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

Prescribed persons and transfer values

6.  The principal Regulations are amended by the insertion of the following as a Schedule—

(Regulation K29)

“Schedule K2 MIS-SOLD PENSIONS

Prescribed persons

1.   For the purposes of regulation K29(2) (prescribed persons to whom information may be provided) the persons are:—

(a) a person who is or has been an authorised person within the meaning of the Financial Services Act 1986 (“the 1986 Act”) (“an authorised person”);

(b) an appointed representative within the meaning of section 44 of the 1986 Act (“an appointed representative”);

(c) a recognised self-regulating organisation within the meaning of the 1986 Act;

(d) a recognised professional body within the meaning of the 1986 Act;

(e) the Securities and Investments Board;

(f) the Investors Compensation Scheme Limited;

(g) a professional indemnity insurer of an authorised person or an appointed representative;

(h) The Chartered Accountants Compensation Scheme Limited;

(i) The Solicitors Indemnity Fund Limited;

(j) a person or body arbitrating or adjudicating in, or investigating or considering, a complaint brought by such an individual as is mentioned in section 172(1) of the Pensions Act against an authorised person or an appointed representative;

(k) a person or body appointed to act on behalf of any of the above.

2.   For the purposes of regulation K29(3) (persons on whom fees may be imposed) the persons are any person listed in sub-paragraphs (a) to (d) and (f) to (i) of paragraph 1 and any person or body appointed to act on behalf of any of those persons.

3.   A restitution payment in relation to an individual shall be an amount equal to the total of:—

(a) the capitalised value of the rights which would have accrued to him under these regulations at the material date if he had been a member of the Scheme throughout the relevant period including the capitalised value of any rights under the Pensions (Increase) Act 1971(1) and the Pensions (Increase) Act 1974(2), and

(b) the transfer value (if any) previously paid out of the Scheme under regulation K2 to the personal pension scheme in respect of the transferred-out service increased by interest at a rate approved from time to time by the Government Actuary for that purpose on a daily basis over the period from the date on which such a transfer value was paid out of the Scheme to the date on which it is assumed, for the purpose of calculating the restitution payment, that a transfer value will be paid to the Scheme (“the calculation date”).

4.   The amount, if any, calculated by virtue of paragraph 3(b) shall be at least equal to the amount of the cash equivalent transfer value which would be payable by the Scheme in respect of the transferred-out service if the Scheme were to pay a cash equivalent transfer value in respect of that service immediately after the calculation date.

5.   In this Schedule—

(a) “capitalised value” means the capitalised value at the material date as determined by the fund authority in such manner as shall be approved by the Government Actuary and using the current tables of factors issued by the Government Actuary for calculating cash equivalent individual transfer values;

(b) “material date” means the date on which the administering authority is asked to provide the calculation of the restitution payment;

(c) “relevant period” has the same meaning as in regulation K15A(3) ((b)(i)); and

(d) “transferred-out service” means the period of service which the member transferred out of the Scheme by exercising a right to a cash equivalent under regulation K2.”.

(1)

1971 c. 56.

(2)

1974 c. 9.