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

Statutory underpin

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

(a) was an active member of the 2008 Scheme on 31st March 2012 and who on 1st April 2012 was 10 years or less from the normal retirement age applicable to the member under the 2008 Scheme;

(b) was an active member immediately before the underpin date and who receives payment of benefits under the 2014 Scheme on or after the underpin date;

(c) does not have a disqualifying break in service; and

(d) has not, prior to the underpin date, drawn benefits under the 2013 Regulations in relation to an employment.

(2) The underpin date for the purposes of this regulation is the earlier of—

(a) the date the member attained the normal retirement age applicable to the member under the 2008 Scheme; or

(b) the date the member ceased to be an active member of the 2014 Scheme with an immediate entitlement to a pension, including a member who may elect to receive immediate payment of a pension under regulation 30(5) of the 2013 Regulations (early retirement) and a member who, with the Scheme employer’s consent, elects to receive immediate payment under regulation 30(6) of the 2013 Regulations (flexible retirement).

(3) A disqualifying break in service for the purposes of paragraph 1(c) is a continuous break after 31st March 2012 of more than five years in active membership of a public service pension scheme.

(4) The active member’s pension account is to be increased at the underpin date by the amount by which the underpin amount exceeds the assumed benefits on the underpin date.

(5) The assumed benefits are calculated by assessing the benefits the member would have been entitled to under the 2014 Scheme if—

(a) the member had paid contributions under regulation 9 of the 2013 Regulations (contributions) from 1st April 2014 to the underpin date but excluding—

(i) any period when the member was not an active member,

(ii) any period of absence from work with no pensionable pay in consequence of a trade dispute which the member has not covered by additional pension under regulation 16 of the 2013 Regulations (additional pension), and

(iii) any period of absence from work with permission with no pensionable pay otherwise than because of illness or injury, child-related leave or reserve forces service leave which the member has not covered by additional pension under regulation 16 of the 2013 Regulations (additional pension);

(b) the member had in the period between 1st April 2014 and the underpin date paid no additional contributions under—

(i) regulation 16 (additional pension contributions) of the 2013 Regulations, other than additional contributions paid under that regulation to cover a period of absence from work with no pensionable pay in consequence of a trade dispute or to cover a period of absence from work with permission with no pensionable pay otherwise than because of illness or injury, child-related leave or reserve forces service leave, or

(ii) regulation 17 (additional voluntary contributions) of the 2013 Regulations;

(c) the member had not been awarded additional annual pension under regulation 31 of the 2013 Regulations (award of additional pension) during that period;

(d) the Scheme had received no transfer value payment in respect of the member relating to rights accrued under a registered pension scheme or a European pensions institution;

(e) the revaluation adjustment(1) made to the active member’s pension account had been made up to and including the beginning of the scheme year in which the member’s underpin date fell; and

(f) the balance in the active member’s account at the member’s underpin date had been adjusted on account of any pension debit or Scheme pays election applicable to the member, with the adjustment being calculated in accordance with actuarial guidance issued by the Secretary of State.

(6) The underpin amount is calculated by assessing the benefits the member would have had an immediate entitlement to payment of under the 2008 Scheme if—

(a) the member had continued to accrue membership under the 2008 Scheme rather than benefits in the 2014 Scheme from 1st April 2014 to the underpin date;

(b) the period of membership taken into account for the purposes of sub-paragraph (a) were—

(i) the period during which the member has paid, or is treated as having paid, contributions under regulations 9 or 10 of the 2013 Regulations, plus

(ii) any period of unpaid absence due to industrial action, or absence from work with permission otherwise than because of illness or injury, child related leave or reserve forces service leave, if that period was covered by additional pension purchased under regulation 16 of the 2013 Regulations (additional contributions), plus

(iii) where the member’s assumed benefits include an adjustment under regulation 39 of the 2013 Regulations (calculation of ill health pension amounts), any additional period of membership that would have been added to the member’s total membership under regulation 20 of the Benefits Regulations (early leavers: ill-health) had that regulation applied at the underpin date;

(c) the final pay was calculated in accordance with regulations 8 to 11 of the Benefits Regulations (calculation of final pay), as if those Regulations were still in force at the underpin date; and

(d) the member’s benefits at the member’s underpin date had been adjusted on account of any pension debit or a Scheme pays election applicable to the member, with the adjustment being calculated in accordance with actuarial guidance issued by the Secretary of State.

(1)

Revaluation adjustment is defined in Schedule 1 to the 2013 Regulations.