The Local Government Pension Scheme(Pension Sharing on Divorce) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision in connection with the pension rights of certain members of the Local Government Pension Scheme (“the Scheme”) and amend the Local Government Pension Scheme Regulations 1997 which regulate the Scheme. They also amend the Local Government Pension Scheme (Investment and Management of Funds) Regulations 1998.

The provisions and amendments are in relation to the sharing of pensions following divorce or nullity of a marriage, introduced by the Welfare Reform and Pensions Act 1999.

Regulation 1 provides for citation and commencement.

Regulation 2 makes provision in connection with the effect of pension sharing and the creation of a pension debit on the rights of pensioners and deferred members of the Scheme whose benefits are regulated by the Local Government Pension Scheme Regulations 1995 and other regulations relating to the Scheme made under section 7 of the Superannuation Act 1972 which continue in effect.

Regulation 3 and the Schedule to these regulations amend the Local Government Pension Scheme Regulations 1997. Paragraphs 1 to 10 and paragraph 12 make amendments to the wording of the existing provisions. Paragraph 11 adds a new Part VI to the regulations to make provision for pension credit members and paragraph 13 inserts a new Schedule of definitions for pension sharing as Schedule 1A.

Part VI provides that a person entitled to a pension credit may become a pension credit member of the Scheme. A pension credit member is entitled to receive pension benefits at age 65. The benefits take the form of a pension and, where the person whose rights are subject to a debit has not been paid a lump sum, a lump sum. There is no provision for earlier payment of the benefits except that they may be commuted for a lump sum in circumstances where life expectancy is less than one year. A pension of less than a stated annual amount may also be commuted for a lump sum.

There are no surviving spouse’s or children’s pensions payable following the death of a pension credit member. There is provision for payment of a death grant.

A pension credit member may not aggregate his pension credit rights with any other rights he may have under the Scheme nor may he ask for the Scheme to accept a transfer value for pension rights from other schemes or arrangements.

Regulation 4 amends the Local Government Pension Scheme (Investment and Management of Funds) Regulations 1998 to provide that certain costs and charges incurred in connection with pension sharing (as prescribed in regulations made under the Welfare Reform and Pensions Act 1999) are not borne by the Scheme.

These Regulations do not impose any costs on business.