Regulation 11 Limit on annual compensation where entitlement to occupational pension

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 11(1)(c)(ii) words substituted by Local Government Pension Scheme (Transitional Provisions) 1997 Sch. 3 para. 44(a)
reg. 11(2)(a) words substituted by Local Government Pension Scheme (Transitional Provisions) 1997 Sch. 3 para. 44(b)
reg.11(1)(c)(ii)(2)(b) amended by Local Government (Discretionary Payments) 1998 reg.2(b)

(1)

Where—

(a)

immediately before the material date a person is entitled to an occupational pension in respect of any period (whether or not it is in payment);

(b)

the aggregate of that period, his total period of membership and any credited period exceeds 40 years; and

(c)

at any time when the occupational pension is in payment, the aggregate of the annual rate for the time being—

(i)

of that pension;

(ii)

of his retirement pension under regulation D6(2) of the LGPS Regulations; and

(iii)

of the annual compensation payable under regulation 10,

would (apart from this paragraph) exceed the relevant amount specified in paragraph (2),

the basic rate of the annual compensation shall be reduced so that that aggregate does not exceed the relevant amount.

(2)

The relevant amount mentioned in paragraph (1) is—

(a)

if a retirement grant under Part D of the LGPS Regulations is payable, 50 per cent. of the sum of—

(i)

the amount of the eligible person’s pensionable remuneration; and

(ii)

the amount of the official increases by which an official pension at the annual rate of that pensionable remuneration would have been increased, if it had begun and first qualified for such increases on the day after the material date; and

(b)

if no such retirement grant is payable, 66 per cent. of the sum of those amounts.

(3)

For the purposes of paragraph (1)—

(a)

the annual rates at any time of the annual compensation and of any other official pension are their annual rates with official increases;

(b)

the annual rate at any time of an occupational pension which is not such an official pension is its annual rate as increased under any enactment, contract, scheme or other arrangement.

(4)

As respects an occupational pension which is—

(a)

a pension under a personal pension scheme in relation to which the Secretary of State paid contributions under section 1 of the Social Security Act 1986^f1 or section 43 of the Pension Schemes Act 1993^f2; or

(b)

a pension derived from the payment of a transfer value calculated by reference to rights arising with respect to such a pension as is mentioned in paragraph (a),

any reference in paragraph (1) to the period in respect of which a person is entitled to the occupational pension shall be construed as a reference—

(i)

to the period of employment by reference to which the Secretary of State has paid the contributions; and

(ii)

without prejudice to the generality of that expression in other cases, to any period of employment in relation to which a transfer value has been paid into the personal pension scheme.

(5)

In this regulation—

“the basic rate”, in relation to annual compensation, means its basic rate for the purposes of the Pensions (Increase) Act 1971^f3;
“official increases” means any increases under that Act.

Annotations

Footnotes

f1: 1986 c. 50. Section 1 was repealed by the Pension Schemes Act 1993 (c. 48), s.188, Sch. 5.
f2: 1993 c. 48. Section 43 was amended by the Pensions Act 1995 (c. 26), Sch. 5, paragraph 42.
f3: 1971 c. 56; see section 17(1).