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

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.”.