Regulation J2 Outwards transfers

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg.J2(4) added by Local Government Superannuation 1993 reg.25(f)
reg.J2(2)(b) rev in pt by Local Government Superannuation 1993 reg.25(a)
reg.J2(2)(b)(i)(ii)(iii) amended by Local Government Superannuation 1993 reg.25(b)(c)
reg.J2(2)(b)(iv) added by Local Government Superannuation 1993 reg.25(d)
reg.J2(2)(f) revoked by Local Government Superannuation 1993 reg.25(e)
reg. and 9(3)(a)-(e) replaced (by reg.E9(3)(a)-(d)) by Local Government Superannuation 1997 reg.16
reg.J2(8)(a) substituted by Local Government Superannuation 1997 reg.24

(1)

Subject to paragraphs (5) and (6), a transfer value shall be paid in relation to a person who has ceased to be employed in local government employment and has become employed in approved non-local government employment if the conditions in paragraph (3) are satisfied.

(2)

This regulation applies even if the cessation of the local government employment, or the commencement of the approved non-local government employment, or both the cessation and the commencement, occurred before 21st December 1987.

(3)

The conditions are that—

(a)

he has made a written request to his fund authority for the transfer value to be paid; and

(b)

subject to paragraph (4), the request was made not later than 6 months after 21st December 1987 or, if later, 6 months after the date on which he became employed in his approved non-local government employment; and

(c)

the scheme managers of his approved non-local government scheme have agreed to accept the transfer value; and

(d)

in the case of a person who ceased to be employed in his local government employment before 31st March 1972, his local government employer has consented to the payment of the transfer value; and

(e)

in the case of a person who received a return of contributions in relation to his local government employment (other than a person falling within paragraph (6)), he has within 3 months of making his request under sub-paragraph (a) paid his fund authority for the credit of their superannuation fund—

(i)

a sum equal to the contributions returned to him (together with any interest which he was paid),

(ii)

a sum equal to any deduction made on account of tax under section 378(2) of the Income Tax Act 1952^f1 or section 209(2) of the Income and Corporation Taxes Act 1970^f2; and

(iii)

compound interest on both those sums calculated in accordance with regulation J7 for the period beginning with the date on which he received the return of contributions and ending on the date of his request under sub-paragraph (a) (but no interest is to be paid if that period is less than 6 months).

(4)

The local government employer may in any particular case extend the period mentioned in paragraph (3)(b).

(5)

A transfer value shall not be paid in relation to a person—

(a)

who has received any benefit (other than a return of contributions) under the Acts of 1937 to 1953 and the Regulations made thereunder, the former Regulations, any local Act scheme, the 1974 Regulations or these Regulations in respect of his local government employment, or

(b)

who ceased to be employed in local government employment on or after 6th April 1978 having reached state pensionable age, unless his accrued pension for the purposes of Schedule 16 relates solely to service after he reached state pensionable age, or

(c)

who ceased to be employed in local government employment on or after 6th April 1978 and who has become employed in approved non-local government employment (other than employment with a Community institution) which is not contracted-out employment for the purposes of the Pensions Act, unless—

(i)

the person is a married woman or widow who, by virtue of an election made or treated as made for the purposes of Regulations under section 3 of the Pensions Act, is either liable to pay primary Class 1 contributions or Class 2 contributions (within the meaning of the Social Security Act 1975^f3 at a reduced rate prescribed by such Regulations or is exempt from liability to pay Class 2 contributions; or

(ii)

the person’s reckonable service and qualifying service amounts in aggregate to less than 5 years; or

(d)

in respect of whom a transfer value has been paid by the fund authority or a predecessor of that authority since he ceased to be employed in his local government employment; or

(e)

who, on becoming employed in approved non-local government employment, became entitled, without any condition as to receipt of a transfer value, to reckon service in his local government employment in relation to his approved non-local government employment; or

(f)

if a direction has been made in relation to his service in his local government employment under regulation C12(5) or M1 or any corresponding provision of earlier legislation or a local Act scheme.

(6)

In relation to a person who ceased to be employed in local government employment on or after 6th April 1978 and has received a return of contributions in relation to that employment, a transfer value may only be paid in relation to service in respect of which he is entitled to preserved benefits.

Annotations

Footnotes

f1: 1952 c. 10
f2: 1970 c. 10
f3: 1975 c. 14