The Local Government Pension Scheme (Amendment) Regulations 2005

Explanatory Note

(This note is not part of the Order)

These Regulations amend the Local Government Pension Scheme Regulations 1997.

The principal effect of the Regulations is to restore to the Local Government Pension Scheme the so-called “85-year rule”. Where retirement benefits are payable to an early leaver before his normal retirement date, an actuarial reduction is normally applied to those benefits. The “85-year rule” allows an early leaver from the Scheme whose age and years of membership equal 85 or more to receive his retirement benefits without that actuarial reduction. The “85-year rule” was removed from the Scheme by amendments made by the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2004 (“the 2004 Regulations”). Its restoration is achieved by regulations 2 to 5 of these Regulations, which have effect from 1st April 2005. Under section 12 of the Superannuation Act 1972, regulations may be made which have effect from a date before their coming into force.

Other minor technical amendments (relating to counting of periods of membership) made by the 2004 Regulations are unaffected.

Regulation 7 enables an administering authority to obtain a revised rates and adjustment certificate where it appears to the authority that the effect of these Regulations is likely to result in liabilities greater than those set out in the existing certificate. Where a revised certificate is obtained, it has effect only from 1st April 2006.

Provision is made in regulation 8 to ensure that any person entitled to benefits under the Scheme is not placed in any worse position by the retrospective effect of regulations 2 to 5 of the Regulations.

A full regulatory impact assessment of the effect that this instrument will have on the costs of employing authorities in the Local Government Pension Scheme is available on the internet at www.odpm.gov.uk. Copies can be obtained by post from the Office of the Deputy Prime Minister, 2/E7, Ashdown House, London SW1E 6DE, or by phoning 0207 944 6015.