2002 No. 206
PENSIONS, ENGLAND AND WALES

The Local Government Pension Scheme (Amendment) Regulations 2002

Made
Laid before Parliament
Coming into force
The Secretary of State, in exercise of the powers conferred on him by sections 7 and 12 of the Superannuation Act 19721 and of all other powers enabling him in that behalf, after consultation with such associations of local authorities as appeared to him to be concerned, the local authorities with whom consultation appeared to him to be desirable and such representatives of other persons likely to be affected by the Regulations as appeared to him to be appropriate, hereby makes the following Regulations:

Citation and commencement1.

(1)

These Regulations may be cited as the Local Government Pension Scheme (Amendment) Regulations 2002.

(2)

These Regulations shall come into force on 6th March 2002 but—

(a)

regulation 9 shall take effect from 1st April 1998;

(b)

regulation 12 shall take effect from 1st April 2001; and

(c)

regulation 7 shall take effect from 2nd April 2001.

Amendment of Regulations2.

The Local Government Pension Scheme Regulations 19972 shall be amended in accordance with regulations 3 to 12 of these Regulations.

Agreements to enable employees of non-Scheme employers to be members (“admission agreements”)3.

In regulation 5(17) (j)3—

(a)

after “which is a Scheme employer” insert “or an admission body”; and

(b)

in sub-paragraph (iii) after “best value arrangement” insert “and, in the case of an admission body, is approved by the Secretary of State for the purpose of entering into an admission agreement with a transferee admission body”.

Meaning of “pay”4.

In regulation 13(2)4, omit “or”at the end of sub-paragraph (f) and after sub-paragraph (g) add—

  • “; or

    1. (a)

      a payment made in consequence of a School Achievement Award under the scheme established by the Secretary of State known as the School Achievement Award Scheme”.

Amounts of ill-health pension and grant5.

In regulation 285—

(a)

in paragraph (5)—

(i)

after the words “the resulting period” insert “by multiplying it”; and

(ii)

for “but see paragraph (8)” substitute “but see paragraphs (5A) and (8)”; and

(b)

after paragraph (5), insert the following paragraph—

“(5A)

The member’s enhanced membership period must not be reduced below that which is calculated by reference to his membership in whole-time employment, disregarding his membership in part-time employment.”.

Reduction of death grants: re-employed pensioners6.

Omit regulation 39.

Commencement of pensions7.

In regulation 93(2), in sub-paragraph (a) omit “and” and insert after that sub-paragraph the following sub-paragraph—

“(aa)

in a case where he elects under paragraph (7) of that regulation6 for an earlier date than his NRD, with that date, and”.

Inward transfers of pension rights8.

In regulation 121(2)7—

(a)

insert “or” at the end of sub-paragraph (c); and

(b)

at the end of sub-paragraph (d) omit “, or” and the whole of sub-paragraph (e).

Rights as to service not matched by credited period9.

In regulation 123(2)(b) for “regulation 25(4)” substitute “regulation 25(3A)”8.

Schedule 2: Scheme Employers10.

In Schedule 29, add at the end—
  • “A body set up by a local authority, in exercise of powers under section 2 of the Local Government Act 200010 as a housing management company to exercise management functions as agent of the local authority under an arrangement approved by the Secretary of State under section 27 of the Housing Act 198511.”.

Schedule 3: Excluded membership11.

In Schedule 3, in the Table12—

(a)

in paragraph 1, column 2 omit “regulation 6(3) and (5) or”; and

(b)

omit paragraph 2, columns 1 and 2.

Schedule 5: Appropriate funds12.

In Schedule 5, in the second column of paragraph 9 of the Table in Part II13 for “Swansea County Council” substitute “Rhondda, Cynon, Taff County Borough Council”.

Signed by authority of the Secretary of State for Transport, Local Government and the Regions

Alan Whitehead
Parliamentary Under Secretary of State,
Department for Transport, Local Government and the Regions
(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme Regulations 1997 (“the principal Regulations”) which comprise the Local Government Pension Scheme (“the Scheme”). Some of the regulations take effect on various dates before the Regulations come into force (as set out in regulation 1(2)). Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect.

Regulation 3 extends the provisions of regulation 5 of the principal Regulations (agreements to enable employees of non-Scheme employers to be members) to allow admission agreement bodies approved by the Secretary of State to enter into admission agreements where they contract out the performance of a function.

Regulation 4 adds a payment made under a School Achievements Award Scheme to the list of payments in regulation 13(2) of the principal Regulations (meaning of “pay”) which are excluded from an employee’s pensionable pay.

Regulation 5 amends regulation 28 of the principal Regulations (amounts of ill-health pension and grant). It makes minor drafting amendments to paragraph (5) and adds a new paragraph to limit the reduction required to be made to the enhanced membership period of a member who becomes entitled to ill-health benefits and has membership in part-time employment.

Regulation 6 omits from the principal Regulations regulation 39 (reduction of death grants: re-employed pensioners).

Regulations 7, 9 and 11 make consequential amendments required as a result of other amendments to the principal Regulations.

Regulation 8 amends regulation 121 (inward transfer of pension rights) to exclude rights under a non-Scheme additional voluntary contributions scheme from the list of relevant pension rights which may count as membership in the Scheme. Those rights are dealt with in regulation 60 (as previously amended) (election to pay AVCs).

Regulation 10 adds housing management companies set up by local authorities to the list of Scheme employers in Schedule 2.

Regulation 12 substitutes the fund administered by Rhondda, Cynon, Taff County Borough Council as the appropriate fund for employees of the National Probation Service local board for the South Wales area in the place of the fund administered by Swansea County Council.