The Local Government Superannuation Regulations 1986

PART Q INTERFUND ADJUSTMENTS

Interpretation

Q1.  For the purposes of this Part, unless the context otherwise requires—

“fund authority” means—

(a)

in relation to a person's previous local government employment, the body maintaining the superannuation fund to which he was a contributor immediately before he ceased to be employed in his previous local government employment, or, if that fund has been closed, the body which would be liable to pay him his pension in respect of that employment if he had been entitled to receive payment of such a pension when he ceased to be employed in his previous local government employment; and

(b)

in relation to a person's new local government employment, the body maintaining the superannuation fund to which he became a contributor in his new local government employment or, if that fund has been closed—

(i)

if when the fund was closed he was not employed in local government employment, the body which would be liable to pay him his pension in respect of his new local government employment if he had been entitled to receive payment of such a pension when he ceased to be employed in that employment; and

(ii)

in all other cases, the body maintaining the superannuation fund to which he became a contributor when the fund was closed;

“new local government employment” has the same meaning as in regulation Q2(1)(a) and “new employing authority” is to be construed accordingly;

“new fund authority” has the same meaning as in regulation Q2(1)(b);

“pension” does not include an allowance or gratuity;

“previous fund authority” has the same meaning as in regulation Q2(1)(b); and

“previous local government employment” has the same meaning as in regulation Q2(1)(a) and “previous employing authority” is to be construed accordingly.

Change of local government employment and fund authority

Q2.—(1) Where—

(a) a person who has ceased to be employed in a local government employment (“the previous local government employment”) subsequently becomes employed in some other local government employment ('the new local government employment"), and

(b) in his new local government employment the fund authority (“the new fund authority”) is different from the fund authority (“the previous fund authority”) in his previous local government employment, and

(c) in his new local government employment he is entitled to reckon any reckonable service which he was entitled to reckon in his previous local government employment, and

(d) no direction has been made at any time in relation to his reckonable service in his previous local government employment under regulation M1 (forfeiture of rights) or any corresponding provision of any earlier enactment,

the previous fund authority shall, subject to the following provisions of these regulations, pay out of their superannuation fund to the new fund authority for the credit of their superannuation fund a transfer value calculated in accordance with Part V of Schedule 16.

(2) Subject to paragraphs (3), (4) and (5), if the change of employment occurs as a result of an order or regulations made under the Local Government Act in accordance with section 255 of that Act or an order made under section 84 of the London Government Act 1963(1) and the number of persons changing superannuation funds is more than 9 but less than 100, the transfer values payable under paragraph (1) shall be calculated in accordance with Part I of Schedule 16.

(3) An adjustment shall be made to the total sum payable under paragraph (2) if the assets of the fund of the previous fund authority immediately before any change of employment occurs are not adequate, or are more than adequate, to meet the accrued actuarial liabilities of the fund at that time.

(4) The total shall be adjusted to the extent that the actuaries of the funds concerned consider appropriate in the circumstances.

(5) If any question arises as to the application of paragraphs (3) and (4) or the actuaries are unable to agree on the adjustment to be made, the adjustment (if any) to be made shall be decided by an actuary appointed by the Secretary of State.

(6) If the change of employment occurs as a result of an order or regulations made under the Local Government Act in accordance with section 255 of that Act or an order made under section 84 of the London Government Act 1963 and the number of persons changing superannuation funds is 100 or more—

(a) no payment shall be made under paragraph (1), and

(b) the superannuation fund of the previous fund authority shall be apportioned in accordance with Schedule 19.

(7) “Accrued actuarial liabilities” means the actual and potential liabilities of the fund in connection with any service or employment before the change of employment takes place.

Partial forfeitures

Q3.—(1) Where—

(a) a direction has been made in relation to any person under regulation M1 (forfeiture of rights) or any corresponding provision of any earlier enactment, and

(b) any right to benefit under these regulations is retained, and

(c) the conditions of regulation Q2(1) are satisfied with the exception of the conditions in sub-paragraph (d),

the previous fund authority shall pay out of their superannuation fund a transfer value to the new fund authority for the credit of their superannuation fund.

(2) The transfer value is to be an amount equal to the actuarial value of the remaining benefits.

Greater London Council housing staff transfers

Q4.—(1) The superannuation fund of the Greater London Council shall be apportioned in relation to persons transferred by or under the Greater London Council Housing (Staff Transfer and Protection) Order 1979(2) after 30th June 1985 who on 1st April 1986 are still employed by the authorities to which they were transferred.

(2) Schedule 19 shall apply to the apportionment subject to the following modifications—

(a) “new fund authority” means, in relation to a person transferred, the appropriate administering authority on 1st April 1986;

(b) “previous employing authority” means, in relation to a person transferred, the Greater London Council;

(c) “previous fund authority” means, in relation to a person transferred, the Greater London Council; and

(d) any liability of the Greater London Council under that Schedule shall be satisfied by a cash payment from their fund.

(3) Regulation Q2 shall not apply in relation to transfers to which this regulation applies.

(1)

1963 c.33.

(2)

S.I. 1979/1737.