The Local Government Pension Scheme and Management and Investment of Funds (Amendment) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme Regulations 1997 (“the 1997 Regulations”) and the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (“the 1998 Regulations”).

These Regulations apply to England and Wales. The amendment made by regulation 7 has effect from 1st February 2005. The amendments made by regulations 3, 5 and 6 have effect from 1st October 2004 in England and 10th November 2004 in Wales. Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect.

The changes to the 1997 Regulations are as follows—

Regulations 3, 5 and 6 of these Regulations update references made by the Fire and Rescue Services Act 2004.

Regulation 4 updates the definition of “qualified in occupational health medicine” in regulation 97 of the 1997 Regulations.

Regulation 7 inserts “conservation boards” into the list of Scheme employers in Schedule 2 to the 1997 Regulations.

The changes to the 1998 Regulations are as follows—

Regulation 9 of these Regulations inserts a provision, regulation 11A(3A), to be addressed by administering authorities prior to making a decision to increase the limit on their investments in securities transferred by the authority under stock lending arrangements.

Regulation 10 makes a consequential amendment where, following a review, an administering authority has decided to continue to use the increased limit on their investments in securities transferred under stock lending arrangements.

Regulation 11 amends Part I of Schedule 1 to allow administering authorities to increase the limit on their investments in securities transferred by the authority under stock lending arrangements from 25% to 35% of the total of their pension fund investments.

A full regulatory impact assessment has not been produced for this instrument, as it has no impact on the costs of businesses, charities or voluntary bodies; neither does it have significant financial impact on any public bodies.