The Local Government Superannuation Regulations 1986

PART I

1.  The transfer value payable under regulation 12, 13(1), 114 or G2(2) in respect of any person is an amount equal to—

(1) the aggregate of the sums calculated in accordance with paragraph 2 below in respect of his accrued pension, accrued retiring allowance and, if the person is a man, his accrued widow's pension, less—

(a) a sum (calculated in accordance with paragraph 2 below) in respect of accrued modification, and

(b) any additional contributory payments remaining unpaid when he ceased to be employed in his local government employment, and

(c) in the case of a person who is entitled or prospectively entitled to a guaranteed minimum pension under these regulations when he ceases to be employed in his local government employment and who has made a request under regulation 12, a sum (calculated in accordance with paragraph 2 below) in respect of the pensions increase liability on his guaranteed minimum pension, and

(d) in the case of a person in relation to whom, when he ceases to be employed in local government employment—

(i) a contributions equivalent premium is paid under section 42 of the Pensions Act, or

(ii) a limited revaluation premium is paid under section 45 of that Act otherwise than by the scheme managers of his approved non-local government scheme,

a sum equal to the amount of the premium or premiums,

together with—

(2) compound interest calculated in accordance with regulation J7 in respect of the period beginning immediately after the date on which the person ceased to be employed in his local government employment and ending with the date on which the transfer value is paid (but no interest is to be included in the transfer value if that period is less than 6 months).

2.—(1) The sums in respect of accrued pension, accrued retiring allowance and accrued modification shall be calculated by muliplying the accrued pension by the pension factor, the accrued retiring allowance by the retiring allowance factor and the accrued modification by the modification factor, such factors being the factors, in the appropriate table in Part II of this Schedule where regulation J14 or Q2(2) applies and Part III of this Schedule where regulation J2 or J3(1) applies, which are applicable to the person's age when he ceased to be employed in his local government employment.

(2) The sum in respect of accrued widow's pension shall be calculated by multiplying the accrued widow's pension by 2.4 where regulation J14 or Q2(2) applies and by 4 where regulation J2 or J3(1) applies.

(3) The sum in respect of the pensions increase liability on a person's guaranteed minimum pension shall be calculated by multiplying the annual equivalent of his guaranteed minimum in relation to his retirement pension in connection with his local government employment by the pensions increase liability factor in the appropriate table in Part IV of this Schedule which is applicable in relation to his age when he ceased to be employed in local government employment.

(4) The guaranteed minimum shall be calculated in accordance with section 35 of the Pensions Act (except that subsections (7) and (8) shall be ignored) by reference to the regulations applying in relation to that section, and the orders in force under section 21 of that Act, when the person ceased to be employed in his local government employment, and the annual equivalent of his guaranteed minimum shall be calculated by multiplying the guaranteed minimum by 52.18.

3.  In this Schedule—

“accrued pension” means the annual retirement pension (however named) to which, having regard to regulations E1(3) and E31(2) and apart from any reduction falling to be made to that pension in connection with a retirement pension under section 28 of the Social Security Act 1975 or corresponding provisions of earlier legislation or graduated retirement benefit under section 36 of the Insurance Act or corresponding provisions of earlier legislation, the person would have become entitled if, on the date when he ceased to be employed in his local government employment—

(1)

he had reached the age of 65; and

(2)

(a)

where the person ceased to be employed in that employment before 31st March 1972, he had completed a sufficient period of service to qualify for the pension and, notwithstanding anything in any enactment—

(i)

if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that pension his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits regulations, and

(ii)

as entitlement to that pension had been calculated by reference to completed years and completed days;

(b)

where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service (or, if he was subject to a local Act scheme, 5 years' service which would have been taken into account under that scheme for the purpose of determining whether he was entitled to benefit); and

(3)

he had completed the payment of any additional contributory payments;

“accrued retiring allowance” means the lump sum retiring allowance (however named) to which the person would have become entitled if, on the date when he ceased to be employed in his local government employment—

(1)

he had reached the age of 65; and

(2)

(a)

where the person ceased to be employed in that employment before 31st March 1972, he had completed a sufficient period of service to qualify for the allowance and, notwithstanding anything in any enactment—

(i)

if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that allowance his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits regulations, and

(ii)

his entitlement to that allowance had been calculated by reference to completed years and completed days;

(b)

where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service (or, if he was subject to a local Act scheme, 5 years' service which would have been taken into account under that scheme for the purpose of determining whether he was entitled to benefit); and

(3)

he had completed the payment of any additional contributory payments; and

(4)

if the person is a man, he had been married and he and his wife had not been judicially separated;

"accrued widow's pension" means the annual widow's long-term pension (however named) which, after any initial period during which it might not have been payable, would have been payable in respect of the person if, on the date when he ceased to be employed in his local government employment—

(1)

he had been married and he and his wife had not been judicially separated; and

(2)

by virtue of his having reached the age of 65, he had been in receipt of a pension equivalent to his accrued pension; and

(3)

he had died;

“accrued modification” means the amount by which the accrued pension would be reduced in connection with the retirement pension under section 28 of the Social Security Act 1975 or corresponding provisions of earlier legislation and graduated retirement benefit under section 36 of the Insurance Act or corresponding provisions of earlier legislation.