The Local Government Pension Scheme (Provision of Information, Administrative Expenses and Restitution) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme Regulations 1995 (“the principal Regulations”) and make provision in connection with persons who have been eligible to be members of the Local Government Pension Scheme (“the Scheme”) but have instead made contributions to a personal pension scheme and have suffered loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 (“the affected persons”).

Regulation 4 amends Part K of the principal Regulations which deals with transfers. It adds a new regulation K15A which provides for the calculation of the period of membership allowed under regulation K14(1)(a) and the period of total membership credited in respect of an affected person who has joined or rejoined the Scheme after a period of membership of a personal pension plan.

It also adds a new regulation K29 which—

• * sets out, for the purposes of section 172 of the Pensions Act 1995 (“the Act”), the prescribed circumstances in which information about such persons may be given;

• * defines by reference to a new Schedule, K2, added to the principal Regulations by regulation 6 of these Regulations, the “prescribed persons” for the purposes of—

  (i)

  section 172(1) of the Act (prescribed persons to whom information may be given and fees imposed in respect of expenses incurred in giving that information); and

  (ii)

  section 172(2) of the Act (persons who may be charged fees in respect of administrative expenses incurred in connection with admission, readmission or the payment of a restitution payment to the Scheme);

• * prescribes administering authorities in place of the Secretary of State as the persons who may provide the information and impose fees; and

• * makes provision for the calculation of the amount which would need to be made to the Scheme in respect of an affected person to restore the position in relation to him to what it would have been if he had been a member of the Scheme throughout the period when he made contributions to the personal pension scheme.

Regulation 2, 3 and 5 make consequential amendments to the principal Regulations.

Regulation 6 adds Schedule K2 as a schedule to the principal Regulations.