The Local Government Superannuation (Limitation on Earnings and Reckonable Service) Regulations 1995

Explanatory Note

(This note is not part of these Regulations)

These Regulations amend the Local Government Superannuation Regulations 1986 (“the principal Regulations”), which regulate the Local Government Superannuation Scheme (“the Scheme”). The effect of these Regulations is to set out in the principal Regulations various provisions with which the Scheme already complies because the provisions reflect overriding legislation introduced by the Finance (No. 2) Act 1987 and the Finance Act 1989.

Regulation 2(b) refers to different categories of members depending upon whether the individual joined, or is deemed to have joined, the Scheme before 17th March 1987, on or after 17th March 1987 and before 1st June 1989, or on or after 1st June 1989. Regulation 7 makes a consequential amendment to Schedule 7 to the principal Regulations.

Regulation 3(d) amends the principal Regulations to clarify that the limit on employees' contributions under the Scheme, other than additional voluntary contributions, is linked to remuneration as defined in the principal Regulations and not to the employees' taxable earnings. Regulation 3(b) and (c) makes consequential amendments.

Regulation 4(a), (c), (e) and (f) limits the maximum reckonable service to 40 years for the purposes of the calculation of benefits for members who joined the Scheme after 1st June 1989. Regulations 2(a), 3(a) and 4(b)(i) make consequential amendments. Regulation 4(b)(ii) deals with added years of service.

Regulation 4(d) limits pensionable remuneration for the purpose of calculating the retiring allowance in the case of a person who joined the Scheme on or after 17th March 1987 and before 1st June 1989.

Regulation 5 adds definitions to Schedule 1 to the principal Regulations which are required in connection with the amendments made in regulations 2, 3 and 4.

Regulation 6 amends Schedule 6A to the principal Regulations to make it clear that the limit on contributions by employees in respect of additional voluntary contributions is different from that imposed in Part C of the principal Regulations in respect of employee contributions under the Scheme.

Regulation 8 makes consequential amendments to Schedule 15 to the principal Regulations which deals with modifications in special cases.