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The Local Government Pension Scheme Regulations 1995

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Change of local government employment and fund authority: “interfund adjustments”

K20.—(1) Subject to regulation K22, this regulation applies where—

(a)a person who has ceased to be employed in a local government employment (“the previous employment”) subsequently becomes employed in another local government employment (“the new employment”),

(b)the body maintaining the pension fund to which he became a contributor in the new employment (“the new fund authority”) is different from the body maintaining the pension fund to which he was a contributor immediately before he ceased to be employed in his previous employment (“the previous fund authority”),

(c)he is a member of the Scheme in his new employment and is entitled to count in relation to that employment any period of membership which he was entitled to count in his previous employment.

(2) Where this regulation applies the previous fund authority shall, subject to the following provisions of these regulations, pay out of their pension fund to the new fund authority for the credit of their pension fund a sum (“the interfund adjustment”) of an amount calculated in accordance with regulation K21.

(3) Where the pension fund referred to in paragraph (1)(b) has been closed, references in this regulation and in regulations K21 and K22 to the body maintaining that fund shall be taken—

(a)in the case of the previous fund authority, as references to the body which would be liable to pay the person’s pension in respect of the previous employment if it had been payable when the employment ceased; and

(b)in the case of the new fund authority—

(i)if when the fund was closed the person was not employed in local government employment, as references to the body which would be liable to pay his pension in respect of the new employment if he had been payable when the employment ceased; and

(ii)otherwise, as references to the body maintaining the pension fund to which he became a contributor when the fund was closed.

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