STATUTORY INSTRUMENTS
2006 No.
pensions,
The Local Government (Early Termination of Employment)
(Discretionary Compensation) (
Made - - - - ***
Laid before Parliament ***
Coming into force - - ***
These Regulations are made in exercise of the powers conferred by section 24 of the Superannuation Act 1972([a]).
The First Secretary of State makes the following Regulations:
Citation and commencement
1.—(1) These Regulations may be cited as the Local Government (Early
Termination of Employment) (Discretionary Compensation) (
(2) They shall come into force on
General Interpretation
2.—(1) In these Regulations—
"the 1996 Act" means the Employment Rights Act 1996([b]);
"employing authority", in relation to a person, means—
(a) a body listed in Schedule 2 (Scheme employers) to the Pension Regulations([c]) by whom he is employed immediately before the termination date; or
(b) a body listed in regulation 4(6) (resolution bodies) of those Regulations—
(i) by whom he is employed immediately before the termination date; and
(ii) which has passed a relevant resolution, within the meaning of regulation 4(5) of those Regulations, which covers him;
“employment” includes office but does not include a period as—
(a)
the Mayor of
(b) a member of the London Assembly, or
(c) a councillor member;
“Pension Regulations” means the Local Government Pension Scheme Regulations 1997;
“Scheme member” means a person who is a member of the Local Government Pension Scheme constituted by the Pension Regulations;
“termination date” means the date on the final day of a person’s employment terminated in one of the circumstances set out in regulation 4(1) (a).
(2) Expressions not defined in paragraph (1) but used in these Regulations and in the Pension Regulations have the same meaning as in those Regulations.
Application to the Isles of Scilly
3. These Regulations apply to the Isles of Scilly as if they were a
district in the
General and special application of the Regulations
4.—(1) These Regulations apply in relation to a person—
(a) whose employment is terminated—
(i) by reason of redundancy,
(ii) in the interests of the efficient exercise of the employing authority’s functions, or
(iii) in the case of a joint appointment, because the other holder of the appointment has left it;
(b) who, on the termination date, is—
(i) employed by an employing authority, and
(ii) eligible to be a Scheme member (whether or not he is such a member) or would be so eligible but for the giving of a notification under regulation 8 of the Pension Regulations;
(c) whose termination date is on or after
and in the following provisions of these Regulations, “person” shall be construed accordingly, unless the context indicates that it has a different meaning.
(2) Where an additional requirement is specified in any provision of regulations 5 and 6 in relation to a person, that provision does not apply in relation to him unless he satisfies that additional requirement.
Power to increase statutory redundancy payments
5.—(1) Compensation may be paid in accordance with this regulation to a person who is entitled to a redundancy payment under the 1996 Act on the termination of his employment.
(2) The amount which may be paid must not be more than the difference between—
(a) the redundancy payment to which he is entitled under Part XI of the 1996 Act; and
(b) the payment to which he would have been entitled if there had been no limit on the amount of a week's pay used in the calculation of his redundancy payment.
(3) The power to pay compensation is exercisable—
(a) where the employment was at a voluntary, foundation or foundation special school (within the meaning of section 20 of the School Standards and Framework Act 1998([d])) by the local education authority;
(b) in any other case, by the body by whom he is employed immediately before the termination date.
Discretionary compensation for redundancy
6.—(1) This regulation applies where a person—
(a) ceases to hold his employment with an employing authority, and
(b) in respect of that cessation may not count an additional period of membership under regulation 52([e]) (power of employing authority to increase total membership of members) of the Pension Regulations.
(2) Where this regulation applies, the employing authority may, not later than six months after the termination date, decide to pay compensation under this regulation; and in that event shall, as soon as reasonably practicable after the decision, notify the person in whose favour it has been made, giving details of the amount of the compensation.
(3) The amount of compensation must not exceed 104 weeks’ pay.
(4) Chapter II (a week’s pay) of Part XIV (Interpretation) of the 1996 Act shall apply for the purpose of calculating a person’s week’s pay as it applies for the purpose of calculating redundancy payments but—
(a) with the substitution for references to the calculation date of references to the termination date; and
(b) without the limit on a week's pay imposed by section 227 of that Act.
(5) If the person in whose favour a determination under paragraph (2) has been made receives a redundancy payment under Part XI of the 1996 Act or compensation under regulation 5 of these Regulations, the equivalent amount shall be deducted from the compensation otherwise payable to him under this regulation.
(6) Compensation under this regulation shall be paid by the employing authority as soon as practicable after the determination under paragraph (2).
(7) The compensation shall be payable in the form of a lump sum.
Policy Statements
7.—(1) Each employing authority must formulate, publish and keep under review the policy that they apply in the exercise of their discretionary powers under regulations 5 and 6.
(2) If the authority decide to change their policy, they must publish a statement of the amended policy within one month of the date of their decision.
(3) The authority must not give effect to any policy change until one month has passed since the date of publication of the statement under paragraph (2).
(4) In formulating and reviewing their policy the authority must—
(a) have regard to the extent to which the exercise of their discretionary powers (in accordance with the policy), unless properly limited, could lead to a serious loss of confidence in the public service; and
(b) be satisfied that the policy is workable, affordable and reasonable having regard to the foreseeable costs.
Payments and repayments
8.—(1) Any compensation payable under these Regulations is payable to or in trust for the person entitled to receive it.
(2) Where any compensation is paid in error to any person (including any overpayment)—
(a) The employing authority must, as soon as possible after the discovery of the error—
(i) inform the person concerned, by notice in writing, giving details of the relevant calculation,
(ii) where there has been an underpayment, make a further payment,
(iii) where there has been an overpayment, specify a reasonable period for repayment;
(b) a person who has received a notice under sub-paragraph (a) must repay any overpayment within the specified period; and
(c) the employing authority may take such steps as they consider appropriate to recover from the person to whom it was paid any overpayment which has not been repaid within the specified period.
(3) The employing authority shall take into account the person's circumstances (so far as known or reasonably ascertainable) before taking steps under paragraph (2) (c).
Finance
9. The cost of any payment to be made under these Regulations must not be met out of any pension fund maintained under the Pension Regulations.
Transitional provisions and savings
10. Schedule 1 shall have effect for the purpose of making transitional provisions and savings.
Consequential amendments
11. Schedule 2 shall have effect for the purpose of making amendments which are consequential on the making of these Regulations.
Revocation of Regulations
12.—(1) The Local Government (Early Termination of Employment) (Discretionary
Compensation) (
(2) Nothing in these Regulations affects the general operation of sections 16 and 17 of the Interpretation Act 1978([g]) (as applied by section 23 of that Act).
Signatory text
Name
Address Parliamentary Under Secretary of State
Date Department
SCHEDULE 1 Regulation 10
TRANSITIONAL PROVISIONS AND SAVINGS
1. The revocation of the Local
Government (Early Termination of Employment) (Discretionary Compensation) (
(a) any person whose termination date is before
(b) the rights of any person who is entitled to benefits under those regulations in consequence of the death of such a person
and in relation to such persons those regulations shall continue to apply.
2. Where—
(a) any provision continues to have effect in relation to any person by virtue of these Regulations, and
(b) immediately before
nothing in these Regulations affects the operation of that saving, transitional provision or modification.
3. The revocation by these Regulations of any provision previously revoked subject to savings does not affect the continued operation of those savings, in so far as they remain capable of having effect.
SCHEDULE 2 Regulation 11
CONSEQUENTIAL AMENDMENTS
EXPLANATORY NOTE
(This note is not part of the Regulations)