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The Local Government Pension Scheme (Amendment) (No. 2) Regulations 2007

S.I. 2007/1488 · Made 17 May 2007

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

PENSIONS, ENGLAND AND WALES

Made 17th May 2007

Laid before Parliament 24th May 2007

Coming into force 21st June 2007

These Regulations are made in exercise of the powers conferred by sections 7 and 12 of the Superannuation Act 1972 f1.

In accordance with section 7(5) of that Act, the Secretary of State has consulted (a) such associations of local authorities as appeared to her to be concerned; (b) the local authorities with whom consultation appeared to her to be desirable; and (c) such representatives of other persons likely to be affected by the Regulations as appeared to her to be appropriate.

The Secretary of State makes the following Regulations:

Annotations to the whole text

Footnotes

f1

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

Contents

  1. 1Citation, commencement and application
  2. 2Amendments to the Local Government Pension Scheme Regulations 1997
  3. 3Members’ contributions
  4. 4Limits on total amount of benefits
  5. 5Calculations
  6. 6Revenue Limits
  7. 7Retirement after the normal retirement date
  8. 8Amounts of ill-health pension and grant
  9. 9Re-employed pensioners
  10. 10Death Grant
  11. 11Commutation: small pensions
  12. 12Commutation: exceptional ill-health
  13. 13Power of employing authority to increase total membership
  14. 14Elections to pay AVCs
  15. 15Death benefits
  16. 16The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007
  17. Signature
  18. Explanatory note

1Citation, commencement and application

(1)

These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No.2) Regulations 2007.

(2)

These Regulations apply in relation to England and Walesf1.

(3)

These Regulations shall come into force on 21st June 2007 but—

(a)

the amendments made by regulations 3, 4(2), 5 to 10 and 15 shall have effect from 6th April 2006,

(b)

the amendment made by regulation 13 shall have effect from 1st April 2007,

(c)

the amendments made by regulations 4(1) and 11, 12 and 14 shall have effect from 6th April 2007, and

(d)

the amendments made by regulation 16 shall have effect from 1st April 2008.

2Amendments to the Local Government Pension Scheme Regulations 1997

The Local Government Pension Scheme Regulations 1997f1 shall be amended in accordance with regulations 3 to 15 of these Regulations.

3Members’ contributions

In regulation 12—

(a)

in paragraph (1), omit “(but see regulation 15)”; and

(b)

in paragraph (7) for “Regulations 16 to 18 affect” substitute “Regulations 17 and 18 affect”.

4Limits on total amount of benefits

(1)

In regulation 19A(1)f1, at the beginning insert “Except as provided in regulation 50(1),”.

(2)

In regulation 19A(3), after “member’s benefits” insert “for the purposes of this or any other regulation”.

5Calculations

In regulation 20(3A)f1, at the end add “but the entitlement to the benefit shall not arise until the date on which the member’s appropriate administering authority receives the information it requires to calculate the increase”.

6Revenue Limits

Omit regulation 24.

7Retirement after the normal retirement date

In regulation 25Af1—

(a)

in paragraph (1), omit “with the consent of his employing authority”; and

(b)

after paragraph (2) add —

“(3)

A member is not entitled to count any period of service on or after the day before his 75th birthday as a period of membership and is not an active member after that day.”.

8Amounts of ill-health pension and grant

In regulation 28(3), omit “40 years or” and “whichever is the shorter”.

9Re-employed pensioners

In regulation 29f1—

(a)

omit the word “and” after “enhanced membership period” and omit sub-paragraph (b); and

(b)

add the following paragraph—

“(2)

Where a member to whom benefits are paid in accordance with regulation 35(1A) continues to accrue membership after the date on which payment of such benefits takes effect (“the payment date”), his membership prior to the payment date shall only be taken into account after the payment date for the purpose of making the calculations referred to in paragraph (1).”.

10Death Grant

In regulation 38(1)f1, after “If a member dies” insert “before his 75th birthday”.

11Commutation: small pensions

In regulation 49f1—

(a)

for paragraph (1) substitute the following paragraph—

“(1)

A lump sum which is a trivial commutation lump sum within the meaning of section 166 of the Finance Act 2004f2 or a trivial commutation lump sum death benefit within the meaning of section 168 of that Act may be paid in accordance with the rules relating to the payment of such benefits under that Act.”;

(b)

omit paragraphs (2) to (6);

(c)

in paragraph (7), for “and, where the payment is made to a member, for any short-term or long-term pensions which may become payable on his death” substitute “or any other benefit payable under the Scheme in respect of the member”; and

(d)

omit paragraph (8).

12Commutation: exceptional ill-health

In regulation 50(1), for “by which the annual rate of the retirement pension exceeds his guaranteed minimum” substitute “of his annual rate of retirement pension, notwithstanding that such lump sum may exceed his lifetime allowance”.

13Power of employing authority to increase total membership

In regulation 52(2)(a)f1, for “6 243/365 years” substitute “ten years”.

14Elections to pay AVCs

(1)

In regulation 60—

(a)

after paragraph (2), insert the following paragraphs—

“(2A)

An election may be made in respect of each employment in respect of which he is a member.

(2B)

The maximum a person may specify under paragraph (2) in respect of each employment for which he makes such an election is 50 per cent of the remuneration of that employment or an amount equal to 50 per cent of the remuneration of that employment.”; and

(b)

in paragraph (3), for “It” substitute “The election”.

(2)

In regulation 61(1), after the words “usual pay day” add “and must be paid from his pay”.

15Death benefits

In regulation 63(3), at the end add “and must meet the conditions imposed under Part 2 of Schedule 28 to the Finance Act 2004”.

16The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007

The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007f1 shall be amended—

(a)

in regulation 8, by inserting after paragraph (2) the following new paragraph—

“(2A)

But a member may choose instead to treat as his final pay period either of the two preceding years ending with a day that is the anniversary of the last day he was an active member.”; and

(b)

in regulation 10(1), by omitting the words “who is in whole-time employment and”.

Signature

Signed by authority of the Secretary of State

Phil Woolas

Minister of State

Department for Communities and Local Government

17th May 2007

Explanatory note

(This note is not part of the Order)

Regulations 2 to 15 make amendments to the Local Government Pension Scheme constituted by the Local Government Pension Scheme Regulations 1997, as amended, (“the principal Regulations”). Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect: these amendments do have such effect.

The amendments made by regulations 3 and 4 are minor drafting amendments.

The amendments made by regulations 5 to 12 and 15 are to ensure that the principal Regulations comply with the requirements of the Finance Act 2004 and other legislation regulating registered pension schemes.

The amendment made by regulation 13 increases the maximum period of augmentation of a member’s membership of the Scheme from 6 2/3 years to ten years.

The amendment made by regulation 14 clarifies provisions in connection with the payment of additional voluntary contributions and provides that the maximum a person may elect to pay is 50 per cent of remuneration in that employment or an amount equal to 50 per cent of that remuneration.

Regulation 16 makes two amendments to the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007.Those Regulations, and regulation 16, come into force on 1st April 2008. The first amendment is to provide for alternative periods as the final pay period, if more favourable, and the second amendment is to remove a requirement for the member to be in whole-time employment.