The Local Government Pension Scheme (Amendment) (No. 2) Regulations 2008

Amendment of the Local Government Pension Scheme (Administration) Regulations 2008

4.  In regulation 38 (special circumstances where revised actuarial valuations and certificates must be obtained) —

(a) in paragraph (2), for “Where” substitute “Subject to paragraph (3A), where”;

(b) after paragraph (3) insert —

“(3A) Paragraph (2) does not apply where, by virtue of a transfer scheme, the liabilities of the Housing Corporation(1) relating to pensions of current or former employees have been transferred to the Homes and Communities Agency(2) or the Regulator of Social Housing(3).

(3B) But the Homes and Communities Agency or the Regulator of Social Housing, as the case may be, shall make arrangements with the relevant administering authority as to the contributions necessary to secure the funding of those liabilities.

(3C) Those arrangements shall include provision for the past service deficit to be paid in 15 annual instalments, the first of which shall be paid no later than 31st March 2009.

(3D) In paragraph (3C) “the past service deficit” means the deficit calculated as at 31st March 2007 from the actuarial valuation obtained under regulation 77 of the 1997 Regulations of the fund of which the Housing Corporation is a community admission body, revalorised by the fund actuary as at 30th November 2008, in respect of—

(a) employees transferred by virtue of a transfer scheme; and

(b) deferred and pensioner members to whom that scheme applies.

(3E) An admission agreement with a relevant administering authority shall provide that if it appears, on an actuarial valuation of the assets and liabilities of the relevant pension fund (whether under regulation 36 or otherwise), that an increased individual adjustment is required, the Homes and Communities Agency or the Regulator of Social Housing, as the case may be, will notify the Secretary of State forthwith.

(3F) An employee of the Housing Corporation whose contract of employment is transferred to the Homes and Communities Agency or the Regulator of Social Housing by virtue of a transfer scheme shall be treated as having—

(a) applied in writing for the purposes of paragraph (6)(a) of regulation 13 (joining the Scheme); and

(b) given notice for the purposes of paragraph (1) of regulation 16 (re-employed and rejoining deferred members).

(3G) In this regulation—

(a) “individual adjustment” has the meaning given by regulation 36(7);

(b) “relevant administering authority” means an administering authority which enters into an admission agreement with the Homes and Communities Agency or the Regulator of Social Housing following a transfer mentioned in paragraph (3A); and

(c) “transfer scheme” means a scheme made under section 65 of the Housing and Regeneration Act 2008(4).”

(1)

As to which see section 74 of, and Schedule 6 to, the Housing Associations Act 1985 (c. 69): the Housing Corporation is prospectively dissolved by section 64 of the Housing and Regeneration Act 2008.

(2)

The Homes and Communities Agency was established by section 1 of the Housing and Regeneration Act 2008.

(3)

The Regulator of Social Housing was established by section 81 of the Housing and Regeneration Act 2008.

(4)

2008 c. 17.