The Local Government Pension Scheme (Miscellaneous Amendments) Regulations 2014

The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007^f1 are amended in accordance with regulation 3.

In regulation 39(1)(c) (commutation: small pensions) for “regulation 6 (payment after relevant accretion)” substitute “regulations 6 (payment after relevant accretion), 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes)”.

The Local Government Pension Scheme (Administration) Regulations 2008 are amended in accordance with regulations 5 to 7.

In regulation 9 (eligibility in certain cases of persons who are not employees)—

For regulation 38 substitute—

“Special circumstances where revised actuarial valuations and certificates must be obtained

38.

(1)

If a person—

(a)

ceases to be a Scheme employer,

(b)

ceases to be a body specified in regulation 8(1),

(c)

ceases to be an admission body participating in the Scheme, or

(d)

was an employing authority, but no longer has an active member contributing to a fund,

that person becomes “an exiting employer” for the purposes of this regulation and is liable to pay an exit payment.

(2)

When a person becomes an exiting employer, the appropriate administering authority must obtain—

(a)

an actuarial valuation at the exit date of the liabilities of the fund in respect of benefits due to or in respect of the exiting employer’s current and former employees; and

(b)

a revised rates and adjustment certificate showing the exit payment due from the exiting employer in respect of those benefits.

(3)

Where for any reason it is not possible to obtain all or part of the exit payment due from the exiting employer, or from an insurer, or any person providing an indemnity, bond or guarantee on behalf of the exiting employer, the administering authority must obtain a further revision of any rates and adjustment certificate for the fund showing—

(a)

in the case where a body is a transferee admission body within the meaning of regulation 6(2)(a) or (b), the revised contribution due from the body which is the related employer in relation to that admission body; and

(b)

in any other case, the revised contributions due from each employing authority which contributes to the fund,

with a view to providing that assets equivalent to the exit payment due from the exiting employer are provided to the fund over such period of time as the administering authority considers reasonable.

(4)

Where in the opinion of an administering authority there are circumstances which make it likely that a Scheme employer or admission body will become an exiting employer, the administering authority may obtain from an actuary a certificate specifying the percentage or amount by which, in the actuary’s opinion—

(a)

the contribution at the common rate should be adjusted; or

(b)

any prior individual adjustment should be increased or reduced,

with a view to providing that assets equivalent to the exit payment that will be due from the employing authority are provided to the fund by the exit date or, where the employing authority is unable to meet that liability by the exit date, over such period of time thereafter as the administering authority considers reasonable.

(5)

When an exiting employer has paid an exit payment into a fund, no further payments are due from that authority in respect of any liabilities relating to the benefits due to or in respect of any current or former employees of that employer as a result of these Regulations or the Benefits Regulations.

(6)

Paragraph (7) applies where—

(a)

an administering authority agrees with an employing authority as mentioned in regulation 40(4) or (5); or

(b)

it appears likely to an administering authority that the amount of the liabilities arising or likely to arise in respect of members in employment with an employing authority exceeds the amount specified, or likely as a result of the assumptions stated for that authority, in a rates and adjustments certificate by virtue of regulation 36(8).

(7)

The administering authority must obtain a revision of the rates and adjustments certificate concerned, showing the resulting changes as respects that employing authority.

(8)

For the purposes of this regulation—

• “exiting employer” means an employer of any of the descriptions specified in paragraph (1);

• “exit payment” means the assets required to be paid over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);

• “exit date” means the date on which the employer becomes an exiting employer; and

• “related employer” means any Scheme employer which is a party to the admission agreement.”.

The Local Government Pension Scheme Regulations 2013^f1 are amended in accordance with regulations 9 and 10.

In Schedule 1 (interpretation), after the entry for “gainful employment” insert—

• ““Housing Ombudsman” means an individual appointed as housing ombudsman by the Secretary of State under Schedule 2 to the Housing Act 1996^f1; and

• “Housing Ombudsman Service” means a scheme for the investigation of complaints approved by the Secretary of State under that Act.”.

In the table in Part 4 of Schedule 2 (scheme employers)—

(This note is not part of the Regulations)