Explanatory note

These Regulations amend the Local Government Pension Scheme Regulations 2013 (“the 2013 Regulations”) and the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (“the Transitional Regulations”). Both sets of regulations came substantively into effect on 1st April 2014 and certain provisions listed in regulation 1 take effect from that date. Section 3(3)(b) of the Public Service Pensions Act 2013 (“the 2013 Act”) provides that scheme regulations may make retrospective provision.

Regulations 3 and 4 make amendments to the 2013 Regulations to align the categories of person eligible for membership more closely with the regime contained in section 25 of the 2013 Act. Regulations 8(b), 12, 18, 19, 20(b) and 25 make consequential amendments.

Regulations 5 and 6 make minor clarifications to provisions in the 2013 Regulations relating to contributions.

Regulation 7 permits employers to adopt a higher reference figure for the calculation of assumed pensionable pay where it would otherwise be unfairly low and identifies how irregularly- received income from fees for acting as a returning officer are to be included in calculation of assumed pensionable pay.

Regulations 8(a), 10 and 11 make minor clarifications to provisions in the 2013 Regulations relating to the calculation of pensions.

Regulation 9 provides for pension commencement lump sums taken by members from AVC savings to be included within an overall limit applicable to such sums.

Regulation 13 makes provision for employers to receive credit for any surplus assets in a fund upon ceasing to be a Scheme employer.

Regulations 15, 16, 17 and 20(a) make provision for the Scheme to comply with its membership obligations of the Public Sector Transfer Club.

Regulation 20(c) amends the definition of “partner” and regulation 20(f) provides for statutory sick pay to come within the definition of “statutory pay”.

Regulation 21(b) clarifies that an admission agreement may be backdated and removes the requirement for details of admission agreements to be sent to the Secretary of State.

Regulation 22 amends provisions in Schedule 3 (pension funds) to clarify which is the appropriate administering authority for employees of entities wholly owned by bodies listed in paragraphs 1 to 5 of Part 1 of Schedule 2.

Regulation 24 amends the Transitional Regulations in their application to the “Earlier Regulations” as defined in the Transitional Regulations, to remove the requirement for persons aged between age 55 and 60 to obtain their employer’s consent to draw benefits early.

Regulation 26 ensures that members of other public service pension schemes who are entitled to transitional protection under those schemes and who are continuing to accrue final salary benefits can obtain final salary benefits within the Local Government Pension Scheme if they transfer those benefits in and can benefit from the statutory underpin.

Regulation 27 introduces a 12 month time limit (which is capable of extension by the employer) if a former member of the Earlier Schemes takes up active membership of the Scheme and wishes to aggregate the benefits.

Regulation 28 clarifies that the term “contributions” includes additional contributions when used in regulation 14 of the Transitional Regulations.

Regulation 29 has the effect that the administration of AVC benefits is carried out under the provisions in regulation 17 of the 2013 Regulations irrespective of when the AVC arrangement was established.

Regulation 30 makes an amendment to the provisions in Schedule 2 to the Transitional Regulations (“the rule of 85”) consequential to the amendment made by regulation 19, which removes the requirement for employer consent for members aged between 55 and 60 to draw benefits.

Regulation 31 gives administering authorities 12 months from the date of these Regulations to publish a list of existing admission agreements.

An impact assessment has not been produced for this instrument as no impact is anticipated on the private or voluntary sectors.