Regulation 5 Refund of return of member’s contributions

Part C of the principal Regulations is amended by inserting after regulation C21 the following—

“Restoration of right to count service in transitional cases where there has been a return of contributions

C21A

(1)

This regulation applies where—

(a)

a member who ceased to be employed in a local government employment (“the previous employment”) on or after 1st April 1974 and before 1st January 1980 subsequently becomes employed in another local government employment;

(b)

on the cessation of the previous employment his total period of membership (or, if he was subject to a local Act scheme, the service which would have been taken into account in determining whether or not he was entitled to benefits) amounted to less than 5 years; and

(c)

a return of contributions was made in relation to the previous employment by the administering authority of the pension fund to which he was a contributor (“the previous fund authority”).

(2)

Where this regulation applies then, notwithstanding paragraph 4 of Schedule B6, the member shall be entitled to count as a period of membership any period in respect of which the return of contributions referred to in paragraph (1)(c) has been received if the member makes payment as required by paragraph (3).

(3)

The member must pay by not later than the relevant date to the previous fund authority for the credit of their pension fund—

(a)

a sum equal to the contributions returned to him net of any tax deducted under regulation C21(7) (but together with any increase under regulation K17 and any interest he was paid); and

(b)

compound interest on that sum calculated in accordance with regulation K21(8) for the period beginning with the date on which he received the return of contributions and ending on the date of the payment of that sum.

(4)

The relevant date is the expiry of 6 months after his return to local government employment.

(5)

The previous fund authority may in any particular case extend the period mentioned in paragraph (4).”.