STATUTORY INSTRUMENTS

2007 No. xxx

pensions, england and wales

The Local Government Pension Scheme (Administration) Regulations 2007

Made - - - - ***

Laid before Parliament ***

Coming into force - - ***

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 7 and 12 of the Superannuation Act 1972 ([a]) and section 172(1), (2) and (4) of the Pensions Act 1995 ([b]).

In accordance with section 7(5) of that Act the Secretary of State consulted such associations of local authorities as appeared to her to be concerned; the local authorities with whom consultation appeared to her to be desirable; and such representatives of other persons likely to be affected by the Regulations as appeared to her to be appropriate.

PART 1

PRELIMINARY

Citation, commencement and extent [old 1]

1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Administration) Regulations 2007 and shall come into force on [ ].

(2) These Regulations extend to England and Wales.

Interpretation [old 2]

2.—(1) Schedule 1 (interpretation) contains definitions of expressions used in these Regulations which apply for their interpretation unless the context indicates they have a different meaning.

(2) Unless that is so, references to members or membership generally refer to active members or active membership respectively.

(3) The definition of “AVC insurance company” in Schedule 1 must be read with—

(a) section 22 of that Act;

(b) any relevant order under that section; and

Application to Isles of Scilly [old 3]

3.These Regulations apply to the Isles of Scilly as if they were a district in the county of Cornwall and the council of the Isles of Scilly were the council of that district.

PART 2

MEMBERSHIP OF SCHEME

General eligibility for membership: employees of Scheme employers [old 4]

4.—(1) A person may only be an active member if this regulation, regulation 5 or 6 or regulations [corresponding to old Chapter 1 of Part 5] enables him to be one and he is not prevented by regulation 8.

(2) A person may be a member if he is employed by a body which is listed in Schedule 2.

(3) But a person who is employed by a body listed in Part 2 of that Schedule may only be a member if he, or a class of employees to which he belongs, is designated by the body as eligible for membership.

Employees of non-Scheme employers: community admission bodies [old 5]

5.—(1) Subject to the requirements of this regulation and regulation 7, an administering authority may make an admission agreement with any community admission body.

(2) The following are community admission bodies—

(a) a body, other than the governors or managers of a voluntary school, which provides a public service in the United Kingdom otherwise than for the purposes of gain and which either—

(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest (whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise), or

(ii) is approved by the Secretary of State for the purposes of admission to the Scheme;

(b) a body, other than the governors or managers of a voluntary school, to the funds of which a Scheme employer contributes;

(i) local authorities;

(ii) local authorities and officers of local authorities;

(iii) officers of local authorities where it is formed for the purpose of consultation on the common interests of local authorities and the discussion of matters relating to local government; or

(iv) Scheme employers;

(d) the Housing Corporation;

(e) the Commission for the New Towns;

(f) a company for the time being subject to the influence of a local authority (within the meaning of section 69 of the Local Government and Housing Act 1989 (companies subject to local authority influence)([c]); and

(g) a company for the time being subject to the influence of a body listed in Schedule 2 (other than a local authority).

(3) An approval under paragraph (2)(a)(ii) may be subject to such conditions as the Secretary of State thinks fit and he may withdraw an approval at any time if such conditions are not met.

(4) Where, at the date that an admission agreement is made with a body mentioned in paragraph (2)(b), the contributions paid to the body by one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, it must be a term of the admission agreement that the Scheme employer paying contributions (or, if more than one pays contributions, all of them) guarantees the liability of the body to pay all amounts due from it under these Regulations or the Benefit Regulations.

(5) In paragraph (2)(c) and (f) “local authority” includes the Greater London Authority.

(6) For the purpose of determining whether a company is subject to the influence of a body as mentioned in paragraph (2)(g), section 69 of the Local Government and Housing Act 1989 has effect as if references in that section to a local authority were references to the body.

Employees of non-Scheme employers: transferee admission bodies [old 5A]

6.—(1) Subject to the requirements of this regulation and regulation 7, an administering authority may make an admission agreement with any transferee admission body.

(2) A transferee admission body is a body, other than a community admission body, that is providing or will provide—

(a) a service or assets in connection with the exercise of a function of a Scheme employer as a result of—

(i) the transfer of the service or assets by means of a contract or other arrangement;

(ii) a direction made under section 15 of the Local Government Act 1999([d]); or

(iii) directions made under section 497A of the Education Act 1996([e]); or

(b) a public service and which is approved by the Secretary of State for the purposes of admission to the Scheme.

(3) In the case of an admission agreement with a transferee admission body under paragraph (2)(a) the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.

(4) An approval under paragraph (2)(b) may be subject to such conditions as the Secretary of State thinks fit and he may withdraw an approval at any time if such conditions are not met.

(5) An admission agreement with a transferee admission body shall require —

(a) that in the case of a body under—

(i) paragraph (2)(a), the Scheme employer;

(ii) paragraph (2)(b), the transferee admission body, to the satisfaction of the administering authority,

shall carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee body, and

(b) that, where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.

(6) The indemnity or bond must be with—

(a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000([f]) to accept deposits or to effect and carry out contracts of general insurance;

(b) an EEA firm of the kind mentioned in paragraph (5)(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or

(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.

(7) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule [new 3].

(8) This paragraph applies where a transferee admission body undertakes to meet the relevant requirements of this regulation and—

(a) in the case of a body under paragraph (2)(a), the Scheme employer undertakes to meet the relevant requirements of this regulation; or

(b) in the case of a body under paragraph (2)(b), the Secretary of State approves the body for admission to the Scheme and the conditions, if any, to which the approval is subject have been met.

(9) Where paragraph (8) applies—

(a) an administering authority must admit to the Scheme the eligible employees of the transferee admission body specified by the body, and

(b) where it does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.

(10) Only those employees of the transferee admission body who are employed in connection with the provision of a service or assets mentioned in paragraph (2) are eligible to be members of the Scheme.

Admission agreements – further provision [old 5B except (7)]

7.—(1) An admission agreement must terminate if the admission body ceases to be such a body and may make such other provision about its termination as the parties consider appropriate.

(2) When an administering authority makes an admission agreement it must promptly inform the Secretary of State of—

(a) the date the agreement takes effect,

(b) the admission body’s name, and

(c) in the case of an agreement with a transferee admission body under regulation 6(2)(a), the name of the relevant Scheme employer.

(3) An administering authority must notify the Commissioners of the Inland Revenue of the admission of an admission body.

(4) An administering authority and an admission body may make an admission agreement despite the fact that they do not exercise their functions or provide services or assets in areas that overlap or adjoin each other.

(5) Any question which may arise between the parties to an admission agreement relating to the construction of the agreement or the rights and obligations under that agreement shall be referred in writing to the Secretary of State for determination.

(6) These Regulations and the Benefits Regulations apply to employment with an admission body in which the employee is an active member in the same way as if the admission body were a Scheme employer.

Further restrictions on eligibility [old 6 and 5B(7)]

8.—(1) Subject to paragraph (8) and regulation [corresponding to old 130C], if a person’s employment entitles him to belong to another statutory pension scheme, that employment does not entitle him to be a member, unless that other scheme was made under section 7 of the Superannuation Act 1972.

(2) A statutory pension scheme is an occupational pension scheme provided by or under an enactment (including a local Act).

(3) An employee of an admission body may not be a member if he is a member of another occupational pension scheme (within the meaning of section 1 of the Pension Schemes Act 1993)([g])) other than where the accrual of benefits under that occupational pension scheme would not affect the approval of the Scheme as an approved scheme.

(4) A person who is not eligible for membership of a Teachers’ scheme because of the provisions of regulation B4(2) of the Teachers’ Pensions Regulations 1997([h]) (re-employed teachers) is not entitled to be a member.

(5) A person may not become a member after the day before his 75th birthday.

(6) Retained or voluntary membership with a fire and rescue authority (within the meaning given by section 1 of the Fire and Rescue Services Act 2004 ([i])) on terms under which the retained or voluntary member is or may be required to engage in fire-fighting does not entitle the member to be a member of the Scheme.

(7) A person may be a member of the Scheme despite being entitled to be a member of the National Health Service Pension Scheme for England and Wales (“the NHS Scheme”) if—

(a) his entitlement to be a member of the NHS Scheme is by reason of his employment by—

(i) a Care Trust; or

(ii) an NHS Scheme employing authority as a result of a prescribed arrangement under section 31 of the Health Act 1999([j]);

(b) he is specified in, or within a class of employees specified in, an admission agreement made between an administering authority and a Care Trust or NHS Scheme employing authority; and

(c) he was an active member of the scheme immediately before his employment by the Care Trust or by the NHS employing authority.

Joining the Scheme [old 7]

9.—(1) A person who wishes to become an active member must apply in writing to his employer or future employer.

(2) An eligible person who applies before he begins his employment becomes a member when his employment begins, unless he applies to become a member later.

(3) An eligible person who applies after he begins his employment becomes a member on the first day of the first payment period following the application. .

(4) In paragraph (3) and regulation 10(4), a payment period is a period of service to which the employee’s wages or salary payment relate.

(5) An employee is deemed to have applied to become a member, unless he notified his employer in writing that he did not wish to do so—

(a) before his employment began, or

(b) if he only became eligible to be a member later, before the date he became eligible.

(6) But paragraph (5) does not apply to—

(a) employees of admission bodies,

(b) casual employees, or

(7) An application for membership may be withdrawn before membership begins.

(8) A former active member may reapply for membership of the Scheme.

(9) But a person who has given more than one notification under regulation 10 may only reapply if—

(a) his employer or future employer consents, or

(b) he is beginning a new employment with a new employing authority and he reapplies before he has been employed for three months, or

(c) he is a person about whom information may be given under section 172(1) of the Pensions Act 1995 (see regulation [new 72].

Ending of membership [old 8]

10.—(1) A person stops being a member if he stops being eligible for membership.

(2) A person may leave the Scheme if he wishes and he notifies his employer in writing.

(3) A member who gives such a notification stops being a member from the date the notification specifies.

(4) But, if a date earlier than the notification or no date is specified, he stops being a member at the end of the payment period during which the notification is given.

(5) Where notification is given by a person before he has been a member for three months, he must be treated as not having been a member in that period.

(6) A person who is a member and is an employee of a transferee admission body is treated for the purposes of these Regulations and the Benefit Regulations as leaving a local government employment when he ceases to be employed in connection with the provision of the service or assets under regulation 6(2) by virtue of which he became eligible to join the scheme.

PART 3

CONTRIBUTIONS

Contributions during child-related leave [old 17(2), (3), (3A) and 18(2)]

11.—(1) If a person who is a member, or has applied to be a member, goes on maternity, paternity or adoption leave, he must make contributions as respects any part of his period of maternity, paternity or adoption absence for which he is a member and entitled to receive pay (including statutory pay).

(2) Such contributions must be made at the standard contribution rate on that pay.

(3) But that pay does not include any amount by which his actual pay is reduced on account of his possible entitlement to statutory pay.

(4) If a person who is a member or has applied to be a member—

(a) goes on ordinary maternity leave, paternity leave or ordinary adoption leave, and

(b) is not entitled to receive pay (including statutory pay) for all or any part of that period of leave,

he shall be treated for the purposes of these Regulations and the Benefits Regulations as if he had paid contributions under paragraph (1) for the unpaid period of that leave and on the pay that he would have received during that period but for his absence.

(5) If a person who is a member or has applied to be a member—

(a) is on maternity or adoption leave (other than ordinary maternity or adoption leave), and

(b) for all or part of the period of maternity or adoption absence is not entitled to receive pay (including statutory pay) but is a member,

he may make contributions at the standard contribution rate as respects the unpaid period of that absence as if his pay in the employment were equal to the pay he was entitled to receive immediately before the unpaid period began (including any statutory pay but not any amount by which his actual pay is reduced on account of his possible entitlement to statutory pay).

(6) In this regulation—

“ordinary adoption leave” means leave under section 75A of the Employment Rights Act 1996([k]);

“ordinary maternity leave” means leave under section 71 of that Act ([l]);

“paternity leave” means leave under regulations 4 or 8 of the Paternity and Adoption Leave Regulations 2002([m]);

“period of maternity, paternity or adoption absence” means any period throughout which a member is absent from duty because he is exercising his right to take—

(a) ordinary maternity or adoption leave

(b) additional maternity or adoption leave under section 73 or 75B of the Employment Rights Act 1996([n]); or

“statutory pay” means any statutory maternity, paternity or adoption pay payable under the Social Security Contributions and Benefits Act 1992([o]).

Contributions during reserve forces service leave [old 17(4) - (8)]

12.—(1) This regulation applies to a person who—

(a) is a member or has applied to be a member; and

(b) goes on reserve forces service leave.

(2) He must pay contributions under regulation 3 of the Benefits Regulations and any payments under regulation [new 16 (AMCs)] which he was paying immediately before his relevant reserve forces service began if (and only if) his reserve forces pay during that service equals or exceeds the pay he would have received if he had continued to be employed in his former employment.

(3) Those contributions continue to be payable to the appropriate fund at the same rates on that pay.

(4) If he is not obliged to pay contributions under paragraph (2) he must be treated for the purposes of these Regulations and the Benefits Regulations as if he had paid them and also any payments under regulation [new 16] which he would have been liable to pay if he had continued to be employed in his former employment.

(5) If he was paying any contributions under regulations [new 18 (AVCs) and new 23 (SCAVCs)] immediately before his leave began—

(a) he may continue to pay, or may stop paying, them ; and

(b) unless he has stopped paying them, the appropriate administering authority must throughout the period of his relevant reserve forces service, continue to pay any such contributions which were to be used to provide benefits for him on his death.

(6) His relevant reserve forces service counts as a period of membership in his former employment.

(7) If during that service, he—

(a) dies;

(b) attains his normal retirement age, or

he must be treated as if he were in that employment at that time.

(8) In this regulation—

[ “relevant reserve forces service”, “reserve forces pay”, “reserve forces service leave”] same meaning as in Schedule 1 to 1997 Regulations

Contributions during trade dispute absence [old 18(3) - (5) and (9)]

13.—(1) If a person—

(a) is away from work without permission for a period of one or more days during and because of a trade dispute (“a trade dispute absence”), and

(b) was a member immediately before—

(i) that period, or

(ii) where two or more periods of absence have occurred because of one such dispute, the first such period,

he may make a contribution for the relevant contribution period at the rate of 16% on his lost pay for that period.

(2) A person’s lost pay is the difference between—

(a) his actual pay (if any), and

(b) the pay he would have received but for any trade dispute absence;

and, in determining that difference, any guarantee payments under Part 3 of the Employment Rights Act 1996 ([p]) must be disregarded.

(3) A period is a person’s relevant contribution period if—

(a) it is co-extensive with one of the intervals at which he is required under regulation [corresponding to old regulation 12] to make standard contributions, and

(b) it includes all or part of his trade dispute absence.

(4) The termination of a person’s contract of employment because of a trade dispute does not prevent this regulation applying to him if he again becomes an employee of the same Scheme employer and a member not later than the day after the dispute ends.

(5) In this regulation, “trade dispute” has the meaning given in section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992 ([q])

Contributions during absences with permission [old 17(1) and 18(1)]

14.—(1) If a member—

(a) is away from his employment with permission (otherwise than because of illness or injury)—

(i) for a continuous period of less than 31 days, or

(ii) on jury service for any period; and

(b) is receiving reduced pay or no pay,

he must make contributions at the standard contribution rate on the pay he would have received during that period but for his absence.

(2) If a member—

(a) is away from his employment with permission (otherwise than because of illness or injury) for a continuous period of more than 30 days; and

(b) is receiving reduced pay or no pay,

he may make contributions at the standard contribution rate for the relevant period on the pay he would have received during that period but for his absence.

(3) The relevant period is the period of absence mentioned in paragraph (2)(a) subject to a maximum of 36 months.

Applications to make absence contributions [old 18(6)-(7)]

15.—(1) To make contributions under regulation [new 11(5), 13 or 14(2)] a person must apply to the employing authority in writing before the expiry of —

(a) if he returns to work following the absence, the period of 30 days beginning with the day on which he returns to work, or

(b) if he ceases to be employed by that authority without returning to work, before the expiry of the period of 30 days beginning with the day he ceases to be employed, or

(2) An application under paragraph (1) may be made by the person’s personal representatives if he has died without making an application.

Payment of additional monthly contributions (AMCs) [new, instead of old 55]

16.—(1) A member may [at any time] request the appropriate administering authority to be allowed to pay additional monthly contributions in order to be credited with additional pension of £250 a year, or multiples of that amount, to a maximum of £5000. (“AMCs”).

(2) The member’s request must be made to the appropriate administering authority in writing and must—

(a) state the length of the period over which he wishes to pay additional monthly contributions (“the payment period”); and

(b) contain a declaration that the member believes he is in normal health.

(3) The length of the payment period must be such that it ends before the member’s NRD.

(4) The member may only pay AMCs if the appropriate administering authority notifies him in writing that it agrees to the request.

(5) The Government Actuary shall from time to time determine the amount of AMCs required for any given amount of increased pension and may determine different amounts of AMCs—

(a) for—

(i) persons of different ages, or

(ii) men or women; or

(b) depending on the length of different payment periods.

(6) Where the appropriate administering authority agrees to the member’s request—

(a) it must notify him of the amount of AMCs payable by him in accordance with the Government Actuary’s determination; and

(b) the member must pay those AMCs from 1st April following his request.

(7) The Government Actuary may at any time redetermine any amount determined under paragraph (5); and, if he does so, the member must, from 1st April following the redetermination, pay AMCs in accordance with the redetermination.

(8) If the member pays (or is treated under regulation 17 as having paid) AMCs for the whole of the payment period, he must be credited with additional pension of an amount corresponding to them.

Discontinuance of AMCs [old 83]

17.—(1) A member—

(a) may stop paying his AMCs before the end of the payment period if he notifies the appropriate administering authority and the employing authority in writing that he wishes to do so; and

(b) must stop doing so if he ceases to be an active member.

(2) If a member stops paying his AMCs before the end of the payment period—

(a) on leaving his employment on the grounds of ill-health and his employing authority makes a determination in respect of him under regulation [new 12(1) of the Benefits Regulations,] or

(b) on his death,

he is to be treated as having paid his AMCs up to the end of that period.

(3) If a member stops paying his AMCs before the end of the payment period on leaving his employment by reason of redundancy at least 12 months after the request under regulation [new 16(2)] he may, after notifying the administering authority of his wish to do so, make a lump sum payment to the appropriate fund.

(4) In paragraph (3) “redundancy” includes retirement in the interests of efficiency or because the member held a joint appointment which has been ended because the other holder has left it

(5) A notification under paragraph (3) must be given in writing not later than the expiry of—

(a) the period of three months beginning on the day after he leaves his employment, or

(b) such longer period as the authority allows.

(6) The amount of the lump sum payment mentioned in paragraph (3) must be calculated by an actuary appointed by the appropriate administering authority as representing the capital value of the member’s unpaid AMCs.

(7) If the member duly makes that payment before the expiry of the period of one month beginning with the date on which he is notified of its amount, he must be treated as having paid his AMCs up to the end of the payment period.

(8) If a member stops paying his AMCs and neither paragraph (2) nor (3) applies to him, he must be credited with additional pension of an amount determined by the Government Actuary, having regard to the AMCs he paid before he stopped.

Additional voluntary contributions (AVCs) [old 60]

18.—(1) An active member may pay contributions under this regulation (“AVCs”) in addition to any other contributions he may pay under regulation [new 16 ].

(2) Where he wishes to do so, he must first—

(a) notify his employing authority in writing, and

(b) in the notification specify—

(i) the percentage of his remuneration he wishes to pay or the amount he wishes to pay on his usual pay days;

(ii) whether he wishes any of his AVCs to be used to provide benefits payable on his death (“death benefits”); and

(iii) if he does, the proportion to be so used.

(3) At any time before the member first pays AVCs, the appropriate administering authority may require the amount of the AVCs to be at least the specified minimum.

(4) The specified minimum is the amount specified in regulation 2(8) of the Pension Schemes (Voluntary Contributions Requirements and Voluntary and Compulsory Membership) Regulations 1987([r]).

(5) A member may—

(a) vary —

(i) the amount of his AVCs, or

(ii) the proportion of them to be used to provide death benefits; or

(b) stop paying AVCs.

(6) Where he wishes to do so, he must first notify his employing authority in writing.

(7) A member who is in active service may transfer into his additional voluntary contributions scheme constituted under this regulation the accumulated value of any other additional voluntary contributions scheme to which he has subscribed.

(8) A member who wishes to make a transfer under paragraph (7) must first notify his employing authority in writing.

Payment of AVCs [old 61]

19.—(1) An active member must normally pay AVCs on his usual pay day.

(2) No AVCs may be paid to cover any period during which the person contributing is not an active member.

(3) A person may not pay AVCs after he leaves his employment with the employing authority mentioned in regulation [new 18(2)(a)].

(4) But he may do so if his last usual pay day with that authority falls after that time (or if he gives a fresh notification under regulation 8(2) in relation to another employment).

AVCs: functions of employing and administering authorities [old 62]

20.—(1) An employing authority must send a member’s notification under regulation [new 18(2)] or (6)] to the appropriate administering authority as soon as possible.

(2) The appropriate administering authority must make such arrangements as are necessary to enable the member —

(a) to begin paying AVCs before the expiry of the period of six months beginning with the date of his notification under regulation [new 18(2)]; or

(b) to vary his AVCs, or stop paying them, before the expiry of the period of three months beginning with the date of his notification under regulation [new 18(6)].

AVCs: changes of employment in which membership is continued [old 65]

A pointer to this regulation and regulation 22 is to be included at the end of regulation 30(2) of the Benefits Regulation

21.—(1) This regulation applies where a member who is paying AVCs—

(a) leaves his employment with the employing authority mentioned in regulation [new 18(2)(a)];

(b) enters a new employment before the expiry of the period of one month and one day beginning on the date he left the former employment; and

(2) The member may continue to pay AVCs on the same basis as he was paying them under regulation [new 18] if he notifies his new employing authority that he wishes to do so.

(3) A notification under paragraph (2) must be given before the expiry of—

(a) the period of one month beginning with the date the new employment begins, or

(b) such longer period as that authority may allow).

(4) He—

(a) may continue paying AVCs with effect from his next pay day in his new employment after the notification under paragraph (2), but

(b) may not pay any AVCs to cover any period falling between the former and new employments..

(5) The new employing authority must send a notification under paragraph (2) to the appropriate administering authority in relation to the new employment.

(6) If the same authority is the member’s appropriate administering authority in both the former and new employments, it must continue to—

(a) apply any AVCs to be used for death benefits towards the pension policy mentioned in regulation [29 of the Benefits Regulations]; and

(b) invest all other AVCs paid by him as specified in regulation [30(1)] of those Regulations].

(7) Where paragraph (6) does not apply, the appropriate administering authority in the former employment—

(a) must transfer to the appropriate administering authority in the new employment a sum equal to the accumulated value of the member’s AVCs invested under that regulation 30(1); and

(b) assign to that authority any assignable rights in respect of him under any such pension policy.

(8) The appropriate administering authority in the new employment must apply and invest the sum transferred and payments of [AVCs] as mentioned in paragraph (6).

(9) This regulation and regulation [new 22] and regulation [30(2)] of the Benefits Regulations apply to changes in the new employment as if the notification under regulation [new 18(2)] had been given in that employment (and so on).

Use of accumulated value of AVCs [old 66] Regulation 66(8) of the 1997 Regulations is not replicated here as it seems more suitable for Transitional Regulations

22.—(1) This regulation applies where a person who has paid AVCs during his employment or made a transfer under regulation [new 18(7)] —

(a) leaves his employment with the employing authority notified under regulation [new 18(2) or [(8)]—

(i) without entitlement to the immediate payment of retirement benefits; or

(ii) with such entitlement under regulation [8, 9, 11 or 16 of the Benefits Regulations];

(b) stops being an active member without leaving that employment; or

(2) A person mentioned in paragraph (1)(a)(i) must notify that employing authority in writing that he wishes the accumulated value of the AVCs invested under regulation [30(1) of the Benefits Regulations] (“the accumulated value”) to be used in one or more of the permissible ways specified in the notification.

(3) The permissible ways are—

(a) to subscribe to an occupational pension Scheme (other than the Scheme);

(b) to subscribe to a personal pension scheme (including an additional voluntary contributions scheme, other than a scheme registered under section 153 of the Finance Act 2004;

(d) to purchase an appropriate policy from one or more AVC insurance companies. .

(4) A person mentioned in paragraph (1)(a)(ii) or (c) may notify his employing authority in writing that he wishes the accumulated value to be used to provide additional pension for him under the Scheme, or partly to provide such pension for him.

(5) If he does so, he becomes entitled to such additional pension as is shown as appropriate in guidance issued by the Government Actuary.

(6) Such guidance may only show amounts of additional pension in multiples of £250 a year to a maximum of £5000.

(7) The employing authority must send a notification under paragraph (2) or (4) to the appropriate administering authority as soon as possible.

(8) In the case of a person mentioned in paragraph (1)(b)—

(a) the employing authority must, as soon as possible, inform the appropriate administering authority that the person has stopped being an active member; and

(b) the accumulated value must be used to subscribe to a self-employed pension arrangement.

(9) The appropriate administering authority must make such arrangements as are necessary for the use of the accumulated value in accordance with a notification under paragraph (2) or (4) or with paragraph (8)(b).

Establishment of shared cost AVC schemes (SCAVCs) [old 67]

23.—(1) An employing authority may decide to establish and maintain arrangements for the purpose of enabling contributions (“SCAVCs”) to be paid by and for active members under this regulation, in addition to the others which may be paid under this Part.

(2) The decision must specify—

(a) whether all active members in employment under the Scheme with the employing authority are eligible to take part in them and, if not, the conditions of eligibility;

(b) whether SCAVCs may be used to provide benefits on the death of active members (“death benefits”);

(i) whether the whole or a proportion is to be so used, and

(ii) if a proportion, specify it; and

(d) the amount of the contributions which the authority will pay under the arrangements for members who are themselves paying contributions under them. .

Applications to pay SCAVCs [old 68]

24.—(1) If an active member whose employing authority has established arrangements under regulation [new 23] wishes to pay SCAVCs he must apply to the authority in writing.

(2) The authority must notify the member in writing whether it has accepted or rejected it.

(3) That notification must be given before the expiry of the period of three months beginning with its receipt of his application

(4) A notification of acceptance must specify—

(a) the percentage of the member’s pay which the authority will pay under the arrangements;

(b) whether any SCAVCs are to be used to provide death benefits; and

(5) A member may stop paying SCAVCs if he first notifies his employing authority in writing that he wishes to do so.

SCAVCs: functions of employing and administering authorities [old 69]

25.—(1) An employing authority must send a copy of any notification of acceptance under regulation [new 24(2)] or notification under regulation [new 24(5)] to the appropriate administering authority. .

(2) The appropriate administering authority must make such arrangements as are necessary to enable the member —

(a) to begin paying SCAVCs before the expiry of the period of six months beginning with the date of his application under regulation [new 24(1)]; or

(b) to stop paying them before the expiry of the period of three months beginning with the date of his notification under regulation [new 24(5)].

Application and investment of SCAVCs [old 70]

26.—(1) Where arrangements established under regulation [new 23] provide for any SCAVCs to be used to provide death benefits, the appropriate administering authority must make arrangements for those benefits to be provided under a pension policy with an AVC insurance company.

(2) The appropriate administering authority must invest any SCAVCS which are not to be so used with an approved AVC body.

(3) Regulations [29(2) to (5) and 30(2) to (6)] of the Benefits Regulations apply as respects SCAVCs as they apply as respects AVCs.

SCAVCs: changes of employment in which membership is continued [old 71]

27.—(1) This regulation applies where a member who is paying SCAVCs—

(a) leaves his employment ; and

(b) enters a new employment in which he is also a member before the expiry of the period of one month and one day beginning on the date he left the former employment.

(2) The member may notify his new employing authority in writing that he wishes the accumulated value of the invested SCAVCs specified in regulation 30(2) of the Benefits Regulations (as it applies by virtue of regulation [new 26(3))] to be—

(a) treated as AVCs paid under regulation [new 18]; or

(b) where paragraph (3) applies, used to make a contribution to the new employing authority’s SCAVCs arrangements. .

(3) This paragraph applies if—

(a) the member’s new employing authority has established arrangements under regulation [new 23] for the payment of SCAVCs, and

(b) he has made an application in writing to contribute to those arrangements which has been accepted.

(4) A notification under paragraph (2)(a) must specify—

(a) whether the member wishes the notification to be treated as a notification under paragraph (2)(a) of regulation [new 18]; and

(b) if he does, the matters required to be specified under paragraph (2)(b) of that regulation. .

(5) The new employing authority must send a notification under paragraph (2) to the appropriate administering authority in relation to the new employment.

(6) Where a notification is given under paragraph (2) and the member’s appropriate administering authority in the former employment (“the former authority”) is different from his appropriate administering authority in his new employment (“the new authority”), the former authority must transfer to the new authority a sum equal to the accumulated value of the member’s invested SCAVCs.

(7) Where a notification is given under paragraph (2)(a), the new authority must apply and invest the sum transferred as mentioned in [regulation 30 of the Benefits Regulations] together with any AVCs paid in respect of the new employment falling to be so invested where the member has specified that he wishes the notification to be treated as mentioned in paragraph (4)(a).

(8) Where a notification is given under paragraph (2)(b)—

(a) if the new authority consents, the former authority must assign to the new authority any assignable rights in respect of the member under any pension policy under regulation [new 26(1)]; and

(b) the new authority must apply and invest the sum transferred in the same manner as any SCAVCs paid in respect of the new employment (other than those used to provide death benefits).

Termination of SCAVCs [old 72]

28.—(1) Where a member who is paying SCAVCs—

(a) leaves his employment and does not enter a new employment in which he is an active member, or

(b) stops being an active member without leaving his employment,

regulation [new 22] applies as respects the use of the accumulated value of the invested SCAVCs specified in [regulation 30(2) of the Benefits Regulations (as it applies by virtue of regulation [new 26(3)] as it would apply to a person in his circumstances as respects the accumulated value mentioned in regulation [new 22].

(2) Where—

(a) neither paragraph (1)(a) or (b) applies,

(b) an employing authority or a member stops paying SCAVCs, and

the employing authority must give notice to the appropriate administering authority.

(3) This paragraph applies where the reason the authority or member stops paying SCAVCs is that the member has left his employment and entered a new employment in which he is a member.

Separate treatment of AVCs and SCAVCs from other contributions [old 84]

29.—(1) The regulations mentioned in paragraph (2) do not apply in relation to benefits under—

(a) such a policy as is mentioned in regulation [new 26(1)] or in [regulation 29(1) or 30(2) of the Benefits Regulations] (including those paragraphs as they apply by virtue of regulation [new 26(3)], or

(b) any agreement made for the payment of AVCs before [the commencement date].

(2) Those regulations are—

(a) regulation [new 57] (first instance decisions); and

(b) regulation [corresponding to old 113] (recovery and retention in cases of misconduct). .

Cost of calculations of additional pension where no notification given under regulation 22(5) [old 86]

30.—(1) This regulation applies where, at a member’s request, an administering authority give him information concerning the amount of additional pension which would be payable if he were to give a notification under paragraph (5) of regulation [new 22)] (including that paragraph as applied by regulation [new 28(1))].

(2) If the member does not give such a notification before the expiry of the period of three months beginning with the date the authority gives him the information, it may deduct the cost of calculating that amount from the accumulated value of the additional contributions mentioned in regulation [30(2) of the Benefits Regulations].

PART 4

PENSION FUNDS AND EMPLOYERS PAYMENTS

The pension funds [old 73]

31.The bodies responsible for maintaining pension funds for the Scheme immediately before the commencement date must continue to maintain them unless the fund is vested in a different body by or under any enactment.

Pension funds: governance policy statement [old 73A as substituted by 2007 Amendment SI]

32.—(1) This regulation applies to the written statement prepared and published by an administering authority under regulation 73A of the 1997 Regulations ([s]).

(2) The authority must—

(a) keep the statement under review;

(b) make such revisions as are appropriate following a material change in respect of any of the matters mentioned in paragraph (3); and

(i) publish the statement as revised; and

(ii) send a copy of it to the Secretary of State.

(3) The matters are—

(a) whether the authority delegates its function, or part of its function, in relation to maintaining a pension fund to a committee, a sub-committee or an officer of the authority;

(b) if it does so—

(i) the terms, structure and operational procedures of the delegation;

(ii) the frequency of the meetings of any committee or sub-committee to which the function or part of the function is delegated;

(iii) whether such a committee or sub-committee includes representatives of employing authorities (including authorities which are not Scheme employers) or members, and, if so, whether those representatives have voting rights;

(c) the extent to which a delegation, or the absence of a delegation, complies with guidance given by the Secretary of State; and

(d) if it does not do so, the reasons for not complying.

(4) In reviewing and making revisions to the statement the authority must consult such persons as it considers appropriate.

Appropriate funds [old 74]

33.—(1) The appropriate fund for a member or a person who is entitled to any benefit in respect of a person who has been a member is—

(a) in the case of an active member, the fund specified for a member of his description in accordance with Schedule [new 4];

(b) in the case of—

(i) a deferred or pensioner member who is an active member on the commencement date or has been an active member since that date, or

(ii) a member in respect of whom another person is entitled under the 1997 Regulations and the Benefits Regulations,

the fund so specified for a member of his description when he ceased to be an active member; and

(c) in the case of any other deferred or pensioner member, the fund specified for him by virtue of [need to refer to new Transitional Regulations].

(2) Where these Regulations or the Benefits Regulations refer to payments being made without referring to the fund to which or from which they are to be made, the reference is to payments being made to or from the fund which is the appropriate fund for the member in question.

(3) Paragraph (2) does not apply where the payments are made under regulations [new 18 to 28] (AVCs and SCAVCs).

Admission agreement funds [old 75]

34.—(1) An administering authority which has made an admission agreement may establish a further pension fund (an “admission agreement fund”) in addition to the fund maintained under regulation [new 31] (“the main fund”).

(2) Immediately after an authority establishes an admission agreement fund, it must give the Secretary of State written notice that it has done so.

(3) The notice must specify the admission bodies whose employees are eligible for benefits from the admission agreement fund.

(4) Where an admission agreement fund is established—

(a) the liabilities of the main fund as respects membership in employment with those specified bodies become liabilities of the admission agreement fund; and

(b) assets of such value as an actuary appointed by the appropriate administering authority determines to be appropriate must be transferred from the main fund to the admission agreement fund.

(5) When valuations under regulation [new 38] of both the main fund and the admission agreement fund are first obtained after the admission agreement fund is established, the administering authority must obtain a transfer statement from an actuary appointed by the authority.

(6) The transfer statement must specify whether, in the actuary’s opinion, there is a need for further assets to be transferred from the main fund to the admission agreement fund and, if so, their value.

(7) Where the transfer statement specifies that assets of a specified value need to be transferred, the administering authority must arrange for assets of that value to be transferred as soon as is reasonably practicable.

Accounts and audit [old 76]

35.—(1) After any of its pension funds has been audited, an administering authority must immediately send copies of the following to each body whose employees are active members—

(a) the revenue account and balance sheet of the fund; and

(b) any report by the auditor.

(2) The pension input period for the purposes of section 238 of the Finance Act 2004 is the year ending on 31st March 2008 and each year ending on 31st March after that year.

Pension fund annual report [new, inserted by 2007 Amendment SI]

36.—(1) An administering authority must, in relation to each year beginning on the commencement date and each subsequent year, prepare a document which contains—

(a) a report about the management and financial performance during the year of each of the pension funds maintained by the authority, including a statement of the level of funding of the assets and liabilities of the fund as at the balance sheet date;

(b) a report which explains its investment policy for each of those funds and reviews the performance during the year of the investments of each fund;

(d) for each of those funds, a statement, by the actuary who carried out the most recent valuation of the assets and liabilities of the fund, of the level of funding disclosed by that valuation;

(e) the current version of the statement mentioned in regulation [new 32(1)] (governance compliance statement);

(f) for each of those funds, the fund account and net asset statement with supporting notes and disclosures prepared in accordance with proper practices([t]);

(g) the current version of the statement mentioned in regulation [new 37] (funding strategy statement);

(h) the current version of the statement under regulation 9A of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (statement of investment principles)([u]);

(i) the current version of the statement under regulation [new 69] (statements of policy concerning communications with members and employers))([v]); and

(j) any other material which the authority considers appropriate.

(2) The authority must publish the document on or before 1st October in the year following the year in relation to which it has been prepared.

(3) In preparing and publishing the document the authority must have regard to guidance given by the Secretary of State.

Funding strategy statement [old 76A, substituted by 2007 Amendment SI]

37.—(1) This regulation applies to the funding strategy statement prepared and published by an administering authority under regulation 76A of the 1997 Regulations ([w]).

(2) The authority must—

(a) keep the statement under review;

(b) make such revisions as are appropriate following a material change—

(i) in its policy on the matters set out in the statement, or

(ii) to the current version of its statement under regulation 9A of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (statement of investment principles); and

(3) In reviewing and making revisions to the statement, the authority must—

(a) have regard to the guidance set out in the document published in March 2004 by CIPFA and called “CIPFA Pensions Panel guidance on Preparing and Maintaining a Funding Strategy Statement (Guidance note issue No.6)”; and

(b) consult such persons as it considers appropriate.

Actuarial valuations and certificates [old 77(1) to (9)]

38.—(1) Each administering authority must obtain—

(a) an actuarial valuation of the assets and liabilities of each of their pension funds as at 31st March 2007 and in every third year afterwards;

(b) a report by an actuary in respect of the valuation; and

(2) Each of those documents must be obtained before the first anniversary of the date (“the valuation date”) as at which the valuation is made or such later date as the Secretary of State may agree.

(3) A report under paragraph (1)(b) must contain a statement of the demographic assumptions used in making the valuation; and the statement must show how the assumptions relate to the events which have actually occurred in relation to members of the Scheme since the last valuation.

(4) A rates and adjustments certificate is a certificate specifying—

(a) the common rate of employer’s contribution; and

(b) any individual adjustments,

for each year of the period of three years beginning with 1st April in the year following that in which the valuation date falls.

(5) The common rate of employer’s contribution is the amount which, in the actuary’s opinion, should be paid to the fund by all bodies whose employees contribute to it so as to secure its solvency, expressed as a percentage of the pay of their employees who are active members.

(6) The actuary must have regard to—

(a) the existing and prospective liabilities of the fund arising from circumstances common to all those bodies;

(b) the desirability of maintaining as nearly constant a common rate as possible; and

(c) the current version of the administering authority’s funding strategy statement mentioned in regulation [new 37].

(7) An individual adjustment is any percentage or amount by which, in the actuary’s opinion, contributions at the common rate should, in the case of a particular body, be increased or reduced by reason of any circumstances peculiar to that body.

(8) A rates and adjustments certificate must contain a statement of the assumptions on which the certificate is given as respects—

(a) the number of members who will become entitled to payment of pensions under provisions of the Scheme; and

(b) the amount of the liabilities arising in respect of such members,

during the period covered by the certificate.

(9) The authority must provide the actuary preparing a valuation or a rates and adjustments certificate with the consolidated revenue account of the fund and such other information as he requests.

Supply of copies of valuations, certificates etc [old 77(10) and (11)]

39.—(1) An administering authority must send copies of any valuation, report, certificate or revised certificate obtained under regulation [new 38] or [new 40] to—

(a) the Secretary of State;

(b) each body with employees who contribute to the fund in question; and

(2) An administering authority must also send to the Secretary of State—

(a) a copy of the consolidated revenue account with which the actuary was provided under regulation [new 38(9)]; and

(b) a summary of the assets of the fund at the valuation date (unless such a summary is contained in the report under regulation [new 38(1)(b).]

Special circumstances where revised actuarial valuations and certificates must be obtained [old 78]

40.—(1) When obtaining a transfer statement under regulation [new 34(5)], an administering authority must also obtain from the actuary a rates and adjustments certificate for the admission agreement fund for each remaining year of the period covered by the most recent such certificate for its main fund.

(2) Where an admission agreement ceases to have effect, the administering authority which made it must obtain—

(a) an actuarial valuation as at the date it ceases of the liabilities of the fund in respect of current and former employees of the admission body which is a party to that agreement (“the outgoing admission body”); and

(b) a revision of any rates and adjustments certificate for any fund which is affected, showing the revised contributions due from that body.

(3) Where, for any reason, it is not possible to obtain revised contributions from the outgoing admission body, or from an insurer or any person providing an indemnity or bond on behalf of that body, the administering authority may obtain a further revision of any rates and adjustments certificate for the fund, showing—

(a) in a case where that body is a transferee admission body within regulation [new 6(2)(a)]), the revised contributions due from the body which is the Scheme employer in relation to that admission body; and

(b) in any other case, the revised contributions due from each employing authority which contributes to the fund.

(4) An administering authority may obtain from an actuary a certificate specifying, in the case of an admission body, the percentage or amount by which, in the actuary’s opinion—

(a) the contribution at the common rate should be adjusted; or

(b) any prior individual adjustment should be increased or reduced,

with a view to providing that the value of the assets of the fund in respect of current and former employees of that body is neither materially more nor materially less than the anticipated liabilities of the fund in respect of those employees at the date the admission agreement is to end.

(5) Paragraph (6) applies where—

(a) an administering authority agrees with an employing authority as mentioned in regulation [new 42(4)]; or

(b) it appears to an administering authority that the amount of the liabilities arising or likely to arise in respect of members in employment with an employing authority exceeds the amount specified in, or likely as a result of, the assumptions stated for that authority in a rates and adjustments certificate by virtue of regulation [new 38(8)].

(6) The administering authority must obtain a revision of the rates and adjustments certificate concerned, showing the resulting changes as respects that employing authority.

Employer’s contributions [old 79]

41.—(1) An employing authority must contribute to the appropriate fund in each year covered by a rates and adjustments certificate under regulation [new 38] or [new 40] the amount appropriate for that authority as calculated in accordance with the certificate and paragraph (4).

(2) During each of those years an employing authority must make payments to the appropriate fund on account of the amount required for the whole year.

(3) Those payments on account must—

(a) be paid at the end of the intervals determined under regulation [(new 44(1)]; and

(b) equal the appropriate proportion of the whole amount due under paragraph (1) for the year in question.

(4) An employer’s contribution for any year is the common percentage for that year of the pay on which contributions have, during that year, been paid to the fund under regulation [new 11, 12 or 14] or the Benefits Regulations by employees who are active members , increased or reduced by any individual adjustment specified for that employer for that year in the rates and adjustments certificate.

(5) The common percentage is the common rate of employer’s contribution specified in that certificate, expressed as a percentage.

(6) Where an employee—

(a) is treated under paragraph (4) of regulation [new 11] as if he had paid contributions; or

(b) has paid contributions during a period of maternity, paternity or adoption absence (within the meaning of that regulation),

the pay on which the common percentage is calculated is the pay the employee would have received if he had not been absent.

Employer’s payment following decision to increase total membership or award additional pension [old 52(6) - (11) and 80(1), (3) and (4) (partially)]

42.—(1) This regulation applies where an employing authority makes a decision under—

(a) regulation [25 of the Benefits Regulations] (which confers power to increase the total membership of an active member by an additional period); or

(b) regulation [26 of those Regulations] (which confers power to award additional pension).

(2) Unless paragraph (4) applies, the employing authority must pay the appropriate sum for the person to whom the decision relatesto the appropriate fund before the expiry of the relevant period.

(3) The appropriate sum for a person is such sum as is shown as appropriate in guidance issued by the Government Actuary

(4) This paragraph applies where the administering authority and the employing authority agree before the expiry of the relevant period that the employing authority will pay increased contributions under regulation [new 41] to meet the cost of the increase in membership or the additional pension.

(5) Any extra charge on the appropriate fund resulting from the decision must be repaid to the fund by the employing authority concerned but only so far as not paid under paragraph (2).

(6) In the case of a decision under regulation 25 of the Benefits Regulations, the additional period in question may only be counted as a period of membership if one of the conditions in paragraph (8) is met.

(7) In the case of a decision under regulation 26 of those Regulations, a person is only entitled to the additional pension awarded if one of those conditions is met.

(8) The conditions are that either—

(a) the employing authority makes the payment required by paragraph (2) within the relevant period; or

(b) paragraph (4) applies

(9) The relevant period is—

(a) the period of one month beginning with the date of the decision, or

(b) such longer period as the employing authority and the administering authority agree.

(10) If neither of the conditions in paragraph (8) is met, the decision ceases to have effect.

(11) [If a person becomes entitled on leaving an employment to increased benefits under regulation [12(2), (3) or (4) BR], no decision may be made under regulation [25BR] by reason of his leaving that employment.] This paragraph may be moved to regulation 25 of the Benefits Regulations

Employer’s further payments [old 80]

43.—(1) Any extra charge on the appropriate fund resulting from a member’s becoming entitled to benefits calculated under paragraphs (2)(b), (3)(b) or (4) of regulation [12BR] must be repaid to the fund by the employing authority concerned.

(2) The appropriate administering authority may require the employing authority concerned to make additional payments to the appropriate fund in respect of any extra charge on the fund resulting from retirement benefits becoming immediately payable to a member under regulation [10(1), 11, 16(1) or 16(6) of the Benefits Regulations].

Payment by employing authorities to appropriate administering authorities [old 81]

44.—(1) Every employing authority must pay to the appropriate administering authority on or before such dates falling at intervals of not more than 12 months as the appropriate administering authority may determine—

(a) all amounts from time to time deducted from the pay of its employees under these Regulations;

(b) any amount it has received by deduction or otherwise under regulation [new 11(5), 13 or 14(2)] during the interval;

(c) any extra charge payable under regulation [new 42 or 43] of which it has been notified by the administering authority during the interval; and

(d) a contribution towards the cost of the administration of the fund.

(2) But—

(a) an employing authority must pay the amounts mentioned in paragraph (1)(a), not later than the time required under section 49(8) of the Pensions Act 1995; and

(b) paragraph (1)(d) does not apply where the cost of the administration of the fund is paid out of the fund under regulation L4(3) of the 1995 Regulations..

(3) Every payment under paragraph (1)(a) must be accompanied by a statement showing—

(a) the name and pay of each of the employing authority’s employees who is an active member;

(b) which employees are paying contributions under regulation [new 16(10, 18(1) or 24(1)];

(c) the amounts which represent deductions from the pay of each of the employees and the periods covered by the deductions, distinguishing amounts representing deductions for any such contributions.

(4) An appropriate administering authority may direct that the information mentioned in paragraph (3) shall be given to the authority instead in such form and at such intervals (not exceeding 12 months) as it specifies in the direction.

(5) If an annual amount payable under paragraph (1)(d) cannot be settled by agreement, it must be determined by the Secretary of State.

(6) Paragraphs (1) and (3) do not apply to an employing authority which is an appropriate administering authority.

Administration costs increased by employing authority’s level of performance [old 81A as inserted by 2007 Amendment SI]

45.—(1) Paragraph (2) applies where, in the opinion of the appropriate administering authority, it has incurred additional administration costs in respect of the fund to which regulation [new 44(1)(d)] refers because of an employing authority’s level of performance in carrying out its Scheme functions.

(2) The appropriate administering authority may give written notice to the employing authority stating—

(a) the administering authority’s reasons for forming the opinion mentioned in paragraph (1);

(b) the authority’s opinion that the employing authority’s contribution under regulation [new 44(1)(d)] should include an amount specified in the notice in respect of the additional administration costs attributable to that authority’s level of performance;

(d) where the administering authority has prepared a pension administration strategy under [new regulation 67], the provisions of the strategy which are relevant to the decision to give the notice and to the matters in sub-paragraph (a), (b) or (c).

(3) Paragraph (4) applies where, in a case falling to be determined by the Secretary of State under regulation [new 44(5)], an appropriate administering authority which has prepared such a strategy contends that the amount payable by an employing authority should include an amount in respect of the additional administration costs attributable to that authority’s level of performance.

(4) The Secretary of State shall have regard to—

(a) the provisions of that strategy which are relevant to the case; and

(b) the extent to which the appropriate administering authority and the employing authority have complied with those provisions in carrying out their Scheme functions.

Interest [old 82]

46.—(1) An administering authority may require an authority from which payment of any amount due under any of the regulations mentioned in paragraph (2) is overdue by more than one month to pay interest on that amount.

(2) The regulations are—

(a) new 41 to 44,

(b) 49,

(d) regulation 24 [of the Benefits Regulations]

(3) Interest under paragraph (1) or under regulation [new 47(5) or new 52] must be calculated at one per cent. above base rate on a day to day basis from the due date to the date of payment and compounded with three-monthly rests.

Deduction and recovery of member’s contributions [old 89]

47.—(1) An employing authority may deduct from a person’s pay any contributions payable by him under these Regulations or the Benefits Regulations.

(2) Sums payable under regulation [new 12(2) ) or (5)(b)] (reserve forces) may be deducted by the member’s former employer from any payment made to him under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 ([x]), to the extent that they are payable in respect of the same period.

(3) The appropriate administering authority may recover any contributions or sum remaining due and not deducted under paragraph (1) or (2)—

(a) as a simple contract debt in any court of competent jurisdiction, or

(b) by deducting it from any payment by way of benefits to or in respect of the person in question under these Regulations.

(4) But if the sums mentioned in paragraph (2) are only recoverable under paragraph (3) if unpaid for 12 months after the person ceases to perform relevant reserve forces service.

(5) If—

(a) an employing authority deduct any amount in error from a person’s pay or any other sum due to him in respect of contributions, and

(b) the amount has not been repaid to him before the expiry of the period of one month beginning with the date of deduction,

the appropriate body must pay him interest on that amount; and the due date for the calculation of the interest under regulation [new 46(2)] is the date of deduction.

(6) Where the employee’s contributions have been paid into the appropriate fund, the repayment and interest must be made out of that fund.

(7) The “appropriate body” for the purpose of paragraph (5) is—

(a) the appropriate administering authority where the employee’s contributions have been paid into the appropriate fund, and

(b) the person’s employing authority where the employee’s contributions have not yet been paid into the appropriate fund.

PART 5

PAYMENT OF BENEFITS ETC

Pension increases and cash equivalents under the Pension Schemes Act 1993 [old 90]

48. Any increase in a pension required by reason of Chapter 3 of Part 4 of the Pension Schemes Act 1993 ([y]) (protection of increases in guaranteed minimum pensions: anti-franking) must be paid from the appropriate fund.

Pension increases under the Pensions (Increase) Acts [old 91]

49. Provisions of old 91 not included in regulation 24 of the Benefits Regulations to be dealt with here or in Transitional Regulations

Contributions equivalent premiums [old 92]

50.—(1) Where a Scheme employer pays a contributions equivalent premium under section 55 of the Pension Schemes Act 1993 in respect of a member, that employer may recover or, if an administering authority, may retain from the appropriate fund a sum not exceeding the premium.

(2) But if the Scheme employer may recover or retain any sum under section 61 of that Act in respect of the premium, only the balance may be recovered or retained under paragraph (1).

(3) Where a contributions equivalent premium is refunded under regulation 54(1)(c) of the Occupational Pension Schemes (Contracting-out) Regulations 1996 (re-entry into employment which is contracted-out by reference to the same scheme)([z]), the authority to whom it is refunded must pay to the appropriate fund a sum equal to the amount of the premium.

Commencement of pensions [old 93]

51.—(1) The first period for which any retirement pension which is payable immediately on a member leaving any employment is payable begins with the day after the date with which his employment ends.

(2) The first period for which any retirement pension under regulation [16 of the Benefits Regulations ] is payable begins—

(a) in a case [where he elects under paragraph (1) of that regulation, with the day on which he elects], and

(b) otherwise, unless he asks to defer payment, with his NRD (but any such deferral shall not extend beyond the day before his 75th birthday.

(3) The first period for which any survivor’s benefits are payable under regulation [19, 20 or 21 of the Benefits Regulations] on the death of a member begins with the day after the date on which he dies.

Interest on late payment of certain benefits [old 94]

52.—(1) Where all or part of a pension or lump sum payment due under these Regulations, the Benefits Regulations or the 1997 Regulations is not paid within the relevant period after the due date, the appropriate administering authority must pay interest on the unpaid amount to the person to whom it is payable (see regulation 46(2)).

(2) The relevant period is—

(a) in the case of a pension, one year;

(b) in the case of a payment under regulation [15(1), 17(1) or 18(1) of the Benefits Regulations], the period ending one month after the date on which the administering authority receives notification of the member’s death; and

(3) The due date is—

(a) in the case of a pension, the date on which it becomes payable;

(b) in the case of a retirement grant , the date on which it is payable;

(d) in the case of a payment of a lump sum under regulation [31 or 32 of the Benefits Regulations], the day after the member would otherwise become entitled to payment of a pension.

Payments due in respect of deceased persons [old 95]

53.—(1) Paragraph (2) applies if, when a person dies, the total amount due to his personal representatives under the Scheme (including anything due to him at his death) (“the amount due”) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965([aa]) and applying in relation to his death.

(2) The appropriate administering authority may pay the whole or part of the amount due from its pension fund to—

(a) his personal representatives, or

(b) any person or persons appearing to the authority to be beneficially entitled to the estate,

without the production of probate or letters of administration of his estate.

(3) Such a payment discharges that authority from accounting for the amount paid.

Non-assignability [old 96]

54.—(1) Every benefit to which a person is entitled under the Scheme is payable to or in trust for him.

(2) No such benefit is assignable or chargeable with his or any other person’s debts or other liabilities.

(3) On the bankruptcy of a person entitled to a benefit under the Scheme no part of the benefit passes to any trustee or other person acting on behalf of the creditors, except in accordance with an income payments order under section 310 of the Insolvency Act 1986([bb]).

Treatment of other benefits [old 96A]

55. Any payment of employment-related benefits made to a member by an administering authority otherwise than in accordance with regulations made under section 7 of the Superannuation Act 1972 shall be treated as if it had been made under the Scheme.

PART 6

DETERMINATION OF QUESTIONS AND DISPUTES

Interpretation of Part [old 97(13) and (13A)]

56. In this Part—

(a) a reference to the Scheme employer or the appropriate administering authority of a prospective member is a reference to the body that would be his employer or appropriate administering authority if he were to become an active member in the employment by virtue of which he would be eligible to join the Scheme; and

(b) a reference to the appropriate administering authority of a person entitled to a pension credit is a reference to the body that would be his appropriate administering authority if he were to become a pension credit member.

First instance decisions - general [old 97(1) to (8A)]

57.—(1) Any question concerning the rights or liabilities under the Scheme of any person other than a Scheme employer must be decided in the first instance by the person specified in this regulation.

(2) Any question whether a person is entitled to a benefit under the Scheme must be decided—

(a) in the case of a person entitled to a pension credit or a pension credit member and in relation to his pension credit rights or pension credit benefits, by his appropriate administering authority; and

(b) in any other case, by the Scheme employer who last employed him.

(3) That decision must be made as soon as is reasonably practicable after the earlier of—

(a) the date the employment ends, or

(b) the date specified in the notification mentioned in regulation [new 10(3)].

(4) Where a person is or may become entitled to a benefit payable out of a pension fund, the administering authority maintaining that fund must decide its amount.

(5) That decision must be made as soon as is reasonably practicable after the event by virtue of which the entitlement arises or may arise.

(6) In paragraph (4) “benefit” includes a benefit specified in regulation F6(12) or (16) of the 1986 Regulations.

(7) In relation to any employment in which a person is a member or prospective member, the appropriate administering authority must decide—

(a) any question concerning his previous service or employment;

(b) what rate of contribution he is liable to pay to the appropriate fund; and

(8) Such a decision must be made as soon as is reasonably practicable after the person becomes a member in the employment.

(9) Other questions in relation to any member or prospective member must be decided by his employer as soon as is reasonably practicable after he becomes a member or a material change affects his employment.

(10) But any question in relation to a person entitled to a pension credit or a pension credit member and his pension credit rights or pension credit benefits must be decided by his appropriate administering authority as soon as is reasonably practicable after the question arises.

First instance decisions: ill-health [old 97(9), (10) and (14)]

58.—(1) Before making a decision under regulation [new 57(2)] about whether a member may be entitled under [paragraph (1), (2), (3) or (5) of regulation 12, or paragraph (6) of regulation 16, of the Benefits Regulations] (“an ill-health decision”), the Scheme employer must obtain a certificate from an independent registered medical practitioner who is qualified in occupational health medicine stating his opinion on the member’s state of health and on the medical aspects of the questions which fall to be determined by the authority under the paragraph concerned.

(2) The independent registered medical practitioner must be in a position to certify that—

(a) he has not previously advised, or given an opinion on, or otherwise been involved in the particular case for which the certificate has been requested; and

(b) he is not acting, and has not at any time acted, as the representative of the member, the Scheme employer or any other party in relation to the same case;

and he must include a statement to that effect in his certificate.

(3) If the Scheme employer is not the member’s appropriate administering authority, it must first obtain that authority’s approval to its choice of registered medical practitioner for the purposes of paragraph (1).

(4) The Scheme employer and the independent registered medical practitioner must have regard to guidance given by the Secretary of State when carrying out their functions under this regulation or, in the case of the Scheme employer, when making an ill-health decision.

(5) In this regulation, “qualified in occupational health medicine” means—

(a) holding a diploma in occupational medicine (D Occ Med) or an equivalent qualification issued by a competent authority in an EEA State (and, for these purposes, “competent authority” has the meaning given by the General and Specialist Medical Practice (Education, Training and Qualification) Order 2003 ([cc])); or

(b) being an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equivalent institution of an EEA State.

Notification of first instance decisions [old 98]

59.—(1) Every person whose rights or liabilities are affected by a decision under regulation [new 57] must be notified of it in writing by the body which made it as soon as is reasonably practicable.

(2) A notification of a decision that the person is not entitled to a benefit must include the grounds for the decision.

(3) A notification of a decision about the amount of a benefit must include a statement showing how it is calculated.

(4) Every notification must contain a conspicuous statement giving the address from which further information about the decision may be obtained.

(5) Every notification must also—

(a) refer to the rights available under regulations [new 60 and 62];

(b) specify the time limits within which the rights under those regulations may be exercised; and

Applications to resolve disagreements [old 100 and 105(6)]

60.—(1) This regulation applies where there is a disagreement about a matter in relation to the Scheme between a member (or an alternative applicant) and a Scheme employer.

(2) These persons are alternative applicants—

(a) a widow, widower or surviving civil partner of a deceased member;

(b) a dependant of a deceased member or any other person to whom benefits in respect of him may be paid;

(d) a pension credit member;

(e) a person entitled to pension credit;

(f) a person who ceased to be a member, or to fall within any of sub-paragraphs (a) to (e), during the period of six months ending with the date of the application; and

(g) in the case of a disagreement relating to the question whether a person claiming to be a member or to fall within any of those sub-paragraphs does so, the claimant.

(3) The member or, as the case may be, the alternative applicant may apply to—

(a) the person specified under regulation [new 59(5)(c)] to give a decision on the disagreement; or

(b) the appropriate administering authority for that authority to refer the disagreement to a person for decision.

(4) An application for a decision must—

(a) set out the applicant’s full name, address and date of birth;

(b) include a statement giving details of the nature of the disagreement and the reasons why the applicant is aggrieved;

(d) be accompanied by a copy of any written notification under regulation [new 59].

(5) An application by—

(a) a member or prospective member;

(b) a person who ceased to be a member or prospective member during the period of six months ending with the date of the application; or

must also set out his national insurance number (if any) and the name of his employing authority.

(6) An application by—

(a) a person entitled to a pension credit or a pension credit member,

(b) a person who ceased to be such a person or member during the period of six months ending with the date of the application, or

must also set out the name of his appropriate administering authority.

(7) An application by any other person must also set out—

(a) his relationship to the member, and

(b) the member’s full name, address, date of birth and national insurance number [(if any)] and the name of his employing authority.

(8) An application must be made before the end of—

(a) the period of six months beginning with the relevant date; or

(b) such longer period as the person giving the decision on the disagreement considers reasonable.

(9) The relevant date is—

(a) in the case of a disagreement relating to a decision under regulation [new 57], the date notification of the decision is given under regulation [new 59]; and

(b) in any other case, the date of the act or omission which is the cause of the disagreement or, if there is more than one, the last of them.

(10) Paragraph (8)(b) does not apply where an appeal has been made under regulation [new 65(1)] in respect of a matter which is the subject of an application under this regulation.

Notice of decisions on disagreements [old 101]

61.—(1) A decision on a disagreement to which an application under regulation [new 60] relates must be given by notice in writing to—

(a) the applicant,

(b) the Scheme employer, and

by notice in writing before the expiry of the period of two months beginning with the date the application was received.

(2) But, if no such notice is given before the expiry of that period, an interim reply must immediately be sent to the persons mentioned in paragraph (1)(a) to (c) setting out —

(a) the reasons for the delay, and

(b) an expected date for giving the decision (“the expected decision date”).

(3) A notice under paragraph (1) must include—

(a) a statement of the decision;

(b) a reference to any legislation or provisions of the Scheme on which the person making the decision relied;

(c) in a case where the disagreement relates to the exercise of a discretion, a reference to the provisions of the Scheme conferring the discretion;

(d) a reference to the right of the applicant to refer the disagreement for reconsideration by the appropriate administering authority under regulation [old 62] and to the time within which the applicant may do so; and

(e) a statement that the Pensions Advisory Service is available to give assistance in connection with any difficulty with the Scheme which remains unresolved including the address at which it may be contacted.

Reference of disagreement for reconsideration by appropriate administering authority [old 99 and 102]

62.—(1) This regulation applies where an application about a disagreement has been made under regulation [new 60] and—

(a) notice of a decision has been given under regulation [new 61(1)], or

(b) an interim reply has been sent under regulation [new 61(2)] but no such notice has been given before the expiry of the period of one month beginning with the expected decision date, or

(c) no such notice has been given or interim reply sent before the expiry of the period of three months beginning with the date the application was made.

(2) The applicant under regulation [new 60] may, before the expiry of the period of six months beginning with the relevant date, make an application to the appropriate administering authority to reconsider the disagreement.

(3) The relevant date is—

(a) in a case falling within paragraph (1)(a), the date of the notice given under [new 61(1)] ;

(b) in a case falling within paragraph (1)(b), the date with which the period mentioned in that sub-paragraph expires; and

(c) in a case falling within sub-paragraph (1)(c), the date with which the period mentioned in that sub-paragraph expires.

(4) The application must—

(a) set out details of the grounds on which it is made;

(b) include a statement that the applicant wishes the disagreement to be reconsidered by the appropriate administering authority;

(d) be signed by or on behalf of the applicant.

(5) Where notice of a decision on the disagreement has been given under regulation [new 61], the application must also—

(a) state why the applicant is dissatisfied with that decision; and

(b) be accompanied by a copy of that notice.

(6) The appropriate administering authority must determine—

(a) the procedure to be followed when exercising its functions under this regulation;

(b) the manner in which those functions are to be exercised.

(7) For the purposes of this regulation, the appropriate administering authority is—

(a) in the case of an applicant who is a member or prospective member, the administering authority which is or was his last appropriate administering authority for the other purposes of these Regulations; and

(b) in the case of an applicant who is the widow, widower or surviving civil partner or dependant of a deceased member, the administering authority which was that member’s appropriate administering authority.

Notice of decisions on reconsideration of disagreement [old 103]

63.—(1) The appropriate administering authority must give its decision on an application under regulation [new 62] by notice in writing—

(a) to the applicant; and

(b) if that authority is not the Scheme employer, to the Scheme employer

before the expiry of the period of two months beginning with the date the application was received.

(2) But, if no such notice is given before the expiry of that period an interim reply must immediately be sent to those parties setting out —

(a) the reasons for the delay, and

(b) an expected date for giving the decision.

(3) A notice under paragraph (1) must include—

(a) a statement of the decision;

(b) in a case where a decision was given under regulation [new 60], an explanation of whether and, if so, the extent to which that decision is confirmed or replaced;

(d) in a case where the disagreement relates to the exercise of a discretion, a reference to the provisions of the Scheme conferring the discretion;

(f) a statement that the Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to the Scheme made or referred in accordance with the Pension Schemes Act 1993 including the address at which he may be contacted.

Rights of representation [old 104]

64.—(1) An application under regulation [new 60] or [new 62] may be made or continued on behalf of the applicant by a representative nominated by him.

(2) Where a person who has the right to make or has made such an application dies, the application may be made or continued on his behalf by his personal representative.

(3) Where such a person is a minor or is or becomes incapable of acting for himself, the application may be made or continued on his behalf by a member of his family or some other person suitable to represent him.

(4) Where a representative is nominated before an application is made, the application must specify his full name and address and whether that address is to be used for service on the applicant of any documents in connection with the application.

(5) Where a representative’s address is not to be so used he must be sent a copy of—

(a) a notice under regulation [new 61(1)] or [new 63(1)], or

(b) an interim reply under regulation [new 61(2)] or [new 63(2)].

Appeals by administering authorities [old 105]

65.—(1) This regulation applies where a Scheme employer—

(a) has decided, or failed to decide, any question falling to be decided by that employer under regulation [new 57] (otherwise than in the exercise of a discretion), and

(b) is not an administering authority.

(2) The administering authority maintaining the pension fund to which the Scheme employer pays contributions may appeal to the secretary of State to decide the question.

(3) Such an appeal must be made by notice in writing given before the end of—

(a) the period of six months beginning with the relevant date, or

(b) such longer period as the Secretary of State considers reasonable.

(4) The relevant date is—

(a) in the case of an appeal relating to a decision notified under regulation [new 59(1)], the date of the notification of the decision, and

(b) in the case of an appeal relating to a failure to decide any question, the date of that failure.

(5) For the purposes of paragraph (4)(b), a Scheme employer is to be taken to have failed to decide a question at the expiry of the period of three months beginning with the date on which the administering authority have requested a decision in writing.

(6) The Secretary of State must issue his decision on the appeal by notice in writing to the appellant and to any other person appearing to him to be affected by it.

(7) Paragraph (8) applies where any other person—

(a) has made an application under regulation [new 60] or [new 62] which has not been determined in respect of any of the matters which are the subject of an appeal under this regulation, or

(b) makes such an application—

(i) at the same time as such an appeal is made, or

(ii) after such an appeal is made and before it is determined.

(8) The appeal must be stayed—

(a) pending notification of a decision under regulation [new 60] or [new 62], or

(b) until the application is withdrawn.

Exchange of information by authorities [old 108]

66.—(1) A Scheme employer which is not an administering authority must—

(a) inform the appropriate administering authority of all decisions made by the employer under this Part concerning members; and

(b) give that authority such other information as it requires for discharging its Scheme functions.

(2) If—

(a) an administering authority makes any decision under this Part about a person for whom it is not the Scheme employer; and

(b) information about the decision is required by his Scheme employer for discharging that employer’s Scheme functions,

that authority must give that employer that information.

PART 7

POLICY STATEMENTS AND INFORMATION

Pension administration strategy [old 76C inserted by 2007 Amendment SI]

67.—(1) An administering authority may prepare a written statement of the authority’s policies in relation to such of the matters mentioned in paragraph (2) as it considers appropriate (“a pension administration strategy”); and, where it does so, paragraphs (3) to (7) apply.

(2) The matters are—

(a) procedures for liaison and communication with employing authorities in relation to which it is the administering authority;

(b) the establishment of levels of performance which the administering authority and those employing authorities are expected to achieve in carrying out their Scheme functions by —

(i) the setting of performance targets;

(ii) the making of agreements about levels of performance and associated matters; or

(iii) such other means as the administering authority considers appropriate;

(c) procedures which aim to secure that the administering authority and those employing authorities comply with statutory requirements in respect of those functions and with any agreement about levels of performance;

(d) procedures for improving the communication by the administering authority and those employing authorities to each other of information relating to those functions;

(e) the circumstances in which the administering authority may consider giving written notice to such an employing authority under regulation 45(2) on account of that authority’s unsatisfactory performance in carrying out its Scheme functions when measured against levels of performance established under sub-paragraph (b);

(f) the publication by the administering authority of annual reports dealing with—

(i) the extent to which that authority and those employing authorities have achieved the levels of performance established under sub-paragraph (b); and

(ii) such other matters arising from its pension administration strategy as it considers appropriate; and

(g) such other matters as appear to the administering authority, after consulting those employing authorities and such other persons as it considers appropriate, to be suitable for inclusion in that strategy.

(3) An administering authority must—

(a) keep its pension administration strategy under review; and

(b) make such revisions as are appropriate following a material change in its policies in relation to any of the matters contained in the strategy.

(4) In preparing or reviewing and making revisions to its pension administration strategy an administering authority must consult those employing authorities and such other persons as it considers appropriate.

(5) An administering authority must publish—

(a) its pension administration strategy; and

(b) where revisions are made to it, the strategy as revised.

(6) When an administering authority publishes a pension administration strategy, or a that strategy as revised, it must send a copy of it to each of those employing authorities and to the Secretary of State.

(7) An administering authority and those employing authorities must have regard to the current version of any pension administration strategy when carrying out their Scheme functions.

(8) In this regulation a reference to the functions of an administering authority includes, where applicable, its functions as an employing authority

Statements of policy about exercise of discretionary functions [old 106]

68.—(1) Each administering authority and Scheme employer must prepare a written statement of its policy in relation to the exercise of its functions under—

(a) regulations [new 18(3), 23 and 24], and

(b) regulations [10, 16 25 and 26 of the Benefits Regulations].

(2) Before the expiry of the period of three months beginning with the commencement date—

(a) each administering authority must send a copy of its statement to each relevant Scheme employer;

(b) each Scheme employer must send a copy of its statement to each relevant administering authority; and

(3) An administering authority and a Scheme employer must each—

(a) keep its statement under review, and

(b) make such revisions as are appropriate following a change in its policy.

(4) Before the expiry of the period of one month beginning with the date any such revisions are made—

(a) each administering authority must send a copy of its revised statement to each relevant Scheme employer;

(b) each Scheme employer must send a copy of its revised statement to each relevant administering authority; and

(5) In preparing, or reviewing and making revisions to, its statement an administering authority must consult the authorities who employ active members for whom it is the appropriate administering authority.

(6) In preparing, or reviewing and making revisions to, its statement an administering authority and a Scheme employer must have regard to the extent to which the exercise of any of the functions mentioned in paragraph (1) in accordance with its policy could lead to a serious loss of confidence in the public service. .

(7) In this regulation—

(a) a relevant administering authority, in relation to a Scheme employer, is any authority which is an appropriate administering authority for that employer’s employees, and

(b) a relevant Scheme employer, in relation to an administering authority, is any Scheme employer for whose employees that authority is the appropriate administering authority.

Statements of policy concerning communications with members and employers [old 106B]

69.—(1) This regulation applies to the written statement prepared and published by an administering authority under regulation 106B of the 1997 Regulations(