The Local Authorities (Allowances for Members of County and County Borough Councils) (Pensions) (Wales) Regulations 2003

Explanatory Note

(This note is not part of the Regulations)

Section 18(3A) of the Local Government and Housing Act 1989, as inserted by section 99(7) of the Local Government Act 2000, provides the power for the Secretary of State to make Regulations which may make provision for or in connection with enabling county and county borough councils to determine which of their members are entitled to pensions and to treat basic allowance or special responsibility allowance as amounts in respect of which pensions are payable. This power is now vested in the National Assembly for Wales by virtue of the National Assembly for Wales (Transfer of Functions) Order 1999.

At Regulation 3 these Regulations enable county and county borough councils in Wales to determine which members (who are councillors) are entitled to pensions in accordance with the Local Government Pension Scheme Regulations 1997 (as amended). Where authorities use their discretion to admit members to pension schemes they must make provision for basic allowances and special responsibility allowances to be treated as pensionable and must have regard to any recommendations made by the Welsh Independent Remuneration Panel in accordance with regulation 5 as to which members may be entitled to such benefits.

Regulation 4 enables the National Assembly for Wales to establish a temporary independent remuneration panel, known as the Welsh Independent Remuneration Panel, for a period of six months (regulation 4(2)). The panel will consist of no less than three members (regulation 4(3)), one of who should be appointed as chairperson by the National Assembly for Wales. The panel will not comprise members who are members of the National Assembly for Wales, the House of Commons, the House of Lords, the European Parliament, a county or county borough council, a town or community council (regulation 4(4)(a)). Neither should the panel have any members who are disqualified from being or becoming a member of a county or county borough council (regulation 4(4)(b)) other than an officer in the employment of a local authority. The National Assembly for Wales may pay allowances and expenses in respect of the Wales Independent Remuneration Panel and provide appropriate administrative support (regulations 4(5) and (6)).

Regulation 5 sets out the functions of the Welsh Independent Remuneration Panel. The panel will produce a report that recommends which members of county and county borough councils are entitled to pensions under the Local Government Pension Scheme Regulations 1997. In performing this function the panel may seek information or advice from any body or any person (regulation 5(2)). The National Assembly for Wales will send a copy of the panel’s report to each county and county borough council (regulation 5(4))

Under regulation 6 the National Assembly for Wales will publish the details of the panel’s report in newspapers in Wales. Each county and county borough council will make the report available to the public for inspection (regulation 6(3)(a)) and make a copy available at such reasonable fees as the authority may determine (regulation 6(3)(b)).