The Local Government Pension Scheme (Administration) Regulations 2008

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Regulation 2

SCHEDULE 1INTERPRETATION

“the 1986 Regulations” means the Local Government Superannuation Regulations 1986(1);

“the 1995 Regulations” means the Local Government Pension Scheme Regulations 1995(2);

“the 1997 Regulations” means the Local Government Pension Scheme Regulations 1997(3);

“the Benefits Regulations” means the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007(4);

“the Earlier Regulations” means all or any of the Local Government Superannuation Regulations 1974(5), the 1986 Regulations, the 1995 Regulations, the 1997 Regulations or the Local Government Pension Scheme (Transitional Provisions) Regulations 1997(6) as appropriate;

“the Former Regulations” means—

(a)

those of the enactments and instruments referred to in paragraph 5(1) of Schedule 7 to the Superannuation Act 1972(7) and applying in relation to England and Wales that were in force immediately before 1st April 1974;

(b)

the Local Government Superannuation (Miscellaneous Provisions) Regulations 1973(8); and

(c)

the Local Government Superannuation (Miscellaneous Provisions) (No.2) Regulations 1973(9);

“the Transitional Regulations” means the Local Government Pension Scheme (Transitional Provisions) Regulations 2008(10);

“Active member” has the same meaning as in section 124(1) of the Pensions Act 1995(11);

“Actuary” means a Fellow of the Institute of Actuaries or of the Faculty of Actuaries;

“Administering authority” means a body required to maintain a pension fund under these Regulations and “appropriate administering authority” means the body maintaining the appropriate fund;

“Admission agreement”, in relation to an admission body, means an agreement that all, or any designated class, of the body’s employees may be members;

“Admission body” means a body mentioned in regulation 5(2) or 6(2);

“Appropriate fund”, in relation to a member, has the meaning given by regulation 30;

“Appropriate policy” means a policy of insurance or an annuity contract which provides an annuity which satisfies requirements prescribed under section 95(2)(c) of the Pension Schemes Act 1993(12);

“ARCs” means additional regular contributions as referred to in regulation 23;

“Assisted”, in relation to an educational institution, has the same meaning as in the Education Act 1996(13);

“AVCs” means additional voluntary contributions as referred to in regulation 25;

“Base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“CIPFA” means the Chartered Institute of Public Finance and Accountancy;

“The commencement date” means 1st April 2008;

“Deferred member” has the same meaning as in section 124(1) of the Pensions Act 1995, except as provided in regulation 16;

“Employing authority” means a body employing an employee who is eligible to be a member;

“Guaranteed minimum” means the guaranteed minimum as defined in sections 14 and 17 of the Pension Schemes Act 1993 (minimum pensions for earners, widows, widowers and surviving civil partners)(14), so far as it is attributable to earnings factors for the tax year 1988-89 or for subsequent tax years, increased in accordance with the requirements of section 109 of that Act (annual increase of guaranteed minimum pensions) and in this definition “earnings factors” means the earnings factors referred to in section 14 of that Act and “tax year” means the 12 months beginning with 6th April in any year;

“Local Act scheme” has the meaning given by section 8 of the Superannuation Act 1972, except that where it refers to any time before 25th March 1972 it has the same meaning as in the Local Government Superannuation Act 1937(15);

“Local authority” has the same meaning as in the Local Government Act 1972(16);

“Local education authority” has the same meaning as in the Education Act 1996(17);

“Local government employment” means employment by virtue of which the person employed is or has been a member;

“Maintained”, in relation to an educational institution, has the same meaning as in section 20 of the School Standards and Framework Act 1998(18);

“Member” has the same meaning as in section 124(1) of the Pensions Act 1995 but, except in regulation 68, does not include a pension credit member;

“Normal retirement age” is 65;

“Occupational pension scheme” has the meaning given by section 150(5) of the Finance Act 2004(19);

“Part-time employee” means an employee—

(a)

whose contract of employment provides that he is such an employee for the Scheme; or

(b)

who is neither a whole-time employee nor a variable-time employee;

“Passenger transport authority” means a metropolitan county passenger transport authority established by section 28 of the Local Government Act 1985(20);

“Passenger transport executive” means the Executive for a designated area within section 9(1) of the Transport Act 1968(21);

“Pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999(22) or corresponding Northern Ireland legislation;

“Pension credit benefits” means benefits payable under the Scheme to or in respect of a pension credit member by virtue of rights under the Scheme attributable to a pension credit;

“Pension credit member” means a person who has pension credit rights or benefits under the Scheme;

“Pension credit rights” means rights to future benefits under the Scheme which are attributable to a pension credit;

“Pensionable pay” has the meaning given by regulation 4 of the Benefits Regulations;

“Pensioner member” has the same meaning as in section 124(1) of the Pensions Act 1995;

“Prospective member” means a person who under his contract of service or these Regulations—

(a)

may, if he wishes or his employer consents, become a member;

(b)

will be able to do so if he continues long enough in the same employment; or

(c)

will become a member unless he chooses not to do so;

“Reference banks” means the seven largest persons for the time being who—

(a)

have permission under Part 4 of the Financial Services and Markets Act 2000(23) to accept deposits;

(b)

are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and

(c)

quote a base rate in sterling;

and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006(24)), as shown in the audited end-of-year accounts last published before that time;

“Registered scheme” means a pension scheme registered by the Commissioners for Her Majesty’s Revenue and Customs under Part 4 of the Finance Act 2004(25);

“SCAVCs” means shared cost additional voluntary contributions as referred to in regulation 25;

“The Scheme” means the occupational pension scheme constituted by these Regulations, the Benefits Regulations and the Transitional Regulations;

“Scheme employer” means a body listed in Schedule 2 (but see regulations 7(6) and 8);

“Scheme function” means any function under the regulations which constitute the Scheme;

“Teachers’ scheme” means an occupational pension scheme made under section 9 of the Superannuation Act 1972 (superannuation of teachers);

“Total membership” means the aggregate of periods of membership which count as such under regulation 6 of the Benefits Regulations;

“Variable-time employee” means an employee whose contract of employment provides that he is such an employee for the Scheme and—

(a)

whose pay is calculated by reference to his duties (rather than necessarily by reference to the number of hours he has worked); or

(b)

whose duties only have to be performed on an occasional basis;

“Whole-time employee” means an employee whose contract of employment provides—

(a)

that he is such an employee for the Scheme; or

(b)

that his contractual hours are not less than the number of contractual hours for a person employed in that employment on a whole-time basis.

Regulation 4(2) and (3)

SCHEDULE 2SCHEME EMPLOYERS

PART 1

1. The Commission for Local Administration in England.

2. In England, a county council, a district council, a London borough council or the Common Council of the City of London.

3. In Wales, a county council or a county borough council.

4. A joint board, body or committee appointed under any Act or statutory order or statutory scheme, of which all the constituent authorities are councils of a description in paragraph 2 or 3 or a combination of such councils.

5. A fire and rescue authority within the meaning of the Fire and Rescue Services Act 2004(26).

6. A police authority within the meaning of the Police Act 1996(27).

7. A probation trust established under section 5 of the Offender Management Act 2007(28).) or a National Probation Service local board

8. The Chichester Harbour Conservancy.

9. The Lee Valley Regional Park Authority.

10. A passenger transport authority.

11. The Broads Authority.

12. A further education corporation.

13. A higher education corporation.

14. The London Pensions Fund Authority.

15. The South Yorkshire Pensions Authority.

16. The Environment Agency.

17. A National Park Authority established under Part 3 of the Environment Act 1995(29).

18. An Education Action Forum within the meaning of section 11 of the School Standards and Framework Act 1998(30).

19. The National College for School Leadership.

20. The Standards Board for England.

21. An Academy within the meaning of section 482 of the Education Act 1996(31) or by virtue of section 67 of the Education Act 2002 (conversion of city academies into Academies)(32).

22. A body set up by a local housing authority in exercise of powers under section 2 of the Local Government Act 2000(33) as a housing management company to exercise management functions of the authority under an agreement approved by the Secretary of State under section 27 of the Housing Act 1985(34).

23. The Valuation Tribunal Service for England established under section 105 of the Local Government Act 2003(35) and the Valuation Tribunal Service for Wales established under regulation 5 of the Valuation Tribunals (Wales) Regulations 2005(36).

24. A conservation board established under section 86 of the Countryside and Rights of Way Act 2000(37).

25. Firebuy Limited established under Section 29 of the Fire and Rescue Services Act 2004.

PART 2

1. The Board of Governors of the Museum of London;

2. A body (other than a body listed in Part 1 of this Schedule) which is—

(a)a precepting authority (as defined in section 69 of the Local Government Finance Act 1992(38)),

(b)a levying body within the meaning of section 74 of the Local Government Finance Act 1988 (levies)(39), or

(c)a body to which section 75 of that Act (special levies) applies.

3. A passenger transport executive.

4. A designated institution which immediately before designation was assisted or maintained by a local education authority.

5. A company under the control of a body listed in Part 1 of this Schedule where “under the control” has the same meaning as in section 68 or, as the case may be, section 73 of the Local Government and Housing Act 1989(40) (except that any direction given by the Secretary of State must be disregarded, and any references to a local authority treated as references to such a body).

6. The Public Services Ombudsman for Wales.

7. The Serious Organised Crime Agency.

8. Transport for London.

9. The London Development Agency.

10. The Metropolitan Police Authority.

11. The London Transport Users’ Committee.

12. The Cultural Strategy Group for London.

13. The Children and Family Court Advisory and Support Service.

14. An urban development corporation.

Regulation 6(9)

SCHEDULE 3MATTERS TO BE INCLUDED IN ADMISSION AGREEMENTS WITH TRANSFEREE ADMISSION BODIES

1. A requirement for the transferee admission body to pay to the administering authority all contributions and payments due under these Regulations and the Benefits Regulations.

2. If required by regulation 6(7), a reference to the indemnity or bond in accordance with regulation 6(8) and a warranty from the transferee admission body that such an indemnity or bond is in place.

3. A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in these Regulations, the Benefits Regulations, the Transitional Regulations and in any employer’s guide published by the administering authority and provided to that body.

4. An undertaking from the transferee admission body to the administering authority that it will not do anything to prejudice the status of the Scheme as a registered scheme.

5. A representation and warranty from the transferee admission body to the administering authority that all the body’s employees who are members are employed in connection with the provision of a service or assets mentioned in regulation 6(2).

6. An undertaking from the transferee admission body that it will promptly notify the administering authority in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy or in the interests of efficiency.

7. A requirement that the transferee admission body notifies the administering authority of each occasion on which it exercises a discretion under these Regulations, the Benefits Regulations or the Transitional Regulations and the manner in which it exercises that discretion.

8. A requirement that the transferee admission body—

(a)notifies the administering authority of any matter which may affect, or is likely to affect, its participation in the Scheme; and

(b)gives immediate notice to that authority of any actual or proposed change in its status which may give rise to a termination,

and, for these purposes, a termination includes a take-over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of the body’s business or constitution.

9. A provision—

(a)for automatic termination of the admission agreement, as required by regulation 7(2), if the transferee admission body ceases to be such a body; and

(b)otherwise for a minimum period of three months’ notice to terminate the agreement.

10. A right for the administering authority to terminate the agreement in the event of—

(a)the insolvency, winding up or liquidation of the transferee admission body;

(b)a breach by that body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time); or

(c)a failure by that body to pay any sums due to the fund within a reasonable period after receipt of a notice from the administering authority requiring it to do so.

11. A requirement that the admission agreement in its final form must be available for public inspection at the offices of the administering authority.

12. In relation to a transferee admission body under regulation 6(2)(a)—

(a)a reference to the date of the contract, other arrangement or direction by which the body met the requirements of that regulation;

(b)a provision whereby the Scheme employer may set off against any payments due to the body an amount equal to any overdue employer and employee contributions and other payments (including interest payable under these Regulations) due from the body as an employing authority;

(c)a provision requiring the Scheme employer to keep under assessment the level of risk arising as a result of the matters mentioned in regulation 6(5);

(d)provision that where a representation or notification must be given to an administering authority under paragraph 5, 6, 7 or 8, it must also be given to the Scheme employer; and

(e)where the Scheme employer is not also the administering authority, a requirement that the admission agreement in its final form must be available for public inspection at the offices of that employer.

Regulation 30

SCHEDULE 4APPROPRIATE FUNDS

1. The appropriate fund for a member is the fund specified in column 2 of the following Table for a member of his description.

2. But where a member is within paragraph 5 of that Table or is employed by an institution referred to in paragraph 3 of Part 2 of the Table in Schedule 5 to the 1997 Regulations(41) (educational establishments), the Secretary of State may by direction substitute another fund (“the substituted fund”).

3. Where a member is within paragraph 8 of the following Table and is an employee of the governing body of a voluntary, foundation or foundation special school who is deemed to be in employment with a local education authority, the Secretary of State may by direction substitute the fund maintained by the London Pensions Fund Authority as his appropriate fund.

4. Before giving a direction under paragraph 2 or 3, the Secretary of State must consult with any bodies appearing to her to be affected by the proposed direction.

5. The direction may require the making of financial adjustments between the funds, whether by way of a payment to the substituted fund or of a transfer of assets or both.

6. It may also contain provision as to the transfer of liabilities to the substituted fund and any other consequential and incidental matters.

7. Where an administering authority has established an admission agreement fund under regulation 32—

(a)references in this Schedule and in regulation 30 to the fund are to the fund maintained by that authority under regulation 29, and

(b)in relation to a member employed by a body specified in the notice required by regulation 32(3), the appropriate fund is the admission agreement fund.

TABLE

Member	Appropriate fund
⁽¹⁾ A London member is an active member who was a London member under the 1997 Regulations immediately before the commencement date.
⁽²⁾ A Welsh member is an active member who was a Welsh member under the 1997 Regulations immediately before the commencement date and the “appropriate regulation 3 fund” is the fund determined for him in accordance with the 1997 Regulations.
⁽³⁾ A Part 2 member is an active member who immediately before the commencement date was a Part 2 member under the 1997 Regulations.
1. An employee of an administering authority (other than a London member).	Fund maintained by that authority.
2. A London member⁽¹⁾	Fund maintained by the London Pensions Fund Authority.
3. A Welsh member⁽²⁾	Appropriate regulation 3 fund.
4. A Part 2 member⁽³⁾	Fund specified for him in Part 2 of Schedule 5 to the 1997 Regulations(42).
5. An employee of a company under the control of a Scheme employer specified inSchedule 2	Fund which is the appropriate fund for employees of that Scheme employer
6. An employee of an admission body who is a member by reason of that employment.	Fund maintained by the administering authority with whom the admission agreement making him eligible for membership was made..
7. Members for whom no fund is specified by paragraphs 1 to 6, being—
(a) members whose employing authority is specified in column 1 of the Table in Part 3 of Schedule 5 to the 1997 Regulations;	Fund maintained by the administering authority specified for that authority in column 2 of the Table in Part 3 of that Schedule.
(b) members whose employing authority’s area is situated wholly or mainly in the local government area of another employing authority which is specified in column 1 of the Table in Part 3 of Schedule 5 to the 1997 Regulations.	Fund maintained by the administering authority specified for that other authority in column 2 of the Table in Part 3 of that Schedule.
8. Members for whom no fund is specified by paragraphs 1 to 7.	Fund maintained by the administering authority within whose local government area all or most of his employing authority’s area lies.