The Local Government (Early Termination of Employment) (Discretionary Compensation)(England and Wales) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations consolidate, with drafting and other, minor, amendments, Parts II to IV of the Local Government (Discretionary Payments) Regulations 1996 (“the 1996 Regulations”) and such provisions of Parts I and VII of those Regulations as are necessary for the purposes of Parts II to IV. They make provision for discretionary payments to persons whose local government employment is terminated by reason of redundancy or in the interests of the service (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 1996 Regulations now relate to injury allowances and gratuities as respects non-pensionable service.

Part I (regulations 1 to 4) includes provisions relating to the interpretation and application of the Regulations. Many of the expressions used in the Regulations are defined in Schedule 1. Schedule 2 is relevant to the definition (in Schedule 1) of “appropriate percentage”. Some expressions, which are also used in the Local Government Pension Scheme Regulations 1997 (referred to in these Regulations as “the Pension Regulations”), have the meanings given by Schedule 1 to those Regulations.

Regulation 4(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). The Regulations apply to former harbour authority employees and to those employed in certain educational establishments (but not teachers) with the modifications specified in Schedule 3 (regulation 4(3)).

Part II (regulation 5) allows for the payment of compensation to persons who are entitled to a redundancy payment under the Employment Rights Act 1996.

Part III (regulation 6) allows for a lump sum compensation payment, whether or not the person is eligible for compensation under Part II.

Part IV (regulations 7 to 11) 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 eligible under this Part, a person must be employed by a body listed in regulation 4(6) of, or Schedule 2 to, the Pension Regulations.

Parts V to VII (regulations 12 to 19) provide for the adjustment of compensation where the person entitled to it receives other payments or enters or leaves a new employment. A change from the 1996 Regulations is that no specific method of abatement is provided by the regulations and it is for the employing authority to decide how to make the necessary adjustment.

Part VIII (regulations 20 to 25) 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, for the review of the policy and the publication of amendments to the policy (regulation 26);

(b) the supply of other information relevant to payments and adjustments under the Regulations (regulations 27 and 28);

(c) the making of payments, the repayment of overpayments, and the payment of interest on late payments (regulations 29 and 30); and

(d) for identifying the authority which is to make the payments (regulation 31).

Part X contains miscellaneous and supplementary provisions. Regulation 33 prevents the cost of payments under the Regulations being charged to a pension fund. Regulation 33 introduces the transitional provisions and savings in Schedule 4. Regulation 34 introduces the consequential amendments specified in Schedule 5. Regulation 35 revokes provisions of the 1996 Regulations which are superseded by these Regulations and provisions which have amended the 1996 Regulations. The Local Government (Compensation for Redundancy) Regulations 1994 are also revoked.