The Local Government Pension Scheme (Amendment) Regulations 1998

Explanatory Note

(This note is not part of the Regulations)

These Regulations make various amendments to the Local Government Pension Scheme Regulations 1995 (“the principal Regulations”) which constitute the Local Government Pension Scheme (“the LGPS”). Regulations 2 to 5 take effect on various dates earlier than the date on which these Regulations come into force. Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect.

Regulation 3 makes amendments in connection with provisions relating to members who opted out of or chose previously not to join the LGPS and who have suffered loss as a result of a contravention which is actionable under section 62 of the Financial Services Act 1986 (mis-sold pensions).

Paragraphs (1), (2), (4) and (5) of Regulation 3 make minor, consequential amendments.

Regulation 3(3) disapplies paragraph (1) of regulation K8 of the principal Regulations (minimum transfer value paid out by a fund authority of the LGPS).

Regulation 3(6) substitutes a new regulation K15A (mis-sold pensions) of the principal Regulations. This clarifies the previous regulation K15A and makes the following changes—

(i) an administering authority is no longer able to shorten the period which is to be treated as the member’s total period of membership; and

(ii) where a female member is reinstated in the LGPS and the period credited to her is calculated in accordance with regulation K15A, the period of membership resulting from the incoming restitution payment must be apportioned between pre and post 6th April 1988 membership as it would have been had the member remained in the LGPS throughout the mis-sold pension period.

Regulation 3(7) amends the provisions of Schedule K2 to the principal Regulations which deal with the calculation of the restitution payment. The changes reflect current practice.

Regulation 4 makes two minor drafting amendments in connection with provisions relating to the internal dispute resolution procedure. Regulation 4(a)(ii) of the Local Government Pension Scheme (Internal Dispute Resolution Procedure) Regulations 1997 (which is superseded by these Regulations) is revoked.

Regulation 5 makes amendments to paragraph 10 of Schedule M2 to the principal Regulations which was added by the Local Government Pension Scheme (Transfers from the National Health Service Pension Scheme for England and Wales) Regulations 1997 (S.I. 1997/598) and applies to certain members (“the eligible members”) who were previously members of the National Health Service Pension Scheme in England and Wales (“the NHS Scheme”). Apart from minor drafting amendments the changes are—

(i) the alteration of the date in paragraph 10 from 1st October 1994 to 1st August 1991;

(ii) to provide that a person who would be an eligible member but for the fact that a final transfer payment into the LGPS had been paid may elect that paragraph 10 should apply to him;

(iii) to include regulation D2(2) of the principal Regulations (adjustments to the standard retirement pension and retirement grant) in those provisions mentioned in paragraph 10 which do not apply to eligible members;

(iv) to provide that where a transfer value is accepted in relation to an eligible member, certain special provisions apply in connection with the calculation of benefits under the principal Regulations; and

(v) to provide that periods of membership in the NHS Scheme may count as periods of membership under the principal Regulations for the purpose of determining pensionable remuneration.

Regulation 6 allows certain persons who would be placed in a worse position by amendments made in these Regulations to elect for the amendments not to apply in their case.