Regulation 6 Insertion of Schedule 4

After Schedule 3 (pension funds) insert—

“Schedule 4

Elected Members

Regulation 117

1

Where this Schedule applies, these Regulations have effect with modifications set out in paragraphs 2 to 16.

2

Regulation 2 (introductory) has effect as if after paragraph (1C)^f1 there were inserted—

“(1D)

For the purposes of these Regulations, an elected member who is deemed to be in local government service by virtue of paragraph (1B)(b) is to be treated as an employee of the body deemed to be their Scheme employer under regulation 3(2), rather than as an office-holder, and any reference to “employee”, “employer”, “employment” or “scheme employment” is to be construed accordingly, and related expressions are to be construed accordingly.”.

3

Regulation 3 (active membership) has effect as if—

(a)

paragraphs (3) and (4) were omitted;

(b)

in paragraph (6)—

(i)

in sub-paragraph (a) “but in any event” were omitted;

(ii)

sub-paragraph (b) were omitted.

4

Regulation 16 (additional pension contributions) has effect as if paragraphs (2)(e) and (4)(d) were omitted, except for their applications to QAPAs^f2.

5

Regulation 17 (additional voluntary contributions) has effect as if—

(a)

in paragraph (1), after “contribute to” there were inserted “salary sacrifice”;

(b)

after paragraph (1) there were inserted—

“(1A)

Where an elected member enters into a salary sacrifice SCAVC in respect of an employment, the total amount paid by the Scheme employer in any period by way of contributions to those arrangements must not exceed the amount by which that member’s pensionable pay is reduced in that period under the salary sacrifice agreement.

(1B)

For the purposes of paragraph (1A) “period” means such interval as used by the Scheme employer for the calculation and payment of contributions to the salary sacrifice SCAVC arrangement.”.

6

Regulation 18 (rights to return of contributions) has effect as if paragraph (2) were omitted.

7

Regulation 20 (meaning of pensionable pay) has effect as if for that regulation there were substituted—

“Meaning of pensionable pay for elected members

20

(1)

An elected member’s pensionable pay in any year is the total of all basic allowance, special responsibility allowance, relevant allowance and salary paid by the scheme employer to that elected member in any applicable remuneration scheme established under—

(a)

the Local Authorities (Members’ Allowances) (England) Regulations 2003;

(b)

the Greater London Authority Act 1999;

(c)

a Combined Authority establishment order;

(d)

Combined County Authority establishment regulations;

(e)

the remuneration arrangements applicable to members of the Common Council of the City of London.

(2)

All references to “pensionable pay” in these Regulations in respect of an elected member are to be construed in accordance with paragraph (1).

(3)

In this regulation, “relevant allowance” means an allowance payable under a Combined Authority establishment order or Combined County Authority establishment regulations other than an allowance for travel and subsistence.

(4)

Where an elected member participates in a salary-sacrifice SCAVC arrangement within the meaning of regulation 17(1), the amounts referred to in paragraph (1) are to be calculated by reference to the remuneration that would have been payable but for that arrangement.”.

8

Regulation 21(2) (assumed pensionable pay) has effect as if—

(a)

for sub-paragraph (a) there were substituted—

“(a)

who is an elected member and is unable, due to sickness or injury, to carry out the full responsibilities of their office and, as a result, is in receipt of reduced or no allowances; or”;

(b)

sub-paragraph (b) were omitted.

9

Regulation 22 (pension accounts) has effect as if after paragraph (9) there were inserted—

“(10)

Where in the case of a deferred member who has been an elected member, benefits are aggregated under paragraph (7) or (8)^f3—

(a)

elected membership may be aggregated only with former elected membership; and

(b)

membership which is not elected membership may be aggregated only with former membership which is not elected membership.

(11)

For the purposes of paragraph (10)—

(a)

“a deferred member who has been an elected member” includes a deferred member who has been a councillor member within the meaning of the Local Government Pension Scheme Regulations 1997^f4;

(b)

“elected membership” includes any period of councillor membership within the meaning of the Local Government Pension Scheme Regulations 1997”.

(12)

Where a deferred member’s former elected membership includes a period of former councillor membership accrued under the Local Government Pension Scheme Regulations 1997, and that former councillor membership falls to be aggregated with elected membership in the Scheme —

(a)

that aggregation is to be treated for all purposes as an interfund adjustment under regulation 10(6) of the 2014 Regulations^f5, and must be carried out in accordance with that regulation, and

(b)

where both periods of membership are held in the same pension fund, the administering authority must make such intrafund adjustments as are necessary to secure an equivalent outcome to that which would have applied under regulation 10(6) of the 2014 Regulations had the membership been held in different pension funds.”.

10

Regulation 23 (active member’s pension accounts) has effect as if paragraph (8) were omitted.

11

Regulation 27 (flexible retirement pension accounts) has effect as if it were omitted.

12

Regulation 30 (retirement benefits) has effect as if—

(a)

paragraphs (6), (7) and (8) were omitted, and

(b)

in paragraph (9), for “(8)” there were substituted “(5)”.

13

Regulation 31 (award of additional pension) has effect as if it were omitted.

14

Regulation 36 (role of the IRMP) has effect as if paragraph (1)(c) were omitted.

15

Regulation 39 (calculation of ill-health pension amounts) has effect as if for paragraph (9)(a) there were substituted—

“(a)

in calculating assumed pensionable pay in accordance with regulation 21(4) (assumed pensionable pay), no account is to be taken of any reduction in the pensionable pay the member received if an IRMP has certified that the member has reduced responsibilities wholly or partly as a result of the condition that caused or contributed to the member’s ill-health retirement; and”.

16

Regulation 67 (employer’s contributions) has effect as if for paragraph (4)(b) there were substituted—

“(b)

the assumed pay in respect of elected members who are on leave due to sickness or injury and are receiving reduced pensionable pay or no pensionable pay,”.”.