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

Contents

4JStatutory underpin: calculation of the provisional underpin amount#

(1)The eligible member’s provisional underpin amount is calculated by assessing the benefits the eligible member would have been entitled to under the 2008 Scheme over the underpin period at the eligible member’s underpin date if—

(a)the member had accrued membership under the 2008 Scheme, rather than the 2014 Scheme;

(b)the period of membership taken into account for the purposes of sub-paragraph (a) was—

(i)the period during which the member has paid, or is treated as having paid, contributions under regulations 9 or 10 (contributions and reduced contributions) of the 2013 Regulations,

(ii)any period of unpaid absence due to a trade dispute, or absence from work with permission, otherwise than because of illness or injury, child related leave, or reserve forces service leave, 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

(iii)where the member became entitled to Tier 1 or Tier 2 benefits under regulation 35 of the 2013 Regulations, any additional period of membership that would have been added to the member’s total membership under regulation 20(2) (in respect of a Tier 1 pension) or regulation 20(3) (in respect of a Tier 2 pension) of the Benefits Regulations, up to the end of the underpin period, as if the member had been entitled to an increase in benefits under the provision in question at the underpin date;

(c)the eligible member’s final pay used to calculate the provisional underpin amount is calculated in accordance with regulations 8 to 11 of the Benefits Regulations and those regulations apply in relation to the eligible member as if those Regulations were still in force at the underpin date;

(d)the eligible member had been credited with 2008 Scheme benefits in respect of remediable service transferred from—

(i)a Chapter 1 scheme,

(ii)a judicial scheme, or

(iii)another local government scheme, 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; and

(e)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)(b)(ii) applies, the unpaid period to be used in relation to the provisional underpin amount is the proportion of the period of absence that is equal to the proportion of the full amount of contributions to be paid under the arrangement that have been paid by the eligible member.

(3)Paragraph (2) 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 with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) of the 2013 Regulations respectively; or

(b)the eligible member died.

(4)Where paragraph (2) does not apply, any part of the period of absence falling within the underpin period that is covered by the arrangement under regulation 16(1) or (3) of the 2013 Regulations (additional pension contributions) entered into by the eligible member is to be included in the calculation of the provisional underpin amount.

(5)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 underpin amount.

(6)Paragraph (7) 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.

(7)Where this paragraph applies—

(a)the eligible member’s provisional underpin amount is 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 a provisional underpin amount done in respect of the pension account into which the remediable service has been transferred or aggregated is set aside.

(8)Paragraph (7) 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.

Defined terms · 41

Show every defined term

active pension account
means a pension account in respect of which the eligible member is an active member;
Club Transfer
has the same meaning as in Schedule 1 to the 2013 Regulations.
elected member
has the same meaning as in Schedule 1 to the Local Government Pension Scheme Regulations 2013.
eligible member
has the meaning given in regulation 4A(2);
final assumed benefits
means the benefits calculated in accordance with regulation 4K;
final underpin amount
means the amount calculated in accordance with regulation 4L;
final underpin date
has the meaning given in regulation 4H(1);
HMRC
means His Majesty’s Revenue and Customs;
inactive pension account
means a pension account in respect of which the eligible member is no longer an active member.
IRMP
has the meaning given in Schedule 1 to the 2013 Regulations.
opposite-sex civil partnership
means a civil partnership formed between two persons who are not of the same sex;
original retirement pension
means the amount of the eligible member’s retirement pension as at the day of the eligible member’s first final underpin date.
pension rights accrued
includes any right to any pension, lump sum, grant or other benefit due to or in respect of a member.
provisional assumed benefits
means the benefits calculated in accordance with regulation 4I;
provisional underpin amount
means the amount calculated in accordance with regulation 4J;
public service pension scheme
has the same meaning as in section 1 of the Pension Schemes Act 1993. • “underpin date” has the meaning given in regulation 4G;
Relevant benefits
has the same meaning as in section 29 of the Welfare Reform and Pensions Act 1999.
same-sex civil partnership
means a civil partnership formed between two persons who are of the same sex;
surviving opposite-sex civil partner of a member
means a person who, at the time of a member’s death, was in a civil partnership with the member and was of the opposite sex to the member;
surviving same-sex civil partner of a member
means a person who, at the time of a member’s death, was in a civil partnership with the member and was of the same sex as the member;
surviving spouse of a same sex marriage with a member
means a person who, at the time of a member’s death, was married to the member and was of the same sex as the member.
the 1974 Regulations
means the Local Government Superannuation Regulations 1974;
the 1974 Scheme
means the occupational pension scheme constituted by the 1974 Regulations;
the 1986 Regulations
means the Local Government Superannuation Regulations 1986;
the 1986 Scheme
means the occupational pension scheme constituted by the 1986 Regulations;
the 1995 Regulations
means the Local Government Pension Scheme Regulations 1995;
the 1995 Scheme
means the occupational pension scheme constituted by the 1995 Regulations;
the 1997 Regulations
means the Local Government Pension Scheme Regulations 1997;
the 1997 Transitional Regulations
means the Local Government Pension Scheme (Transitional Provisions) Regulations 1997;
the 1998 Scheme
means the occupational pension scheme constituted by the 1997 Regulations and the 1997 Transitional Regulations;
the 2008 Scheme
means the occupational pension scheme constituted by the Administration Regulations, the Benefits Regulations and the 2008 Scheme Transitional Regulations;
the 2008 Scheme Transitional Regulations
means the Local Government Pension Scheme (Transitional Provisions) Regulations 2008;
the 2013 Regulations
means the Local Government Pension Scheme Regulations 2013;
the 2014 Scheme
means the occupational pension scheme constituted by these Regulations and the 2013 Regulations;
the Administration Regulations
means the Local Government Pension Scheme (Administration) Regulations 2008;
the appropriate person
means the eligible member or, if they are deceased, their personal representatives.
the Benefits Regulations
means the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007;
the Earlier Regulations
means the regulations by which the Earlier Schemes were constituted;
the Earlier Schemes
means the 1974, the 1986, the 1995, the 1998 and the 2008 Schemes collectively;
underpin date
has the meaning given in regulation 4G;
underpin period
has the meaning given in regulation 4A(3)