The Local Government (Superannuation and Compensation) (Amendment) Regulations 1988

PART III COMPENSATION

Interpretation

11.  In this Part “the 1982 Regulations” means the Local Government (Compensation for Premature Retirement) Regulations 1982(1).

Interpretation of the 1982 Regulations

12.  After paragraph (3) of regulation 2 of the 1982 Regulations there shall be inserted—

“(4) Where in these regulations references are made to anything done under, required under or arising under any provision of the Superannuation Regulations, those references shall be construed so far as the context permits as references to anything done under, required under or arising under the corresponding provision of the Local Government Superannuation Regulations 1974(2); and where any references are made to a pensionable employee or a person who would be or would have been a pensionable employee within the meaning of the Superannuation Regulations, those references shall be construed so far as the context permits as references to a pensionable employee or, as the case may be, to a person who would be or would have been a pensionable employee, within the meaning of the Local Government Superannuation Regulations 1974.”.

Definitions

13.  Regulation 3 of the 1982 Regulations shall be amended—

(a) in the definition of “former employment”, by omitting the words from “and paragraphs” to the end;

(b) in the definition of “new employment”, by substituting for the words “and paragraphs (7) to (9)” the words “and paragraph (10)”, and by substituting for the words “as if” to the end of the definition the words “as it applies for the purposes of that regulation”;

(c) by substituting for the definition of “occupational pension”—

““occupational pension” in relation to a person means a pension to which he has become entitled, whether payable immediately or in the future, being—

(a) a pension associated with any employment which is payable under an enactment (not being for these purposes an enactment comprised in the Social Security Act 1975(3) or the Superannuation Regulations), contract, scheme or other arrangement, including a pension under a personal pension scheme in relation to which the Secretary of State has paid contributions under section 1 of the Social Security Act 1986(4), or

(b) a pension derived from the payment of a transfer value calculated by reference to pension rights (contingent or otherwise) arising under the Superannuation Regulations or arising with respect to such a pension as is mentioned in paragraph (a) above,

• and not being a pension which is a lump sum;”;

(d) by omitting the words

““pensionable employee”, “pensionable remuneration”,” and “, “reckonable service””;

(e) by inserting after the definition of “occupational pension”—

““pensionable employee” means a pensionable employee within the meaning of the Superannuation Regulations or a person who the employing authority are satisfied would be such or be treated as such but for a relevant disqualification; “pensionable remuneration” in relation to a person means the remuneration which is, or if there has been a relevant disqualification, which but for that disqualification and on the relevant assumptions would be, that person’s pensionable remuneration under the Superannuation Regulations;”;

(f) by inserting after the definition of “periodic payment”—

““reckonable service” means any period of reckonable service within the meaning of the Superannuation Regulations, together with any period of special service not being special service consisting of periods of unpaid leave or other unpaid absence from duty;”;

(g) by inserting after the definition of “redundancy payment”—

““the relevant assumptions” are the assumptions that—

(a) during any period of special service a beneficiary was a pensionable employee within the meaning of the Superannuation Regulations,

(b) a beneficiary’s reckonable service for the purposes of those regulations included any periods of special service which do not consist of periods of unpaid leave or other unpaid absence from duty,

(c) for the purposes of regulation E3(12) of those regulations, no notification had been given under regulation B1B,

(d) any notice or determination which, on the assumptions mentioned above, might have been given or made under regulation E22(3)(b) of those regulations with respect to a period of special service had been given or made,

(e) any notice or determination which, on the assumptions mentioned above, might have been given or made under regulation E22(4) or (5)(c) of those regulations with respect to a period of special service had not been given or made, and

(f) regulation E22(7) of those regulations did not apply with respect to a period of special service;

“relevant disqualification” in relation to a person means—

(a) the requirement in regulation B1(3)(a) of or paragraph 1(4)(a) of Part IV of Schedule 2 to the Superannuation Regulations that a manual worker should have completed an appropriate 12 months' continuous employment before he may become a pensionable employee,

(b) the failure of a medical examination required under regulation B1(16) of those regulations,

(c) the making of an election under regulation B1(15B) of those regulations before its omission by the Local Government (Superannuation and Compensation) (Amendment) Regulations 1988,

(d) the making of an election, or the absence of an election with respect to any period (as the case may be), under regulation B1(18) of or Part IV of Schedule 2 to the Superannuation Regulations before the omission or amendment of those provisions by the Local Government (Superannuation and Compensation) (Amendment) Regulations 1988,

(e) the absence of an election under regulation B1A of the Superannuation Regulations with respect to any period,

(f) the giving of a notification under regulation B1B of those regulations,

(g) the absence of an election under paragraph 1(b) of Part III of Schedule 2 to those regulations with respect to any period, or

(h) the making of an election, or the absence of an election with respect to any period (as the case may be), under regulation 25(3)(b) of the Local Government Superannuation (Miscellaneous Provisions) Regulations 1987(5),

in consequence of one or more of which (either individually or cumulatively) that person has not become, has ceased to be or has not been treated as being a pensionable employee within the meaning of the Superannuation Regulations;”;

(h) by inserting after the definition of “scheduled body”—

““special service” means any period of employment with respect to which the employing authority is satisfied that the person concerned would have been or been treated as being a pensionable employee within the meaning of the Superannuation Regulations but for a relevant disqualification, except that, in relation to any employment ending before he began his former employment, it only includes such periods as are continuous with the former employment; and a period of employment is continuous with the former employment for this purpose if in the interval between its ending and the former employment beginning there have been no breaks in employment with a scheduled body or a body mentioned in column 1 of Part 2 of Schedule 1 for periods of greater than one month and one day;”; and

(i) in the definition of “the Superannuation Regulations”, by substituting for the figure “1974” the figure “1986”.

Persons to whom the 1982 Regulations apply

14.  Regulation 4(1)(a) of the 1982 Regulations shall be amended—

(a) by substituting for the words “regulation E2(3)(a)” the words “regulation E2(4)(a)”; and

(b) by inserting after the words “the Superannuation Regulations” the words— “or they are satisfied that, but for a relevant disqualification and on the relevant assumptions, they would have so certified”.

Lump sum compensation and annual compensation

15.  Regulation 6 of the 1982 Regulations shall be amended—

(a) in paragraph (2), by inserting after the words “beneficiary is entitled” the words “(or, as mentioned in paragraph (4), would be entitled)”, and by inserting after the words “be increased” in sub-paragraph (a) the words “on the relevant assumptions”;

(b) in paragraph (3)(a), by inserting after the words “be increased” the words “on the relevant assumptions”;

(c) in paragraph (3B), by inserting after sub-paragraph (c)—

“(d) “reckonable service” has the same meaning as in the Superannuation Regulations, and

(e) as respects an occupational pension which is a pension under a personal pension scheme in relation to which the Secretary of State has paid contributions under section 1 of the Social Security Act 1986 or is a pension derived from the payment of a transfer value calculated by reference to rights arising with respect to such a pension, the reference to “any period in respect of which he is entitled to the occupational pension” shall be construed as a reference to the period of employment by reference to which the Secretary of State has paid the contributions and (without prejudice to the generality of that expression in other cases) any period of employment in relation to which a transfer value has been paid into the personal pension scheme.”;

(d) in paragraph (3C), by omitting the words “within the meaning of regulation E1 of the Superannuation Regulations”; and

(e) in paragraph (4), by substituting for the words from “paragraphs” to “those regulations” the words “paragraphs (1)(b)(iii) and (4)(a) of regulation E2 of those regulations, or (except in relation to paragraph (3A)(c) above) to which but for a relevant disqualification he would be so entitled on the relevant assumptions and on the further assumption that, if the employing authority might have certified under regulation E2(4)(a) of those regulations, it had done so”.

Allocation of part of annual compensation

16.  Regulation 7 of the 1982 Regulations shall be amended—

(a) in paragraph (1), by substituting for the words “regulation E4” the words “regulation E20”;

(b) in paragraph (2), by substituting for the words “and (3)(a)” the words “and (4)(a)”; and

(c) by inserting after paragraph (4)—

“(5) Where regulation E20 of the Superannuation Regulations does not apply to a beneficiary in consequence of a relevant disqualification, paragraph (1) shall have effect as if he had been allowed as mentioned in that paragraph, and in such a case the annual compensation which he is entitled to surrender in accordance with paragraph (2) shall be such part as he may specify in the notice required under paragraph (1).”.

Widows' compensation

17.—(1) Regulation 8(1) of the 1982 Regulations shall be amended—

(a) by substituting for the words from “(but for” to “pension scheme)” the words “but for a relevant disqualification with respect to the beneficiary (and on the relevant assumptions) or for the transfer of benefits to another pension scheme”; and

(b) by substituting for the words “regulation E5(1)” the words “regulation E5(1) to (5)”.

(2) Regulation 9(2)(b) of the 1982 Regulations shall be amended by inserting after the words “to reckon” the words “on the relevant assumptions”.

Children’s compensation

18.—(1) Regulation 10 of the 1982 Regulations shall be amended—

(a) by substituting for the words from “(but for” to “pension scheme)” where they occur in paragraphs (1) and (2) the words “but for a relevant disqualification with respect to the beneficiary (and on the relevant assumptions) or for the transfer of benefits to another pension scheme”;

(b) by substituting for the words “regulation E8(1)” where they occur in paragraphs (1) and (2) the words “regulation E8(1) to (3)”.

(2) Regulation 11 of the 1982 Regulations shall be amended—

(a) in paragraph (3)(b), by inserting after the words “to reckon” the words “on the relevant assumptions”;

(b) in paragraph (4)(a), by substituting for the words “regulation E9(4)” the words “regulation E9(5)”; and

(c) in paragraph (5), by substituting for the words from “(but for” to “pension scheme)” the words “but for a relevant disqualification with respect to the beneficiary (and on the relevant assumptions) or for the transfer of benefits to another pension scheme”, and by substituting for the words “regulation E9(5)” the words “regulation E9(7)”.

Widowers' compensation

19.  Regulation 12 of the 1982 Regulations shall be amended—

(a) in paragraph (1), by substituting for the words “regulation E12” in sub-paragraph (a) the words “regulation E12(3)”, and by substituting for the words “regulation E5(1) or E8(1)” the words “regulation E5(1) to (5) or E8(1) to (3)”; and

(b) by inserting after paragraph (2)—

“(3) Where a female beneficiary is not a pensionable employee under the Superannuation Regulations by virtue of a relevant disqualification, and the circumstances have arisen such that she would have been able to give a notice under regulation E12(3) of those regulations if she were such an employee, she shall be treated for the purposes of this regulation as having given that notice.”.

New employment

20.—(1) Regulation 16 of the 1982 Regulations shall be amended—

(a) in paragraph (2), by inserting after the words “becomes entitled” the words “(or but for a relevant disqualification and on the relevant assumptions would become entitled)”, and by inserting after the words “cessation of his new employment” the words “and on the relevant assumptions”, and

(b) in paragraph (3), by substituting for the words “regulation D3(2)(b)” the words “regulation D3(7)”.

(2) Paragraph 3 of Schedule 4 to the 1982 Regulations shall be amended—

(a) by substituting for paragraph (a)—

“(a) “retirement pension” means—

(i) a pension under regulation E2(1)(a) or (b) of the Superannuation Regulations, including an annual pension within the meaning of regulation E15(14) of the Superannuation Regulations; or

(ii) an occupational pension”; and

(b) by inserting after paragraph (b)—

“; and

(c) in calculating the annual rate of remuneration of a former, concurrent or new employment, regulation E15(6) to (9) of the Superannuation Regulations shall apply on the relevant assumptions as if a former or concurrent employment was a former employment, and a new employment was a new employment, within the meaning of that regulation, and with respect to the Table to regulation E15(6) as if the source of entitlement were the Superannuation Regulations; but in relation to a period of special service regulation E15(7) shall have effect as if the words “either” and “or he made contributions or payments under section 6(5) of the Act of 1937 or regulation C3 or C4” were omitted.”.

(3) Sub-paragraph (1) of paragraph 6 of Schedule 4 to the 1982 Regulations shall be amended by inserting after the words “becomes entitled” the words “(or but for a relevant disqualification and on the relevant assumptions would become entitled)”.

Payment of compensation

21.  Regulation 19(1) of the 1982 Regulations shall be amended by substituting for the words from “(but for” to “pension scheme)” the words “but for a relevant disqualification with respect to the beneficiary (and on the relevant assumptions) or for the transfer of benefits to another pension scheme”.

Paying authority

22.  For regulation 20(4) of the 1982 Regulations there shall be substituted—

“(4)   The authority which under the Superannuation Regulations is maintaining a superannuation fund with respect to whose benefits a beneficiary is participating (or but for a relevant disqualification and on the relevant assumptions would be participating) may agree with the employing authority to pay any compensation arising in respect of that beneficiary on their behalf and to recover the amount thereof from them immediately or at such intervals as may be agreed.”.

Local government reorganisation

23.  The Local Government Reorganisation (Compensation) Regulations 1986(6) are amended—

(a) in regulation 1(2)—

(i) in the definition of “the Superannuation regulations”, by substituting for the figure “1974” the figure “1986”; and

(ii) by inserting after the definition of “redundancy payment”—

““the relevant assumptions” and “relevant disqualification” have the same meaning as in the 1982 regulations;”;

(b) by substituting for regulation 3(1)—

“(1) This regulation applies to a person—

(a) who becomes entitled to a retirement pension under regulation E2(1)(b)(iii) of the Superannuation regulations by virtue of the competent authority’s certifying under regulation E2(4)(a) of those regulations that he has ceased to hold his employment by reason of redundancy, or

(b) who the competent authority are satisfied would be so entitled (but for a relevant disqualification) on the relevant assumptions, unless he elects, by notice given in writing to the authority within 13 weeks of him being notified by the authority that they are so satisfied, that this regulation should not apply to him.”;

(c) in regulation 3(4), by inserting after the words “which is” the words “, or (as the case may be) would be,”; and

(d) in regulation 4(2)(b), by inserting after the words “does not apply” the words “(whether by virtue of an election under regulation 3(1)(b) or otherwise)”.

Transitional provision

24.  The amendments made by this Part shall only apply to cases where the employment by reference to whose cessation additional periods of service might fall to be credited under the 1982 Regulations ceases to be held on or after 6th April 1988.

(1)

S.I. 1982/1009, amended by S.I. 1984/740 and 1986/151.

(2)

S.I. 1974/520; relevant amendments were made by S.I. 1978/266 and 822, 1979/1534, 1983/1269 and 1985/1920.

(3)

1975 c. 14.

(4)

1986 c. 50.

(5)

S.I. 1987/293.

(6)

S.I. 1986/151.