# The Superannuation (Local Government and Overseas Employment) Interchange Rules 1969, Article 11: Re-entry into local government employment


(1) Subject to the provisions of this rule, where a person to whom part II of these rules applies ceases to hold overseas employment and within the prescribed period thereafter re-enters local government employment, then—
(a) he shall be entitled to be treated as if he had done so within 12 months after leaving local government employment, and
(b) he shall be entitled to reckon his period of overseas employment for the purpose of determining whether he is entitled to a benefit under the Act of 1937, but for no other purpose.
(2) This rule shall not apply to a person who has received a return of contributions from the first fund authority on or after ceasing to hold his last overseas employment unless he pays to the second fund authority—
(a) an amount equal to the returned contributions (other than voluntary contributions) and
(b) any interest which he may be required to pay under paragraph (5) of this rule.
(3) Where there is a break of 12 months or more between the date on which a person leaves and the date on which he re-enters local government employment, he shall not be entitled—
(i) to enjoy rights under sections 6 and 31 of the Act of 1937 as a designated employee in respect of service rendered without a disqualifying break of service;
(ii) to be treated for the purposes of Part I of Schedule 2 to the Act of 1937 as a person who has not had a disqualifying break of service;
(iii) to exercise an option under regulation 17(1)(c) of the benefits regulations;
(iv) to enjoy the rights which he previously enjoyed by virtue of having exercised an option under regulation 17(1) of the benefits regulations; or
(v) to make in his new local government employment any such payments as are mentioned in rule 9(1) or (2) in respect of any amount which was outstanding at the time when he ceased to be subject to the Act of 1937, other than any such payments as a are mentioned in rule 9(1) which under these rules he has continued to make but has not completed in his overseas employment.
(4) The amount of any transfer value which may become payable under the transfer value regulations in respect of a person to whom this rule applies shall be calculated by reference to his age on the date on which he re-enters local government employment:
Provided that—
(a) where such date is earlier than the commencement of these rules, the transfer value shall be calculated by reference to his age at the commencement of these rules; and
(b) where interest is required to be paid under paragraph (5) of this rule, the transfer value shall be reduced by an amount equivalent to the interest paid.
(5) Where a person re-enters or re-entered local government employment more than 12 months after ceasing to hold his last overseas employment and the period of 12 months is extended pursuant to rule 3(3)(c), the first fund authority may require him to pay compound interest on any sum paid to him by way of return of contributions (other than voluntary contributions) on or after leaving his overseas employment at a rate of 3% per annum with half-yearly rests for a period beginning either with the date 12 months after the date on which he left overseas employment or, where this is later, the date on which he received such sum, and ending with the date on which he notified his desire under rule 3(3)(c) for this rule to apply to him.
(6) The interest payable under this rule shall not exceed a sum equal to one-half of the difference between the transfer value payable under paragraph (4) of this rule (or where the superannuation fund concerned is the same in the case of both employments, the transfer value which would have been payable had he transferred to the employment of an authority whose contributory employees participate in a different fund) and the transfer value which would be payable if calculated by reference to the person's age on ceasing to hold his last overseas employment.

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Source: https://www.legislation.gov.uk/uksi/1969/975/article/11 (the official version)
Page: https://openlegislation.uk/superannuation-local-government-and-overseas-employment-interchange-rules-1969/article-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.