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”).
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(1), it shall be maintained by that body for the purposes of these regulations.
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.
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(2).
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(3) 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(4) 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—
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
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.
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(5), 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(6).
(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(7),
(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(8) 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(9);
“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—
in securities of, or in loans to or deposits with, any one body, other than investments in unit trust schemes,
in units or other shares of the investments subject to the trust of any one unit trust scheme,
in the acquisition, development or management or in any advance of money upon the security of any one piece of land, or
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.
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).
L8.—(1) In this Part “investment manager” means—
(a)a person who is authorised under the Financial Services Act 1986(10) 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(11); and
“proper advice” and “investment” have the same meaning as in regulation L5.
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.
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.
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.
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.
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.
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.
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—
“the relevant fund” means the pension fund out of which the benefits are payable.
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.
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(14) 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.
L18.—(1) Any increase in a pension which is required by virtue of Chapter III of Part IV of the Pension Schemes Act 1993(15) (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.
L19.—(1) Where a pension, within the meaning of the Pensions (Increase) Act 1971(16) (“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(17), 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(18)).
(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(19) as the successor company of a water authority, or
(b)a company nominated by order under section 83(1) of that Act.
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(20), the authority to whom it is refunded shall pay to the appropriate pension fund a sum equal to the amount of the premium.
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.”.
1961 c. 62; section 11 was amended by the Greater London Council (General Powers) Act 1967 (c.xx), section 10(1), Superannuation Act 1972 (c. 11), Schedule 6, paragraph 40, Local Government Act 1985 (c. 51), Schedule 14, paragraph 38, Schedule 17, Financial Services Act 1986 (c. 60), Schedule 16, paragraph 2, Norfolk and Suffolk Broads Act 1988 (c. 4), Schedule 6, Water Act 1989 (c. 15), Schedule 25, paragraph 29, Local Government (Wales) Act 1994 (c. 19), Schedule 16, paragraph 19(1), Police and Magistrates' Courts Act 1994 (c. 29), Schedule 4, paragraph 4; section 11 was repealed in part by the London Government Act 1963, Schedule 8, Local Government Act 1972 (c. 70), Schedule 30, Education Reform Act 1988 (c. 40), Schedule 13.
1963 c. 18; section 1 was amended by virtue of the Companies Consolidation (Consequential Provisions) Act 1985 (c. 9), section 30, Schedule 2, the Building Societies Act 1986 (c. 53), section 120, Schedule 18, Part I, the Post Office Act 1969 (c. 45), section 103(1)(f), the Finance Act 1964 (c. 49), section 26(7), Schedule 9 and the Financial Services Act 1986 (c. 60), section 212, Schedule 16, paragraph 4.
1986 c. 60; relevant amending instruments are S.I. 1988/318, S.I. 1988/803.