The Local Government Pension Scheme (Amendment) Regulations 2010

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which apply in relation to England and Wales, amend the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 (“the Benefits Regulations”) (S.I. 2007/1166), and the Local Government Pension Scheme (Administration) Regulations 2008 (“the Administration Regulations”) (S.I. 2008/239).

Regulation 2 introduces the amendments to the Benefits Regulations set out in regulations 3 to 9.

Regulation 3 amends regulation 4 (meaning of “pensionable pay”) by inserting into the list of exclusions to the meaning of “pensionable pay”, the pay uplift paid to former staff of the Learning and Skills Council for England (“LSC”) in recognition of the higher contribution rates paid under the Local Government Pension Scheme (“LGPS”) compared to the principal civil service pension scheme (“PCSPS”).

Regulation 4 amends regulation 5 (benefits) by inserting a reference to regulation 88 (bulk transfers in) of the Administration Regulations, so that former LSC staff are not subject to an initial qualifying period before entitlement to benefits under the LGPS.

Regulation 5 similarly amends regulation 6 (periods of membership) by inserting a reference to regulation 88, so that the bulk transfer in of former LSC staff will enable their membership of the PCSPS to be counted towards their period of membership in the LGPS.

Regulation 6 makes a minor amendment to regulation 16 (retirement benefits) by introducing a reference to new regulation 16A.

Regulation 7 inserts a new regulation 16A into the Benefits Regulations, to enable staff of the LSC, on transfer to the Local Government Pension Scheme, to retain the benefit of the normal retirement age of 60 offered under the PCSPS to which they previously belonged.

Regulation 8 inserts a new regulation 18A into the Benefits Regulations, which modifies regulation 18 (flexible retirement) to enable former staff of the LSC to receive their benefits without their employer’s consent.

Regulation 9 makes a minor amendment to regulation 19 (early leavers: inefficiency and redundancy), to clarify that the date on which the circumstances listed in regulation 19(1) apply to a member, includes 31st March 2010.

Regulation 10 introduces the amendments to the Administration Regulations set out in regulations 11 to 13.

Regulation 11 introduces a new Part 10 comprising two new regulations 88 and 89:

Regulation 88 provides for the bulk transfer in of the pension rights of former LSC staff, accrued under the PCSPS.

Regulation 89 provides that references to normal retirement age in relation to former staff of the LSC are references to 60 instead of 65. There is an exception relating to regulation 84(4), where normal retirement age is still 65.

Regulation 12 amends the definition of “normal retirement age” in Schedule 1 to take account of the exception made by new regulation 89.

Regulation 13 amends Schedule 4 by the insertion of a new Part 3. Paragraph 2 of the new Part modifies regulation 30 (appropriate funds) in order to identify the appropriate fund for active, deferred and pensioner members on the abolition of local probation boards. The effect of paragraph 3 of the new Part is to apply regulation 86 (changes of fund) to the former administering authorities for the abolished boards, so that appropriate payments will be made to the new administering authorities in respect of the liabilities for deferred and pensioner members of the abolished boards.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.