The Local Government Pension Scheme (Amendment) Regulations (Northern Ireland) 2023

Citation, commencement and retrospection

1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) Regulations (Northern Ireland) 2023 and except as provided for in paragraph (2) shall come into operation on 12th June 2023.

(2) These Regulations shall come into effect from 1st April 2023.

Amendment of the Local Government Pension Scheme Regulations (Northern Ireland) 2014

2.  The Local Government Pension Scheme Regulations (Northern Ireland) 2014 shall be amended in accordance with regulations 3 to 8.

Revaluation date: revaluation adjustments, members

3.—(1) In regulation 25 (active member’s pension accounts)—

(a) in paragraph (2)—

(i) at the end of sub-paragraph (d) insert “plus”;

(ii) after sub-paragraph (d) insert—

“(e) for any Scheme year beginning with the Scheme year that starts on 1st April 2023, the revaluation adjustment which was applied on the revaluation date falling within that Scheme year;”; and

(iii) omit the words from “and the revaluation adjustment” to the end.

(b) in paragraph (3) omit “revalued”; and

(c) after paragraph (3) insert—

“(3A) Each Scheme year, beginning with the Scheme year that starts on 1st April 2023, the revaluation adjustment must be applied to the balance mentioned at paragraph (3) on the revaluation date, in accordance with actuarial guidance issued by the Department.”.

(2) In regulation 26 (deferred member’s pension account and deferred refund account)—

(a) after paragraph (4) insert—

“(4A) For the purposes of paragraph (4)(a), where a member’s last day of active membership falls in the period beginning with 6th April and ending with 31st March in any Scheme year, the opening balance includes the revaluation adjustment which was applied on the revaluation date falling within that member’s last active Scheme year.

(4B) If a member’s last day of active membership falls in the period beginning with 1st April and ending with 5th April in any Scheme year, on the revaluation date falling within the Scheme year during which the member was last active the revaluation adjustment must be applied to the opening balance mentioned at paragraph (4)(a) in accordance with actuarial guidance issued by the Department.”;

(b) in paragraph (7), for “at the beginning of” substitute “on the revaluation date in”; and

(c) for paragraph (8) substitute—

“(8) The balance calculated under paragraph (4) including any adjustment made in accordance with paragraph (4B), is the opening balance for the following Scheme year and having applied the revaluation adjustment to the balance in accordance with paragraph (7) thereafter, subject to paragraph (9), the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(8A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(3) In regulation 27 (retirement pension accounts: active members)—

(a) in paragraph (3), after “regulation 26(4) (deferred member’s pension account and deferred refund account)” insert “and where applicable, regulation 26(4A)”;

(b) after paragraph (4), insert—

“(4A) If a member’s last day of active membership falls in the period beginning with 1st April and ending with 5th April in any Scheme year, on the revaluation date falling within the Scheme year during which the member was last active the revaluation adjustment must be applied to the opening balance for the member’s last active Scheme year and takes effect from the date the member became entitled to immediate payment, in accordance with actuarial guidance issued by the Department.”;

(c) in paragraph (6)—

(i) for “at the beginning of” substitute “on the revaluation date in”;

(ii) after “pensioner member” in the second place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the member became a pensioner member”;

(d) for paragraph (7), substitute—

“(7) The balance calculated under paragraph (2) including any adjustment made in accordance with paragraph (4A), is the opening balance for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (6), thereafter, the balance is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(7A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”;

(4) In regulation 29 (flexible retirement pension accounts)—

(a) in paragraph (5)—

(i) for “at the beginning of” substitute “on the revaluation date in”;

(ii) after “retirement pension” in the third place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the member became entitled to that pension”;

(b) for paragraph (6) substitute—

“(6) The balance calculated under paragraph (2), is the opening balance for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (5), thereafter, the balance in the account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(7) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

Survivor benefits: revaluation adjustments, survivor benefits for partners and children of active members

4.—(1) In regulation 41 (survivor benefits: partners of active members)—

(a) after paragraph (4)(a) insert—

“(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1st April and ending with 5th April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date;”;

(b) in paragraph (5)—

(i) for “at the beginning of” substitute “on the revaluation date in”;

(ii) after “was opened,” in the second place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s account was opened,”;

(c) for paragraph (6) substitute—

“(6) The balance calculated under paragraph (3) is the opening balance of the survivor member’s pension account for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (5), thereafter, the balance in that survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(6A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(2) In regulation 43 (survivor benefits: children of active members)—

(a) in paragraph (4)—

(i) for “at the beginning of” substitute “on the revaluation date in”;

(ii) for “valuation” substitute “revaluation”; and

(iii) after “was opened,” in the second place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s account was opened,”; and

(b) for paragraph (5), substitute—

“(5) The balance calculated under regulation 44(2) (survivor benefits: children of active member where pension is payable to partner of an active member) or 45(2) (survivor benefits: children of active member where no pension is payable to partner of an active member) is the opening balance of the survivor member’s pension account for the following Scheme year and, having applied the revaluation adjustment to the balance in accordance with paragraph (4), thereafter, the balance in that survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(5A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(3) In regulation 44 (survivor benefits: children of active members where pension is payable to partner of an active member) after paragraphs (3)(a) and (4)(a), in each place insert—

“(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1st April and ending with 5th April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date;”.

(4) In regulation 45 (survivor benefits: children of active members where no pension is payable to partner of an active member) after paragraphs (3)(a) and (4)(a), in each place insert—

“(aa) for the purposes of sub-paragraph (a), if the member died in the period beginning with 1st April and ending with 5th April in any Scheme year, the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date;”.

Survivor benefits: revaluation adjustments, death grants: deferred and pensioner credit members

5.  In regulation 46 (death grants: deferred members and pension credit members)—

(a) after paragraph (3) insert—

“(3A) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”; and

(b) in paragraph (5), at the end insert “and paragraph (3A) does not apply”.

Revaluation date: revaluation adjustments, survivor benefits for partners and children of deferred members

6.—(1) In regulation 47 (survivor benefits: partners of deferred members)—

(a) after paragraph (4), insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”;

(b) in paragraph (5)—

(i) for “at the beginning of” substitute “on the revaluation date in”;

(ii) after “was opened,” in the second place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s pension account was opened,”;

(c) for paragraph 6, substitute—

“(6) Where—

(a) paragraph (5) applies, the balance calculated under paragraph (3) is the opening balance of the survivor member’s pension account for the following Scheme year, and the revaluation adjustment is applied to the balance in accordance with paragraph (5);

(b) paragraph (5) does not apply, the balance under paragraph (3) is the opening balance of the survivor member’s pension account for the following Scheme year,

and, thereafter, the balance in the survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(6A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(2) In regulation 48 (survivor benefits: children of deferred members)—

(a) in paragraph (4)—

(i) for “at the beginning of” substitute “on the revaluation date in”; and

(ii) after “was opened,” in the second place where it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the survivor member’s pension account was opened,”;

(b) for paragraph (5), substitute—

“(5) Where—

(a) paragraph (4) applies, the balance calculated under regulation 49(2) (survivor benefits: children of deferred member where pension is payable to partner of deferred member) or 50(2) (survivor benefits: children of deferred member where no pension is payable to partner of deferred member) is the opening balance of the survivor member’s pension account for the following Scheme year and the revaluation adjustment is applied to the balance in accordance with paragraph (4);

(b) paragraph (4) does not apply, the balance under regulation (49)(2) or 50(2), as the case may be, is the opening balance of the survivor member’s pension account for the following Scheme year,

and, thereafter, the balance in the survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(5A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(3) In regulation 49 (survivor benefits: children of deferred member where pension is payable to partner of deferred member)—

(a) After paragraph (3) insert—

“(3A) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”; and

(b) After paragraph (4) insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”.

(4) In regulation 50 (survivor benefits: children of deferred member where no pension is payable to partner of deferred member)—

(a) After paragraph (3) insert—

“(3A) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member become a deferred member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”;

(b) After paragraph (4) insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member and became a deferred member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”.

Survivor benefits: revaluation adjustments, death grants and survivor benefits: pensioner members

7.—(1) In regulation 51 (death grants: pensioner members)(1) after paragraph (4)—

“(6) For the purposes of a death grant payable in accordance with paragraph (3) (but not for the purposes of a death grant derived from a pension credit payable in accordance with paragraph (4)), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension the member would have been entitled to receive as retirement pension at the date of death is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”.

(2) In regulation 52 (survivor benefits: partners of pensioner members)—

(a) after paragraph (4), insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”;

(b) in paragraph (5)—

(i) for “at the beginning of” substitute “on the revaluation date in”; and

(ii) after “was opened,” in the second place that it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the member became a pensioner member,”;

(c) for paragraph (6), substitute—

“(6) Where—

(a) paragraph (5) applies, the balance calculated under paragraph (3) is the opening balance of the survivor member’s pension account for the following Scheme year, and the revaluation adjustment is applied to the balance in accordance with paragraph (5);

(b) paragraph (5) does not apply, the balance under paragraph (3) is the opening balance of the survivor member’s pension account for the following Scheme year,

and, thereafter, the balance in the survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(6A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(3) In regulation 53 (survivor benefits: children of pensioner members)—

(a) in paragraph (4)—

(i) for “at the beginning of” substitute “on the revaluation date in”; and

(ii) after “was opened,” in the second place it occurs, insert “and takes effect from the start of the Scheme year following the Scheme year in which the member became a pensioner member,”;

(b) for paragraph (5), substitute—

“(5) Where—

(a) paragraph (4) applies, the balance calculated under regulation 54(2) (survivor benefits: children of pensioner member where pension is payable to partner of pensioner member) or 55(2) (survivor benefits: children of pensioner member where no pension is payable to partner of pensioner member) is the opening balance of the survivor member’s pension account for the following Scheme year, and the revaluation adjustment is applied to the balance in accordance with paragraph (4);

(b) paragraph (4) does not apply, the balance under paragraph (54)(2) or 55(2), as the case may be, is the opening balance of the survivor member’s pension account for the following Scheme year,

and, thereafter, the balance in the survivor member’s pension account is adjusted each year by the index rate adjustment from the date that an increase would apply if that balance were a pension in payment to which the 1971 Act applied.

(5A) Where an index rate adjustment is due to be made on a revaluation date, any such adjustment must be made immediately after the revaluation adjustment is made.”.

(4) In regulation 54 (survivor benefits: children of pensioner members where pension is payable to partner of pensioner member)—

(a) after paragraph (3) insert—

“(3A) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”;

(b) after paragraph (4) insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”.

(5) In regulation 55 (survivor benefits: children of pensioner members where no pension is payable to partner of pensioner member)—

(a) after paragraph (3) insert—

“(3A) For the purposes of paragraph (3), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”;

(b) after paragraph (4) insert—

“(4A) For the purposes of paragraph (4), if the member—

(a) died in the period beginning with 1st April and ending with 5th April in the Scheme year following the Scheme year in which the member ceased to be an active member; or

(b) ceased to be an active member in the period beginning with 1st April and ending with 5th April in a Scheme year and subsequently died within that same period,

the pension is deemed to include the revaluation adjustment that would have been due at the next revaluation date.”.

Amendments to definitions

8.  In Schedule 1 (interpretation)—

(a) for the definition of “revaluation adjustment”(2), substitute—

““revaluation adjustment” means—

(a)

in the case of a balance transferred under a Club Transfer, the adjustment that would have applied to that balance if it had not been transferred and which is applied to the balance on the same day as the percentage increase or decrease referred to in paragraph (b); and

(b)

in any other case the percentage specified as the change in prices in relation to the Scheme set out in the relevant Treasury Order made under section 9(2) of the Public Service Pensions Act (Northern Ireland) 2014 in relation to the previous Scheme year which applied to a sum in a pension account;”; and

(b) after the definition of “revaluation adjustment” insert—

““revaluation date” means 6th April;”.

Sealed with the Official Seal of the Department for Communities on 16th May 2023

Anthony Carleton

A senior officer of the Department for Communities

The Department of Finance consents to these Regulations

Sealed with the Official Seal of the Department of Finance on 17th May 2023

Patrick Neeson

A senior officer of the Department of Finance