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Local Government Pension Scheme Regulations (Northern Ireland) 2002

Type Ni-Statutory-Rule

Publication 2002-11-19

Last updated 2003-02-01

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(5) The amounts must not exceed the amounts which the person specified would be entitled to be paid if no forfeiture direction were given.

(6) An interim payments direction is not a decision under regulation 98 as to any person’s entitlement to a benefit.

(7) Payments in accordance with an interim payments direction shall be deemed to be payments in respect of a benefit to which the recipient was entitled (regardless of any contrary forfeiture direction or decision under regulation 98).

Recovery or retention where former member has misconduct obligation

116

(1) This regulation applies where a person –

(a) has left an employment, in which he was or had at some time been a member, in consequence of a criminal, negligent or fraudulent act or omission on his part in connection with that employment;

(b) has incurred some monetary obligation, arising out of that act or omission, to the body which was his employing authority in that employment; and

(2) The former employing authority may recover or retain out of the fund –

(a) the amount of the monetary obligation; or

(b) the value at the time of the recovery or retention of all rights in respect of the former employee under the Scheme with respect to his previous membership (as determined by an actuary),

whichever is less.

(3) The rights specified in paragraph (2)(b) do not include rights enjoyed by virtue of the receipt of a transfer value or credited by virtue of regulation 68(4) (including that regulation as it applies by virtue of regulation 74).

(4) The former employing authority must give the former employee–

(a) not less than three months' notice of the amount to be recovered or retained under paragraph (2); and

(b) a certificate showing the amount recovered or retained, how it is calculated, and the effect on his benefits or prospective benefits.

(5) If there is any dispute over the amount of the monetary obligation specified in paragraph (1)(b), the former employing authority may not recover or retain any amount under paragraph (2) until the obligation is enforceable under an order of a competent court or the award of an arbitrator.

Protection of GMP rights

117

(1) The power –

(a) to give directions under regulation 114(2); or

(b) to recover or retain amounts under regulation 116(2),

may not be exercised so as to deprive a person of his guaranteed minimum pension or any widow’s or widower’s guaranteed minimum pension.

(2) But such a power may be so exercised if the person left his employment –

(a) because of the offence of treason; or

(b) because of one or more offences under the Official Secrets Acts 1911 to 1989[^f00036] for which the former member has been sentenced on the same occasion –

(i) to a term of imprisonment of at least 10 years, or

(ii) to two or more consecutive terms amounting in the aggregate to at least 10 years.

Transfer of sums from the fund to compensate for former member’s misconduct

118

(1) This regulation applies where –

(a) a person has left an employment in which he was a member because of –

(i) an offence of a fraudulent character, or

(ii) grave misconduct,

in either case in connection with that employment;

(b) his former employing authority in that employment has suffered direct financial loss by reason of the offence or misconduct; and

(i) the former employee became entitled to benefits under Part II or the 2000 Regulations and a direction has been given under regulation 114(2), or

(ii) he did not become so entitled and on leaving the employment became entitled to a return of contributions under regulation 88 (whether or not he has waived his right).

(2) If the former employing authority is the Committee, it may retain an appropriate amount in the fund.

(3) Otherwise, the Committee must pay the former employing authority an appropriate amount out of the fund, if requested to do so.

(4) But if a contributions equivalent premium or a payment in lieu of contributions is due or has been made in respect of the former employee, the Committee may reduce an amount retained under paragraph (2) or a payment under paragraph (3) by the amount of any contributions equivalent premium and by half the amount of any payment in lieu of contributions.

(5) An appropriate amount is an amount not exceeding –

(a) the amount of the direct financial loss; or

(b) the amount of any contributions which could have been returned to the former employee, or paid to his spouse or a dependant, under regulation 89(2) or regulation C21(4) of the 2000 Regulations, less the amount of any which have been so returned or paid,

whichever is the less.

(6) If after making a payment under paragraph (3) the Committee is required to make any transfer payment under Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993[^f00037] or under regulation 122 for a former employee, the former employing authority must repay it, if requested to do so.

CHAPTER VI — TRANSFERS

Transfers out

Application of Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993

119

(1) For sections 8C[^f00038] (requirements as to transfer, commutation etc. for contracting-out), 15 (discharge of liability) and 16 (transfer of accrued rights) and Chapter IV of Part IV (transfer values) of the Pension Schemes (Northern Ireland) Act 1993 and any regulations made under any of those sections or that Chapter, the managers of the Scheme in relation to a member are the Committee.

(2) Despite regulation 2 of the Occupational Pension Schemes (Transfer Values) Regulations (Northern Ireland) 1996[^f00039] (pre-1986 leavers), Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993 shall apply to all members of the Scheme regardless of the date their membership ended.

(3) The references in regulation 4 of those Regulations to regulation 3 of those Regulations include a reference to regulation K7(2) of the 2000 Regulations and any corresponding earlier provisions.

(4) Regulation 5 of those Regulations (treatment of a number of employments as a single employment) only applies if the employments are treated as a single employment for the purposes of the Scheme.

(5) Sub-paragraph (a) of regulation 10(2) of those Regulations (interest on late payment of cash equivalents) does not apply where the member has required the cash equivalent to be paid to a club scheme.

(6) Regulation 18 of those Regulations (termination of pensionable service in certain circumstances to be disregarded) only applies if –

(a) in the case of a termination before the commencement date, no election was made under regulation D12(1)(c) of the 2000 Regulations (or any corresponding earlier provision) in respect of the membership which ended; and

(b) in any case, no election has been made under regulation 34(1) to have the membership which ended aggregated with later service.

Rights to payment out of the fund

120

(1) The amount of any transfer payment due in respect of a member under Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993 is payable by the Committee from the fund.

(2) Where such a transfer payment is to be or has been paid from the fund, no other payment or transfer of assets may be made from the fund as respects the accrued rights covered by the transfer payment.

(3) Paragraph (2) overrides anything to the contrary in the former regulations, any other provision of these Regulations or the Transitional Regulations.

Contracting-out requirements affecting transfers out

121

(1) There must be deducted from the transfer payment to be made in respect of any person –

(a) the amount of any contributions equivalent premium payable pursuant to section 51 of the Pension Schemes (Northern Ireland) Act 1993; or

(b) an amount sufficient to meet the liability in respect of his contracted-out rights.

(2) But the amount mentioned in paragraph (1)(b) may not be deducted where –

(a) the transfer payment is made to an occupational pension scheme which is contracted-out or an appropriate personal pension scheme; and

(b) that scheme’s trustees or managers undertake to accept liability for his contracted-out rights.

(3) Where the amount mentioned in paragraph (1)(a) is deducted, if the Committee thinks fit, that amount may be used in preserving the liability mentioned in paragraph (2)(b) in the fund.

(4) Otherwise, it must be used in paying the premium.

(5) Contracted-out rights, in relation to a member, are –

(a) his and his surviving spouse’s rights to guaranteed minimum pensions; and

(b) his section 5(2B) rights (as defined in regulation 1(2)) of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996)[^f00040].

Bulk transfer arrangements

Bulk transfers (transfers of undertakings) etc.

122

(1) This paragraph applies where –

(a) two or more members' active membership ends on their joining an approved non-local government scheme (“the new scheme”);

(b) it is agreed by –

(i) the Committee,

(ii) the members' employing authorities (if different), and

(iii) the trustees or managers of the new scheme,

that a payment should be made under this regulation; and

(c) the members agree in writing that that payment should be made instead of any payment which they otherwise might require to be made under Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993 and waive any rights they might have under that Chapter by virtue of the cessation of their active membership.

(2) The Committee must not give its agreement under paragraph (1)(b) unless it is satisfied that the rights each of the members will acquire under the new scheme are at least equivalent to those which he would have obtained if a transfer value had been paid to the same scheme under Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993, as it applies by virtue of regulation 119, (assuming in any case where the member would not be entitled to such a payment that he was).

(3) The Committee must provide each member with sufficient information in writing to check that the requirement of paragraph (2) is satisfied before he agrees as mentioned in paragraph (1)(c).

(4) Where paragraph (1) applies, the Committee must –

(a) set aside (whether in cash or in assets or both) such part of the fund (“the transfer payment”) as an actuary appointed by it and an actuary appointed by the scheme managers of the new scheme for the purpose may agree as appropriate for the acquisition of such rights in that scheme as they may so agree; and

(b) pay or transfer it to the trustees or managers of the new scheme for the benefit of the relevant members.

(5) The Committee must certify to the new scheme’s trustees or managers the amount included in the transfer payment which represents each member’s contributions.

(6) Where a transfer payment is to be or has been made under this regulation, no other payment or transfer of assets shall be made from the fund by reason of membership covered by the transfer payment.

(7) Paragraph (6) overrides anything to the contrary in the former Regulations or these Regulations.

Calculation of amount of transfer payment under regulation 122

123

(1) The amount of the transfer payment to be paid under regulation 122 is the amount determined by an actuary appointed by the Committee to be equal to the value at the date the members join the new scheme of the actual and potential liabilities payable from the fund which have then accrued in respect of the members and the persons who are or may become entitled to benefits under the Scheme through them.

(2) The actuary may make such adjustments as he thinks fit in calculating that amount and, in particular, as respects the period from that date to the date of actual payment of the transfer value.

(3) He must specify in his valuation the actuarial assumptions he has used in making it.

(4) The employing authority shall bear the costs of determining the appropriate part of the fund and apportioning the fund.

(5) But if there is more than one employing authority involved, each shall bear such part of the costs as the actuary determines to be appropriate.

Transfers in

Inward transfers of pension rights

124

(1) If a person who becomes an active member has relevant pension rights, he may request the Committee to accept a transfer value for some or all those rights from the relevant transferor.

(2) Relevant pension rights are accrued rights under –

(a) an occupational pension scheme (other than the Scheme);

(b) a personal pension scheme;

(c) a retirement annuity contract approved by the Commissioners of Inland Revenue under section 620 or 621 of the Taxes Act; or

(d) a self-employed pension arrangement,

but do not include rights to benefits under a scheme, contract or arrangement which are attributable (directly or indirectly) to a pension credit.

(3) Accrued rights include rights to preserved benefits and rights appropriately secured under section 19 of the Pension Schemes (Northern Ireland) Act 1993.

(4) The relevant transferor is the trustees or managers of the scheme, contract or arrangement under which the transferring person’s relevant pension rights arise.

(5) But the relevant transferor for the rights specified in paragraph (3) is the trustees or managers of the scheme, contract or arrangement, or the insurance company, to which a payment in respect of his accrued rights has been made.

(6) A request from a transferring person under paragraph (1) must be made by notice in writing.

(7) That notice must be given before the expiry of the period of 12 months beginning with the date he became an active member (or such longer period as the Committee may allow).

(8) Where a request under paragraph (1) is duly made the Committee may accept the transfer value and credit it to the pension fund.

Right to count credited period

125

(1) Where a transfer value has been accepted under regulation 124, the member may count the credited period as a period of membership for these Regulations (but see Schedule 3).

(2) If the transfer value –

(a) is paid by the trustees or managers of a club scheme;

(b) represents all the rights relating to the member in that scheme;

(i) in a case where Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993 applies, in accordance with that Chapter, and

(ii) otherwise, in a manner consistent with that prescribed under that Chapter,

the credited period is the period which, if used to calculate a transfer value to be paid by the Scheme, would produce an amount equal to the transfer value received.

(3) If the transfer value is not paid by the trustees or managers of a club scheme, the credited period must be calculated in a manner consistent with that Chapter.

(4) In calculating the credited period under paragraph (3) due allowance must be given for the expected increase in the member’s pensionable pay between the date he became a member (or, if more than twelve months later or such longer period as the Committee may allow, the date on which the transfer value is received) and his normal retirement date or, if earlier, the date on or after the member’s 60th birthday on which the sum of items referred to in sub-paragraphs (a) to (c) of regulation 33(4) is 85 years or more.

(5) If the member is a man, the credited period must be treated as a period after 5th April 1978.

(6) If the member is a woman, the credited period must be treated as a period after 31st March 1972.

(7) The Committee must give the member a written notice stating the period of membership he may count under paragraph (1).

(8) The notice must contain a statement of the kind required by regulation 100(2)(c)(i).

Credited periods for transferring members with mis-sold pension rights

126

(1) Regulation 125(3) does not apply where –

(a) the transferring person is a person about whom information may be given under Article 164(1) of the Pensions (Northern Ireland) Order 1995 (mis-sold personal pensions), as it has effect in the case of the Scheme (see regulation 111); and

(b) the transfer value satisfies the conditions specified in paragraph (2).

(2) Those conditions are –

(a) that it is paid by the trustees or managers of the personal pension scheme mentioned in Article 164(1)(a)(ii) of that Order;

(b) that it represents all the rights relating to the member in that scheme;

(c) that it is paid on an application made to the Committee before the expiry of the period of 12 months beginning with the date the transferring person becomes an active member (or such longer period as it may allow); and

(d) that in the opinion of the Committee it is not less than the restitution amount.

(3) Where paragraph (1) applies, the credited period is the period of membership the transferring person could have counted if he had been an active member throughout the personal pension period.

(4) The restitution amount is the aggregate –

(a) of the amount that would be necessary (as at the date on which the request for the calculation of the restitution amount is received by the Committee) to purchase a period of membership for these Regulations equal to the length of the personal pension period on the basis of a transfer from a scheme which is not a club scheme (including the value of rights under the Pensions (Increase) Act (Northern Ireland) 1971[^f00041] and the Pensions (Increase) (Northern Ireland) Order 1974[^f00042]);

(b) of the transfer value paid out of the Scheme to the personal pension scheme; and

(c) of interest on any such transfer value at such rate as is approved for the time being by the Government Actuary, calculated over the period commencing with the date on which that transfer value was paid out of the Scheme and ending with the date as at which the transfer value is taken to be paid to the Scheme.

(5) The Committee must determine the amount mentioned in paragraph (4)(a) in such manner as is for the time being indicated in guidance issued by the Government Actuary.

(6) The personal pension period is the period for which the transferring person was eligible to be an active member but in respect of which he made contributions to the personal pension scheme instead.

(7) Where a transfer value has been accepted in relation to a woman to whom this regulation applies and in respect of whom a transfer value has been paid previously by the Committee to a personal pension scheme any part of which transfer value was attributable to membership before 5th April 1988, then the credited period shall be apportioned as membership before 6th April 1988 and as membership after 5th April 1988 in the same proportions as it would have been had the woman become or remained a member of the Scheme throughout the personal pension period.

(8) If in the opinion of the Committee the transfer value does not satisfy the conditions specified in paragraph (2) for the reason only that it is less than the restitution amount, the Committee may accept the transfer value on the basis that the credited period which the member may count is such proportion of the personal pension period as the Committee determines.

Rights as to service not matched by credited period

127

(1) Where the member’s transferred-in service exceeds the credited period, he may count the excess as a period which counts towards his total membership for the purposes of the provisions mentioned in paragraph (2).

(2) Those provisions are –

(a) regulation 18(1) (general qualification for benefits);

(b) paragraphs (a) and (b) of the definition of “normal retirement date” in regulation 26(3);

(d) regulation 88(1) (return of contributions).

(3) A period which may be counted under paragraph (1) counts as its actual length.

(4) The Committee must give the member a written notice stating the period of membership he may count under paragraph (1).

(5) The notice must contain a statement of the kind required by regulation 100(2)(c)(i).

(6) The transferred-in service of a transferring member is the service in respect of which he has accrued rights to benefits under his previous occupational pension scheme or appropriate policy (whether or not the transfer value covers all those rights).

(7) The period of that service is the period certified by the trustees or managers of that scheme or issuers of that policy.

Community scheme transferees

128

(1) Community scheme transferees and their surviving spouses, dependants and children are entitled to such rights under the Scheme as are specified in guidance issued by the Government Actuary.

(2) A Community scheme transferee is a person who became employed by a Community institution after having been employed in local government employment.

PART V — SPECIAL CASES

CHAPTER 1 — ELIGIBILITY

Separate employments etc.

129

(1) Where a person holds separate employments under one Scheme employer, these Regulations apply as if each of them were with a different employer.

(2) For the purposes of these Regulations, a clerk of a district council who performs functions under Article 9(2) (conduct of elections) of the Electoral Law (Northern Ireland) Order 1972[^f00043] shall, in relation to those functions, be treated as if he were employed by that district council and any fees paid to him in connection with those functions shall be treated as remuneration paid to him by that district council.

CHAPTER II — CONVERSION OF DISCRETIONARY PAYMENTS REGULATIONS PERIODS INTO MEMBERSHIP

Conversion of periods credited under Discretionary Payments Regulations etc. into membership

130

(1) Where, apart from paragraph (9) of regulation 54, an employing authority could pass a resolution under that regulation to increase a person’s total membership, it may resolve that his total membership be increased by the whole or part of the period credited to him as mentioned in that paragraph.

(2) Where –

(a) any person has been credited by an employer (“the transferor employer”) under any scheme, the terms of which correspond to Part III of the Local Government (Discretionary Payments) Regulations (Northern Ireland) 2001[^f00044] with a period of service in respect of a former employment;

(b) the transferor employer’s liability in respect of payments falling due to that person as respects that credited period has been transferred to an employing authority;

(i) the person’s employment with the transferor employer had been employment with the employing authority, and

(ii) any actions taken by the transferor employer under the scheme mentioned in sub-paragraph (a) had been taken by that authority,

that authority could pass a resolution under regulation 54 to increase his total membership,

it may resolve that his total membership be increased by the whole or part of the period credited to him.

(3) The additional period must not exceed the period which would be the maximum additional period under regulation 54 if –

(a) a resolution under that regulation could be passed in relation to him; and

(b) the period of 10 years were substituted for the period of 6 243/365 years in paragraph (2)(d) of that regulation.

(4) The additional period may only be counted as a period of membership if –

(a) the employing authority and the Committee agree that the employing authority will pay increased contributions under regulation 79 to meet the cost of the increase in membership; or

(b) the employing authority makes the payment which is required by regulation 80(2) within the period specified in that regulation,

but it may be so counted as from the date from which the resolution has effect.

(5) If the employing authority fails to pay those increased contributions or make that payment, the resolution shall cease to have effect.

(6) Where the resolution has effect, the period credited as mentioned in regulation 54(9) is reduced or extinguished accordingly (but without prejudice to any payments which have fallen due or have been made before that date).

(7) No resolution may be passed under this regulation, the result of which would be to place any individual in a worse position than he would otherwise be.

(8) If the person was credited as mentioned in regulation 54(9) on or after the commencement date, this regulation only applies if –

(a) the employing authority is an authority which has reasonable grounds to believe that it will cease to exist as a result of a provision made by or under an enactment; or

(b) the employing authority has ceased to exist as a result of any such provision;

and where sub-paragraph (b) applies “employing authority” includes the body to which the former employing authority’s functions as respects the former employee in question have been transferred in connection with its cessation.

CHAPTER III — RIGHTS UNDER ARTICLE 14 OF THE SUPERANNUATION (NORTHERN IRELAND) ORDER 1972

Rights under Article 14 of the Superannuation (Northern Ireland) Order 1972

131

(1) If, apart from this regulation, any provision of these Regulations, which re-enacts with any modification any provision of the Scheme which ceases to have effect by virtue of the Transitional Regulations in relation to any person to whom a relevant benefit is or may become payable, would place him in a worse position in relation to that benefit than that he would have been in if that modification had not been made and he makes an election under this paragraph, these Regulations shall have effect, in relation to him and to that benefit, as if these Regulations had re-enacted that provision of the Scheme without modification (but see paragraph (4)).

(2) An election under paragraph (1) must be made by notice in writing given to the Committee within the period of six months beginning with the commencement date.

(3) In this regulation –

“relevant benefit” means a benefit payable to, or in respect of, a person who before the commencement date – ceased to hold an employment in which he was an active member (whether or not he has subsequently become an active member again); or died while in such employment; and

“benefit” includes a return of contributions and any pension payable to a widow, widower or any dependant by virtue of a surrender.

(4) If an election under paragraph (1) is made in relation to a benefit in respect of a person who is an active member, or subsequently becomes an active member again –

(a) the election shall have effect in relation to the benefit only to the extent that it accrues or has accrued by virtue–

(i) of periods of membership before the cessation referred to in paragraph (3) (or, if there has been more than one such cessation, the last of them before the commencement date); or

(ii) of contributions paid in respect of such periods of membership; and

(b) in determining entitlement to, or the amount of, the benefit to that extent, he shall be treated as if he had never become an active member again at any time after the cessation referred to in paragraph (3) (but without prejudice to the application of this paragraph);

and these Regulations shall have effect accordingly.

Interpretation

132

References in this Part to a pension credit member are to that person in relation to his pension credit rights and not in relation to any other rights he may have under the Scheme.

Discharge of liability for pension credit rights

133

(1) The Committee may discharge its liability in respect of a pension credit in accordance with either sub-paragraph (2) or sub-paragraph (3) of paragraph 1 of Schedule 5 to the 1999 Order.

(2) Where the Committee discharges its liability by conferring pension credit rights on the person entitled to the pension credit, those rights shall be to –

(a) a pension and a lump sum grant; and

(b) a death grant.

(3) A pension credit member is not entitled to a lump sum grant if the transferor has been paid a retirement grant before the valuation date.

(4) The pension at the valuation date shall be calculated –

(a) by reference to the value of the pension credit member’s pension credit rights calculated in accordance with regulation 10 of the Pension Sharing (Implementation and Discharge of Liability) Regulations (Northern Ireland) 2000[^f00045]; and

(b) in accordance with guidance issued by the Government Actuary.

Aggregation

134

(1) Pension credit rights or pension credit benefits may not be aggregated with any other rights or benefits under the Scheme (including those attributable to a different pension credit).

(2) Where a pension credit member is also an active member, he may not count any period which may count for any purpose as a period of membership in connection with his pension credit benefits towards the membership period required before he is entitled to any benefit which relates to his active membership, or in the calculation of that benefit.

Death of person entitled to a pension credit before discharge

135

(1) Where a person entitled to a pension credit dies before liability in respect of his pension credit has been discharged in accordance with regulation 133(1), such liability shall be discharged by the Committee by the payment of a lump sum.

(2) The lump sum shall be equal to three times the annual rate of the pension that would have been paid to him if on the date of his death he had become entitled to a pension as a pension credit member, calculated in accordance with guidance issued by the Government Actuary.

(3) The Committee shall pay the lump sum to the deceased’s personal representatives.

Safeguarded rights

136

(1) A pension credit member’s safeguarded rights for the purposes of the Scheme and of the Pension Schemes (Northern Ireland) Act 1993 and regulations made under that Act are such of his rights falling within section 64A(1)[^f00046] of that Act as represent the safeguarded percentage of the rights acquired by him in the Scheme by virtue of the pension credit.

(2) The “safeguarded percentage” is the percentage of the shareable rights by reference to which the amount of the pension credit is determined which are contracted-out rights.

(3) “Contracted-out rights” has the meaning given in section 64A(5) of the Pension Schemes (Northern Ireland) Act 1993.

Valuation date

137

For the purposes of –

(a) calculating the cash equivalent referred to in Article 27(2) of the 1999 Order; and

(b) regulation 133(3) and (4) and regulation 139(1),

the valuation date shall be the first day of the implementation period as defined in Article 31(1) of that Order.

CHAPTER II — PENSION CREDIT MEMBERS AND PENSION CREDIT

Application of the Regulations to pension credit members

138

Part I (preliminary provisions), regulations 95 (interest on late payment of certain benefits), 96 (payments due in respect of deceased persons) and 97(non-assignability) and Chapter IV (determinations, information and records) of Part IV (Administration) of these Regulations apply to a pension credit member.

Calculation

139

(1) The annual rate of the pension at normal benefit age shall be the pension calculated as referred to in regulation 133(4), increased in accordance with the Pensions (Increase) Act (Northern Ireland) 1971[^f00047] and, if applicable, the Pensions Increase (Northern Ireland) Order 1974 from the valuation date.

(2) The lump sum grant shall be equal to three times the annual rate of the pension.

Payment of benefits

140

(1) A pension credit member who attains normal benefit age is entitled to the immediate payment of a pension and, if applicable, a lump sum grant.

(2) The pension and the lump sum grant are payable from the fund.

(3) The pension is payable for life.

Death grants

141

(1) When a pension credit member dies before he attains the age of 70, the Committee shall pay a death grant.

(2) The amount of the death grant of a pension credit member who dies before his normal benefit age is a lump sum equal to three times the annual rate of the pension that would have been paid to him if on the date of his death he had become entitled to that pension.

(3) The amount of the death grant of a pension credit member who dies after he is in receipt of a pension under this Part is a lump sum equal to five times the annual rate of the pension being paid to him at the date of his death but reduced by the amount of any payments of that pension made to him under regulation 140.

(4) The Committee at its absolute discretion may make payments of a death grant to or for the benefit of the pension credit member’s nominee or personal representatives, or any person appearing to the Committee to have been his relative or dependant at any time.

(5) If the Committee has not made payments under paragraph (4) equalling in aggregate the pension credit member’s death grant before the expiry of the period of two years beginning with his death, it must pay an amount equal to the shortfall to the pension credit member’s personal representatives.

Commutation: small pensions

142

(1) If the annual rate of the pension to which a pension credit member is entitled is –

(a) not more than £195, if he has received a lump sum grant; or

(b) otherwise, not more than £260,

the Committee may pay him a lump sum representing the capital value of the pension.

(2) If the pension credit member is entitled to more than one pension under the Scheme, a lump sum is only payable if the aggregate amount payable to that member is less than £195 or £260, as the case may be.

(3) The capital value of the pension must be calculated in accordance with guidance issued by the Government Actuary.

(4) The payment of a lump sum in respect of a pension due to the pension credit member under this regulation discharges the Committee from its liability for the pension.

(5) The Committee must deduct from any payment under this regulation any tax to which it may become chargeable under section 599 of the Income and Corporation Taxes Act 1988[^f00048].

Commutation: serious ill-health

143

(1) In circumstances where a pension credit member is suffering from serious ill-health at any time prior to the date when he first becomes entitled to receive a pension under this Part, the whole of that pension may be commuted for a lump sum and the total of –

(a) that lump sum; and

(b) the lump sum grant (if applicable)

(“the commutation payment”) paid to the pension credit member.

(2) The lump sum referred to in paragraph (1)(a) shall be equal to five times the annual rate of the pension to which the pension credit member would have been entitled if on the date of commutation he had reached the normal benefit age.

(3) If applicable, the lump sum grant shall be equal to three times that annual rate.

(4) In this regulation, “serious ill-health” means ill-health which is such as to give rise to a life expectancy of less than one year from the date on which commutation of the pension is to take effect.

(5) Before making any decision as to whether a pension credit member may be entitled under paragraph (1), the Committee must obtain from an independent registered medical practitioner which it has appointed a certificate as to whether in his opinion the pension credit member is suffering from serious ill-health.

(6) Payment of the commutation payment discharges the Committee’s liability to the pension credit member in respect of his pension credit benefits.

(7) The Committee must deduct from the commutation payment any tax to which it may become chargeable under section 599 of the Income and Corporation Taxes Act 1988.

CHAPTER III — TRANSFERS

Transfers out

144

For the purposes of Chapter II of Part IVA[^f00049] of the Pension Schemes (Northern Ireland) Act 1993 (requirements relating to pension credit benefits), the managers of the Scheme in relation to a pension credit member is the Committee.

Transfers in

145

(1) A pension credit member is not entitled to request the Committee to accept a transfer value for relevant pension rights and the Committee must not accept a transfer value of such rights where they have accrued to a pension credit member.

(2) “Relevant pension rights” has the meaning given in regulation 124(2).

SCHEDULE 1 — INTERPRETATION

“The Act of 1937” means the Local Government Superannuation Act 1937[^f00050] or the Local Government Superannuation (Scotland) Act 1937[^f00051];

“The Act of 1950” means the Local Government (Superannuation) Act (Northern Ireland) 1950[^f00052];

“The Act of 1953” means the Local Government Superannuation Act 1953[^f00053];

“The Acts of 1937 to 1953” means the Act of 1937 and the Act of 1953;

“The Act of 1959” means the National Insurance Act (Northern Ireland) 1959[^f00054];

“The Act of 1975” means the Social Security (Northern Ireland) Act 1975[^f00055];

“The 1950 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1950[^f00056];

“The 1962 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1962[^f00057];

“The 1981 Regulations” means the Local Government (Superannuation) Regulations (Northern Ireland) 1981[^f00058];

“The 1992 Regulations” means the Local Government (Superannuation) Regulations 1992[^f00059];

“The 1999 Act” means the Welfare Reform and Pensions Act 1999[^f00060];

“The 1999 Order” means the Welfare Reform and Pensions (Northern Ireland) Order 1999[^f00061];

“The 2000 Regulations” means the Local Government Pension Scheme Regulations (Northern Ireland) 2000[^f00062];

“active member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995[^f00063];

“actuary” means a Fellow of the Institute of Actuaries or of the Faculty of Actuaries;

“added years” has the meaning given in Schedule A1 to the 2000 Regulations;

“additional voluntary contributions provision” is a provision of an occupational pension scheme approved under section 591 of the Taxes Act, which provides for the payment by employees of voluntary contributions;

“additional voluntary contributions scheme” means a scheme approved under section 591 of the Taxes Act, to which an employer is not a contributor and which provides benefits additional to those provided by an occupational pension scheme;

“admission agreement” has the meaning given in regulation 4(2);

“admission agreement employee” means such an employee as is mentioned in regulation 4.

“admission body” means a body mentioned in regulation 4(3);

“appropriate personal pension scheme” means a personal pension scheme for which there is in force a certificate issued in accordance with regulations made under section 3 of the Pension Schemes (Northern Ireland) Act 1993;

“appropriate policy” means a policy of insurance or annuity contract which provides an annuity which satisfies requirements prescribed under section 91(2)(c) of the Pension Schemes (Northern Ireland) Act 1993[^f00064];

“approved AVC body” means a building society or a person operating an approved scheme which provides benefits in respect of persons who have paid contributions in addition to those provided in relation to them under an occupational pension scheme;

“approved non-local government employment” means employment in which a person participates in an approved non-local government scheme;

“approved non-local government scheme” means a non-local government scheme which is – approved under Part XIV of the Taxes Act; or approved by the Commissioners of Inland Revenue for the purposes of these Regulations;

“approved scheme” has the meaning given in section 612 of the Taxes Act;

“Assembly” means the Northern Ireland Assembly;

“AVCs” means contributions made under regulation 63;

“AVC insurer” means – a person who has permission under Part IV of the Financial Services and Markets Act 2000[^f00065] to carry out contracts of long-term insurance; or an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long term insurance, and this definition must be read with – section 22 of the Financial Services and Markets Act 2000; any relevant order under that section; Schedule 2 to that Act;

“AVC pension policy” means a contract entered into on behalf of a member by the Committee with an AVC insurer for the payment by the company of pension benefits to the intended recipients of those benefits which are in addition to those payable under Part II and Chapters II and III of Part III;

“away on jury service”, in relation to a person, means being away from work with permission given so that he could – attend for jury service in pursuance of a summons under the Juries (Northern Ireland) Order 1996[^f00066]; or attend as a juror at an inquest under the Coroners Act (Northern Ireland) 1959[^f00067];

“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

“Belfast Corporation” means the council of the former county borough of Belfast;

“The Belfast Corporation Superannuation Scheme” means the superannuation scheme made by Belfast Corporation under section 5A[^f00068] of the Act of 1950, on 4th August 1964 or 20th April 1951 (both as amended) as the circumstances require;

“building society” has the meaning given in the Building Societies Act 1986[^f00069];

“cancelling notice”, in relation to a person’s relevant reserve forces service, means – the agreement (by a member who has not waived his right to receive a return of contributions under regulation 88) to receive them; or a notice in writing given by him to the Committee not later than 12 months after the end of the period of service to which the notice relates (or within such longer period as it may allow) that the service should not be treated as relevant reserve forces service;

“child” has the meaning given in regulation 46;

“Class A member”, “Class B member” and “Class C member” have the meanings given in paragraph 1(1) of Schedule 4 and “Class B membership” and “Class C membership” shall be construed accordingly;

“club scheme” means an occupational pension scheme which – provides benefits calculated by reference to final pay; (except where it is established and maintained in the Channel Islands or the Isle of Man) is approved by the Commissioners of Inland Revenue under Chapter I of Part XIV of the Taxes Act; is open to new participants, or is a closed scheme the trustees or managers of which also provide an open scheme which is a club scheme for new employees of the same employer and of the same grade or level of post as the participants in the closed scheme; and complies with reciprocal arrangements for the payment and receipt of transfer values with the schemes made under Article 9 of the Order of 1972;

“The Committee” means the Northern Ireland Local Government Officers' Superannuation Committee established under section 1 of the Act of 1950;

“The Communities' scheme” means the pension scheme provided for officials and other servants of the Communities in accordance with regulations adopted by the Council of the European Communities;

“Community institution” includes a body treated as one of the Communities' institutions for the purposes of the Communities' scheme;

“continuity conditions” has the meaning given in paragraph 1(1) of Schedule 4;

“contracted-out employment” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993 and “contracted-out”, in relation to a scheme, must be construed in accordance with that Act;

“contractual hours” – in relation to an employee (other than an employee with non-cyclical fluctuating hours), means the number of hours specified in his contract of employment as his contractual hours for the purposes of the Scheme; and in relation to an employee with non-cyclical fluctuating hours, means the number of hours calculated as his contractual hours for the purposes of the Scheme in accordance with the provisions of his contract of employment;

“contractual weeks”, in relation to an employee, means the number of weeks in every period of 12 months for which, assuming he is not away on unpaid leave, pay is payable to him;

“contract of employment” includes terms of office;

“contributory employee” means a person who was entitled to participate in the benefits of a superannuation fund maintained under Part I of the Act of 1937;

“deferred member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995, except as provided in regulation 34(3) and (5);

“the Department” means the Department of the Environment;

“earnings factors” means the earnings factors referred to in section 10 of the Pension Schemes (Northern Ireland) Act 1993;

“eligible child” has the meaning given in regulation 46;

“employee” includes a permanent, temporary or casual employee;

“employing authority” means a body employing an employee who is eligible to be a member;

“employment” includes office;

“equivalent pension benefit” has the same meaning as in section 56(1) of the National Insurance Act (Northern Ireland) 1966[^f00070];

“fees” includes other payments in the nature of fees;

“final pay” shall be construed in accordance with regulation 22;

“final pay period” shall be construed in accordance with regulations 22 and 23;

“fluctuating emoluments” are any part of an employee’s earnings which are not paid on a fixed basis and are additional to the basic wage or salary;

“former local authority” means a body, other than a Scheme employer, which was a local authority within the meaning of the Act of 1937 as originally enacted;

“the former regulations” means the 2000 Regulations, or as the circumstances require, the 1992 Regulations, the 1981 Regulations, the 1962 Regulations or the 1950 Regulations and shall be deemed also, in the case of a member who immediately before 1st April 1973 was subject to the Belfast Corporation Superannuation Scheme to include the provisions of that Scheme;

“FSAVC scheme” means a scheme approved by virtue of section 591(2)(h) of the Taxes Act;

“the fund” means the superannuation fund established under the 1950 Regulations;

“Government department” has the meaning given in section 176 of the Pension Schemes (Northern Ireland) Act 1993;

“the Great Britain Acts” means the National Insurance Acts 1965 to 1974[^f00071];

“guaranteed minimum pension” means the guaranteed minimum as defined in sections 10 and 13 of the Pension Schemes (Northern Ireland) Act 1993 (minimum pensions for earners, widows and widowers), so far as it is attributable to earnings factors for the tax year 1988-89 or for subsequent tax years, increased in accordance with the requirements of section 105 of that Act (annual increase of guaranteed minimum pensions);

“ill-health pension” and “ill-health grant” shall be construed in accordance with regulation 29;

“the Insurance Act” means the National Insurance Act (Northern Ireland) 1966;

“the Isle of Man Act” means the National Insurance (Isle of Man) Act 1961 (an Act of Tynwald);

“local Act contributor” means a person who was entitled to participate in the benefits of a pension fund maintained under a local Act scheme;

“local Act scheme” has the meaning given in section 8 of the Superannuation Act 1972[^f00072], except that where it refers to any time before 25th March 1972 it has the same meaning as in the Act of 1937;

“local authority” has the meaning assigned to it by Article 2 of the Order of 1972 and shall include the Northern Ireland Housing Executive;

“local government auditor” has the same meaning as in the Local Government Act (Northern Ireland) 1972[^f00073];

“local government employment” means – in relation to any time before 1st March 1993, employment by virtue of which the person employed was, or is deemed to have been, a contributory employee or a local Act contributor; and in relation to any time after 28th February 1993, means employment by virtue of which the person employed is or has been, or is or has been deemed to be a member of the Scheme, or a pensionable employee (within the meaning of the 1992 Regulations) or a local Act contributor;

“lower earnings limit” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“manual worker” is an employee who is not an officer;

“maternity rights returner” is a woman who exercises a right to return to work after being away from work wholly or partly because of pregnancy or confinement;

“member” has the same meaning as in Article 121(1) of the Pensions (Northern Ireland) Order 1995 except that it shall not include a pension credit member except where specific reference is made to such member in regulation 95;

“Minister” means the Minister of the Environment;

“money purchase benefits” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“non-cyclical fluctuating hours” means hours which the employing authority are entitled to require the employee to work in a contractual week in any case where those hours vary in a way which is not cyclical;

“non-local government scheme” means an occupational pension scheme or other arrangements for superannuation, not being – the superannuation scheme provided in regulations made under the Act of 1950; or the superannuation scheme provided in regulations for the time being in force under Article 9 of the Order of 1972;

“normal benefit age” means 65;

“normal retirement age” has the meaning given in regulation 26(3);

“normal retirement date” has the meaning given in regulation 26(2);

“occupational pension scheme” means an occupational pension scheme within the meaning of section 1 of the Pension Schemes (Northern Ireland) Act 1993 other than – a retirement benefits scheme (as defined in section 611 of the Taxes Act) which is not of a description mentioned in section 596(1)(a), (b) or (c) of that Act; an additional voluntary contributions scheme; an appropriate policy; a personal pension scheme; or a self-employed pension arrangement;

“officer” means an employee whose duties are wholly or mainly administrative, professional, technical or clerical;

“official pension” has the meaning given in the Pensions (Increase) (Northern Ireland) Act 1971[^f00074];

“the Order of 1972 ”means the Superannuation (Northern Ireland) Order 1972[^f00075];

“ordinary maternity leave” means for any period prior to 24th September 1996, leave under Article 15 of the Industrial Relations (No. 2) (Northern Ireland) Order 1976[^f00076] and for any period commencing on or after 24th September 1996, leave under Part IX of the Employment Rights (Northern Ireland) Order 1996[^f00077];

“parental leave” means leave under regulation 13(1) of the Maternity and Parental Leave etc. Regulations (Northern Ireland) 1999[^f00078];

“part-time employee” means an employee – whose contract of employment provides that he is such an employee for the Scheme; or who is neither a whole-time employee nor a variable-time employee;

“payment in lieu of contributions” means a payment made in lieu of contributions under the Act of 1959, the Insurance Act, the Great Britain Acts or the Isle of Man Act;

“payment period” has the meaning given in regulation 6(4);

“pay” shall be construed in accordance with regulation 12;

“pensioner member” has the meaning given in Article 121(1) of the Pensions (Northern Ireland) Order 1995;

“the Pensions Order” means the Pensions (Northern Ireland) Order 1995;

“pension credit” means a credit under Article 26(1)(b) of the 1999 Order or under section 29(1)(b) of the 1999 Act;

“pension credit benefits” means benefits payable under the Scheme to or in respect of a pension credit member by virtue of rights under the Scheme attributable to a pension credit;

“pension credit member” means a person who has pension credit benefits under the Scheme;

“pension credit rights” means rights to future benefits under the Scheme which are attributable to a pension credit;

“pension debit” means a debit under Article 26(1)(a) of the 1999 Order or under section 29(1)(a) of the 1999 Act ;

“pension debit member” means a member, whether an active member, a deferred member or a pensioner member, whose shareable rights under the Scheme are subject to a pension debit;

“pension sharing order” in relation to a pension credit member, a pension debit member, a person entitled to a pension credit or pension credit rights means the order or provision by virtue of which Article 26 of the 1999 Order or section 29 of the 1999 Act takes effect;

“period of maternity absence” means any period throughout which a woman – is absent from duty by reasons of pregnancy or confinement; and may exercise the right under her contract of employment to return to work;

“permanently incapable” means incapable until, at the earliest, the member’s 65th birthday;

“personal pension scheme” means a personal pension scheme (within the meaning of section 1 of the Pension Schemes (Northern Ireland) Act 1993) which has been approved under Chapter IV of Part XIV of the Taxes Act or provisionally approved under section 655(5) of that Act;

“preserved benefits” means benefits to which a person becomes entitled under regulation 33, or the corresponding provisions of the former regulations and which have not had an election made in respect of them under regulation 34(1) nor have yet become payable;

“principal civil service pension scheme” has the meaning given in Article 4(10) of the Order of 1972;

“prospective member” means a person who under his contract of service or these Regulations – may, if he wishes or his employer consents, become a member or will be able to do so if he continues in the same employment sufficiently long, or will become a member unless he chooses not to do so;

“reference banks” means the seven largest persons for the time being who – have permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits; are incorporated in and carrying on within the United Kingdom a regulated activity of accepting deposits; and quote a base rate in sterling; and for this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in Article 4 of the Companies (Northern Ireland) Order 1986)[^f00079], as shown in the audited end-of-year accounts last published before that time and this definition must be read with – section 22 of the Financial Services and Markets Act 2000; any relevant order under that section; and Schedule 2 to that Act;

“relevant reserve forces service” means service (other than service for the purposes of training only or service for a period in respect of which a cancelling notice has been served) – in pursuance of any notice or directions given under any enactment which provides for the calling out on permanent service, or the calling into actual service, or the embodiment of, any reserve or auxiliary force, or members of such a force, or the recall of service pensioners; in pursuance of any obligation or undertaking to serve when called upon as a commissioned officer; or rendered by virtue of section 28 or 65 of the Reserve Forces Act 1996[^f00080], and paragraph (b) applies whether or not the obligation or undertaking is legally enforceable, but not in the case of an obligation or undertaking to accept a permanent commission or a commission for a fixed term or to serve for the purposes of periodical training;

“reserve forces pay”, in relation to any person, is the total of – his pay for performing relevant reserve forces service (including marriage, family and similar allowances); and any payments under Part V of the Reserve and Auxiliary Forces (Protection of Civil Interests) (Northern Ireland) Order 1953[^f00081];

“reserve forces service leave”, in relation to a person, means being away from work – after – he has left the employment in which he is an active member; or he has been granted leave of absence from such an employment, in order to perform reserve forces service; without having agreed to receive a return of contributions under regulation 88; and without having elected that the absence is not to count as such by giving notice in writing to the Committee not later than 12 months after the end of the period of reserve forces service to which the notice relates (or within such longer period as it may allow);

“reserve or auxiliary force” means the whole or part of the Royal Navy Reserve (including the Royal Fleet Reserve), the Royal Marines Reserve, the Territorial Army, the Army Reserve, the Air Force Reserve, the Royal Air Force Volunteer Reserve or the Royal Auxiliary Air Force;

“Revenue agreement”, in relation to a member, means agreement in writing by the Commissioners of Inland Revenue given after an application to them by the Committee that he may be treated as a Class B member or a Class C member by virtue of his membership before 1st June 1989 or, as the case may be, 17th March 1987 of a scheme approved under Chapter I of Part XIV of the Taxes Act;

“Revenue permitted maximum” means the permitted maximum, within the meaning of section 590C(2) of the Taxes Act;

“SCAVCs” means contributions made under regulation 70;

“the Scheme” means the occupational pension scheme constituted by these Regulations, the Transitional Regulations and the 2000 Regulations (so far as they continue to operate);

“Scheme employer” means a body as defined in regulation 3(3) (but see regulation 4(15));

“Scheme managers” means – in relation to a statutory scheme, the Government department concerned or police or fire authority administering the scheme; and in any other case, the person responsible for the management of the scheme;

“self-employed pension arrangement” has the same meaning as in section 176 of the Pension Schemes (Northern Ireland) Act 1993;

“service” – in Chapter VI of Part IV means service or employment with any employer; and elsewhere, means service with a Scheme employer, and service rendered by an employee of a Scheme employer whose services are placed at the disposal of a Minister of the Crown or a Government department in pursuance of any enactment is to be treated as service with the Scheme employer;

“service pensioner” means a person in receipt of a pension (other than a pension awarded in respect of disablement) granted – in respect of service in the Royal Navy, the Royal Marines, the regular army and the regular air force or any reserve or auxiliary force which has been called out on permanent service or which has been embodied; or in respect of that and other service;

“shareable rights” means a person’s shareable rights mentioned in Article 24(2) of the 1999 Order or under section 27(2) of the 1999 Act;

“standard contribution rate” shall be construed in accordance with regulation 11;

“state pensionable age” means pensionable age within the meaning of section 122 of the Social Security Contributions and Benefits Act (Northern Ireland)1992[^f00082];

“superannuable membership” has the meaning given in regulation 9(2);

“the Taxes Act” means the Income and Corporation Taxes Act 1988[^f00083];

“tax year” means the 12 months beginning with 6th April in any year;

“the Transitional Regulations” means the Local Government Pension Scheme (Amendment No. 2 and Transitional Provisions) Regulations (Northern Ireland) 2002[^f00084];

“total membership” and “total period of membership” shall be construed in accordance with regulation 8(2);

“trade dispute” has the meaning given by Article 2(4) and (7) of the Industrial Relations (Northern Ireland) Order 1992[^f00085];

“trade dispute absence” means absence from duty, otherwise than with leave, for a period of one or more days during and because of a trade dispute;

“transfer date” in relation to a pension credit member and pension credit rights means the day on which the pension sharing order takes effect;

“transferor” in relation to a pension credit member or a person entitled to a pension credit means the person to whose shareable rights the pension sharing order relates;

“unaggregated period”, in relation to a period of membership, has the meaning given in regulation 34(6) and “aggregated” shall be construed accordingly;

“upper earnings limit” has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993;

“variable-time employee” means an employee whose contract of employment provides that he is such an employee for the Scheme and – whose pay is calculated by reference to his duties (rather than necessarily by reference to the number of hours he has worked); or whose duties only have to be performed on an occasional basis;

“whole-time employee” means an employee whose contract of employment provides – that he is such an employee for the purposes of the Scheme; or that his contractual hours are not less than the number of contractual hours for a person employed in that employment on a whole-time basis.

SCHEDULE 2 — MATTERS TO BE INCLUDED IN AN ADMISSION AGREEMENT IN CERTAIN CASES

1

An admission agreement with a transferee admission body, shall contain provision for the matters set out in paragraphs 2 to 15.

2

A reference to the date of the transfer arrangement.

3

A requirement for the transferee admission body to pay to the Committee all contributions and payments due under the Regulations.

4

A provision whereby the transferor Scheme employer may set off against any payments due to the transferee admission body an amount equal to any overdue employer and employee contributions and other payments (and interest payable under the Regulations) due from the transferee admission body as an employing authority.

5

A reference to the indemnity or bond in the approved form.

6

A warranty from the transferee admission body that such an indemnity or bond is in place.

7

A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in the Regulations and in any employer’s guide published by the Committee and provided to the transferee admission body.

8

An undertaking from the transferee admission body to the Committee that it shall not do anything to prejudice the status of the Scheme as an exempt approved scheme within the meaning given by section 592(1) of the Taxes Act.

9

A representation and warranty from the transferee admission body to the Committee and to the transferor Scheme employer that all the transferee admission body’s employees or class of employees who are specified as members are employed in connection with the services or assets referred to in the transfer arrangement.

10

An undertaking from the transferee admission body that it will promptly notify the Committee and the transferor Scheme employer in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy, in the interests of efficiency, an offence of a fraudulent character or due to grave misconduct.

11

A requirement that the transferee admission body notifies the Committee and the transferor Scheme employer of each occasion on which it exercises discretion.

12

A requirement that the transferee admission body notifies the Committee and the transferor Scheme employer of any matter which may affect, or is likely to affect, its participation in the Scheme and that it gives immediate notice of any actual or proposed change in its status which may give rise to a termination, including take-over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of its business or constitution.

13

A minimum period of three months' notice to terminate the admission agreement but automatic termination, as required by regulation 4(9) in the event that the transferee admission body ceases to be such a body.

14

A right for the Committee to terminate the agreement in the event of –

(a) the insolvency, winding up or liquidation of the transferee admission body;

(b) a breach by the transferee admission body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time);

(c) the withdrawal of approval by the Commissioners of Inland Revenue to the participation of the transferee admission body as a Scheme employer; or

(d) a failure by the transferee admission body to pay any sums due to the fund within a reasonable period after receipt of a notice from the Committee requiring it to do so.

15

A requirement that the admission agreement in its final form shall be available for public inspection at the appropriate offices of the transferor Scheme employer and of the Committee (if different).

SCHEDULE 3 — EXCLUDED MEMBERSHIP

1

A credited period which is counted as a period of membership under regulation 125(1) or was counted under any corresponding earlier provision and is counted under regulation 8(1)(d).

2

Any period which has already been counted to determine whether a relevant member was entitled to the relevant benefit or has been or may be used to calculate its amount.

3

So much of a Class A member’s total membership as exceeds 40 years.

4

So much of the total membership of a Class B member or Class C member as –

(a) is membership before he attains the age of 60 and exceeds 40 years, or

(b) exceeds 45 years.

5

So much of the membership of a member as respects whom an amount is recovered or retained under regulation 116 (misconduct obligations) as requires to be excluded to reduce the value referred to in regulation 116(2)(b) by that amount.

SCHEDULE 4 — REVENUE RESTRICTIONS

Preliminary

1

(1) In these Regulations –

“Class A member” is a member who – became a member on or after 1st June 1989 and is not to be treated as a Class B member or Class C member by virtue of a Revenue agreement; or was a Class B member or a Class C member immediately before that date and is deemed to have become a Class A member by virtue of making a Class A election;

“Class A election” means an election duly made by a Class B member or a Class C member by notice in writing to the Committee, before the date on which he ceases to be an active member for any reason (including death), that he wishes to be treated as a Class A member for the Scheme, as from 1st June 1989;

“Class B member” is a member who – became a member on or after 17th March 1987 and before 1st June 1989, or is to be treated as a Class B member by virtue of a Revenue agreement; has continued to be a member since before 1st June 1989 and has not had a continuity break or satisfies one of the continuity conditions in relation to any period when he was not a member; is not to be treated as a Class C member by virtue of a Revenue agreement; has continued to be a member since before 1st June 1989 and has either not had a continuity break or satisfies one of the continuity conditions in relation to any period when he was not a member; and is not deemed to have become a Class A member by virtue of making a Class A election;

“Class C member” is a member who – became a member before 17th March 1987 and has not had a continuity break or is to be treated as a Class C member by virtue of a Revenue agreement; has continued to be a member since before 17th March 1987 or satisfies one of the continuity conditions in relation to any period when he was not a member; has continued to be a member since before that date or satisfies one of the continuity conditions in relation to any period when he was not a member; and is not deemed to have become a Class A member by virtue of a Class A election;

“continuity break” is a change of employment from a Scheme employer (including an admission body) to a non-associated or transferee admission body (as defined in regulation 4(16)(c) and (g)) but does not include a change in the case of a person who was a member of the Scheme on 2nd April 2001;

“continuity conditions”, in relation to a Class B member or a Class C member, are – that his active membership ceased on his secondment or posting to another employer, at the time of the secondment or posting he had a definite expectation that he would become an active member again when it ended, and he again became an active member at the end of his secondment or posting; that his active membership ceased by reason of his unpaid absence and he began paying contributions again under regulation 11 within one month of returning to work; that the member’s active membership ceased wholly or partly because of her pregnancy or confinement and she began paying contributions again under that regulation within one month of returning to work as a maternity rights returner; that the member’s active membership ceased otherwise than as mentioned in paragraph (a), (b) or (c) and within one month he rejoined the Scheme as an active member and began paying contributions again under that regulation;

“existing rights member” means a member to whom regulation 5(2) of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990[^f00086] applies;

“relevant benefits” has the meaning given in section 612(1) of the Taxes Act 1988.

(2) A person has retained rights if he is entitled to or has received relevant benefits accrued under –

(a) an approved scheme, or a scheme in respect of which approval is sought;

(b) a relevant statutory scheme (as defined in section 611A of the Taxes Act);

(d) a retirement benefits scheme (as defined in section 611 of that Act) accepted by the Commissioners of Inland Revenue as a scheme which corresponds as mentioned in section 596(2)(b) of that Act;

(e) a contract or trust scheme approved under section 620 of that Act or a personal pension scheme approved under section 631 of that Act; or

(f) transfer payments from pension schemes which are established outside the United Kingdom held in a type of arrangement mentioned in sub-paragraph (a), (b) or (e).

(3) But retained rights which are death benefits must be disregarded if –

(a) the member’s pay in the first year of his employment during which he is a member does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which that first year begins; or

(b) they do not exceed £2,500.

(4) Retained rights may be disregarded if, after 31st August 1991, the member started to purchase benefit or was given extra benefits under Part III, and

(a) where the member became a member on or after 14th March 1989, his remuneration in the first year of his employment during which he is a member does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which the first year begins; or

(b) where the member became a member before 14th March 1989, his remuneration in the first year in which he starts to accrue benefits under Part III does not exceed one quarter of the Revenue permitted maximum for the year of assessment in which the first year begins.

(5) For sub-paragraph (2) benefits accrued under the Scheme must be disregarded unless they accrued in respect of a period of membership as respects which the person is treated as a deferred member or a pensioner member by virtue of regulation 34(5).

(6) In this Schedule “final remuneration” means, subject as provided in sub-paragraphs (7) to (10), the greater of –

(a) the highest total remuneration for any period of twelve complete and consecutive months (ending on the last day of the month) falling wholly within the five years preceding the relevant date; and

(b) the yearly average of the total emoluments from the employer which are assessable to income tax under Case I or II of Schedule E and upon which income tax liability has been determined in any three or more consecutive years ending at the end of any month not earlier than 10 years before the relevant date.

(7) Where final remuneration is calculated by reference to any period other than the last complete year ending on the relevant date, the member’s total remuneration or total emoluments may be increased for any year in proportion to any increase in the retail prices index from the last day of that period up to the relevant date, but for a Class C member this shall not apply to the calculation of the maximum retirement grant benefit unless the member’s aggregate retirement benefit is similarly increased beyond the maximum amount which could have been paid but for this provision and the similar provision in the definition of total remuneration and then only to the same extent.

(8) In respect of a Class B member, final remuneration for the purpose of the calculation of the retirement grant shall not exceed £100,000 or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act[^f00087].

(9) In respect of any member whose remuneration in any tax year after 5th April 1987 used for the purpose of calculating retirement benefits has exceeded £100,000 (or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act) final remuneration shall not exceed the amount ascertained in accordance with sub-paragraph (6)(b) and sub-paragraph (6)(a) shall not apply unless the member chooses to adopt £100,000 (or such other sum as may for the time being be specified in an order made by the Treasury under section 590(3) of the Taxes Act).

(10) Remuneration and total emoluments shall not include any amounts which arise from the acquisition or disposal of shares or any interest in shares or from a right to acquire shares or anything in respect of which tax is chargeable by virtue of section 148 of the Taxes Act.

(11) In this Schedule –

(a) “relevant date” means the last day on which the member is an active member;

(b) “service” means service in local government employment;

(i) actual amounts received for the twelve complete and consecutive months ending on or immediately prior to the date for which total remuneration is to be calculated (in this definition called the “calculation date”) which correspond to the fixed annual rates of salary for the time being in respect of that member’s service; and

(ii) that member’s average annual remuneration from the employer or otherwise in respect of service by the way of commissions, fluctuating emoluments or other benefits assessed to income tax under Schedule E (but not within sub-paragraph(i)) for the 36 complete and consecutive months ending on or immediately prior to the calculation date, but remuneration within the scope of this sub-paragraph for a year prior to that ending with the calculation date may be increased in proportion to any increase in the retail price index from the last day of that year up to the calculation date.

Class A members

2

(1) This paragraph sets out limits on benefits in respect of local government employment payable to or in respect of a Class A member under these Regulations.

(2) The aggregate pension payable must not exceed one sixtieth of the member’s final remuneration multiplied by his years of service.

(3) Subject to sub-paragraph (2), the aggregate pension payable on retirement must not exceed the lesser of –

(a) one thirtieth of the member’s final remuneration multiplied by the member’s years of service or 20 years if less; and

(b) two-thirds of the member’s final remuneration less the value of any retained rights.

(4) But for a pension payable under regulation 29 (ill-health) the limit is the maximum retirement grant payable under sub-paragraph (6) or (7) assuming he had continued as an active member until his normal retirement date.

(5) The aggregate pension payable to a member who has elected under regulation 7 to leave the Scheme but remains in local government employment is the greater of –

(a) one sixtieth of the member’s final remuneration multiplied by his years of service prior to leaving the Scheme or 40 years if less; and

(b) the maximum pension that could have been payable at his normal retirement date under sub-paragraph (2) or (3) multiplied by the fraction of which –

(i) the numerator is the member’s years of service prior to leaving the Scheme or 40 years if less, and

(ii) the denominator is his total period of membership assuming he had remained an active member until his normal retirement date or 40 years if less.

Class B members and Class C members

3

Paragraphs 4 to 6 set out limits on benefits in respect of local government employment payable to or in respect of a Class B member or Class C member under these Regulations and paragraph 7 limits additional contributions in some circumstances.

4

(1) Subject to sub-paragraph (2), the aggregate pensions payable on retirement at normal retirement date must not exceed the lesser of –

(a) for Class B members, one thirtieth of the member’s final remuneration multiplied by his years of service, or 20 years if less;

(b) for Class C members with less than 10 years service, the member’s final remuneration multiplied by the fraction specified below –

1 to 5 years	1/60th for each year
6 years	8/60ths
7 years	16/60ths
8 years	24/60ths
9 years	32/60ths

(2) But if it results in a higher sum than the maximum under sub-paragraph (1), the maximum aggregate pension on retirement at his normal retirement date is one sixtieth of the member’s final remuneration multiplied by his years of service or 40 years if less.

(3) But for a pension payable under regulation 29 the limit is the maximum pension payable under sub-paragraph (1) or (2), multiplied by the years of service the member would have had if he had continued as an active member until his normal retirement date.

(4) For a pension payable under regulation 28 or 33, if it results in a higher sum, for the maximum under sub-paragraph (2) there is substituted an amount equal to the amount that would be the maximum under sub-paragraph (2) if the member had remained an active member until his normal retirement date, multiplied by the fraction of which –

(a) the numerator is –

(i) his years of service, or

(ii) 40 years,

whichever is less, and

(b) the denominator is –

(i) his years of service, assuming he had remained an active member until his normal retirement date, or

(ii) 40 years,

whichever is less.

This amount may be increased by 5 per cent. for each complete year, or in line with any increases in the retail prices index if greater, between the relevant date and the date on which the pension becomes payable.

(5) The aggregate pension payable on retirement after the member’s normal retirement date must not exceed –

(a) the amount payable under sub-paragraph (1) or (2) on the basis the actual retirement date was the member’s normal retirement date;

(b) the amount that could have been payable under sub-paragraph (1) or (2) on retirement at normal retirement date –

(i) with such an increase as an actuary appointed by the Committee considers appropriate in view of the period of delay in payment between his normal retirement date and the actual date the pension becomes payable, or

(ii) adjusted to reflect any increase in the general level of retail prices in Great Britain during that period;

whichever is the greatest.

(6) For sub-paragraphs (1) to (5) a member who is entitled to be paid a lump sum on retirement is treated as if he were entitled instead to be paid a pension on retirement of an annual amount equal to one twelfth of the lump sum.

(7) A member’s increased period of membership is the sum of –

(a) his total membership ending with his normal retirement date; and

(b) his total membership after his normal retirement date,

but must not exceed 45 years.

(8) The aggregate pension in respect of local government employment for a surviving spouse or eligible child of a member (other than a pension provided by surrender of the member’s own pension under regulation 36) payable or prospectively payable to that surviving spouse or eligible child shall not exceed –

(a) in the case of an active or deferred member, an amount equal to two thirds of the amount which would be payable under sub-paragraph (3), ignoring any retained rights, if the member had retired in circumstances entitling him to an ill-health pension and grant under regulation 29 on the date of his death; and

(b) in the case of a pensioner member, an amount equal to two thirds of the amount payable at the date of death under sub-paragraph (1), (2), (3), (4) or (5) ignoring any retained rights and increased in line with any subsequent increase in the retail prices index.

(9) If pensions are payable to more than one of the member’s surviving spouse and eligible children, the aggregate of all such pensions shall not exceed –

(a) on the death of an active member or deferred member the amount payable under sub-paragraph (3); and

(b) on the death of a pensioner member, the amount payable under sub-paragraph (1), (2), (3), (4) or (5).

5

(1) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant for a Class B member on retirement at or before his normal retirement date must not exceed the lesser of –

(a) three times the initial pension paid to the member under Part II and Part III, excluding Chapter IV of Part III; and

(b) one and a half times the member’s final remuneration less the value of any retained benefits in lump sum form.

(2) Subject to sub-paragraph (3), the aggregate benefit payable by way of a retirement grant on retirement at his normal retirement date for a Class C member must not exceed the lesser of –

(a) if the member has less than 20 years service, his final remuneration multiplied by the fraction set out in the table below –

Years of service to normal retirement date	80ths of final remuneration
1 to 8	3 for each year
9	30
10	36
11	42
12	48
13	54
14	63
15	72
16	81
17	90
18	99
19	108; and

(b) one and a half times the member’s final remuneration less the value of any retained rights in lump sum form.

(3) If it results in a higher sum than the maximum under sub-paragraph (1) or (2), the maximum aggregate retirement grant is three eightieths of the member’s final remuneration multiplied by each year of service or 40 years if less.

(4) But for a retirement grant payable under regulation 29, the limit is the maximum retirement grant payable under sub-paragraph (1), (2) or (3) assuming he continued as an active member until his normal retirement date.

(5) The aggregate benefit payable to a Class C member by way of retirement grant before his normal retirement date is the greater of –

(a) three eightieths of the member’s final remuneration multiplied by his years of service or 40 years if less; and

(b) the maximum lump sum that could have been payable on retirement at his normal retirement date under sub-paragraph (2) multiplied by the fraction of which –

(i) the numerator is the member’s actual period of local government employment prior to leaving the Scheme or 40 years if less, and

(ii) the denominator is his total period of membership assuming he had remained an active member until his normal retirement date or 40 years if less.

This amount may be increased in line with any increase in the retail prices index between the relevant date and the date on which the benefit becomes payable.

(6) The aggregate benefit payable to a Class B member or a Class C member by way of a retirement grant on retirement after his normal retirement date must not exceed the greatest of –

(a) the amount payable under sub-paragraph (1), (2) or (3) on the basis that the actual retirement date was the member’s normal retirement date;

(b) the amount that could have been payable under sub-paragraph (1), (2) or (3) on retirement on his normal retirement date together with interest in respect of the period of the delay in payment between that date and the actual date of payment;

(7) A member’s increased period of membership is the aggregate of –

(a) his total membership ending with his normal retirement date; and

(b) his total period of membership after his normal retirement date

but must not exceed 45 years.

(8) The benefits payable by way of a lump sum on the death of an active or deferred member must not exceed four times his final remuneration (disregarding the proviso in paragraph 1(9), paragraph 1(10) and paragraph 9(6)) less any lump sum death in service retained rights (other than a refund of the member’s contributions and any interest on such contributions) or, if greater, £5,000.

6

(1) The years of service taken into account under paragraph 4(1) and (2), and the total membership taken into account under paragraphs 4(7)(a) and 5(7)(a) must not exceed 40 years.

(2) Without prejudice to Schedule 3, a credited period which is counted as a period of membership under regulation 125(1) does not count in calculating years of service for sub-paragraph (1) or paragraph 4 or 5.

7

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Local Government Pension Scheme Regulations (Northern Ireland) 2002

Recovery or retention where former member has misconduct obligation

116

Protection of GMP rights

117

Transfer of sums from the fund to compensate for former member’s misconduct

118

CHAPTER VI — TRANSFERS

Transfers out

Application of Chapter IV of Part IV of the Pension Schemes (Northern Ireland) Act 1993

119

Rights to payment out of the fund

120

Contracting-out requirements affecting transfers out

121

Bulk transfer arrangements

Bulk transfers (transfers of undertakings) etc.

122

Calculation of amount of transfer payment under regulation 122

123

Transfers in

Inward transfers of pension rights

124

Right to count credited period

125

Credited periods for transferring members with mis-sold pension rights

126

Rights as to service not matched by credited period

127

Community scheme transferees

Community scheme transferees

128

PART V — SPECIAL CASES

CHAPTER 1 — ELIGIBILITY

Separate employments etc.

129

CHAPTER II — CONVERSION OF DISCRETIONARY PAYMENTS REGULATIONS PERIODS INTO MEMBERSHIP

Conversion of periods credited under Discretionary Payments Regulations etc. into membership

130

CHAPTER III — RIGHTS UNDER ARTICLE 14 OF THE SUPERANNUATION (NORTHERN IRELAND) ORDER 1972

Rights under Article 14 of the Superannuation (Northern Ireland) Order 1972

131

PART VI — PENSION SHARING

CHAPTER I — SHARING OF RIGHTS UNDER THE SCHEME

Interpretation

132

Discharge of liability for pension credit rights

133

Aggregation

134

Death of person entitled to a pension credit before discharge

135

Safeguarded rights

136

Valuation date

137

CHAPTER II — PENSION CREDIT MEMBERS AND PENSION CREDIT

Application of the Regulations to pension credit members

138

Calculation

139

Payment of benefits

140

Death grants

141

Commutation: small pensions

142

Commutation: serious ill-health

143

CHAPTER III — TRANSFERS

Transfers out

144

Transfers in

145

SCHEDULE 1 — INTERPRETATION

SCHEDULE 2 — MATTERS TO BE INCLUDED IN AN ADMISSION AGREEMENT IN CERTAIN CASES

1

2

3

4