The Local Government Pension Scheme Regulations 2013

Explanatory Note

(This note is not part of the Regulations)

These regulations (“the Regulations”) introduce a new local government pension scheme (“the Scheme”) which is to come into existence on 1st April 2014 and replace the local government pension scheme constituted by the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 (S.I. 2007/1166) and the Local Government Pension Scheme (Administration) Regulations 2008 (S.I. 2008/239) (“the 2008 Scheme”). In contrast to the 2008 Scheme which was a final salary pension scheme in which unreduced benefits were payable to members from the age of 65, the Scheme provides for members to accrue pension on a career average revalued earnings basis and for unreduced benefits to be payable from their state pension age.

Part 1 of the Regulations sets out provisions relating to benefits, membership and contributions.

Regulations 3 to 8 set out the rules for eligibility for membership and the different categories of member.

Regulations 9 to 21 set out the rules for contributions and include provision known as the “50/50” option which enables members to elect to pay half the usual rate of contribution and to accrue benefits at half the usual rate. Regulations 16 and 17 make provision for the purchase of additional benefits. Provision is also made for the payment or crediting of contributions during absences from work and for the calculation of an assumed level of pensionable pay during such absences.

Regulations 22 to 29 provide for the creation and maintenance of pension accounts.

Regulations 30 to 52 provide for the payment of benefits to members and their survivors.

Part 2 of the Regulations sets out provisions relating to the administration of the Scheme.

Regulations 53 to 71 provide for management of the Scheme including the obtaining of actuarial valuations and the calculation of employer contributions.

Regulations 72 to 90 provide for the making and notification of decisions and for challenges to those decisions, and for the supply of relevant information to enable decisions to be taken.

Regulations 91 to 96 set out provisions for forfeiture of benefits.

Regulations 96 to 103 set out provisions relating to transfers between funds.

Schedule 1 contains definitions.

Schedule 2 sets out who can be Scheme employers and makes provision relating to admission agreements between employers who are not listed within the Schedule and administering authorities.

Schedule 3 sets out who must maintain a fund for the Scheme, and is thus an administering authority and contains provision identifying who is the appropriate administering authority for the employees of any particular Scheme employer.

A regulatory impact assessment has been produced for these Regulations and is available at https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/local-government-pensions.