Explanatory note

(This Note does not form part of the Regulations)

These Regulations make provision for matters connected with the privatisation of the water industry under the Water Act 1989 (c. 15).

Employees of the successor companies of the former water authorities will not be pensionable employees under the Local Government Superannuation Regulations 1986 (S.I. 1986/24) (“the principal Regulations”), and employees of bodies covered by admission agreements with the Severn-Trent Water Authority will cease to be treated as pensionable employees.

Regulation 2 transfers the two superannuation funds hitherto administered by the Severn-Trent Water Authority to the National Rivers Authority (“the NRA”), with necessary incidental and consequential provisions as to liabilities, agreements and other matters. No employees will contribute to these funds, and the Schedule modifies the application of Part P of the principal Regulations (Superannuation funds and payments by authorities) to reflect this.

Regulation 3 provides for the continuance, as functions of the NRA, of superannuation functions which were, or would have become, exercisable by a water authority or an admitted body by virtue of employment relationships.

Regulations 5 and 9(b) amend the principal Regulations to require the NRA to establish and maintain a superannuation fund for its own employees, and regulation 14 makes transitional provision for determining the amount of employer’s contributions in the first four years.

Regulations 7 and 13 amend the principal Regulations to provide for the transfer of the pension rights of water authority employees who are transferred to successor companies, and for consequential fund apportionment.

Regulations 4, 6, 8, 9(a) and (c), 10, 11 and 12 make consequential amendments to the principal Regulations.

Section 12 of the Superannuation Act 1972 (c. 11) confers express power to make Regulations retrospective in effect. Regulation 2(11) is retrospective to 1st January 1989 in order to remove the Severn-Trent Water Authority’s obligation to obtain a valuation of its funds as at 31st March 1989, which is no longer necessary in consequence of these Regulations. Regulations 9(b) and 12(a) are retrospective to the date on which the NRA came into existence, and regulation 15 permits persons who become employees of the NRA before these Regulations come into force to elect retrospectively to become pensionable employees. The rights of former employees are not affected by the Regulations.