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The Local Government Superannuation Regulations 1986

Type Statutory-Instrument

Publication 1986-01-13

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(a) he was entitled or a participant as mentioned in paragraph 2(a) or (b), or

(b) the period mentioned in paragraph (2)(c) or (d)(i) was running, or

(d) he was entitled or a participant as mentioned in paragraph (3), or

(e) he was entitled to receive payments in respect of a pension out of a superannuation fund mentioned in paragraph (2)(a), or

(f) he was a person to whom regulation EIS, section 6 of the Act of 1953 or section 31 of the Act of 1937 applied.

(5) Where paragraph (2)(e) is the case, paragraph (4) applies—

(a) with the substitution for the date specified in paragraph (12) of the date (being a date later than 30th June 1950) on which he became entitled or a participant as mentioned in paragraph (2)(a) or (b), or, as the case may be, a period began which was reckonable, or falls to be treated as having been reckonable, as mentioned in paragraph (2)(c), and

(b) with the substitution for the reference in paragraph (4)(b) to the period mentioned in paragraph (2)(c) or (d)(i) of a reference to such a period as is mentioned in sub-paragraph (a).

(6) Where paragraph (2)(f) is the case, paragraph (4) applies with the substitution for the date specified in paragraph (12) of the date (being a date later than 30th June 1950) on which he last became entitled or a participant as mentioned in paragraph (2)(a) or (b).

(7) If he is a person to whom regulation D1(2) of the 1974 regulations applied in respect of any service after the end of his war service, he must have repaid to the appropriate administering authority the sum or amount there mentioned.

(8) If he is an employee entitled to participate in the benefits of a superannuation fund maintained under these regulations, he must not be entitled to reckon more than 45 years' reckonable service, disregarding reckonable service before attaining the age of 60 years beyond a total of 40 years.

(9) If he has become entitled to receive payment in respect of an annual pension out of a superannuation fund maintained under these regulations (including a pension which is for the time being subject to reduction or suspension under regulation E15), no more than 45 years' service must have been taken into account in calculating the amount of that pension.

(10) In the case of a deceased employee, paragraph (2)(d)(ii) shall for the purposes of paragraph (1) be deemed to be satisfied even though the application was made after his death.

(11) Where paragraph (2)(f) applies and the scheme designated under regulation F5(2)(b) is not a scheme specified in Schedule 14, or a water company scheme, war service is for the purposes of paragraph (1) to be assumed.

(12) The date mentioned in paragraph (4) is the date before 1st July 1950 and after the end of his war service when, as the case may be—

(a) he became entitled or a participant as mentioned in paragraph (2)(a) or (b), or

(b) the period mentioned in paragraph (2)(c) or (d)(i) began.

Modified application of regulation F3 in certain cases

F4

(1) Regulation F3 applies in accordance with paragraphs (3) to (6) of this regulation in the cases specified in those paragraphs.

(2) In this regulation, unless the context otherwise requires, “service” means service or employment with any employer.

(3) In the case of a person to whom rule 11 of the Superannuation (Local Government and Overseas Employment) Interchange Rules 1969[^f00047] applied otherwise than by virtue of rule 3(3)(c) of those Rules, or to whom rule 5 of the Superannuation (Local Government and Overseas Employment) Interchange Rules 1958[^f00048], rule 3 of the Superannuation (Local Government, Commonwealth and Foreign Service) Interchange Rules 1952[^f00049], or rule 3 of the Superannuation (Local Government and Colonial Service) Interchange Rules 1949[^f00050] applied—

(a) service reckonable by virtue of the provisions of any of those Rules shall for the purposes of regulation F3(2)(c) be deemed to have been reckonable by him otherwise than by virtue of interchange rules, and

(b) the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

(4) In the case of a person to whom regulation 4 of the Electricity (Pension Rights) Regulations 1948[^f00051] applied, or to whom regulation 4 of the Gas (Pension Rights) Regulations 1950[^f00052] applied as mentioned in paragraph (4) of that regulation, and in relation to whom the condition in paragraph (5) is satisfied—

(a) any period of service beginning before 1st July 1950—

(i) in respect of which a transfer value has been accepted under interchange rules, or has been accepted or fallen to be treated as if it had been accepted under Part J, or

(ii) which he became entitled to reckon as reckonable service, or as non-contributing or contributing service or a period of contribution for the purposes of the former regulations or of a local Act scheme,

shall be deemed to be such a period as is mentioned in regulation F3(2)(c), and

(b) the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

(5) The condition mentioned in paragraph (4) is that the person re-entered local government employment—

(a) not more than 12 months after ceasing to hold the employment by virtue of which the relevant regulation applied to him, or

(b) if within 12 months after ceasing to hold that employment he entered an employment in which he was subject to another public service scheme, after ceasing to hold the latter employment.

(6) In the case of a person—

(a) who after the date specified in regulation F3(12) left local government employment and became entitled to participate in the benefits of another occupational pension scheme, and

(b) who re-entered local government employment not more than 12 months after ceasing to be entitled as mentioned in sub-paragraph (a) and became entitled in that employment to reckon—

(i) as reckonable service or qualifying service, or

(ii) as non-contributing or contributing service, or a period of contribution, for the purposes of the former regulations or of a local Act scheme, or

(iii) as service material for the purposes of regulation H6(5),

a period at least equal in length to the whole of his service from the date specified in regulation F3 (12),

the period between his leaving and re-entering local government employment shall be deemed not to be such a period as is mentioned in regulation F3(4).

Notice of election

F5

(1) Notice of an election under regulation F3 is to be given in writing—

(a) in the case of a person who has, or a deceased employee who had before he died—

(i) become entitled to receive payments in respect of any annual pension out of a superannuation fund maintained under these regulations (including a pension subject for the time being to reduction or suspension under regulation E15), or

(ii) become entitled to any annual pension under regulation E2(1)(c),

to the administering authority maintaining the superannuation fund which is or was liable in respect of the pension or, where there is more than one pension, the first of them, or

(b) in the case of a person in respect of whom a transfer value has been paid after 31st March 1978, under Part J or under or in anticipation of Part N of the 1974 regulations, to the administering authority maintaining the superannuation fund out of which it was paid, or

(2) The person giving notice of an election under regulation F3—

(a) is to give the authority, in writing—

(i) all information in his possession, and

(ii) if the authority notify him in writing that they so require, any further information specified by them that he can reasonably be expected to obtain,

concerning the war service of the person to whom the notice relates, and

(b) is to designate in the notice the scheme, if any, which he believes complies with regulation F6(4), and

(i) in that notice, or

(ii) at any time before he receives a notification of a decision or determination that the conditions specified in regulation F3(2) to (10) are satisfied in relation to the person to whom that notice relates, by a further notice in writing to the same authority,

elect that regulation F6 shall apply with the substitution, in paragraph (1)(a) or (b) or (13) as the case may be, for “47 per cent” (or for any reduced percentage substituted under paragraph (14)) of any specified lesser percentage, and

(d) whether or not he has so elected, may at any time before he receives such a notification withdraw the notice given under regulation F3.

Reckonable service and benefits

F6

(1) Subject to regulation F5(2)(c) and paragraphs (2) to (17), a person in relation to whom regulation F3 applies is entitled, or as the case may be shall be deemed to have been entitled—

(a) in the case of a person entitled on the relevant date—

(i) to participate in the benefits of a superannuation fund maintained under these regulations, or

(ii) to a retirement pension,

other than a person to whom regulation G14 of the 1974 regulations applied, to reckon as reckonable service a period equal to 47 per cent of his war service; or

(b) in the case of a person to whom on the relevant date regulation G14 of the 1974 regulations applied, to have a period equal to 47 per cent of his war service treated as having been for the purposes of paragraph (4) of that regulation a period during which the whole of his relevant policies were fully maintained; or

(c) in the case of a person who, having become entitled to receive an annual pension under the former regulations or a local Act scheme, was on the relevant date entitled to receive payments in respect of that pension out of a superannuation fund maintained under these regulations or the 1974 regulations, to receive, in respect of the service in respect of which that pension is payable, the additional benefits specified in paragraph (12).

(2) Where regulation F3(2)(f) applies and the scheme designated under regulation F5(2)(b) ('the designated scheme") is a scheme specified in Schedule 14, paragraph (1) applies only if that scheme complies with paragraph (4).

(3) Where regulation F3(2)(f) applies and the designated scheme is a water company scheme, paragraph (1) applies only if—

(a) that scheme complies with paragraph (4), and

(b) the administering authority to whom notice was required to be given under regulation FS was the National Water Council or the Severn Trent Water Authority.

(4) A scheme complies with this paragraph if—

(a) it is the first public service scheme the war service provisions of which could have become applicable to the person if he had remained a member of it, and

(b) he is, or in the case of a deceased employee was immediately before he died—

(i) entitled to reckon the employment in which he was subject to the scheme as reckonable service, or

(ii) entitled to a retirement pension in the calculation of which that employment was taken into account as reckonable service.

(5) Where the designated scheme is a scheme specified in Part I of Schedule 14 and complies with paragraph (4), this regulation applies with the substitution throughout for references to 47 per cent of references to 63) per cent.

(6) Where the designated scheme is a scheme specified in Part II of Schedule 14 and complies with paragraph (4), this regulation applies with the substitution throughout for references to 47 per cent of references to 46½ per cent.

(7) Where the designated scheme is not a scheme specified in Schedule 14, or a water company scheme, paragraph (1) applies only if a transfer value, calculated in accordance with Part VI of Schedule 16, is received in respect of the period that could have become reckonable under the war service provisions of that scheme.

(8) Where paragraph (1) applies by virtue of the acceptance of such a transfer value, this regulation applies with the substitution throughout for references to a period equal to 47 per cent of the person's war service of references to the period that could have become reckonable under the war service provisions of the designated scheme.

(9) Where the person was entitled on the relevant date to a retirement pension—

(a) his entitlement under paragraph (1)(a) or (b), and to any resulting increase in the rate of his retirement pension, shall be taken to have arisen on—

(i) 1st April 1978, or

(ii) the date on which he ceased to hold his employment,

whichever is the later date, and

(b) if regulation E3(9) of the 1974 regulations applied to him before 1st December 1982—

(i) any increase by virtue of paragraph (1)(a) or (b) in the amount of any benefit is not subject to reduction under regulation E3(14), and

(ii) the period that he is entitled by paragraph (1)(a) or (b) to reckon as reckonable service is not to be taken into account in calculating the reduction of any benefit falling to be reduced under regulation E3(14).

(10) The relevant date for the purposes of paragraphs (1) and (9) is the date of the election under regulation F3, except in the case of a deceased employee where it is the date of his death.

(11) Any period which a person is or is deemed to have been entitled to reckon as reckonable service by virtue of paragraph (1)(a) or (b) shall for the purposes of regulation E3(7) to (10) and of regulation E11(5) and (9) be deemed to be reckonable service before, as the case may be—

(a) 1st April 1972, or

(b) any earlier date on which he became a widower or was judicially separated from his wife or on which his marriage was dissolved.

(12) The additional benefits mentioned in paragraph (1)(c) are—

(a) an additional pension, payable from—

(i) 1st April 1978, or

(ii) the date on which the person became entitled to receive payments in respect of a pension as mentioned in paragraph (1)(c),

whichever is the later date, and

(b) if the person has received or is entitled to receive payment of any lump sum of the same nature as a retiring allowance, an additional lump sum,

calculated in accordance with paragraph (13).

(13) Subject to regulation F5(2)(c) and paragraphs (14) and (17)—

(a) the annual rate of an additional pension, and

(b) the amount of an additional lump sum,

specified in paragraph (12) is the amount by which the annual rate of the corresponding original pension or, as the case may be, the amount of the corresponding original lump sum would have been increased if a period equal to 47 per cent of the person's war service had been service, or a period, of a kind which (however described) counted in full in the calculation of the original pension or lump sum.

(14) If a period of part-time service or employment falling to be treated under section 12(5) of the Act of 1937 or under regulation E25 or under regulation G14(4)(c) of the 1974 regulations as though it were whole-time service or employment for a proportionately reduced period—

(a) began before and ended on or after 1st July 1950, and

(b) was not preceded, without any break, by a period of whole-time service or employment,

paragraph (1)(a) or, as the case may be, paragraph (1)(b) or paragraphs (13) and (17) apply with the substitution for “47 per cent” of the percentage obtained by reducing 47 per cent in the same proportion.

(15) Where—

(a) before the date of notification of a decision or determination that he is entitled to reckon a period as reckonable service by virtue of paragraph (1)(a) or (b), a person in relation to whom regulation F3 applies has been credited with an additional period of service under—

(i) any provision made by an enactment or instrument for compensation for loss of employment or loss or diminution of emoluments or for early retirement in lieu of such compensation, or

(ii) regulation E3(12),

(“the enhancement provision”), and

(b) A + B + C exceeds 40 years, where

A is the period which would but for this paragraph be reckonable by him as reckonable service by virtue of paragraph (1)(a) or (b),

B is the remainder of his reckonable service, and

C is the additional period of service with which he has been credited under the enhancement provision,

the period which is reckonable by him as reckonable service by virtue of paragraph (1)(a) or (b) is the total of 40 - (B + C) and the amount, if any, by which (A + B + C) - 40 exceeds C; except that where the enhancement provision is comprised in regulations made under section 260 of the Local Government Act “45” is to be substituted for “40” wherever the latter figure occurs in this paragraph.

(16) Where a person dies who was entitled or deemed to be entitled to any additional benefit specified in paragraph (12) and there is payable in respect of him out of a superannuation fund maintained under these regulations any benefit similar to a widow's pension, children's pension or death grant payable under Part E (“the death benefit”), the person entitled to receive the death benefit is entitled to receive, in respect of the service in respect of which the death benefit is payable, a corresponding additional benefit at any rate or, as the case may be, of any amount by which the death benefit would have been increased if a period equal to 47 per cent of the deceased person's war service had been service, or a period, which (however described) counted in full in ascertaining entitlement to the death benefit and its rate or amount.

(17) The total of an additional benefit under paragraph (12) or (16) and the corresponding original benefit must not exceed the greatest original benefit that could have been paid if—

(a) the period equal to 47 per cent of the person's war service had been a period of service before he attained the age of 60 years, and

(b) no more than—

(i) 40 years' service before attaining that age, and

(ii) 45 years' service in all,

had been capable of counting in the calculation of the original benefit.

(18) In calculating a period equal to a percentage of a person's war service for any of the purposes of this regulation, the war service is to be counted as a number of days, arrived at by—

(a) multiplying the number of complete years of war service, if any, by 365, and

(b) counting any part of the war service that does not amount to a number of complete years at its actual length in days,

rounding up any fraction of a day resulting from the calculation to the nearest whole day.

Revision of certain elections

F7

(1) Subject to paragraph (2), where—

(a) notice of one or more elections under regulation C8(2) or notice under regulation 16(2)(a) of the Local Government Superannuation (Amendment) Regulations 1979[^f00053] has been given by or in respect of a person in relation to whom regulation F3 applies, and

(b) the service thereby specified amounts to the whole of his reckonable service before, as the case may be—

(i) 1st April 1972, or

(ii) any earlier date on which he became a widower or was judicially separated from his wife or on which his marriage was dissolved,

he or his personal representatives may elect that the period which he is or is deemed to be entitled to reckon as reckonable service by virtue of regulation F6(1)(a) or (b) is to be treated as having been included in the service specified in the latest notice.

(2) An election under paragraph (1)—

(a) may not be made unless notice of election under regulation R3 of the 1974 regulations was given within the period of 6 months beginning on the relevant date, or in the case of a deceased employee who died during that period within the period of 12 months beginning on the date of his death, and

(b) must, unless they allow a longer period, be made by giving notice in writing to the administering authority concerned within 3 months after the date of notification of a decision by that authority, or as the case may be a determination by the Secretary of State under regulation N8, that the person is or is deemed to be entitled to reckon such a period as is mentioned in paragraph (1).

(3) For the purposes of paragraph (2)(a) the relevant date—

(a) where regulation F3(2)(f) applies, is 25th April 1985, and

(b) in any other case, is 1st December 1982.

PART G — MODIFICATION IN SPECIAL CASES

Employees of magistrates' courts committees

G1

In their application to a person employed by a magistrates' courts committee these regulations have effect—

(a) in any case, subject to the modifications in paragraphs 1 to 6, and

(b) in the case of a justices' clerk (outside the inner London area), subject also to the modifications in paragraphs 7 and 8,

of Part I of Schedule 15.

Certain employees of the committee of magistrates for the inner London area

G2

In their application to a person who is a pensionable employee by virtue of regulation B1(13) these regulations have effect—

(a) in any case, subject to the modifications in paragraphs 1 and 2, and

(b) in the case of a justices' clerk (inner London area), subject also to the modifications in paragraphs 3 and 4,

of Part II of Schedule 15.

Employees of probation committees

G3

In their application to a person employed by a probation committee these regulations have effect subject to the modifications in Part III of Schedule 15.

Coroners

G4

In their application to a coroner who is by virtue of regulation B1(14) a pensionable employee these regulations have effect subject to the modifications in Part IV of Schedule 15.

Certain employees of City of London employing bodies

G5

In their application to persons who were existing contributors or former contributors within the meaning of the Local Government Superannuation (City of London) Regulations 1977[^f00054] these regulations have effect subject to the modifications in Part V of Schedule 15.

Certain former contributory employees

G6

(1) This regulation applies to a person who—

(a) immediately before 1st April 1974 was a contributory employee to whom the Acts of 1937 to 1953 and the regulations made under them applied either—

(i) as modified or extended by, or

(ii) together with,

any local Act or scheme, and

(b) became on 1st April 1974 a pensionable employee under a scheduled body,

and in relation to such a person the provisions which applied as mentioned in sub-paragraph (a) are referred to in this regulation as his former superannuation scheme.

(2) Where any provision of the person's former superannuation scheme which was similar to a provision in the Table below would have been more beneficial than the provision in the Table, these regulations have effect, for the appropriate period, as if the former provision had applied.

1. Paragraph (a) of the definition of “remuneration” in Schedule 1 (exclusion of payments for non-contractual overtime).
2. Regulation C2 (payment and amount of employee's contributions).
3. Regulation E2(1)(a) (pensionable age).
4. Regulation E15 (reduction of pension of re-employed pensioner).
5. Regulation E20 (allocation of part of pension), but only where no election was made under regulation E19 of the 1974 regulations.
6. Regulation E22 (pensionable remuneration).
7. Regulation B8 (age of compulsory retirement).

(3) If the person—

(a) having ceased to be employed during the appropriate period by reason of his voluntary resignation, becomes entitled to receive a payment under regulation C12 (return of contributions), and

(b) if his former superannuation scheme had still applied to him, would have been entitled under it to receive a return of contributions together with interest,

he is entitled to receive out of the appropriate superannuation fund interest on so much of the amount payable to him under regulation C12 as is equal to the contributions paid by him in respect of service before 1st April 1972 to any superannuation fund under Part I of the Act of 1937 or under a local Act scheme.

(4) Interest under paragraph (3) is to be calculated, to the date on which the person ceased to be employed, at the same rate and with the same rests as if it had been payable under his former superannuation scheme.

(5) If—

(a) the person dies during the appropriate period, and

(b) under his former superannuation scheme a death gratuity would have been calculated by reference to a fraction of his average remuneration (within the meaning of the Benefits regulations) greater than three eightieths,

the amount of the death grant payable under regulation E11 is increased by A × B × (C - D), where—

A is the length in years of his reckonable service before 1st April 1972,

B is his pensionable remuneration,

C is the fraction mentioned in paragraph (b), and

D is three eightieths.

(6) The appropriate period for the purposes of this regulation is the period of application specified in the relevant provision of the person's former superannuation scheme, or if no period is so specified, the period during which he continues in the employment of the scheduled body mentioned in paragraph (1)(b).

Former clerks of the peace etc.

G7

(1) A person—

(a) to whom paragraph 13(2) of Schedule 10 to the Courts Act 1971[^f00055] (“paragraph 13(2)”) applied, and

(b) who immediately before 1st March 1986 was under regulation J10 of the 1974 regulations contributing to the appropriate superannuation fund the amount specified in paragraph 13(2) (“the paragraph 13(2) amount”),

may, so long as he continues in the employment of the same body, continue to contribute the paragraph 13(2) amount.

(2) For the purpose of calculating the amount of any benefit, a person shall be treated as having received, for any period for which he has, under regulation J10 of the 1974 regulations or this regulation, contributed the paragraph 13(2) amount, the remuneration which he would have received but for the reduction by virtue of which paragraph 13(2) became applicable to him.

Power to agree notional remuneration

G8

(1) A scheduled body may from time to time enter into an agreement with the bodies or persons representative of any class or description of employee of that authority specifying the method by which an amount representing the whole of the remuneration of a member of that class or, as the case may be, an employee of that description or such part of his remuneration as is specified in the agreement shall, in respect of the period during which the agreement remains in force, be determined.

(2) Where an employee of a scheduled body belongs to a class or description of employee in relation to which an agreement entered into by that body under paragraph (1) is in force, then in respect of the period during which that agreement remains in force and the employee in his employment under that body remains an employee of that class or description, the amount determined in relation to him in accordance with the method specified in the agreement as the amount representing the whole of his remuneration or, as the case may be, such part of his remuneration as is specified in the agreement, shall be deemed for the purposes of these regulations to be his remuneration or, as the case may be, such part of his remuneration as is so specified.

(3) Where a scheduled body enter into an agreement under paragraph (1) they shall send a written notification of that fact, which shall include a conspicuous statement directing the attention of the employee to the place at which he may obtain information about details of the agreement, to every employee of theirs who is a member of a class or, as the case may be, an employee of a description, to which the agreement relates.

(4) The notification required by paragraph (3) shall be sent—

(a) in the case of a person in the employment of the scheduled body on the date on which the agreement was entered into, as soon as is reasonably practicable after that date; and

(b) in the case of a person entering the employment of that body after that date, within 3 months after he has entered that employment.

Transfers from and to Scotland

G9

(1) This paragraph applies where a person becomes employed in a local government employment after having ceased, at any time after 30th March 1972, to hold a relevant Scottish employment.

(2) Where paragraph (1) applies, these regulations or, as the case may be, the 1974 regulations shall be deemed to have become applicable to the person on the cessation of his relevant Scottish employment as if that employment had been local government employment but the appointed day for the purposes of the 1974 regulations had been 16th May 1974.

(3) In paragraphs (1) and (2) “relevant Scottish employment” means—

(a) in relation to any time before 16th May 1974, employment by virtue of which the person was, or was deemed to be, a contributory employee within the meaning of the Local Government Superannuation (Scotland) Act 1937[^f00056] or a local Act contributor within the meaning of that Act, and

(b) in relation to any time after 15th May 1974, employment by virtue of which the person was, or was deemed to be, a pensionable employee within the meaning of the Local Government Superannuation (Scotland) Regulations 1974[^f00057].

(4) In regulation E15 (reduction of retirement pension on re-employment) the reference in paragraph (1) to employment with any scheduled body is to be construed as including a reference to employment with any scheduled body within the meaning of the Local Government Superannuation (Scotland) Regulations 1974.

(5) In the case of a person who, after ceasing to be employed in a local government employment, has become employed in a local government employment within the meaning of the Local Government Superannuation (Scotland) Regulations 1974, Part Q of these regulations applies as if the latter employment had been a local government employment.

Overseas employment

G10

(1) In relation to a person to whom regulation 3 of the Local Government Superannuation (Overseas Employment) Regulations 1985[^f00058] applies and who has not made an election under paragraph (3) of that regulation, these regulations apply as if—

(a) in regulation D2 (qualifying service) after paragraph (b) there were inserted the following:

and (c) any period which, if Part II of the Superannuation (Local Government and Overseas Employment) Interchange Rules 1969[^f00059] had applied to him, would have been a period of overseas employment within the meaning of those rules.

; and

(b) in regulation E2 (entitlement to retirement pension and retiring allowance)—

(i) after paragraph (9)(c) there were inserted the following:

or (d) if the total of his reckonable service and qualifying service is less than 5 years.

, and

(ii) in paragraph (10) after the word “period” there were inserted the words "; but no such election may be made where paragraph (9)(d) applies".

(2) In the case of such a person—

(a) preserved benefits are subject to reduction, but

(b) on a return to local government employment previous service becomes reckonable on repayment of returned contributions,

as if regulations K1(7), D1(2) (with the substitution for “the appointed day” of “6th January 1986”) and D1(3) of the 1974 regulations had continued to have effect.

PART H — LOCAL GOVERNMENT REORGANISATION ETC

Interpretation

H1

In this Part, unless the context otherwise requires—

“Health Service regulations” means the National Health Service (Superannuation) Regulations 1961 to 1973[^f00060], as in force immediately before 1st April 1974;

“transferred employee” means— a person transferred on or after 1st April 1974— by or under an order made under section 84 of the London Government Act 1963[^f00061] or an agreement made under section 24(7) of that Act; or by virtue of a scheme made under Part I of the Police Act 1964[^f00062]; or by the operation of the Public Libraries and Museums Act 1964[^f00063]; or by or under an order made under section 17 of the Transport Act 1968[^f00064]; or by or under an order made under section 46 of the Children and Young Persons Act 1969[^f00065]; or by or under an order or regulations made under the Local Government Act which, in accordance with the provisions of section 255 of that Act, contains a provision as to the transfer of that person; any person appointed by a local authority, or the National Water Council or a water authority to hold any office or employment before or as from 1st April 1974 who, but for the appointment, would have been transferred on that day under section 255 of the Local Government Act; and any person who on 1st April 1974 remained in the employment of the same body as immediately before that day but who in consequence of the Local Government Act, or anything done thereunder or of the 1974 regulations became on that day entitled to participate in the benefits of a superannuation fund maintained under those regulations by a body different from the body which maintained the superannuation fund in the benefits of which he was immediately before that day entitled to participate;

“new employment” means employment to which a person has been so transferred or appointed; and

“new employing body” means the body which has become the employing authority in relation to a person so transferred or appointed;

and in relation to a person appointed as aforesaid his taking up of the office or employment to which he was appointed shall for the purpose of this Part be deemed to be a transfer.

Continuity of employment and preservation of status

H2

(1) Subject to paragraph (2)—

(a) any provision of these regulations has effect, in relation to a transferred employee to whom it applies, as if his new employment and his former employment had been one continuous employment, and

(b) notwithstanding anything in these regulations, a transferred employee who is transferred after 28th February 1986 and was a pensionable employee immediately before the date on which he is transferred continues in his new employment to be a pensionable employee.

(2) Paragraph (1) does not affect the operation of regulation H3 or of regulations Q1 to Q3.

Discretionary powers

H3

Where—

(a) a transferred employee has continued in the employment of his new employing body, and

(b) immediately before he was transferred (whether before or after the commencement of these regulations) it was the prevailing practice of the body employing him, in relation to employees of that description, to exercise so as to secure the payment of, or of increased, gratuities, allowances or pensions any discretionary power exercisable by them by virtue of any enactment relating to pensions, and

the new employing body shall exercise the power in a way which is not less beneficial than the general character of that practice.

Contributions of transferred manual workers

H4

A transferred employee who immediately before he was transferred (whether before or after the commencement of these regulations) was paying contributions at a rate appropriate to a manual worker shall continue to contribute at the like rate so long as he continues to be employed by his new employing body on duties reasonably comparable to those on which he was engaged immediately before he was transferred.

Former employees of Manchester Corporation

H5

(1) Where a transferred employee—

(a) was immediately before he was transferred a contributor to the Manchester pension fund, and

(b) has continued in the employment of his new employing body,

these regulations have effect in relation to him, so long as he continues in the employment of that body, as if for any reference to an expression in column (1) of the following table (which lists certain expressions used in these regulations) there were substituted a reference to the expression appearing opposite thereto in column (2):—

(1)	(1)	(2)
1.	the Acts of 1937 to 1953, or the regulations made thereunder }	the Manchester pension provisions
1.	the Acts of 1937 to 1953, or the regulations made thereunder applying as amended or extended by any local Act or scheme or together with any such provisions }	the Manchester pension provisions
2.	the appropriate superannuation fund within the meaning of the Act of 1937 }	the Manchester pension fund
2.	a superannuation fund maintained under Part I of the Act of 1937 }	the Manchester pension fund
3.	contributory employee	contributor to the Manchester pension fund
4.	(a) contributing service and	service for purposes of the Manchester pension provisions
4.	(b) non-contributing service	service for purposes of the Manchester pension provisions
4.	for the purposes of the former regulations	service for purposes of the Manchester pension provisions
5.	the former regulations	the Manchester pension provisions
6.	a provision in the former regulations	the corresponding or similar provision in the Manchester pension provisions

(2) In this regulation—

“the Manchester pension fund” means the pension fund maintained immediately before 1st April 1974 by the Manchester City Council for the officers and servants of the Manchester Corporation; and

“the Manchester pension provisions” means the provisions of the enactments, and of the schemes and other instruments in force thereunder immediately before 1st April 1974, relating to the Manchester pension fund (including the provisions of the Acts of 1937 to 1953 and of any relevant instruments thereunder so far as applicable to that fund).

Persons transferred to scheduled bodies under section 18(4)(a) of the National Health Service Reorganisation Act 1973

H6

(1) This paragraph applies to a person—

(a) who was by or under an order made under section 18(4)(a) of the National Health Service Reorganisation Act 1973 transferred to the employment of a scheduled body, and

(b) who immediately before he was so transferred was in an employment in which he was an officer within the meaning of the Health Service regulations, and

(2) A person to whom paragraph (1) applies—

(a) is, subject to paragraph (3), entitled to reckon—

(i) as reckonable service any service which for the purposes of the Health Service regulations he was entitled to reckon in relation to the employment mentioned in paragraph (1)(b), as, or as a period of, contributing service, and

(ii) as qualifying service any service which for the purposes of those regulations he was entitled to reckon in relation to that employment for the purpose of determining whether he was entitled to a benefit under those regulations, but for no other purpose, and

(b) where immediately before he was transferred he was in the process of making payments which were or were deemed to be payments under Schedule 2 of the Health Service regulations, is entitled to make the outstanding payments as if they had been instalments of an amount payable under regulation D6 of the 1974 regulations and, if he completes the payments in the manner provided in Schedule 6, to have the service in respect of which they were made counted for all the purposes of these regulations at its full length, and

(c) where immediately before he was transferred he was in the process of making payments in respect of added years, is entitled to make the outstanding payments as if they had been payments of an amount payable under regulation D10 of the 1974 regulations and in respect of the added years in respect of which those payments are made shall enjoy rights and be subject to liabilities as if those years were added years reckonable under regulation D6 in the employment to which he is so transferred.

(3) For the purposes of paragraph (2)(a) any period of part-time service shall be treated as though it was whole-time service for a proportionately reduced period and, except for the purposes referred to in regulation E26(3), any service which was reckonable under the Health Service regulations for all purposes (other than for the purpose of determining whether any benefit was payable) as a period of contributing service at half its length shall, subject to paragraph (2)(b), be counted at half its length.

(4) Where immediately before he was transferred a person in relation to whom paragraph (1)(a) and (b) are satisfied was a person in respect of whom the Secretary of State paid contributions under regulation 45 of the Health Service regulations (persons subject to non-statutory superannuation schemes and arrangements) or carried out any such scheme or arrangements as are referred to in that regulation, that person shall not be subject to any provisions of these regulations except those contained in this regulation, and the body to which that person was transferred shall—

(a) where immediately before 1st April 1974 the Secretary of State was under regulation 45 of the Health Service regulations paying in respect of that person the contributions authorised or required by the relevant scheme to be paid by the employer, pay those contributions, and

(b) deduct from the person's remuneration the amount of any contribution required by the scheme or under the arrangements to be paid by the employee.

(5) In relation to a person who gave notice under regulation J11(3)(e) of the 1974 regulations that he did not wish to avail himself of the benefits provided under those regulations, these regulations have effect as if they conferred on him rights corresponding with those which he would have enjoyed if he had remained subject to the provisions of the Health Service regulations, and continue so to apply so long as he is employed without a disqualifying break of service by a scheduled body on duties reasonably comparable to those on which he was engaged immediately before he was transferred.

(6) Notwithstanding anything in paragraph (5), where that paragraph applies—

(a) regulation C12(11) has effect as if—

(i) sub-paragraph (a) were omitted, and

(ii) the reference in sub-paragraph (b) to reckonable service and qualifying service were a reference to service reckonable for the purpose of determining whether any benefit is payable,

(b) regulation D11 has effect as if—

(i) references to qualifying service included references to service reckonable for the purpose of determining whether any benefit is payable,

(ii) paragraph (2) were omitted,

(iii) in paragraph (3), the reference to regulation E2(1)(c) included a reference to regulation 8(1)(a)(iv) of the Health Service regulations, and

(iv) “retirement pension” included a pension payable by virtue of paragraph (5) of this regulation,

(i) “retirement pension” included a pension payable by virtue of that paragraph, and

(ii) for the purpose of ascertaining the remuneration of a former employment, entitlement to such a pension were not an entitlement under these regulations or the 1974 regulations, and

(d) regulation M1 has effect in lieu of regulation 55 of the Health Service regulations.

Gratuities etc. granted by former local authorities

H7

Notwithstanding the revocation of the 1974 regulations—

(a) an authority who became responsible under regulation J11(1) of those regulations for the continued payment of a gratuity or allowance remain so responsible, and

(b) an authority who became liable under regulation J1 IA of those regulations to contribute towards such continued payment remain so liable, and every agreement and every determination under that regulation continues to have effect,

as if the 1974 regulations had not been revoked.

Policy schemes

H8

Any agreement or trust deed which immediately before 1st March 1986 had effect as mentioned in regulation J12 of the 1974 regulations continues so to have effect, and any policy of insurance held by a scheduled body immediately before that date for the purposes mentioned in that regulation shall continue to be held by them for those purposes.

PART J — INTERCHANGE ETC.

Interpretation

J1

In this Part, unless the context otherwise requires—

"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;

“fund authority” means— in the application of regulations 12 to 16 to a person, the body maintaining the superannuation fund to which he was a contributor immediately before he ceased to be employed in his local government employment or, if that fund has been closed, the body which would be liable to pay him his pension in respect of that employment if he had been entitled to receive payment of such a pension when he ceased to be employed in his local government employment, and in the application of regulations JS to J12 to a person, the body maintaining the superannuation fund to which he became a contributor after he ceased to be employed in his non-local government employment or, if that fund has been closed— if when the fund was closed he was not employed in local government employment, the body which would be liable to pay him his pension in respect of the local government employment in question if he had been entitled to receive payment of such a pension when he ceased to be employed in that employment; and in all other cases, the body maintaining the superannuation fund to which he became a contributor when the fund was closed;

“local Act authority” and “local Act scheme” have— in relation to any time before 25th March 1972, the same meanings as in the Act of 1937, and in relation to any time on or after 25th March 1972, the same meanings as in section 8 of the Act of 1972;

“local government employer”, in relation to a person who is, or has been, employed in local government employment, means the body which is, or is treated as being, the employing authority or former employing authority for the purposes of the Acts of 1937 to 1953, the local Act scheme or these regulations, as the case may be;

“pension” does not include an allowance or gratuity; and

“service” means service or employment with any employer.

Outwards transfers

J2

(1) Subject to paragraphs (6) and (7), a transfer value shall be paid in relation to a person who has ceased to be employed in local government employment and has become employed in approved non-local government employment if the conditions in paragraph (3) are satisfied.

(2) This regulation applies even if the cessation of the local government employment, or the commencement of the approved non-local government employment, or both the cessation and the commencement, occurred before 1st March 1986.

(3) The conditions are that—

(a) he has made a written request to his fund authority for the transfer value to be paid, and

(b) subject to paragraph (4), the request was made not later than 6 months after 1st March 1986, or, if later, 6 months after the date on which he became employed in his approved non-local government employment, and

(d) in the case of a person who ceased to be employed in his local government employment before 31st March 1972, his local government employer has consented to the payment of the transfer value, and

(e) in the case of a person who received a return of contributions in relation to his local government employment (other than a person falling within paragraph (7)), he has within 3 months of making his request under sub-paragraph (a) paid his fund authority for the credit of their superannuation fund—

(i) a sum equal to the contributions returned to him (together with any interest which he was paid),

(ii) a sum equal to any deduction made on account of tax under section 378(2) of the Income Tax Act 1952[^f00066] or section 209(2) of the Income and Corporation Taxes Act 1970[^f00067], and

(iii) compound interest on both those sums calculated in accordance with regulation J7 for the period beginning with the date on which he received the return of contributions and ending on the date of his request under sub-paragraph (a) (but no interest is to be paid if that period is less than 6 months).

(4) The local government employer may in any particular case extend the period mentioned in paragraph (3)(b).

(5) The local government employer shall not give its consent under paragraph (3)(d) unless—

(a) in the interval between the employments the person was in employment outside the United Kingdom in relation to which rules made under section 2 of the Act of 1948 applied, or

(b) the person left his local government employment with a right to a prospective pension under a local Act,

and he has not previously made an application for a transfer value to be paid to the scheme managers in question in relation to his local government employment which was refused.

(6) A transfer value shall not be paid in relation to a person—

(a) who has received any benefit (other than a return of contributions) under the Acts of 1937 to 1953 and the regulations made thereunder, the former regulations, any local Act scheme, the 1974 regulations or these regulations in respect of his local government employment, or

(b) who ceased to be employed in local government employment on or after 6th April 1978 having reached state pensionable age, unless his accrued pension for the purposes of Schedule 16 relates solely to service after he reached state pensionable age; or

(c) who ceased to be employed in local government employment on or after 6th April 1978 and who has become employed in approved non-local government employment (other than employment with a Community institution) which is not contracted-out employment for the purposes of the Pensions Act, unless—

(i) the person is a married woman or widow who has made, or is treated as having made, an election for the purposes of section 3(2) of that Act and she has not revoked that election and, in consequence, on the cessation of her local government employment she has no accrued rights under these regulations to a guaranteed minimum pension in connection with that employment; or

(ii) an election has been made under section 42(2) of that Act to pay a contributions equivalent premium with a view to extinguishing the person's accrued rights under these regulations to a guaranteed minimum pension in connection with his local government employment, or

(d) in respect of whom a transfer value has been paid by the fund authority or a predecessor of that authority since he ceased to be employed in his local government employment, or

(e) who, on becoming employed in approved non-local government employment became entitled, without any condition as to receipt of a transfer value, to reckon service in his local government employment in relation to his approved non-local government employment, or

(f) if a direction has been made in relation to his service in his local government employment under regulation C12(9) or M1 or any corresponding provision of earlier legislation or a local Act scheme.

(7) In relation to a person who—

(a) ceased to be employed in local government employment on or after 1st April 1974 but before 1st January 1980 with an aggregate of at least 5 years' reckonable and qualifying service (or, if he was subject to a local Act scheme, with an aggregate of at least 5 years' service which was to to be taken into account under the scheme for the purposes of determining whether he was entitled to benefit), or

(b) ceased to be employed in local government employment on or after 1st January 1980,

and has received a return of contributions in relation to that employment, a transfer value may only be paid in relation to service in respect of which he is entitled to preserved benefits.

Additional transfer value on outwards transfer in certain cases

J3

(1) Notwithstanding regulation J2(6)(d), where after 31st March 1978 there has been paid in respect of a person to whom regulation F3 applies a transfer value in the calculation of which the period that he became entitled by regulation F6(1)(a) or (b) to reckon as reckonable service was not taken into account, an additional transfer value shall be paid in respect of that period.

(2) Notwithstanding regulation J2(6)(d), where a transfer value has been paid before 1st April 1978 in respect of a person in relation to whom one of the conditions in regulation F3(2)(a) to (e) is satisfied and the conditions in regulation F3(4) to (9) were satisfied at the time of payment, an additional transfer value shall be paid if the conditions in paragraph (3) are satisfied.

(3) The conditions are that the scheme managers of a public service scheme not specified in Schedule 14—

(a) have made a written request to the fund authority for the additional transfer value to be paid,

(b) have given them particulars of the service (being such whole-time service as is described in regulation F2(1)) to which it is to relate, and the rate or amount, as the case may be, to be used in ascertaining C of the formula set out in Part VI of Schedule 16, and

(c) have certified that on payment of the additional transfer value the person will be entitled to reckon extra service for the purposes of the scheme.

(4) This regulation does not apply where the transfer value was paid to the scheme managers of a water company scheme.

Amount of transfer value etc.

J4

(1) The amount of any transfer value payable under regulation J2 and of any additional transfer value payable under regulation J3(1) shall be calculated in accordance with the provisions of Parts I to IV of Schedule 16.

(2) The amount of any additional transfer value payable under regulation J3(2) shall be calculated in accordance with Part VI of Schedule 16.

(3) The transfer value or additional transfer value shall be paid to the scheme managers by the fund authority out of their superannuation fund.

(4) The fund authority shall provide the scheme managers and the person to whom the transfer value or additional transfer value relates with a written notice showing how it was calculated.

(5) A notice provided to a person under paragraph (4) shall include a statement of the kind required by regulation N7(2)(c).

Termination of right to payment out of fund authority's superannuation fund

J5

Notwithstanding anything in the Acts of 1937 to 1953 and the regulations made thereunder, the former regulations, any local Act scheme, the 1974 regulations or any other provision of these regulations (except regulations J3 and J6), where a transfer value is to be or has been paid under regulation J2 no other payment or transfer of assets shall, subject to regulations J3 and J6, be made out of the superannuation fund on account of the service to which the transfer value relates.

Rights where a person transfers to the Communities' scheme and leaves without a right to either an immediate or prospective pension

J6

(1) This regulation has effect to confer rights on a person and those claiming through him where—

(a) the person became employed by a Community institution after having been employed in local government employment, and

(b) the scheme managers of the Communities' scheme were paid a transfer value under regulation J2 in relation to his previous service in local government employment, and

(c) he ceased to be employed in his employment with the Community institution without the right to an immediate or prospective pension, and

(d) his fund authority has been paid for the credit of their superannuation fund—

(i) a sum equal to the amount of the transfer value which the scheme managers received, and

(ii) compound interest on that sum calculated in accordance with regulation J7 for the period beginning with the date on which the transfer value was received by the scheme managers and ending on the date on which the fund authority was paid the sum required by (i) above (but no interest is to be paid if that period is less than 6 months).

(2) Where the person ceased to be employed in his local government employment before 31st March 1972, he and those claiming through him shall, subject to paragraph (3), have the same rights as they would have had by virtue of the Acts of 1937 to 1953 and the regulations made thereunder, the former regulations, any local Act scheme and these regulations (so far as applicable) if—

(a) he had reached the age of 65 by the termination of his local government employment, and

(b) he had sufficient service at that time to qualify him for a pension; and

(3) Paragraph (2) shall not confer any right to—

(a) a return of contributions; or

(b) the payment of any benefit for any period ending on or before the date on which he left his employment with the Community institution or, if later, the earliest date on which any benefit would have been payable if he had left his local government employment with the right to a retirement pension under regulation E2(1)(c).

(4) Where the person ceased to be employed in his local government employment on or after 31st March 1972 in circumstances in which he would, apart from regulations J2 to J5, have been entitled to a pension (other than a pension under regulation E1(3)(b) or E2(2)) in respect of the service to which the transfer value relates, he and those claiming through him shall, subject to paragraph (6), have the same rights as they would have had by virtue of these regulations and any local Act scheme (so far as applicable) if the payment of the transfer value had not been requested or made.

(5) Where the person ceased to be employed in his local government employment on or after 31st March 1972 in circumstances in which he would not, apart from regulations J2 to J5, have been entitled to a pension (other than a pension under regulation EI(3)(b) or E2(2)) in respect of the service to which the transfer value relates, he and those claiming through him shall, subject to paragraph (6), have the same rights as they would have had by virtue of these regulations and any local Act scheme (so far as applicable) if—

(a) on the termination of his local government employment he had been entitled to reckon an aggregate of 5 years' reckonable and qualifying service (or, if he was subject to a local Act scheme, 5 years' service which would have been taken into account under the scheme for the purpose of determining whether he was entitled to benefit), and

(b) the payment of the transfer value had not been requested or made.

(6) Paragraphs (4) and (5) shall not confer any right to—

(a) a return of contributions, or

(b) the payment of any benefit for any period ending on or before the date on which he left his employment with the Community institution.

(7) For the purposes of this regulation references to those claiming through a person shall be construed as references to his widow, dependants, children and personal representatives so far as is appropriate in his particular case.

Compound interest on certain sums

J7

Compound interest under regulations C14(3)(b), J2(3)(e)(iii) and J6(1)(d)(ii) and Parts I (paragraph 1(2)), V (paragraph 7) and VI of Schedule 16 is to be calculated—

(a) at the rate of 6 per cent with yearly rests for each complete period of a year ending before 1st April 1977 (any residual period of less than a year is to be ignored), and

(b) at the rate of 2¼ per cent with 3-monthly rests for each complete period of 3 months beginning after 31st March 1977 (any residual period of less than 3 months is to be ignored).

Inward transfers

J8

(1) Subject to paragraphs (5) and (6), a transfer value offered to a person's fund authority by the scheme managers of his previous non-local government scheme shall be accepted by them and shall, together with the amount of any limited revaluation premium under section 45 of the Pensions Act repaid to the fund authority by the Secretary of State, be credited to their superannuation fund if the conditions specified in paragraph (3) are satisfied.

(2) This regulation applies even if the cessation of the non-local government employment, or the commencement of the local government employment, or both the cessation and commencement, occurred before 1st March 1986.

(3) The conditions are that—

(a) except where the transfer value is offered as mentioned in paragraph (5)(a) and is in respect of such a period as is mentioned in paragraph (5)(b), or relates only to service reckonable under the war service provisions of a public service scheme, he has made a written request to his fund authority for the transfer value to be accepted, and

(b) subject to paragraph (4), the request was made not later than 6 months after 1st March 1986 or, if later, 6 months after the date on which he became employed in his local government employment, and

(d) except in the case of a person who became employed in his local government employment on or after 1st January 1980 and who ceased to be employed in his non-local government employment on or after 31st March 1972, his local government employer has consented to the transfer value being accepted, and

(e) in the case of a person who became employed in his local government employment before 31st March 1972, he was employed in local government employment on that date.

(4) The local government employer may in any particular case extend the period mentioned in paragraph (3)(b).

(5) A transfer value which—

(a) is offered by the scheme managers of a public service scheme in relation to a person in relation to whom a transfer value was accepted and received before 1st April 1978, and

(b) is in respect of a period which could if he had not ceased to be employed in his non-local government employment have become reckonable under the war service provisions of the scheme,

shall not be accepted unless it is one calculated in accordance with Part VI of Schedule 16.

(6) A transfer value under paragraph (1) shall not be accepted in relation to a person if—

(a) his non-local government employment was contracted-out employment for the purposes of the Pensions Act, and

(b) his non-local government scheme was not a statutory scheme or a scheme which is to be treated for the purposes of Schedule 17 as being a statutory scheme, and

(i) the annual equivalent of his guaranteed minimum in respect of service to which the transfer value relates, and

(ii) where equivalent pension benefits were, but would not remain, assured by his non-local government scheme, the annual rate of those benefits.

(7) A person's resultant pension shall be calculated in accordance with the formula:

$$R=[N80×S]$ where— R is the annual amount of the resultant pension, N is the reckonable service (expressed in years and fractions of a year) which would, apart from paragraph (5), be credited to him under regulation J9(1)(a) if the transfer value were to be accepted by the fund authority, and S is the annual rate of his remuneration on becoming employed in his local government employment (if he is paid weekly, the annual rate shall be calculated by multiplying the weekly rate by 52.18).$

(8) A person's guaranteed minimum shall be calculated in accordance with section 35 of the Pensions Act (except that subsections (7) and (8) shall be ignored) by reference to the regulations applying in relation to that section, and the orders in force under section 21 of that Act, when he becomes employed in his local government employment, and the annual equivalent shall be calculated by multiplying the guaranteed minimum by 52.18.

Right to reckon service

J9

(1) Where a transfer value (other than one to which regulation J8(5) applies) has been accepted in relation to a person under regulation J8—

(a) he shall, subject to regulation J10(4), (5) and (6), be entitled to reckon as reckonable service a period calculated in accordance with Schedule 17 for all purposes of these regulations except that of determining whether there is any entitlement to benefit (other than any benefit under regulation E2(2)), and

(b) he shall be entitled to reckon as qualifying service any service to which the transfer value relates which would not otherwise be qualifying service.

(2) A period reckonable under paragraph (1)(a) shall be treated as reckonable service after 31st March 1972 for the purposes of making any calculation under these regulations.

(3) Service reckonable under paragraph (1)(b) shall count at its actual length.

(4) The fund authority shall provide the person with a written notice stating the periods of service which he is entitled to reckon under paragraph (1)(a) and (b) and, in the case of a person who became employed in his local government employment before 1st April 1980, whether or not his retirement pension is subject to reduction under regulation J11 or J12.

(5) A notice under paragraph (4) shall contain a statement of the kind required by regulation N7(2)(c).

Increase in return of contributions

J10

(1) Where—

(a) a person to whom regulation J9 applies ceases to be employed in employment in which he is a pensionable employee in circumstances in which a return of contributions is payable to him under regulation C12(3) to (5),

(b) he would have been entitled to a return of contributions under his non-local government scheme in respect of service to which the transfer value accepted under regulation J8 relates on the termination of his non-local government employment if a transfer value had not been payable, and

the sum due to him under regulation C12(3) to (5) shall be increased by an amount equal to the return of contributions (including any interest) which would have been paid to him under his non-local government scheme in respect of that service in the circumstances specified in sub-paragraph (b) if it had been paid when the transfer value was received by his fund authority.

(2) Where compound interest is payable on the contributions to be returned under regulation C12(3) to (5), compounded interest calculated at the same rate and in the same manner shall also be payable on the amount of the increase under paragraph (1) for the period beginning with the date on which the transfer value was received by the fund authority and ending on the date on which he ceased to be employed in the employment in which he was a pensionable employee.

(3) Nothing in paragraphs (1) and (2) shall confer any entitlement to an increase on account of contributions which were returned to and were not subsequently repaid by the person who paid them.

(4) Where a sum due under regulation C12(3) to (5) is increased under paragraph (1) by an amount equal to the whole of the person's contributions in connection with the service to which the transfer value relates and that is the only service to which the transfer value relates, his right to reckon service under regulation J9(1)(a) (but not under regulation J9(1)(b)) on account of the transfer value shall be extinguished when the increased payment is made.

(5) Where a sum due under regulation C12(3) to (5) is increased under paragraph (1) and paragraph (4) does not apply, the person's right to reckon service under regulation J9(1)(a) (but not under regulation J9(1)(b)) on account of the transfer value shall be reduced in accordance with the formula in paragraph (6) when the increased payment is made.

(6) The formula mentioned in paragraph (5) is—

$$A=B×(C-D)C$ , where— A is the reduced service which the person is entitled to reckon under regulation J9(1)(a) after the payment is made, B is the service which he is entitled to reckon under regulation J9(1)(a) before the payment is made, C is the service which he is entitled to reckon under regulation J9(1)(b), and D is the service on account of which the increase under paragraph (1) is made and, for this purpose, the service shall count at its actual length.$

(7) Service is to be expressed in years and fractions of a year for the purpose of making the calculation in paragraph (6).

National Insurance modification for flat-rate retirement pension

J11

(1) The retirement pension of a person to whom regulation J9 applies shall be reduced in accordance with paragraph (2) where—

(a) he became employed in his local government employment before 1st April 1980, and

(b) on becoming employed in his local government employment he did not enjoy unmodified status for the purposes of Part F of the 1974 regulations, and

(c) his retirement pension is calculated by reference to reckonable service which includes the period which he is entitled to reckon under regulation J9(1)(a).

(2) Regulation F7 of the 1974 regulations shall be taken to have applied in relation to the period which he is entitled to reckon under regulation J9(1)(a) as if—

(a) during that period he had been a person within Case B of Part F of the 1974 regulations, and

(b) that period were service after 31st August 1947, and

(c) he had been a person who was not immediately before the appointed day entitled to the optant's rate for the purposes of the National Insurance (Modification of Local Government Superannuation Schemes) Regulations 1969[^f00068].

National Insurance modification for graduated retirement pension

J12

(1) The retirement pension of a person to whom regulation J9 applies shall be reduced by the amount specified in paragraph (2) where—

(a) he became employed in his local government employment before 1st April 1980, and

(b) his non-local government scheme was a statutory scheme, and

(c) in calculating the amount of the transfer value accepted under regulation JS a deduction was made in connection with graduated retirement benefit under section 36 of the Insurance Act, and

(d) his retirement pension is calculated by reference to reckonable service which includes the period which he is entitled to reckon under regulation J9(1)(a).

(2) The specified amount is the reduction in connection with graduated retirement benefit under section 36 of the Insurance Act which would have been made to the person's pension under his non-local government scheme in relation to the service to which the transfer value relates if on ceasing to be employed in his non-local government employment—

(a) he had reached state pensionable age, and

(b) he had become entitled to the immediate payment of a pension under that scheme instead of the payment of a transfer value.

(3) The reduction under this regulation shall take effect on the date on which the person's retirement pension becomes payable or, if later, the date on which he reaches state pensionable age and shall be additional to any reduction required by regulation J11.

(4) The reduction under this regulation shall be treated for the purposes of Schedule 16 as a reduction made in connection with graduated retirement benefit under section 36 of the Insurance Act.

Certain persons who become subject to other superannuation schemes

J13

(1) Subject to paragraph (2), this regulation applies to a person who is in an employment—

(a) under a passenger transport executive or a water authority in which he is a pensionable employee, or

(b) in which he is an admitted employee within the meaning of regulation B3,

and for whose superannuation in that employment (“the relevant employment”) the body employing him can make other provision under an approved non-local government scheme which would be a contracted-out scheme in relation to the employment for the purposes of the Pensions Act.

(2) This regulation does not apply to a person unless he gives written notice to the body employing him, and to the appropriate administering authority if different, that he wishes it to apply to him, and they consent to its doing so.

(3) On the person's becoming subject in the relevant employment to an approved non-local government scheme, he shall be treated for the purposes of these regulations, except regulations C12 (return of contributions) and J2 to J6, as having ceased to hold the relevant employment.

(4) On, but not before, the actual termination of the relevant employment, the person may, unless regulation J14 applies to him, request the payment of a transfer value under regulation J2.

(5) If a transfer value is requested in the circumstances mentioned in paragraph (4)—

(a) regulations J2 to J6 apply as if the person had continued to be employed in his local government employment until the date of the actual termination of the relevant employment, but

(b) Schedule 16 applies as if his local government employment had ended on the day before he became subject to the approved non-local government scheme.

Transfer of pension rights

J14

(1) Where—

(a) regulation J13 applies to a person, and

(b) on the date on which he becomes subject to the approved non-local government scheme he has not reached state pensionable age, and

(c) before that date he has given written notice to the appropriate administering authority and, if different, to his employing authority that he wishes to transfer his pension rights under these regulations to the approved non-local government scheme, and

(d) the scheme managers, the appropriate administering authority and, if different, his employing authority have each given their consent before that date,

the appropriate administering authority shall, subject to paragraphs (4) and (6), pay to the scheme managers out of the superannuation fund a transfer value calculated in accordance with Schedule 16.

(2) The appropriate administering authority shall not give their consent under paragraph (1)(d) unless the person transferring his pension rights will acquire pension rights under the approved non-local government scheme at least equivalent to those which he would have obtained if a transfer value had been paid to the scheme managers under regulation J2.

(3) The appropriate administering authority shall provide the person transferring his pension rights with sufficient information in writing to check that the condition in paragraph (2) is satisfied.

(4) If—

(a) the number of persons transferring their pension rights under paragraph (1) from a particular superannuation fund to the same or a different approved non-local government scheme as part of the same transfer scheme is more than 9 but less than 100, and

(b) the fund's assets immediately before any transfer takes place are not adequate, or are more than adequate, to meet the accrued actuarial liabilities of the fund at that time,

the total payable under paragraph (1) (or, as the case may be, the respective totals) shall be adjusted to the extent that the fund's actuary and the actuary of the approved non-local government scheme consider appropriate in the circumstances.

(5) If any question arises as to the application of paragraph (4) or the actuaries are unable to agree on the adjustment to be made under that paragraph, the adjustment (if any) to be made shall be decided by an actuary appointed by the Secretary of State.

(6) If the number of persons transferring their pension rights under paragraph (1) from a particular superannuation fund to the same or a different approved non-local government scheme as part of the same transfer scheme is 100 or more—

(a) no payment shall be made under that paragraph; and

(b) the fund shall be apportioned in accordance with Schedule 18.

(7) Where paragraph (6) applies in relation to any person, he shall be treated for the purposes of regulation D3(7) as if a transfer value had been paid in relation to him under paragraph (1).

(8) Notwithstanding anything in the Acts of 1937 to 1953 and the regulations made thereunder, the former regulations, any local Act scheme or any provision of the 1974 regulations or these regulations, where a payment or transfer of assets is to be or has been made under this regulation or under Schedule 18 no other payment or transfer of assets shall be made out of the superannuation fund on account of service or employment to which the payment or transfer of assets under this regulation or under Schedule 18 relates.

(9) A person shall be treated for the purposes of this regulation as having tranferred his pension rights on the date on which he becomes subject to the approved non-local government scheme.

(10) For the purposes of this regulation, a transfer scheme is a scheme agreed between the scheme managers, the appropriate administering authority and, if different, the employing authority providing for the transfer of pension rights under this regulation of a number of persons.

(11) “Accrued actuarial liabilities” means the actual and potential liabilities of the fund in connection with any service or employment before any transfer takes place.

PART K — GRATUITIES

Power to grant gratuities

K1

(1) Any scheduled body may grant to any employee on his ceasing to be employed by them, or to the widow or any other dependant of an employee who dies in their employment, a gratuity either—

(a) by way of a lump sum not exceeding an amount equal to twice that of the annual emoluments of the employment; or

(b) by way of periodical payments not exceeding in the aggregate the amount aforesaid; or

Provided that—

(i) a gratuity granted under this paragraph shall not be paid out of the superannuation fund;

(ii) this paragraph shall not apply in the case of a pensionable employee who is entitled to any payment out of the superannuation fund other than a return of contributions.

(2) Where a body have granted a gratuity to an employee under paragraph (1) and either—

(a) the gratuity was by way of periodical payments and the employee dies before all the payments are completed; or

(b) the gratuity was by way of an annuity and the employee dies before receiving an aggregate amount equal to the capital value of the annuity,

the body may grant a gratuity to the widow or any other dependant of the employee, and for that purpose paragraph (1) shall have effect as if the employee had died while in the employment of the body but as if for the amount specified in that paragraph there were substituted the aggregate amount of the periodical payments outstanding at the employee's death or, as the case may be, the difference between the capital value of the annuity and the aggregate amount of the payments made to the employee before his death.

Application to certain other bodies

K2

(1) Subject to paragraphs (2) to (5), regulation Kl applies in relation to—

(a) a probation committee,

(b) a magistrates' courts committee, and

as if the committee were a scheduled body.

(2) The probation committee for an area other than the inner London area are to report any decision made by them under regulation Kl to the body responsible for defraying the expenses of the committee, or, where two or more bodies contribute to the defraying of those expenses, to each of those bodies.

(3) A magistrates' courts committee are to report any decision made by them under regulation Kl to the body who paid the employee's remuneration.

(4) Where a report is made under paragraph (2) or (3) above, regulation N8 has effect as if any body receiving the report were a person mentioned in paragraph (3) of regulation N8 (service of notice of appeal) and paragraph (2) of regulation N8 were omitted.

(5) Any decision made under regulation K1 by—

(a) the probation committee for the inner London area, or

(b) the committee of magistrates for that area,

is to be reported by the committee to the Secretary of State, and has no effect until approved by him; and any gratuity granted by virtue of such an approved decision is to be paid by the Receiver for the Metropolitan Police District.

PART L — INJURY ALLOWANCES ETC.

Interpretation

L1

In this Part, unless the context otherwise requires—

“benefits” means any allowance or lump sum payable under this Part;

“relevant body” has the meaning given by regulation L7; and

“relevant employment” has the meaning given by regulation L2(2).

Persons to whom Part L applies

L2

(1) Subject to paragraph (4), this Part applies to a person employed in a relevant employment if he—

(a) sustains an injury, or

(b) contracts a disease,

as a result of anything he was required to do in carrying out his work.

(2) Relevant employment is employment, otherwise than as a teacher—

(a) with a body listed in column (1) of Part I of Schedule 2 or (with the exception of passenger transport executives) in Part II of that Schedule or the predecessor of such a body, or

(b) in which the person is by virtue of section 15 of the Act of 1953 or regulation B4 or J8 of the 1974 regulations or regulation B3 of these regulations (which relate to admission agreements) entitled to participate in the benefits of a superannuation fund maintained under the former regulations or these regulations,

and for the purposes of this Part a police cadet appointed under section 17 of the Police Act 1964[^f00069] shall be deemed to be in employment with the police authority who maintain the police force with which he is undergoing training.

(3) A person is to be treated for the purposes of paragraph (1) as having sustained an injury as mentioned in that paragraph if—

(a) he sustains the injury while travelling as a passenger by a vehicle with the express or implied permission of his employer to or from his place of work, and

(b) at the time of the injury the vehicle was being operated, otherwise than in the course of a public transport service, by or on behalf of his employer or pursuant to arrangements made by his employer.

(4) This Part does not apply where the injury or disease is one in respect of which the person is entitled to an injury award under a scheme made in accordance with section 26 of the Fire Services Act 1947[^f00070] or is entitled to injury benefits under regulations made in accordance with section 35 of the Police Act 1964.

Loss of employment through permanent incapacity

L3

(1) If as a result of an incapacity which is likely to be permanent caused by the injury or disease a person to whom this Part applies ceases to be employed in a relevant employment (whether or not it is the same employment as that in which the injury or disease was sustained or contracted), he shall be entitled to an annual allowance.

(2) The allowance is to be paid by the relevant body and is to be of such amount as the body may from time to time determine.

(3) The relevant body may suspend or discontinue the allowance if the person becomes capable of working again.

(4) The allowance is not to be paid at a rate which exceeds 85 per cent of the person's annual rate of remuneration in respect of the employment when he ceased to be employed.

(5) In ascertaining for the purposes of paragraph (4) a person's annual rate of remuneration in respect of the employment when he ceased to be employed—

(a) the annual rate of any fluctuating element of his remuneration is to be estimated by reference to an average taken over a representative period,

(b) the annual rate of any benefit in kind included in his remuneration is to be the estimated annual value of the benefit in kind at the date on which he ceased to be employed,

(c) if at that date he had no remuneration or his remuneration was reduced because of absence from duty, the annual rate is to be taken to be the annual rate which would have applied if he had not been absent,

(d) if at that date he was entitled to an allowance under regulation L4 by reason of a reduction in his remuneration, whether as a result of the same or of some either injury or disease, the annual rate is to be taken to be the annual rate which would have applied if his remuneration had not been reduced,

(e) if his remuneration is retrospectively altered as a result of a pay award, the annual rate of his remuneration is to be based on the retrospective pay award, and

(f) if his remuneration is not calculated by reference to an annual rate but by reference to some other rate, the annual rate is to be derived from the applicable rate at the date on which he ceased to be employed.

(6) In determining the amount of the allowance the relevant body is to have regard to all the circumstances of the case, including the matters specified in regulation L8.

Reduction in remuneration

L4

(1) If as a result of the injury or disease a person to whom this Part applies suffers a reduction in his remuneration while he is employed in relevant employment (whether or not it is the same employment as that in which the injury or disease was sustained or contracted) and regulation L3 does not apply, he shall be entitled to an allowance while the reduction continues.

(2) A person's remuneration is to be treated for the purposes of paragraph (1) as reduced if at any time it is lower than it would have been but for the injury or disease.

(3) The allowance is to be paid by the relevant body and is to be of such amount as the body may from time to time determine.

(4) The amount of the allowance, together with the person's remuneration in the relevant employment, is not in any year to exceed the remuneration he would have been paid if he had not sustained or contracted the injury or disease.

(5) In determining the amount of an allowance under this regulation the relevant body is to have regard to all the circumstances of the case, including the matters specified in regulation L8.

Allowances for pensioners

L5

(1) If on ceasing to be employed in a relevant employment a person becomes entitled under regulation E2 to receive payments in respect of an annual retirement pension and—

(a) immediately before ceasing to be so employed he was entitled to an allowance under regulation L4, and

(b) on ceasing to be so employed he does not become entitled to an allowance under regulation L3, and

the relevant body may pay him an allowance under this regulation.

(2) An allowance under this regulation—

(a) is not in any year to exceed the amount by which the annual rate of the retirement pension falls short of what it would have been if the amount of the allowance paid under regulation L4 during the relevant period (within the meaning of regulation E22(2)) had been part of his remuneration in the relevant employment, and

(b) continues for such period as the relevant body may determine.

Death benefits

L6

(1) If a person to whom this Part applies dies as a result of the injury or disease—

(a) if he leaves a widow who qualifies under paragraph (2), she shall be entitled to an annual allowance or lump sum, and

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