LOCAL GOVERNMENT PENSION SCHEME (ADMINISTRATION) REGULATIONS 2007
1. With
Ministers’ agreement, I enclose a copy of the draft regulations mentioned in
paragraph 3 of my letter dated 29 January. These draft regulations consist
primarily of the extant provisions of the 1997 Regulations that need to be
carried forward as part of the new look scheme arrangements with effect from 1
April 2008, though they also contain the provisions consulted on in the letter
of 29 January which, although amending the 1997 regulations initially, will
need to be given statutory effect after 31 March 2008. The amendments will
apply to the LGPS fund authorities in
2. Your attention is drawn to Annex B of this letter which sets out the provisions of the new draft regulations and their derivation from the 1997 regulations. Because of the pressure to issue these regulations in time for them to be assessed in conjunction with the draft benefit regulations issued for consultation on 22 December and the new scheme administration amending regulations on 29 January, there are some extant provisions which have yet to be checked and finalised. These omissions are listed at Annex B and mentioned in detail at paragraph 3 below. The missing provisions will be circulated for comment at the earliest possible opportunity.
3. Although the objective has been to transfer across the extant provisions of the 1997 scheme regulations without any change in policy or meaning, there are several areas where changes have been introduced or different approaches proposed, on which consultees views are expressly sought. These are detailed below.
Return of Contributions
It is proposed not to carry forward regulations 87 and 88 of the 1997 regulations and in doing so, to remove the right for a return of contributions for those scheme members who leave the scheme within 3 months of joining. It is hoped that contributions paid to scheme members who fall into this category could be re-paid to the individual employee as an incorrect deduction of salary and views are invited on whether an amended version of regulation 89(5) of the 1997 regulations - omitting any reference to regulation 87 rights - would suffice for this purpose. A transitional provision will also be needed to protect those people with an accrued right to a “frozen” refund under the 1997 regulations.
Abatement
For some time now, administering authorities have enjoyed devolved power to handle abatement cases as they see fit. It would appear that a significant number of authorities have either decided to abandon any local abatement policy, or to only apply it where a significant recovery is likely. On this basis, a decision has been taken to remove this provision from the new scheme administration regulations but on the understanding that it will be re-instated if there is any support for its retention.
Forfeiture
On the same basis, consultees are asked to submit their views on whether or not the new scheme arrangements should include forfeiture provisions (regulations 111 and 112 of the 1997 regulations). The attached draft statutory instrument excludes these provisions but their retention or otherwise will depend on the views expressed by consultees and the final policy decision taken by Ministers. There is, however, no intention to remove the provisions relating to the recovery of a monetary obligation (old regulation 113).
4. It should also be noted that there are other omissions from the attached draft which, unlike the changes described in paragraph 3 above, will definitely be introduced and consulted on as soon as possible. In particular, these include Part V of the 1997 regulations (Special Cases) which will be replicated in full, either in the transitional provisions regulations (see paragraph 7 below) or as part of the new scheme administration regulations. On the same basis, the section on Pensions Sharing on Divorce in part IV of the 1997 regulations and pensions for Councillor Members’ in Schedule 8, will also be carried across to the new administration regulations.
5. On 29 January, CLG consulted on draft
regulations amending the 1997 regulations to include new provisions on the
publication of annual pension fund reports; governance and local administration
strategy documents. These provisions have also been replicated in the attached
draft regulations to give them statutory force after
Transitional Provisions
6. Details of the content of the proposed transitional provisions were included in the CLG’s letter to LGPS pension managers and the Stakeholder and Parallel Stakeholder Liaison groups dated 2 February. A copy of the letter is available in the “What’s New” section of our web site at www.xoq83.dial.pipex.com
Next Steps
7. The new look
scheme is programmed to be fully operational from
Contacts
8. For enquiries on the content of this letter, please e-mail me (Robert.Holloway@communities.gsi.gov.uk) or telephone 020 7944 5998 in the first instance. For enquiries on the consultation draft regulations attached, please e-mail Margaret Dunleavy at Margaret.Dunleavy @communities.gsi.gov.uk or telephone 020 7944 6012.
Yours sincerely,
Bob Holloway
Annex A
ADDRESSEES
The Chief
Executive of:
County Councils (
District Councils (
Metropolitan Borough Councils (
Unitary Councils (
County and County Borough Councils
in
Tameside Metropolitan Borough
Council
Wirral Metropolitan Borough Council
City of Bradford Metropolitan
District Council
Environment Agency
Police Authorities in
Fire
and Rescue Authorities in
National Probation Service for
Town Clerk,
City of London Corporation
Clerk,
Clerk,
The Secretaries
of:
Local Government Association
LGPC
Employers' Organisation for Local
Government (LGE)
PPMA
SOLACE
ALACE
CIPFA
New Towns Pension Fund
ALAMA
UCEA
NALC
SLCC
Society of
Society
of District Council Treasurers
Society
of Welsh Treasurers
Association
of Metropolitan Treasurers
Society
of
Association of Consulting Actuaries
Trades Union
Congress
UNISON
TGWU
GMB
UCATT
Aspect
Amicus
Association
of Educational Psychologists
Audit
Commission
NILGOSC
Confederation
of British Industry
Business
Services Association
Other
Government Departments:
GAD
DoE (NI)
SPPA
DEFRA
DfES