The Local Government Pension Scheme Regulations 2013 No. 2356

SCHEDULES

Regulation 2

SCHEDULE 1 E+W Interpretation

• “active member” means a person who is in an employment, and—

  (a)

  paying contributions to the Scheme,

  (b)

  treated as paying contributions to the Scheme, or

  (c)

  absent from that employment for one of the reasons mentioned in regulation 11;

• “actuarial guidance issued by the Secretary of State” means guidance identified by the Secretary of State as such which has been issued in accordance with regulation 2(3);

• “additional maternity or adoption leave” means leave under section 73 or 75B of the Employment Rights Act 1996 M1 ;

• “additional paternity leave” means leave under the Additional Paternity Leave Regulations 2010 M2 ;

• “additional pension” means pension under these Regulations other than earned pension;

• “administering authority” means a body listed in Part 1 of Schedule 3 which is required to hold a fund for the purposes of these Regulations;

• “admission agreement” means an agreement between an administering authority and an admission body that named individuals, or all or any specified class of the admission body's employees, may be members of the Scheme;

• “admission body” has the meaning given in paragraph 1 of Part 3 of Schedule 2;

• “amount of accrued pension” means the earned pension in a member's pension account adjusted to take account of any revaluation adjustment applicable;

• “amount of pension payable” means the earned and additional pension in a member's pension account adjusted to take account of any revaluation adjustment, index rate adjustment, commutation amount or pension account adjustment applicable;

• “annual allowance charge” has the meaning given to that expression by section 227 of the Finance Act 2004 M3 ;

• “assumed pensionable pay” has the meaning given by regulation 21;

• “automatic enrolment date” means the automatic enrolment date within the meaning of section 3 of the Pensions Act 2008 M4 ;

• “automatic re-enrolment date” means the automatic re-enrolment date chosen by a member's employer in accordance with section 5 of the Pensions Act 2008 M5 and regulation 12 of the Occupational and Personal Pensions Schemes (Automatic Enrolment) Regulations 2010 M6 for those of its eligible jobholders who are not active members (or the date the employer would have chosen if the employer does not have any such employees);

• “AVC” means a payment of additional voluntary contributions made under regulation 17;

• “base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

• “benefit crystallisation event” has the meaning given by section 216 of the Finance Act 2004 M7 ;

• “child-related leave” means—

  (a)

  ordinary adoption leave;

  (b)

  ordinary maternity leave;

  (c)

  additional maternity or adoption leave during which the member receives some pensionable pay;

  (d)

  paternity leave; or

  (e)

  additional paternity leave during which the member receives some pensionable pay.

• “children's pension” means a pension payable to an eligible child in accordance with regulation 42, 45 or 48;

• “commutation amount” means the amount of pension a member has elected to give up in return for a lump sum in accordance with regulation 33;

• “cohabiting partner” means a person whom the appropriate administering authority is satisfied fulfils the following conditions—

  (a)

  the person (P) has fulfilled the condition in paragraph (b) for a continuous period of at least 2 years on the date the member (M) died, and

  (b)

  the condition is that—

  (i)

  M is able to marry, or form a civil partnership with P,

  (ii)

  M and P are living together as if they were husband and wife or as if they were civil partners,

  (iii)

  neither M nor P is living with a third person as if they were husband and wife or as if they were civil partners, and

  (iv)

  either P is financially dependent on M, or M and P are financially interdependent;

• “deferred member” has the meaning given by regulation 6;

• “deferred payment enhancement” means the amount by which a member's entitlement is increased pursuant to regulation 30(4) or (11);

• “deferred pensioner member” has the meaning given by regulation 6;

• “dependent” in relation to a person means that in the opinion of the administering authority, at the date of the member's death—

  (a)

  the person was financially dependent on the member,

  (b)

  the person's financial relationship with the member was one of mutual dependence, or

  (c)

  the person was dependent on the member because of physical or mental impairment;

• “early payment reduction” means the amount by which a member's entitlement is reduced pursuant to regulation 30(5), (6) or (12);

• “earned pension” means pension accrued from the member's pensionable pay pursuant to regulation 23(4) or (5) or credited pursuant to regulation 101(1) (effect of acceptance of transfer value).

• “eligible child”, in relation to a deceased member, means—

  (a)

  a natural or adopted child of a member who meets any of conditions A to C and who was born before, on, or in the case of a natural child, within 12 months of the member's death; or

  (b)

  a step-child or child accepted by the deceased as a member of the family (excluding a child sponsored by the member through a registered charity) who—

  (i)

  meets any of conditions A to C; and

  (ii)

  was dependent on the member at the date of death.

• Condition A is that the person is aged under 18.

• Condition B is that the person is in full-time education or vocational training and has not reached the age of 23 (but an administering authority may continue to treat a person as fulfilling Condition B notwithstanding any break in a course of education or vocational training, although the person does not fulfil Condition B during such a break).

• Condition C is that the person is unable to engage in gainful employment because of physical or mental impairment and either—

  (i)

  has not reached the age of 23; or

  (ii)

  the impairment is in the opinion of an IRMP likely to be permanent and the person was dependent on the member at the date of the member's death because of that physical or mental impairment.

• “European pensions institution” has the same meaning as in section 293(8) of the Pensions Act 2004 M8

• “gainful employment” means paid employment for not less than 30 hours in each week for a period of not less than 12 months;

• [F1 “Housing Ombudsman” means an individual appointed as housing ombudsman by the Secretary of State under Schedule 2 to the Housing Act 1996; and

• “Housing Ombudsman Service” means a scheme for the investigation of complaints approved by the Secretary of State under that Act.]

• “index rate adjustment” means the percentage increase that would apply if the balance in the member's account were a pension in payment eligible for increase under the Pensions (Increase) Act 1971 M9 ;

• “IRMP” means an independent registered medical practitioner who is registered with the General Medical Council and—

  (a)

  holds a diploma in occupational health medicine (D Occ Med) or an equivalent qualification issued by a competent authority in an EEA state; and for the purposes of this definition, “competent authority” has the meaning given by section 55(1) of the Medical Act 1983 M10 ; or

  (b)

  is an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equivalent institution of an EEA state;

• “joint liability amount” has the meaning given to that expression by section 237B(3) of the Finance Act 2004 M11 ;

• “local government service” means an employment by virtue of which the person employed is or has been a member of the Scheme;

• “membership” is to be construed in accordance with section 124(1) of the Pensions Act 1995 M12

• “normal pension age” means the pensionable age of a person as specified from time to time in Schedule 4 to the Pensions Act 1995 M13 , or if higher, age 65.

• “occupational pension scheme” has the meaning given by section 1 of the Pensions Schemes Act 1993 M14 ;

• “ordinary adoption leave” means leave under section 75A of the Employment Rights Act 1996 M15 ;

• “ordinary maternity leave” means leave under section 71 of the Employment Rights Act 1996;

• “partner” in relation to an active member means a spouse, civil partner or cohabiting partner;

• “paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002 M16 ;

• “payment period” means a period of service to which an employee's wages or salary payments relate;

• “pensionable age” has the meaning given in section 181 of the Pension Schemes Act 1993;

• “pensionable pay” has the meaning given by regulation 20 but if the circumstances specified in regulation 21(2) apply, references in these Regulations to a member's pensionable pay are references to that member's assumed pensionable pay;

• “pension account” means an account of the description in regulation 22.

• “pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 M17 ;

• “pension credit member” has the meaning given by regulation 8(1);

• “pension debit” means a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999;

• “pensioner member” has the meaning given by regulation 7(1);

• “pensions board” means a board or committee established by an administering authority to discharge functions under regulation 53(4);

• “pension sharing order” means any provision or order specified in section 28 of the Welfare Reform and Pensions Act 1999;

• “Pensions Regulator” means the body corporate established under section 1 of the Pensions Act 2004 M18

• “permanently incapable” means that the member will, more likely than not, be incapable until at the earliest, the member's normal pension age;

• “public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993 M19 ;

• “qualifying recognised overseas pension scheme” has the meaning given by section 169(2) of the Finance Act 2004 M20 ;

• “qualifying service for a period of two years” has the meaning given by regulation 3(7);

• “reference banks” means the seven largest persons for the time being who—

  (a)

  have permission under Part 4A of the Financial Services and Markets Act 2000 M21 to accept deposits;

  (b)

  are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and

  (c)

  quote a base rate in sterling,

  and for the purposes of this definition, the size of the person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006 M22 ), as shown in the audited end-of-year accounts last published before that time;

• “registered pension scheme” has the same meaning as in section 150(2) of the Finance Act 2004 M23 ;

• “reserve forces pay” means the total of—

  (a)

  pay for performing relevant reserve forces service (including marriage, family and similar allowances), and

  (b)

  any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 M24 ;

• “reserve forces service leave” means absence from duty because of being called out or recalled for permanent service in Her Majesty's armed forces pursuant to a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996 M25 ;

• “retirement pension” includes earned pension and additional pension;

• “revaluation adjustment” means the percentage specified in the relevant Treasury order made under section 9(2) of the Public Service Pensions Act 2013 M26 which is to be applied to the sum in a pension account at the beginning of the next scheme year;

• “the Scheme” means the scheme established by these Regulations;

• “Scheme employer” means a body listed in Schedule 2 employing an employee who is eligible to be a member and includes an admission body;

• “Scheme employer's consent” includes the consent of the appropriate administering authority in circumstances where the member's former employer is no longer a Scheme employer;

• “Scheme employment” means an employment by virtue of which a person is entitled to be a member of this Scheme;

• “Scheme pays election” means a member giving the administering authority notice of joint and several liability under section 237B of the Finance Act 2004 M27 in respect of the member's annual allowance charge;

• “Scheme year” means a period of one year beginning with 1st April and ending with 31st March;

• “statutory pay” means any statutory maternity, paternity or adoption pay payable under the Social Security Contributions and Benefits Act 1992 M28 ;

• “survivor member” means a person entitled to a survivor pension or a children's pension;

• “survivor pension” means a pension payable under regulations 41, 42, 44, 45, 47 or 48;

• “SVAVC” means an arrangement established under regulation 17 to which both the Scheme employer and the active member contribute;

• “Tier 1 benefits” has the meaning given by regulation 35(5) calculated in accordance with regulation 39;

• “Tier 2 benefits” has the meaning given by regulation 35(6) calculated in accordance with regulation 39;

• “Tier 3 benefits” has the meaning given by regulation 35(7) calculated in accordance with regulation 39;

• “trade dispute” has the meaning given in section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992 M29 ;

• “transferred in benefit” means a benefit in a member's pension account deriving from a transfer value payment;

• “transfer value payment” means a payment made from the Scheme to another registered pension scheme or qualifying recognised overseas pension scheme, or a payment received by the Scheme from a registered pension scheme or from a European pensions institution.

Textual Amendments

F1 Words in Sch. 1 inserted (10.2.2014) by The Local Government Pension Scheme (Miscellaneous Amendments) Regulations 2014 (S.I. 2014/44), regs. 1(3), 9

Marginal Citations

M1 1996 c. 18; section 73 was substituted by the Employment Relations Act 1999; section 75B was inserted by the Employment Act 2002.

M2 S.I. 2010/1055

M3 2004 c. 12; section 227 has been amended by the Finance Act 2009 and the Finance Act 2011.

M4 2008 c. 30; section 3 was substituted by the Pensions Act 2011 and there have been further amendments which are not relevant to this instrument.

M5 Section 5 was substituted by the Pensions Act 2011 and there have been further amendments which are not relevant to this instrument.

M6 S.I. 2010/772.

M7 2004 c. 12; section 216 has been amended by the Finance Acts 2005, 2006, 2008 and 2011.

M8 2004 c. 35; section 293(8) was amended by S.I. 2007/3014.

M9 1971 c. 56.

M10 1983 c. 54; the definition of “competent authority” was inserted by S.I. 2007/3101.

M11 2004 c.12; section 237B was inserted by the Finance Act 2011.

M12 1995 c. 26.

M13 1995 c. 26.

M14 1993 c. 48; the definition of “occupational pension scheme was substituted by the Pensions Act 2004 and was amended by S.I. 2007/3014.

M15 1996 c. 18; section 75A was inserted by the Employment Act 2002 and was amended by the Work and Families Act 2006.

M16 S.I. 2002/2788.

M17 1999 c. 30.

M18 2004 c. 35.

M19 1993 c. 48; section 1 has amendments which are not relevant to this instrument.

M20 2004 c. 12.

M21 2000 c. 8; Part 4A was inserted by the Financial Services Act 2012.

M22 2006 c. 46.

M23 2004 c. 12.

M24 1951 c. 65.

M25 1996 c. 14.

M26 2013 c. 25.

M27 2004 c. 12. Section 237B was inserted by the Finance Act 2011.

M28 1992 c. 4.

M29 1992 c.52.