The Local Government Pension Scheme Regulations 2013

In force

This text since 1 Apr 2026law://uk/uksi/2013/2356/reg_17@2026-11-12

Contents

17Additional voluntary contributions#

(1)An active member may enter into arrangements to pay additional voluntary contributions (“AVCs”) or to contribute to shared cost additional voluntary contribution arrangements (“SCAVCs”) in respect of an employment.

(2)The arrangements mentioned in paragraph (1) must be a scheme established under an agreement between the appropriate administering authority and a body approved for the purposes under the Finance Act 2004 ^note (“the AVC provider”), registered in accordance with that Act and administered in accordance with the Pensions Act 2004 ^note.

(3)Where an active member wishes to make contributions to an arrangement under paragraph (1), the active member or the AVC provider authorised by the member to act on the member's behalf must specify in a written notice given both to the appropriate administering authority and the member's Scheme employer, if the member is not employed by the administering authority—

(a)the percentage of pensionable pay or the amount that the member wishes to contribute from pensionable pay in respect of an employment in each pay period (but see paragraph (4); and

(b)whether any of the contributions are to be used to provide life assurance benefits payable upon death in service as an active member and, if so, the proportion or amount to be so used.

(4)Where a member is paying AVCs for life assurance and pensionable pay in a pay period, net of any deductions made by the Scheme employer, is less than the AVC due, the member may pay the contribution due by way of a payment direct to the AVC provider or to the Scheme employer for onward transmission to that body in order to ensure that the life assurance cover continues.

(5)A member may vary the amount specified in, or cease contributing to, an arrangement by service of a further written notice given to the member's Scheme employer and appropriate administering authority by the member or by the AVC provider authorised by the member to act on the member's behalf.

(6)For the purposes of regulation 17 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 the retirement date used for the purposes of Part 2 of Schedule 6 to those Regulations is, where no acceptable date has been specified for that purpose by the member, normal pension age or, if the member has already attained normal pension age, age 75.

(7)If a member draws benefits under regulation 30(1), (2), (4), (5), (7), (10) to (12) (retirement benefits) or regulation 35(1) (early payment of retirement pension on ill-health grounds: active members) or regulation 38(1) (early payment of retirement pension on ill-health grounds: deferred members) or, if a member who draws benefits under regulation 30(6) (flexible retirement) makes an election to draw the realisable value in the AVC arrangement at the same time, that member must notify the appropriate administering authority that the realisable value under arrangements made under this regulation—

(a)is to be taken in full or in part by the member as a lump sum, and where only part is taken as a lump sum, the member must specify the amount to be so taken; and

(b)to the extent that the realisable value has not been taken as a lump sum, it is to be used—

(i)to purchase additional pension under the Scheme, the amount of which is to be determined by the administering authority in accordance with actuarial guidance issued by the Secretary of State, or

(ii)to the extent that it has not been used to purchase additional pension under the Scheme, to purchase an annuity from one or more insurance companies (within the meaning of section 275 of the Finance Act 2004 ^note).

(8)Where a member chooses to take some or all of the benefits referred to in paragraph (7) in the form of a lump sum, that sum forms part of the total amount referred to in regulation 33(2) (election for lump sum instead of a pension).

(9)A person with an arrangement under paragraph (1) who becomes a deferred member of the Scheme is entitled to a deferred AVC account with the AVC provider.

(10)A member must transfer the realisable value in a deferred AVC account to another registered pension scheme or qualified recognised overseas pension scheme if making a transfer under regulation 96 (rights to payment out of pension fund).

(11)Where a member aggregates a deferred member's pension account or a deferred refund account with an active member's pension account, the realisable value in any deferred AVC account must be transferred to an arrangement under this regulation and the member may make an election to make further payments to the arrangement.

(12)If—

(a)an active member who is paying contributions to an AVC or SCAVC for the purpose of life assurance dies, or

(b)an active member who is paying contributions to an AVC or SCAVC other than for the purpose of life assurance dies, or

(c)a deferred member dies and has a deferred AVC account attached to the deferred member's pension account, or

(d)a pension credit member who has been awarded a share of a member's AVC account dies before drawing benefits, or

(e)a member who has made an election under paragraph (7)(b)(ii) dies before the annuity has been purchased,

the appropriate administering authority shall, at its absolute discretion, decide that any life assurance sum due under sub-paragraph (a), and the realisable value of any arrangement under sub-paragraphs (b) to (e), should be paid to or for the benefit of the member's nominee, personal representatives or any person appearing to the authority to have been a relative or dependent of the member.

(13)Where a member had attained the age of 75 at the date of death, any tax chargeable under section 206 of the Finance Act 2004 (special lump sum death benefits charge) is to be deducted from the payment due under paragraph (12).

(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(15)Regulations 72 (first instance decisions) and 91 (forfeiture of pension rights after conviction for employment-related offences) do not apply in relation to an annuity purchased under paragraph (7)(b)(ii) and regulation 19(1)(b) (exclusion of rights to return of contributions) does not apply to any AVCs paid by the member.

Contains public sector information licensed under the Open Government Licence v3.0.

Key facts

Type: Statutory instrument · UKSI 2013/2356
Made by: UK Government (statutory instrument)
Extent: England and Wales

History · 1 version

1 Apr 2026Reading

Connections

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Amended by 3: The Surrey (Structural Changes) (Pensions etc.) Order 2026; Enterprise Act 2016; The English Devolution and Community Empowerment Act 2026 (Consequential Amendments) Regulations 2026

Defined terms · 32

Show every defined term

a deferred member who has been an elected member
includes a deferred member who has been a councillor member within the meaning of the Local Government Pension Scheme Regulations 1997;
a local government pension scheme
means the Scheme or any of the Earlier Schemes;
agreement date
means the date which falls 120 days after the date on which the administering authorities have been notified in writing of the transfer of employees, or the date the information described in paragraph (2) has been received, whichever is the later;
connected with
has the same meaning as in section 212(6) of the Local Government and Public Involvement in Health Act 2007.
deferred employer
means a Scheme employer which enters into a deferred debt agreement with an administering authority;
deferred guarantee amount
has the meaning given in regulation 4P(3) of the 2014 Regulations.
Earlier Schemes
has the meaning given in regulation 1(6) of the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014.
elected membership
includes any period of councillor membership within the meaning of the Local Government Pension Scheme Regulations 1997”. 12 Where a deferred member’s former elected membership includes a period of former councillor membership accrued under the Local Government Pension Scheme Regulations 1997, and that former councillor membership falls to be aggregated with elected membership in the Scheme — a that aggregation is to be treated for all purposes as an interfund adjustment under regulation 10(6) of the 2014 Regulations, and must be carried out in accordance with that regulation, and b where both periods of membership are held in the same pension fund, the administering aut
Eligible member
has the same meaning as in regulation 4A(2) of the 2014 Regulations.
exit credit
means any amount paid to the exiting employer by the administering authority to meet the excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2). • “exit payment” means the assets required to be paid by the exiting employer over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);
exit date
means the date on which the employer becomes an exiting employer;
exit payment
means the assets required to be paid by the exiting employer over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);
exiting employer
means an employer of any of the descriptions specified in paragraph (1);
final payment date
means the date that is 12 months after the later of the date on which the former authority has been notified in writing of the transfer of employees and the date the information described in paragraph (2) has been received;
local government service
means employment with a body specified in Part 1 of Schedule 2.
member
means a member with qualifying service for a period of two years and does not include a pension credit member.
payment date
means the date or dates agreed between the former authority and the new authority for the making of the transfer payment to the new authority or the date or dates notified to the former authority in accordance with paragraph (7) where agreement cannot be reached;
period
means such interval as used by the Scheme employer for the calculation and payment of contributions to the salary sacrifice SCAVC arrangement.”
permitted assets
means liquid, transferable holdings of pooled vehicles which track market capitalisation weighted indices;
probation trust
means a probation trust established under section 5 of the Offender Management Act 2007.
publish
includes publish on the internet;
related employer
means any Scheme employer or other such contracting body which is a party to the admission agreement (other than an administering authority in its role as an administering authority).
relevant allowance
means an allowance payable under a Combined Authority establishment order or Combined County Authority establishment regulations other than an allowance for travel and subsistence. 4 Where an elected member participates in a salary-sacrifice SCAVC arrangement within the meaning of regulation 17(1), the amounts referred to in paragraph (1) are to be calculated by reference to the remuneration that would have been payable but for that arrangement.”
survivor guarantee amount
has the meaning given in regulation 4O(3) of the 2014 Regulations.
the appropriate increase
means the amount (where it is greater than zero) by which the figures would be increased with effect from the first Monday falling on or after 6thApril of the relevant year if they were pensions beginning on 1st April 2014 to which the Pensions (Increase) Act 1971 applied.
the overall cost of the Scheme
means the total cost as calculated by the Scheme actuary as part of a Scheme cost assessment making use of the data provided under regulation 114(4) (Scheme actuary) according to such methodology and assumptions as are determined by the Board;
the target proportion
means Scheme employers meeting two-thirds and members meeting one-third of the overall cost of the Scheme.
transfer date
means the date on which the new pension fund becomes the member’s appropriate fund;
transfer payment
means a transfer of cash in British pounds sterling or permitted assets equal in value to the transfer share;
transfer share
means the value of the assets allocated to the actual and potential liabilities payable from the pension fund of a former authority in respect of the benefits that have accrued to or in respect of transferring members as at the transfer date (whether that accrual arose before the commencement of these Regulations or afterwards), adjusted to the relevant payment date, calculated in accordance with actuarial guidance issued by the Secretary of State;
transferring members
means the employees and former employees (and those entitled through them, including pension credit members) of a probation trust (or its predecessor local probation boards or probation committees) who are the subject of the changes of Scheme employer and appropriate administering authority referred to in paragraph (1) and any persons specified in accordance with regulation 3A(5)(d) or (e) (civil servants etc engaged in probation provision) as a person to whom regulation 3A(5) applies;
under the control
has the same meaning as in section 68 or, as the case may be, 73 of the Local Government and Housing Act 1989 (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).

Defined terms · 32

Show every defined term

a deferred member who has been an elected member
includes a deferred member who has been a councillor member within the meaning of the Local Government Pension Scheme Regulations 1997;
a local government pension scheme
means the Scheme or any of the Earlier Schemes;
agreement date
means the date which falls 120 days after the date on which the administering authorities have been notified in writing of the transfer of employees, or the date the information described in paragraph (2) has been received, whichever is the later;
connected with
has the same meaning as in section 212(6) of the Local Government and Public Involvement in Health Act 2007.
deferred employer
means a Scheme employer which enters into a deferred debt agreement with an administering authority;
deferred guarantee amount
has the meaning given in regulation 4P(3) of the 2014 Regulations.
Earlier Schemes
has the meaning given in regulation 1(6) of the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014.
elected membership
includes any period of councillor membership within the meaning of the Local Government Pension Scheme Regulations 1997”. 12 Where a deferred member’s former elected membership includes a period of former councillor membership accrued under the Local Government Pension Scheme Regulations 1997, and that former councillor membership falls to be aggregated with elected membership in the Scheme — a that aggregation is to be treated for all purposes as an interfund adjustment under regulation 10(6) of the 2014 Regulations, and must be carried out in accordance with that regulation, and b where both periods of membership are held in the same pension fund, the administering aut
Eligible member
has the same meaning as in regulation 4A(2) of the 2014 Regulations.
exit credit
means any amount paid to the exiting employer by the administering authority to meet the excess of assets in the fund relating to that employer over the liabilities specified in paragraph (2). • “exit payment” means the assets required to be paid by the exiting employer over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);
exit date
means the date on which the employer becomes an exiting employer;
exit payment
means the assets required to be paid by the exiting employer over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);
exiting employer
means an employer of any of the descriptions specified in paragraph (1);
final payment date
means the date that is 12 months after the later of the date on which the former authority has been notified in writing of the transfer of employees and the date the information described in paragraph (2) has been received;
local government service
means employment with a body specified in Part 1 of Schedule 2.
member
means a member with qualifying service for a period of two years and does not include a pension credit member.
payment date
means the date or dates agreed between the former authority and the new authority for the making of the transfer payment to the new authority or the date or dates notified to the former authority in accordance with paragraph (7) where agreement cannot be reached;
period
means such interval as used by the Scheme employer for the calculation and payment of contributions to the salary sacrifice SCAVC arrangement.”
permitted assets
means liquid, transferable holdings of pooled vehicles which track market capitalisation weighted indices;
probation trust
means a probation trust established under section 5 of the Offender Management Act 2007.
publish
includes publish on the internet;
related employer
means any Scheme employer or other such contracting body which is a party to the admission agreement (other than an administering authority in its role as an administering authority).
relevant allowance
means an allowance payable under a Combined Authority establishment order or Combined County Authority establishment regulations other than an allowance for travel and subsistence. 4 Where an elected member participates in a salary-sacrifice SCAVC arrangement within the meaning of regulation 17(1), the amounts referred to in paragraph (1) are to be calculated by reference to the remuneration that would have been payable but for that arrangement.”
survivor guarantee amount
has the meaning given in regulation 4O(3) of the 2014 Regulations.
the appropriate increase
means the amount (where it is greater than zero) by which the figures would be increased with effect from the first Monday falling on or after 6thApril of the relevant year if they were pensions beginning on 1st April 2014 to which the Pensions (Increase) Act 1971 applied.
the overall cost of the Scheme
means the total cost as calculated by the Scheme actuary as part of a Scheme cost assessment making use of the data provided under regulation 114(4) (Scheme actuary) according to such methodology and assumptions as are determined by the Board;
the target proportion
means Scheme employers meeting two-thirds and members meeting one-third of the overall cost of the Scheme.
transfer date
means the date on which the new pension fund becomes the member’s appropriate fund;
transfer payment
means a transfer of cash in British pounds sterling or permitted assets equal in value to the transfer share;
transfer share
means the value of the assets allocated to the actual and potential liabilities payable from the pension fund of a former authority in respect of the benefits that have accrued to or in respect of transferring members as at the transfer date (whether that accrual arose before the commencement of these Regulations or afterwards), adjusted to the relevant payment date, calculated in accordance with actuarial guidance issued by the Secretary of State;
transferring members
means the employees and former employees (and those entitled through them, including pension credit members) of a probation trust (or its predecessor local probation boards or probation committees) who are the subject of the changes of Scheme employer and appropriate administering authority referred to in paragraph (1) and any persons specified in accordance with regulation 3A(5)(d) or (e) (civil servants etc engaged in probation provision) as a person to whom regulation 3A(5) applies;
under the control
has the same meaning as in section 68 or, as the case may be, 73 of the Local Government and Housing Act 1989 (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).