3.—(1) The 2013 Regulations are amended as follows.
(2) In regulation 28 (deferred pensioner member accounts), after paragraph (2), insert—
“(2A) The amount of accrued pension referred to in paragraph (2) is not to include—
(a)any final guarantee amount calculated in relation to the member’s discontinued Tier 3 benefits; or
(b)any revaluation adjustment or index rate adjustment that has been applied to the retirement pension account as a consequence of a final guarantee amount calculated in relation to discontinued Tier 3 benefits.”.
(3) In regulation 30 (retirement benefits), after paragraph (12A), insert—
“(12B) The references to an enhancement in paragraph (4), a reduction in paragraph (5) and an adjustment in paragraph (6) do not apply to any final guarantee amount that has been added to the pension account under regulation 4B or 4C of the 2014 Regulations.”.
(4) In regulation 34 (commutation and small pensions)—
(a)after paragraph (2), insert—
“(2A) In the case of an eligible member, the pension used to calculate a payment under paragraph (1) is to include—
(a)where the pension is in payment—
(i)any final guarantee amount calculated in respect of the eligible member’s pension account under regulation 4B or 4C of the 2014 Regulations; and
(ii)any revaluation adjustment or index rate adjustment that has been applied to the retirement pension account as a consequence of a final guarantee amount;
(b)where the pension is not in payment, any final guarantee amount that would be paid were the payment under paragraph (1)(a) or (c) not to proceed; or
(c)where the eligible member is deceased—
(i)any survivor guarantee amount payable to the survivor member in respect of the eligible member; and
(ii)any revaluation adjustment or index rate adjustment that has been applied to a survivor member’s pension account as a consequence of the survivor guarantee amount.”;
(b)at the end, insert—
“(4) In this regulation—
“eligible member” has the meaning given in regulation 4A(2) of the 2014 Regulations;
“survivor guarantee amount” has the meaning given in regulation 4O(3) of the 2014 Regulations.”.
(5) In regulation 41(4)(a) (survivor benefits: partners of active members), after “draw”, insert “, excluding any final guarantee amount under regulation 4B or 4C of the 2014 Regulations,”.
(6) In regulation 42(4)(a), (5)(a), (9)(a) and (10)(a) (survivor benefits: children of active members), in each case, after “draw”, insert “, excluding any final guarantee amount under regulation 4B or 4C of the 2014 Regulations,”.
(7) In regulation 43 (death grants: deferred members, pension credit members and deferred pensioner members)—
(a)in paragraph (3)—
(i)after “annually” insert “, excluding any final guarantee amount under regulation 4B or 4C of the 2014 Regulations,”;
(ii)at the end of sub-paragraph (a), omit “and”;
(iii)at the end of sub-paragraph (b), insert “and”;
(iv)after sub-paragraph (b), before “multiplied by 5”, insert—
“(c)it included any deferred guarantee amount calculated under regulation 4P of the 2014 Regulations,”;
(b)after paragraph (3A), insert—
“(3B) In paragraph (3) “deferred guarantee amount” has the meaning given in regulation 4P(3) of the 2014 Regulations.”.
(8) In regulation 44(4) (survivor benefits: partners of deferred members and deferred pensioner members), in the words before sub-paragraph (a), after “draw”, insert “excluding any final guarantee amount under regulation 4B or 4C of the 2014 Regulations”.
(9) In regulation 45(4), (5), (9) and (10) (survivor benefits: children of deferred members), in the words before sub-paragraph (a), in each case, after “draw”, insert “excluding any final guarantee amount under regulation 4B or 4C of the 2014 Regulations”.
(10) In regulation 47 (survivor benefits: partners of pensioner members), after paragraph (7), insert—
“(8) The pension that the member would have been entitled to, for the purpose of calculating the amount of pension payable under paragraph (3), is not to include any final guarantee amount under regulation 4B or 4C of the 2014 Regulations.”.
(11) In regulation 48 (survivor benefits: children of pensioner members), after paragraph (10A), insert—
“(10B) The pension that the member would have been entitled to, for the purpose of calculating the amount of pension payable under paragraphs (3) and (8), is not to include any final guarantee amount under regulation 4B or 4C of the 2014 Regulations.”.
(12) In regulation 62 (actuarial valuations of pension funds), after paragraph (6), insert—
“(6A) Compensation paid by the scheme to a person by virtue of section 82(1) of PSPJOA 2022 or additional benefits payable by virtue of regulation 4S of the 2014 Regulations are liabilities for the purpose of the actuarial valuation under paragraph (1)(a).”.
(13) In regulation 64 (special circumstances where revised actuarial valuations and certificates must be obtained), after paragraph (2), insert—
“(2ZAA) Compensation paid by the scheme to a person by virtue of section 82(1) of PSPJOA 2022 or additional benefits payable by virtue of regulation 4S of the 2014 Regulations are liabilities for the purpose of the actuarial valuation under paragraph (2)(a).”.
(14) In regulation 81 (interest on late payment of certain benefits), before paragraph (1), insert—
“(A1) This regulation does not apply to sums in respect of which interest is payable under—
(a)regulation 4V of the 2014 Regulations; or
(b)regulation 14 of the Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023.”;
(15) In regulation 96 (rights to payment out of pension fund)—
(a)after paragraph (1A), insert—
“(1B) Where a transfer under paragraph (1) is applied for by an eligible member and is not a Club Transfer, the value of the transfer is to be calculated in accordance with actuarial guidance issued by the Secretary of State, taking into account the member’s provisional assumed benefits and provisional underpin amount, calculated in accordance with regulations 4I and 4J of the 2014 Regulations.”.
(b)after paragraph (3), insert—
“(4) “Eligible member” has the same meaning as in regulation 4A(2) of the 2014 Regulations.”.
(16) In regulation 98 (bulk transfers etc.), at the end, insert—
“(8) This regulation is subject to regulation 10(6) of the Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023 (transfer payments out of the fund before 1st October 2023).”.
(17) In regulation 99 (calculation of amount of transfer payment), after paragraph (2), insert—
“(2A) The actuary must take into account the member’s provisional assumed benefits and provisional underpin amount, calculated in relation to the member in accordance with regulations 4I and 4J of the 2014 Regulations.”.
(18) In Schedule 1 (interpretation)—
(a)at the beginning, insert—
““the 2014 Regulations” means the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014;”;
(b)after the definition of “European pensions institution”, insert—
““final guarantee amount” has the meaning given in regulation 1(6) of the 2014 Regulations;”;
(c)after the definition of “permanently incapable”, insert—
““PSPJOA 2022” means the Public Service Pensions and Judicial Offices Act 2022;”.