Regulation 2

by substituting for the words “, 3 or 4”, in paragraph (1), the words “or 3”;

by inserting after the words “this paragraph”, in paragraph (1), the words “and in paragraph (1A)”; and

by inserting after paragraph (1) the following:

“(1A)

In the case of a pension specified in paragraph 6 of the Schedule to these Regulations, any increase of pension payable by virtue of these Regulations (including any amount by which the basic rate of the pension has been increased before 30th September 1983 shall be paid by the authority by whom the pension is payable (“the pension authority”), but—

(a)

where the functions in connection with which the latest services in respect of which the pension is payable were rendered—

(i)

are no longer exercisable by any statutory authority, or

(ii)

are superannuation functions or compensation functions,

the pension authority shall be reimbursed 82% of the cost of any such increase by the other water authorities in accordance with the Table below, and

(b)

where sub-paragraph (a) does not apply and the pension authority are not the last employing authority, the pension authority shall be reimbursed the cost of any such increase by the last employing authority.

TABLE

Water authority	Percentage of total Cost
Anglian	11
Northumbrian	4
North West	15
Southern	6
South West	4
Thames	19
Wessex	4
Welsh	9
Yorkshire	10

(1B)

In paragraph (1A)—

• “superannuation functions” means the functions of an administering authority under the Local Government Superannuation Regulations 1974 to 1983^f1,and

• “compensation functions” means functions relating to—

  1. (a)

     the payment of benefit or compensation in respect of early retirement or for loss of employment, or

  2. (b)

     redundancy payments within the meaning of the Employment Protection (Consolidation) Act 1978^f2,

which were exercisable by the National Water Council, or which are exercisable by the pension authority by virtue of regulations under paragraph 8 of Schedule 2 to the Water Act 1983^f3.”