such manner as it thinks fit, and thereupon the office shall become vacant.

8.  A member of the Committee on vacating his office at the expiration of the term thereof shall (subject to the foregoing provisions of this Schedule) be eligible for re-appointment.

9.  No defect in the appointment of any person acting as a member of the Committee shall vitiate any proceedings of the Committee in which he has taken part.

PART II POWERS OF THE COMMITTEE

10.  The Committee, which shall be a body corporate with perpetual succession and a common seal, and with capacity to acquire and hold land, shall subject to paragraphs 2 to 8, perform such functions as may be assigned to it by these Regulations.

11.  The Committee may appoint a sub-committee or an officer employed by the Committee to discharge, with or without restrictions or conditions as the Committee thinks fit, any of the functions assigned to the Committee by the Local Government Pension Scheme (Management and Investment of Funds) Regulations (Northern Ireland) 2000(41).

12.  The number of members of a sub-committee appointed under paragraph 11, and their term of office shall be fixed by the Committee or in the case of an officer his term of office shall be fixed by the Committee.

13.  A sub-committee appointed under paragraph 11 shall consist of members of the Committee and may include officers of the Committee appointed under paragraphs 20 and 21.

14.  A sub-committee or an officer appointed under paragraph 11 shall report to the Committee at each of its meetings setting out all actions taken under such appointment.

15.  The Committee may revoke any appointment made under paragraph 11, or any restriction or condition imposed under paragraph 11 or anything fixed under paragraph 12.

16.  Any arrangements made by the Committee for the discharge of the functions specified in the Local Government Pension Scheme (Management and Investment of Funds) Regulations (Northern Ireland) 2000 by a sub-committee or officer shall not prevent the Committee from exercising those functions.

17.  The seal of the Committee shall be authenticated by the signatures of two of the members and of the secretary or some other person authorised by the Committee to act in that behalf.

18.  Every document purporting to be an instrument issued by the Committee and to be sealed with the seal of the Committee authenticated in the manner provided by paragraph 17, or to be signed by the secretary or any person authorised to act in that behalf, shall be received in evidence and, unless the contrary is proved, shall be deemed to be such instrument without further proof.

19.  Subject to the provisions of these Regulations, the Committee shall have power to regulate its own procedures.

20.  The Committee may with the approval of the Department appoint persons to hold any of the following offices –

• Secretary to the Committee;

• Deputy Secretary to the Committee; and

• such other offices under the Committee as the Department may designate in writing.

21.  In addition to the appointments mentioned in paragraph 20, the Committee may appoint such other officers as may be required for the performance of the functions of the Committee.

22.—(1) The Committee may make arrangements with any Scheme employer, admission body, Government department, district council or area board, for the exercise of any pension function by the Committee on behalf of any Scheme employer, admission body, Government department, district council, or area board on such terms as may be provided for by the arrangements.

(2) For the purposes of this paragraph, “area board” means a Health and Social Services Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972(42).

23.  Section 18(2) of the Interpretation Act (Northern Ireland) 1954(43) shall apply to any appointment made by virtue of paragraph 20 or 21 as if each of these paragraphs was an enactment referred to in that section but a person shall not be removed from any office mentioned in paragraph 20 without the written concurrence of the Department.

PART III EXPENSES AND ALLOWANCES PAYABLE BY THE COMMITTEE

24.  The expenses of the Committee, including payments in respect of reasonable out-of-pocket expenses incurred by the members in connection with the discharge of their duties as such, shall be defrayed out of the fund.

25.  The Committee may, in addition to any payment made under paragraph 24, pay to the Chairman of the Committee such allowance as it considers to be reasonable.

26.  The Committee may in addition to any payments made under paragraph 24 or 25, pay to a member of the Committee an attendance allowance in connection with service as a member of the Committee, but such allowance shall not exceed the amount of attendance allowance as the Department may from time to time determine under section 36 of the Local Government Act (Northern Ireland) 1972(44).

27.  A member of the Committee entitled to an attendance allowance under paragraph 26 shall make a claim for such allowance in such form as the Committee may direct to the Secretary of the Committee and shall make a declaration that –

(a) he has not or will not make any claim for allowances from any other body in respect of the approved duty to which the claim refers;

(b) the amounts claimed are strictly in accordance with the provisions of this Part; and

(c) he has necessarily incurred or suffered the loss of earnings or additional expenses claimed for the purpose of enabling him to perform an approved duty.

28.  A claim for an attendance allowance shall be submitted to the Committee within four months, or such longer period as the Committee may in exceptional circumstances allow, from the date of the approved duty in respect of which the allowance is claimed.

29.  In this Part –

“approved duty” means attendance at a meeting of the Committee or of any sub-committee thereof or the doing of anything approved by the Committee for the purpose of, or in connection with, the discharge of the functions of the Committee; and

“attendance allowance” means a payment in respect of any loss of earnings necessarily suffered or any additional expenses (other than expenses on account of travelling or subsistence) necessarily suffered or incurred by a member for the purpose of enabling him to perform any approved duty.

PART IV CONTENTS OF FINANCIAL STATEMENTS AUDITED BY THE LOCAL GOVERNMENT AUDITOR

30.  An account of the financial additions to, withdrawals from and changes in value of the fund of the Scheme during the Scheme year to which the accounts relate.

31.—(1) A statement, as at the end of the Scheme year to which the accounts relate, of the assets at market value, or the Committee’s estimate thereof where market value is not readily ascertainable, and liabilities of the Scheme, other than liabilities to pay pensions and benefits after the end of that Scheme year –

(a) giving, in the case of any assets which are stated at an estimate of their market value, the reason why the valuation is an estimate;

(b) showing the distribution of the investments and other assets of the Scheme between each of the following categories (where none of the investments falls within a particular category, that fact is not required to be stated), namely –

(i) policies of insurance;

(ii) public sector fixed interest investments and separately showing quoted securities and unquoted securities;

(iii) other fixed interest investments and separately showing quoted securities and unquoted securities;

(iv) index-linked securities and separately showing quoted securities and unquoted securities;

(v) equities (including convertible shares) and separately showing quoted equities and unquoted equities;

(vi) property (which in this paragraph and in paragraphs (vii) and (ix) means any right or interest in freehold or leasehold land or buildings);

(vii) unit trusts invested in property;

(viii) other unit trusts;

(ix) managed funds (other than unit trusts) invested in property;

(x) other managed funds (not being unit trusts);

(xi) loans (whether or not secured by mortgages);

(xii) cash deposits and cash in hand;

(xiii) investments and other assets not included in paragraphs (i) to (xii); and

(c) showing separately, in the case of investments in each category, investments in the United Kingdom and investments outside the United Kingdom, and in the case of investments mentioned in head (b)(vii) to (x) investments where the company operating the unit trust or managed funds is, and investments where it is not, a company registered in the United Kingdom.

(2) Where the assets include policies of insurance which are specifically allocated to the provision of benefits for, and which provide all the benefits payable under the Scheme to, particular members or other persons in respect of particular members or both, those policies must be included in the statement and there must be a note of the existence of such policies but that entry need not include their market value or an estimate.

(3) Where the assets –

(a) are invested only for the purposes of securing additional money purchase benefits derived from voluntary contributions to which section 107 of the Pension Schemes (Northern Ireland) Act 1993(45) applies; and

(b) are specifically allocated to the provision of additional benefits for particular members (or both),

a note that heads (a) and (b) of sub-paragraph (1) apply must be included in the statement, but that entry need not include the market value or an estimate of value of those assets.

32.  Quoted securities should be valued at mid-market value.

33.  Where any assets or liabilities are denominated in currencies other than sterling, a translation of those assets into sterling and an explanation of the basis on which they have been translated.

34.  Particulars of any investment (other than in United Kingdom Government securities) in which more than 5 per cent. of the total value of the net assets of the Scheme is invested, and if any such investment is a policy of insurance, a statement of its main characteristics.

35.  Particulars of any employer-related investments, within the meaning of Article 40 of the Pensions Order (restriction on employer-related investments) including those in excess of the restriction prescribed in regulations made under that Article.

36.  In respect of every amount shown in the accounts other than the amounts referred to in paragraph 37, a statement of the corresponding amount for the Scheme year previous to the one to which the accounts relate.

37.  The total amount of the purchases and the total amount of the sales of investments during the Scheme year to which the accounts relate.

38.  A statement whether the accounts have been prepared in accordance with the Statement of Recommended Practice, the guidelines “Financial Reports of Pension Schemes” published by the Pensions Research Accountants Group(46) or another organisation approved for this purpose by the Accounting Standards Board(47), current at the end of the Scheme year to which the accounts relate and, if not, an indication of where there are any material departures from those guidelines.

(1)

1937 c. 68

(2)

1937 c. 69

(3)

1950 c. 10 (N.I.)

(4)

1953 c. 25

(5)

1959 c. 21 (N.I.)

(6)

1975 c. 15

(7)

S.R. & O. (N.I.) 1950 No. 103 (p. 423)

(8)

S.R. & O. (N.I.) 1962 No. 210

(9)

S.R. 1981 No. 96; amended by other instruments listed in Schedule 21 to the Local Government (Superannuation) Regulations (Northern Ireland) 1992 (S.R. 1992 No. 547)

(10)

S.R. 1992 No. 547; amended by other instruments listed in Schedule M3 to the Local Government Pension Scheme Regulations (Northern Ireland) 2000 (S.R. 2000 No. 177)

(11)

1999 c. 30

(12)

S.I. 1999/3147 (N.I. 11)

(13)

S.R. 2000 No. 177 as amended by S.R. 2001 No. 61, S.R. 2001 No. 63, S.R. 2001 No. 64 and S.R. 2002 No. 115

(14)

S.I. 1995/3213 (N.I. 22)

(15)

1993 c. 49

(16)

2000 c. 8

(17)

S.I. 1996/1141 (N.I. 6)

(18)

1959 c. 15 (N.I.)

(19)

Section 5A was inserted by 1951 c. 9, section 2

(20)

1986 c. 53

(21)

1966 c. 6 (N.I.)

(22)

1965 c. 51; 1966 c. 6; 1967 c. 73; 1969 c. 4; 1969 c. 44; 1971 c. 50; 1972 c. 57; 1974 c. 14

(23)

1972 c. 11

(24)

1972 c. 9 (N.I.)

(25)

1971 c. 35 (N.I.)

(26)

S.I.1972/1073 (N.I. 10)

(27)

S.I. 1976/2147 (N.I. 28)

(28)

S.I 1996/1919 (N.I. 16); section 70C was inserted by the Employment Relations (Northern Ireland) Order 1999 (S.I. 1999 /2790 (N.I. 9) paragraph 3, Part III of Schedule 4

(29)

S.R. 1999 No. 471

(30)

S.I. 1986/1032 (N.I. 6); Articles 4 and 4A were substituted for Article 4 by Article 62(1) of S.I. 1990/1504 (N.I. 10)

(31)

1996 c. 14

(32)

S.I. 1953/197

(33)

1992 c. 7

(34)

1988 c. 1

(35)

S.R. 2002 No. 353

(36)

S.I. 1992/807 (N.I. 5)

(37)

S.I. 1990/2101

(38)

1988 c. 1; the provisions of Schedule 6 to the Finance Act 1989 (c. 26) which amend section 590(3) of the Taxes Act do not have effect as regards a person who became a member of the Scheme before 1st June 1989

(39)

S.I. 1993/3016

(40)

2000 c. 8

(41)

S.R. 2000 No. 178 as amended by S.R. 2001 No. 61 and by S.R. 2001 No. 62

(42)

S.I. 1972/1265 (N.I. 14)

(43)

1954 c. 33 (N.I.)

(44)

1972 c. 9 (N.I.) as amended by the Financial Provisions (Northern Ireland) Order 1978 (S.I. 1978/1041 (N.I. 11)) and S.R. 1999 No. 449

(45)

1993 c. 49

(46)

Copies may be purchased from Accountancy Books, P.O. Box 620, Central Milton Keynes MK9 25X

(47)

See S.R. 1990 No. 338