The Local Government Pension Scheme Regulations 1995

PART A PRELIMINARY

Citation and commencement

A1.  These Regulations may be cited as the Local Government Pension Scheme Regulations 1995 and shall come into force on 2nd May 1995 (and in these regulations that date is referred to as “the commencement date”).

Interpretation

A2.—(1) In these regulations, unless the context otherwise requires, the expressions defined in Schedule A1 have the meanings given to them by that Schedule.

(2) In these regulations, unless the context otherwise requires, any reference to a Part of these regulations includes a reference to any Schedules to these regulations referred to in that Part, is so far as they apply for its purposes.

PART B MEMBERSHIP

Eligibility

General eligibility of employees of LGPS employers

B1.—(1) Subject to the provisions of this Part, a person is only eligible to be a member of the occupational pension scheme constituted by these regulations (in these regulations referred to as “the Scheme”) if—

(a) he is an employee of a body specified in Part I of Schedule B1; or

(b) he is an employee of a body specified in Part II of that Schedule and that body has by a statutory resolution—

(i) specified him as being so eligible, or

(ii) specified a class of employees to which he belongs as being so eligible.

(2) In these regulations—

(a) “employee” means an employee whether permanent or temporary; and

(b) the bodies specified in Schedule B1 are referred to as “LGPS employers”.

Age restrictions: meaning of “latest retirement age” and “LRD”

B2.—(1) A person is only eligible to be a member of the Scheme if he has attained the age of 16 years.

(2) A person applying to his employer to join the Scheme who—

(a) has attained the age of 50 years (or would, on or by the date on which he would otherwise become a member of the Scheme have attained that age), and

(b) was first employed by the employer and eligible to be a member by virtue of that employment before he attained that age,

is not eligible to be a member of the Scheme if he is given notice in writing to that effect by his employer.

(3) Subject to paragraph (4), a person is not eligible to be a member of the Scheme after he has attained the age of 65 and in these regulations, in relation to any person, “latest retirement age” means that age and “LRD” means the date by which he attains that age.

(4) A person is only eligible to be a member of the Scheme on and after his LRD if—

(a) his total period of membership does not exceed the maximum referred to in paragraph (6); and

(b) at least one of the conditions mentioned in paragraph (5) is satisfied in relation to him.

(5) The conditions mentioned in paragraph (4) are—

(a) at least one of the following has become payable to him—

(i) a pension which is liable to be reduced or suspended under Schedule D5 (re-employed pensioners),

(ii) an ill-health retirement grant under regulation D8, or under regulation E4 of the 1986 regulations or regulation E20 of the 1974 regulations,

(iii) a short service grant under the Benefits regulations;

(b) he has received or is entitled to receive compensation under any enactment for loss of employment or loss or diminution of emoluments attributable to the provisions of an enactment, and the compensation is liable to be reduced or suspended, in consequence of his taking up employment with an LPGS employer, in the like manner and to the like extent as it would have been if he had remained eligible to belong to the occupational pension scheme to which he belonged or was eligible to belong immediately before suffering the loss.

(6) The maximum referred to in paragraph (4)(a) is—

(a) in the case of a Class A member (as defined in paragraph 1(1) of Schedule C5) 40 years, and

(b) in the case of a Class B member or a Class C member (as so defined), the aggregate of—

(i) his total period of membership before he attained the age of 60 years (disregarding any period in excess of 40 years), and

(ii) his total period of membership since he attained that age (but not exceeding 5 years plus any period by which the period mentioned in paragraph (i) fell short of 40 years);

and in paragraph (4) and this paragraph “total period of membership” has the meaning given in regulation B14, except that it also includes any additional period of membership which the member has been treated as being entitled to count for the purposes of regulation D7 (enhancement in cases of retirement on grounds of ill-health) or any corresponding earlier provision.

Restrictions by reference to working hours: “part-time” and “variable-time” employees

B3.—(1) If an employee is in two or more employments under a single LGPS employer, he is eligible to be a member of the Scheme in respect of all (but not less than all) of the employments.

(2) A person who is a variable-time employee of an LGPS employer specified in Part I of Schedule B1 or paragraph 1 or 2 of Part II of that Schedule is only eligible to be a member of the Scheme in respect of that employment if—

(a) he is a member of the Scheme also in respect of whole-time or part-time employment with an LGPS employer who is so specified; or

(b) having been such a member at the same time as being a member in respect of his variable-time employment, he has ceased to hold the whole-time or part-time employment; or

(c) he is not also in the whole-time or part-time employment of an LGPS employer who is so specified and his employer has by a statutory resolution—

(i) specified him as being so eligible, or

(ii) specified a class of employees to which he belongs as being so eligible.

(3) For the purposes of these regulations—

(a) an employee is a variable-time employee if in accordance with his terms of office or contract of employment he is to be treated as such for the purposes of the Scheme and either—

(i) his remuneration is calculated by reference to his obligations in his employment (rather than necessarily by reference to the number of hours he has worked), or

(ii) he hold an office or employment the functions of which are only exercisable on an occasional basis;

(b) an employee is a whole-time employee if his contractual hours are not less than the number of hours which, in accordance with his terms of employment, is the number of contractual hours for a person employed in that employment on a whole-time basis; and

(c) an employee is a part-time employee if he is neither a whole-time employee nor a variable-time employee.

(4) In these regulations—

• “the contractual hours” means—

  (i)

  the number of hours the employing authority are entitled to require the employee to work in each of the contractual weeks, or

  (ii)

  if there is a cyclical variable in those hours, the average of those hours over the cycle; or

  (iii)

  if there is any variation in those hours which is not cyclical, the average of those hours over the weeks in such period (not exceeding 12 months) as the employing authority consider appropriate, being a period for which, assuming that there will be no unpaid leave of absence, a wage or salary is payable to the employee; and

• “the contractual weeks” means the number of weeks in every period of 12 months for which (on that assumption) a wage or salary is payable to the employee.

Certain office-holders etc. to be treated as employees of LGPS employers

B4.  Schedule B2 shall have effect for the purpose of deeming certain persons to be employees of LGPS employers and, unless the context otherwise requires, references in these regulations to employment by or under such employers, and all related expressions, shall be construed accordingly.

Separate employments etc.

B5.—(1) Where a person holds two or more separate employments under one LGPS employer then, unless the context otherwise requires, these regulations apply in relation to each of those employments as if the other or others were held by him under another LGPS employer.

(2) Where the duties of a whole-time employee of a LGPS employer include the additional duty of a returning officer at local government elections or of an acting returning officer then, unless the context otherwise requires, these regulations apply—

(a) if he became a pensionable employee under the 1974 regulations on 1st April 1974 and immediately before that date was in the whole-time employment and had duties in it which included one or both of the additional duties, in relation to each additional duty as if it were a separate variable-time employment with an LGPS employer other than that with whom he is in the whole-time employment, and

(b) otherwise, in relation to that additional duty as if it were (or, if there are two additional duties, in relation to them both, as if they were) a separate variable-time employment with such an LGPS employer.

(3) For the purposes of paragraph (2)—

(a) the duty of an acting returning officer includes any duties of a returning officer at a European Parliamentary election which are required by regulations made under paragraph 2 of Schedule 1 to the European Parliamentary Elections Act 1978(1) to be discharged by an acting returning officer; and

(b) the references to a part-time employee and whole-time employment include references to a part-time employee whose contractual hours are at least 30, and to part-time employment in which the contractual hours are at least 30, respectively.

(4) A medical inspector of immigrants appointed under the Immigration Act 1971(2) who—

(a) receives his remuneration in that appointment from an LGPS employer specified in Part I of Schedule B1, and

(b) is also a member of the Scheme in relation to any employment,

is eligible to be a member of the Scheme in respect of the appointment and shall be deemed to be an officer in the employment of the authority from whom he receives his remuneration in the appointment.

Eligibility of employees of certain non LGPS employers

B6.  Schedule B3 has effect as respects the eligibility for membership of the Scheme of employees of certain persons who are not LGPS employers and, where under that Schedule any person is deemed to be employed by an LGPS employer, then, unless the context otherwise requires, references in these regulations to employment by or under such an employer, and all related expressions, shall be construed accordingly.

Power to extend eligibility to employees of other bodies (“admission agreements”)

B7.—(1) Subject to the following provisions of this regulation, an administering authority may make an agreement (in these regulations referred to as “an admission agreement”) with any body specified in Schedule B4 (“the employing body”), providing for employees of the employing body to be eligible to be members of the pension fund maintained by the administering authority.

(2) Subject to paragraph (4), an admission agreement may provide for employees, or any specified class or classes of employees, of the employing body to be members of the Scheme.

(3) Subject to paragraph (4) and regulation B10(3), these regulations apply to a person who is such an employee as is mentioned in paragraph (“an admission agreement employee”) and has become a member of the Scheme as if the employing body were an LGPS employer.

(4) An admission agreement may not provide for any person to be a member if he would be ineligible to be a member by virtue of regulation B2(1) or (3), B3, B8 or B9 if he were an employee of an LGPS employer.

(5) Except as provided in paragraphs (6) and (7), an admission agreement may not modify the application of these regulations to any employee so that he has any greater or lesser rights or liabilities than those he would have if he became a member of the Scheme by virtue of regulation B1.

(6) An admission agreement may provide that any previous period of employment of an employee by the employing body is to count to such extent as there specified as a period of deemed membership of the Scheme.

(7) An admission agreement made with the Commission for the New Towns may provide that a percentage (not exceeding 4.4 per cent.) of the remuneration of employees of a description specified in the agreement shall be treated as not being remuneration for the purposes of these regulations.

(8) An admission agreement—

(a) shall provide that the agreement shall cease to have effect if the employing body ceases to be a body specified in Schedule B4; and

(b) may make such other provision for, and contain such incidental provisions relating to, its cessation as the parties consider appropriate.

(9) On making an admission agreement an administering authority shall immediately inform the Secretary of State of the name of the employing body and the date from which the agreement takes effect.

(10) An admission agreement may be made by an appropriate administering authority with an employing body whether or not that body exercises its functions in the same part of the United Kingdom as the appropriate administering authority exercise their functions.

Ineligibility of employees eligible to join other statutory schemes

B8.—(1) A person is not eligible to be a member of the Scheme by virtue of any employment which also entitles him to belong to another occupational pension scheme provided by or under an enactment.

(2) The reference in paragraph (1) to an enactment—

(a) includes an enactment in a local Act, but

(b) excludes section 7 of the Superannuation Act 1972.

Other cases of ineligibility

B9.  Schedule B5 (which specifies certain exceptions to eligibility under regulation B1) shall have effect.

Joining and leaving the Scheme

Applications for membership

B10.—(1) Subject to the following provisions of this Part, a person who wishes to become a member of the Scheme shall apply to do so by notice given in writing to his employer or future employer.

(2) Subject to paragraph (3), an employee is deemed to have made an application to become a member, unless—

(a) before commencing his employment, or

(b) in the case of a person to whom this paragraph began to apply after he commenced his employment, before the date on which it began to apply to him,

he notified his employer in writing that he did not wish to become a member of the Scheme.

(3) Paragraph (2) does not apply—

(a) to a person who is an eligible employee by virtue of regulation B7,

(b) to a person whose employment is of a casual nature, or

(c) a person who has previously been a member of the Scheme but has ceased to be a member after giving notification under regulation B12.

(4) Where a person who has ceased to be employed in an employment in which he was a member at the time of cessation commences a new employment in which he is eligible for membership, he is deemed to have made an application to become a member unless, before commencing his new employment, he notified his employer in writing that he did not wish to be a member of the Scheme.

(5) An application for membership may be withdrawn at any time before the applicant becomes a member.

Admission to the Scheme

B11.—(1) A person who has or is deemed to have applied under regulation B10 and is eligible to be a member of the Scheme shall become a member of it on the appropriate day.

(2) In this regulation, “the appropriate day” means—

(a) in the case of a person who has applied under regulation B10(1) at least one month before the date on which he commences his employment (or such lesser period before that date as his employer allows), the date on which he commences his employment or such later date as he has specified in his application;

(b) in any other case where an application is made under that regulation, the first day of the first payment period following the application;

(c) in the case of a person who is deemed to have applied under regulation B10(2)—

(i) if he is a person to whom that paragraph applied on the date when he commenced his employment, that date, and

(ii) otherwise, on the date on which it began to apply to him.

(3) In paragraph (2)(b), “payment period” means a period of service to which the employee’s payment of wages or salary relates.

Leaving the Scheme

B12.—(1) Subject to the provisions of these regulations, a person shall cease to be a member of the Scheme if—

(a) he wishes to do so, or

(b) he ceases to be eligible for membership.

(2) A person who wishes to cease to be a member of the Scheme shall so notify his employer in writing.

(3) Subject to paragraphs (5) and (6), a person giving a notification under paragraph (2) shall cease to be a member of the Scheme—

(a) in a case where a date of cessation (being a date not earlier than the date of the notification) is specified in the notification, from that date, and

(b) otherwise, from the first day of the first, or if the LGPS employer so determines, the second payment period following the notification.

(4) In paragraph (3)(b), “payment period” means a period of service to which the employee’s payment of wages or salary relates.

(5) Where a person gives a notification under paragraph (2) within three months after first becoming a member of the Scheme, he shall be treated as never having been a member.

(6) Where—

(a) a person to whom regulation C8 (absence on reserve forces service) applies has given notification under paragraph (2) before ceasing his former employment or beginning his leave of absence in order to perform his relevant service (within the meaning of that regulation), and

(b) he is still a member immediately before he commences his relevant service,

then, subject to paragraph (7), the notification shall be of no effect.

(7) A person may elect that paragraph (6) is not to apply, by notice given in writing to the appropriate administering authority before the end of the period of 12 months beginning with the end of his relevant service (or within such longer period as they may allow), and they shall take all practicable steps to secure that a person entitled to make such an election is notified of his entitlement.

(8) Any contributions paid by a person with respect to a period during which, by virtue of a notification under paragraph (2), he is not a member of the Scheme shall be returned to him.

Rejoining the Scheme

B13.—(1) Subject to paragraph (3), a person who has once given a notification under regulation B12 may subsequently apply to become a member of the Scheme again.

(2) An application under paragraph (1) shall be made by notice in writing given to the applicant’s employer or future employer.

(3) A person who has made an application under paragraph (1) and subsequently gives another notification under regulation B12(2) may only make a further application under paragraph (1) if his employer or future employer consents or—

(a) he is beginning a new employment with a new employing authority by virtue of which he is eligible to be a member of the Scheme, and

(b) he applies before or within the period of three months beginning with the day on which he begins that employment.

(4) Regulation B11 shall apply to an application under paragraph (1) as it applies to an application under regulation B10(1).

Membership periods

Periods of membership: “total period of membership”

B14.—(1) For the purposes of these regulations, in relation to any member the following periods count as periods of membership, in relation to an employment in which he is a member—

(a) any period for which he has paid (or is treated as having paid) contributions under regulation C4, C5 or C6, (but subject to the provisions of regulation C7(5) and (6));

(b) any period during which he is absent from duty by reason of illness or injury (whether or not he has paid such contributions for it);

(c) any period which he is entitled to count as such by virtue of regulation C8;

(d) any period which he is entitled to count as such by virtue of regulation B7(6), B16, B17, or C9;

(e) any period which he is entitled to count as such by virtue of regulation K14(1)(a);

(f) any other period which he is entitled to count as such under paragraph 7 of Schedule M4 and, in particular—

(i) any period he became entitled to count as reckonable service by virtue of regulation D1(1)(b) to (h) of the 1974 regulations, or regulation D4 to D7, D8A, D9 or D13 or Part F of the 1986 regulations,

(ii) any period of added years,

(iii) any period which by virtue of the interchange rules became reckonable under the former regulations,

(g) any other period which he is entitled to count as such under Schedule C6.

(2) For the purposes of these regulations, a member’s “total period of membership” is the aggregate of the periods he is entitled to count under paragraph (1) (disregarding any period which he is entitled to count under more than one of paragraphs (a) to (g), but subject—

(a) to Part I of Schedule B6 (which provides for the exclusion of certain periods of membership for certain purposes);

(b) to Part II of that Schedule (which provides for the inclusion for certain purposes in the total period of membership of certain periods, which are not periods of membership in relation to the employment in which a person is a member, as respects certain benefits in respect of that employment); and

(c) to Schedule C5 (which provides for the limitation of periods, of membership for certain purposes).

Length of period of membership: calculation of benefit

B15.—(1) For the purpose of calculating the amount of any benefit under these regulations—

(a) a period of membership in excess of a number of complete years shall be counted as the appropriate fraction of a year (and accordingly references to the length in years of membership shall be taken as references to the number of complete years and any fraction of a year in the period of membership); and

(b) subject to paragraph (3), a period of membership in part-time service in local government employment shall be treated as though it had been a proportionately reduced period of membership in whole-time local government employment.

(2) In paragraph (1)— “the appropriate fraction” means the fraction of which—

(a) the numerator is the number of complete days comprised in the excess; and

(b) the denominator is 365; and

“proportionately reduced” means reduced in the proportion which the number of contractual hours during the period of part-time service in the employment, bears to the number of contractual hours of that employment if it were on a whole-time basis.

(3) Paragraph (1)(b) does not apply to the calculation of an increase in retirement grant under paragraph 1 of Schedule D2 (preservation of right under the 1974 regulations to increase in standard retirement grant), or in determining a member’s total period of membership for the purposes of regulation D7(2) (qualification for enhancement of pension in cases of ill-health) and is subject to paragraph 4 of Schedule D3 (additional membership in such cases).

Special power of employing authority to increase period of membership.

B16.—(1) Subject to paragraphs (2) and (3), if the body employing an employee who is eligible to be a member of the Scheme (in these regulations referred to as “the employing authority”) are satisfied that, having regard to the interests of the efficient exercise of their functions, there are exceptional reasons for doing so they may resolve to add an additional period of membership to a member’s period of membership.

(2) A resolution under paragraph (1)—

(a) may only be passed before or within 6 months after the person becomes a member in the authority’s employment, and

(b) may not be passed after he has attained the age of 59 years, unless he did so after becoming such a member.

(3) The additional period is to be specified in the resolution and is not to exceed the maximum period which would be applicable under regulation C10(1) (taking the references in regulation C10(6)(a) and

(b) to the date of the election as references to the date of the resolution and, in the case of a person who at the date of the resolution had not become a member in the employment of the authority, treating him as if he had on that date become such a member on the scale of remuneration at which the employment was offered to him).

(4) Where the employing authority have passed a resolution under paragraph (1) and the member—

(a) remains in his employment under that authority until his NRD (within the meaning of regulation C3(1)),

(b) on ceasing to hold that employment before his NRD is incapable of discharging efficiently the duties of the employment by reason of permanent ill-health or infirmity of mind or body, or

(c) dies while in that employment,

the additional period specified in the resolution may be counted as a period of membership.

(5) In any other case where the employing authority have passed such a resolution the member is entitled to count as a period of membership the appropriate proportion of the additional period of membership specified in the resolution.

(6) In paragraph (5) “the appropriate proportion” means the proportion which the period during which the member has been in the employment of the employing authority bears to the period during which the member would have been in that employment if he had remained in it until his NRD (within the meaning of regulation C3(1)).

Special power of City of London bodies to increase period of membership

B17.—(1) Where a member who is employed by a City of London employing body

(a) was immediately before 1st October 1977 a contributor of the superannuation fund maintained by the Common Council under their local Act scheme;

(b) on 1st October 1977 became a member; and

(c) on ceasing to hold his employment under the City of London employing body becomes entitled to a retirement pension (otherwise than by virtue of regulation D9 or D11),

the body may, in consideration of special circumstances, resolve to add an additional period of membership of not more than 10 years to his period of membership.

(2) On passing a resolution under paragraph (1) a City of London employing body (other than the Common Council) shall immediately send a copy of it to the Common Council.

(3) In this regulation “City of London employing body” means—

(a) the Common Council,

(b) the magistrates' courts committee for the City of London,

(c) the probation committee for the City of London probation area, or

(d) the Board of Governors of the Museum of London.

PART C MEMBERS' CONTRIBUTIONS

Preliminary definitions

Meaning of “appropriate pension fund”

C1.—(1) In these regulations “appropriate pension fund” means—

(a) subject to paragraph (b), in relation to an employee of an administering authority, the fund maintained by that authority;

(b) in relation to the persons mentioned in Part I of Schedule C1, the fund maintained by the London Pensions Fund Authority;

(c) in relation to the persons mentioned in Part II of Schedule C1, the funds mentioned in relation to them in that Part;

(d) in relation to an employee of a company under the control of a body described in Part 1 of Schedule B1, the fund which, in accordance with this regulation, is the appropriate pension fund in relation to an employee of that body;

(e) in relation to an admission agreement employee, the fund maintained by the administering authority who are a party to the admission agreement by virtue of which he is eligible to be a member;

(f) in relation to a person whose case does not fall within paragraphs (a) to (e), the fund maintained by the administering authority within whose area lies the greater part of the area of his employing authority.

(2) Where paragraph (1)(d) of this regulation or paragraph 6(1)(a) of Schedule C1 applies to any employees of a LGPS employer, the Secretary of State may, after consultation with the bodies appearing to him to be concerned, by direction substitute as the appropriate pension fund in relation to those employees (or any of them) the fund maintained by some other administering authority (“the substituted fund”).

(3) A direction under paragraph (2) may—

(a) require the making of financial adjustments between the funds, whether by way of a payment to the substituted fund or of a transfer of assets or both, or

(b) contain provision as to the transfer of liabilities to the substituted fund and any other consequential and incidental matters.

(4) Where an administering authority have under regulation L3(1) established a further fund—

(a) references in paragraphs (1) to (3) and in Schedule C1 to “the fund” are to be construed as references to the fund maintained by that authority under regulation L1, and

(b) in relation to a person to whom these regulations apply by virtue of an admission agreement with a body identified in the notice required by regulation L3(2), the appropriate pension fund is the further fund.

(5) Except in regulation C24, references in these regulations to the making of contributions in respect of any person are, unless the context otherwise requires, references to the making of contributions to the fund which is the appropriate pension fund in relation to that person.

Meaning of “remuneration”

C2.—(1) Subject to paragraphs (2) and (3) and Schedule C5 (limitations on contributions and benefits), in these regulations “remuneration”, in relation to an employee, means the total of—

(a) all the salary, wages, fees and other payments paid to him for his own use in respect of his employment, and

(b) the money value of any benefits provided for him by reason of his employment,

and any other payment or benefit specified in his contract of employment as being a pensionable emolument.

(2) “Remuneration” does not include—

(a) payments for non-contractual overtime;

(b) any travelling or subsistence allowance or any other allowance paid to an employee in respect of expenses incurred in relation to the employment;

(c) any payment made to an employee in consideration of loss of holidays;

(d) any payment accepted by an employee in lieu of notice to terminate his contract of employment;

(e) any payment made to an employee as an inducement not the terminate his employment before the payment is made;

(f) subject to paragraph 7 of Schedule C2, the money value to the employee of the provision of a motor vehicle or any payment accepted by him in lieu of such provision; or

(g) in the case of an employee or former employee of the Commission for the New Towns, any payment made to him, under any scheme relating to the termination of the employment of employees by the Commission, in respect of the completion before a specified date of specified functions.

(3) Schedule C2 shall have effect for the purpose of making further provision as to the meaning of “remuneration”(including provision for the amount of notional remuneration to be agreed collectively).

Meaning of “normal retirement age” and “NRD”

C3.—(1) In these regulations in relation to any member, “normal retirement date” or “NRD”, means

(a) in the case of a member who by his 60th birthday has a total period of membership of at least 25 years, that birthday;

(b) in the case of a member who first has such a total period of membership by a date after his 60th birthday but before his 65th birthday, the day after that date; and

(c) in the case of a member who does not fall within paragraph (a) or (b), his 65th birthday;

and “normal retirement age” means his age at the commencement of his NRD.

(2) Where for any purpose of the regulations it is necessary to determine a person’s NRD or normal retirement age before he attains that age, it shall be assumed that his local government employment and membership of the Scheme will be continuous.

Standard contributions

Member’s standard contributions

C4.—(1) Subject to regulations C5 to C7 and C27, a member shall, at such intervals as the appropriate administering authority may determine, make contributions in respect of every employment in relation to which he is a member—

(a) in the case of a manual worker, at the rate of five per cent. of his remuneration in the employment, and

(b) in the case of an officer, at the rate of six per cent. of that remuneration.

(2) In this regulation—

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

“manual worker” means an employee who is not an officer.

Effect of absences on contributions

Leave of absence from duty

C5.—(1) A member who is on leave of absence from duty in an employment with reduced or no remuneration (otherwise than by reason of illness or injury) shall not make any contribution under regulation C4 in respect of the employment for the period of his absence.

(2) Unless regulation C6 (maternity leave) applies to a member who is so absent, the member shall—

(a) for a period of 30 days beginning on the first day of the leave of absence, or

(b) if the period of absence is shorter, for the period of it,

make contributions of amounts equal to the contributions he would have been required to make under regulation C4 on the remuneration he would have received during that period but for the leave of absence.

(3) If the member gives notice in writing for the purpose to the employing authority not later than 30 days after—

(a) the day on which he returns to duty, or

(b) the day on which he ceases to be employed by that authority,

whichever is the earlier, he shall make such contributions as are mentioned in paragraph (2) relating to the period of 36 months, or the period of his absence, if shorter.

(4) Where the leave of absence was given to enable the employee to attend–

(a) for jury service in pursuance of a summons under the Juries Act 1974(3), or

(b) as a juror at an inquest under the Coroners Act 1988(4),

and such attendance continues after the expiration of the period of 30 days mentioned in paragraph (2), the employee shall be deemed to have given such a notice as is mentioned in paragraph (3).

(5) This regulation does not apply where the leave of absence is given to enable the employee to perform relevant service (within the meaning of regulation C8 (absence on reserve forces service)).

Maternity absence

C6.—(1) 0This regulation applies to a person who—

(a) has a period of maternity absence; and

(b) immediately before that period was a member or had applied under regulation B10 or B13 to become a member.

(2) A person to whom this regulation applies—

(a) in relation to any period (“the relevant period”) which is, or is part of, a period maternity absence for which she is entitled to receive remuneration, shall make contributions of the same amount as those which (apart from regulation C5) she would have been required to make under regulation C4, if her remuneration in the employment were equal to the remuneration which she is entitled to receive for the relevant period; and

(b) in relation to any period (“the unpaid period”) which is, or is part of, a period of maternity absence and for which she is not entitled to receive remuneration, may elect to make contributions of the same amount as those which (apart from regulation C5) she would have been required to make under regulation C4 if for the unpaid period her remuneration in the employment were equal to the remuneration she was entitled to receive immediately before the beginning of the unpaid period.

(3) An election under paragraph (2)(b) shall be made by notice in writing to the employing authority given before the expiry of the period of 30 days beginning with the earlier of—

(a) the day on which the member returns to duty; and

(b) the day on which she ceases to be employed by that authority.

(4) Paragraph (2) does not affect the right of an employee to give notice under regulation B12 (leaving the Scheme) during a period of maternity absence.

(5) In this Part “period of maternity absence” means any period throughout which a woman—

(a) is absent from duty by reason of pregnancy or confinement; and

(b) may exercise the right under her contract of employment to return to work.

(6) For the purposes of this regulation references to “the relevant period” and “the unpaid period” do not include any period before the day on which the application under regulation B10 or B13 to become a member first has effect.

Absence owing to trade dispute

C7.—(1) This regulation applies to a person who—

(a) has been absent from duty, otherwise than on leave of absence, for a period of one or more days during and in consequence of a trade dispute, and

(b) was a member immediately before—

(i) that period, or

(ii) where two or more periods of absence occurred in consequence of a single trade dispute, the first of those periods;

and in this regulation a period for which a person to whom this regulation applies was so absent is referred to as a “relevant absence”.

(2) Subject to paragraph (4) and regulation C27, if a person to whom this regulation applies gives notice in writing that he wishes this paragraph to apply (or, in case within paragraph (7), his personal representatives do so) an amount equal to 16 per cent. of the difference between—

(a) the person’s remuneration (if any) for the relevant contribution period, and

(b) the remuneration he would have received for that period if it had not included any relevant absence or part of a relevant absence,

is payable in respect of the relevant contribution period to the authority to whom notice was given; and in this regulation “relevant contribution period” means a period which—

(i) is coextensive with one of the intervals at which a person to whom this regulation applies was required under regulation C4 to make standard contributions, and

(ii) includes all or part of a relevant absence.

(3) An authority shall pay to the appropriate pension fund any sum they receive by way of full or part payment of the amount mentioned in paragraph (2).

(4) Notice under paragraph (2) shall be given in writing to the authority who are or, as the case may be, were last the employing authority in relation to the person to whom the notice relates, before the expiry—

(a) of the period of three months beginning with the day after the last day of the relevant contribution period,

(b) where all or part of more than one relevant contribution period is included in a relevant absence which occurred in consequence of a single trade dispute, of the period of three months beginning with the last day of the last of the relevant contribution periods, in respect of which the notice is given, or

(c) in the case of a notice within paragraph (7), of the period of twelve months beginning with the date of the deceased employee’s death, or

(d) within such longer period as the authority may allow;

and, in any case where the notice relates to more than one relevant contribution period included in a relevant absence which occurred in consequence of a single trade dispute, the notice is of no effect unless it is given in respect of all the relevant contribution periods.

(5) A period of absence from duty without remuneration (otherwise than on leave of absence) does not count as a period of membership unless—

(a) it was a relevant absence, and

(b) the amount specified in paragraph (2) has been paid in respect of every relevant contribution period all or part of which was included in that relevant absence.

(6) Where the amount specified in paragraph (2) has been paid in respect of a relevant contribution period, so much of any relevant absence as was included in that period may count as a period of membership, whether or not a contract of employment continued to subsist during the relevant absence or any part of it.

(7) Where a person to whom this regulation applies dies before the end of the period of three months specified in paragraph (4)(a) without giving notice under paragraph (2), his personal representatives may give that notice.

(8) For the purposes of paragraph (1)—

(a) where—

(i) a person’s contract of employment is terminated in consequence of a trade dispute, and

(ii) not later than the day after the end of the trade dispute, he again becomes an employee of the same LGPS employer and a member,

notwithstanding the termination, he is to be treated as having been absent from duty;

(b) it is immaterial whether or not—

(i) the person was participating in or financing or otherwise directly interested in the trade dispute, or

(ii) the employing authority were a party to the trade dispute.

(9) In this regulation “trade dispute” has the meaning given by section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992(5).

Absence on reserve forces service

C8.—(1) Subject to the following provisions, this regulation applies where a person—

(a) ceases to be employed in the employment in which he is a member; or

(b) is granted leave of absence from duty in such an employment,

in order to perform relevant service; and, in relation to such a person, references to his former employment and employer are to that employment and his employer in that employment.

(2) Subject to paragraph (3), where this regulation applies—

(a) if the person is entitled under any provision of these regulations to pay additional contributions, make payment by instalments or make any other payment (except by lump sum) to the appropriate pension fund, he shall be treated for the purposes of these regulations as if he has paid them throughout the period of his relevant service;

(b) if (and only if) during any period of the person’s relevant service the total of—

(i) his pay for performing relevant service (including marriage, family and similar allowances), and

(ii) any payments under Part V of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951(6), equals or exceeds the remuneration he would have received if he had continued to be employed in his former employment, he shall pay to the appropriate pension fund all such contributions and payments as would have been payable under these regulations if he had so continued; and

(c) subject to regulation C25, all contributions and payments so made shall be treated for the purposes of these regulations as if made under the provision under which they would have been made if he had so continued.

(3) Paragraph (2) does not apply to contributions payable under regulation C24 (additional voluntary contributions), but if—

(a) before the commencement of his relevant service the person was paying such contributions which were not to be used to provide benefits payable in the event of death, and

(b) he has not elected to discontinue making those contributions,

he may continue to make those contributions during the period of his relevant service.

(4) Where this regulation applies to a person then, subject to paragraph (6)—

(a) the period of relevant service shall be counted as a period of membership in relation to his former employment;

(b) if during that period he dies or attains his normal retirement age, he shall be deemed to have been serving in that employment at that time; and

(c) if during that period he becomes incapable of discharging the duties of that employment by reason of permanent ill-health, injury or infirmity of mind or body, he shall be deemed to have been so serving at the time when he ceased to perform relevant service.

(5) Where—

(a) a person to whom this regulation would otherwise apply is not a member when he ceases his employment or begins his leave of absence from it, but

(b) before doing so he has duly made an application under regulation B10 or B13 to become a member,

then—

(i) that application shall continue to have effect despite his so ceasing or his leave of absence so beginning and this regulation shall apply to him as if he were a member at that time, but

(ii) the period before the date on which his application takes effect shall be excluded from his relevant service.

(6) This regulation does not apply to any person in respect of any period of relevant service—

(a) after the date on which he elects to receive a return of contributions under regulation C21; or

(b) if he elects that it is not to do so by giving notice in writing to the appropriate administering authority not later than 12 months after the end of the period of relevant service to which the notice relates (or within such longer period as they may allow).

(7) Subject to paragraph (6), in this regulation “relevant service” means service (other than for the purposes of training only)—

(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 14(1) or 34 of the Reserve Forces Act 1980(7);

and paragraph (b) applies whether or not the obligation or undertaking is legally enforceable, but not in the case of an obligation or undertaking—

(i) to accept a permanent commission or a commission for a fixed term; or

(ii) to serve for the purposes of periodical training.

(8) In paragraph (7)—

(a) “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;

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

(b) 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

(c) in respect of that and other service.

Additional payments to improve benefits

Payments to increase membership: calculation of all benefits

C9.—(1) Subject to the following provisions, if a member elects at any time to make additional periodical payments under this regulation, then, in relation to the relevant employment, he may count as a period of membership (but not for the purposes of determining entitlement to any benefit)—

(a) if he completes the additional payments, the period in respect of which payment was made; and

(b) if he begins making the additional payments but does not complete payment, an additional period calculated in accordance with regulation C19.

(2) The additional payments—

(a) are payable from the member’s next birthday after the date of the election at such intervals as the appropriate administering authority may determine; and

(b) cease to be payable on the day before—

(i) his NRD; or

(ii) if his NRD is not his birthday, the last birthday before his NRD.

(3) An employee may not make an election under paragraph (1) if—

(a) the appropriate administering authority have resolved that he should undergo a medical examination at this own expense and he has not done so to their satisfaction; or

(b) he was precluded by regulation D13(5)(b) of the 1974 regulations from making an election under that regulation.

(4) An election under this regulation shall be made by notice in writing given to the appropriate administering authority.

Maximum length of additional periods to be purchased under regulation C9

C10.—(1) Subject to regulation C27, the maximum length of the period in respect of which payment may be made under regulation C9 in respect of a person is the length (expressed in years and fractions of a year) of the period (if any) by which his potential period of membership falls short of the relevant maximum number of years at the appropriate time.

(2) In paragraph (1) “potential period of membership”, in relation to any person, means the period which (apart from the payment) he would be entitled to count as a period of membership in relation to his local government employment if he continued in it until he attained the age of 65.

(3) Subject to paragraph (4) and to Schedule C5 (limitations on contributions and benefits), “the relevant maximum number of years”, in relation to any person, means 40 years.

(4) In the case of a person (other than an excluded member) who at the appropriate time was entitled to, or had received, superannuation benefits in respect of any local government employment or under any non-local government scheme, the relevant maximum number of years specified in paragraph (3) in relation to him is to be reduced, in accordance with the certificate of an actuary, to the extent necessary to ensure that the aggregate of—

(a) the relevant income benefits; and

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

will not exceed two-thirds of his pensionable remuneration.

(5) In paragraph (4)—

“excluded member” means a member whose pensionable remuneration in the first year of his employment during which he is a member does not exceed one quarter of the permitted maximum for the purposes of section 590C of the Income and Corporation Taxes Act 1988(8) (earnings cap) for the year or assessment in which that first year ends);

“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(9);

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

(i)

the actuarial value, expressed as an annuity payable to him, of the pension benefits mentioned in paragraph (4);

(ii)

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

(iii)

the actuarial value, expressed as an annuity payable to him, of he part of his retirement grant attributable to such membership; and

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

(i)

his retirement grant; and

(ii)

any lump sum comprised in the pension benefits mentioned in paragraph (4).

(6) For the purposes of paragraphs (4) and (5)—

(a) it is to be assumed that the person will, until his NRD, continue in the same local government employment and on the same terms and condition is (including, in particular, his scale of remuneration) as at the date of the election;

(b) any period of membership on or after the date of the election 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.

(7) The appropriate time is—

(a) except where paragraph (b) applies, the first day of the earliest period that the person is entitled to count as a period of membership in relation to his local government employment; or

(b) if that period is—

(i) a period of service under an officer of a LGPS employer or former local authority; or

(ii) a period during which the person was subject to a non-local government scheme other than one which was or become a statutory scheme,

the first day of the earliest period of local government employment that the person is entitled to count as a period of membership in relation to his local government employment.

Amounts of payments under regulation C9

C11.—(1) The amount to be paid by way of additional periodical payments by a member who has made an election under regulation C9(1) in respect of an additional period is the appropriate percentage of his remuneration for the time being, multiplied by the length of that period.

(2) For the purposes of paragraph (1)—

(a) “the appropriate percentage”, in relation to a member, is the percentage in the relevant Table in Part I of Schedule C3 appropriate to his age on his next birthday after the date of the election and to his normal retirement age; and

(b) the lengths of periods are to be expressed in complete years and any fraction of a year.

Purchase by part-time employees of additional periods under regulation C9

C12.—(1) Subject to the following provisions of this regulation, where a person makes an election under regulation C9 in relation to a part-time employment to make additional payments in respect of a period—

(a) the period he may count as a period of membership under paragraph (1) of that regulation, is the appropriate fraction of the period he would be entitled to count in respect of that period if he were a whole-time employee (“the notional whole-time period”);

(b) the maximum which applies in his case by virtue of regulation C10, is the appropriate fraction of the maximum which would apply in his case if he were a whole-time employee; and

(c) the amount to be paid by him in accordance with regulation C11 shall be calculated in the same manner as if he were a whole-time employee purchasing the notional whole-time period, but taking his remuneration as his actual remuneration for the time being (and not the remuneration he would have been paid for a single comparable whole-time employment).

(2) In paragraph (1) “appropriate fraction”, in relation to an employee, means the fraction of which the numerator is the number of his contractual hours and the denominator is the number of contractual hours of a single comparable whole-time employment.

(3) Where—

(a) any person has made an election under regulation C9 which has effect in relation to part-time employment; and

(b) that employment ceases to be part-time and becomes whole-time employment;

then—

(i) he may continue to pay contributions under the election in relation to the whole-time employment at the same percentage of his pensionable remuneration as the contributions he paid in relation to the part-time employment; and

(ii) the additional period in respect of the contributions paid in relation to the whole-time employment shall be calculated on the same basis as if he had been in that whole-time employment when he made the election.

(4) Where—

(a) any person has made an election under regulation C9 which has effect in relation to whole-time employment; and

(b) that employment ceases to be whole-time and becomes part-time employment;

then—

(i) he may continue to pay contributions under the election in relation to the part-time employment at the same percentage of his pensionable remuneration as the contributions he paid in relation to the whole-time employment; and

(ii) the additional period in respect of the contributions paid in relation to the part-time employment shall be calculated on the same basis as if he had been in that part-time employment when he made the election.

(5) The previous provisions of this regulation do not apply to an election made by a person under regulation C6 of the 1986 regulations (or having effect as if so made) but, if he so elects by notice in writing to the appropriate administering authority, then—

(a) payments made by him on and after the date when the election takes effect shall be made by reference to his actual remuneration for the time being; and

(b) the period of membership which he is entitled to count by virtue of them shall be calculated on the same basis as if the previous provisions of this regulation had always applied in respect of his election.

(6) A person may not make an election under paragraph (5) after the beginning of the period of one year ending with his NRD.

Payments to avoid reduction of retirement grant and death grant

C13.—(1) Subject to the following provisions of this regulation, a member—

(a) whose retirement grant would be subject to reduction under paragraph 2, 3(1) or 4(1) of Schedule D2 (reduction in standard retirement grant on account of contingent spouse’s pension); or

(b) whose death grant would be subject to reduction under regulation E5 (surviving spouse deductions from certain death grants),

may, by notice in writing given to the appropriate administering authority, elect to make additional periodical payments under this regulation in order to avoid all or part of the reduction—

(i) in his retirement grant; and

(ii) in any death grant that may become payable under Part E.

(2) A notice under paragraph (1) shall specify whether the reduction is to be avoided in respect of the whole or only a specified part—

(a) in the case of male member, of his membership before 1st April 1972 or before any earlier date on which—

(i) he became a widower; or

(ii) he was judicially separated from his wife; or

(iii) his marriage was dissolved;

(b) in the case of a female member who has given notice under paragraph 1(1) of Schedule F1, of her membership which is or is treated for the purposes of paragraph 3(2) of Schedule D2 as being membership—

(i) before 1st April 1972;

(ii) after 31st March 1972 but before 6th April 1988; and

(c) in the case of a female member who has made such an election as is mentioned in paragraph 2 of Schedule F1, of her membership before 1st April 1972.

(3) An election may not be made in respect of a period of membership of less than one year unless—

(a) the whole of the person’s period of membership—

(i) in the case of a person described in paragraph (2)(a) or (c), before 1st April 1972; or

(ii) in the case of a person described in paragraph (2)(b), before 6th April 1988; or

(b) where he has previously made an election in respect of part of that membership, the remainder of it, amounts to less than one year.

(4) An election under this regulation may be made by any person from time to time, but not—

(a) if in the particular case the appropriate administering authority so resolve, without his having, at this own expense, undergone a medical examination to their satisfaction; nor

(b) after making an election under regulation C8(5)(b) of the 1986 regulations (or any corresponding previous provision) to make payment by instalments.

(5) Where—

(a) this regulation applies to a woman by virtue of her having made such an election as is mentioned in paragraph 2 or Schedule F1;

(b) she has made (or is treated as having made) an election under paragraph (1) or regulation C8 of the 1986 regulations (or any corresponding previous provision);

(c) this regulation subsequently applies to her by virtue of paragraph 3(1) of Schedule D2; and

(d) she makes a further election under paragraph (1),

then—

(i) any payments made under this regulation pursuant to the election referred to in paragraph (b) shall be deemed to have been made pursuant to the further election, and

(ii) any additional sums payable by her pursuant to the further election shall be determined accordingly by the fund’s actuary.

Payments to increase widower’s pension by counting membership before 6th April 1988

C14.—(1) Subject to the following provisions of this regulation, a member who—

(a) is a married woman,

(b) is entitled to count a period of membership before 6th April 1988, and

(c) was not a member on 27th July 1989 or has not been a member continuously since that date,

may, by notice in writing given to the appropriate administering authority, elect to make additional periodical payments in order to count all or part of her period of membership before 6th April 1988 as membership for the purposes of calculating a widower’s pension in accordance with regulation F8(2)(b)(iii).

(2) A notice under paragraph (1) shall specify whether it relates to the whole or only a specified part of the women’s period of membership which is membership—

(a) before 1st April 1972, or

(b) after 31st March 1972 but before 6th April 1988, or is treated as being such membership for the purposes of paragraph 3(2) of Schedule D2 (reduction in standard retirement grant on account of contingent spouse’s pension).

(3) A notice under paragraph (1) may not be given in respect of a period of less than one year unless—

(a) the whole of the woman’s period of membership before 6th April 1988, or

(b) where she has previously given a notice in respect of part of that membership, the remainder of it,

amounts to less than one year.

(4) Notice under paragraph (1) may be given by a member on more than one occasion but, unless the appropriate administering authority otherwise agree, it shall be given before the expiry of the period of 12 months beginning—

(a) with the date of any marriage or re-marriage, or

(b) if her husband becomes permanently incapacitated by reason of ill-health or infirmity of mind or body and wholly or mainly dependent on her, with the date on which a medical certificate to that effect is received by the appropriate administering authority.

(5) For the purposes of paragraph (1)(c), the reference to a woman having been a member continuously includes a reference to a woman who, having ceased to be a member became or becomes a member again—

(a) within one month of so ceasing, or

(b) within one month of returning to work in accordance with section 39 or 41 of the Employment Protection (Consolidation) Act 1978(10) (which confer the right to return to work following pregnancy or confinement).

Amounts of payments under regulations C13 and C14

C15.—(1) The amount to be paid by a member who has under regulation C13 or C14 elected to make additional periodical payments in respect of a period of membership specified in the notice of election is—

(a) in the case of a male member, the appropriate percentage of his remuneration for the time being, multiplied by the length of that period;

(b) in the case of a female member who made such an election as is mentioned in paragraph 2 of Schedule F1, the appropriate percentage of her remuneration for the time being, multiplied by four times the length of the period of membership before 1st April 1972 specified in her notice of election; and

(c) in the case of a female member who has given notice under paragraph 1 of Schedule F1 or regulation C14, the aggregate of—

(i) the appropriate percentage of her remuneration for the time being, multiplied by three times the length of the period of membership specified in her notice of election which is membership before 1st April 1972; and

(ii) the appropriate percentage of her remuneration for the time being, multiplied by the length of the period of membership specified in her notice of election which is membership after 31st March 1972 but before 6th April 1988.

(2) For the purposes of this regulation “the appropriate percentage” is—

(a) in the case of a male member, the percentage specified in the relevant Table in Part III of Schedule C3 appropriate to his age on his next birthday after the date of the election and, in the case of paragraph (1)(a), to his specified birthday; and

(b) in the case of a female member, the percentage specified in the relevant Table in that Part of that Schedule appropriate to her age on her next birthday after the date of the election and, in the case of the paragraph (1)(b) or (c), to her specified birthday;

and in this paragraph “specified birthday” means the birthday specified in accordance with regulation C16(1).

(3) For the purposes of this regulation the lengths of periods are to be expressed in complete years and any fraction of a year.

(4) References in paragraph (1)(c)(i) and (ii) to a period of membership which is a period before 1st April 1972 or, as the case may be, after 31st March 1972 but before 6th April 1988 include references to a period treated for the purposes of paragraph 3(2) of Schedule D2 as being such a period.

Further provisions as to making of payments under regulations C13 and C14

C16.—(1) A member shall specify in a notice of election to make additional periodical payments under regulation C13 or C14 the birthday (“the specified birthday”) up to which additional payments are to be paid, which may be—

(a) his 65th birthday, or

(b) any earlier birthday which is or is after his NRD.

(2) Such additional periodical payments are to be paid, at such intervals as the appropriate administering authority may determine, from the member’s next birthday after the date of the election.

No elections to make payments after 64

C17.  A person may not make an election under regulation C9, C13 or C14 if he has attained the age of 64.

Incomplete payments and return of contributions

Notice to discontinue payments

C18.  Payment in accordance with regulation C9(2) or C16(2) may be discontinued if the member notifies the appropriate administering authority and the employing authority in writing that he wishes it to be discontinued.

Uncompleted periodical payments

C19.—(1) This regulation applies where—

(a) a member has made an election under regulation C9(1), C13 or C14 to make additional periodical payments,

(b) he has commenced payment,

(c) before the presumed termination date a relevant event occurs, and

(d) in the case of payments under regulation C9(1), any payment made to him under regulation C21 does not include the amount already paid by him under regulation C9(2).

(2) In paragraph (1) “presumed termination date” means—

(a) in the case of an election under regulation C9(1), the member’s NRD, and

(b) in the case of an election under regulation C13 or C14, the birthday specified under regulation C16(1).

(3) For the purposes of this regulation the relevant events are—

(a) the discontinuance of payment under regulation C18, and

(b) where there has been no such discontinuance of payment—

(i) the member’s ceasing to hold his employment, and

(ii) the death of the member while in local government employment.

(4) Where the relevant event is—

(a) the death of the member, or

(b) his ceasing to hold his employment by reason of permanent ill-health or infirmity of mind or body,

he is to be treated as having completed payment in accordance with regulation C9(2) or, as the case may be, C15 and C16.

(5) Where—

(a) the relevant event is the member’s ceasing to hold his employment,

(b) condition (a) or (b) in regulation D6(2) is satisfied,

(c) his employment ends not less than 12 months after the date of receipt of his notice of election, and

(d) he gives notice in writing for the purpose of the appropriate administering authority not later than the expiry of the period of three months beginning on the day after the last day of his employment,

then, if he pays to the appropriate pension fund, within the period of one month beginning on the date on which he is notified by that authority of the amount calculated by the fund’s actuary to represent the capital value of the additional periodical payments remaining to be paid, a sum equal to that amount, he shall be treated as having completed payment in accordance with regulation C9(2) or, as the case may be, C15 and C16.

(6) An administering authority may accept a notice given under paragraph (5)(d) notwithstanding that paragraph (5)(c) is not satisfied.

(7) Subject to paragraph (9), where—

(a) the relevant event is discontinuance of payment under regulation C18, or

(b) the relevant event is the member’s ceasing to hold his employment and neither paragraph (4)(b) nor paragraph (5) applies,

the period of membership in respect of which the election was made is to be treated as having been the appropriate proportion of the period in respect of which it was originally made.

(8) In paragraph (7) “appropriate proportion” means the proportion which the length of the period during which additional payments have been paid bears to the length of the period during which they were to have been paid (each period being expressed in complete years and any fraction of a year).

(9) Where, apart from this paragraph, paragraph (7)(b) would apply and the member, having elected to make additional payments under C9(1), C13 or C14—

(a) has within 12 months after ceasing to hold his employment again entered local government employment, without having—

(i) become entitled in relation to the first employment to the payment of any benefit,

(ii) received any payment under regulation C21 which includes the amount already paid by him under regulation C9, C13 or, as the case may be, C14, or

(iii) made a request for earlier payment under regulation C21(6).

(b) has not made an election for the purposes of regulation D12(1)(c) (retention of right to preserved benefits), and

(c) within three months after his again entering local government employment pays to his new employing authority an amount equal to any additional periodical payments that would have been payable if he had not ceased to hold the first employment,

then, the election under regulation C9(1), C13 or, as the case may be, C14 continues to have effect as if the relevant event had not occurred.

Effect of opting out of membership on certain additional payments

C20.—(1) Where a member—

(a) is making additional periodical payments by virtue of having made an election under regulation C9(1), C13 or C14, and

(b) gives notification in accordance with regulation B12 (leaving the Scheme),

then—

(i) no further additional periodical payments shall be payable from the day on which he ceases to be a member; and

(ii) the benefits to which he is entitled in relation to those payments shall be calculated in accordance with regulation C19(7) and (8) as if the payments had been discontinued under regulation C18.

(2) Paragraph (1) shall not preclude a person who has elected under regulation B12 making a further election under regulation C9(1), C13 or C14 after again becoming a member.

Return of member’s contributions in certain cases

C21.—(1) If a member who is entitled to count a total period of membership of less than 2 years—

(a) ceases to be employed by a LGPS employer and on so ceasing does not become entitled to a retirement pension (or only does so by virtue of regulation D19); or

(b) ceases to be a member by virtue of a notification under regulation B12,

and does not, within one month and one day after so ceasing, become a member again in the employment of that or any other LGPS employer (except one by whom he is concurrently employed when he so ceases), then, subject to paragraphs (4) and (5), he is entitled to receive a payment under paragraph (2).

(2) A payment under this paragraph is a payment out of the appropriate pension fund of a sum equal to—

(a) the aggregate amount of the person’s contributions to the fund, and

(b) if he ceased to be employed for any reason other than—

(i) his voluntary resignation, or

(ii) his resignation or dismissal in consequence of inefficiency or an offence of a fraudulent character or misconduct,

compound interest on the amount mentioned in paragraph (a), calculated, to the date on which he ceased to be employed, at the appropriate rate for the period, increased where appropriate as mentioned in regulation K17.

(3) For the purposes of paragraph (2), “the appropriate rate” means nine per cent. per annum with yearly rests on 31st March.

(4) Paragraph (1) does not apply to a person who ceases to be employed in consequence of—

(a) an offence of a fraudulent character, or

(b) grave misconduct,

in connection with his employment, but the employing authority may direct the payment out of the appropriate pension fund—

(i) to him, or

(ii) where paragraph (a) applies, to him or to his spouse or any dependant of his,

of a sum equal to the whole or a part of the aggregate amount of his contributions to the fund.

(5) No payment shall be made under this regulation to a person—

(a) who is for the time being entitled to be paid, or has been paid, an ill-health retirement grant under regulation D8, or under regulation E4 of the 1986 regulations or regulation E20 of the 1974 regulations, or

(b) in relation to whom a transfer value from the trustees or managers of a personal pension scheme or self-employed pension arrangement has been and remains credited to the appropriate pension fund.

(6) A payment to a person under paragraph (1) shall be made—

(a) at the end of the period of 12 months following the termination of his employment, or

(b) in accordance with any written request received by the administering authority for earlier or later payment, (not being earlier than one month and two days after—

(i) the termination of the employment, or

(ii) in the case of a person referred to in paragraph (1)(b), the notification given under regulation B12).

(7) The administering authority shall deduct from any payment under this regulation any tax to which they may become chargeable under section 598 of the Income and Corporation Taxes Act 1988(11) (charge to tax on repayment of employee’s contributions) and returned contributions may be subject to reduction under paragraph 11 of Schedule C6.

Meaning of “aggregate amount of contributions” for purposes of regulation C21

C22.—(1) In regulation C21 references to the aggregate amount of a person’s contributions to a pension fund include references to the contributions and amounts specified in paragraph (2) in so far as they—

(a) have not been returned to the person or, if returned, have subsequently been repaid by him,

(b) are attributable to a period of membership which might have counted under these regulations in relation to the employment he has ceased to hold, and

(c) are not attributable to any earlier period of membership in respect of which a benefit has been paid under Part D, E, F or G of these regulations or the corresponding provisions of the 1986 regulations or the 1974 regulations.

(2) The contributions and amounts mentioned in paragraph (1) are—

(a) any contributions or payments paid by him to any pension fund—

(i) under regulation C4, C5 or C6, or

(ii) under regulation C2, C3 or C3A of the 1986 regulations; and

(b) any amount paid by him—

(i) by way of additional contributory payments or added period payments, or

(ii) under regulation C7, C13 or C14, or

(iii) under regulation C4, C6A, C7, C7A, C8 or C8A of the 1986 regulations.

Effect of return to local government on right to a return of contributions

C23.  A person’s right to a payment under regulation C21 is extinguished if—

(a) after leaving local government employment with a right to such a payment he returns to such employment without having received the payment, and

(b) he has not given written notice to his previous fund authority—

(i) before the expiry of the period of three months beginning with the date on which he returns to such employment, or

(ii) within such longer period as his previous fund authority and, if different, his new fund authority may allow,

that he wishes to receive an immediate payment.

AVCs

Additional voluntary contributions

C24.—(1) Subject to regulation C27, a member may at any time elect to pay contributions under this regulation in addition to those provided for by the previous regulations in this Part.

(2) Schedule C4 shall have effect—

(a) in relation to such an election and in relation to contributions payable under this regulation; and

(b) in relation to receipt of a transfer value in respect of an additional voluntary contributions provision or an additional voluntary contributions scheme (so far as permitted by regulation K13(2)(b)(i)).

(3) In these regulations—

“additional voluntary contributions provision” means a provision of an occupational pension scheme approved by the Commissioners of Inland Revenue under section 591 of the Income and Corporation Taxes Act 1988(12) (which provides for the payment by employees of voluntary contributions);

“additional voluntary contributions scheme” means a scheme approved by the Commissioners of Inland Revenue under that section, to which an employer is not a contributor and which provides benefits additional to those provided by an occupational pension scheme.

Deduction and recovery of contributions

Deduction and recovery of member’s contributions

C25.—(1) An employing authority may deduct from the remuneration payable by them to a person—

(a) contributions or payments payable by him under regulations C4, C5 and C6,

(b) any amount payable by him under regulation C7,

(c) any instalments or additional periodical payments payable by him to the appropriate pension fund, and

(d) contributions payable by him under regulation C24.

(2) The former employer of a person—

(a) by whom sums are payable under regulation C8(2), or

(b) in respect of whom any sums are paid under paragraph 6(4) of Schedule C4,

may deduct those sums from any payment the employer makes to that person under Part V of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951(13), so far as those sums are payable in respect of the period in respect of which that payment is made.

(3) If and so far as deductions are not made under paragraph (1) or (2), the appropriate administering authority may recover any sum remaining due—

(a) as a simple contract debt in any court of competent jurisdiction (but, in the case of a sum payable under regulation C8 or paid under paragraph 6(4) of Schedule C4, only if it is not paid within 12 months of the person ceasing to perform relevant service as defined in that regulation), or

(b) by deducting it from any payment by way of benefits to or in respect of the person in question under these regulations.

Statements as to remuneration not received from employing authority

C26.—(1) A member who receives any part of his remuneration otherwise than from the employing authority shall provide the employing authority with half-yearly statements of his receipts in respect of that part.

(2) The statements shall—

(a) relate to the periods 1st April to 30th September and 1st October to 31st March, and

(b) be provided not later than 31st October and 30th April respectively.

(3) As soon as is reasonably practicable after receiving a request in writing from the employing authority the member shall provide them with a statutory declaration verifying the correctness of any statement specified in the request.

Limitations on payments

Limitation of payments

C27.  Schedule C5 has effect for the limitation, in certain circumstances, of payments under this Part and benefits under other Parts of these regulations.

Provisions concerning continuing payments under old legislation

Provisions concerning outstanding payments due under previous regulations

C28.  Schedule C6 shall have effect for the purpose of making provision concerning outstanding payments due under previous regulations.

PART D RETIREMENT BENEFITS

Preliminary definitions

“Pensionable remuneration”

D1.—(1) A person’s pensionable remuneration, in relation to a local government employment, is his remuneration for so much of the relevant period as he is entitled to count as a period of membership in relation to that employment.

(2) For the purposes of this regulation, the relevant period is—

(a) the year ending with the day on which the person ceases to be a member; or

(b) such other period as in accordance with Schedule D1 is to be regarded as the relevant period.

(3) Paragraph (1) has effect subject to the further provisions concerning pensionable remuneration in that Schedule and in Schedule C5 (limitations on contributions and benefits), and the provisions of paragraph 6 of Schedule M2 (modifications of regulations in respect of certain former contributory employees).

“Standard retirement pension” and “standard retirement grant”

D2.—(1) Subject to paragraphs (2) and (3), in these regulations, in relation to any person—

(a) “standard retirement pension” means a pension payable at an annual rate equal to one eightieth of his pensionable remuneration, multiplied by the length in years of his total period of membership; and

(b) “standard retirement grant” means a lump sum of an amount equal to three eightieths of his pensionable remuneration, multiplied by the length in years of his total period of membership.

(2) In the case of a person who—

(a) is entitled under regulation B16, B17 or C9 or paragraph 2(a) or 5 of Schedule C6 to count an additional period as a period of membership, and

(b) had at the appropriate time (within the meaning of regulation C10(7)) attained the age of 45 years,

then—

(i) the standard retirement pension is increased by one two hundred and fortieth of his pensionable remuneration, multiplied by the length in years of that additional period of membership, and

(ii) that additional period of membership is excluded from his total period of membership for the purposes of calculating the standard retirement grant.

(3) Paragraphs (1) and (2) are subject to regulations D7(2), D13, D17(5), D19(1), paragraph 3 of Schedule B6 and Schedule C5 (limitations on contributions and benefits); and paragraph (1)(b) is subject to the provisions of Schedule D2 (Part I of which relates to the preservation of rights under the 1974 regulations to increases in retirement grants and Part II of which relates to the reduction in retirement grants on account of contingent spouses' pensions).

“Statutory pension entitlement”

D3.  For the purposes of these regulations, a person has a “statutory pension entitlement” if—

(a) his total period of membership is not less than two years, or

(b) a transfer value from the trustees or managers of a personal pension scheme or self-employed pension arrangement has been and remains credited to the appropriate pension fund in relation to him.

References to members leaving employment to include optants-out

D4.  In this Part any reference to a member ceasing to hold a local government employment (except the reference in regulation D7) includes a reference to a person who was a member in such an employment but ceased to be so by virtue of a notification under regulation B12(2) (leaving the Scheme) ceasing to hold that employment, and other references in these regulations shall be construed accordingly.

Entitlement to immediate payment of benefits on retirement

Retirement on or after NRD

D5.  Subject to the following provisions of this Part, if a member who ceases to hold a local government employment—

(a) has a statutory pension entitlement, and

(b) has attained normal retirement age,

he is entitled—

(i) to a standard retirement pension, and

(ii) to a standard retirement grant,

which are payable immediately on his ceasing to hold that employment.

Early entitlement to retirement benefits: redundancy etc.

D6.—(1) Subject to the following provisions of this Part, if a member who ceases to hold a local government employment—

(a) has a statutory pension entitlement,

(b) has attained the age of 50, and

(c) satisfies one of the conditions mentioned in paragraph (2),

he is entitled—

(i) to a standard retirement pension and

(ii) to a standard retirement grant,

which are payable immediately on his ceasing to hold that employment, unless paragraph (3) applies.

(2) The conditions mentioned in paragraph (1)(c) are—

(a) that the employing authority certify that he has ceased to hold the local government employment—

(i) by reason of redundancy, or

(ii) in the interests of the efficient exercise of their functions, or

(b) that he was one of the holders of a joint appointment and his appointment has been terminated because the other ceased to hold his appointment.

(3) Where—

(a) the member’s entitlement is by virtue of his satisfying the condition mentioned in paragraph (2)(a),

(b) regulation 9 of the Local Government (Compensation for Redundancy) Regulations 1994(14) applies to him, and

(c) notification of compensation has been given to him under regulation 15 of those regulations,

he may by notice in writing to his employing authority waive his right under paragraph (1) to immediate payment of the standard retirement pension and standard retirement grant.

Early entitlement to retirement benefits: ill-health

D7.—(1) Subject to the following provisions of this Part, where a member who ceases to hold a local government employment—

(a) has a statutory pension entitlement, and

(b) is incapable of discharging efficiently the duties of that employment by reason of permanent ill-health or infirmity of mind or body,

he is entitled—

(i) to a standard retirement pension, and

(ii) to a standard retirement grant,

which are payable immediately on his ceasing to hold that employment.

(2) Where the member’s total period of membership is at least 5 years, he is to be treated for the purposes of this regulation as being entitled to count as a period of membership an additional period calculated in accordance with Schedule D3.

Ill-health retirement grants

D8.—(1) Where a member who ceases to hold a local government employment—

(a) is incapable of discharging efficiently the duties of that employment by reason of permanent ill-health or infirmity of mind or body,

(b) regulation D7 does not apply to him because he does not have a statutory pension entitlement, but

(c) his total period of membership is at least one year,

then, subject to paragraph (3), he is entitled to be paid a lump sum (“an ill-health retirement grant”).

(2) The amount of the ill-health retirement grant is the lesser of—

(a) one twelfth of the member’s pensionable remuneration, multiplied by the length in years of his total period of membership, or

(b) three eightieths of his pensionable remuneration, multiplied by the length in years of the total period of membership he would have been entitled to count if—

(i) he had continued as a member of the Scheme until the age of 65, and

(ii) any added period payments had been completed.

(3) Paragraph (1) does not apply if—

(a) the member ceased to hold his employment in consequence of any such offence or misconduct as are mentioned in regulation C21(4),

(b) apart from this regulation, the member is entitled to any payment out of the appropriate pension fund, other than an injury allowance under regulation 7 of the Benefits regulations or a return of contributions, or

(c) the member has received—

(i) any return of contributions (other than one in respect of which a payment was made under regulation E20(3) of the 1974 regulations),

(ii) a grant under regulation E20 of the 1974 regulations, or

(iii) has been granted any gratuity under Part K of the 1986 regulations, section 18 of the Act of 1953, or any local Act;

and where the grant to which a member would be entitled under paragraph (1), calculated in accordance with paragraph (2), is no more than the net amount he would receive if a return of contributions were made to him (including an increase under regulation K17 where that regulation applies), he shall instead be entitled to such a return of contributions (so increased where appropriate).

(4) If a person to whom this regulation applies is granted a gratuity under Part K of the 1986 regulations or under a local Act before an ill-health retirement grant is paid to him, he shall cease to be entitled to an ill-health retirement grant.

(5) Without prejudice to any subsequent decision under regulation J3 (decisions as to benefits), the appropriate administering authority shall notify a person who falls within paragraph (1) (other than one to whom paragraph (3)(a) applies), in writing and as soon as is reasonably practicable, of the amount of the ill-health retirement grant to which, subject to paragraph (4), he would be entitled if he were and remained a person to whom this regulation applies.

Retirement at or after 60 but before NRD

D9.—(1) Subject to the following provisions of this Part, if a member who ceases to hold a local government employment after attaining the age of 60 but before his NRD satisfies the relevant conditions, he is entitled—

(a) to a standard retirement pension (reduced in accordance with regulation D13), and

(b) to a standard retirement grant (so reduced),

which are payable immediately on his ceasing to hold that employment.

(2) The conditions referred to in paragraph (1) are—

(a) that the member fulfils one of the following requirements, namely—

(i) he has a statutory pension entitlement; or

(ii) he is treated by virtue of regulation K23(2) as having ceased to hold the employment on becoming subject in it to an approved non-local government scheme; and

(b) that he duly makes an election for his retirement benefits to be payable immediately on his ceasing local government employment.

(3) An election under this regulation shall be made by notice in writing to the employing authority given within the period of three months beginning with the day on which the member ceases to hold local government employment or, as the case may be, is treated as doing so.

No double entitlement.

D10.—(1) Where (apart from this regulation) any person would be entitled to a retirement pension or to a retirement grant under two or more regulations in respect of the same period of membership—

(a) he may elect by notice in writing, given to the employing authority before the expiry of the period of three months beginning with the day on which he becomes so entitled, under which provision he is to be paid those benefits; and

(b) if he makes no such election, the employing authority may notify him in writing of the provision.

(2) Paragraph (1) is without prejudice to regulations D17, D19 and D20 and section 13(6) of the Pension Schemes Act 1993(15).

Entitlement to deferred benefits: (“preserved benefits”)

Entitlement to deferred retirement benefits (“preserved benefits”)

D11.—(1) If a member who ceases to hold a local government employment—

(a) is not entitled under regulation D5, D6, D7 or D9 to retirement benefits which are payable immediately on his ceasing to hold that employment; and

(b) fulfils one of the following requirements, namely—

(i) he has a statutory pension entitlement; or

(ii) he is treated by virtue of regulation K23(2) as having ceased to hold the employment on becoming subject in it to an approved non-local government scheme;

then, subject to regulation D13, he becomes entitled in relation to that employment to a standard retirement pension and a standard retirement grant payable from the appropriate date; and in these regulations benefits to which a person becomes entitled under this paragraph by virtue of fulfilling one of the requirements mentioned in paragraph (b) and which have not yet become payable are called “preserved benefits”.

(2) For the purposes of paragraph (1) “the appropriate date”, in relation to any person, is his 65th birthday or, if earlier, the earliest of the following—

(a) his NRD;

(b) any date on which he becomes incapable, by reason of permanent ill-health or infirmity of mind or body, of discharging efficiently the duties of the employment he has ceased to hold;

(c) any date after he has attained the age of 50 years from which the employing authority determine on compassionate grounds that the benefits are to become payable;

(d) in the case of a person who has attained the age of 60 years, has ceased to be employed in local government employment and has duly elected to receive payment from the relevant date, that date.

(3) An election under paragraph (2)(d) shall be made by notice in writing to the employing authority given within the period of three months beginning with the relevant date.

(4) In this regulation “relevant date”, in relation to any person, means—

(a) the date on which he attains the age of 60, or

(b) if later, the date of his ceasing to be employed in local government employment.

Further provisions about preserved benefits

D12.—(1) A person who is entitled to preserved benefits under regulation D11(1) ceases to be entitled to them—

(a) if—

(i) the whole of the aggregate amount of his contributions to the appropriate pension fund has been returned to him (with or without interest) under regulation C21 of these regulations or regulation C12 of the 1986 regulations or regulation C8 of the 1974 regulations, and

(ii) after receiving the return of contributions, he has no further right to count any period of membership to which a transfer value accepted under regulation K13 of the regulations or regulation J8 of the 1986 regulations or regulation N7 of the 1974 regulations relates,

(b) if rights in respect of the period of membership he was entitled to count in relation to the employment he ceased to hold have been transferred to a non-local government scheme, a personal pension scheme, a self-employed pension arrangement, a retirement annuity contract or an appropriate policy by virtue of the payment of a transfer value,

(c) if he re-enters local government employment (unless he elects to remain entitled to those benefits), or

(d) if the body who employed him in the employment which he ceased to hold certify under paragraph 4 of Schedule D1 that on ceasing to hold it he suffered a material reduction in remuneration.

(2) An election by a person for the purposes of paragraph (1)(c) shall be made by giving notice in writing—

(a) before the expiry of the period of three months beginning with the date on which he re-enters local government employment, or

(b) such longer period as the administering authority or, where there is a change of fund, the administering authorities of both funds, may allow,

to the appropriate administering authority or, where there is such a change, to both of them.

Adjustments to standard benefits

Reduction of pensions payable early by virtue of elections etc.

D13.—(1) This regulation applies where benefits are payable to a person—

(a) under regulation D9, or

(b) under regulation D11 in a case where the appropriate date is determined under paragraph (2)(d) of that regulation,

and the member’s or former member’s pension advancement period is at least one year.

(2) Where this regulation applies, then, subject to regulation D17, the standard retirement pension and standard retirement grant, calculated in accordance with regulation D2 and Schedule D2, are reduced by the appropriate percentage for the member’s pension advancement period.

(3) In paragraph (2) “the member’s pension advancement period”, in relation to a person, means the period remaining from the date from which the benefits became payable to his NRD.

(4) In paragraph (2) “the appropriate percentage” means the percentage shown in the appropriate column in the following Table.

Table

Pension advancement period (years)	Percentage reduction
	Retirement pension
	Male	Female
			Retirement grant
			Both Sexes
0	0	0	0
1	8	7	2
2	15	13	5
3	22	18	7
4	28	23	9
5	33	27	11

(5) Where the member’s pension advancement period is not an exact number of years, the necessary interpolations shall be made in the Table.

Surrender of part of retirement pension in favour of spouse or dependant

D14.—(1) Subject to the following provisions of this regulation and to regulation D17, a person who—

(a) has become entitled to receive payments in respect of a retirement pension, or

(b) holds local government employment and has attained normal retirement age,

may surrender, as from the relevant date, in favour of his spouse or any dependant of his (“the beneficiary”), a part of the retirement pension which is or may become payable to him, and a person who has surrendered part of a retirement pension may surrender further parts of it.

(2) The part of the retirement pension surrendered on any occasion—

(a) shall be an exact number of pounds, and

(b) shall secure for the beneficiary a pension of at least £97.50 per annum.

(3) The surrendered part (together with any parts previously surrendered) shall not exceed—

(a) the amount which would result in the reduction of the retirement pension to less than the rate of the pension which would become payable to the beneficiary, or

(b) one third of the retirement pension, or

(c) where Schedule D6 (former teachers) applies, one third of the retirement pension receivable after reduction under that regulation.

(4) Where a person who has made a surrender under this regulation dies, an annual pension at a rate which is (according to tables to be prepared from time to time by the Government Actuary) actuarially equivalent at the relevant date to the value of the surrendered part of the retirement pension becomes payable to the beneficiary.

(5) For the purposes of this regulation “the relevant date” means—

(a) the date of becoming entitled to receive payments in respect of the retirement pension; or

(b) in the case of a person who dies while still in local government employment, immediately before the date on which he died.

(6) Where the person surrendering holds local government employment and has attained normal retirement age, references in paragraphs (2) and (3) to the retirement pension are references to the retirement pension which would become payable if he were to cease to hold his employment on the day on which the surrender takes effect.

(7) Schedule D4 shall have effect for the purpose of making further provision as respects the procedure for surrenders under this regulation.

Adjustments to retirement pensions and grants for certain re-employed pensioners

D15.  Schedule D5 shall have effect for the purpose of making provision as to the retirement benefits in respect of certain pensioners who are re-employed by LGPS employers; and the provisions of this Part have effect subject to Part I of that Schedule (reduction of retirement pensions), Part II of that Schedule (combined benefits) and Part III of that Schedule (separate benefits).

Reduction of retirement pensions of certain former teachers.

D16.  The provisions of Schedule D6 shall have effect as respects the reduction in pensions of certain former teachers.

Overriding provisions (contracting-out and Finance Act requirements, etc.)

Guaranteed minimum pensions for members in contracted-out employment, etc.

D17.—(1) Where—

(a) the employment of a member in any local government employment is contracted-out employment; and

(b) the member has a guaranteed minimum under section 14 of the Pension Schemes Act 1993(16) in relation to benefits under these regulations,

then paragraphs (2) to (4) apply as respects the member’s employment.

(2) The member who ceases to hold his local government employment is from the date on which he attains state pensionable age entitled to a pension at a weekly rate equal to that guaranteed minimum (unless on ceasing to hold his local government employment he is entitled to a retirement pension at a higher rate).

(3) If the member—

(a) attains state pensionable age while in local government employment;

(b) continues in the same employment for a further period of 5 years; and

(c) does not then cease to hold it,

then he is entitled from the end of that period to so much of his retirement pension as equals that guaranteed minimum (unless he consents to a postponement of the entitlement).

(4) The guaranteed minimum referred to in paragraphs (2) and (3) shall, so far as it is attributable to earnings factors for the tax year 1988 89 or for subsequent tax years, be increased in accordance with the requirements of section 109 of the Pension Schemes Act 1993.

(5) A person’s retirement pension is not to be reduced under regulation D13 to less than the aggregate of—

(a) any minimum rate of equivalent pension benefits applicable under the Insurance Acts, and

(b) the annual rate obtained by multiplying one eightieth of the person’s pensionable remuneration by the length in years of the whole period of the person’s membership in contracted-out employment during the period beginning with the relevant date and ending with 30th April 1995.

(6) In paragraph (5) “the relevant date” means—

(a) in the case of a man, 17th May 1990; and

(b) in the case of a woman, 6th April 1978.

(7) Where a person’s local government employment is or was contracted-out employment, a surrender under regulation D14 (together with any previous surrenders) shall not result—

(a) in the annual rate of the retirement pension being less than one eightieth of the pensionable remuneration, multiplied by the length in years of the whole period of his membership in contracted-out employment after 5th April 1978, or

(b) (disregarding the effect of the preceding paragraphs) in the weekly rate of the retirement pension being less than his guaranteed minimum, if any.

(8) Where a person making a surrender under regulation D14—

(a) is in local government employment,

(b) has attained normal retirement age, and

(c) has a statutory pension entitlement,

references in paragraph (7) to the retirement pension are references to the retirement pension which would become payable if he were to cease to hold his employment on the day on which the surrender takes effect.

(9) Where this regulation applies it overrides any provision in these regulations to the extent to which it conflicts with it, except—

(a) regulation D15 and Part I of Schedule D5 (reduction of retirement pension in the case of certain re-employed pensioners);

(b) regulation H4 (forfeiture of rights); and

(c) regulation H5 (commutation of small pensions).

Revaluation of guaranteed minimum in certain cases

D18.—(1) This regulation applies where—

(a) a person has ceased to be a member; and

(b) the guaranteed minimum in relation to his pension is appropriately secured (within the meaning of section 19 of the Pension Schemes Act 1993).

(2) The earnings factors of such a person shall be determined for the purposes of section 14(2) of that Act—

(a) by reference to the last order under section 21 of the Social Security Pensions Act 1975(17) or section 148 of the Social Security Administration Act 1992(18) to come into force before the end of the tax year in which he ceased to be a member; and

(b) without reference to the last such order to come into force before the end of the final relevant year.

(3) The weekly equivalent mentioned in section 14(2) of the Pension Schemes Act 1993 is to be increased in accordance with any additional requirements for the time being prescribed for the purposes of section 55(5) of that Act (exclusion from liability to pay a limited revaluation premium).

(4) In this regulation “final relevant year” has the meaning given in section 16(5) of that Act.

Equivalent pension benefits

D19.—(1) If when a member ceased to hold a local government employment—

(a) he was not entitled in relation to that employment to a retirement pension under regulation D5, D6, D7, D9 or D11, and he receives a return of contributions,

(b) the whole or some part of his period of membership was in service in a non-participating employment or in service which relates to employment with a non-local government employer in a non-participating employment,

(c) a period of his service in a non-participating employment came to an end by reason—

(i) of the repeal of section 56(1) of the National Insurance Act 1965(19), or

(ii) of the provisions of regulation 2(2) of the National Insurance (Non-participation-Assurance of Equivalent Pension Benefits) Regulations 1960(20) (as modified by regulation 9(2)(a) or (b) of the National Insurance (Non-participation-Transitional Provisions) Regulations 1974(21)); and

(d) at some time during the settlement period (within the meaning of regulation 2 of those Regulations of 1974) he became, and has remained, assured of equivalent pension benefits,

then he is entitled in relation to that employment to an annual retirement pension payable at the rate of the equivalent pension benefits applicable to him in respect of any period of membership in service in a non-participating employment or which relates to service with a non-local government employer in a non-participating employment.

(2) A retirement pension to which a person has become entitled by virtue of paragraph (1) is payable from the first date on which he—

(a) has attained state pensionable age, and

(b) is no longer in any local government employment.

(3) For the purposes of these regulations a member to whom this regulation applies shall be treated as having ceased to hold the employment in respect of which he receives a return of contributions on the day before the date of receipt.

National insurance

D20.—(1) Subject to paragraph (2), where a pension is payable to a member who attains state pensionable age in respect of a period of service in a non-participating employment, which counts for the purpose of calculating any benefits payable to the member (other than excepted service), no provision in these regulations—

(a) for the surrender or assignment of a pension, or

(b) for the reduction, termination or suspension of a pension,

shall apply so as to reduce the pension below the minimum rate of equivalent pension benefits applicable in respect of that period of service under the Insurance Acts.

(2) Paragraph (1) does not apply to any provision for the reduction, termination or suspension of a pension, which is used for a purpose prescribed by regulations made, or deemed to have been made, under section 57(1)(c) of the National Insurance Act 1965 (equivalent pension benefits).

(3) For the purposes of paragraph (1) “excepted service”, in relation to any person, means any earlier period of such service as there mentioned, being service in respect of which—

(a) a payment in lieu of contributions has been made, or

(b) equivalent pension benefits satisfying the requirements of the Insurance Acts have already been assured to him.

Limitations on benefits etc.

D21.—(1) The provisions of this Part are subject to Schedule C5 (limitations on contributions and benefits) and to the general provisions in Part H.

PART E DEATH GRANTS

Death of a member

E1.—(1) If at the time of his death a person was a member, his personal representatives are entitled to receive a lump sum death grant.

(2) Where paragraph (1) applies the amount of the death grant is an amount equal to twice the deceased’s pensionable remuneration, less, in a case where a surviving spouse’s long-term pension is payable under Part F, the appropriate amount to be deducted under regulation E5.

Death of a deferred pensioner

Death grant: deferred pensioners

E2.—(1) If at the time of his death a person—

(a) was in local government employment and had a statutory pension entitlement, but was not a member by virtue of a notification under regulation B12(2) (leaving the scheme), or

(b) was entitled to preserved benefits, his personal representatives are entitled to receive a lump sum death grant.

(2) Where paragraph (1) applies the amount of the death grant is three eightieths of the deceased’s pensionable remuneration, multiplied by the length in years of the period of membership taken into account in calculating his retirement pension, less, in a case where a surviving spouse’s long-term pension is payable under Part F, the appropriate amount to be deducted under regulation E5.

Death of a pensioner

Death grant: pensioners with 10 years' or more membership

E3.—(1) If at the time of his death a person—

(a) was entitled to receive payments in respect of a retirement pension calculated by reference to a period of membership of 10 years or more (other than a pension under regulation D17 or D19), or

(b) would have been so entitled but for the operation of Schedule D5 (re-employed pensioners),

his personal representatives are entitled to receive a lump sum death grant.

(2) Where the deceased became entitled to the retirement pension otherwise than by virtue of regulation D9 or D11, the amount of the death grant is the greater of—

(a) the deceased’s pensionable remuneration, and

(b) three eightieths of his pensionable remuneration, multiplied by the length in years of the period of membership taken into account in calculating his retirement pension,

reduced by the total of—

(i) any retirement grant paid to him,

(ii) any payments which were or, apart from any reduction under regulation H2 (national insurance) or Schedule D5 (re-employed pensioners) or partial surrender under regulation D14, would have been made to him in respect of retirement pension, and

(iii) if a surviving spouse’s long-term pension is payable under Part F, the appropriate amount to be deducted under regulation E5.

(3) Where the deceased became entitled to the retirement pension by virtue of regulation D9 or D11, the amount of the death grant is the greater of—

(a) the amount mentioned in paragraph (2)(b) (less the relevant deductions), and

(b) such proportion of the amount of the deceased’s pensionable remuneration (after subtracting the amount of the relevant deductions) as the length in years of the period of membership taken into account in calculating his retirement pension bears to the length in years of the period of membership he would have had at his NRD.

(4) In paragraph (3) “the relevant deductions” means the sum of—

(a) the amount that would be the appropriate amount under regulation E5(2) or (3) if that regulation applied, and

(b) the total of any payments made to him in respect of retirement pension and retirement grant.

Death grant: pensioners with less than 10 years' membership

E4.—(1) If at the time of his death a person—

(a) was entitled to receive payments in respect of a retirement pension calculated by reference to a period of membership of less than 10 years (excluding a pension to which he would not be entitled apart from regulation D17 or D19), or

(b) would have been so entitled but for the operation of Schedule D5 (re-employed pensioners),

his personal representatives are entitled to receive a lump sum death grant.

(2) The amount of the death grant payable under paragraph (1) in a case where—

(a) the deceased became entitled to the retirement pension by virtue of regulation D9 or D11, and

(b) the period of membership that would have been taken into account in calculating a retirement pension if he had remained in his local government employment until his NRD is 10 years or more,

is the greater of—

(i) three eightieths of his pensionable remuneration, multiplied by the length in years of the period of membership taken into account in calculating his retirement pension (less the relevant deductions), and

(ii) such proportion of the amount of the deceased’s pensionable remuneration (after subtracting the amount of the relevant deductions) as the length in years of the period of membership taken into account in calculating his retirement pension bears to the length in years of the period of membership he would have had at his NRD;

and in this paragraph “the relevant deductions” has the same meaning as in regulations E3(4).

(3) The amount of the death grant payable under paragraph (1) in a case where the deceased became entitled to the retirement pension otherwise than by virtue of regulation D9 or D11 or of regulation E2(1)(d) of the 1986 regulations, is an amount equal to the total amount that would (or would but for Schedule D5 (re-employed pensioners) or his death, or both) have been paid to him by way of retirement pension for the first 5 years after he became (or would but for Schedule D5 have become) entitled to receive payments in respect of the pension, reduced—

(a) by the total of any payments made to him in respect of retirement pension, or

(b) where the pension—

(i) was reduced under regulation D13 (early payment) or regulation H2 (national insurance) or Schedule D5 (re-employed pensioners), or

(ii) had been partially surrendered under regulation D14,

by the amount which would have been paid in respect of the pension but for the reduction or surrender.

(4) The amount of the death grant payable under paragraph (1) in a case where—

(a) the deceased became entitled to the retirement pension by virtue of regulation D9 or D11, and

(b) the period of membership that would have been taken into account in calculating a retirement pension if he had remained in his local government employment until his NRD is less than 10 years,

is such proportion of the amount mentioned in paragraph (3) (less the total of any payments made to him in respect of retirement pension) as the length in years of the period of membership taken into account in calculating his retirement pension bears to the length in years of the period of membership he would have had at his NRD.

General provisions relating to death benefits

Surviving spouse deductions from certain death grants

E5.—(1) A death grant is reduced under this regulation by the appropriate amount if—

(a) it is payable under regulation E1, E2 or E3(2), and

(b) a surviving spouse’s long-term pension is payable under Part F.

(2) Where—

(a) the deceased was a man, or

(b) the deceased was a woman who was treated as a man by virtue of paragraph 2 of Schedule F1,

the appropriate amount for the purposes of paragraph (1) is an amount equal to two eightieths of the deceased’s pensionable remuneration multiplied by the length in years of any period of membership before 1st April 1972 in respect of which the widow's, or as the case may be, widower’s pension is payable under Part F.

(3) Where the deceased was a woman (other than one to whom paragraph (2)(b) applies), the appropriate amount for the purposes of paragraph (1) is an amount equal to—

(a) one one hundred and sixtieth of the deceased’s pensionable remuneration, multiplied by the length in years of any period—

(i) notice of which was given under paragraph 1(1) of Schedule F1, and

(ii) which is treated for the purposes of paragraph 3(2) of Schedule D2 as a period of membership after 31st March 1972 but before 6th April 1988; plus

(b) three one hundred and sixtieths of the deceased’s pensionable remuneration, multiplied by the length in years of any further period—

(i) of which such notice was given,

(ii) which is treated for those purposes as a period of membership before 1st April 1972, and

(iii) in respect of which a widower’s pension is payable under Part F.

(4) In calculating any reduction under this regulation, no account shall be taken of any period of membership in respect of which payment under regulation C13 has been or is to be treated as having been completed.

Adjustments to death grants for certain re-employed pensioners

E6.  The provisions of this Part have effect subject to Part III of Schedule D5 (separate benefits of certain persons re-employed by LGPS employers) and Part IV of that Schedule (death in further employment of such employees).

Part-timers' pensionable remuneration for certain purposes of this Part

E7.  Paragraph 7 of Schedule D1 (by virtue of which a member is, in respect of any period of part-time local government employment, to be treated as having received the remuneration which would have been paid in respect of a single comparable whole-time employment) does not apply to the application of regulation D1 and that Schedule in ascertaining the deceased’s pensionable remuneration for the purposes of regulation E1, E3(2)(a) or (3)(b) or E4(2)(ii).

PART F SURVIVING SPOUSES' PENSIONS

Death of a member

Member’s spouse’s short-term pension

F1.—(1) Subject to regulations F7 (remarriage and cohabitation) and G8(3), if a member dies living a surviving spouse or spouses, that spouse is entitled or, as the case may be, they are jointly entitled, to a spouse’s short-term pension—

(a) if the spouse has one or more eligible children in his or her care, for six months after the member’s death, or

(b) otherwise for three months after the member’s death.

(2) Where paragraph (1) applies then, subject to paragraph 21 of Schedule D5 (re-employed pensioners), the annual rate of the short-term pension is a rate equal to the spouse’s pensionable remuneration.

(3) Paragraph 7 of Schedule D1 (by virtue of which member is, in respect of any period of part-time local government employment, to be treated as having received the remuneration which would have been paid in respect of a single comparable whole-time employment) does not apply to the application of regulation D1 and that Schedule to this regulation.

Member’s spouse’s long-term pension

F2.—(1) Subject to regulation F7 (remarriage and cohabitation), if a member who has a statutory pension entitlement dies leaving a surviving spouse or spouses, that spouse is entitled or, as the case may be, they are jointly entitled, at the end of the period in respect of which a short-term pension is payable under regulation F1, to a spouse’s long-term pension.

(2) Where paragraph (1) applies then, subject to Part IV of Schedule D5 (re-employed pensioners), the annual rate of the long-term pension is—

(a) if the member’s total period of membership was not less than two years, half the annual rate of the retirement pension to which the spouse would have been entitled if on the date of death the spouse had become entitled under regulation D7 (permanent ill-health, etc.); and

(b) otherwise, one one hundred and sixtieth of the member’s pensionable remuneration, multiplied by the length in years of the member’s total period of membership.

(3) For the purposes of paragraph (2)(a)—

(a) any increase in the deceased’s retirement pension by virtue of regulation D2(2)(i), and

(b) any reduction in that pension under regulation H2, or by virtue of a surrender under regulation D14, shall be disregarded.

Death of a deferred pensioner

Deferred pensioner’s spouse’s long-term pension

F3.—(1) Subject to regulation F7 (remarriage and cohabitation), if a person who is not a member dies leaving a surviving spouse or spouses and at the time of his death he—

(a) was entitled to preserved benefits, or

(b) was in a local government employment and would have been so entitled if he had ceased to hold that employment immediately before that time,

that spouse is entitled or, as the case may be, they are jointly entitled, to a spouse’s long-term pension.

(2) Subject to regulation F6 (post retirement marriages), the annual rate of the long-term pension to which a spouse is entitled under paragraph (1) is half the annual rate of the retirement pension to which the deceased would have been entitled if on the date of death he had become entitled under regulation D5.

Death of a pensioner

Pensioner’s spouse’s short-term pension

F4.—(1) Subject to regulations F7 (remarriage and cohabitation) and G8(3), if a person who—

(a) was entitled to receive payments in respect of a retirement pension (other than a pension under regulation D19), or

(b) would have been so entitled but for regulation H6 (commutation in exceptional circumstances of ill-health) or Part I of Schedule D5 (re-employed pensioners),

dies leaving a surviving spouse or spouses, that spouse is entitled or, as the case may be, they are jointly entitled to a spouse’s short-term pension—

(i) if the spouse has one or more eligible children in his or her care, for six months after the deceased’s death, or

(ii) otherwise for three months after the deceased’s death.

(2) Subject to regulation F6 (post retirement marriages), where paragraph (1) applies, the annual rate of the short-term pension is a rate equal to the spouse’s retirement pension immediately before the date of death or the rate it would have been at that date apart from any payment under regulation H6 or the operation of Part I of Schedule D5.

Pensioner’s spouse’s long-term pension

F5.—(1) Subject to regulation F7 (remarriage and cohabitation), where regulation F4(1) applies the surviving spouse is entitled or, as the case may be, the surviving spouses are jointly entitled, at the end of the period in respect of which a short-term pension is payable under that regulation, to a spouse’s long-term pension.

(2) Subject to regulation F6 (post retirement marriages), where paragraph (1) applies and any new employment for the purposes of Part I of Schedule D5 (re-employed pensioners) was not a local government employment, the annual rate of the long-term pension is half the annual rate of the deceased’s retirement pension immediately before the date of death.

(3) For the purposes of paragraph (2)—

(a) any increase in the deceased’s retirement pension by virtue of regulation D2(2)(i),

(b) any reduction in that pension under regulation D13 or H2 or by virtue of a surrender under regulation D14, and

(c) any extinguishment of that pension by virtue of the operation of regulation H6 or Part I of Schedule D5,

shall be disregarded.

General provisions relating to surviving spouse’s pensions

Post retirement marriages

F6.—(1) Where a widow was not her husband’s wife at some time while he was in local government employment after 31st March 1972 and before the date on which he became entitled to a retirement pension—

(a) the long-term pension under regulation F3,

(b) the short-term pension under regulation F4, and

(c) the long-term pension under regulation F5,

shall be calculated in accordance with paragraph (2).

(2) Where paragraph (1) applies the references in regulations F3(2), F4(2) and F5(2) to the retirement pension are to be construed as references to the part of the pension which is attributable to the period of his membership in contracted-out employment after 5th April 1978.

Remarriage and cohabitation

F7.—(1) Except where paragraph (2) applies, where a widower or widow would otherwise be entitled to a pension by virtue of this Part—

(a) he or she is not so entitled during any subsequent marriage or any period of cohabitation outside marriage, and

(b) he or she is so entitled from the end of any such marriage or period only if the appropriate administering authority in their discretion so decide.

(2) Where a widower and a widow who are each entitled to a pension under this Part marry each other or cohabit with each other outside marriage—

(a) only such one of them as they determine shall be entitled to his or her pension, and

(b) the other shall cease to be entitled to his or her pension until the marriage or cohabitation ends.

Widowers: requirement for post 5th April 1988 service and consequent adjustments to “retirement pension”

F8.—(1) For the purpose of determining entitlement to a widower’s pension under regulations F3(1), F4(1) and F5(1), in those regulations—

“retirement pension” means a retirement pension of which at least part is attributable to a period of membership after 5th April 1988;

“local government employment” means local government employment of which at least part was employment after that date; and

“preserved benefits” means preserved benefits of which at least part are attributable to a period of membership after that date.

(2) For the purposes of calculating a widower’s short-term pension under regulation F4(2) or long-term pension under regulation F2(2), F3(2) or F5(2), in those regulations “retirement pension” means a retirement pension calculated—

(a) by reference to the length in years of the wife’s period of membership after that date; and

(b) if the widower was his wife’s husband at some time while she was in local government employment after 31st March 1972, by reference also to—

(i) the length in years of any period treated under paragraph (3) as a period of membership after 5th April 1988,

(ii) the length in years of any period of which notice is given in accordance with paragraph 1(1) of Schedule F1, and

(iii) the length in years of any period of membership in respect of which payment under regulation C14 has been or is treated as having been completed.

(3) For the purposes of paragraph (2)(b)(i) the following periods are to be treated as periods of membership after 5th April 1988, namely—

(a) membership which the deceased became entitled to count after that date by virtue of regulation D7(2),

(b) membership which the deceased was entitled to count under regulation C9 of or paragraph 5 of Schedule M4 (transitional provisions) to these regulations or regulation D4, D5 or D9 of the 1986 regulations where the necessary payment was made or commenced after that date.

(c) membership which the deceased was entitled to count by virtue of a resolution passed under regulation B16 or B17 of these regulations or regulation D7 of the 1986 regulations after that date,

(d) membership which is treated as membership after that date by virtue of paragraph 7 of Schedule M4 (transitional provisions) to these regulations or regulation D13(3) of the 1986 regulations.

(e) membership which the deceased was entitled to count under regulation K14 where the relevant transfer value—

(i) was not a transfer value to which paragraph 17(1)(b) of Schedule M4 (transitional provision in relation to interchange) applies, and

(ii) was accepted after that date.

Widowers: elections for added years etc.

F9.  Schedule F1 shall have effect for the purpose of making provision as to elections by women members affecting their widowers' pensions.

Adjustments to pensions of surviving spouses of certain-employed pensioners

F10.  The provisions of this Part have effect subject to Part IV of Schedule D5 (re-employed pensioners).

Contracting-out requirements: GMP rule

Surviving spouse’s guaranteed minimum pension

F11.—(1) Where—

(a) the employment of a member in any local government employment is contracted-out employment; and

(b) the member has a guaranteed minimum under section 14 of the Pension Schemes Act 1993(22) in relation to benefits under these regulations,

then, if the member dies at any time leaving a widow or widower, the widow or widower is entitled to a pension at a weekly rate equal to the widow’s or, as the case may be, the widower’s guaranteed minimum (within the meaning of section 17 of that Act minimum pensions for widows and widowers) during any period for which that section provides that a pension of not less than that amount is to be payable to the widow or, as the case may be, the widower (unless the widow or widower is entitled to a surviving spouse’s pension at a higher rate).

(2) The guaranteed minimum referred to in paragraph (1) shall, so far as it is attributable to earnings factors for the tax year 1988 89 or for subsequent tax years, be increased in accordance with the requirements of section 109 of the Pension Schemes Act 1993 (annual increase of guaranteed minimum pensions).

(3) Where this regulation applies it overrides any provision in these regulations to the extent to which it conflicts with it, except—

(a) regulation H4 (forfeiture of rights); and

(b) regulation H5 (commutation of small pensions).

PART G CHILDREN'S PENSIONS

Preliminary

Meaning of “Child”

G1.  For the purposes of these regulations “child” means a person who—

(a) has not attained the age of 17 years,

(b) has attained that age and has since been—

(i) receiving full-time education, or

(ii) undergoing a full-time course of training of not less than 2 year’s duration for a trade, profession or vocation,

either continuously or continuously with the exception of a period which the appropriate administering authority have in their discretion decided to disregard (on being satisfied that his education or training ought not to be regarded as completed), or

(c) has attained that age and is incapacitated by reason of ill-health or infirmity of mind or body which arose either—

(i) before he attained that age, or

(ii) while receiving such full-time education or training, or

(iii) during a period which the authority have decided to disregard under paragraph (b).

Meaning of “eligible child”

G2.—(1) For the purposes of these regulations a child is an eligible child of a deceased person who was in a local government employment when he died and was then a member or a former member, if he is—

(a) the deceased’s legitimate or adopted child,

(b) the deceased’s step-child or illegitimate child,

(c) an adopted child of a person who has been married to the deceased, or

(d) a child accepted by the deceased as a member of the family,

and, in the case of a child within paragraph (b), (c) or (d), is wholly or mainly dependent on the deceased at the time of his death.

(2) For the purposes of these regulations a child is an eligible child of a person who has died after becoming entitled to a retirement pension if—

(a) he is a legitimate child of a marriage of the deceased which took place before the date on which he became entitled to the pension, and was born before the first anniversary of that date, or

(b) he is a child adopted by the deceased before he became entitled to the pension, or

(c) he is a child who was wholly or mainly dependent on the deceased both before he became entitled to the retirement pension and at the time of his death and is—

(i) the deceased’s step-child or illegitimate child,

(ii) an adopted child of a person who married the deceased before he became entitled to the pension, or

(iii) a child accepted by the deceased as a member of the family.

Death of a member

Member’s children’s long-term pension

G3.—(1) Subject to paragraph (6), where a member dies leaving one or more eligible children, the eligible children are entitled until they cease to be children to or to the benefit of a children’s long-term pension payable from the member’s death.

(2) Subject to paragraph (5) and regulations G9 and G10, the annual amount of a children’s long-term pension is the appropriate fraction of the deceased person’s retirement pension.

(3) Subject to regulation G10, for the purposes of paragraph (2), “the appropriate fraction” means—

(a) if there is one eligible child and he is in the care of a surviving spouse of the deceased, one quarter;

(b) if there is one eligible child and he is not in such care, one third;

(c) if there are two or more eligible children and—

(i) half or more of them are in such care, or

(ii) fewer than half of them are in such care but a surviving spouse’s pension under Part F is for the time being payable, one half; and

(d) if there are two or more eligible children and fewer than half of them are in such care and no such surviving spouse’s pension is payable, two thirds;

but references in paragraphs (c) and (d) to a surviving spouse’s pension do not include a short-term pension under regulation F1 in circumstances where no long-term pension is payable under regulation F2.

(4) Subject to regulation G9, for the proposes of paragraph (2) the retirement pension of a member shall be taken to be the pension to which he would have become entitled if he had at the time of his death become entitled to a pension under regulation D7 (permanent ill-health, etc.) and on the relevant assumptions.

(5) In sub-paragraph (4) “the relevant assumptions” means that there is—

(a) no increase in the pension by virtue of regulation D2(2)(i), and

(b) no reduction in the pension under regulation D13 (early payments), regulation H2 (national insurance), or Part I of Schedule D5 (re-employed pensioners), or by virtue of a surrender under regulation D14.

(6) Where a children’s short-term pension—

(a) is payable under regulation G4, or

(b) would be so payable apart from regulation G8(2),

the children’s long-term pension does not become payable until the expiry of the period in respect of which that pension is payable under regulation G4 or, as the case may be, would be so payable apart from regulation G8(2) (but subject to regulation G8(3) and (4)).

Member’s children’s short-term pension

G4.—(1) Subject to regulation G8, where a member dies leaving one or more eligible children, they are entitled to or to the benefit of a children’s short-term pension for 6 months after the death or, if less, until they cease to be children.

(2) Subject to regulation G8, the annual rate of a children’s short-term pension is the rate at which a surviving spouse’s short-term pension would have been payable by virtue of regulation F1.

Death of a deferred pensioner

Deferred pensioner’s children’s long-term pension

G5.—(1) Where a person who is not a member dies leaving one or more eligible children and at the time of his death he—

(a) was entitled to preserved benefits, or

(b) was in a local government employment and would have been so entitled if he had ceased to hold that employment immediately before that time.

those children are entitled to or to the benefit of a children’s long-term pension until they cease to be children.

(2) Subject to regulations G9 and G10, the annual amount of a children’s long-term pension is the appropriate fraction (within the meaning of regulation G3(3)) of the deceased person’s retirement pension.

(3) Subject to regulation G9, for the purposes of paragraph (2) the retirement pension of a person shall be taken to be the retirement pension to which he would have become entitled if at the time of his death he had become entitled under regulation D5 (retirement on or after NRD) and on the relevant assumptions (within the meaning of regulation G3(5)).

Death of a pensioner

Pensioner’s children’s long-term pension

G6.—(1) Subject to paragraph (4), where a person who—

(a) was entitled to receive payments in respect of a retirement pension (other than a pension sole entitlement to which is under regulation D17 or a pension under regulation D19), or

(b) would have been entitled but for regulation H6 (commutation in exceptional circumstances of ill-health) or Part I of Schedule D5 (re-employed pensioners),

dies leaving one or more eligible children, they are entitled until they cease to be children to or to the benefit of a children’s long-term pension payable from the death.

(2) Subject to regulations G9 and G10, the annual amount of a children’s long-term pension is the appropriate fraction (within the meaning of regulation G3(3)) of the deceased person’s retirement pension.

(3) Subject to regulation G9, for the purposes of paragraph (2) the retirement pension of a person who is entitled at the time of his death to receive payments in respect of a retirement pension (or would have been so entitled apart from regulation H6 or Part I of Schedule D5) shall be taken to be the retirement pension that would have been payable on the assumption that no payment under regulation H6 had been made and on the relevant assumptions (within the meaning of regulation G3(5)).

(4) In a case where a children’s short-term pension is payable under regulation G7, the children’s long-term pension does not become payable until the expiry of the period in respect of which that pension is payable under that regulation (or would be so payable if it were not for payment being suspended under regulation G8(2)).

Pensioner’s children’s short-term pension

G7.—(1) Subject to regulation G8(2), where a person who—

(a) was entitled to receive payments in respect of a retirement pension (other than a pension sole entitlement to which is under regulation D17 or a pension under regulation D19), or

(b) would have been so entitled but for a payment under regulation H6 (commutation in exceptional circumstances of ill-health) or the operation of Part I of Schedule D5 (re-employed pensioners),

dies leaving one or more eligible children, they are entitled to or to the benefit of a children’s short-term pension for 6 months after the death.

(2) Subject to regulation G8(1), the annual rate of a children’s short-term pension is the rate at which a surviving spouse’s short-term pension would have been payable by virtue of regulation F4 (but, in a case where there is a widower, disregarding regulation F8(2)).

General provisions relating to children’s pensions

Limitations on entitlement to children’s short-term pensions

G8.—(1) Where—

(a) a widow’s short-term pension is calculated in accordance with regulation F6(1) or a widower’s short-term pension is payable by virtue of regulation F1(1) or F4(1), and

(b) the child who is entitled to or to the benefit of a children’s short-term pension is in the care of the widow or widower,

the rate of the child’s short-term pension is reduced by the rate of the widow’s or widower’s pension.

(2) While—

(a) a widow’s short-term pension is payable under regulation F1(1) or F4(1);

(b) a widower’s short-term pension is payable under either of those regulations at a rate not less than that of the children’s short-term pension; or

(c) a widower’s short-term pension is payable under regulation F1(1) in circumstances where no long-term pension is payable under regulation F2(1),

a children’s short-term pension is not payable unless the child is not in the care of the widow or widower, and then for only three months after the death (or until he ceases to be a child, if sooner).

(3) Where—

(a) (apart from paragraph (2), or this paragraph, or paragraph (4)) a children’s short-term pension would be payable to or for the benefit of a child in the care of a parent to whom a surviving spouse’s short-term pension would be payable; and

(b) if a children’s long-term pension and a surviving spouse’s long-term pension were payable instead of those short-term pensions, that would result in a greater aggregate pension (having regard to paragraph (2)),

those long-term pensions shall be payable instead of those short-term pensions.

(4) Where—

(a) apart from paragraph (3) and this paragraph, a children’s short-term pension would be payable to or for the benefit of a child who is not in the care of a parent to whom a surviving spouse’s short-term pension is payable, and

(b) a children’s long-term pension would be greater,

the long-term pension shall be payable instead of the short-term pension.

Long-term pensions: increase of period of membership in certain cases

G9.  Unless the retirement pension determined under regulation G3(4), G5(3) or G6(3) would be greater, the retirement pension of a deceased person shall be taken to be that to which he would have been entitled if he were entitled to count the lesser of—

(a) 10 years of membership; and

(b) the period of membership which he would have been entitled to count if he had continued to be a member until his 65th birthday.

Children over 17 in paid training

G10.—(1) If a child in respect of whom a children’s long-term pension is payable has attained the age of 17 years and is receiving remuneration in respect of full-time training for a trade, profession or vocation at an annual rate in excess of the indexed training rate, then—

(a) the annual rate of the pension is to be reduced by the amount of the excess, or

(b) if it results in a smaller reduction, the child is to be disregarded for the purposes of calculating the pension.

(2) In paragraph (1) “the indexed training rate” means the annual rate at which an official pension (within the meaning of the Pension (Increase) Act 1971(23)) would for the time being be payable if it had begun on 1st April 1994 and had then been payable at an annual rate of £1,450.

Discretions as to payment of children’s pensions

G11.—(1) The appropriate administering authority may apportion a children’s pension among the eligible children in respect of whom it is for the time being payable in such shares as they think fit.

(2) The appropriate administering authority may pay a children’s pension or any part of it to a person other than an eligible child, to be applied for the benefit of any eligible child or eligible children in accordance with any directions the authority may give.

Adjustments to children’s pensions for certain re-employed pensioners etc.

G12.  The provisions of this Part have effect subject to Part IV of Schedule D5 (re-employed pensioners) and to paragraph 3 of Schedule F1 (women dying before 6th April 1988).

PART H GENERAL PROVISIONS CONCERNING BENEFITS

Interest on late payment of certain benefits

H1.—(1) Where all or part of—

(a) a pension payable under Part D, F or G (other than a pension payable to a surviving spouse under regulations F1 in a case where the surviving spouse is not entitled to a pension under regulation F2),

(b) a retirement grant,

(c) an ill-health retirement grant payable under regulation D8,

(d) a death grant, or

(e) a payment under regulation H6,

is not paid within the relevant period after the due date, the appropriate administering authority shall pay the person to whom the pension or grant is payable interest on the amount remaining unpaid, calculated at one per cent. above base rate on a day to day basis from the due date to the date of payment, and compounded with three-monthly rests.

(2) For the purposes of paragraph (1) the due date is—

(a) in the case of a retirement pension which becomes payable by virtue of an election under regulation D9(2)(b) or D11(2)(d), one month after the date on which the notice of election is duly given;

(b) in the case of part of a pension which becomes payable by virtue of payments of contributions (other than an increase in contributions made following a decision under regulation J1 or J5) made after the date on which the remainder of the pension became payable, one month after those payments or contributions were paid;

(c) in the case of a pension or part of a pension which becomes payable by virtue of contributions made following such a decision, the date on which that pension or part of a pension would have become payable had those contributions been made on the first date which would otherwise have applied;

(d) in the case of any other pension or part of a pension, the date on which it becomes payable;

(e) in the case of a retirement grant or part of a retirement grant (other than one to which paragraph (3) applies), the date on which that grant or part becomes payable;

(f) in the case of an ill-health retirement grant, the day after the person who is entitled to the grant ceased to hold his employment;

(g) in the case of a death grant, the date on which—

(i) probate or letters of administration are produced to the administering authority, or

(ii) the authority become satisfied that the grant may be paid as provided in regulation H7; and

(h) in the case of a payment under regulation H6, the day after the person to whom the payment is made would otherwise become entitled to payment of his pension.

(3) Where—

(a) a retirement grant becomes payable by virtue of an election under regulation D9(2)(b) or D11(2)(d) made by a notice given on or after the date on which the grant becomes payable, or

(b) a part of a retirement grant becomes payable by virtue of payments or contributions made after the date on which the remainder of the grant became payable;

then, the due date is—

(i) in the case mentioned in paragraph (a), one month after the notice was given, and

(ii) in the case mentioned in paragraph (b)—

(I) where an increase in contributions is made following a decision under regulations J1 or J5, the date on which the grant or the part of the grant would have become payable had those contributions been made at the first opportunity which these regulations would otherwise have provided, and

(II) otherwise, one month after the increase in contributions was paid.

(4) For the purposes of paragraph (1) the relevant period means—

(a) in the case of a pension within paragraph (a) of that paragraph, one year, and

(b) in the case of a grant within paragraph (b), (c) or (d) of that paragraph or a payment within paragraph (e) of that paragraph, one month.

National Insurance

H2.  Where, but for the revocation of the 1974 regulations, the amount of a benefit would have fallen to be reduced under Part F of those regulations, the amount shall be reduced as if that Part had not been revoked.

Benefits not assignable

H3.  Every benefit to which a person is entitled under these regulations—

(a) is payable to or in trust for him, and

(b) is not assignable or chargeable with that or any other person’s debts or other liabilities.

Forfeiture of pension rights after conviction of employment-related offences

H4.—(1) If—

(a) a person has been convicted of an offence in connection with an employment as respects which he was a member;

(b) he has (whether before or after the conviction) ceased to hold that employment in consequence of that offence; and

(c) on an application made within three months after the conviction by the body who were his employing authority in that employment, the Secretary of State has certified that the offence—

(i) was gravely injurious to the State, or

(ii) is liable to lead to serious loss of confidence in the public service,

then that body may direct that all or any of the rights enjoyed by or in respect of him under these regulations as respects his previous membership shall be forfeited.

(2) No direction may be given under paragraph (1) which would deprive a convicted person of his guaranteed minimum pension or would, in the event of his leaving a surviving spouse, deprive that spouse of any widow’s or widower’s guaranteed minimum pension, unless the convicted person ceased to hold his employment in consequence of—

(a) an offence of treason, or

(b) one or more offences under the Official Secrets Acts 1911 to 1989(24) for which he has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years.

(3) If—

(a) a person has ceased to hold an employment as respects which he was a member in consequence of an offence in connection with his employment, and

(b) the body who were his employing authority have neither notified a decision under Part J on any question as to entitlement to a benefit nor given any direction under paragraph (1)

the appropriate administering authority shall, if so directed by that body, make interim payments of such amounts as may be specified in the direction to any person so specified who appears to the body to be a person who would be entitled to receive payment of a benefit under these regulations if no direction under paragraph (1) were given.

(4) Directions under paragraph (3) shall not require any person to be paid more than it appears to the body giving the direction that he would for the time being be entitled to have been paid on the assumption that no direction under paragraph (1) will be given, but such directions do not constitute decisions under Part J as to any person’s entitlement to a benefit.

(5) Payments made to a person in accordance with directions under paragraph (3) shall be deemed to have been payments in respect of a benefit to which he was entitled, notwithstanding any direction given under paragraph (1) or any decision under Part J as to entitlement to the contrary.

(6) A body applying for a certificate under paragraph (1)(c) in respect of a convicted person shall at the same time send copies of the application to him and to the appropriate administering authority.

Commutation: small pensions

H5.—(1) Where the annual rate—

(a) of a retirement pension (or pensions) to which any person has become entitled as a member or former member, or

(b) of a long-term pension to which any surviving spouse has become entitled, or

(c) of a long-term pension payable to or in respect of an eligible child or children,

amounts (or amount in aggregate) to not more than the relevant amount, the appropriate administering authority may discharge their liability in respect of that pension (or those pensions) by payment to the member or former member or, in the case of a surviving spouse’s pension, the spouse or, in the case of a child’s pension, any person who appears to them to be appropriate, of a lump sum of such amount as represents the capital value of the relevant pension (or pensions), calculated in accordance with tables prepared by the Government Actuary.

(2) For the purposes of this regulation, the relevant amount is—

(a) in the case of a retirement pension £195;

(b) in the case of a surviving spouse’s long-term pension £260;

(c) in the case of a children’s long-term pension £260;

but, for the purposes of determining whether such pension or pensions exceed the relevant amount, the pension—

(i) shall be taken in include any increase payable under the Pensions (Increase) Act 1971(25) in respect of it, and

(ii) shall be aggregated with any other such pension to which the member or, in the case of a surviving spouse’s pension, that spouse or, in the case of a children’s pension, any child or other person, has become entitled under the Scheme in respect of the member in question.

(3) This regulation only applies to a retirement pension where the member who has become entitled to the pension has attained state pensionable age, and a member shall not be treated as having become entitled to a retirement pension under regulation D11 until the date (if any) on which he becomes entitled to receive payments in respect of that pension.

(4) Where a payment is made to a person under paragraph (1) in respect of any retirement pension or pensions—

(a) it shall include a payment of an amount representing the capital value (calculated as there mentioned) of any surviving spouse’s long-term pension which, if the person died leaving a surviving spouse, would be payable to that spouse; and

(b) the liability in respect of any such surviving spouse’s long-term pension or pensions and in respect of any children’s long-term pension which, if the person died leaving an eligible child or eligible children, would be payable to or for the benefit of that child or those children is also discharged by the payment.

Commutation: exceptional circumstances of ill-health

H6.—(1) Where at the time a retirement pension first becomes payable to a member or former member under Part D the appropriate administering authority are satisfied, having considered the advice of a registered medical practitioner—

(a) that the member or former member is exceptionally ill, and

(b) that he has a life expectancy of less than one year,

they may discharge their liability in respect of—

(i) so much of that pension as exceeds his guaranteed minimum, and

(ii) any lump sum death grant which would otherwise be payable at his death under regulation E3 or E4,

by payment to him of a lump sum of an amount equal to five times the amount by which the annual rate of the retirement pension which would otherwise be payable to him exceeds the amount of his guaranteed minimum.

(2) The appropriate administering authority shall deduct from any payment under this regulation any tax to which they may become chargeable under section 599 of the Income and Corporation Taxes Act 1988(26) (charge to tax: commutation of entire pension in special circumstances).

Payments due in respect of deceased persons

H7.—(1) Where a person dies and the total of—

(a) any sums that were due to him under these regulations, and

(b) any other sums payable under these regulations to his personal representatives,

(“the amount due”) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965(27) and applying in relation to his death, then the appropriate administering authority may, without requiring the production of probate or letters of administration of his estate, pay the whole or any part of the amount due out of their pension fund—

(i) to the personal representatives, or

(ii) to the person, or to or among any one or more of any persons, appearing to the authority to be beneficially entitled to the estate.

(2) Where a payment is made to any person under paragraph (1), the administering authority cease to be liable to account for the amount paid to him.

Benefits in respect of certain persons employed before April 1974

H8.  In relation to a member who is a person to whom regulation E19 of the 1974 regulations applied but who did not make an election under that regulation, these regulations apply—

(a) if he fell within paragraph (1)(b)(i) of that regulation (no previous right to retiring grant or widow’s pension), subject to the modifications set out in Parts I and III of Schedule H1; and

(b) if he fell within paragraph (1)(b)(ii) of that regulation (no previous right to widow’s pension), subject to the modifications set out in Parts II and III of that Schedule.

PART J DETERMINATIONS AND APPEALS

Initial decisions

J1.—(1) Any question concerning the rights of liabilities under these regulations of any person other than a LGPS employer shall be decided in the first instance by the relevant LGPS employer.

(2) Where the LGPS employer by whom any such question falls to be decided is ascertainable by reference to regulations J2 or J3, for the purposes of this regulation and of regulation J5 that employer shall be the relevant employer.

(3) A decision by the relevant employer does not bind any other LGPS employer or the Secretary of State.

Decisions as to status of employees

J2.—(1) A LGPS employer shall decide in relation to each of their employees who is a member—

(a) whether he is an officer or a manual worker,

(b) whether he is a whole-time, a variable-time or a part-time employee,

(c) which of his emoluments are remuneration on which contributions are payable, and

(d) if he is a part-time employee—

(i) the proportion which is contractual minimum hours of employment in each week bear to those of a comparable whole-time employment, and

(ii) if paragraph (4)(iii) of regulation B3 applies to his contractual hours, the average number of those hours for the purposes of that paragraph.

(2) In relation to any employment in which a person is a member, the appropriate administering authority are to decide—

(a) what previous service or employment (if any) he is entitled to count as a period of membership or a period to which Part II of Schedule B6 applies,

(b) whether any, and if so what, periods of service as a part-time employee are included in such a period,

(c) what proportion of whole-time service his service during any such period represents,

(d) whether a payment in lieu of contributions has been made or equivalent pension benefits have been assured under Part III of the National Insurance Act 1965(28) in respect of any period of non-participating employment,

(e) what rate of contribution the employee is liable to pay to the appropriate pension fund,

(f) whether he is entitled to count as a period of membership—

(i) any, and if so how many, added years, or

(ii) any, and if so what, additional period, and

(g) whether for the purposes of Schedule C5 he is a Class A member, a Class B member or a Class C member (within the meaning of that Schedule).

(3) The questions specified in paragraph (1) shall be decided as soon as is reasonably practicable after—

(a) the person becomes a member, or

(b) any change occurs in the number of the member’s regular or usual hours of employment, or

(c) any other material change occurs in or relation to the employment.

(4) The questions specified in paragraph (2) shall be decided as soon as is reasonably practicable after the person becomes a member of the Scheme in respect of the relevant employment.

Decisions as to benefits

J3.—(1) Any question whether a person is entitled to a benefit under these regulations is to be decided by the LGPS employer who last employed the person in respect of whose employment the question arises. *

(2) Where a person is or may become entitled to a benefit payable out of a pension fund, the administering authority maintaining that fund shall decide the amount of the benefit.

(3) In this regulation “benefit” includes a return of contributions and for the purposes of paragraph (2) (but not for paragraph (1) it includes a benefit specified in regulation F6(12) or (16) of the 1986 regulations.

(4) The decision under paragraph (1) shall be made as soon as is reasonably practicable after the cessation of the employment or, as the case may be, the death of the employee and that under paragraph (2) as soon as is reasonably practicable after the occurrence of the event by virtue of which the entitlement arises or may arise.

Notification of decisions

J4.—(1) A body who have decided any question under this Part shall, as soon as is reasonably practicable after doing so, send a written notification of their decision to every person whose rights or liabilities are affected.

(2) The notification shall include—

(a) in the case of a decision that the person is not entitled to a benefit, the grounds for the decision,

(b) in the case of a decision as to the amount of a benefit, a statement showing how the amount is calculated, and

(c) in any case, a conspicuous statement directing the person’s attention—

(i) to the address from which he may obtain further information about the decision, including details of any calculation of service or benefits, and

(ii) to his right under regulation J5 to appeal to the Secretary of State.

Appeals

J5.—(1) Where—

(a) the relevant employer has decided or failed to decide any such question as is mentioned in regulation J1, and

(b) an appeal is duly made to the Secretary of State,

then, subject to the following provisions of this regulation, the question shall be determined by him and his determination of it shall be final.

(2) Subject to paragraph (3), the Secretary of State shall not determine any question that fell to be decided by the relevant employer in the exercise of a discretion conferred on them by these regulations.

(3) Paragraph (2) does not apply—

(a) where the appeal relates to a pension (within the meaning of section 12 of the Superannuation Act 1972(29)) which is being paid or may become payable to or in respect of a person who ceased to hold his local government employment or died before 1st October 1981; or

(b) where notice of appeal is served by the Common Council of the City of London in respect of a resolution under regulation B17(1).

(4) No appeal may be made requiring a determination that a person’s remuneration in respect of a period ending on or before 31st December 1992 includes the money value to him of the provision of a motor vehicle.

(5) An appeal under this regulation shall be made by notice in writing which—

(a) shall be served (whether by being sent by post or otherwise) as soon as is reasonably practicable, and

(b) may be served—

(i) by any person whose rights or liabilities the question concerns, and

(ii) where the relevant employer is not an administering authority, by the administering authority maintaining the pension fund to which the employer pays employer’s contributions.

PART K INTERCHANGE ETC

Preliminary

Interpretation

K1.  In this Part, unless the context otherwise requires—

• “fund authority” means—

  (a)

  in the application of regulations K2 to K12 to a person, the body maintaining the pension fund to which he was a contributor immediately before he ceased to be employed in his local government employment or, if that fund has been closed, the body which would be liable to pay him his pension in respect of that employment if he had been entitled to receive payment of such a pension when he ceased to be employed in his local government employment, and

  (b)

  in the application of regulations K13 to K19 to a person, the body maintaining the pension fund to which he became a contributor after he ceased to be employed in his non-local government employment or, if that fund has been closed—

  (i)

  if when the fund was closed he was not employed in local government employment, the body which would be liable to pay him his pension in respect of the local government employment in question if he had been entitled to receive payment of such a pension when he ceased to be employed in that employment; and

  (ii)

  otherwise, the body maintaining the pension fund to which he became a contributor when the fund was closed;

• “local Act scheme” has—

  (a)

  in relation to any time before 25th March 1972, the same meaning as in the Act of 1937, and

  (b)

  in relation to any time on or after that date, the same meaning as in section 8 of the Superannuation Act 1972(30);

• “local government employer”, in relation to a person who is, or has been, employed in local government employment, means the body which is, or is treated as being, the employing authority or former employing authority for the purposes of the Acts of 1937 to 1953 or, as the case may be, the local Act scheme or these regulations;

• “pension” does not include an allowance, grant or gratuity;

• “service” means service or employment with any employer;

• “state scheme premium” has the same meaning as in the Pension Schemes Act 1993(31).

Transfers out

Outwards transfers

K2.—(1) Subject to regulation K4, where a person has ceased to be a member by virtue of—

(a) ceasing to be employed in local government employment, or

(b) a notification under regulation B12 (leaving the Scheme),

and the conditions in paragraph (2) are satisfied, then the fund authority shall pay a transfer value in respect of him to be used in accordance with section 95 of the Pension Schemes Act 1993 (ways of taking right to cash equivalent) in one or more of the ways set out in subsection (2) of that section, at his option.

(2) The conditions are that—

(a) he ceased to be a member as described in paragraph (1)—

(i) where the transfer value is to be paid to an occupational pension scheme, before his NRD, or

(ii) otherwise, at least one year before his NRD;

(b) he is a person who—

(i) has a statutory pension entitlement,

(ii) after ceasing to be a member as described in paragraph (1), has taken up non-local government employment in which he participates in an occupational pension scheme, or

(iii) after so ceasing, entered into a contract for a personal pension scheme or a self-employed pension arrangement or an appropriate policy;

(c) he has duly made an application in writing to his fund authority for a transfer value to be paid and has not subsequently withdrawn it; and

(d) if he ceased to be employed in his local government employment before 31st March 1972, his local government employer has consented to the payment of the transfer value.

(3) For the purposes of paragraph (2)(c) an application is only duly made if—

(a) in the case of a request for the transfer value to be paid to an occupational pension scheme, it is made before the applicant’s NRD;

(b) in any other case, it is made—

(i) at least one year before the applicant’s NRD, or

(ii) before the expiry of the period of six months beginning with the date on which he ceased to be a member,

whichever is the later; and

(c) in the case of a person within paragraph (2)(b)(ii) or (iii),it is made within 12 months after the applicant took up the non-local government employment or, as the case may be, entered the contract (or such longer period as the local government employer may in any particular case allow).

(4) A person who has made an application under paragraph (2)(c) may withdraw it by giving notice in writing to his fund authority, but such a notice is of no effect if, before receiving it, the fund authority have entered into an agreement with a third party to use the whole or part of that person’s transfer value in one or more of the ways specified in section 95(2) of the Pension Schemes Act 1993.

(5) A person who withdraws an application may make another.

(6) Where a person is entitled to separate preserved benefits by virtue of regulation D12(1)(c)—

(a) he may make an application under paragraph (2)(c) in respect of all or any of those separate entitlements, and

(b) where his application does not relate to all of them, he may make a further application in respect of all or any of the remainder.

Time for payment of transfer value under regulation K2

K3.—(1) Where an application is duly made to a fund authority under regulation K2(2)(c) in respect of any person, they shall pay a transfer value not later than—

(a) twelve months after the date on which they receive the application, or

(b) if—

(i) his NRD is earlier,

(ii) he ceased to be a member as described in regulation K2(1) at least one year before his NRD, and

(iii) he made his application under regulation K2(2)(c) before the expiry of the period of six months beginning with the date on which he ceased to be a member,

his NRD.

(2) Where—

(a) proceedings before a court have been commenced against a person at any time before the expiry of the period of twelve months beginning with the date on which he ceased to be a member,

(b) those proceedings (including any proceedings on appeal) have not been concluded at least three months before the date by which the fund authority are required to pay the transfer value under paragraph (1), and

(c) it appears to the fund authority at that date that the proceedings may lead to all or any part of the benefits payable under these regulations to or in respect of that person being forfeited under regulation H4,

then the fund authority need not pay a transfer value in relation to that person until the expiry of the period of three months beginning with the date on which those proceedings are concluded.

Cases where right to transfer value excluded

K4.—(1) A transfer value shall not be paid in relation to a person—

(a) who has received any benefit (other than a return of contributions) under the Acts of 1937 to 1953 and the regulations made under those Acts, the former regulations, any local Act scheme, the 1974 regulation, the 1986 regulations or these regulations in respect of his local government employment,

(b) who ceased to be employed in local government employment on or after 6th April 1978, having attained state pensionable age, and whose accrued rights for the purposes of regulation K5 relate wholly or partly to service before he attained that age;

(c) in respect of whom a transfer value has been paid by the fund authority or a predecessor of that authority since he ceased to be employed in his local government employment, or

(d) who, on becoming employed in approved non-local government employment became entitled to count service in his local government employment in relation to his approved non-local government employment, without any condition as to receipt of a transfer value.

(2) Subject to paragraph (3), in relation to a person who has received a return of contributions in respect of local government employment in which he has ceased to be employed, a transfer value may only be paid in relation to any period in respect of which he is entitled to preserved benefits.

(3) Where a person ceased to be employed on or after 1st April 1974, but before 1st January 1980, paragraph (2) only applies if when he ceased to be so employed he had—

(a) an aggregate of at least five years' service which has to be taken into account as reckonable service and qualifying service under the 1974 regulations, or

(b) if he was subject to local Act scheme, an aggregate of at least five years' service which was to be taken into account under the Scheme for the purposes of determining whether he was entitled to benefit.

Amount of transfer value under regulation K2

K5.—(1) The amount of any transfer value payable under regulation K2 shall be calculated in accordance with the following provisions.

(2) Subject to the provisions of this Part, a transfer value to be paid in accordance with the provisions of regulation K2 in respect of a person shall be an amount equal to the capitalised value—

(a) of the rights which have accrued in respect of him under these regulations at the material date, and

(b) of any associated rights under the Pensions (Increase) Act 1971(32) and the Pensions (Increase) Act 1974(33),

less a sum in respect of any state scheme premium which is payable or has been paid and not recovered in respect of a period of service taken into account in the valuation of those rights.

(3) Subject to regulation K9, where the transfer value is, without reasonable cause or excuse, not paid before the expiry of the period of six months beginning with the material date, the transfer value mentioned in paragraph (2) shall be increased by—

(a) interest, calculated on a daily basis over the period from the material date to the date on which the transfer value is paid at the rate set out in regulation 4(4)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1985(34), or

(b) the amount by which the transfer value falls short of what it would have been if the material date had been the date on which the transfer value was paid;

whichever is the greater.

(4) The reference in paragraph (2)(a) to rights which have accrued at the material date is a reference—

(a) in the case of such a person as is described in regulation K2(6), to those rights in respect of which his application under regulation K2(2)(c) was made; or

(b) if the person does not have a statutory pension entitlement by virtue of satisfying paragraph (a) of regulation D3, to the rights which would have accrued under regulation D11, if he had fulfilled one of the requirements mentioned in paragraph (1)(b) of that regulation;

and for the purpose of determining the accrued rights in respect of a widow’s or widower’s pension of a person who was unmarried on ceasing to be a member—

(i) in the case of a man, if any part of his membership can be counted by virtue of regulation K14(1)(a) of these Regulations or regulation N8(1)(a) of the 1974 Regulations; and

(ii) in the case of a woman, if any part of her membership is treated as membership after 5th April 1988 by virtue of regulation K14(1)(a) and (2)(b) of these Regulations, all the person’s membership shall be taken into account.

(5) In paragraph (2) “capitalised value” means the capitalised value at the material date as determined by the fund authority, in such manner as may be approved by the Government Actuary or by an actuary authorised by him to act on his behalf for that purpose, having regard to investment conditions and the contingencies on which benefits are, or are to be, payable under these regulations.

(6) In this regulation “the material date” means—

(a) the date on which the person ceased to be employed in local government employment or to be a member as described in regulation K2(1), or

(b) the date on which his application for payment of a transfer value is received by his fund authority,

whichever is later.

Special provision as respects pre-6th April 1988 service

K6.—(1) Subject to regulation K9, where—

(a) a transfer value is payable to the trustees or managers of an approved non-local government scheme,

(b) the service to which it relates includes relevant former service, and

(c) the amount of the transfer value payable in respect of the relevant former service would be greater if it were calculated in accordance with the 1986 regulations as they had effect immediately before 6th April 1988,

then the amount of the transfer value attributable to the relevant former service shall be calculated on the basis mentioned in paragraph (c).

(2) In paragraph (1) “relevant former service” means service which the person was entitled to count as reckonable service before 6th April 1988.

Reductions of the transfer value: unsecured GMPs, pre-1988 service and forfeiture

K7.—(1) Where—

(a) a person requests a transfer value to be paid—

(i) to an occupational pension scheme which is not contracted-out,

(ii) to a personal pension scheme which is not an appropriate personal pension scheme,

(iii) to a self-employed pension arrangement, or

(iv) in the case of a person who is entitled to benefits under regulation D9(1), to an occupational pension scheme which is contracted-out;

(b) the trustees or managers of the scheme or arrangement are able and willing to have transferred to it only the liability for a member’s accrued rights other than his and his surviving spouse’s rights to guaranteed minimum pensions; and

(c) he does not require the portion of his transfer value that represents his guaranteed minimum pension to be used in one of the ways specified in section 95(2)(b) and (c) of the Pension Schemes Act 1993(35),

then his transfer value shall be reduced by the amount of a state scheme premium sufficient to meet the liability in respect of those guaranteed minimum pensions.

(2) Where—

(a) a person has ceased to be a member by virtue of a notification under regulation B12 (leaving the Scheme), and

(b) his total period of membership before 6th April 1988 amounts to at least two years,

that person shall be entitled to a transfer value under regulation K2(1) in respect only of that part of his accrued rights which is attributable to his membership after 5th April 1988.

(3) Where—

(a) a transfer value limited in accordance with paragraph (2) has been paid in respect of a person, and

(b) that person has subsequently ceased to be employed in local government employment—

(i) before his NRD, or

(ii) where regulation K2(3)(b) applies, at least one year before his NRD,

a right to a transfer value in respect of any part of his accrued rights to which, but for the operation of paragraph (2), he would have been entitled on so ceasing, shall accrue to him on the date of cessation and shall be valued accordingly.

(4) In relation to any person to whom paragraph (3) applies—

(a) regulation K2(3)(b)(ii) shall have effect as if there were substituted for the words “a member” the words “employed in local government employment”; and

(b) the definition of “material date” in regulation K5(6) shall have effect as if the words “or to be a member, as described in regulation K2(1)” were omitted.

(5) For the purposes of paragraphs (2) to (4), where a person ceases to be employed in local government employment but enters again into local government employment, then if—

(a) the interval between those two employments does not exceed one month; or

(b) the second of the employments results from the exercise of a right to return to work under section 39 or 41 of the Employment Protection (Consolidation) Act 1978(36) (right to return to work following pregnancy or confinement),

they shall be treated as a single employment unless the employee elected under regulation D12(1)(c).

(6) Where—

(a) under regulation H4, any corresponding provision of earlier legislation or a local Act scheme, the employing authority direct that all or any of the benefits payable under these regulations in respect of a person shall be forfeited, and

(b) the direction is given before the last date on which the fund authority is required to pay a transfer value in respect of those benefits under these regulations and no such payment has been made,

any transfer value payable in respect of that person shall be reduced in proportion to the reduction in the total value of the benefits or, as the case may be, shall be withheld.

Minimum transfer values

K8.—(1) Subject to regulation K9, a transfer value paid by a fund authority in respect of a person shall be at least equal to the aggregate of the contributions, transfer values and sums mentioned in paragraph (2), less any state scheme premium paid or payable.

(2) The contributions, transfer values and sums referred to in paragraph (1) are—

(a) any contribution made by that person under Part C (other than contributions under regulation C24),

(b) any transfer values paid to the fund authority under this Part in respect of that person, and

(c) any sums paid under this Part by way of interfund adjustments in respect of that person to an authority which was his previous fund authority (within the meaning of regulation K20),

in so far as those contributions, transfer values or sums relate to the accrued rights in respect of which the transfer value is paid.

(3) A transfer value paid under this Part shall be at least equal in amount to the cash equivalent, if any, to which a person would otherwise be entitled under Chapter IV of Part IV of the Pension Schemes Act 1993(37) (including any state scheme premium which is paid or payable).

Modifications where transfer is to club scheme

K9.—(1) Regulations K5(3), K6, K8(1) does not apply where the transfer value is to be paid to the trustees or managers of a club scheme.

(2) In this Part “club scheme” means an occupational pension scheme which—

(a) provides benefits calculated by reference to the remuneration of the participant;

(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 Income and Corporation Taxes Act 1988(38);

(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 statutory schemes and schemes made under section 7 of the Superannuation Act 1972(39).

General provisions about payment of transfer values

K10.—(1) The transfer value under regulation K2 shall be paid to the scheme managers by the fund authority out of their pension fund.

(2) The fund authority shall provide the scheme managers and the person to whom the transfer value relates with a written notice showing how it was calculated.

(3) A notice provided under paragraph (2) shall include a statement of the kind required by regulation J4(2)(c).

Termination of right to payment out of fund authority’s pension fund

K11.—(1) Where a transfer value is to be or has been paid under regulation K2, no other payment or transfer of assets shall be made out of the pension fund on account of the service to which the transfer value relates, except as provided in regulation K12.

(2) Paragraph (1) has effect notwithstanding anything to the contrary in the Acts of 1937 to 1953 and the regulations made under those Acts, the former regulations, any local Act scheme, the 1974 regulations, the 1986 regulations (except regulations J3 and J6) or any other provision of these regulations.

Revival of rights for certain Community scheme transferees

K12.—(1) Schedule K1 shall have effect for the purpose of making provision as respects persons—

(a) in respect of whom transfer values are paid under regulation K2 on their transfer to the Communities' scheme, and

(b) who subsequently leave the scheme without rights to either an immediate or prospective pension.

(2) In this regulation and that Schedule “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.

Transfers in

Inward transfers of accrued rights from non-local government schemes etc.

K13.—(1) Where a person who becomes a member has accrued rights to benefit under—

(a) an occupational pension scheme.

(b) a personal pension scheme,

(c) a retirement annuity contract approved by the Commissioners of Inland Revenue under section 620 or 621 of the Income and Corporation Taxes Act 1988, or

(d) a self-employed pension arrangement,

he may within 12 months of becoming a member (or such longer period as the local government employer may allow) give written notice to his fund authority that he wishes them to accept a transfer value in respect of some or all of those accrued rights from the relevant transferor.

(2) In paragraph (1) the reference to accrued rights to benefit—

(a) includes rights to preserve benefits and rights appropriately under section 19 of the Pension Schemes Act 1993(40), but

(b) excludes rights to benefits arising out of—

(i) an additional voluntary contributions provision or an additional voluntary contributions scheme (except where the payments securing such rights began before 8th April 1987), or

(ii) service as respects which there is an obligation to pay a sum by way of interfund adjustment under regulation K20).

(3) In paragraph (1) “the relevant transferor”, in relation to a member, means—

(a) the trustees or managers of the scheme, contract or arrangement under which his accrued rights arise, or

(b) in the case of such rights as mentioned in paragraph (2)(a), the trustees or managers of the scheme, contract or arrangement, or the insurance company, to which a payment in respect of his accrued rights has been made.

(4) Subject to paragraphs (5) and (6), where notice is given in accordance with paragraph (1), the transfer value shall be accepted by the fund authority and be credited to their pension fund, together with the amount of any limited revaluation premium under section 55(4) of the Pension Schemes Act 1993 repaid to the fund authority by the Secretary of State.

(5) Paragraph (4) only applies if—

(a) the transfer value is offered on conditions which are consistent with the provisions of these regulations;

(b) in the case of a person who—

(i) became employed in his local government employment before 1st January 1980, or

(ii) ceased to be employed in his non-local government employment before 31st March 1972,

his local government employer has consented to the transfer value being accepted; and

(c) in the case of a person who became employed in his local government employment before 31st March 1972, he was employed in local government employment on that date.

(6) Subject to regulation K16, the fund authority only need to accept a transfer value if it exceeds the annual amount of the guaranteed minimum pension to which the person would have become entitled under these regulations at the request date as a result of the transfer value being accepted, multiplied by the appropriate factor.

(7) In paragraph (6)—

“the request date” means the date when the fund authority are requested to accept the transfer value; and

“the appropriate factor”, in relation to a person, means—

(a)

in the case of a person under 30 on the request date, 8;

(b)

in the case of a person at least 30 but under 40 on that date, 9;

(c)

in the case of a person at least 40 but under 50 on that date, 10; and

(d)

otherwise, 12.

Right to count service

K14.—(1) Where a transfer value has been accepted under regulation K13 in relation to a person, he shall be entitled—

(a) subject to regulation K17(4), and (6), to count a period calculated as mentioned in regulation K15 or, as the case may be, regulation K16 as period of membership for all purposes of these regulations (except that of determining whether there is any entitlement to benefit (other than any benefit under regulation D19)), and

(b) to count as a period to which Part II of Schedule B6 applies all the service in respect of which he has accrued rights to benefits under his previous occupational pension scheme or appropriate policy, as certified by the trustees of that scheme or issuers of that policy, whether the transfer value relates to some or all of those accrued rights.

(2) For the purposes of making any collocation under these regulations a period of membership which may be counted under paragraph (1)(a) shall be treated—

(a) where the person is a man, as a period after 5th April 1978, and

(b) where the person is a woman, as a period after 5th April 1988.

(3) A period which may be counted under paragraph (1)(b) shall count as its actual length.

(4) The fund authority shall provide the person with a written notice stating—

(a) the periods of membership which he is entitled to count under paragraph (1)(a) and (b), and

(b) in the case of a person who became employed in his local government employment before 1st April 1980, whether or not his retirement pension is subject to reduction under regulation K18 or K19.

(5) A notice under paragraph (4) shall contain a statement of the kind required by regulation J4(2)(c).

Calculation of period of membership allowed under regulation K14(1)(a): non club schemes

K15.—(1) Subject to regulation K16—

(a) the period mentioned in regulation K14(1)(a) shall be calculated in a manner consistent with the methods adopted and assumptions made by the fund authority in determining the amount of transfer values to be paid to occupational pension schemes (other than club schemes) under regulations K5, K7, K8 and K21; and

(b) due allowance shall be given for the expected increase in the pensionable remuneration of a local government employee between—

(i) the appropriate date, and

(ii) the NRD of the person in respect of whom the transfer value was paid.

(2) In paragraph (1)(b)(i) “the appropriate date” means—

(a) the date on which the person in respect of whom the transfer value is paid became a member, or

(b) if more than twelve months later, the date on which the transfer value is received.

Special provision where transfer is from a club scheme

K16.—(1) Regulation K13(6) does not apply where the transfer value is offered by the trustees or managers of a club scheme.

(2) Where the transfer value—

(a) is paid by the trustees or managers of a club scheme,

(b) represents all the rights relating to the person in that scheme,

(c) has been calculated in a manner consistent with the methods adopted and assumptions made by the fund authority in determining the amount of transfer values to be paid to club schemes, and

(d) is paid following an application made to the fund authority before the expiry of the period of twelve months beginning with the date on which the person becomes a member,

regulation K15 does not apply and the period mentioned in regulation K14(1)(a) shall be equal to the period which, if used to calculate a transfer value to be paid to a club scheme, would produce an amount equal to the transfer value received by the fund authority.

(3) In making the calculation referred to in paragraph (2), regard shall be had—

(a) to the person’s age,

(b) to the rate of remuneration used by the trustees or managers of the scheme making the payment in determining its amount,

(c) to his normal retirement age,

(d) to his marital status, and

(e) to any other factor notified to the fund authority by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount.

Increase in return of contributions

K17.—(1) Where—

(a) a person to whom regulation K14 applies ceases to be employed in employment in which he is a member in circumstances in which a return of contributions is payable to him under regulation C21(1),

(b) if a transfer value had not been payable, he would have been entitled on the termination of his non-local government employment to a return of contribution under his non-local government scheme in respect of service to which the transfer value accepted under regulation K13 relates, and

(c) no previous increase has been made under this regulation in relation to that service,

the sum due to him under regulation C21(1) shall be increased by an amount equal to the return of contributions (including any interest), which would have been paid to him under his non-local government scheme in respect of that service in the circumstances specified in sub-paragraph (b), if it had been paid when the transfer value was received by his fund authority.

(2) Where compound interest is payable on the contributions due to be so returned, compounded interest calculated at the same rate and in the same manner shall also be payable on the amount of the increase under paragraph (1) for the period beginning with the date on which the transfer value was received by the fund authority and ending with the date on which he ceased to be employed in the employment in which he was a member.

(3) Nothing in paragraphs (1) and (2) confers any entitlement to an increase on account of contributions which were returned to, and were not subsequently repaid by, the person who paid them.

(4) Where—

(a) a sum due under regulation C21(1) is increased under paragraph (1) by an amount equal to the whole of the person’s contributions in connection with the service to which the transfer value relates, and

(b) that is the only service to which the transfer value relates,

his right to count a period of membership under regulation K14(1)(a) on account of the transfer value shall be extinguished when the increased payment is made.

(5) Where—

(a) a sum due under regulation C21(1) is increased under paragraph (1), and

(b) paragraph (4) does not apply,

then, when the increased payment is made, the period of membership the person is entitled to count under regulation K14(1)(a) on account of the transfer value is reduced to the appropriate fraction of the period of membership which he was entitled so to count before the payment was made.

(6) In paragraph (5) “the appropriate fraction” means the fraction of which—

(a) the numerator is the period he is entitled to count under regulation K14(1)(b) (“the K14(1)(b) period”) reduced by the period of service on account of which the increase under paragraph (1) is made, and

(b) the denominator is the K14(1)(b) period.

(7) For the purpose of calculating the reduction under paragraph (5)—

(a) the period of service mentioned in paragraph (6)(a) shall count at its actual length; and

(b) all periods are to be expressed in years and fractions of a year.

National insurance modification for flat-rate retirement pension

K18.—(1) Where—

(a) a person to whom regulation K14 applies became employed in his local government employment before 1st April 1980;

(b) on becoming so employed he did not enjoy unmodified status for the purposes of Part F of the 1974 regulations; and

(c) his retirement pension is calculated by reference to a period of membership which includes the period which he is entitled to count under regulation K14(1)(a),

then his retirement pension shall be reduced in accordance with paragraph (2).

(2) Regulation F7 of the 1974 regulations shall be taken to have applied in relation to the period which he is entitled to reckon under regulation K14(1)(a) as if—

(a) during that period he had been a person within Case B of Part F of the 1974 regulations;

(b) that period were service after 31st August 1947; and

(c) he had been a person who was not immediately before the appointed day entitled to the optant’s rate for the purposes of the National Insurance (Modification of Local Government Superannuation Schemes) Regulations 1969(41).

National insurance modification for graduated retirement pension

K19.—(1) Where—

(a) a person to whom regulation K14 applies became employed in his local government employment before 1st April 1980,

(b) his non-local government scheme was a statutory scheme,

(c) in calculating the amount of the transfer value accepted under regulation K13 a deduction was made in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965(42), and

(d) his retirement pension is calculated by reference to a period of membership which includes the period which he is entitled to count under regulation K14(1)(a),

then his pension shall be reduced by the amount specified in paragraph (2).

(2) The amount mentioned in paragraph (1) is the reduction in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965 which would have been made to the person’s pension under his non-local government scheme in relation to the service to which the transfer value relates if on ceasing to be employed in his non-local government employment he had—

(a) reached state pensionable age, and

(b) become entitled to the immediate payment of a pension under that scheme instead of the payment of a transfer value.

(3) The reduction under this regulation—

(a) shall take effect on—

(i) the date on which the person’s pension becomes payable, or

(ii) if later, the date on which he reaches state pensionable age, and

(b) shall be additional to any reduction required by regulation K18.

(4) The reduction under this regulation shall be treated for the purposes of regulations K5, K7, K8 and K21 as a reduction made in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965.

Interfund adjustments on changes of local government employment

Change of local government employment and fund authority: “interfund adjustments”

K20.—(1) Subject to regulation K22, this regulation applies where—

(a) a person who has ceased to be employed in a local government employment (“the previous employment”) subsequently becomes employed in another local government employment (“the new employment”),

(b) the body maintaining the pension fund to which he became a contributor in the new employment (“the new fund authority”) is different from the body maintaining the pension fund to which he was a contributor immediately before he ceased to be employed in his previous employment (“the previous fund authority”),

(c) he is a member of the Scheme in his new employment and is entitled to count in relation to that employment any period of membership which he was entitled to count in his previous employment.

(2) Where this regulation applies the previous fund authority shall, subject to the following provisions of these regulations, pay out of their pension fund to the new fund authority for the credit of their pension fund a sum (“the interfund adjustment”) of an amount calculated in accordance with regulation K21.

(3) Where the pension fund referred to in paragraph (1)(b) has been closed, references in this regulation and in regulations K21 and K22 to the body maintaining that fund shall be taken—

(a) in the case of the previous fund authority, as references to the body which would be liable to pay the person’s pension in respect of the previous employment if it had been payable when the employment ceased; and

(b) in the case of the new fund authority—

(i) if when the fund was closed the person was not employed in local government employment, as references to the body which would be liable to pay his pension in respect of the new employment if he had been payable when the employment ceased; and

(ii) otherwise, as references to the body maintaining the pension fund to which he became a contributor when the fund was closed.

Calculation of interfund adjustment payable under regulation K20

K21.—(1) The interfund adjustment payable under regulation K20(2) in respect of a person—

(a) if the total period of membership he is entitled to count in his new local government employment which he was also entitled to count in his previous local government employment exceeds 182 days, is to be calculated in accordance with paragraph (2); and

(b) otherwise—

(i) if the person became employed in his new local government employment on or after 1st October 1981, is zero; and

(ii) in any other case, is twice the amount of the employer’s primary contributions in relation to the period of membership.

(2) The amount of the interfund adjustment referred to in paragraph (1)(a) is the product of—

(a) the appropriate amount for a person of his age in years when he ceased to be employed in his previous local government employment,

(b) the annual rate of his remuneration in that employment at that time, and

(c) the length of the total period of membership in complete years (ignoring any residual period of 182 days or less and taking any residual period which exceeds 182 days as a complete year),

less the amount of any additional contributory payments remaining outstanding at that time.

(3) The appropriate amount mentioned in paragraph (2)(a) is—

(a) if his age was under 30, 11 pence;

(b) if his age was at least 30 but under 40, 12 pence;

(c) if his age was at least 40 but under 50, 13 pence; and

(d) otherwise, 14 pence.

(4) In ascertaining for the purposes of this regulation the length of the period of membership which a person is or was entitled to count, the period of membership is to be counted at the length at which it would be counted in calculating the amount of a retirement pension under regulation D5 except that—

(a) any period which was reckonable as reckonable service under section 17 of the Act of 1937 (which related to teachers) is to be ignored,

(b) it is to be assumed that he had completed the payment of any additional contributory payments, and

(c) if some additional contributions under regulation D10 of the 1974 regulations (or any earlier corresponding provision), regulation C6 of the 1986 regulations or regulation C9 of these regulations, have been paid, but not all those for which he was originally liable, the appropriate proportion (within the meaning of regulation C19(8)) may be counted.

(5) Subject to paragraph (6), in ascertaining for the purposes of this regulation the annual rate of a person’s remuneration at the date on which he ceased to be employed in his previous local government employment (“the relevant date”)—

(a) the annual rate of any fluctuating element is to be estimated by reference to an average taken over a representative period,

(b) the annual rate of any benefit in kind is to be its estimated annual value at the relevant date,

(c) suspension or reduction of his remuneration because of absence from duty is to be disregarded,

(d) regard is to be had to any retrospective alteration of the annual rate resulting from a pay award promulgated by a national joint council or other negotiating body on or before the relevant date,

(e) if his remuneration is not calculated by reference to an annual rate but by reference to some other rate, the annual rate is to be derived from the applicable rate at the relevant date,

(f) if his previous employment was part-time, the annual rate of remuneration of a single comparable whole-time employment is to be used, and

(g) if the annual rate of his remuneration exceeds £100, it is to be rounded down to the nearest £100.

(6) If—

(a) during the 13 years ending on the relevant date his remuneration was reduced,

(b) his employing authority certified under paragraph 4 of Schedule DI that the reduction was material, and

(c) his annual rate of remuneration immediately before the reduction (ascertained on similar principles to those in paragraph (5)) was greater than the annual rate of remuneration on the relevant date,

it is to be assumed for the purposes of this regulation that he was earning at the higher rate at that date.

(7) Where the person—

(a) has made a payment to his new fund authority under regulation D1(2) of the 1974 regulations, or

(b) has made them a payment which by virtue of regulation K28(4) of or paragraph 8 of Schedule M2 to these Regulations (modification in certain cases where person returns to local government employment) has the same effect,

the interfund adjustment payable under regulation K20 is to be reduced by an amount equal to that payment.

(8) If the period beginning with the relevant date and ending on the date of payment of the interfund adjustment is or exceeds 6 months, compound interest is payable on the amount of that adjustment (after any reduction falling to be made under paragraph (7))—

(a) at the rate of 6 per cent. with yearly rests for each complete period of a year ending before 1st April 1977, and

(b) at the rate of 2.25 per cent. with three-monthly rests for each complete period of 3 months beginning after 31st March 1977.

Forfeitures

K22.—(1) Regulation K20 does not apply if a direction has been made at any time under regulation H4 (forfeiture of rights) or any corresponding provision of any earlier enactment in relation to the member’s membership in his previous employment.

(2) Where—

(a) apart from paragraph (1), regulation K20 would apply, and

(b) a right to benefit under these regulations is retained,

the previous fund authority shall pay out of their pension fund an interfund adjustment to the new fund authority for the credit of their pension fund of an amount equal to the actuarial value of the remaining benefits.

(3) In this regulation “previous fund authority”, “new fund authority” and “previous employment” have the meaning given in regulation K20.

Transfers of certain members who are eligible to join approved non-local government schemes

Certain members who become subject to other pension schemes in the same employment

K23.—(1) This regulation applies to a person if—

(a) he is a member by virtue of being an employee to whom an admission agreement applies or in an employment under a passenger transport executive;

(b) the body employing him in that employment (“the relevant employment”) can make other provision for his superannuation under an approved non-local government scheme;

(c) he gives written notice to that body (and to the appropriate administering authority, if different) that he wishes this regulation to apply to him and they consent to its doing so.

(2) When a person to whom this regulation applies becomes subject in the relevant employment to an approved non-local government scheme (“the new scheme”), he shall be treated for the purposes of these regulations (except regulations C21 (return of contributions) and K2 to K12) as having ceased to hold the relevant employment.

(3) Unless a person to whom this regulation applies has given notice under regulation K24(3)(b), he may, on the actual termination of the relevant employment (but not before), request the payment of a transfer value under regulation K2.

(4) If a transfer value is requested as mentioned in paragraph (3)—

(a) regulations K2 to K12 apply as if the person had continued to be employed in his local government employment until the date of the actual termination of the relevant employment, but

(b) regulations K5, K7, K8 and K21 apply as if his local government employment had ended on the day before he became subject to the new scheme.

Requests for transfer payments: regulation K23 employees and employees of ineligible employers

K24.—(1) This paragraph applies—

(a) to a person who ceases to be a member because—

(i) the undertaking in which he is employed is transferred to a body who is not a LGPS employer nor a body which has entered or is eligible to enter into an admission agreement; or

(ii) the body by whom he is employed ceases to be a LGPS employer or a body which has entered or is eligible to enter into an admission agreement,

and in respect of whom the body employing him after the transfer date can make other provision under an approved non-local government scheme; and

(b) to a person to whom regulation K23 applies; and in this regulation “the transfer date” means—

(i) in the case of a person within paragraph (a)(i), the date of transfer of the undertaking,

(ii) in the case of a person within paragraph (a)(ii), the date his employer ceases to be such an employer as there mentioned, and

(iii) in the case of a person within paragraph (b), the date on which he becomes subject to an approved non-local government scheme.

(2) A person within paragraph (1)(a) shall be treated for the purposes of these regulations as having ceased to hold his employment on the transfer date.

(3) Where—

(a) a person to whom paragraph (1) applies has not attained state pensionable age on the transfer date; and

(b) before that date or, with the consent of his employing authority, the appropriate administering authority and the scheme managers of the transferee scheme, before the expiry of the period of three months beginning with that date—

(i) he gives written notice to the appropriate administering authority (and to his employing authority, if different) that he wishes to transfer his pension rights under these regulations to the transferee scheme, and

(ii) the scheme managers of the transferee scheme, the appropriate administering authority (and his employing authority, if different) have each consented,

then, subject to paragraph (6), the appropriate administering authority shall set aside the appropriate part of the appropriate pension fund (“the transfer payment”), whether in cash or in assets or both, and pay or transfer it to the scheme managers of the transferee scheme for the benefit of the relevant beneficiaries.

(4) For the purposes of paragraph (3), the appropriate part of the appropriate pension fund is the amount determined by the actuary of the appropriate pension fund (on the basis of actuarial assumptions specified by him) to be equal to the value at the transfer date of the actual and potential liabilities of the fund which have then accrued in respect of the relevant beneficiaries, after making such adjustments as he thinks fit as respects—

(a) any period between the transfer date and the date of actual payment of the transfer value; and

(b) such other matters as he thinks fit;

and in paragraph (3) and this paragraph “relevant beneficiaries” means the member or members in respect of whom the transfer payment is made and those persons who under these regulations are or may become entitled to benefit through him or them.

(5) The employing authority shall bear the costs of determining the appropriate part of the fund and apportioning the fund or, if there is more than one employing authority involved, each shall bear such part of the costs as the actuary of the fund determines.

(6) Where a transfer payment in respect of a person is made under paragraph (3)—

(a) if the transferee scheme is contracted-out and the scheme managers undertake to accept liability for that person’s guaranteed minimum pension, no deduction shall be made for that pension from the transfer payment;

(b) otherwise, there shall be deducted from it—

(i) the amount of any transfer premium which may be paid under section 55(3) of the Pension Schemes Act 1993(43), or

(ii) the amount of any contributions equivalent premium payable pursuant to section 55(2) of that Act,

and such amount shall be used either in paying such a premium or, if the appropriate administering authority think fit, in preserving the liability for the guaranteed minimum in the appropriate pension fund; and

(c) the appropriate administering authority—

(i) shall certify to the scheme managers of the transferee scheme the amount included in the transfer payment which represents the person’s contributions and interest on them, and

(ii) may require them to undertake to treat only those amounts as employee’s contributions in the transferee scheme.

(7) The appropriate administering authority—

(a) shall provide the person transferring his pension rights with sufficient information in writing to check that the pension rights he will acquire under the new scheme are at least equivalent to those which he would have obtained if a transfer value had been paid to the scheme managers of the transferee scheme under regulation K2; and

(b) shall not consent under paragraph (3)(b)(ii) unless they are satisfied of that fact.

(8) Where a transfer payment is to be or has been made under this regulation, no other payment or transfer of assets shall be made out of the pension fund on account of service or employment to which the transfer payment under this regulation relates.

(9) Paragraph (8) applies notwithstanding anything in the Acts of 1937 to 1953 and the regulations made under those Acts, the former regulations, any local Act scheme or any provision of the 1974 regulations, the 1986 regulations or these regulations.

(10) In this regulation “undertaking” has the same meaning as in the Transfer of Undertakings (Protection of Employment) Regulations 1981(44).

Application of regulation K24 in case of certain transfers involving admission agreements

K25.—(1) Where—

(a) an admission agreement (“the first agreement”) made by a body with an appropriate administering authority ceases to have effect; and

(b) on the cessation of the first agreement another admission agreement (“the second agreement”) between that body and a different appropriate administering authority (“the second authority”) takes effect,

then regulation K24 applies (and regulations K20 to K22 do not apply) as if—

(i) a person employed by that body when the second agreement took effect were a person within paragraph (1)(a) of that regulation,

(ii) the pension fund maintained by the second authority were the transferee scheme,

(iii) the second authority were the scheme managers, and

(iv) the date the second agreement takes effect were the transfer date.

(2) Where—

(a) an undertaking (as defined in regulation K24(10)) is transferred from an employing authority (“the first employer”) to a body which enters into an admission agreement with an appropriate administering authority (“the new authority”) in respect of one or more persons who were members in relation to their employment with the first employer and remain members in relation to their employment with the new authority; and

(b) the new authority is different from the appropriate administering authority maintaining the fund which was their appropriate pension fund immediately before the transfer, and

(c) each of those members is entitled to count in relation to his employment with the new authority any membership he was entitled to count in his employment with the first employer,

then regulation K24 applies (and regulations K20 to K22 do not apply) as if—

(i) such a member were a person within paragraph (1)(a) of that regulation,

(ii) the pension fund maintained by the new authority were the transferee scheme,

(iii) the new authority were the scheme managers, and

(iv) the date the agreement takes effect were the transfer date.

Payments for combined benefits

Liability for combined benefits

K26.—(1) Where—

(a) a benefit under Part II or paragraph 19(2) of Schedule D5 (“the combined benefit”) becomes payable out of a pension fund (“the new fund”), and

(b) a benefit (“the replaced benefit”) would otherwise have become or remained payable out of another fund,

the authority maintaining the new fund (“the new authority”) shall as soon as is reasonably practicable notify the authority maintaining the other fund (“the previous authority”) that the combined benefit has become payable.

(2) On being notified under paragraph (1), the previous authority shall, as from the date from which the combined benefit became payable and, in the case of a benefit which is a pension, so long as it remains payable, make payments to the new authority at an annual rate equal to that of the replaced benefit (including any increases which have become payable in that benefit).

(3) The payments to be made under paragraph (2)—

(a) in so far as they are made in respect of a benefit which is a pension, shall be made on 31st March, 30th June, 30th September and 31st December (unless longer intervals are agreed by the two authorities); and

(b) in so far as they are made in respect of a benefit which is a lump sum, shall be made on the first of those dates to follow the date on which the combined benefit first becomes payable (unless the two authorities agree otherwise).

(4) Where a previous authority are liable to make payments to a new authority under paragraph (2), that liability may be discharged—

(a) in a case where no previous payments have been made in respect of the liability in question, by the payment of a capital sum of an amount equal to the amount of the transfer value that would have been payable by the previous authority if, on the date on which the election under paragraph 19(1) of Schedule D5 or, in the case of a benefit under paragraph 19(2) of that Schedule, the date of his death, the member had duly applied under regulation K2(2)(c) for a transfer value to be paid to an appropriate personal pension scheme (assuming he had been eligible to do so); and

(b) in a case where previous payments have been made in respect of the liability in question, by the payment of a capital sum of an amount equal to the capitalised value at the date of that payment of the outstanding payments which would otherwise be due in respect of that liability;

and the capitalised value referred to in paragraph (b) shall be determined in such manner as may be approved by the Government Actuary, having regard to such factors as he considers appropriate, (and he may issue such Tables as he considers appropriate for the purposes of such determinations).

(5) Where after the combined benefit became payable the previous authority have made any payment in respect of the replaced benefit to a person appearing to them to be entitled to it, the amount of that payment shall be deducted—

(a) by the new authority from the combined benefit, and

(b) by the previous authority from the amount to be paid by them under paragraph (2).

(6) If all or part of any sum due under this regulation remains unpaid at the end of the period of one month after the later of—

(a) the date on which it becomes due, and

(b) the date of receipt of notification under paragraph (1),

the new authority may require the previous authority to pay interest, calculated at one per cent. above base rate on a day to day basis from the due date of payment to the date of actual payment, and compounded with three-monthly rests, on the amount remaining unpaid.

(7) Payments under paragraphs (2) and (4) and interest paid under paragraph (6) shall be carried and credited to the new fund.

Transfers to and from Scottish local government employment

Transfers to and from Scotland

K27.—(1) Where a person becomes employed in a local government employment after having ceased, at any time after 30th March 1972, to hold a relevant Scottish employment, these regulations or, as the case may be, the 1974 regulations or the 1986 regulations shall be deemed to have become applicable to the person on the cessation of his relevant Scottish employment as if that employment had been local government employment (but as if the appointed day for the purpose of the 1974 regulations had been 16th May 1974).

(2) In paragraph (1) “relevant Scottish employment” means—

(a) in relation to any time before 16th May 1974, employment by virtue of which the person was, or was deemed to be, a contributory employee within the meaning of the Local Government Superannuation (Scotland) Act 1937(45) or a local Act contributor within the meaning of that Act, and

(b) in relation to any time after 15th May 1974, employment by virtue of which the person was, or was deemed to be, a pensionable employee within the meaning of the Local Government Superannuation (Scotland) Regulations 1987(46).

(3) The reference in paragraph 1(1) of Schedule D5 (reduction of retirement pension on re-employment) to employment with a LGPS employer is to be construed as including a reference to employment with any scheduled body (as defined in those regulations).

(4) In the case of a person who, after ceasing to be employed in a local government employment, has become employed in a local government employment (as so defined), regulations K20 to K22 and K26(4) apply as if the latter employment had been a local government employment.

Overseas employment

Overseas employment

K28.—(1) Where any person to whom regulation 3 of the Local Government Superannuation (Overseas Employment) Regulations 1985(47) applies has not made an election under paragraph (3) of that regulation, these regulations apply to him with the following modifications.

(2) Regulation D12 (further provisions about preserved benefits) applies as if—

(a) after paragraph (1)(d) there were inserted the words

“or

(e) if the total period of his membership is less than 5 years.”; and

(b) in paragraph (2) after paragraph (b) there were inserted the words—

“but no such election may be made where paragraph (1)(e) applies”.

(3) Schedule B6 applies as if—

(a) in paragraph 5 after paragraph (e) there were inserted—

“(ee) regulation D12(1)(e) (cessation of right to preserved benefits: overseas service cases)”; and

(b) after paragraph 10 there were inserted—

“Overseas service

10A.   Any period which, if Part II of the Superannuation (Local Government and Overseas Employment) Interchange Rules 1969(48) had applied to him, would have been a period of overseas employment (within the meaning of those rules) counts as a period to which this Part of this Schedule applies.”.

(4) Preserved benefits (including any increases under the Pensions (Increase) Act 1971(49) and the Pensions (Increase Act) 1974(50) are subject to reduction, but on a return to local government employment previous service becomes reckonable on repayment of a sum equal to the amount of returned contributions, as if regulations D1(2) (with the substitution for “the appointed day” of “6th January 1986”), D1(3) and K1(7) of the 1974 regulations had continued to have effect.

PART L PENSION FUNDS AND PAYMENTS BY AUTHORITIES

The pension funds

Continuation of existing superannuation funds

L1.  The superannuation funds maintained immediately before the commencement date under or for the purposes of the 1986 regulations shall, subject to the provisions of these regulations, continue to be maintained for the purposes of these regulations by the bodies then responsible for maintaining them (and those funds are referred to in these regulations as “pension funds”).

Transfer of existing pension funds

L2.  Where any superannuation fund to which regulation L1 applies is vested in any body by virtue of an order made under the Local Government Act 1992(51), it shall be maintained by that body for the purposes of these regulations.

Further funds for members covered by admission agreements

L3.—(1) An administering authority who are a party to any admission agreement may establish a further pension fund (a “further fund”), to be maintained by them in addition to the fund they maintain under regulation L1 (“the main fund”).

(2) An authority who establish a further fund shall immediately give the Secretary of State notice in writing that they have done so, specifying the bodies of a description specified in Schedule B4 whose employees are to participate in the benefits of the further fund.

(3) If an authority establish a further fund they shall cease to hold as part of the main fund assets of a value to be specified by an actuary, which shall then become part of the further fund.

(4) When, following the establishment of a further fund, the authority who have established the further fund first obtain under regulation L10 valuations of both the main fund and the further fund, they shall also obtain from the actuary a statement specifying the value to which any further assets should in his opinion cease to be held by them as part of the main fund and become part of the further fund.

(5) As soon as is reasonably practicable after the authority obtain the statement mentioned in paragraph (4), they shall cease to hold as part of the main fund assets to the value specified in the statement, which shall then become part of the further fund.

(6) On the establishment of the further fund all rights to payment out of the main fund in respect of service in employment under a body identified in the notice under paragraph (2) shall become rights to payment out of the further fund.

Management and investment of funds

Management of pension fund

L4.  Subject to paragraph (2), every administering authority shall in each year carry and credit to their pension fund—

(a) the amounts contributed during the year by members entitled to participate in the benefits of the fund,

(b) the amounts payable by employing authorities under regulation L12,

(c) all dividends and interest arising during the year out of the investment or use of money forming part of the fund, and any capital money resulting from the realisation of investments or from the repayment of money used temporarily for other authorised purposes,

(d) the amount of any additional payments received by the administering authority under these regulations, and

(e) any other sum which the administering authority may become liable to carry to the fund under these regulations.

(2) Interest paid under this Part shall be carried and credited—

(a) if paid under paragraph (3) of regulation L15, to the relevant fund within the meaning of that regulation,

(b) otherwise, to the appropriate pension fund.

(3) An administering authority may pay out of money forming part of their pension fund any costs, charges and expenses incurred by them in administering the fund—

(a) including those incurred—

(i) in discharging their functions under regulations L5 to L8, or

(ii) in connection with a scheme to which contributions are payable under Schedule C4, but

(b) excluding those incurred in connection with a retirement benefits scheme approved by the Commissioners of Inland Revenue under section 591(1) and (2)(h) of the Income and Corporation Taxes Act 1988(52).

Use and investment of pension fund’s money

L5.—(1) Any money forming part of the pension fund maintained by an administering authority (“fund money”) that is not for the time being required to meet payments to be made out of the fund under these regulations shall be invested by the authority.

(2) An administering authority may vary the manner in which any fund money is for the time being invested by them under this regulation.

(3) In the discharge of their functions under this regulation an administering authority shall have regard—

(a) to the need for diversification of investments of fund money,

(b) to the suitability of investments of any description of investment which they propose to make and of any investment proposed as an investment of that description, and

(c) to proper advice, obtained at reasonable intervals.

(4) Paragraph (3)(c) does not apply where functions under this regulation are lawfully discharged, under arrangements made under section 101 of the Local Government Act 1972(53) or otherwise, by an officer who is competent to give proper advice.

(5) For the purposes of this regulation and of regulations L4(1)(c) and L6, investment includes—

(a) any contract entered into in the course of dealing in financial futures and traded options,

(b) appropriation by the administering authority for use as a loan for any purpose for which they have a statutory borrowing power (including power to borrow under an instrument made under a statute),

(c) any contract the effecting of which constitutes the carrying out of insurance business within class VII in Schedule 1 to the Insurance Companies Act 1982(54) with a person—

(i) who is permitted under that Act to carry on such business, or

(ii) who, as an insurance company the head office of which is in a member State, is permitted under the law of a member State (other than the United Kingdom) to carry on insurance business of a corresponding class,

(d) a permitted stocklending arrangement, and

(e) entering as a limited partner into a partnership.

(6) For the purposes of this regulation—

“limited partner” means a person who is not liable for the debts or obligations of a partnership beyond the amount contributed at the time of entering into that partnership;

“partnership” means a partnership whose purpose is to invest in shares in or securities of companies which at the date of purchase by the partnership are normally not quoted on a recognised stock exchange;

“proper advice” means the advice of a person who is reasonably believed by the administering authority to be qualified by his ability in and practical experience of financial matters (including where appropriate an officer of theirs);

“recognised stock exchange” has the meaning given in section 841(1) of the Income and Corporation Taxes Act 1988;

“stocklending arrangement” means an arrangement such as is mentioned in section 129(1) or (2) of the Income and Corporation Taxes Act 1988 and such an arrangement is a permitted arrangement if it complies with the provisions of regulation 5.58 and 5.60 of Section L of the Financial Services (Regulated Schemes) Regulations 1991, taking—

(a)

the reference in paragraph 1c(iii) of regulation 5.58 to Guidance of the Board as a reference to Guidance Release 4/91 issued by the Securities and Investments Board in June 1991, and

(b)

any reference to the trustee as a reference to the administering authority;

“traded option” means an option which is for the time being quoted on a recognised stock exchange or on the London International Financial Futures Exchange.

Restrictions on investments

L6.  Subject to the following provisions of this regulation, an administering authority may not—

(a) make any investment in unlisted securities of companies so as to cause the total value of such investments to exceed the permitted percentage,

(b) make any investment so as to result—

(i) in more than the permitted percentage being represented by a single holding, or

(ii) in more than the permitted percentage being represented by investments in units or other shares of the investments subject to the trusts of unit trust schemes managed by any one body,

(c) make any deposit with a relevant body (within the meaning of paragraph (4)) so as to cause the aggregate amount of fund money deposited with any one bank, institution or person (other than the National Savings Bank) to exceed the permitted percentage,

(d) lend, use as mentioned in regulation L5(5)(b), or deposit with a person specified in paragraph 12 or 13 of Schedule 2 to the Banking Act 1987(55), any or any additional fund money so as to cause the aggregate amount of all fund money so lent, used or deposited to exceed the permitted percentage,

(e) make any contract falling within regulation L5(5)(c) under which the total amount so contracted exceeds the permitted percentage,

(f) enter into a stocklending arrangement so as to cause the total value of the securities transferred, or agreed to be transferred, by the authority pursuant to stocklending arrangements to exceed the permitted percentage, or

(g) contribute to a partnership so as to cause the total value of contributions by the authority—

(i) to that partnership, or

(ii) to such partnerships in general,

to exceed the permitted percentage.

(2) For the purposes of this regulation “the permitted percentage” in relation to any time means—

(a) in the case of paragraphs (1)(a), (b)(i), (c) and (d), 10 per cent.,

(b) in the case of paragraphs (1)(b)(ii), (e) and (f), 25 per cent.,

(c) in the case of paragraph (1)(g)(i), 2 per cent., and

(d) in the case of paragraph (1)(g)(ii), 5 per cent., of the value at the time of all investments of fund money.

(3) The total value of investments referred to in paragraph (1)(a) does not include the value of such investments made in accordance with a scheme under section 11 of the Trustee Investments Act 1961(56).

(4) Paragraph (1)(b) does not apply—

(a) to an investment made in accordance with such a scheme,

(b) to an investment falling within paragraph 1 of Part I or paragraph 1 or 2 of Part II of Schedule 1 to that Act, or

(c) to a deposit with a relevant body;

and in this paragraph “relevant body” means—

(i) the Bank of England,

(ii) an institution authorised under Part I of the Banking Act 1987(57),

(iii) a person for the time being specified in Schedule 2 to that Act, or

(iv) a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits.

(5) Paragraph (1)(b)(i) does not apply if—

(a) the investment is made by an investment manager appointed under regulation L8, and

(b) the single holding comprises only investments in units or other shares of the investments subject to the trusts of any one unit trust scheme.

(6) Paragraph (1)(d) does not apply if the loan is—

(a) to Her Majesty’s Government in the United Kingdom, or

(b) to the Government of the Isle of Man;

and for the purposes of that paragraph money is not lent if it is—

(i) invested in registered securities to which section 1 of the Stock Transfer Act 1963(58) applies or in listed securities, or

(ii) deposited with the Bank of England, an institution authorised under Part I of the Banking Act 1987 or a person for the time being specified in paragraphs 1 to 11 of Schedule 2 to that Act.

(7) In this regulation—

• “companies” includes companies established under the law of any territory outside the United Kingdom;

• “European authorised institution” has the same meaning as in the Banking Co-ordination (Second Council Directive) Regulations 1992(59);

• “listed securities” means securities quoted on a recognised stock exchange and “unlisted securities” shall be construed accordingly;

• “securities” includes shares, stock and debentures;

• “single holding” means investments—

  (a)

  in securities of, or in loans to or deposits with, any one body, other than investments in unit trust schemes,

  (b)

  in units or other shares of the investments subject to the trust of any one unit trust scheme,

  (c)

  in the acquisition, development or management or in any advance of money upon the security of any one piece of land, or

  (d)

  in the acquisition of any one chattel;

• “recognised stock exchange” and “stocklending arrangement” have the same meaning as in regulation L5;

and the value at any time of all investments of fund money is to be taken to include the amount of any fund money used as mentioned in regulation L5(5)(b) and for the time being not repaid.

Use of fund money by administering authority

L7.  An administering authority shall pay interest to the fund on the total from day to day of any fund money used by them and for the time being not repaid, at a rate no lower than the lowest rate at which that amount could have been borrowed by them at arms' length at 7 days' notice (otherwise than by way of overdraft from a bank).

Fund managers

L8.—(1) In this Part “investment manager” means—

(a) a person who is authorised under the Financial Services Act 1986(60) and entitled by virtue of that authorisation to manager the assets of occupational pension schemes;

(b) a person—

(i) who does not transact investment business (within the meaning of that Act) from a permanent place of business maintained by him in the United Kingdom;

(ii) whose head office is situated in a member State other than the United Kingdom;

(iii) who is recognised by the law of that member State as a national of that or another member State; and

(iv) who is for the time being authorised under that law to engage in one or more of the activities falling within Part II of Schedule 1 to that Act, and is not precluded by that law from managing the assets of occupational pension schemes or assets belonging to another person; or

(c) a person who is a European institution carrying on home-regulated investment business in the United Kingdom.

(2) Instead of managing and investing fund money on their own behalf, an administering authority may, subject to the following provisions, appoint one or more investment managers to manage and invest it on their behalf.

(3) An administering authority may only appoint as an investment manager a person who—

(a) they reasonably believe is suitably qualified by his ability in and practical experience of financial matters to make investment decisions on their behalf, and

(b) is not an employee of that authority.

(4) An administering authority may only make such an appointment if—

(a) they have considered the value of the fund money to be managed by the investment manager or, as the case may be, by each of the investment managers to be appointed;

(b) they have taken proper advice; and

(c) they are satisfied, having regard—

(i) to the desirability of securing diversification of the management of the fund, and

(ii) to the value of the assets of the fund, that it will not be excessive.

(5) The terms of an appointment under paragraph (2) shall—

(a) provide for the appointment to be terminable by the administering authority giving not more than one month’s notice;

(b) require the investment manager to provide the administering authority at least once every three months with a report setting out the action he has taken under the appointment;

(c) require the investment manager to comply with such instructions as the administering authority may give;

(d) require the investment manager to have regard—

(i) to the need for diversification of investments of fund money, and

(ii) to the suitability of investments of any description of investment which he proposes to make, and of any investment proposed as an investment of that description; and

(e) prohibit the investment manager from making investments which would contravene regulation L6;

and in determining those terms an administering authority shall have regard to proper advice.

(6) Where an authority have made an appointment under paragraph (2) they shall—

(a) at least once every three months review the investments made by the investment manager; and

(b) from time to time consider the desirability of continuing or terminating the appointment.

(7) In exercising their functions under paragraph (6), an administering authority shall have regard to proper advice and—

(a) to the need for diversification of investments of fund money; and

(b) to the suitability of investments of any description of investment which the investment manager has made and of any investment made as an investment of that description.

(8) In this regulation—

• “home-regulated investment business” and “European institution” have the same meaning as in the Banking Coordination (Second Council Directive) Regulations 1992(61); and

• “proper advice” and “investment” have the same meaning as in regulation L5.

Accounts and audit

L9.  As soon as practicable after any audit of their pension fund an administering authority shall send each body whose employees contribute to the fund copies—

(a) of the revenue account and balance sheet of the fund, and

(b) of any report by the auditor.

Valuations and rates of contributions and adjustments

Valuations of pension fund

L10.—(1) Every administering authority—

(a) shall obtain an actuarial valuation of the assets and liabilities of their pension fund as at 31st March in the year 1995 and in every third year afterwards, together with a report by the actuary; and

(b) shall for that purpose provide the actuary with the consolidated revenue account of the fund and such other information as he may require.

(2) Unless the Secretary of State allows an extended period, the valuation and report are to be obtained within 12 months from the date as at which the valuation is made.

(3) Immediately an administering authority receive any such valuation and report they shall—

(a) send copies of them—

(i) to the Secretary of State,

(ii) to each body whose employees contribute to the fund, and

(iii) to any other body which is or may become liable to make payments to the fund in respect of pensions; and

(b) send the Secretary of State—

(i) a copy of the consolidated revenue account with which the actuary was provided, and

(ii) a summary of the assets of the fund at the date as at which the valuation was made (unless such a summary is contained in the report).

(4) Where an admission agreement ceases to have effect, the administering authority with whom it was made shall obtain an actuarial valuation as at the date of the cessation of the agreement of the liabilities of the employing body as respects their pension fund and shall send copies of it to that body and to the Secretary of State.

Actuary’s certificates

L11.—(1) Every administering authority shall, as soon as is reasonably practicable after obtaining a valuation from an actuary under regulation L10(1), obtain from him a certificate specifying—

(a) the common rate of employer’s contribution, and

(b) any individual adjustments,

for each year of the period of three years beginning with 1st April in the following year.

(2) As soon as is reasonably practicable after an administering authority establish a further fund under regulation L3 they shall obtain from the actuary consulted by them for the purposes of regulation L3(4) such a certificate as is mentioned in paragraph (1) in respect of the further fund, relating to each remaining year of the period to which the most recent certificate obtained by them under paragraph (1) relates, and as soon as is reasonably practicable after an administering authority obtain a valuation under regulation L10(4) they shall obtain from the actuary consulted by them for the purposes of that regulation a revision of the certificate under paragraph (1) or, as the case may be, this paragraph.

(3) For the purposes of paragraph (1), the common rate of employer’s contribution is the percentage of the remuneration of their employees who are members which should in the actuary’s opinion be paid to the fund by all bodies whose employees contribute to it so as to ensure solvency, having regard—

(a) to the existing and prospective liabilities of the fund arising from circumstances common to all those bodies, and

(b) to the desirability of maintaining as nearly constant a rate as possible.

(4) An individual adjustment is any percentage or amount by which in the actuary’s opinion contributions at the common rate should in the case of a particular body be increased or reduced, having regard to existing or prospective liabilities of, or of benefits accruing to, the fund arising from circumstances peculiar to that body.

(5) Immediately an administering authority receive a certificate under this regulation they shall send a copy of it—

(a) to the Secretary of State,

(b) to each body whose employees contribute to the fund, and

(c) to any other body which is or may become liable to make payments to the fund in respect of pensions.

Employers' liability to make payments

Employer’s contributions

L12.—(1) An employing authority shall contribute to the appropriate pension fund—

(a) in each year of any period of three years for which a certificate is required under regulation L11(1), or

(b) in the case of a body who have entered an admission agreement and are identified in the notice required by regulation L3(2), in each of the remaining years for which a certificate is required under regulation L11(2),

a sum equal to the presumed contribution for that year, increased or, as the case may be, reduced in accordance with any individual adjustment specified for the year in respect of the body under regulation L11(1)(b).

(2) An employing authority shall, during each year of every such period as is mentioned in paragraph (1), pay to the appropriate pension fund at the end of each of the intervals determined under regulation L14, on account of the sum required by paragraph (1) to be paid in that year, a sum equal to the presumed contribution for that interval, increased or, as the case may be, reduced by—

(a) any percentage, or

(b) a part, proportionate to the length of the interval, of any amount expressed in money terms,

that has been specified as an individual adjustment for the year in respect of the body under regulation L11(1)(b).

(3) For the purposes of paragraphs (1) and (2), the presumed contribution for any period for an employer is a sum equal to the common percentage for the year in question of the remuneration on which contributions have during that period been paid to the fund under regulation C4, C5 or C6 by their employees who are members; and in this paragraph “the common percentage” means the common rate of employer’s contribution specified under regulation L11, expressed as a percentage.

(4) If all or part of any sum due under paragraph (2) remains unpaid at the end of the period of one month after the date on which it becomes due, the administering authority may require the employing authority to pay interest on the amount remaining unpaid, calculated at one per cent. above base rate on a day to day basis from the due date of payment to the date of payment, and compounded with three-monthly rests.

Employer’s further payments

L13.—(1) Where immediately before the commencement date any payments remained to be made by an employee under regulation D10 (added years) or D11 (payments under former regulations for added years) of the 1974 regulations, his employing authority shall, so long as he remains in their employment, pay to the appropriate pension fund—

(a) contributions equal to the amounts payable by the employee in respect of his obligations under those regulations by virtue of Schedule C6 or Schedule M4; or

(b) where the amounts payable by the employee—

(i) were reduced under proviso (ii) to regulation 12(3) of the Benefits regulations or the proviso to paragraph 1 of Schedule 6 to the 1974 regulations, or

(ii) were or are reduced by virtue of the payment of a lump sum under Schedule 4 to the 1974 regulations or Schedule 7 to the 1986 regulations or paragraph 4 of Schedule C5 to these regulations,

contributions equal to the amounts that would have been payable by the employee but for the reduction.

(2) Where—

(a) on the employee’s ceasing to hold his employment the employing authority agree to pay a sum under paragraph 4A(5) of Schedule 5 to the 1974 regulations (as deemed by virtue of paragraph 9 of Schedule C6 to have continued to have effect); and

(b) the employee pays the required amount for the purposes of that paragraph,

the employing authority shall pay the agreed sum to the appropriate pension fund before the end of the period of one month beginning on the date of the employee’s payment.

(3) If all or part of the agreed sum remains unpaid at the end of that period, the administering authority may require the employing authority to pay interest on the amount remaining unpaid, calculated at one per cent. above base rate on a day to day basis from the day after the end of the period to the date of payment, and compounded with three-monthly rests.

(4) Any extra charge on the appropriate pension fund resulting from—

(a) a determination under regulation D4 of the 1974 regulations (previous employment under an officer to be treated as non-contributing service);

(b) a resolution under regulation D9 of the 1974 regulations (non-contributing service to be treated as contributing service);

(c) a resolution under regulation D14 or G8 of the 1974 regulations or regulation D7 of the 1986 regulations or regulation B16 or B17 of these regulations (increase of membership); or

(d) an additional benefit granted under regulation E13 of the 1974 regulations or regulation E13 of the 1986 regulations (additional benefits for female nursing staff),

shall be repaid to the fund by the employing authority concerned.

Payments by employing authorities to appropriate administering authorities

L14.—(1) Every employing authority which is not an administering authority shall pay to the appropriate administering authority, at such intervals of not more than 12 months as that authority may determine—

(a) all amounts from time to time deducted from the remuneration of their employees under these regulations;

(b) any amount received by them under regulation C7, by deduction from remuneration or otherwise, during the interval;

(c) any extra charge payable under regulation L13(1) to (3), the amount of which has been notified to them by the administering authority during the interval; and

(d) subject to paragraph (2), a contribution towards the cost of the administration of the fund.

(2) Paragraph (1)(d) does not apply where the cost is paid under regulation L4(3) out of money forming part of the fund.

(3) The annual amount of the contributions payable under paragraph (1)(d) is to be agreed between the body concerned and the administering authority, or in default of agreement, determined by the Secretary of State.

(4) Subject to paragraph (5), every payment under paragraph (1)(a) is to be accompanied by a statement showing—

(a) the name and remuneration of each of the employees in relation to whom the payment is made;

(b) which of those employees are paying additional voluntary contributions under regulation C24 or continuing to pay instalments under regulation C7A of the 1986 regulations (as continued in effect by paragraph 1 of Schedule C6);

(c) the amounts comprised in the payment which represent deductions from the remuneration of each of those employees and the periods in respect of which the deductions were made;

(d) which of those amounts are amounts representing deductions in respect of such contributions or instalments as are mentioned in paragraph (b);

(e) the amount of the remuneration of those employees from or in respect of whom deductions have not been made; and

(f) the names of any employees who are members from whose remuneration no deductions have been made.

(5) An administering authority may direct that, instead of complying with paragraph (4), the employing authorities making payments to them under paragraph (1)(a) are to provide them with the information mentioned in paragraph (4) in such form, and at such intervals of not more than 12 months, as may be specified in the direction.

(6) If all or part of any sum due under this regulation remains unpaid at the end of the period of one month after the date on which it becomes due, the administering authority may require the employing authority concerned to pay interest, calculated and compounded as mentioned in regulation L12(4).

(7) Payments made in pursuance of paragraph (1)(a) to (c) shall be carried to the appropriate pension fund.

Extra charges resulting from early retirement of chief officers

L15.—(1) Subject to paragraph (5), where a person has become entitled to benefits under regulation E2(1)(b)(iii) and (3)(c) of the 1974 regulations—

(a) the new authority shall in respect of any resulting extra charge on the relevant fund make a payment in accordance with paragraph (2) to the authority administering the relevant fund, and

(b) that administering authority shall carry the payment to that fund.

(2) The payment to be made under paragraph (1)(a)—

(a) is a payment of an amount to be determined by the relevant fund’s actuary as at—

(i) the person’s NRD, or

(ii) if sooner, his date of death, and

(b) becomes due three months after the new authority have been notified of the amount determined by the actuary.

(3) If all or part of any sum due under this regulation remains unpaid at the end of the period of one month after the date on which it becomes due, the authority administering the relevant fund may require the new authority to pay interest, calculated and compounded as mentioned in regulation L12(4).

(4) Paragraphs (1) to (3) do not apply—

(a) while there is in force any agreement made before 6th January 1986 between the new authority and the authority administering the relevant fund as to the making of payments in respect of extra charges of the kind mentioned in paragraph (1), or

(b) where all payments in respect of a person that were required by such an agreement have been made.

(5) In this regulation, in relation to a person who has become entitled to benefits—

• “the new authority” is the body who are in relation to him the new authority for the purposes—

  (a)

  of the Local Government (Retirement of Chief Officers) Regulations 1973(62); or

  (b)

  of the Water Authorities (Retirement of Chief Officers) Regulations 1974(63); and

• “the relevant fund” means the pension fund out of which the benefits are payable.

Transfers, recovery and retention from funds in misconduct cases

Transfer of sums from the pension fund to compensate for former member’s misconduct

L16.—(1) This regulation applies where—

(a) a person (“the former employee”) has ceased to hold an employment in which he was a member in consequence of—

(i) an offence of a fraudulent character, or

(ii) grave misconduct,

in connection with that employment;

(b) the body who were his employing authority in that employment (“the former employing authority”) have suffered direct financial loss by reason of the offence or misconduct; and

(c) the former employee—

(i) became entitled to benefits under Part D and a direction has been given under regulation H4(1), or

(ii) he did not become so entitled and his total period of membership is less than two years.

(2) Where this regulation applies and the former employing authority are an administering authority, they may transfer an appropriate amount from their pension fund to the appropriate fund or account.

(3) Where this regulation applies and the former employing authority are not an administering authority, the appropriate administering authority shall, subject to paragraph (5), pay the former employing authority an appropriate amount out of the pension fund if requested to do so.

(4) For the purposes of paragraphs (2) and (3), an appropriate amount is an amount which does not exceed—

(a) the amount of the direct financial loss, or

(b) the amount of any contributions which could have, but have not, been returned to the former employee, or paid to his spouse or a dependant, under regulation C21(4).

(5) Where a payment in lieu of contributions is due or has been made in respect of the former employee, the administering authority may reduce a payment under paragraph (3) by half the amount of the payment in lieu of contributions.

(6) If, after making a payment under paragraph (3), the appropriate administering authority are required to pay a transfer value in respect of the former employee, the former employing authority shall repay the administering authority the amount of that payment if requested to do so.

Recovery or retention where former member has misconduct obligation

L17.—(1) This regulation applies where a person (“the former employee”)—

(a) has ceased to hold an employment, in respect of which he was or had at some time been a member, in consequence of a criminal, negligent or fraudulent act or omission on his part in connection with that employment;

(b) has incurred some monetary obligation, arising out of that act or omission, to the body who were his employing authority in that employment (“the former employing authority”); and

(c) is entitled to benefits under Part D.

(2) Where this regulation applies the former employing authority may recover or retain out of the appropriate pension fund the amount of the monetary obligation, or if less, the actuarial value, at the time of the recovery or retention, of all rights enjoyed by or in respect of the former employee under these regulations with respect to his previous membership (other than rights enjoyed by virtue of the receipt of a transfer value from the scheme managers of a non-local government scheme or the trustees or managers of a personal pension scheme, a self-employed pension arrangement, a retirement annuity contract or an appropriate policy).

(3) The power under paragraph (2) may not be so exercised as to deprive a person of his guaranteed minimum pension or, in the event of his leaving a surviving spouse, deprive that spouse of any widow’s or widower’s guaranteed minimum pension, unless the person ceased to hold his employment in consequence of—

(a) an offence of treason, or

(b) one or more offences under the Official Secrets Act 1911 to 1989(64) for which he has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years.

(4) The former employing authority shall give the former employee—

(a) not less than three months' notice of the amount to be recovered or retained under paragraph (2); and

(b) a certificate showing the amount so recovered or retained, the manner in which it is calculated, and the effect of the recovery or retention on his benefits or prospective benefits.

(5) If there is any dispute as to the amount of the monetary obligation mentioned in paragraph (1)(b), the former employing authority may not recover or retain any amount under paragraph (2) until the obligation has become enforceable under an order of a competent court or the award of an arbitrator.

Certain statutory payments to be met out of appropriate funds

Pension increases and cash equivalents under the Pension Schemes Act 1993

L18.—(1) Any increase in a pension which is required by virtue of Chapter III of Part IV of the Pension Schemes Act 1993(65) (protection of increases in guaranteed minimum pensions: anti-franking) shall be paid out of the appropriate pension fund.

(2) Any payment which an appropriate administering authority are required to make as a result of a person’s taking a right to a cash equivalent under Chapter IV of that Part shall be made out of the appropriate pension fund.

Pension increases under the Pensions (Increase) Acts

L19.—(1) Where a pension, within the meaning of the Pensions (Increase) Act 1971(66) (“the 1971 Act”), has become payable out of a pension fund maintained under these Regulations—

(a) any increase of the pension under the 1971 Act or the Pensions (Increase) Act 1974(67), shall be paid out of that pension fund;

(b) Schedule 3 to the 1971 Act shall only have effect in relation to any such increase—

(i) where the last employing authority is not a body which is required by regulation L12 to contribute to that pension fund nor a Water Act Company;

(ii) where the last employing authority is such a body or Company and the increase was payable before 1st April 1990; or

(iii) where the last employing authority ceases after 31st March 1990 to be such a body, only so far as the cost of any such increase has not, in the opinion of the fund’s actuary, already been provided for by contributions paid under regulation L12.

(2) Where in relation to any such pension the last employing authority is a Water Act Company, the cost of any increase of the pension under the 1971 Act or the Pensions (Increase) Act 1974, payable on or after 1st April 1990 shall be reimbursed to the appropriate administering authority by the National Rivers Authority out of the new main fund (within the meaning of the Local Government Superannuation (National Rivers Authority) Regulations 1993(68)).

(3) The amounts due to an administering authority under paragraph (2) or under Schedule 3 to the 1971 Act shall be paid to them at such intervals of not more than 12 months as the authority may determine, and, if all or part of any sum so due remains unpaid at the end of the period of one month after the date on which it becomes due, the administering authority may require the authority from which it is due to pay interest on the amount remaining unpaid, calculated and compounded as mentioned in regulation L12(4); and the administering authority shall carry and credit to their pension fund the amounts paid to them under paragraph (2), Schedule 3 to the 1971 Act and this paragraph.

(4) For the purposes of this regulation “the last employing authority” has the same meaning as in paragraph 1(2) of Schedule 3 to the 1971 Act, except that in its application to a pension which has become payable to or in respect of a person in relation to service with—

(a) a body specified in Schedule B4, which has entered into an admission agreement,

(b) a body employing persons deemed to be in employment by virtue of paragraph 5 or 6 of Schedule B3, or

(c) a body which is a company under the control of a body described in Part I of Schedule B1,

it means that body.

(5) In this regulation “Water Act Company” means—

(a) a company nominated in accordance with section 4 of the Water Act 1989(69) as the successor company of a water authority, or

(b) a company nominated by order under section 83(1) of that Act.

State scheme premiums

L20.—(1) Where a LGPs employer pay a contributions equivalent premium, a transfer premium or a limited revaluation premium under section 55 of the Pension Schemes Act 1993 in respect of any member, they are entitled to recover, or if they are an administering authority to retain, out of the appropriate pension fund—

(a) in the case of a contributions equivalent premium, a sum not exceeding the amount of that premium, less the amount (if any) which they could recover or retain under section 61 of that Act in respect of the premium; and

(b) in the case of a transfer premium or a limited revaluation premium, the amount of the premium.

(2) Where a contributions equivalent premium is refunded under regulation 24(3)(c) of the Occupational Pension Schemes (Contracting-out) Regulations 1984(70), the authority to whom it is refunded shall pay to the appropriate pension fund a sum equal to the amount of the premium.

Modifications of Part L as respects National Rivers Authority funds

Modifications of Part L as respects National Rivers Authority funds

L21.—(1) In its application to the new main fund (within the meaning of the Local Government Superannuation (National Rivers Authority) Regulations 1993) this Part shall have effect with the following modifications.

(2) Omit regulations L3, L9, L10(3)(a)(ii) and L12 to L15.

(3) For regulation L11 substitute—

“L11.— (1) The National Rivers Authority shall as soon as is reasonably practicable after obtaining a valuation under regulation L10 obtain from the same actuary a certificate specifying the amount by which in his opinion the assets of the fund exceed or, as the case may be, fall short of, the amount required to meet its existing and prospective liabilities.

(2) Immediately the National Rivers Authority receive such a certificate they shall send a copy of it to the Secretary of State.”.

PART M MISCELLANEOUS AND GENERAL PROVISIONS

Modification in special cases

Local government reorganisation

M1.  Schedule M1 has effect as respects the application of these regulations to certain employees who have been affected by the operation of the Local Government Acts and other reorganisations effected by or under statutes.

Modifications of regulations in special cases

M2.  Schedule M2 has effect for the purposes of modifying these regulations in their application in the cases there mentioned.

Modifications applying to certain City of London employees

M3.—(1) These regulations apply to exiting contributors, with the substitution for paragraph 6 of Schedule M1 of the paragraph set out in Part I of Schedule M3.

(2) These regulations apply to both existing and former contributors—

(a) subject to the modifications in Part II of Schedule M3, and

(b) with the substitution for Schedule H1 to these regulations of the Schedule set out in Part III of Schedule M3.

(3) In this paragraph and that Schedule, unless the context otherwise requires, “existing contributor”, “former contributor”, and “the local Act superannuation provisions” have the same meaning as in the Local Government Superannuation (City of London) Regulations 1977(71) .

Information and records

Information to be supplied by certain employees

M4.—(1) Subject to paragraph (4)—

(a) within 3 months after a person becomes a member of the Scheme, and

(b) within 6 months after any change which is material for the purposes of these regulations occurs in or in relation to a person’s employment under a LGPS employer in relation to which he is a member of the Scheme,

the LGPS employer shall request the person in writing to provide them with the documents specified in paragraph (2).

(2) The documents mentioned in paragraph (1) are—

(a) a statement in writing of all the person’s previous periods of employment (whether by a LGPS employer or by any other person) and any national service and war service, and

(b) copies of all notifications previously given to him under these regulations, the 1986 regulations, the 1974 regulations, the Local Government Superannuation. (Administration) Regulations 1954(72) or the Local Government Superannuation (Administration) Regulations 1938(73).

(3) A request under paragraph (1) shall include a conspicuous statement—

(a) directing the member’s attention to the importance of this providing full and accurate information, and

(b) warning him that the omission or inaccuracy may prejudiced the ascertainment of his rights under these regulations.

(4) Paragraph (1) does not apply if the LGPS employer are satisfied that they, or the appropriate administering authority if different, already have a complete and accurate record of any previous service or employment which is material for the purposes of these regulations.

Records to be kept by authorities

M5.—(1) A LGPS employer are to keep, in such form as they think fit, a record of—

(a) the name of, and

(b) all their decisions under regulation J2(1) in relation to,

each of their employees who is a member.

(2) An administering authority are to keep, in such form as they think fit, a record of—

(a) the name of, and

(b) all their decisions under regulation J2(2) of these regulations or regulation N4 of the 1986 regulations (was service) in relation to,

every member in relation to whom they are the appropriate administering authority.

Transmission of documents and information

M6.—(1) A LGPS employer who are not an administering authority are to send the appropriate administering authority, as soon as is reasonably practicable—

(a) copies of all documents provided under regulation M4,

(b) copies of all notifications of decisions made under regulation J2(1) or J3(1),

(c) copies of all statements and statutory declarations provided under regulation C26, and

(d) such other documents and information as he administering authority may reasonably require for the purpose of discharging their functions under these regulations.

(2) A LGPS employer who are not an administering authority—

(a) on receiving from a member or former member notice of his intended retirement, or

(b) on giving an employee who is a member or former member notice to terminate his employment in circumstances in which he may become entitled to a return of contributions or to a benefit payable out of the appropriate pension fund, or

(c) on becoming aware of any other circumstances which may necessitate any payment out of the fund,

shall, as soon as is reasonably practicable—

(i) inform the appropriate administering authority of the notice or, as the case may be, other circumstances,

(ii) send them particulars of the member’s or former member’s remuneration during the period that is relevant to a decision on the amount of the benefit that may become payable to or in respect of him, and

(iii) send them a copy of any relevant medical or death certificate and of any certificate issued by the body under paragraph 4 of Schedule D1 (reduction in remuneration).

(3) When an administering authority notify a person who is not in their employment of a decision under regulation J2(2), they shall send a copy of the notification to the body, if any, who are the employing authority in relation to that person.

Supplementary provisions

Right to opt out

M7.—(1) Where—

(a) apart from this regulation, any provision of these regulations, which re-enacts with any modification any provision revoked by these regulations, would place any person to whom a relevant benefit is or may become payable in a worse position in relation to that benefit than that he would have been in if that modification had not been made, and

(b) that person so elects, by notice in writing given to the appropriate administering authority within the period of six months beginning with the commencement date,

then, subject to paragraph (3), these regulations shall have effect, in relation to him and to that benefit, as if these regulations had re-enacted the revoked provision without modification.

(2) In this regulation—

• “relevant benefit” means a benefit payable to, or in respect of, a person who before the commencement date—

  (a)

  ceased to hold an employment in respect of which he was a member (whether or not he has subsequently become a member again); or

  (b)

  died while in such employment; and

• “benefit” includes a return of contributions and any pension payable to a widow, widower or any dependant by virtue of a surrender.

(3) If an election under paragraph (1) is made in relation to a benefit in respect of a person who is a member, or subsequently becomes a member again—

(a) the election shall have effect in relation to the benefit only to the extent that it accrues or has accrued by virtue—

(i) of periods of membership before the cessation referred to in paragraph (2)(a) (or, if there has been more than one such cessation, the last of them before the commencement date); or

(ii) of contributions paid in respect of such periods of membership; and

(b) in determining entitlement to, or the amount of, the benefit to that extent, he shall be treated as if he had never become a member again at any time after the cessation referred to in paragraph (2)(a) (but without prejudice to the application of this paragraph);

and these regulations shall have effect accordingly.

Transitional and transitory provisions

M8.—(1) Schedule M4 has effect for the purpose of making transitional provision and savings consequential on the making of these regulations.

(2) Nothing in that Schedule affects the general operation of sections 16 and 17 of the Interpretation Act 1978(74) (as applied by section 23 of that Act).

Revocations

M9.  The subordinate legislation specified in Schedule M5 is revoked to the extent specified in the third column (but subject to the provisions in Schedule C6 and the savings in Schedule M4).

Consequential amendments

M10.  The subordinate legislation specified in Schedule M6 has effect subject to the amendments there specified (which are consequential on the making of these regulations).

Applications to Isles of Scilly

M11.  These regulations apply to the Isles of Scilly as if the Isles of Scilly were a district in the county of Cornwall and the Isles of Scilly were the council of that district.

Signed by authority of the Secretary of State

David Curry

Minister of State,

Department of the Environment

6th April 1995