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The Local Government Pension Scheme Regulations 1995

Type Statutory-Instrument

Publication 1995-04-06

State In force

Department Queen's Printer of Acts of Parliament

Source legislation.gov.uk

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(2) In paragraph (1) “the indexed training rate” means the annual rate at which an official pension (within the meaning of the Pension (Increase) Act 1971[^f00024]) would for the time being be payable if it had begun on 1st April 1994 and had then been payable at an annual rate of £1,450.

Discretions as to payment of children’s pensions

G11

(1) The appropriate administering authority may apportion a children’s pension among the eligible children in respect of whom it is for the time being payable in such shares as they think fit.

(2) The appropriate administering authority may pay a children’s pension or any part of it to a person other than an eligible child, to be applied for the benefit of any eligible child or eligible children in accordance with any directions the authority may give.

Adjustments to children’s pensions for certain re-employed pensioners etc.

G12

The provisions of this Part have effect subject to Part IV of Schedule D5 (re-employed pensioners) and to paragraph 3 of Schedule F1 (women dying before 6th April 1988).

PART H — GENERAL PROVISIONS CONCERNING BENEFITS

Interest on late payment of certain benefits

H1

(1) Where all or part of—

(a) a pension payable under Part D, F or G (other than a pension payable to a surviving spouse under regulations F1 in a case where the surviving spouse is not entitled to a pension under regulation F2),

(b) a retirement grant,

(d) a death grant, or

(e) a payment under regulation H6,

is not paid within the relevant period after the due date, the appropriate administering authority shall pay the person to whom the pension or grant is payable interest on the amount remaining unpaid, calculated at one per cent. above base rate on a day to day basis from the due date to the date of payment, and compounded with three-monthly rests.

(2) For the purposes of paragraph (1) the due date is—

(a) in the case of a retirement pension which becomes payable by virtue of an election under regulation D9(2)(b) or D11(2)(d), one month after the date on which the notice of election is duly given;

(b) in the case of part of a pension which becomes payable by virtue of payments of contributions (other than an increase in contributions made following a decision under regulation J1 or J5) made after the date on which the remainder of the pension became payable, one month after those payments or contributions were paid;

(c) in the case of a pension or part of a pension which becomes payable by virtue of contributions made following such a decision, the date on which that pension or part of a pension would have become payable had those contributions been made on the first date which would otherwise have applied;

(d) in the case of any other pension or part of a pension, the date on which it becomes payable;

(e) in the case of a retirement grant or part of a retirement grant (other than one to which paragraph (3) applies), the date on which that grant or part becomes payable;

(f) in the case of an ill-health retirement grant, the day after the person who is entitled to the grant ceased to hold his employment;

(g) in the case of a death grant, the date on which—

(i) probate or letters of administration are produced to the administering authority, or

(ii) the authority become satisfied that the grant may be paid as provided in regulation H7; and

(h) in the case of a payment under regulation H6, the day after the person to whom the payment is made would otherwise become entitled to payment of his pension.

(3) Where—

(a) a retirement grant becomes payable by virtue of an election under regulation D9(2)(b) or D11(2)(d) made by a notice given on or after the date on which the grant becomes payable, or

(b) a part of a retirement grant becomes payable by virtue of payments or contributions made after the date on which the remainder of the grant became payable;

then, the due date is—

(i) in the case mentioned in paragraph (a), one month after the notice was given, and

(ii) in the case mentioned in paragraph (b)—

(I) where an increase in contributions is made following a decision under regulations J1 or J5, the date on which the grant or the part of the grant would have become payable had those contributions been made at the first opportunity which these regulations would otherwise have provided, and

(II) otherwise, one month after the increase in contributions was paid.

(4) For the purposes of paragraph (1) the relevant period means—

(a) in the case of a pension within paragraph (a) of that paragraph, one year, and

(b) in the case of a grant within paragraph (b), (c) or (d) of that paragraph or a payment within paragraph (e) of that paragraph, one month.

National Insurance

H2

Where, but for the revocation of the 1974 regulations, the amount of a benefit would have fallen to be reduced under Part F of those regulations, the amount shall be reduced as if that Part had not been revoked.

Benefits not assignable

H3

Every benefit to which a person is entitled under these regulations—

(a) is payable to or in trust for him, and

(b) is not assignable or chargeable with that or any other person’s debts or other liabilities.

H4

(1) If—

(a) a person has been convicted of an offence in connection with an employment as respects which he was a member;

(b) he has (whether before or after the conviction) ceased to hold that employment in consequence of that offence; and

(c) on an application made within three months after the conviction by the body who were his employing authority in that employment, the Secretary of State has certified that the offence—

(i) was gravely injurious to the State, or

(ii) is liable to lead to serious loss of confidence in the public service,

then that body may direct that all or any of the rights enjoyed by or in respect of him under these regulations as respects his previous membership shall be forfeited.

(2) No direction may be given under paragraph (1) which would deprive a convicted person of his guaranteed minimum pension or would, in the event of his leaving a surviving spouse, deprive that spouse of any widow’s or widower’s guaranteed minimum pension, unless the convicted person ceased to hold his employment in consequence of—

(a) an offence of treason, or

(b) one or more offences under the Official Secrets Acts 1911 to 1989[^f00025] for which he has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years.

(3) If—

(a) a person has ceased to hold an employment as respects which he was a member in consequence of an offence in connection with his employment, and

(b) the body who were his employing authority have neither notified a decision under Part J on any question as to entitlement to a benefit nor given any direction under paragraph (1)

the appropriate administering authority shall, if so directed by that body, make interim payments of such amounts as may be specified in the direction to any person so specified who appears to the body to be a person who would be entitled to receive payment of a benefit under these regulations if no direction under paragraph (1) were given.

(4) Directions under paragraph (3) shall not require any person to be paid more than it appears to the body giving the direction that he would for the time being be entitled to have been paid on the assumption that no direction under paragraph (1) will be given, but such directions do not constitute decisions under Part J as to any person’s entitlement to a benefit.

(5) Payments made to a person in accordance with directions under paragraph (3) shall be deemed to have been payments in respect of a benefit to which he was entitled, notwithstanding any direction given under paragraph (1) or any decision under Part J as to entitlement to the contrary.

(6) A body applying for a certificate under paragraph (1)(c) in respect of a convicted person shall at the same time send copies of the application to him and to the appropriate administering authority.

Commutation: small pensions

H5

(1) Where the annual rate—

(a) of a retirement pension (or pensions) to which any person has become entitled as a member or former member, or

(b) of a long-term pension to which any surviving spouse has become entitled, or

amounts (or amount in aggregate) to not more than the relevant amount, the appropriate administering authority may discharge their liability in respect of that pension (or those pensions) by payment to the member or former member or, in the case of a surviving spouse’s pension, the spouse or, in the case of a child’s pension, any person who appears to them to be appropriate, of a lump sum of such amount as represents the capital value of the relevant pension (or pensions), calculated in accordance with tables prepared by the Government Actuary.

(2) For the purposes of this regulation, the relevant amount is—

(a) in the case of a retirement pension £195;

(b) in the case of a surviving spouse’s long-term pension £260;

but, for the purposes of determining whether such pension or pensions exceed the relevant amount, the pension—

(i) shall be taken in include any increase payable under the Pensions (Increase) Act 1971[^f00026] in respect of it, and

(ii) shall be aggregated with any other such pension to which the member or, in the case of a surviving spouse’s pension, that spouse or, in the case of a children’s pension, any child or other person, has become entitled under the Scheme in respect of the member in question.

(3) This regulation only applies to a retirement pension where the member who has become entitled to the pension has attained state pensionable age, and a member shall not be treated as having become entitled to a retirement pension under regulation D11 until the date (if any) on which he becomes entitled to receive payments in respect of that pension.

(4) Where a payment is made to a person under paragraph (1) in respect of any retirement pension or pensions—

(a) it shall include a payment of an amount representing the capital value (calculated as there mentioned) of any surviving spouse’s long-term pension which, if the person died leaving a surviving spouse, would be payable to that spouse; and

(b) the liability in respect of any such surviving spouse’s long-term pension or pensions and in respect of any children’s long-term pension which, if the person died leaving an eligible child or eligible children, would be payable to or for the benefit of that child or those children is also discharged by the payment.

Commutation: exceptional circumstances of ill-health

H6

(1) Where at the time a retirement pension first becomes payable to a member or former member under Part D the appropriate administering authority are satisfied, having considered the advice of a registered medical practitioner—

(a) that the member or former member is exceptionally ill, and

(b) that he has a life expectancy of less than one year,

they may discharge their liability in respect of—

(i) so much of that pension as exceeds his guaranteed minimum, and

(ii) any lump sum death grant which would otherwise be payable at his death under regulation E3 or E4,

by payment to him of a lump sum of an amount equal to five times the amount by which the annual rate of the retirement pension which would otherwise be payable to him exceeds the amount of his guaranteed minimum.

(2) The appropriate administering authority shall deduct from any payment under this regulation any tax to which they may become chargeable under section 599 of the Income and Corporation Taxes Act 1988[^f00027] (charge to tax: commutation of entire pension in special circumstances).

Payments due in respect of deceased persons

H7

(1) Where a person dies and the total of—

(a) any sums that were due to him under these regulations, and

(b) any other sums payable under these regulations to his personal representatives,

(“the amount due”) does not exceed the amount specified in any order for the time being in force under section 6 of the Administration of Estates (Small Payments) Act 1965[^f00028] and applying in relation to his death, then the appropriate administering authority may, without requiring the production of probate or letters of administration of his estate, pay the whole or any part of the amount due out of their pension fund—

(i) to the personal representatives, or

(ii) to the person, or to or among any one or more of any persons, appearing to the authority to be beneficially entitled to the estate.

(2) Where a payment is made to any person under paragraph (1), the administering authority cease to be liable to account for the amount paid to him.

Benefits in respect of certain persons employed before April 1974

H8

In relation to a member who is a person to whom regulation E19 of the 1974 regulations applied but who did not make an election under that regulation, these regulations apply—

(a) if he fell within paragraph (1)(b)(i) of that regulation (no previous right to retiring grant or widow’s pension), subject to the modifications set out in Parts I and III of Schedule H1; and

(b) if he fell within paragraph (1)(b)(ii) of that regulation (no previous right to widow’s pension), subject to the modifications set out in Parts II and III of that Schedule.

PART J — DETERMINATIONS AND APPEALS

Initial decisions

J1

(1) Any question concerning the rights of liabilities under these regulations of any person other than a LGPS employer shall be decided in the first instance by the relevant LGPS employer.

(2) Where the LGPS employer by whom any such question falls to be decided is ascertainable by reference to regulations J2 or J3, for the purposes of this regulation and of regulation J5 that employer shall be the relevant employer.

(3) A decision by the relevant employer does not bind any other LGPS employer or the Secretary of State.

Decisions as to status of employees

J2

(1) A LGPS employer shall decide in relation to each of their employees who is a member—

(a) whether he is an officer or a manual worker,

(b) whether he is a whole-time, a variable-time or a part-time employee,

(d) if he is a part-time employee—

(i) the proportion which is contractual minimum hours of employment in each week bear to those of a comparable whole-time employment, and

(ii) if paragraph (4)(iii) of regulation B3 applies to his contractual hours, the average number of those hours for the purposes of that paragraph.

(2) In relation to any employment in which a person is a member, the appropriate administering authority are to decide—

(a) what previous service or employment (if any) he is entitled to count as a period of membership or a period to which Part II of Schedule B6 applies,

(b) whether any, and if so what, periods of service as a part-time employee are included in such a period,

(d) whether a payment in lieu of contributions has been made or equivalent pension benefits have been assured under Part III of the National Insurance Act 1965[^f00029] in respect of any period of non-participating employment,

(e) what rate of contribution the employee is liable to pay to the appropriate pension fund,

(f) whether he is entitled to count as a period of membership—

(i) any, and if so how many, added years, or

(ii) any, and if so what, additional period, and

(g) whether for the purposes of Schedule C5 he is a Class A member, a Class B member or a Class C member (within the meaning of that Schedule).

(3) The questions specified in paragraph (1) shall be decided as soon as is reasonably practicable after—

(a) the person becomes a member, or

(b) any change occurs in the number of the member’s regular or usual hours of employment, or

(4) The questions specified in paragraph (2) shall be decided as soon as is reasonably practicable after the person becomes a member of the Scheme in respect of the relevant employment.

Decisions as to benefits

J3

(1) Any question whether a person is entitled to a benefit under these regulations is to be decided by the LGPS employer who last employed the person in respect of whose employment the question arises. *

(2) Where a person is or may become entitled to a benefit payable out of a pension fund, the administering authority maintaining that fund shall decide the amount of the benefit.

(3) In this regulation “benefit” includes a return of contributions and for the purposes of paragraph (2) (but not for paragraph (1) it includes a benefit specified in regulation F6(12) or (16) of the 1986 regulations.

(4) The decision under paragraph (1) shall be made as soon as is reasonably practicable after the cessation of the employment or, as the case may be, the death of the employee and that under paragraph (2) as soon as is reasonably practicable after the occurrence of the event by virtue of which the entitlement arises or may arise.

Notification of decisions

J4

(1) A body who have decided any question under this Part shall, as soon as is reasonably practicable after doing so, send a written notification of their decision to every person whose rights or liabilities are affected.

(2) The notification shall include—

(a) in the case of a decision that the person is not entitled to a benefit, the grounds for the decision,

(b) in the case of a decision as to the amount of a benefit, a statement showing how the amount is calculated, and

(i) to the address from which he may obtain further information about the decision, including details of any calculation of service or benefits, and

(ii) to his right under regulation J5 to appeal to the Secretary of State.

Appeals

J5

(1) Where—

(a) the relevant employer has decided or failed to decide any such question as is mentioned in regulation J1, and

(b) an appeal is duly made to the Secretary of State,

then, subject to the following provisions of this regulation, the question shall be determined by him and his determination of it shall be final.

(2) Subject to paragraph (3), the Secretary of State shall not determine any question that fell to be decided by the relevant employer in the exercise of a discretion conferred on them by these regulations.

(3) Paragraph (2) does not apply—

(a) where the appeal relates to a pension (within the meaning of section 12 of the Superannuation Act 1972[^f00030]) which is being paid or may become payable to or in respect of a person who ceased to hold his local government employment or died before 1st October 1981; or

(b) where notice of appeal is served by the Common Council of the City of London in respect of a resolution under regulation B17(1).

(4) No appeal may be made requiring a determination that a person’s remuneration in respect of a period ending on or before 31st December 1992 includes the money value to him of the provision of a motor vehicle.

(5) An appeal under this regulation shall be made by notice in writing which—

(a) shall be served (whether by being sent by post or otherwise) as soon as is reasonably practicable, and

(b) may be served—

(i) by any person whose rights or liabilities the question concerns, and

(ii) where the relevant employer is not an administering authority, by the administering authority maintaining the pension fund to which the employer pays employer’s contributions.

PART K — INTERCHANGE ETC

Preliminary

Interpretation

K1

In this Part, unless the context otherwise requires—

“fund authority” means— in the application of regulations K2 to K12 to a person, the body maintaining the pension 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 K13 to K19 to a person, the body maintaining the pension 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 otherwise, the body maintaining the pension fund to which he became a contributor when the fund was closed;

“local Act scheme” has— in relation to any time before 25th March 1972, the same meaning as in the Act of 1937, and in relation to any time on or after that date, the same meaning as in section 8 of the Superannuation Act 1972[^f00031];

“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 or, as the case may be, the local Act scheme or these regulations;

“pension” does not include an allowance, grant or gratuity;

“service” means service or employment with any employer;

“state scheme premium” has the same meaning as in the Pension Schemes Act 1993[^f00032].

Transfers out

Outwards transfers

K2

(1) Subject to regulation K4, where a person has ceased to be a member by virtue of—

(a) ceasing to be employed in local government employment, or

(b) a notification under regulation B12 (leaving the Scheme),

and the conditions in paragraph (2) are satisfied, then the fund authority shall pay a transfer value in respect of him to be used in accordance with section 95 of the Pension Schemes Act 1993 (ways of taking right to cash equivalent) in one or more of the ways set out in subsection (2) of that section, at his option.

(2) The conditions are that—

(a) he ceased to be a member as described in paragraph (1)—

(i) where the transfer value is to be paid to an occupational pension scheme, before his NRD, or

(ii) otherwise, at least one year before his NRD;

(b) he is a person who—

(i) has a statutory pension entitlement,

(ii) after ceasing to be a member as described in paragraph (1), has taken up non-local government employment in which he participates in an occupational pension scheme, or

(iii) after so ceasing, entered into a contract for a personal pension scheme or a self-employed pension arrangement or an appropriate policy;

(c) he has duly made an application in writing to his fund authority for a transfer value to be paid and has not subsequently withdrawn it; and

(d) if he 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.

(3) For the purposes of paragraph (2)(c) an application is only duly made if—

(a) in the case of a request for the transfer value to be paid to an occupational pension scheme, it is made before the applicant’s NRD;

(b) in any other case, it is made—

(i) at least one year before the applicant’s NRD, or

(ii) before the expiry of the period of six months beginning with the date on which he ceased to be a member,

whichever is the later; and

(c) in the case of a person within paragraph (2)(b)(ii) or (iii),it is made within 12 months after the applicant took up the non-local government employment or, as the case may be, entered the contract (or such longer period as the local government employer may in any particular case allow).

(4) A person who has made an application under paragraph (2)(c) may withdraw it by giving notice in writing to his fund authority, but such a notice is of no effect if, before receiving it, the fund authority have entered into an agreement with a third party to use the whole or part of that person’s transfer value in one or more of the ways specified in section 95(2) of the Pension Schemes Act 1993.

(5) A person who withdraws an application may make another.

(6) Where a person is entitled to separate preserved benefits by virtue of regulation D12(1)(c)—

(a) he may make an application under paragraph (2)(c) in respect of all or any of those separate entitlements, and

(b) where his application does not relate to all of them, he may make a further application in respect of all or any of the remainder.

Time for payment of transfer value under regulation K2

K3

(1) Where an application is duly made to a fund authority under regulation K2(2)(c) in respect of any person, they shall pay a transfer value not later than—

(a) twelve months after the date on which they receive the application, or

(b) if—

(i) his NRD is earlier,

(ii) he ceased to be a member as described in regulation K2(1) at least one year before his NRD, and

(iii) he made his application under regulation K2(2)(c) before the expiry of the period of six months beginning with the date on which he ceased to be a member,

his NRD.

(2) Where—

(a) proceedings before a court have been commenced against a person at any time before the expiry of the period of twelve months beginning with the date on which he ceased to be a member,

(b) those proceedings (including any proceedings on appeal) have not been concluded at least three months before the date by which the fund authority are required to pay the transfer value under paragraph (1), and

(c) it appears to the fund authority at that date that the proceedings may lead to all or any part of the benefits payable under these regulations to or in respect of that person being forfeited under regulation H4,

then the fund authority need not pay a transfer value in relation to that person until the expiry of the period of three months beginning with the date on which those proceedings are concluded.

Cases where right to transfer value excluded

K4

(1) 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 under those Acts, the former regulations, any local Act scheme, the 1974 regulation, the 1986 regulations or these regulations in respect of his local government employment,

(b) who ceased to be employed in local government employment on or after 6th April 1978, having attained state pensionable age, and whose accrued rights for the purposes of regulation K5 relate wholly or partly to service before he attained that age;

(c) 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

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

(2) Subject to paragraph (3), in relation to a person who has received a return of contributions in respect of local government employment in which he has ceased to be employed, a transfer value may only be paid in relation to any period in respect of which he is entitled to preserved benefits.

(3) Where a person ceased to be employed on or after 1st April 1974, but before 1st January 1980, paragraph (2) only applies if when he ceased to be so employed he had—

(a) an aggregate of at least five years' service which has to be taken into account as reckonable service and qualifying service under the 1974 regulations, or

(b) if he was subject to local Act scheme, an aggregate of at least five years' service which was to be taken into account under the Scheme for the purposes of determining whether he was entitled to benefit.

Amount of transfer value under regulation K2

K5

(1) The amount of any transfer value payable under regulation K2 shall be calculated in accordance with the following provisions.

(2) Subject to the provisions of this Part, a transfer value to be paid in accordance with the provisions of regulation K2 in respect of a person shall be an amount equal to the capitalised value—

(a) of the rights which have accrued in respect of him under these regulations at the material date, and

(b) of any associated rights under the Pensions (Increase) Act 1971[^f00033] and the Pensions (Increase) Act 1974[^f00034],

less a sum in respect of any state scheme premium which is payable or has been paid and not recovered in respect of a period of service taken into account in the valuation of those rights.

(3) Subject to regulation K9, where the transfer value is, without reasonable cause or excuse, not paid before the expiry of the period of six months beginning with the material date, the transfer value mentioned in paragraph (2) shall be increased by—

(a) interest, calculated on a daily basis over the period from the material date to the date on which the transfer value is paid at the rate set out in regulation 4(4)(a) of the Occupational Pension Schemes (Transfer Values) Regulations 1985[^f00035], or

(b) the amount by which the transfer value falls short of what it would have been if the material date had been the date on which the transfer value was paid;

whichever is the greater.

(4) The reference in paragraph (2)(a) to rights which have accrued at the material date is a reference—

(a) in the case of such a person as is described in regulation K2(6), to those rights in respect of which his application under regulation K2(2)(c) was made; or

(b) if the person does not have a statutory pension entitlement by virtue of satisfying paragraph (a) of regulation D3, to the rights which would have accrued under regulation D11, if he had fulfilled one of the requirements mentioned in paragraph (1)(b) of that regulation;

and for the purpose of determining the accrued rights in respect of a widow’s or widower’s pension of a person who was unmarried on ceasing to be a member—

(i) in the case of a man, if any part of his membership can be counted by virtue of regulation K14(1)(a) of these Regulations or regulation N8(1)(a) of the 1974 Regulations; and

(ii) in the case of a woman, if any part of her membership is treated as membership after 5th April 1988 by virtue of regulation K14(1)(a) and (2)(b) of these Regulations, all the person’s membership shall be taken into account.

(5) In paragraph (2) “capitalised value” means the capitalised value at the material date as determined by the fund authority, in such manner as may be approved by the Government Actuary or by an actuary authorised by him to act on his behalf for that purpose, having regard to investment conditions and the contingencies on which benefits are, or are to be, payable under these regulations.

(6) In this regulation “the material date” means—

(a) the date on which the person ceased to be employed in local government employment or to be a member as described in regulation K2(1), or

(b) the date on which his application for payment of a transfer value is received by his fund authority,

whichever is later.

Special provision as respects pre-6th April 1988 service

K6

(1) Subject to regulation K9, where—

(a) a transfer value is payable to the trustees or managers of an approved non-local government scheme,

(b) the service to which it relates includes relevant former service, and

(c) the amount of the transfer value payable in respect of the relevant former service would be greater if it were calculated in accordance with the 1986 regulations as they had effect immediately before 6th April 1988,

then the amount of the transfer value attributable to the relevant former service shall be calculated on the basis mentioned in paragraph (c).

(2) In paragraph (1) “relevant former service” means service which the person was entitled to count as reckonable service before 6th April 1988.

Reductions of the transfer value: unsecured GMPs, pre-1988 service and forfeiture

K7

(1) Where—

(a) a person requests a transfer value to be paid—

(i) to an occupational pension scheme which is not contracted-out,

(ii) to a personal pension scheme which is not an appropriate personal pension scheme,

(iii) to a self-employed pension arrangement, or

(iv) in the case of a person who is entitled to benefits under regulation D9(1), to an occupational pension scheme which is contracted-out;

(b) the trustees or managers of the scheme or arrangement are able and willing to have transferred to it only the liability for a member’s accrued rights other than his and his surviving spouse’s rights to guaranteed minimum pensions; and

(c) he does not require the portion of his transfer value that represents his guaranteed minimum pension to be used in one of the ways specified in section 95(2)(b) and (c) of the Pension Schemes Act 1993[^f00036],

then his transfer value shall be reduced by the amount of a state scheme premium sufficient to meet the liability in respect of those guaranteed minimum pensions.

(2) Where—

(a) a person has ceased to be a member by virtue of a notification under regulation B12 (leaving the Scheme), and

(b) his total period of membership before 6th April 1988 amounts to at least two years,

that person shall be entitled to a transfer value under regulation K2(1) in respect only of that part of his accrued rights which is attributable to his membership after 5th April 1988.

(3) Where—

(a) a transfer value limited in accordance with paragraph (2) has been paid in respect of a person, and

(b) that person has subsequently ceased to be employed in local government employment—

(i) before his NRD, or

(ii) where regulation K2(3)(b) applies, at least one year before his NRD,

a right to a transfer value in respect of any part of his accrued rights to which, but for the operation of paragraph (2), he would have been entitled on so ceasing, shall accrue to him on the date of cessation and shall be valued accordingly.

(4) In relation to any person to whom paragraph (3) applies—

(a) regulation K2(3)(b)(ii) shall have effect as if there were substituted for the words “a member” the words “employed in local government employment”; and

(b) the definition of “material date” in regulation K5(6) shall have effect as if the words “or to be a member, as described in regulation K2(1)” were omitted.

(5) For the purposes of paragraphs (2) to (4), where a person ceases to be employed in local government employment but enters again into local government employment, then if—

(a) the interval between those two employments does not exceed one month; or

(b) the second of the employments results from the exercise of a right to return to work under section 39 or 41 of the Employment Protection (Consolidation) Act 1978[^f00037] (right to return to work following pregnancy or confinement),

they shall be treated as a single employment unless the employee elected under regulation D12(1)(c).

(6) Where—

(a) under regulation H4, any corresponding provision of earlier legislation or a local Act scheme, the employing authority direct that all or any of the benefits payable under these regulations in respect of a person shall be forfeited, and

(b) the direction is given before the last date on which the fund authority is required to pay a transfer value in respect of those benefits under these regulations and no such payment has been made,

any transfer value payable in respect of that person shall be reduced in proportion to the reduction in the total value of the benefits or, as the case may be, shall be withheld.

Minimum transfer values

K8

(1) Subject to regulation K9, a transfer value paid by a fund authority in respect of a person shall be at least equal to the aggregate of the contributions, transfer values and sums mentioned in paragraph (2), less any state scheme premium paid or payable.

(2) The contributions, transfer values and sums referred to in paragraph (1) are—

(a) any contribution made by that person under Part C (other than contributions under regulation C24),

(b) any transfer values paid to the fund authority under this Part in respect of that person, and

(c) any sums paid under this Part by way of interfund adjustments in respect of that person to an authority which was his previous fund authority (within the meaning of regulation K20),

in so far as those contributions, transfer values or sums relate to the accrued rights in respect of which the transfer value is paid.

(3) A transfer value paid under this Part shall be at least equal in amount to the cash equivalent, if any, to which a person would otherwise be entitled under Chapter IV of Part IV of the Pension Schemes Act 1993[^f00038] (including any state scheme premium which is paid or payable).

Modifications where transfer is to club scheme

K9

(1) Regulations K5(3), K6, K8(1) does not apply where the transfer value is to be paid to the trustees or managers of a club scheme.

(2) In this Part “club scheme” means an occupational pension scheme which—

(a) provides benefits calculated by reference to the remuneration of the participant;

(b) (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 Income and Corporation Taxes Act 1988[^f00039];

(c) 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

(d) complies with reciprocal arrangements for the payment and receipt of transfer values with the statutory schemes and schemes made under section 7 of the Superannuation Act 1972[^f00040].

General provisions about payment of transfer values

K10

(1) The transfer value under regulation K2 shall be paid to the scheme managers by the fund authority out of their pension fund.

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

(3) A notice provided under paragraph (2) shall include a statement of the kind required by regulation J4(2)(c).

Termination of right to payment out of fund authority’s pension fund

K11

(1) Where a transfer value is to be or has been paid under regulation K2, no other payment or transfer of assets shall be made out of the pension fund on account of the service to which the transfer value relates, except as provided in regulation K12.

(2) Paragraph (1) has effect notwithstanding anything to the contrary in the Acts of 1937 to 1953 and the regulations made under those Acts, the former regulations, any local Act scheme, the 1974 regulations, the 1986 regulations (except regulations J3 and J6) or any other provision of these regulations.

Revival of rights for certain Community scheme transferees

K12

(1) Schedule K1 shall have effect for the purpose of making provision as respects persons—

(a) in respect of whom transfer values are paid under regulation K2 on their transfer to the Communities' scheme, and

(b) who subsequently leave the scheme without rights to either an immediate or prospective pension.

(2) In this regulation and that Schedule “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.

Transfers in

Inward transfers of accrued rights from non-local government schemes etc.

K13

(1) Where a person who becomes a member has accrued rights to benefit under—

(a) an occupational pension 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 Income and Corporation Taxes Act 1988, or

(d) a self-employed pension arrangement,

he may within 12 months of becoming a member (or such longer period as the local government employer may allow) give written notice to his fund authority that he wishes them to accept a transfer value in respect of some or all of those accrued rights from the relevant transferor.

(2) In paragraph (1) the reference to accrued rights to benefit—

(a) includes rights to preserve benefits and rights appropriately under section 19 of the Pension Schemes Act 1993[^f00041], but

(b) excludes rights to benefits arising out of—

(i) an additional voluntary contributions provision or an additional voluntary contributions scheme (except where the payments securing such rights began before 8th April 1987), or

(ii) service as respects which there is an obligation to pay a sum by way of interfund adjustment under regulation K20).

(3) In paragraph (1) “the relevant transferor”, in relation to a member, means—

(a) the trustees or managers of the scheme, contract or arrangement under which his accrued rights arise, or

(b) in the case of such rights as mentioned in paragraph (2)(a), 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.

(4) Subject to paragraphs (5) and (6), where notice is given in accordance with paragraph (1), the transfer value shall be accepted by the fund authority and be credited to their pension fund, together with the amount of any limited revaluation premium under section 55(4) of the Pension Schemes Act 1993 repaid to the fund authority by the Secretary of State.

(5) Paragraph (4) only applies if—

(a) the transfer value is offered on conditions which are consistent with the provisions of these regulations;

(b) in the case of a person who—

(i) became employed in his local government employment before 1st January 1980, or

(ii) ceased to be employed in his non-local government employment before 31st March 1972,

his local government employer has consented to the transfer value being accepted; and

(c) 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.

(6) Subject to regulation K16, the fund authority only need to accept a transfer value if it exceeds the annual amount of the guaranteed minimum pension to which the person would have become entitled under these regulations at the request date as a result of the transfer value being accepted, multiplied by the appropriate factor.

(7) In paragraph (6)—

“the request date” means the date when the fund authority are requested to accept the transfer value; and

“the appropriate factor”, in relation to a person, means— in the case of a person under 30 on the request date, 8; in the case of a person at least 30 but under 40 on that date, 9; in the case of a person at least 40 but under 50 on that date, 10; and otherwise, 12.

Right to count service

K14

(1) Where a transfer value has been accepted under regulation K13 in relation to a person, he shall be entitled—

(a) subject to regulation K17(4), and (6), to count a period calculated as mentioned in regulation K15 or, as the case may be, regulation K16 as period of membership for all purposes of these regulations (except that of determining whether there is any entitlement to benefit (other than any benefit under regulation D19)), and

(b) to count as a period to which Part II of Schedule B6 applies all the service in respect of which he has accrued rights to benefits under his previous occupational pension scheme or appropriate policy, as certified by the trustees of that scheme or issuers of that policy, whether the transfer value relates to some or all of those accrued rights.

(2) For the purposes of making any collocation under these regulations a period of membership which may be counted under paragraph (1)(a) shall be treated—

(a) where the person is a man, as a period after 5th April 1978, and

(b) where the person is a woman, as a period after 5th April 1988.

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

(4) The fund authority shall provide the person with a written notice stating—

(a) the periods of membership which he is entitled to count under paragraph (1)(a) and (b), and

(b) 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 K18 or K19.

(5) A notice under paragraph (4) shall contain a statement of the kind required by regulation J4(2)(c).

Calculation of period of membership allowed under regulation K14(1)(a): non club schemes

K15

(1) Subject to regulation K16—

(a) the period mentioned in regulation K14(1)(a) shall be calculated in a manner consistent with the methods adopted and assumptions made by the fund authority in determining the amount of transfer values to be paid to occupational pension schemes (other than club schemes) under regulations K5, K7, K8 and K21; and

(b) due allowance shall be given for the expected increase in the pensionable remuneration of a local government employee between—

(i) the appropriate date, and

(ii) the NRD of the person in respect of whom the transfer value was paid.

(2) In paragraph (1)(b)(i) “the appropriate date” means—

(a) the date on which the person in respect of whom the transfer value is paid became a member, or

(b) if more than twelve months later, the date on which the transfer value is received.

Special provision where transfer is from a club scheme

K16

(1) Regulation K13(6) does not apply where the transfer value is offered by the trustees or managers of a club scheme.

(2) Where the transfer value—

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

(b) represents all the rights relating to the person in that scheme,

(c) has been calculated in a manner consistent with the methods adopted and assumptions made by the fund authority in determining the amount of transfer values to be paid to club schemes, and

(d) is paid following an application made to the fund authority before the expiry of the period of twelve months beginning with the date on which the person becomes a member,

regulation K15 does not apply and the period mentioned in regulation K14(1)(a) shall be equal to the period which, if used to calculate a transfer value to be paid to a club scheme, would produce an amount equal to the transfer value received by the fund authority.

(3) In making the calculation referred to in paragraph (2), regard shall be had—

(a) to the person’s age,

(b) to the rate of remuneration used by the trustees or managers of the scheme making the payment in determining its amount,

(d) to his marital status, and

(e) to any other factor notified to the fund authority by the trustees or managers of the scheme making the payment as having been taken into account in determining its amount.

Increase in return of contributions

K17

(1) Where—

(a) a person to whom regulation K14 applies ceases to be employed in employment in which he is a member in circumstances in which a return of contributions is payable to him under regulation C21(1),

(b) if a transfer value had not been payable, he would have been entitled on the termination of his non-local government employment to a return of contribution under his non-local government scheme in respect of service to which the transfer value accepted under regulation K13 relates, and

the sum due to him under regulation C21(1) 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 due to be so returned, 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 with the date on which he ceased to be employed in the employment in which he was a member.

(3) Nothing in paragraphs (1) and (2) confers 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) a sum due under regulation C21(1) 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

(b) that is the only service to which the transfer value relates,

his right to count a period of membership under regulation K14(1)(a) on account of the transfer value shall be extinguished when the increased payment is made.

(5) Where—

(a) a sum due under regulation C21(1) is increased under paragraph (1), and

(b) paragraph (4) does not apply,

then, when the increased payment is made, the period of membership the person is entitled to count under regulation K14(1)(a) on account of the transfer value is reduced to the appropriate fraction of the period of membership which he was entitled so to count before the payment was made.

(6) In paragraph (5) “the appropriate fraction” means the fraction of which—

(a) the numerator is the period he is entitled to count under regulation K14(1)(b) (“the K14(1)(b) period”) reduced by the period of service on account of which the increase under paragraph (1) is made, and

(b) the denominator is the K14(1)(b) period.

(7) For the purpose of calculating the reduction under paragraph (5)—

(a) the period of service mentioned in paragraph (6)(a) shall count at its actual length; and

(b) all periods are to be expressed in years and fractions of a year.

National insurance modification for flat-rate retirement pension

K18

(1) Where—

(a) a person to whom regulation K14 applies became employed in his local government employment before 1st April 1980;

(b) on becoming so employed 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 a period of membership which includes the period which he is entitled to count under regulation K14(1)(a),

then his retirement pension shall be reduced in accordance with paragraph (2).

(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 K14(1)(a) as if—

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

(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[^f00042].

National insurance modification for graduated retirement pension

K19

(1) Where—

(a) a person to whom regulation K14 applies became employed in his local government employment before 1st April 1980,

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

(c) in calculating the amount of the transfer value accepted under regulation K13 a deduction was made in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965[^f00043], and

(d) his retirement pension is calculated by reference to a period of membership which includes the period which he is entitled to count under regulation K14(1)(a),

then his pension shall be reduced by the amount specified in paragraph (2).

(2) The amount mentioned in paragraph (1) is the reduction in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965 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 he had—

(a) reached state pensionable age, and

(b) 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—

(a) shall take effect on—

(i) the date on which the person’s pension becomes payable, or

(ii) if later, the date on which he reaches state pensionable age, and

(b) shall be additional to any reduction required by regulation K18.

(4) The reduction under this regulation shall be treated for the purposes of regulations K5, K7, K8 and K21 as a reduction made in connection with graduated retirement benefit under section 36 of the National Insurance Act 1965.

Interfund adjustments on changes of local government employment

Change of local government employment and fund authority: “interfund adjustments”

K20

(1) Subject to regulation K22, this regulation applies where—

(a) a person who has ceased to be employed in a local government employment (“the previous employment”) subsequently becomes employed in another local government employment (“the new employment”),

(b) the body maintaining the pension fund to which he became a contributor in the new employment (“the new fund authority”) is different from the body maintaining the pension fund to which he was a contributor immediately before he ceased to be employed in his previous employment (“the previous fund authority”),

(c) he is a member of the Scheme in his new employment and is entitled to count in relation to that employment any period of membership which he was entitled to count in his previous employment.

(2) Where this regulation applies the previous fund authority shall, subject to the following provisions of these regulations, pay out of their pension fund to the new fund authority for the credit of their pension fund a sum (“the interfund adjustment”) of an amount calculated in accordance with regulation K21.

(3) Where the pension fund referred to in paragraph (1)(b) has been closed, references in this regulation and in regulations K21 and K22 to the body maintaining that fund shall be taken—

(a) in the case of the previous fund authority, as references to the body which would be liable to pay the person’s pension in respect of the previous employment if it had been payable when the employment ceased; and

(b) in the case of the new fund authority—

(i) if when the fund was closed the person was not employed in local government employment, as references to the body which would be liable to pay his pension in respect of the new employment if he had been payable when the employment ceased; and

(ii) otherwise, as references to the body maintaining the pension fund to which he became a contributor when the fund was closed.

Calculation of interfund adjustment payable under regulation K20

K21

(1) The interfund adjustment payable under regulation K20(2) in respect of a person—

(a) if the total period of membership he is entitled to count in his new local government employment which he was also entitled to count in his previous local government employment exceeds 182 days, is to be calculated in accordance with paragraph (2); and

(b) otherwise—

(i) if the person became employed in his new local government employment on or after 1st October 1981, is zero; and

(ii) in any other case, is twice the amount of the employer’s primary contributions in relation to the period of membership.

(2) The amount of the interfund adjustment referred to in paragraph (1)(a) is the product of—

(a) the appropriate amount for a person of his age in years when he ceased to be employed in his previous local government employment,

(b) the annual rate of his remuneration in that employment at that time, and

(c) the length of the total period of membership in complete years (ignoring any residual period of 182 days or less and taking any residual period which exceeds 182 days as a complete year),

less the amount of any additional contributory payments remaining outstanding at that time.

(3) The appropriate amount mentioned in paragraph (2)(a) is—

(a) if his age was under 30, 11 pence;

(b) if his age was at least 30 but under 40, 12 pence;

(d) otherwise, 14 pence.

(4) In ascertaining for the purposes of this regulation the length of the period of membership which a person is or was entitled to count, the period of membership is to be counted at the length at which it would be counted in calculating the amount of a retirement pension under regulation D5 except that—

(a) any period which was reckonable as reckonable service under section 17 of the Act of 1937 (which related to teachers) is to be ignored,

(b) it is to be assumed that he had completed the payment of any additional contributory payments, and

(c) if some additional contributions under regulation D10 of the 1974 regulations (or any earlier corresponding provision), regulation C6 of the 1986 regulations or regulation C9 of these regulations, have been paid, but not all those for which he was originally liable, the appropriate proportion (within the meaning of regulation C19(8)) may be counted.

(5) Subject to paragraph (6), in ascertaining for the purposes of this regulation the annual rate of a person’s remuneration at the date on which he ceased to be employed in his previous local government employment (“the relevant date”)—

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

(b) the annual rate of any benefit in kind is to be its estimated annual value at the relevant date,

(d) regard is to be had to any retrospective alteration of the annual rate resulting from a pay award promulgated by a national joint council or other negotiating body on or before the relevant date,

(e) 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 relevant date,

(f) if his previous employment was part-time, the annual rate of remuneration of a single comparable whole-time employment is to be used, and

(g) if the annual rate of his remuneration exceeds £100, it is to be rounded down to the nearest £100.

(6) If—

(a) during the 13 years ending on the relevant date his remuneration was reduced,

(b) his employing authority certified under paragraph 4 of Schedule DI that the reduction was material, and

(c) his annual rate of remuneration immediately before the reduction (ascertained on similar principles to those in paragraph (5)) was greater than the annual rate of remuneration on the relevant date,

it is to be assumed for the purposes of this regulation that he was earning at the higher rate at that date.

(7) Where the person—

(a) has made a payment to his new fund authority under regulation D1(2) of the 1974 regulations, or

(b) has made them a payment which by virtue of regulation K28(4) of or paragraph 8 of Schedule M2 to these Regulations (modification in certain cases where person returns to local government employment) has the same effect,

the interfund adjustment payable under regulation K20 is to be reduced by an amount equal to that payment.

(8) If the period beginning with the relevant date and ending on the date of payment of the interfund adjustment is or exceeds 6 months, compound interest is payable on the amount of that adjustment (after any reduction falling to be made under paragraph (7))—

(a) at the rate of 6 per cent. with yearly rests for each complete period of a year ending before 1st April 1977, and

(b) at the rate of 2.25 per cent. with three-monthly rests for each complete period of 3 months beginning after 31st March 1977.

Forfeitures

K22

(1) Regulation K20 does not apply if a direction has been made at any time under regulation H4 (forfeiture of rights) or any corresponding provision of any earlier enactment in relation to the member’s membership in his previous employment.

(2) Where—

(a) apart from paragraph (1), regulation K20 would apply, and

(b) a right to benefit under these regulations is retained,

the previous fund authority shall pay out of their pension fund an interfund adjustment to the new fund authority for the credit of their pension fund of an amount equal to the actuarial value of the remaining benefits.

(3) In this regulation “previous fund authority”, “new fund authority” and “previous employment” have the meaning given in regulation K20.

Transfers of certain members who are eligible to join approved non-local government schemes

Certain members who become subject to other pension schemes in the same employment

K23

(1) This regulation applies to a person if—

(a) he is a member by virtue of being an employee to whom an admission agreement applies or in an employment under a passenger transport executive;

(b) the body employing him in that employment (“the relevant employment”) can make other provision for his superannuation under an approved non-local government scheme;

(c) he gives written notice to that body (and to the appropriate administering authority, if different) that he wishes this regulation to apply to him and they consent to its doing so.

(2) When a person to whom this regulation applies becomes subject in the relevant employment to an approved non-local government scheme (“the new scheme”), he shall be treated for the purposes of these regulations (except regulations C21 (return of contributions) and K2 to K12) as having ceased to hold the relevant employment.

(3) Unless a person to whom this regulation applies has given notice under regulation K24(3)(b), he may, on the actual termination of the relevant employment (but not before), request the payment of a transfer value under regulation K2.

(4) If a transfer value is requested as mentioned in paragraph (3)—

(a) regulations K2 to K12 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) regulations K5, K7, K8 and K21 apply as if his local government employment had ended on the day before he became subject to the new scheme.

Requests for transfer payments: regulation K23 employees and employees of ineligible employers

K24

(1) This paragraph applies—

(a) to a person who ceases to be a member because—

(i) the undertaking in which he is employed is transferred to a body who is not a LGPS employer nor a body which has entered or is eligible to enter into an admission agreement; or

(ii) the body by whom he is employed ceases to be a LGPS employer or a body which has entered or is eligible to enter into an admission agreement,

and in respect of whom the body employing him after the transfer date can make other provision under an approved non-local government scheme; and

(b) to a person to whom regulation K23 applies; and in this regulation “the transfer date” means—

(i) in the case of a person within paragraph (a)(i), the date of transfer of the undertaking,

(ii) in the case of a person within paragraph (a)(ii), the date his employer ceases to be such an employer as there mentioned, and

(iii) in the case of a person within paragraph (b), the date on which he becomes subject to an approved non-local government scheme.

(2) A person within paragraph (1)(a) shall be treated for the purposes of these regulations as having ceased to hold his employment on the transfer date.

(3) Where—

(a) a person to whom paragraph (1) applies has not attained state pensionable age on the transfer date; and

(b) before that date or, with the consent of his employing authority, the appropriate administering authority and the scheme managers of the transferee scheme, before the expiry of the period of three months beginning with that date—

(i) he gives written notice to the appropriate administering authority (and to his employing authority, if different) that he wishes to transfer his pension rights under these regulations to the transferee scheme, and

(ii) the scheme managers of the transferee scheme, the appropriate administering authority (and his employing authority, if different) have each consented,

then, subject to paragraph (6), the appropriate administering authority shall set aside the appropriate part of the appropriate pension fund (“the transfer payment”), whether in cash or in assets or both, and pay or transfer it to the scheme managers of the transferee scheme for the benefit of the relevant beneficiaries.

(4) For the purposes of paragraph (3), the appropriate part of the appropriate pension fund is the amount determined by the actuary of the appropriate pension fund (on the basis of actuarial assumptions specified by him) to be equal to the value at the transfer date of the actual and potential liabilities of the fund which have then accrued in respect of the relevant beneficiaries, after making such adjustments as he thinks fit as respects—

(a) any period between the transfer date and the date of actual payment of the transfer value; and

(b) such other matters as he thinks fit;

and in paragraph (3) and this paragraph “relevant beneficiaries” means the member or members in respect of whom the transfer payment is made and those persons who under these regulations are or may become entitled to benefit through him or them.

(5) The employing authority shall bear the costs of determining the appropriate part of the fund and apportioning the fund or, if there is more than one employing authority involved, each shall bear such part of the costs as the actuary of the fund determines.

(6) Where a transfer payment in respect of a person is made under paragraph (3)—

(a) if the transferee scheme is contracted-out and the scheme managers undertake to accept liability for that person’s guaranteed minimum pension, no deduction shall be made for that pension from the transfer payment;

(b) otherwise, there shall be deducted from it—

(i) the amount of any transfer premium which may be paid under section 55(3) of the Pension Schemes Act 1993[^f00044], or

(ii) the amount of any contributions equivalent premium payable pursuant to section 55(2) of that Act,

and such amount shall be used either in paying such a premium or, if the appropriate administering authority think fit, in preserving the liability for the guaranteed minimum in the appropriate pension fund; and

(i) shall certify to the scheme managers of the transferee scheme the amount included in the transfer payment which represents the person’s contributions and interest on them, and

(ii) may require them to undertake to treat only those amounts as employee’s contributions in the transferee scheme.

(7) The appropriate administering authority—

(a) shall provide the person transferring his pension rights with sufficient information in writing to check that the pension rights he 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 scheme managers of the transferee scheme under regulation K2; and

(b) shall not consent under paragraph (3)(b)(ii) unless they are satisfied of that fact.

(8) Where a transfer payment is to be or has been made under this regulation, no other payment or transfer of assets shall be made out of the pension fund on account of service or employment to which the transfer payment under this regulation relates.

(9) Paragraph (8) applies notwithstanding anything in the Acts of 1937 to 1953 and the regulations made under those Acts, the former regulations, any local Act scheme or any provision of the 1974 regulations, the 1986 regulations or these regulations.

(10) In this regulation “undertaking” has the same meaning as in the Transfer of Undertakings (Protection of Employment) Regulations 1981[^f00045].

Application of regulation K24 in case of certain transfers involving admission agreements

K25

(1) Where—

(a) an admission agreement (“the first agreement”) made by a body with an appropriate administering authority ceases to have effect; and

(b) on the cessation of the first agreement another admission agreement (“the second agreement”) between that body and a different appropriate administering authority (“the second authority”) takes effect,

then regulation K24 applies (and regulations K20 to K22 do not apply) as if—

(i) a person employed by that body when the second agreement took effect were a person within paragraph (1)(a) of that regulation,

(ii) the pension fund maintained by the second authority were the transferee scheme,

(iii) the second authority were the scheme managers, and

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