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Explanatory note

Original text. Later amendments are not shown.

1. Following a reorganisation of the water industry under the Water Act 1973 (1973 c.37) the National Water Council became an administering authority within the local government scheme embodied in the Local Government Superannuation Regulations 1974 to 1982 (the principal regulations), for all water authority and National Water Council staff. Prior to the inception of that scheme on 1st April 1974 some employees had participated in schemes run by former water industry bodies and it was agreed that they should in various respects be treated differently from persons who had been members of the former local government scheme which the present scheme replaced.

2. These regulations modify the principal regulations in relation to the affected water employees.

3. In particular—

  1. (1)

    Regulation 3 deems certain employees transferred from the Conservators of the River Thames and the Lee Conservancy Catchment Board to the Thames Water Authority, and from the Thanet Water Board to the Southern Water Authority, not to have become pensionable employees in their new employment. Thus they remain subject to the terms and conditions of their previous superannuation schemes in their entirety (regulation 7(1)(a), (2), (3) and (5)). On moving to pensionable employment within the local government scheme, the pension rights accrued under those terms and conditions are converted into service reckonable in relation to their new employment by the payment of a transfer value to the new fund authority (regulation 3(2)).

  2. (2)

    Regulation 4 concerns, in the first place, former employees of the Water Supply Industry Training Board who were transferred to the National Water Council or a water authority. They may elect to be treated as having been subject to the principal regulations as modified by Parts I and III of the Schedule to these regulations. Part I embodies certain features of the Industrial Training Boards' scheme, and Part III makes special provision for a subsequent transfer within the local government scheme. If they do not so elect, the principal regulations will have applied to them without modification. Regulation 4 also applies to former employees of the Metropolitan Water Board, as follows:

    1. (a)

      For employees who retired or died after 31st March 1972 (and were not transferred) there is a right to elect—

      1. (i)

        to adopt the principal regulations without modification, or

      2. (ii)

        to adopt the principal regulations as modified by Part II (which embodies certain features of the former Metropolitan Water Board scheme) and Part III of the Schedule.

    2. (b)

      If they do neither, they will continue to be entitled to the benefits that were provided for in the former Metropolitan Water Board scheme.

    3. (b)

      Employees who were transferred to the National Water Council or a water authority and then retired before 6th April 1978 may elect—

      1. (i)

        to adopt the principal regulations as modified by Parts II and III of the Schedule, or

      2. (ii)

        to retain the terms and conditions of the former Metropolitan Water Board scheme.

    4. (d)

      If they do neither, they will continue to be entitled to benefits in accordance with the principal regulations without modification.

    5. (c)

      Employees who retired after 5th April 1978 or are still serving may elect only as in (b) (i) above. If they do not do so, they will continue to be subject to the principal regulations without modification.

  3. (3)

    All elections have retrospective effect, and may be made by widows or personal representatives in appropriate cases.

  4. (3)

    Regulation 5 deems employees transferred from the British Waterworks Association to the National Water Council, from the Port of London Authority to the Thames Water Authority, from the Mid Kent Water Company and the Chatham Water Company to the Southern Water Authority, and from the Trowbridge, Melksham and District Water Board to the Wessex Water Authority, to have become subject to the principal regulations as modified by Part IV of the Schedule (which embodies certain features of their previous pension schemes).

  5. (4)

    Regulation 6 applies to certain employees falling within regulations 3 and 4 who were appointed to their new posts before 1st April 1974 who would have been compulsorily subject to the principal regulations by virtue of becoming contributory employees on 31st December 1973 under regulation 7 of the Local Government Superannuation (Miscellaneous Provisions) (No. 2) Regulations 1973. Such person are deemed not to have become contributory employees for the period ending 31st March 1974 in order to enable them to remain subject to the terms and conditions of their previous superannuation schemes.

  6. (5)

    Regulation 7 concerns employees who are entitled to retain the terms and conditions of their former schemes in their entirety. It deems the provisions of those schemes to have continued in force with necessary adaptations after 31st March 1974.

  7. (6)

    Regulation 8 requires the actuary of the fund maintained by the National Water Council, when certifying under regulation B8 of the principal regulations adjustments in respect of particular employing authorities to the rate of employer's contribution for any period after 31st March 1986, to take account of the special benefits provided under these regulations and any amounts paid into the fund in respect of surrendered policies of insurance.

  8. (7)

    Regulations 9 and 10. Section 12 of the Superannuation Act 1972 confers express power to make regulations retrospective in effect. These regulations are to a large extent retrospective. Where rights in relation to ex-employees could be adversely affected, provision is made for opting out and for the determination of related questions.

4. The terms and conditions of the relevant superannuation schemes applicable to the transferred employees immediately before 1st April 1974 are set out in the following documents (referred to in regulation 2(1) and in paragraphs 1(c), 19(b) and 45 of the Schedule).

The Industrial Training Boards' Pension Fund (constituted by definitive trust deed dated 20th July 1967) as in force on 31st March 1974.

The Metropolitan Water Board Superannuation and Provident Fund established by a scheme approved by the Board on 23rd April 1909 and incorporating all amendments thereto, as in force on 31st March 1974.

The Rules of the Port of London Authority Pension Fund established by Section 5 of the Port of London Act 1928, as in force on 31st March 1974.

The Rules of the Port of London Authority (Upper Division Staff) Widows' and Orphans' Fund constituted by a trust deed dated 7th November 1929, as in force on 31st March 1974.

These documents are available for inspection at the Superannuation Department of the National Water Council, St Peter's House, Hartshead, Sheffield S1 1EO, and extracts therefrom may be issued to individuals on request.