The Local Government Pension Scheme (Amendment) Regulations 2003

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme Regulations 1997 (“the principal Regulations”) which constitute the Local Government Pension Scheme (“the Scheme”).

Regulation 2 takes effect from a date before the Regulations come into force. Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect. Regulation 2 amends the principal Regulations so as to take account of the new entitlements to paternity and adoption leave provided for by the Employment Act 2002 that came into force on 8th December 2002. Accordingly, the principal Regulations are amended with effect from that date as follows—

• Regulation 17(2) is amended so that members of the Scheme taking paternity or ordinary adoption leave who are in receipt of pay (including statutory paternity or adoption pay) will be obliged to make contributions to the Scheme on that pay.

• Regulation 17(3A) is amended so that members of the Scheme taking paternity or ordinary adoption leave who are not in receipt of pay will be treated during the paternity or ordinary adoption leave period as if they had paid contributions.

• Regulation 79(6) is amended so that Scheme employers will also have to make contributions to the pension fund on behalf of the member taking paternity or ordinary adoption leave as if they were not absent from work.

• Regulation 18(2) is amended so that those members of the Scheme taking additional adoption leave can opt whether or not to pay contributions during the additional leave period. Under the amended regulation 9(7), if they choose not to pay contributions, then the period of additional leave will not count for membership purposes, although the periods of employment before and after the additional leave will be treated as continuous.

• Regulation 21(6A) is amended so that in calculating final pay, a member’s pay for any period of paternity or adoption leave in respect of which contributions are paid or are treated as being paid will be treated as if the member had paid the contributions that would have been paid had he not been absent.

• Regulation 55(9) is amended so that where a member elects to make an additional contribution, a reduction in pay as a result of periods of paternity or adoption leave taken during the interval at the end of which the additional contribution falls to be paid, will be taken into account when assessing the amount of the additional contribution.

• Consequential amendments are also made to Schedule 1 to define ordinary adoption and paternity leave and period of paternity or adoption absence.

Regulation 3 substitutes the date “1st May 2003” for an incorrect reference to the principal Regulations made in paragraph 4 of Schedule 8 to the principal Regulations. Schedule 8 sets out modifications to the principal Regulations as they apply to members of the Scheme who are such by reason of being councillors of a local authority in England. Schedule 8 was added by the Local Government Pension Scheme and Discretionary Compensation (Local Authority Members in England) Regulations 2003.