The Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) 2003

Explanatory Note

(This note is not part of the Regulations.)

These Regulations revoke and replace Parts II to IV of the Local Government (Discretionary Payments) Regulations (Northern Ireland) 2001 (“the 2001 Regulations”). They make provision for discretionary payments to persons employed by employers listed in Schedule 3 or by a Scheme employer (as defined in the Schedule 1 to these Regulations) whose employment terminated by reason of redundancy or in the interests of the efficient exercise of the employer’s functions (but not on ill-health grounds), or where a joint appointment comes to an end because one of the holders leaves. As a result of these Regulations, the 2001 Regulations now relate to injury allowances as respects non-pensionable service.

Part I (regulations 1 to 3) and Schedules 1 and 2 include provisions relating to the interpretation and application of the Regulations. Expressions which are also used in the Local Government Pension Scheme Regulations (Northern Ireland) 2002 (referred to in these Regulations as “the Pension Regulations”), have the meanings given by Schedule 1 to those Regulations.

Regulation 3(1) and (2) provides for the application of the Regulations to persons if they are eligible to be members of the Local Government Pension Scheme (whether or not they are, in fact, members).

Part II (regulation 4) allows for the payment of compensation to persons who are entitled to a redundancy payment under the Employment Rights (Northern Ireland) Order 1996.

Part III (regulation 5) allows for a lump sum compensation payment, whether or not the person is eligible for compensation under Part II.

Part IV (regulations 6 to 10) provides an alternative form of compensation to that in Part III for persons aged 50 or more. It provides for the award of credited periods and the payment of lump sum and annual compensation. To be entitled to compensation under this Part, a person must be employed by an employer listed in Schedule 3. The Boards of Governors of certain schools have been added to the list of employers in that Schedule.

Parts V to VII (regulations 11 to 18) provide for the adjustment of compensation awarded under Part IV where the person entitled to it receives other payments or enters or leaves a new employment. A change from the 2001 Regulations is that no specific method of abatement is provided by the Regulations and it is for the employer to decide how to make the necessary adjustment.

Part VIII (regulations 19 to 24) relates to surrenders of annual compensation and payments to surviving spouses and children on the death of a person entitled to compensation under Part IV.

Part IX makes provision for –

(a) the preparation of policy statements relevant to the exercise of discretionary powers and abatement under the Regulations, and the publication of those statements within four months of the commencement date, for the review of policy and the publication of amendments to it within one month of any amendment decision (regulation 25);

(b) the supply of other information relevant to payments and adjustments under the Regulations (regulations 26 and 27);

(c) the making of payments, the repayment of overpayments, and the payment of interest on late payments (regulations 28 and 29); and

(d) identifying the authority which is to make the payments (regulation 30).

Part X contains miscellaneous and supplementary provisions.

Regulation 31 prevents the cost of payments under the Regulations being charged to the pension fund. Regulation 32 introduces the transitional provisions and savings. Regulation 33 introduces the consequential amendments. Regulation 34 revokes certain provisions of the 2001 Regulations, subject to savings.