The Local Government Pension Scheme Regulations 1997 (Amendment) Regulations 1998

Citation and commencement and interpretation

1.  These Regulations may be cited as the Local Government Pension Scheme Regulations 1997 (Amendment) Regulations 1998 and shall come into force on 12th June 1998 but shall have effect from 1st April 1998.

Amendment of Regulations

2.  The Local Government Pension Scheme Regulations 1997(1) shall be amended in accordance with the following provisions of these Regulations.

General eligibility for membership: employees of Scheme employers etc.

3.  In regulations 4(6), add at the end as new sub-paragraphs the following–

“(g) the Service Authority for the National Crime Intelligence Service;

(h) the Service Authority for the National Crime Squad(2).”.

Further restrictions on eligibility

4.  In regulation 6(8), for “(3)” substitute “(4)”.

Excluded membership

5.  In regulation 10(2)(b), for “Chapter III” substitute “Chapter II”.

Meaning of pay

6.  In regulation 13–

(a) delete sub-paragraph (b) of paragraphs (1) and (8);

(b) in paragraph (2)(f), for “(but see paragraphs (8) and (9))” substitute “(but see paragraph (8))”;

(c) in paragraph (8)(a) delete “and”; and

(d) delete paragraph (9).

Members with lower rate rights

7.  In regulation 14–

(a) in paragraph (1), delete “or (3)”; and

(b) in paragraph (2)(b), for paragraph (ii) substitute–

“(ii) he falls within paragraph (3)”.

Inland Revenue limits on contributions

8.  In regulation 16(2), for “pay” substitute “remuneration”.

Calculations

9.  In regulation 20(6), after sub-paragraph (a) insert–

“(aa) regulation 31 (elections for early payment),”.

Final pay

10.  In regulation 21(4), add at the end “or, in calculating death grant, three eightieths of final pay multiplied by total membership if greater”.

Other final pay periods

11.  In regulation 22–

(a) in paragraph (4), insert “to whom paragraph (4A) applies” after “A member”; and

(b) insert after paragraph (4)–

“(4A) This paragraph applies to a member whose pay in the period which he would elect as his final pay period if he made an election under paragraph (4) is higher than his pay in a final pay period determined under regulation 21(2) or paragraph (1), (2) or (3).”.

Permanent reductions in pay: certificates of protection of pension benefits

12.  In regulation 23(3), insert after paragraph (3)–

“(3A) A member is not entitled to be issued with a certificate under this regulation if the reduction in his rate of pay–

(a) is temporary, or

(b) consists in the termination of, or a reduction in, a temporary increase in the rate of pay.”.

Amounts of ill-health pension and grant

13.  In regulation 28, insert after paragraph (4)–

“(4A) The maximum period which may be added to a member’s total membership period to calculate his enhanced membership period in respect of all his local government employments is 10 years.”.

Other early leavers: deferred retirement benefits and election for early payment

14.  In regulation 31(6), for sub-paragraph (a) substitute–

“(a) he may elect to receive payment of the retirement benefits immediately, whatever his age, and”.

Re-employed and rejoining deferred members

15.  In regulation 32(10), delete “with a different Scheme employer”.

Death grants

16.  In regulation 38(1), after “the administering authority” insert “at their absolute discretion”and after “the member’s nominee” insert “or personal representatives,”.

Reduction of some surviving spouses' pensions

17.  In regulation 42(3), add at the end–

• “where the widower was married to the member at some time while she was in local government employment after 31st March 1972”.

Children’s short-term pensions

18.  In regulation 45(6), add at the end “if the child is in the care of the surviving spouse”.

Children’s long term pension

19.  In regulation 46(9)(a)(i), delete “and the child is in the care of the spouse”.

Power of employing authority to increase total membership of new members

20.  In regulation 53(7), insert “payment of” after “immediately entitled to”.

Payments to increase total membership

21.  In regulation 55, delete paragraph (5).

Elections to pay AVCs

22.  In regulation 60(2), for “his pay” substitute “his remuneration”.

Interest

23.  In regulation 82–

(a) in paragraph (2), for “regulation 94(1)” substitute “regulation 87(1) and (2A), 89(5) or 94”; and

(b) delete paragraph (3).

Right to return of contributions

24.  In regulation 87–

(a) in paragraph (1), for “and, if repayment” to the end of the paragraph substitute “with interest calculated to the date he ceased to be employed”;

(b) in paragraph (2), after “ceased to be a member” insert “by reason of a notification under regulation 8(2) or”; and

(c) after paragraph (2) insert–

“(2A) If repayment of the contributions (with interest due under paragraph (1), if applicable) has not been made before the expiry of the period of one year beginning with the date when active membership ceases, the person is entitled to interest on the repayment which should have been made, calculated as provided in regulation 82(2), the due date being the date when active membership ceased.”.

Exclusion of rights to return of contributions

25.  In Regulation 88–

(a) in paragraph (2), for “grave misconduct” substitute “an offence of a fraudulent character”; and

(b) in paragraph (3), for sub-paragraph (b) substitute–

“(b) a transfer value has been credited to the appropriate fund for him”.

Deduction and recovery of member’s contributions

26.  In regulation 89–

(a) for paragraph (5) substitute–

“(5) If–

(a) an employing authority deduct any amount in error from a person’s pay or any other sum due to him in respect of contributions, other than contributions due to be repaid to him by virtue of his having left without any rights under the Scheme (which are dealt with under regulation 87), and

(b) the amount has not been repaid to him before the expiry of the period of one month beginning with the date of deduction,

the appropriate body must pay him interest on that amount calculated as provided in regulation 82(2), the due date being the date of deduction.”; and

(b) add as paragraphs (5A) and (6)–

“(5A) Where the employee’s contributions have been paid into the appropriate fund, the repayment and interest shall be made out of that fund.

(6) “The appropriate body” for the purpose of paragraph (5) is–

(a) the appropriate administering authority where the employee’s contributions have been paid into the appropriate fund, and

(b) the person’s employing authority where the employee’s contributions have not yet been paid into the appropriate fund.”.

Interest on late payment of certain benefits

27.  In regulation 94–

(a) in paragraph (1), for paragraphs (a) and (b) substitute “calculated from the due date as provided in regulation 82(2)”;

(b) as a new paragraph (1A) insert–

“(1A) The relevant period–

(a) in the case of a pension is one year;

(b) in the case of a payment made under regulation 38(1), is the period ending one month after the date on which the administering authority receives notification of the member’s death; and

(c) otherwise is one month.”;

(c) in paragraph (2), for “one month after the amount” substitute “the date on which it”;

(d) after paragraph (2) insert–

“(2A) In the case of a retirement grant, the due date is the date on which it is payable.”;

(e) in paragraph (3), for sub-paragraphs (a) and (b) substitute “the member dies”; and

(f) add–

“(4) In the case of an ill-health grant, the due date is the day after the member ceased to hold his employment.

(5) In the case of a payment of a lump sum under regulation 49 or 50, the due date is the day after the member would otherwise become entitled to payment of a pension.”.

First instance decisions

28.  In regulation 97–

(a) in paragraph (3), for “the employment ends” substitute “the earlier of the date the employment ends or the date specified in the notification mentioned in regulation 8(3)”; and

(b) in paragraph (10), for “that authority’s approval” substitute “the approval of the appropriate administering authority to their choice of registered medical practitioner”.

Statements of policy concerning exercise of discretionary functions

29.  In regulation 106(3), add at the end “and each such employer or authority shall publish that statement”.

Statements of policy concerning abatement of retirement pensions in new employment

30.  In regulation 109(3), before “authority” insert “administering”.

Forfeiture of pension rights after conviction of employment-related offences

31.  In regulation 111(6), after “given” insert “if an application for a forfeiture certificate has been made by the former employing authority”.

Members employed by magistrates' courts committees

32.  In regulation 133(11)(b), for “paragraph (3) of regulation 103” substitute “the words “(otherwise than in the exercise of a discretion)” in paragraph (1)(a)”.

Definitions

33.  In Schedule 1, in the definition of “City of London employing body” delete “or” at the end of paragraph (c) and add after paragraph (d)–

“, or

(e) the Corporation of the City of London;”.

Revenue Restrictions

34.  Schedule 4 is amended as set out in the Schedule to these Regulations.

Right to opt out

35.—(1) Where–

(a) apart from this regulation, the amendments made by these Regulations would place any relevant beneficiary in a worse position than he would otherwise be, and

(b) that relevant beneficiary so elects by notice in writing given to the appropriate administering authority within the period of six months beginning with the date on which these Regulations come into force,

then the Local Government Pension Scheme Regulations 1997 shall have effect in relation to him as if those amendments had never been made.

(2) For the purposes of paragraph (1), a relevant beneficiary is a person to whom any benefit is or may become payable being a benefit payable to or in respect of a person who

(a) ceased to hold an employment in respect of which he was a member (whether or not he had subsequently recommenced any such employment), or

(b) died while in such employment,

before the date on which these Regulations come into force.

Signed by authority of the Secretary of State

Hilary Armstrong

Minister of State,

Department of the Environment, Transport and the Regions

15th May 1998