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United Kingdom Statutory Instruments


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2004 No. 573

PENSIONS, ENGLAND AND WALES

The Local Government Pension Scheme (Amendment) Regulations 2004

  Made 4th March 2004 
  Laid before Parliament 10th March 2004 
  Coming into force
  Regulations 1 to 26, 33 to 43 1st April 2004 
  Regulations 27 to 32 1st June 2004 

The Secretary of State, in exercise of the powers conferred on him by sections 7 and 12 of the Superannuation Act 1972[1] and of all other powers enabling him in that behalf, after consultation with such associations of local authorities as appeared to him to be concerned, the local authorities with whom consultation appeared to him to be desirable and such representatives of other persons likely to be affected by the Regulations as appeared to him to be appropriate, hereby makes the following Regulations:

Citation, commencement, interpretation and extent
     1.  - (1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) Regulations 2004.

    (2) Regulations 1 to 26 and 33 to 43 shall come into force on 1st April 2004 and regulations 27 to 32 shall come into force on 1st June 2004.

    (3) In these Regulations, "the principal Regulations" means the Local Government Pension Scheme Regulations 1997[
2].

    (4) These Regulations extend to England and Wales[3].

Amendment of the principal Regulations
     2. The principal Regulations shall be amended in accordance with regulations 3 to 41 of these Regulations.

General eligibility for membership: employees of Scheme employers etc.
    
3. In regulation 4 - 

Further restrictions on eligibility
     4. For paragraph 6(11) substitute - 

Periods of membership: "total membership"
     5. In regulation 9(2), after " regulations 10, 11" insert ", 29".

Meaning of "pay"
    
6. In regulation 13, omit paragraphs (5), (6) and (7).

General qualification for benefits
    
7. In regulation 19 - 

Calculations
    
8. In regulation 20(6), omit sub-paragraph (a).

Final Pay
    
9. In regulation 21, omit paragraph (8).

Ill-health
    
10. In regulation 27 - 

Amounts of ill-health pension and grant
    
11. In regulation 28 - 

Re-employed pensioners
    
12.  - (1) For regulation 29, substitute - 

    (2) Omit regulation 30.

Re-employed and rejoining deferred members
    
13. In regulation 32 - 

Concurrent employments
    
14. In regulation 32A, in paragraph (1), for "two years'" substitute "three months'".

Guaranteed minimum pensions etc.
    
15. In regulation 36, in paragraph (9)(c), for "two years" substitute "three months".

Surviving spouse's long-term pension
    
16. In regulation 41, in paragraphs (4) and (5), for "two years" substitute "three months".

Dependants of re-employed pensioners
    
17. Omit regulation 48.

Power of employing authority to increase total membership
    
18.  - (1) In regulation 52 - 

    (2) Omit regulation 53.

Elections as to use of accumulated value of AVCs
    
19. In regulation 66(7), omit sub-paragraph (a).

Funding strategy statement
    
20. After regulation 76, insert - 

Actuarial valuations and certificates
     21. After regulation 77(5), insert - 

Employer's further payments
    
22. In regulation 80 - 

Interest
    
23. In regulation 82 - 

Discontinuance of additional contributions
    
24. In regulation 83(9)(b), delete "and has not made an election under regulation 29".

Rights to return of contributions
    
25. In regulation 87 - 

Exclusion of rights to return of contributions
    
26. In regulation 88(3), omit sub-paragraph (a).

Notification of decisions under regulation 97
    
27. In regulation 98(5), for sub-paragraph (c) substitute - 

Appropriate administering authorities
    
28. For the heading and text of regulation 99, substitute - 

Right to apply to person to decide the disagreement
    
29. In regulation 100 - 

Notice of decisions under regulation 100
    
30. In regulation 101 - 

Reference of disagreement to the appropriate administering authority
    
31. In regulation 102 - 

Notice of decisions under regulation 102
    
32. In regulation 103 - 

Annual benefit statements
    
33. After regulation 106 insert - 

Liability for combined benefits
    
34. Omit regulation 126.

Members employed by magistrates' courts committees
    
35. In regulation 133, in paragraph (10), omit sub-paragraph (c).

Conversion of periods credited under Discretionary Payments Regulations etc. into membership
    
36. Omit regulation 143.

Scheme employers
    
37. In Schedule 2 - 

Revenue restrictions
     38. In Schedule 4 - 

Appropriate funds
    
39. In Part II to Schedule 5 - 


(b) add at the end of the Notes - 

Certain City of London employees and former contributors
    
40. In Schedule 6 - 

Councillor members
    
41. In Schedule 8 - 

Transitional provisions
    
42.  - (1) Nothing in regulations 6 and 9 will affect the amount of pay or final pay determined in accordance with an agreement made under regulation 13(5) of the principal Regulations prior to 1st April 2004.

    (2) This paragraph applies to a member who is an active member on 1st April 2004 and who on that date - 

    (3) Subject to paragraph (4), nothing in these Regulations shall prevent a member to whom paragraph (2) applies from opting to receive a return of contributions (with interest calculated to the date he ceased to be employed) in accordance with regulation 87 of the principal Regulations.

    (4) A member to whom paragraph (2) applies is not entitled to receive a return of contributions if - 

and a member is not entitled to interest if he would not have been entitled under regulation 87(2) of the principal Regulations.

    (5) This paragraph applies to a member, who was a re-employed pensioner member on 1st April 2004, where the member - 

    (6) Nothing in these Regulations shall prevent a member to whom paragraph (5) applies from electing for a single pension in accordance with regulations 29 and 30 of the principal Regulations.

    (7) Nothing in these Regulations shall affect the calculation of benefits under regulation 48 of the principal Regulations in respect of a member to whom paragraph (5) applies.

    (8) In relation to deferred members who have become active members again prior to 1st April 2004 (but have not yet made an election under Regulation 32 of the principal Regulations), regulation 32(8A) of the principal Regulations (as inserted by regulation 13 of these Regulations) shall have effect as if "the date that he became an active member again" reads "1st April 2004".

    (9) Nothing in these Regulations shall affect the rights of any person who made an application to an appointed person or to the Secretary of State under regulations 100 or 102 of the principal Regulations before 1st June 2004.

    (10) Nothing in these Regulations shall prevent an authority from being obliged to make payments to another authority in accordance with regulation 126 of the principal Regulations (liability for combined benefits), or, in the case of an overdue payment, to pay interest under regulation 82 of the principal Regulations.

    (11) So far as it is necessary to give effect to the entitlements in this regulation and to make provision for any matters incidental to them, the principal Regulations shall be treated as if they had continued in effect without the amendments made by these Regulations.

Right to opt out
    
43.  - (1) Where - 

then the principal Regulations shall have effect in relation to him as if those amendments had never been made.

    (2) For the purposes of paragraph (1), a relevant beneficiary is a person to whom any benefit is or may become payable being a benefit payable to or in respect of a person who - 

before the date on which these Regulations come into force.



Signed by authority of the Secretary of State


Phil Hope
Parliamentary Under Secretary of State, Office of the Deputy Prime Minister

4th March 2004



EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations make various amendments to the Local Government Pension Scheme Regulations 1997 ("principal Regulations") to have effect from 1st April 2004, with the exception of regulations 27 to 32 (changes to the dispute resolution procedures), which shall have effect from 1st June 2004. The main changes are as follows - 

Regulation 42 makes transitional provisions and regulation 43 allows certain persons who would be placed in a worse position by amendments made in these Regulations to elect for the amendments not to apply in their case. The remaining regulations make amendments consequential to the above.

The guidance published by CIPFA, the Chartered Institute of Public Finance and Accountancy, referred to in regulation 20, can be purchased from CIPFA, 3 Robert Street, London WC2N 6RL, tel. 020 7543 5602. The publication costs £50 to members of the public, £25 to local authorities and £12.50 to an administering authority.

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.


Notes:

[1] 1972 c. 11; section 12 was amended by section 10 of the Pensions (Miscellaneous Provisions) Act 1990 (c. 7).back

[2] S.I. 1997/1612; relevant amending instruments are S.I. 1998/1238; 1999/1212; 2000/1164, 1410, 3025; 2001/770, 1481, 3401; 2002/819 and 2003/1022.back

[3] The Secretary of State's functions under section 7 of the Superannuation Act 1972 in so far as they were exercisable in relation to Scotland were devolved to Scottish Ministers by section 63 of the Scotland Act 1998 (1998 c. 46) and article 2 of, and Schedule 1 to, the Scotland Act 1998 (Transfer of Functions to Scottish Ministers etc) Order 1999 (S.I. 1999/1750).back

[4] Regulation 5A was inserted by the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2003, S.I. 2003/3004.back

[5] Urban development corporations are established under section 135 of the Local Government, Planning and Land Act 1980 (c. 65).back

[6] The National Health Service Pension Scheme for England and Wales is set up under section 10 of the Superannuation Act 1972. The current regulations are the National Health Service Pension Scheme Regulations 1995, S.I. 1995/300, as amended.back

[7] 1999 c. 8.back

[8] S.I. 1998/1831, regulation 9A was inserted by S.I. 1999/3259 and amended by S.I. 2002/1852.back

[9] 1996 c. 56. Section 482 was substituted by section 65 of the Education Act 2002 (c. 32).back

[10] See section 105 of the Local Government Act 2003 (c. 26).back



ISBN 0 11 048818 0


  © Crown copyright 2004

Prepared 10 March 2004


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