Local Government Pension Scheme (Amendment No. 2) Regulations (Northern Ireland) 2010

Amendment of the Local Government Pension Scheme (Administration) Regulations (Northern Ireland) 2009

35.  In regulation 33 (special circumstances where revised actuarial valuations and certificates must be obtained)—

(a) for paragraph (2) substitute—

“(2) Where a contributing body ceases to employ active members or an admission agreement otherwise ceases to have effect, then unless agreed under paragraph (7) the Committee must obtain—

(a) an actuarial valuation on an appropriate basis determined by the fund’s actuary as agreed with the Committee as at the date on which the contributing body ceases to employ active members or (if applicable) its admission agreement otherwise ceases to have effect, of the liabilities of the fund in respect of that contributing body (“the outgoing contributing body”);

(b) a revision of any rates and adjustments certificate provided under regulation 31(4), showing the contributions due from or surplus due to the outgoing contributing body;

(c) such revised contributions due to the fund or surplus due to the outgoing contributing body from the fund will be paid as a lump sum within 1 month of the date of the rates and adjustments certificate or such longer period as the Committee and the outgoing contributing body agree; and

(d) the liabilities under sub-paragraph (a), include but are not limited to, liabilities in respect of current and former employees of the outgoing contributing body, liabilities which the outgoing contributing body has accepted, and liabilities which the outgoing contributing body has become responsible for by the operation of a scheme of reorganisation which has been created and approved in accordance with legislation, by the operation of law, because of the provisions of any legislation, or by an order of the Court.”;

(b) in paragraph (3)—

(i) for “outgoing admission body” substitute “outgoing contributing body”;

(ii) for sub-paragraph (a) substitute—

“(a) in the case where that outgoing contributing body is a transferee admission body within regulation 5(2)(a) or 5(2)(b) (employees of transferee admission bodies), the revised contributions due from the employing authority, or as the case may be, guarantor in relation to that outgoing contributing body; and”;

(c) for paragraphs (4) and (5) substitute—

“(4) The Committee may obtain from the fund actuary a certificate specifying the percentage or amount by which, in the fund actuary’s opinion, that contributing body’s—

(a) contribution at the common rate of employer’s contribution should be adjusted; or

(b) any prior individual adjustment should be increased or decreased,

with a view to providing that the value of the assets of the fund in respect of the liabilities of that contributing body is neither materially more nor materially less than the anticipated share of the liabilities of the fund in respect of that contributing body at the date it ceases to employ active members or its admission agreement ceases to have effect (“the calculation date”).

(4A) The Committee may determine a nominated calculation date, where it reasonably believes that a contributing body is to cease to employ active members in the near future but the actual calculation date is not known, and such date will be the calculation date in substitution for the actual date on which the contributing body ceases to employ active members or its admission agreement otherwise ceases to have effect.

(4B) Where paragraph (4A) applies, the Committee—

(a) will assess on or as soon as practicable after the date on which the contributing body actually ceases to employ active members or its admission agreement otherwise ceases to have effect whether it should obtain a further revision of the rates and adjustments certificate under regulation 33(2)(b) as at that date; and

(b) may subsequently ask the fund actuary to revise or withdraw and reissue the rates and adjustments certificate if it considers it is reasonable to do so.

(4C) Where a revised rates and adjustments certificate is obtained under paragraph (4B)(a), it will take account of any contributions already received from the contributing body further to the rates and adjustments certificate obtained under paragraph (4A).

(5) Paragraph (6) applies where—

(a) the Committee agrees with an employing authority that the employing authority will pay increased contributions under regulation 35(4) (employer’s payment following decision to increase membership or award additional pension);

(b) it appears to the Committee that the amount of liabilities arising or likely to arise in respect of members in employment with an employing authority differs from the amount specified in, or likely as a result of, the assumptions stated for that employing authority in the actuary’s report by virtue of regulation 31(1); or

(c) an admission body has previously ceased to employ any active members and no actuarial valuation or rates and adjustments certificate has been obtained by the Committee in accordance with paragraph (7) but where that admission agreement still allows it to employ active members and it once again starts to employ active members.”;

(d) in paragraph (6) for “employing authority” substitute “contributing body”; and

(e) after paragraph (6) insert—

“(7) Where a contributing body ceases to employ any active members of the Scheme the Committee may, with the approval of the Department, defer obtaining an actuarial valuation and a revision of the rates and adjustments certificate and determine the date as at which the actuarial valuation and a revision of the rates and adjustments certificate will be obtained and the dates from which it will be effective and at which it will be reviewed.

(8) During any period of deferral under paragraph (7) the contributing body will continue to pay contributions under regulation 34 in respect of the liabilities of the fund which are attributable to it.

(9) The Committee may, with the approval of the Department, if it thinks necessary to protect the solvency of the fund or prevent liabilities in relation to one contributing body falling onto other contributing bodies, require active members employed by a particular contributing body to cease future accrual with effect from a date specified by the Committee so that the contributing body no longer employs active members.”.