The Local Government Pension Scheme (Miscellaneous) Regulations 2008

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations apply in relation to England and Wales and contain amendments relevant to the Local Government Pension Scheme 1997 (“the 1997 Scheme”) and to the new Local Government Pension Scheme (“the 2008 Scheme”) which came into existence on 1st April 2008 and replaced the 1997 Scheme.

Regulations 2 to 10 make retrospective provision in relation to the operation of the 1997 Scheme. By virtue of regulation 1(3)(a) to (e), regulation 8 has effect from 1st April 2004, regulations 4 and 5 from 6th April 2006, regulation 9 from 1st October 2006, regulations 3, 7 and 10 from 1st April 2007 and regulation 6 from 6th April 2007. Regulation 2 has effect for the purposes of making the amendments specified in regulations 3 to 10 on the date from which each of those regulations has effect.

Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect.

Regulation 3 provides that any pay received in respect of days worked during maternity, paternity adoption and parental leave is disregarded for the purposes of calculating contribution rates for voluntary contributions.

Regulation 4 requires the making to a member’s personal representatives of a payment equalling the shortfall of death grant due to a member if the death grant has not been paid within two years of the member’s death or the date on which the administering authority could reasonably be expected to have become aware of the member’s death.

Regulation 5 modifies the definition of “eligible child”.

Regulation 6 provides that commutation lump sums in respect of small pensions are to be calculated in accordance with guidance issued by the Government Actuary.

Regulation 7 enables an employing authority to pass a resolution to increase total membership up to six months after a member leaves his employment on the grounds of redundancy. Redundancy includes leaving employment on efficiency grounds or where a joint appointment is terminated because the other holder of the joint appointment has left.

Regulation 8 provides for the contribution of members with short service to be treated as a lump sum death benefit if their contributions have not been repaid before they die.

Regulation 9 makes minor amendments to extant provisions in the Local Government Pension Scheme Regulations 1997 (“the 1997 Regulations”) concerning credited periods for transferring members with mis-sold pension rights and the calculation of pension credits.

Regulation 10 extends the definition of occupational pension scheme.

Regulations 11 to 22 amend the Local Government (Management and Investment of Funds) Regulations 1998 (“the Investment Regulations”); the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 (“the Benefits Regulations”); the Local Government Pension Scheme (Transitional Provisions) Regulations 2008 (“the Transitional Regulations”) and the Local Government Pension Scheme (Administration) Regulations 2008 (“the Administration Regulations”). By virtue of section 12 of the Superannuation Act 1972 and regulation 1(3)(f), the amendments have retrospective effect from 1st April 2008.

Regulation 11 introduces the amendments set out in regulations 12 to 14.

Regulation 12 updates certain definitions contained in regulation 2 of the Investment Regulations as a consequence of the coming into operation of the 2008 Scheme.

Regulations 13 and 14 make minor and technical consequential amendments in order to align regulation 5 of, and Schedule 2 to, the Investment Regulations with the 2008 Scheme.

Regulation 15 introduces the amendments set out in regulations 16 to 20.

Regulation 16 inserts some additional definitions into the Benefits Regulations.

Regulation 17 amends regulation 12 of the Benefits Regulations so that the resolution to increase total membership is made before the member leaves his employment, or up to six months after the member leaves his employment where he leaves on the grounds of redundancy.

Regulation 18 substitutes paragraph (5) in regulation 23 of the Benefits Regulations (death grants: active members) to provide for death grant to be payable before the expiry of two years beginning with the date upon which the administering authority became aware of the member’s death.

Regulation 19 makes a minor amendment to regulation 29 of the Benefits Regulations (calculation on leaving early).

Regulation 20 substitutes paragraph (4) in regulation 32 of the Benefits Regulations (death grants: deferred members) to make the same provision in the case of deferred members as regulation 18 of these Regulations does in the case of active members.

Regulation 21 contains amendments to the Transitional Regulations. The effect is to save, for the stated purposes: regulation 18 (optional contribution during absences), regulation 38 (death grants), regulation 44 (meaning of eligible child) and regulation 52 (power of employing authority to increase total membership) of the 1997 Regulations. Regulation 130C (employees in the Rent Service Agency) of the 1997 Regulations is saved generally.

Regulation 22 contains amendments to the Administration Regulations: in regulation 31 so as to extend the time given in the 1997 Regulations for publication of the first governance compliance statement; in regulation 83 so as to enable the transfer into the 2008 Scheme of rights accrued under a European pension scheme, and in Schedule 1 by the insertion of an additional definition.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.