Section 3 · The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014

Contents

3Membership before 1st April 2014#

(1)Notwithstanding the revocations effected by regulation 2 of these Regulations, and subject to this Regulation, the regulations listed in Schedule 1 continue to have effect so far as is necessary—

(a)so that membership accrued in the Earlier Schemes in respect of service before 1st April 2014, the pension rights accrued at that date, and any rights and obligations imposed on any person under those Schemes in relation to service before 1st April 2014, are preserved; and

(b)so that benefits are payable in accordance with these Regulations.

(2)In paragraph (1)(a) the expression “pension rights accrued” includes any right to any pension, lump sum, grant or other benefit due to or in respect of a member.

(3)A scheme manager responsible under regulation 2(2) of the 2013 Regulations (introductory) for the local administration of pensions and other benefits payable under those Regulations is also responsible for the administration of benefits pursuant to paragraph (1) of this regulation.

(4)Where a person has been an active member of the 2014 Scheme, and retirement benefits under paragraph (1) are payable to a member in accordance with regulation 11 of these Regulations (retirement benefits), the benefits paid from Earlier Schemes and the 2014 Scheme are, for all purposes, to be regarded as constituting a single pension scheme.

(5)But a retirement pension and any retirement grant payable to a member under paragraph (4) is subject to actuarial adjustment if it would have been subject to actuarial adjustment under the 2008 Scheme, irrespective of whether retirement pension under the 2014 Scheme payable at the same time is subject to actuarial adjustment.

(5A)Notwithstanding paragraph (1)(a)—

(a)regulation D11 of the 1995 Regulations (entitlement to deferred retirement benefits) has effect as if—

(i)in paragraph (2)(d) the words “has ceased to be employed in local government employment” were omitted;

(ii)in paragraphs (2)(d) and (4) the references to age 60 were substituted with references to age 55;

(iii)in paragraph (3)—

(aa)the reference to employing authority were substituted with references to administering authority;

(bb)the words “given within the period of three months beginning with the relevant date” were omitted;

(iv)in paragraph (4)(a) “or after” were inserted after “on”;

(v)paragraph (4)(b) were omitted; and

(vi)references to an employing authority were read as including a former employing authority which is now a Scheme employer, or where a member’s employing authority or former employing authority has ceased to be a Scheme employer, the appropriate administering authority.

(b)regulations 31(2) (other early leavers: deferred retirement benefits and elections for early payment) and 154(4) (payment of benefits: pension credit member) of the 1997 Regulations have effect with the substitution of the references to age 60 with references to age 55;

(c)regulations 30(2) and 30A(3) of the Benefits Regulations (requirements for member aged between 55 and 60 to obtain consent for early payment of pension) cease to have effect.

(5B)Notwithstanding paragraph (1)(a), in respect of the death of a member between 1st April 2008 and 31st March 2014 inclusive—

(a)the Benefits Regulations have effect as if regulation 17(16A)(b) of these Regulations applied;

(b)the 2008 Scheme Transitional Regulations have effect as if regulation 17(16A)(c) of these Regulations applied.

(5C)Notwithstanding paragraph (1)(a), in respect of the period between 1st April 2008 and 31st March 2014 inclusive, the Administration Regulations have effect as if—

(a)the word “nominated” was omitted from the following provisions—

(i)regulation 47(2) (exclusion of rights to return of contributions);

(ii)regulation 58(2)(a) (applications to resolve disagreements);

(iii)regulation 60(9)(b) (reference of disagreement for reconsideration by appropriate administering authority);

(iv)regulation 76(4)(b) (transfer of sums from the pension fund to compensate for former member’s misconduct);

(v)regulation 85(2)(b) (European Union scheme transferees);

(b)in regulation 58(2) the words “(as defined in regulation 25 of the Benefits Regulations)” were omitted;

(c)in regulation 80(5)(a) (contracting-out requirements affecting transfers out) the words “or nominated cohabiting partner’s” were omitted.

(5D)Notwithstanding paragraph (1)(a), in respect of any death of a member between 5th December 2005 and 12th March 2014 inclusive, the Earlier Regulations have effect as if any survivor pension relating to that member were calculated in accordance with regulation 17(4), (16B)(b)(i), (16B)(b)(iii), (16B)(c) and (e), and (16C) to (16E) of these Regulations.

(5E)Notwithstanding paragraph (1)(a), in respect of any death of a member between 13th March 2014 and 31st March 2014 inclusive, the Earlier Regulations have effect as if any survivor pension relating to that member were calculated in accordance with regulation 17(4), (16B)(b)(i) to (iii), (16B)(c) to (e), and (16C) to (16E) of these Regulations.

(5F)Notwithstanding paragraph (1)(a), and subject to regulation 17(16E)(a), in respect of any death of a member on or after 5th December 2005—

(a)regulation F8 of the 1995 Regulations (widowers: requirement for post 5th April 1988 service and consequent adjustments to “retirement pension”) has effect as if—

(i)in paragraph (2)(b) the words from “if the widower” to “31st March 1972,” were omitted;

(ii)in paragraph (2)(b)(i) for “1988” there were substituted “1978”;

(iii)in paragraph (3) for “1988” there were substituted “1978”;

(b)paragraph 6(4) of Schedule C6 to the 1995 Regulations (provisions concerning outstanding payments due under previous regulations) has effect as if for “1988” there were substituted “1978” in each place where it occurs;

(c)regulation 42 of the 1997 Regulations (reduction of some surviving spouse’s pensions) has effect as if—

(i)in paragraph (2) for “1988” there were substituted “1978”;

(ii)in paragraph (3) the words from “where the widower” to the end were omitted;

(iii)in paragraph (4)(a) for “1988” there were substituted “1978”;

(d)regulation 42A of the 1997 Regulations (calculation of pension for surviving civil partners) has effect as if for “1988” there were substituted “1978”;

(e)regulation 4A(2) of the 1997 Transitional Regulations (deferred members and pensioners: civil partners) has effect as if for “1988” there were substituted “1978” in each place where it occurs.

(5G)Notwithstanding paragraph (1)(a), in respect of any death of a member before 1st April 2014—

(a)the Benefits Regulations have effect as if regulations 23(5) (death grants: active members), 32(4) (death grants: deferred members) and 35(4) (death grants: pensioner members) were omitted;

(b)the 1997 Regulations have effect as if regulations 38(6) (death grants) and 155(5) (death grants) were omitted;

(c)the 1995 Regulations have effect as if regulation E8(5) (nomination of beneficiary of death grant) were omitted.

(5H)Notwithstanding paragraph (1)(a)—

(a)the 1997 Regulations have effect as if—

(i)in regulation 19A (limit on total amount of benefits), paragraphs (1) to (3) were omitted;

(ii)in regulation 20 (calculations)—

(aa)in paragraph (3A), for “benefit crystallisation event” there were substituted “relevant benefit crystallisation event”;

(bb)in paragraph (4A), for “benefit crystallisation event” there were substituted “relevant benefit crystallisation event”;

(iii)in regulation 49 (commutation: small pensions) for paragraph (1) there were substituted—“1 Any authorised payments within the meaning of section 164 (authorised member payments) of the Finance Act 2004 listed in sub-paragraphs (a) to (c) may be paid in accordance with the rules relating to the payment of such benefits under that Act or relevant regulations under that Act—a a lump sum which is a trivial commutation lump sum within the meaning of section 166 (lump sum rule) of that Act;b a trivial commutation lump sum death benefit within the meaning of section 168 (lump sum death benefit rule) of that Act;c a commutation payment under regulations 6 (payment after relevant accretion), 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes) of the Registered Pension Schemes (Authorised Payments) Regulations 2009.”

(iv)in regulation 50 (commutation: exceptional ill health) the words “, notwithstanding that such lump sum may exceed his lifetime allowance” were omitted;

(v)in Schedule 1 (interpretation)—

(aa)the definition of “benefit crystallisation event” were omitted;

(bb)after the definition of “registration officer” there were inserted—“• “relevant benefit crystallisation event” shall be construed in accordance with section 637Q of the Income Tax (Earnings and Pensions) Act 2003;”

(vi)in paragraph 5 of Schedule 8 (councillor members), in the substitute regulation 20(2A), for “benefit crystallisation event” there were substituted “relevant benefit crystallisation event”;

(b)the Benefits Regulations have effect as if—

(i)in regulation 21(1) (election for lump sum in lieu of pension) for “benefit crystallisation event within the meaning of the Finance Act 2004” there were substituted “relevant benefit crystallisation event within the meaning of section 637Q of the Income Tax (Earnings and Pensions) Act 2003”;

(ii)regulation 22(1) to (3) (limit on total amount of benefits) were omitted;

(c)regulation 51(3)(b) of the Administration Regulations has effect as if for “benefit crystallisation event” there were substituted “relevant benefit crystallisation event”;

(d)regulation 14 of the 2008 Scheme Transitional Regulations (pension sharing) has effect as if for paragraph (3) there were substituted—“3 In relation to any entitlement under the 1997 Scheme, any authorised payments within the meaning of section 164 (authorised member payments) of the Finance Act 2004 listed in sub-paragraphs (a) to (c) may be paid in accordance with the rules relating to the payment of such benefits under that Act or relevant regulations under that Act—a a lump sum which is a trivial commutation lump sum within the meaning of section 166 (lump sum rule) of that Act;b a trivial commutation lump sum death benefit within the meaning of section 168 (lump sum death benefit rule) of that Act;c a commutation payment under regulations 6 (payment after relevant accretion), 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes) of the Registered Pension Schemes (Authorised Payments) Regulations 2009.”

(5I)Notwithstanding paragraph (1)(a)—

(a)regulation G7(1) of the 1995 Regulations (pensioner’s children’s short-term pension) has effect as if after “6 months after the death” there were inserted “or, if less, until they cease to be eligible children”;

(b)regulation 45 of the 1997 Regulations (children’s short-term pensions) has effect as if—

(i)in paragraph (2), for “If” there were substituted “Subject to paragraph (3A), if”;

(ii)in paragraph (3), after “Otherwise,” there were inserted “subject to paragraph (3A)”;

(iii)after paragraph (3) there were inserted—“3A A person ceases to be entitled to a short-term pension under this regulation when they cease to be an eligible child.”

(6)Where a member who has not had a disqualifying break aggregates benefits from Earlier Schemes with benefits from the 2014 Scheme, the benefits from the Earlier Schemes are payable as final salary benefits.

(6A)Notwithstanding paragraph (1)(a), where deferred benefits are aggregated in accordance with paragraph (6), the normal pension age in relation to deferred benefits in respect of membership that ceased before 1st October 2006, is age 65

(7)A disqualifying break for the purposes of paragraph (6) is a continuous break in active membership of a public service pension scheme of more than five years.

(8)Where a person has not been an active member of the 2014 Scheme and has benefits under the Earlier Schemes, or has been an active member of the 2014 Scheme and has benefits under the Earlier Schemes which have not been aggregated with the benefits in the 2014 Scheme, the benefits payable as a consequence of paragraph (1) are payable in accordance with the Earlier Schemes as applied by this regulation.

(9)Any pensionable pay received or contribution paid by a member on or after 1st April 2014 which relates to work carried out before that date shall be dealt with in accordance with the 2008 Scheme.

(10)An increase in membership may be awarded to a member under regulation 12(4) of the Benefits Regulations (power of employing authority to increase total membership of active members) after 31st March 2014 if the member’s relevant date for the purposes of that regulation is before 1st April 2014 and that increase shall be an increase in membership of the 2008 Scheme notwithstanding the fact that the award may occur after 31st March 2014.

(11)Where an employing authority grants an increase in membership under regulation 12A (duty of employing authority to increase total membership: enhanced protection) of the Benefits Regulations following a notice served by a member before 6th April 2009, that increase shall be an increase in membership of the 2008 Scheme notwithstanding the fact that the grant may occur after 31st March 2014.

(12)Any guidance issued by the Government Actuary in accordance with any provision in the Earlier Regulations is to be treated as actuarial guidance issued by the Secretary of State as defined in Schedule 1 to the 2013 Regulations and any reference to guidance issued by the Government Actuary in the Earlier Regulations is to be construed as a reference to actuarial guidance issued by the Secretary of State.

(13)Regulations 70 and 71 of the Administration Regulations (abatement) continue to have effect in relation to pensions in payment deriving from the Earlier Schemes regardless of when payment of those pensions commenced.

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