The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014

Interfund adjustments etc.

10.—(1) Paragraph (2) applies to a member in a fund—

(a) who became an active member of the 2014 Scheme by virtue of regulation 5(1) of these Regulations (membership of the 2014 Scheme),

(b) who subsequently became a deferred member or deferred refund member of the 2014 Scheme,

(c) who becomes again an active member of the 2014 Scheme with no continuous break in active membership of any public service pension scheme of more than five years, and

(d) where the deferred benefits or deferred refund benefits pursuant to sub-paragraph (b) are aggregated with the benefits accruing pursuant to sub-paragraph (c).

(2) A member falling within the description in paragraph (1) is entitled, notwithstanding the revocations effected by regulation 2 (revocation of regulations)—

(a) to have the pension rights accrued in respect of service before 1st April 2014 preserved by regulation 3 of these Regulations (membership before 1st April 2014) calculated as final salary benefits with final pay calculated under regulations 8 to 11 of the Benefits Regulations (calculation of final pay) as if they were still in force; and

(b) where the new period of active membership under paragraph (1)(c) is in a different fund, to have a payment made by the first administering authority to the subsequent administering authority in respect of those pension rights, calculated in accordance with actuarial guidance issued by the Secretary of State.

(3) Paragraph (4) applies to a member in a fund—

(a) who became an active member of the 2014 Scheme by virtue of regulation 5(1) of these Regulations (membership of the 2014 Scheme),

(b) who subsequently became a deferred member of the 2014 Scheme,

(c) who becomes again an active member of the 2014 Scheme with a continuous break in active membership of any public service pension scheme of more than five years, and

(d) where the deferred benefits pursuant to paragraph (3)(b) are aggregated with the benefits accruing pursuant to paragraph (3)(c).

(4) A member falling within the description in paragraph (3) is entitled to a transfer value payment in relation to the deferred benefits to be credited to the member’s active member account to purchase earned pension, with the transfer value payment and the amount of purchased earned pension being calculated in accordance with actuarial guidance issued by the Secretary of State and, where the new period of active membership under paragraph (3)(c) is in a different fund, the administering authority within whose fund the deferred benefits are held must make the transfer value payment to the administering authority within whose fund the benefits which are being aggregated are held.

(5) A member entitled to a refund of contributions from the Earlier Schemes, who becomes an active member of the 2014 Scheme, is entitled to a transfer value payment in relation to the benefits in respect of that membership, which is to be credited to the member’s active member account to purchase earned pension, with the transfer value payment and the amount of purchased earned pension being calculated in accordance with actuarial guidance issued by the Secretary of State and, where the new period of active membership is in a different fund, the authority which has ceased to be the member’s appropriate administering authority must make the transfer value payment to the authority that has become the member’s appropriate administering authority.

(6) A member with deferred benefits relating to the Earlier Schemes, who did not become a member of the 2014 Scheme by virtue of regulation 5(1) of these Regulations (membership of the 2014 Scheme), but who subsequently becomes an active member of the 2014 Scheme, may elect to receive a transfer value payment in relation to the deferred benefits to be credited to the member’s active member account to purchase earned pension, with the transfer value payment and the amount of purchased earned pension being calculated in accordance with actuarial guidance issued by the Secretary of State, and where the new period of active membership is in a different fund, the authority which has ceased to be the member’s appropriate administering authority must make the transfer value payment to the authority that has become the member’s appropriate administering authority.

(7) Where earned pension is purchased by a transfer value payment under paragraphs (4) to (6), regulation 3(1)(a) of these Regulations (membership before 1st April 2014) ceases to apply to the membership to which that transfer value payment relates.

(8) Where deferred benefits or a deferred refund under paragraph (1) arise from the cessation of a concurrent employment and the member continues as an active member in a continuing employment in which the member became an active member by virtue of regulation 5(1) of these Regulations (membership of the 2014 Scheme), the formula in regulation 17(3) (concurrent employments) or, as the case may be, regulation 46(4) (rights to return of contributions) of the Administration Regulations must be applied in order to determine the rights the member is entitled to for the purposes of paragraph (2).

(9) Where there is more than one continuing employment to which paragraph (8) applies, the member may, within 12 months of the date active membership in the concurrent employment ceased, make an election to the appropriate administering authority specifying which of the continuing employments the rights from the concurrent employment that has ceased are to be aggregated and, in the absence of an election from the member, the administering authority must make the determination on the member’s behalf.

(10) Where the deferred benefits or deferred refund under paragraph (1) arise from the cessation of variable-time employment and the new active membership is not variable-time employment, the formula in regulation 87(2) (changes of fund and variable-time employees) of the Administration Regulations must be applied in order to determine the rights to which the member is entitled for the purposes of paragraph (2).