Section 4I · The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014

Contents

4IStatutory underpin: calculation of provisional assumed benefits#

(1)An eligible member’s provisional assumed benefits are calculated by assessing, at the eligible member’s underpin date, the benefits the eligible member would have been entitled to under the 2014 Scheme over the underpin period if—

(a)the eligible member had paid contributions under regulation 9 of the 2013 Regulations in respect of the underpin period—

(i)including—

(aa)in respect of any period of absence from work because of illness or injury, child-related leave or reserve forces service leave;

(bb)where, on the underpin date, the eligible member left active membership with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) respectively of the 2013 Regulations, any adjustment under regulation 39 of those Regulations (calculation of ill-health pension amounts) in respect of the underpin period;

(cc)in respect of any period of absence from work with no pensionable pay in consequence of a trade dispute if the eligible member elected to cover that period by entering into an arrangement under regulation 16 of the 2013 Regulations (additional pension contributions); and

(dd)in respect of any period of absence from work with permission with no pensionable pay in respect of which the eligible member elected to cover that period by entering into an arrangement under regulation 16 of the 2013 Regulations, but

(ii)excluding—

(aa)any period where the eligible member was not an active member; and

(bb)any period of unpaid absence from work without permission;

(b)the eligible member or their Scheme employer had, in respect of the underpin period, paid no additional contributions under—

(i)regulation 16 of the 2013 Regulations, other than additional contributions paid under that regulation to cover a period of absence from work with no pensionable pay, as is set out in sub-paragraph (a)(i),

(ii)regulation 17 of the 2013 Regulations,

(iii)regulation 25(1) of the Administration Regulations 2008, or

(iv)regulation 60(1) of the 1997 Regulations ;

(c)the eligible member had not been awarded additional annual pension under regulation 31 of the 2013 Regulations;

(d)the scheme had received no transfer value payment in respect of the eligible member, except for a transfer value payment received from—

(i)a Chapter 1 scheme,

(ii)a judicial scheme, or

(iii)another local government scheme,

where service in that scheme was remediable service and there was no continuous break of more than five years in active membership of a public service pension scheme since the remediable service was accrued;

(e)the revaluation adjustment (as defined in Schedule 1 to the 2013 Regulations) that would have applied to the eligible member’s provisional assumed benefits had they been benefits built up in an active member’s pension account, had been made up to and including the eligible member’s underpin date;

(f)no transfer value payment had been made to the eligible member’s pension account under regulation 10(5) or (6); and

(g)where the balance in the eligible member’s pension account at the underpin date had been adjusted on account of any pension debit or Scheme pays election, that adjustment had not occurred.

(1A)Where the eligible member’s underpin date is the date specified in regulation 4G (3) or (4) (statutory underpin: underpin date), the calculation in paragraph (1) must be carried out in accordance with actuarial guidance issued by the Secretary of State.

(2)Where paragraph (1)(a)(i)(cc) or (dd) apply, the additional pension purchased is to be included in the provisional assumed benefits as if it were pension credited to the eligible member’s pension account on the earliest of—

(a)31st March in the Scheme year in which the absence ended;

(b)31st March 2022; and

(c)the member’s underpin date.

(3)Where paragraph (2) applies, if the eligible member fails to pay all of the additional pension contributions due, only the amount of additional pension credited to the pension account is to be included in the provisional assumed benefits (but see paragraph (4)).

(4)Paragraph (3) does not apply if the eligible member fails to pay all the additional pension contributions due because—

(a)the eligible member left active membership of the 2014 Scheme under regulation 35 of the 2013 Regulations with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) of those Regulations respectively; or

(b)the eligible member died as an active member.

(5)Where paragraph (3) does not apply by virtue of paragraph (4), the eligible member is treated as having paid the additional pension contributions referred to in paragraph (1)(a)(i)(cc) or (dd) in full.

(6)Where paragraph (1)(a)(i)(cc) or (dd) apply in relation to a period during which the eligible member was paying reduced contributions under regulation 10 of the 2013 Regulations, the additional pension included in the provisional assumed benefits for that period is that which would have been payable had the eligible member not been paying reduced contributions.

(7)Where the eligible member has qualifying service for less than a period of two years, the member is treated as having qualifying service for a period of two years for the purpose of calculating their provisional assumed benefits.

(8)Paragraph (9) applies where, after the eligible member’s underpin date, the eligible member completes—

(a)a transfer in of remediable service from—

(i)a Chapter 1 scheme,

(ii)a judicial scheme, or

(iii)another local government scheme; or

(b)the aggregation of remediable service from the 2014 Scheme.

(9)Where this paragraph applies—

(a)the eligible member’s provisional assumed benefits are to be calculated as at the eligible member’s underpin date taking into account their transferred in or aggregated remediable service; and

(b)any calculation of provisional assumed benefits done in respect of the pension account into which the remediable service has been transferred or aggregated is set aside.

(10)Paragraph (9) does not apply if there has been a continuous break in active membership of a public service pension scheme of more than five years since the remediable service was accrued.

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