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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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(b) in the case of a notice under paragraph 1(2), so that the member may pay his contributions at the varied amount or in the varied proportions, or, as the case may be, cease to pay his contributions, before the expiry of the period of three months beginning with that date.

6

(1) Where a notice under paragraph 1 specifies that all or part of the contributions are to be used to provide benefits payable in the event of death, the appropriate administering authority shall make arrangements for the provision of those benefits under a pension policy.

(2) The pension policy shall provide that the appropriate administering authority are to make payments to the insurance company with which the policy is entered into of the same amounts as the contributions to be used as mentioned in sub-paragraph (1) within one month of the day on which they are payable by the member under paragraph 4.

(3) The policy shall—

(a) be subject to the conditions mentioned in paragraphs 2 and 3 of this Schedule;

(b) allow the member to vary his election under paragraph 1(2);

(c) make provision for the arrangements mentioned in paragraphs 10 to 15 and 22 in the event of a change of employment by the member or, as the case may be, potential overpayment.

(4) Where—

(a) a person to whom regulation C8 applies was before the commencement of his relevant service (as defined in that regulation) paying contributions to be used to provide benefits payable in the event of death, and

(b) he has not elected to discontinue those contributions,

the appropriate administering authority shall continue to make the appropriate payments in respect of him during the period of his relevant service in accordance with the arrangements made under this paragraph.

7

(1) The administering authority shall invest with a relevant body any contributions which are not to be used to provide benefits payable in the event of death.

(2) Subject to sub-paragraph (3) and paragraphs 10 to 17, to the member ceasing to be employed by the employing authority to which notice was given under paragraph 1(1), the appropriate administering authority shall as soon as reasonably practicable apply the accumulated value of the contributions invested as mentioned in sub-paragraph (1) to the provision of additional pension benefits under a pension policy.

(3) If the member dies before such a policy is entered into, the accumulated value shall be payable to his personal representatives.

(4) The contributions invested in accordance with sub-paragraph (1) shall not be used to provide benefits in the form of a lump sum unless—

(a) the aggregate of the pension benefits provided under Parts D to G and the additional pension benefits provided by the pension policy mentioned in sub-paragraph (2) do not exceed the annual rate or amount referred to in regulation H5; and

(b) the pension benefits provided under those Parts are being compounded in accordance with that regulation.

8

The benefits under a pension policy entered into under paragraph 6 or 7 shall be money purchase benefits the value of which is reasonable having regard to the amount of the contributions paid.

9

The administering authority—

(a) shall consult the member before entering into a pension policy under paragraph 6 or 7; and

(b) shall give effect, so far as is practicable and subject to paragraph 8, to his wishes with respect to the benefits to be provided under it.

Changes of employment in which membership is continued

10

(1) If a member—

(a) ceases to be employed by the employing authority to which notice as given under paragraph 1(1);

(b) was making payments of additional contributions up to the date of cessation, and

(c) before the expiry of the period of one month and one day beginning with that date enters a new employment in which he is also a member;

he may elect that his election to pay contributions under regulation C24 should continue to have effect.

(2) An election under sub-paragraph (1) shall be made by notice given in writing to the member’s new employing authority before the expiry of the period of one month beginning with the date on which the new employment begins.

11

As soon as the new employing authority receive a notice of election under paragraph 10 they shall forward it to the appropriate administering authority in relation to the new employment.

12

(1) Subject to sub-paragraph (2), the member shall, with effect from the next pay day after the day on which notice was given under paragraph 10, make payments of contributions under regulation C24 in his new employment under his notice under paragraph 1(1) (as it has effect for the time being).

(2) No payment of contributions under regulation C24 shall be made with respect to the period (if any) between the two employments mentioned in paragraph 10.

13

If the member’s appropriate administering authority in the two employments mentioned in paragraph 10 is the same, that authority shall—

(a) apply any continuing contributions, which are specified to be used to provide benefits payable in the event of death, towards the pension policy mentioned in paragraph 6; and

(b) continue to invest all contributions paid by him and not specified to be so used in the manner mentioned in paragraph 7.

14

If the authorities which are the member’s appropriate administering authorities in the two employments mentioned in paragraph 10 are different—

(a) the former appropriate administering authority shall—

(i) so far as is possible, assign to the new appropriate administering authority any of their rights under such a pension policy as is mentioned in paragraph 6, and

(ii) transfer to the new appropriate administering authority a sum equal to the accumulated value of his invested additional contributions mentioned in paragraph 7(1); and

(b) the new appropriate administering authority shall apply or invest the sum received, and payments of additional contributions, in the manner mentioned in paragraph 13.

15

(1) Paragraphs 7(2) and 10 to 17 shall have effect in relation to a cessation of the new employment as if the new employment were the one in relation to which notice was given under paragraph 1(1) (and so on).

Cessation of membership or employment

16

(1) Where a person who has given notice under paragraph 1(1) of an election under regulation C24 to his employing authority—

(a) has ceased to be employed by that authority; or

(b) has ceased to be a member without ceasing to be so employed,

he may elect to have the accumulated value of the invested additional contributions mentioned in paragraph 7(2), used—

(i) in the case mentioned in paragraph (a), in one or more of the ways mentioned in sub-paragraph (2); and

(ii) in the case mentioned in paragraph (b) in one or both of the ways mentioned in paragraphs (ii) and (v) of that sub-paragraph.

(2) The ways referred to in sub-paragraph (1) are—

(a) to subscribe to an occupational pension scheme;

(b) to subscribe to a personal pension scheme;

(d) to purchase an appropriate policy from one or more insurance companies; or

(e) to subscribe to an additional voluntary contributions scheme.

17

Where a person receives a refund under regulation C21 as a consequence of ceasing—

(a) to be employed by an employing authority; or

(b) to be a member,

he must receive immediate payment of the accumulated value of the invested additional contributions mentioned in paragraph 7(2).

18

Paragraph 3 shall not preclude a member who has again become employed by a LGPS employer (and has not elected under paragraph 10) making a fresh election under regulation C24 by notice under paragraph 1 in relation to his new employment.

Separate treatment of AVCs from other contributions

19

(1) Regulations C21 and C23 (return of contributions), L4(1) and (2) (management of pension fund) and paragraphs 3 and 4 of Schedule C5 (limitations on contributions) do not apply to contributions payable under (or interest on late payments which relate to contributions under) regulation C24.

20

The making of contributions under regulations C24, and any rights or liabilities arising under a pension policy entered into under paragraphs 6 or 7, shall be left out of account in calculating the amount of a transfer value payable under Part K; and regulations H4 (forfeiture etc.) and L17 (recovery and retention) and Part J (decisions and appeals) do not apply in relation to benefits under such a policy.

Inward transfer of AVC right

21

(1) A member may, when giving a notice under regulation K13(1), also give written notice to the appropriate administering authority that he wishes them to accept a transfer value relating to some or all of the rights to benefits arising out of an additional voluntary contributions provision or an additional voluntary contributions scheme to be used to provide money purchase benefits as specified in paragraphs 6, 7 and 8.

(2) Where such a notice is given the transfer value shall be accepted and so used by the administering authority, and paragraphs 6 to 9, 19 and 20 shall apply in relation to the transfer value as they apply to contributions, except that for references to a notice under paragraph 1(1) or (2) there shall be substituted a reference to the notice under sub-paragraph (1).

Over-provision: calculation and return of surplus funds

22

(1) The administering authority shall comply—

(a) with the requirements of regulation 5 of the Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993[^f00152], and

(b) if the Scheme is the leading scheme in relation to a member, with the requirements of regulation 6 of those regulations, so far as they concern main schemes.

(2) Where any surplus funds fall to be repaid in accordance with regulation 6 of those regulations, the administering authority shall make the repayment to the member (or, if he has died, to his personal representatives)—

(a) where the over-provision relates to the benefit payable in the event of death, out of the accumulated value of the payments made by the administering authority with respect to the pension policy under paragraph 6, and

(b) where any other benefit is abated, out of the accumulated value of the additional contributions mentioned in paragraph 7(2).

(3) In this paragraph—

“leading scheme” and “main schemes” have the meanings given in regulation 2 of those regulations; and

“surplus funds” has the meaning given in regulation 6 of those regulations.

Supplemental

23

In this Schedule—

“insurance company” means— a body authorised under section 3 or 4 of the Insurance Companies Act 1982[^f00153] to carry on long term business, an EC Company which is lawfully carrying on long term business, or providing long term insurance, in the United Kingdom, or a friendly society within the meaning of the Friendly Societies Act 1992[^f00154] (including any society which is to be treated as a registered friendly society by virtue of section 96(2) of that Act), and expressions used in paragraph (a), or (b) have the meanings given in the Insurance Companies Act 1982;

“money purchase benefits” has the same meaning as in the Pension Schemes Act 1993[^f00155];

“pension policy” means a contract entered into on behalf of the member by the appropriate administering authority with an insurance company for the payment by the company of pension benefits to the intended recipients of those benefits which are in addition to those payable under Parts D to G; and

“relevant body” means— a person for the time being operating a scheme which is an approved scheme (within the meaning of section 612 of the Income and Corporation Taxes Act 1988[^f00156]) and provides benefits in relation to persons who have paid contributions to it which are in addition to those provided in relation to those persons under an occupational pension scheme, or a building society within the meaning of the Building Societies Act 1986[^f00157].

SCHEDULE C5 — LIMITATIONS ON CONTRIBUTIONS AND BENEFITS

PART I — GENERAL

“Class A members”, “Class B members” and “Class C members”

1

(1) In this Schedule, unless the context otherwise requires—

“member” includes a former member;

“Class A member” means a member who— became a member on or after 1st June 1989 and is not to be treated as a Class B member of Class C member by virtue of sub-paragraph (2); or was a Class B member or a Class C member immediately before that date and is deemed to have become a Class A member by virtue of making an election under sub-paragraph (3);

“Class B member” means a member who— became a member on or after 17th March 1987 and before 1st June 1989; is not to be treated as a Class C member by virtue of sub-paragraph (2); and is not deemed to have become a Class A member by virtue of making an election under sub-paragraph (3);

“Class C member” means a member who— became a member before 17th March 1987 or is to be treated as a Class C member by virtue of sub-paragraph (2); and is not deemed to have become a Class A member by virtue of duly making an election under sub-paragraph (3).

(2) A person may be treated for the purposes of this Schedule as being a Class B member or a Class C member, notwithstanding that he did not become a member of the Scheme before 1st June 1989 or, as the case may be, 17th March 1987, if on application to them by the administering authority the Commissioners of Inland Revenue agree in writing that he may be so treated by virtue of previous membership of a pension scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988[^f00158].

(3) If a Class B member or a Class C member duly elects by notice in writing to the administering authority before the relevant date that he wishes to be treated as a Class A member for the purposes of this Schedule, he shall be deemed to have become a Class A member on 1st June 1989.

(4) For the purposes of sub-paragraph (3) “the relevant date”, in relation to any member, means the date on which he ceases to be a member for any reason (including death).

(5) For the purposes of this paragraph, a person shall only be treated as being a Class B member or a Class C member at any time by virtue of having become a member before 1st June 1989 or, as the case may be, 17th March 1987 if—

(a) he has continued to be a member throughout a period beginning before that date and ending with that time; or

(b) the conditions mentioned in sub-paragraph (6) are satisfied in relation to the part of that period when he was not a member.

(6) The conditions mentioned in sub-paragraph (5)(b) are—

(a) that his membership ceased on his secondment or posting to another employer, at the time of the secondment or posting he had a definite expectation that he would become a member again when it ended, and he again became a member at the end of his secondment or posting;

(b) his membership ceased by reason of his unpaid absence and he began paying contributions again under regulation C4 within one month of returning to work;

(c) in the case of a female member, her membership ceased wholly or partly because of pregnancy or confinement and she began paying contributions again under that regulation within one month of returning to work in accordance with section 39 or 41 of the Employment Protection (Consolidation) Act 1978[^f00159] (which confers the right to return to work following pregnancy or confinement); or

(d) his membership ceased otherwise than as mentioned in paragraph (a), (b) or (c) and he began paying contributions again under that regulation within one month of returning to work.

Remuneration of Class A members: “permitted maximum”

2

(1) Subject to paragraph 6, in determining the remuneration of a Class A member for the purposes of these regulations, any payments in excess of the permitted maximum shall be disregarded.

(2) For the purposes of this Schedule “permitted maximum” shall be construed in accordance with section 590C(2) of the Income and Corporation Taxes Act 1988[^f00160].

PART II — LIMITATIONS ON CONTRIBUTIONS

General 15 per cent. limitation

3

(1) Subject to paragraph 4, the total contributions to which this paragraph applies, which are paid by a member in any tax year to the appropriate pension fund in respect of all employments in relation to which he is a member, shall not exceed 15 per cent. of his remuneration for that year.

(2) This paragraph applies to all contributions paid by the member—

(a) under Part C of the 1986 regulations (other than under regulation C24), or

(b) under Part C of the 1986 regulations, except regulation C9A (in so far as that Part is continued in effect by virtue of Schedule C6 or Schedule M4), including instalments under regulation C7A(14).

Excess contributions payable by lump sum: Class B and C members

4

(1) If the aggregate of the following amounts payable by a Class B member or a Class C member, namely—

(a) any amount by way of additional contributions in pursuance of—

(i) a notice given under regulation D10 or D10A of the 1974 regulations, or

(ii) an election made under regulation C9(1) or C13,

(b) the amount of an instalment payable in pursuance of an election under regulation C8 of the 1986 regulations,

(d) the amount payable by him by way of contributions under regulation C4,

exceeds 15 per cent. of his remuneration, he shall satisfy his liability in respect of the excess by payment of a lump sum of an amount calculated by the Government Actuary in accordance with the relevant Table in Part II of Schedule C3 to represent the capital value of the excess.

(2) The contributions to which paragraph 3 applies do not include any payment made by a Class B member or a Class C member under regulation C19(5).

Additional voluntary contributions

5

The amount of the contributions payable under regulation C24 in any tax year, when aggregated with the amount of any other contributions payable under these regulations or to an additional voluntary contributions scheme, within the meaning of that regulation, (whether or not payable under these regulations), shall not exceed the amount allowed to be deducted under subsection (7) of section 592 of the Income and Corporation Taxes Act 1988 as specified in or under subsection (8) or, as the case may be, subsection (8A) of that section.

PART III — LIMITATIONS ON BENEFITS

Restrictions on “pensionable remuneration”: Class A members with transferred-in membership

6

Where regulation 5(2) of the Retirement Benefits Schemes (Continuation of Rights of Members of Approved Schemes) Regulations 1990[^f00161] applies in relation to a member, for the purpose of calculating any benefit in respect of him under these regulations, paragraph 2(1) does not apply to so much of the benefit as is calculated by reference to membership which he is entitled to count by virtue of regulation K14.

Pensionable remuneration: retirement grants for Class B members

7

For the purpose of calculating the retirement grant of a Class B member, his pensionable remuneration shall not exceed £100,000 (or such other sum as may for the time being be specified by the Treasury for the purposes of section 590(3) of the Income and Corporation Taxes Act 1988 as that section continues to have effect as respects Class B members by virtue of paragraph 18(2) of Schedule 6 to the Finance Act 1989[^f00162]).

Restrictions on membership period used for calculating amounts of benefits

8

(1) For the purpose of calculating the amount of any benefit under Part D—

(a) no account shall be taken of so much of the member’s total period of membership as—

(i) in the case of a Class A member, exceeds 40 years; and

(ii) in the case of a Class B member or a Class C member, is membership before he attains the age of 60 years and exceeds 40 years, and

(b) where an amount is recovered or retained under regulation L17 (recovery or retention where former member has misconduct obligation), membership shall be left out of account to the extent necessary to reduce the actuarial value referred to in regulation L17(2) by that amount.

(2) For the purposes of sub-paragraph (1)(a), a period which a person is entitled to count as a period of membership by virtue of regulation D7(2) (permanent ill-health) or F6(1)(a) or (b) of the 1986 regulations (war service) shall be treated as membership before attaining the age of 60 years.

(3) Where a retirement grant falls to be increased under paragraph 1(1) of Schedule D2 (preservation of right under 1974 regulations to increases in standard retirement grants), any membership to be left out of account by virtue of paragraph (1)(a) shall be taken from the end of the person’s period of membership.

(4) Where a retirement grant falls to be reduced under paragraph 2, 3(1) or 4(1) of Schedule D2 (reduction in standard retirement grant on account of contingent spouse’s pension), any period of membership to be left out of account by virtue of paragraph (1)(a) shall be taken from the beginning of the person’s period of membership.

9

Where the aggregate length of—

(a) the total period of membership in relation to the relevant employment (excluding any membership which is to be left out of account by virtue of paragraph 8(1)(a));

(b) any earlier period which was taken into account in the calculation of a retirement pension, an annual pension under the former regulations, or a superannuation allowance under Part I of the Act of 1937, or in respect of which any pension was granted under a local Act scheme; and

(c) any period by reference to which an additional benefit has been granted under regulation E13 of the 1986 regulations (discretionary additional benefits for certain female nursing staff) or under regulation 13 of the Benefits regulations,

exceeds—

(i) in the case of a Class A member, 40 years, or

(ii) in the case of a Class B or Class C member, 45 years,

then, for the purpose of calculating any benefit the period mentioned in paragraph (a) is reduced by a period equal to the excess.

Death grants

10

(1) Subject to sub-paragraph (2), for the purpose of calculating the amount of a death grant under Part E no account shall be taken of so much of the member’s total period of membership as—

(a) in the case of a Class A member, exceeds 40 years; and

(b) in the case of a Class B member or a Class C member, is membership before he attains the age of 60 years and exceeds 40 years.

(2) Where a death grant is reduced under regulation E5, any period of membership to be left out of account under sub-paragraph (1) is to be taken from the beginning of the period of membership.

SCHEDULE C6 — PROVISIONS CONCERNING OUTSTANDING PAYMENTS DUE UNDER PREVIOUS REGULATIONS

Continuation of certain payments

1

(1) Without prejudice to the provisions of the Interpretation Act 1978[^f00163] and Schedule M4 to these regulations, where immediately before the commencement date any payments remained to be made (or were deemed to be due) under a provision of the 1986 regulations which is re-enacted in these regulations, they shall be deemed to be payments due under the corresponding provision of these regulations.

(2) Without prejudice to the generality of sub-paragraph (1), any payments remaining to be made under a provision of the 1986 regulations specified in column (1) of the Table below (including any payments treated as being made under any such provision by virtue of regulation C9(1) of those regulations), shall be deemed to be payments due under the provision of these regulations specified in column (2).

1986 regulations	These regulations
Reg C3	Regulation C5
Reg C3A	Regulation C6
Reg C4	Regulation C7
Reg C6	Regulation C9
Reg C8 (additional contributions)	Regulation C13
Reg C8A	Regulation C14
Reg C9A	Regulation C24

(3) Subject to any contrary provision made by these regulations and, in particular, the following provisions of this Schedule, where—

(a) immediately before 1st March 1986 any payments remained to be made under a provision of the 1974 regulations specified in paragraph (4); or

(b) immediately before the commencement date any payments remained to be made under a provision of the 1986 regulations specified in paragraph (5) (including any payments treated as being made under any such provision by virtue of regulation C9(1) of those regulations),

then, notwithstanding the revocations made by these regulations—

(i) those payments remain payable;

(ii) in so far as any provisions which immediately before the commencement date have effect in relation to those payments are not re-enacted in these regulations, they shall be deemed to have continued in effect in relation to those payments (with such modifications as may be appropriate); and

(iii) where any such provisions are so re-enacted, the corresponding provision of these regulations shall continue to have effect in relation to them.

(4) The payments mentioned in paragraph (3)(a) are payments under the following provisions of the 1974 regulations—

(a) regulation D6 (non-contributing service);

(b) regulation D7 (previous employment treated as non-contributing service);

(d) regulation D10 (added years); and

(e) regulation D11 (payments under former regulations for added years).

(5) The payments mentioned in paragraph (3)(b) are payments under the following provisions of the 1986 regulations—

(a) regulation C6A (payments in respect of previous part-time service);

(b) regulation C7 (additional payments by certain pensionable employees in respect of previous service);

(d) regulation C8 (payments to avoid reduction of retiring allowance or death grant, where election to make payment by lump sum or instalments).

(6) The following provisions of this Schedule are without prejudice to the generality of this paragraph.

Counting of extra membership periods on completion of payments begun under earlier provisions

2

Without prejudice to paragraph 7 of Schedule M4—

(a) where paragraph 1(1) applies, on the making or, as the case may be, the completion or discontinuance of any payments deemed to be due under regulation C9, a member is entitled to count additional membership in accordance with regulation C9(1);

(b) on the making or as the case may be the completion or discontinuance of any such payments as are mentioned in paragraph 1(4) or paragraph 1(5) (“the relevant event”) a member is entitled to count additional membership to the same extent as if the relevant event had occurred—

(i) in the case of the payments mentioned in paragraph 1(4), before 1st March 1986; and

(ii) in the case of the payments mentioned in paragraph 1(5), before the commencement date.

Part-timers buying additional periods

3

(1) Notwithstanding any other provision in these regulations, where immediately before the commencement date paragraph 4 of Schedule 4 to the 1986 regulations (amount payable by a part-time employee purchasing additional periods of reckonable service to be calculated by reference to remuneration in a single comparable whole-time employment) applied as respects the amount to be paid by an employee, then, subject to regulation C12(5)—

(a) the period which he is entitled to count as a period of membership, and

(b) the payments to be made by him,

shall continue to be calculated in the same manner as was applicable immediately before the commencement date.

(2) Where—

(a) immediately before the commencement date a pensionable employee in whole-time employment was making payments under regulation C6 of the 1986 regulations in order to reckon an additional period as reckonable service, and

(b) on that date that employment ceases to be whole-time and becomes part-time employment by virtue only of the amendment of any definitions by these regulations,

then—

(i) nothing in these regulations shall affect the period which he is entitled to count as a period of membership by virtue of his having made payments before the commencement date calculated in accordance with the 1986 regulations, and

(ii) without prejudice to any variation of the election which may be agreed between him and his employing authority or to any relevant change in his circumstances after that date—

(I) payments made by him on or after that date shall be made by reference to his actual remuneration for the time being, but

(II) the period of membership which he is entitled to count by virtue of them shall continue to be calculated on the same basis as if his employment were a whole-time employment.

Payments in respect of previous part-time service

4

Without prejudice to the previous provisions of this Schedule, the revocation of regulation C6A of the 1986 regulations (payments in respect of previous part-time service) shall not affect its operation as respects anything which immediately before the commencement date remains to be done under that regulation following an election in pursuance of paragraph 5 of Part IV of Schedule 2 to the 1986 regulations (retrospective elections), and where a payment is made by a member under that regulation on or after the commencement date, the member is entitled to count the period for which the payment is made as a period of membership in relation to the employment in respect of which he made the election.

Additional payments by certain members in respect of previous service

5

Without prejudice to the previous provisions of this Schedule—

(a) the revocation of regulation C7 of the 1986 regulations (additional payments by certain members in respect of previous service) shall not affect its operation as respects anything which immediately before the commencement date remains to be done under that regulation, and payments made under that regulation are to be treated for the purposes of these regulations as if they consisted of contributions made under regulation C4 in respect of employment in relation to which the person was a member;

(b) the periods in respect of which such payments are made by members may be counted by them as periods of membership in relation to the employment in respect of which they are made and, notwithstanding the revocation of regulation E25(3) to (5) of the 1986 regulations, that regulation shall apply as respects such membership resulting from payments made under regulation C7(2) (registration officers) on and after the commencement date as it applied to reckonable service resulting from earlier such payments.

6

(1) Without prejudice to the previous provisions of this Schedule, a person who has made, or whose widow or widower has made, one or more payments under regulation C7A(14) or (16) of the 1986 regulations is entitled to count as a period of membership in whole-time service an additional period of an amount equal to the appropriate proportion of the additional period specified in the notice of election under regulation C7A(6).

(2) In sub-paragraph (1) the “appropriate proportion” means the proportion which the person’s contractual hours of employment as at the relevant date (within the meaning of paragraph 2 of Schedule 4A to the 1986 regulations) bears to the contractual hours of a comparable whole-time employment as at that date.

(3) The additional period shall be disregarded for the purposes of regulation K1(4)(b) of the 1986 regulations.

(4) The additional period shall be treated—

(a) in the case of a person who is entitled to count service after 5th April 1988 as a period of membership under regulation B14, as membership after that date; and

(b) in any other case, as membership before 6th April 1988.

(5) Where a person has become entitled under sub-paragraphs (1) to (4) to count an additional period as a period of membership in whole-time service by virtue of a lump sum payment having been made in accordance with regulations C7A(16) of the 1986 regulations—

(a) the additional period shall be treated as having been able to be counted at the time when the person ceased to be a member; and

(b) the person shall be entitled to receive, within one month after making the lump sum payment, a sum equal to the additional amount he would have received if any benefits already paid to him had been calculated by reference to the increased period of membership.

(6) Regulation C18 (notice to discontinue contributions) applies to payments under regulation C7A(14) as it applies to the payments there mentioned, and a person who so discontinues such payment shall be entitled to count under sub-paragraphs (1) to (4) as membership in whole-time service an additional period equal to the appropriate proportion of the length of the period of membership in whole-time service which he would have been entitled to count under that paragraph if payment had been completed.

(7) Where a person began to make payments under regulation C7A(14) but ceases to be a member before he has completed payment of the sum payable by him under regulation C7A(8)—

(a) if he so ceases on his death or on ceasing to hold his employment by reason of permanent ill-health or infirmity of mind or body, he shall be treated as having completed payment of that sum;

(b) except where paragraph (c) applies, if he so ceases for any other reason he shall be entitled to count under sub-paragraphs (1) to (4) as membership in whole-time service an additional period equal to the appropriate proportion of the period of membership in whole-time service which he would have been entitled so to count if payment had been completed; and

(c) if he so ceases by reason of his ceasing to be employed by a LGPS employer and within one month after the date on which he so ceases he pays the appropriate administering authority a capital sum equal to the total of the instalments remaining unpaid, he shall then be treated as having completed payment.

(8) In sub-paragraphs (6) and (7) “appropriate proportion” means the proportion which the aggregate of the total amount paid by way of instalments under paragraph (14) of regulation C7A of the 1986 regulations and this paragraph and the amount paid or payable by the employing authority under paragraph (12) or, as the case may be, paragraph (13) of that employing authority under paragraph (12) or, as the case may be, paragraph (13) of that regulation and under this paragraph bears to the total sum payable by him and his employing authority under those provisions.

Incomplete payments under provisions saved by this Schedule

7

(1) Regulation C20 (effect of opting out of membership on certain additional payments) applies where a person is by virtue of this Schedule continuing to make additional periodical payments in pursuance of the 1986 regulations or the 1974 regulations as it applies where he has elected to make payments under regulation C9 or C13, but subject to paragraph (2).

(2) In the case of such payments as are mentioned in paragraph 1(4)(a) to (c), regulation C20 does not apply but—

(a) paragraphs 5 and 6 of Schedule 6 to the 1986 regulations (as continued in effect by paragraphs 1 and 9) shall apply as if the member had ceased to hold a local government employment on the day on which he ceased to be a member; and

(b) without prejudice to paragraph (a), if on that assumption he would become entitled to preserved benefits, he may give notice under paragraph 6 of that Schedule.

8

Regulation C19(7) shall apply to a person who has given notice under paragraph (2) of regulation C7B of the 1986 regulations (discontinuance of payments under regulation C6 of those regulations on making an election under regulation C7A of the 1986 regulations) as if payment of additional contributions under C9 had been discontinued under regulation C18.

Continuing provision relating to payments originally made under the 1974 regulations

9

(1) Without prejudice to paragraph 1, Schedule 5 to the 1974 regulations shall be deemed to have continued to have effect in relation to any payments under regulation D10 or D11 of the 1974 regulations which remain payable by virtue of paragraph 1; and Schedule 6 to the 1986 regulations shall be deemed to have continued to have effect in relation to any payments under regulation D6, D7 or D8 of the 1974 regulations which remain payable by virtue of that paragraph.

(2) In its application by virtue of sub-paragraph (1), Schedule 6 to the 1986 regulations has effect with the substitution—

(a) in paragraph 1 for the reference to regulation C9(2) of those regulations of a reference to paragraph 1 of this Schedule,

(b) in paragraphs 3 and 4 for the references to “service” and “reckonable service” of references to membership, and

and with the omission from paragraph 7 of sub-paragraph (1)(c)(ii).

Reduction of added years

10

Notwithstanding the revocation of regulation D8 (reduction of added years reckonable on payment as reckonable service), in so far as that regulation is capable of continuing to have effect it shall continue to do so.

Reduction of returned contributions in certain cases

11

Notwithstanding the revocation of regulation C15 of the 1986 regulations (reduction of returned contributions following payment in lieu of contributions), in so far as that regulation is capable of continuing to have effect it shall continue to do so.

SCHEDULE D1 — FURTHER PROVISIONS ABOUT PENSIONABLE REMUNERATION

Increase of pensionable remuneration where not all relevant period is a period of membership

1

(1) Where a person is entitled to count as a period of membership in relation to the employment which he ceases to hold only part of the year specified in regulation D1(2)(a), his pensionable remuneration is his remuneration during that part multiplied by 365 and divided by the number of days in that part.

(2) For the purposes of regulation D1 and sub-paragraph (1), where a person —

(a) was not employed in the employment which he ceases to hold for part of the year specified in paragraph (2)(a) of that regulation,

(b) was employed during the whole or some of that part of that year in another employment in respect of which he was a member, and

(c) regulation K20 applied as respects that other employment when he became employed in the employment he ceases to hold (or would have done so apart from regulation K22),

then he shall be treated as being entitled to count as a period of membership in relation to the employment he ceases to hold any period such as is mentioned in regulation K20(1)(c).

Optional alternative relevant periods

2

(1) Where the circumstances mentioned in any of paragraphs 3 to 5 apply, then if—

(a) the member or former member so elects, or

(b) in the event of his death, the appropriate administering authority so determine,

for the purposes of regulation D1 the relevant period is the period mentioned in that paragraph.

(2) An election under sub-paragraph (1) shall be made by a notice in writing given by the member or former member to the appropriate administering authority not later than one month after he is notified under regulation J4 of his entitlement to a benefit.

(3) Where a person dies while still in local government employment or without having made an election under sub-paragraph (1), the appropriate administering authority may give a determination in respect of any matter as to which an election under sub-paragraph (1) may have been made by him.

3

Subject to paragraphs 4 and 5, where a person is not entitled to count the whole of the period which would otherwise be the relevant period under regulation D1(2)(a) as a period of membership because he has been absent from duty (otherwise than by reason of illness or injury), the relevant period is the last 365 days which he is entitled to count as a period of membership.

4

(1) Where a reduction in a member’s remuneration is certified as material under this paragraph, then the relevant period is—

(a) such one of the last 5 of the 13 years ending with the day on which he ceases to be a member, or

(b) such consecutive 3 of those 13 years,

as he may elect (or, in a case within paragraph 2(3), as may be determined by the employing authority).

(2) Where by virtue of this paragraph the relevant period is a period of three consecutive years, the member’s pensionable remuneration is the aggregate of his remuneration during that period divided by three.

(3) Subject to sub-paragraph (7), where a member suffers a material reduction in remuneration he is entitled to be issued with a certificate to that effect by the employing authority.

(4) A member suffers a reduction in remuneration if—

(a) the remuneration of an employment which he continues to hold is reduced,

(b) he is transferred to another employment under the same LGPS employer at a reduced remuneration, or

(i) of an order made under section 17 of the Local Government Act 1992[^f00164], or

(ii) of any provision made by or under the Local Government (Wales) Act 1994[^f00165]

within the relevant period he is transferred to another employment under, or his employment is transferred to, a different LGPS employer at a reduced remuneration; and in paragraph (c) “the relevant period” means—

(I) in the case of a transfer involving a LGPS employer whose area is in England, the period beginning with the day on which the order mentioned in paragraph (c)(i) is made and ending with the expiry of the period of eighteen months beginning with the day on which the changes in structure or area provided for by that order have effect, and

(II) in the case of a transfer involving a LGPS employer whose area is in Wales, the period beginning with 1st January 1996 and ending with 31st March 1997.

(5) Subject to sub-paragraph (6), a reduction in remuneration is only material if it is such that the member’s pensionable remuneration would be likely to be less if the relevant period were the period applicable under regulation D1(2)(a) than if it were the period applicable under sub-paragraph (1).

(6) A reduction in remuneration is not material if—

(a) it did not result from circumstances beyond the member’s control, or

(b) it was temporary, or

(7) The employing authority may issue a certificate without an application from the member, but need not issue a certificate if he does not apply for one within 12 months after the date of reduction.

(8) A certificate issued under this paragraph is to specify the date of the material reduction and the authority are to keep, for 10 years from that date, a record of the certificate including such information as would be necessary for applying sub-paragraph (1).

5

Where the member’s pensionable remuneration would be higher if either of the two years immediately preceding the period applicable under regulation D1(2)(a) were the relevant period instead of that period, the relevant period is whichever of those years yields the highest amount.

Periods of absence

6

If during the 13 years ending with the day mentioned in regulation D1(2)(a) the member’s remuneration was reduced or suspended during absence from duty—

(a) if the reduction or discontinuance was by reason of illness or injury, or

(b) if it was otherwise than by reason of illness or injury and he—

(i) made contributions under regulation C5 (leave of absence), C6 (maternity absence) or a payment under regulation C7 (absence due to trade dispute), or

(ii) contributed under section 6(5) of the Act of 1937 (leave of absence etc.) he is for the purposes of regulation D1 and this Schedule to be treated as having received the remuneration which he would have received but for the reduction or discontinuance.

Part-timers

7

Subject to regulations E7 and F1(3) and paragraph 10(2) of Schedule M4, for the purposes of regulation D1 and this Schedule, a member is, in respect of any period of part-time local government employment, to be treated as having received the remuneration which would have been paid in respect of a single comparable whole-time employment.

Multiple employments

8

Where—

(a) a person was at any time employed in a single local government employment (“the first employment”),

(b) he becomes entitled to a benefit in relation to one of two or more concurrent local government employments (“the second employment”), and

that remuneration shall for that purpose be reduced to such amount as bears the same relation to it as the annual rate of remuneration of the second employment at the date when he ceased to hold that employment bears to the total of the annual rates of remuneration of all the concurrent employments at that date.

Fee earners

9

Where the whole or a part of the member’s remuneration consists of fees, his pensionable remuneration in respect of them is the annual average of the fees earned by him—

(a) during the period of three years ending with the last day of the period which is the relevant period for the purposes of regulation D1,

(b) during such more favourable period, of more than three but not more than five years, as his last employing authority may allow, or

(c) if he was entitled to receive fees during part only of the period mentioned in paragraph (a), during that part of the period.

Employees with notional remuneration

10

(1) Where—

(a) any of a member’s remuneration during the period which is the relevant period for the purposes of regulation D1 was determined in accordance with an agreement under paragraph 8 of Schedule C2 (notional remuneration),

(b) his average weekly earnings from his local government employment in that period (other than payments for overtime and payments by way of bonus) are within the relevant limits, and

his pensionable remuneration is to be determined by reference to those earnings.

(2) For the purposes of sub-paragraph (1) earnings are within the relevant limits if they—

(a) exceed by more than 50 per cent. the lower earnings limit at the end of the relevant period, and

(b) do not exceed the upper earnings limit at the end of that period.

(3) In this paragraph “lower earnings limit” and “upper earnings limit” have the same meaning as in the Pension Schemes Act 1993[^f00166]

SCHEDULE D2 — RETIREMENT GRANTS

PART I — PRESERVATION OF RIGHT UNDER 1974 REGULATIONS TO INCREASES IN STANDARDS RETIREMENT GRANTS

1

(1) Where, but for the revocation of the 1974 regulations, regulation E3(4) of those regulations (preservation of certain rights under former regulations to increased retiring allowance) would have applied to a person on ceasing to hold a local government employment, the standard retirement grant is increased by the amount by which it would have been increased if that regulation had applied.

(2) For the purposes of sub-paragraph (1)—

(a) an additional period which a person has become entitled to count as a period of membership by virtue of, or of payments commenced under, regulation D10 of the 1974 regulations shall be treated as a period of membership ending immediately before the date on which he first became a contributory employee or, if earlier, a local Act contributor; and

(b) no account shall be taken of any period which a person has become entitled to count as a period of membership by virtue of regulation F6(1)(a) or (b) of the 1986 regulations (war service).

(3) In the case of a person to whom regulation E19 of the 1974 regulations applied but who made an election under paragraph (2) of that regulation, sub-paragraph (1) above applies as if—

(a) he had at no time been entitled as mentioned in paragraph (1)(b) of that regulation; and

(b) he had immediately before the time there mentioned been such a person as was mentioned in regulation 14(a) or (b) of the Benefits regulations.

PART II — REDUCION IN STANDARD RETIREMENT GRANT ON ACCOUNT OF CONTINGENT SPOUSE'S PENSION

2

Subject to paragraph 5, where—

(a) a person who is a married man has a period of membership before 1st April 1972; and

(b) a widow’s pension may become payable in respect of him under Part F,

the standard retirement grant (as increased in accordance with Part I of this Schedule, if appropriate) is reduced by two-eightieths of his pensionable remuneration, multiplied by the length in years of that period in membership.

3

(1) Subject to paragraph 5, where—

(a) a woman has a period of membership of which notice has been given under paragraph 1(1) of Schedule F1 and which is or is treated for the purposes of this paragraph as being—

(i) a period of membership before 1st April 1972, or

(ii) a period of membership after 31st March 1972 but before 6th April 1988; and

(b) either—

(i) she is a married woman and a widower’s pension may become payable under Part F in respect of that service, or

(ii) she is a widow or a woman whose marriage has been dissolved and the death or, as the case may be, the dissolution occurred after 5th April 1988,

the standard retirement grant (as increased in accordance with Part I of this Schedule, if appropriate) is reduced—

(I) by three one hundred and sixtieths of the pensionable remuneration, multiplied by the length in years of any such membership as is mentioned in paragraph (a)(i), and

(II) by one one hundred and sixtieth of the pensionable remuneration, multiplied by the length in years of any such membership as is mentioned in paragraph (a)(ii).

(2) For the purposes of this paragraph—

(a) a period of membership which a person is entitled to count under regulation K14 shall be treated as being a period of membership after 31st March 1972 but before 6th April 1988 if—

(i) the relevant transfer value was accepted before 6th April 1988, or

(ii) paragraph 17(1)(b) of Schedule M4 (transitional provisions in relation to Interchange Regulations), applies to the relevant transfer value; and

(b) a period of membership falling within sub-paragraph (3)—

(i) to the extent that when aggregated with a period of actual membership after 31st March 1972 but before 6th April 1988 it does not exceed 16 years and 5 days, shall be treated as a period of membership after 31st March 1972 but before 6th April 1988; and

(ii) otherwise shall be treated as a period of membership before 1st April 1972.

(3) A period of membership falls within this sub-paragraph if—

(a) it may be counted under regulation C9 or by virtue of regulation D4, D5 or D9 of the 1986 regulations and the necessary payment was made or commenced before 6th April 1988, and

(b) it may be counted by virtue of a resolution passed under regulation D7 of the 1986 regulations before that date; or

(c) it is treated as a period of membership before that date by virtue of paragraph 6(4) of Schedule C6 or regulation D13(3) of the 1986 regulations (as continued in effect by virtue of Schedule M4).

4

(1) Subject to paragraph 5 and 6, where—

(a) the person—

(i) is a widower;

(ii) is judicially separated from his wife; or

(iii) is a man whose marriage has been dissolved; and

(b) the death or, as the case may be, the separation or dissolution occurred after the relevant date,

the standard retirement grant (as increased in accordance with Part I of this Schedule, if appropriate) is reduced by two eightieths of his pensionable remuneration, multiplied by the length in years of any period of membership before 1st April 1972, or, if earlier, the date of the death, separation of dissolution.

(2) In sub-paragraph (1)(b) “the relevant date” means—

(a) 30th September 1950; or

(b) if, but for the revocation of the 1974 regulations, sub-paragraph (ii) of regulation E3(6) of those regulations (certain cases where local Act provisions had applied before 1st April 1974) would have applied, the date that would have been the relevant date for the purposes of that sub-paragraph.

5

In calculating any reduction under paragraph 2, 3 or 4, no account shall be taken of any period of membership in respect of which payment under regulation C13 has been or is to be treated as having been completed.

6

No reduction is to be made under paragraph 4(1) where the person is a woman in relation to whom that paragraph applies as provided in paragraph 2(1) of Schedule F1—

(a) who has not made any election under regulation E12(1)(b) or (2)(b) of the 1986 regulations; or

(b) whose election has ceased to have effect under regulation E12(6) of those regulations.

SCHEDULE D3 — ADDITIONAL MEMBERSHIP IN CASES OF ILL-HEALTH

Relevant service and relevant membership period

1

(1) For the purposes of this Schedule—

(a) a member’s relevant service is so much of his contributing service and non-contributing service as did not consist of years added to his service—

(i) under regulation 12 of the Benefits regulations or under that regulation as applied by or under any enactment, or

(ii) under a corresponding provision of a local Act scheme, and

(b) a member’s relevant membership period is the total of—

(i) any period of membership deriving from relevant service which became reckonable service by virtue of regulation D1 of the 1974 regulations, and

(ii) any subsequent period of membership (other than a period excluded by sub-paragraph (2)).

(2) The subsequent period of membership mentioned in sub-paragraph (1)(b)(ii) does not include an additional period purchased by a lump sum or additional contributions unless—

(a) it was purchased on or after 17th September 1990 under regulation C7A of the 1986 regulations or under that regulation as continued in effect by Schedule C6, and

(b) taking that period into account results in an increase in the additional period.

Calculation of additional membership period

2

(1) Subject to paragraphs 3 and 4, the additional membership period is—

(a) in a case where the length of the relevant membership period is less than 10 years, a period equal to the length of the relevant membership period; and

(b) in any other case—

(i) the period by which the length of the relevant membership period falls short of 20 years, or

(ii) if longer 6²⁴³/₃₆₅ years.

(2) The additional membership period is not to exceed the period by which the member’s period of membership would have been increased if he had continued in the employment which he has ceased to hold until—

(a) he attained the age of 65 years, or

(b) if earlier, the date when his period of membership amounted to 40 years.

Alternative additional periods

3

(1) Subject to paragraph 4, where before entering the employment which he has ceased to hold the person had, on ceasing to hold a previous employment, became entitled to benefits—

(a) under regulation D7(1) or regulation E2(1)(b)(i) of the 1986 regulations, or

(b) under regulation 5(1)(a) of the Benefits regulations,

the additional period in relation to a person shall be a period calculated as mentioned in paragraph 2, but—

(i) on the assumption that his relevant membership period includes his relevant membership period (or, as the case may be, the period of his relevant service) in relation to the previous employment, and

(ii) with the deduction of the appropriate period.

(2) In sub-paragraph (1)(ii) “the appropriate period” means—

(a) in the case mentioned in sub-paragraph (1)(a), the additional period which became reckonable in relation to the previous employment by virtue of regulation D7(2) and this Schedule or, as the case may be, regulation E3(12) of the 1986 regulations, and

(b) in the case mentioned in sub-paragraph (1)(b)—

(i) if the person’s retirement pension in respect of the previous employment was calculated under regulation 5(3)(a) of the Benefits regulations, the period by which his relevant service fell short of 20 years, and

(ii) if that pension was calculated under regulation 5(3)(b) of those regulations, the period by which his relevant service would have been increased if he had continued in the previous employment until he attained the age of 65.

Part-timers

4

(1) Where—

(a) the whole of a member’s relevant membership period is in respect of part-time service, and

(b) the reduction under section B15(1)(b) is by the same proportion in respect of the whole period,

the additional membership period shall be determined in accordance with paragraphs 1 to 3 by reference to the period which would be the relevant membership period if the reduction required by regulation B15(1)(b) were not made (“the unreduced period”), and then the period resulting from the application of those provisions shall be reduced as mentioned in that regulation.

(2) Where—

(a) the whole of a member’s relevant membership period is in respect of part-time service, and

(b) different proportionate reductions fall to be made under section B15(1)(b) in respect of different parts of the relevant membership period,

the additional membership period shall be determined in accordance with paragraphs 1 to 3 by reference to the period would be the relevant membership period if the reductions required by regulation B15(1)(b) were not made (“the unreduced period”), and then—

(i) the period resulting from the application of those provisions shall be apportioned between the different parts mentioned in paragraph (b) in proportion to the respective lengths of the parts of the unreduced period attributable to each of them,

(ii) each such apportioned part of the unreduced period shall be reduced as mentioned in that regulation, and

(iii) those reduced periods shall be aggregated together.

(3) Subject to sub-paragraph (4), where part only of a member’s relevant membership period is in respect of part-time service, the additional membership period for the whole of his relevant membership period shall be determined in accordance with paragraphs 1 to 3 (and, in so far as the membership in respect of part-time service is concerned, by reference to the unreduced period), and then the period resulting from the application of those provisions (“the aggregate unreduced period”) shall be reduced by multiplying it by the fraction of which—

(a) the numerator is the member’s relevant membership period, determined, in so far as any membership in respect of part-time service is concerned, with the reduction required by regulation B15(1)(b) (and, where different proportionate reductions fall to be made under section B15(1)(b) in respect of different parts of the relevant membership period, determining the overall reduction as mentioned in sub-paragraph (2) above), and

(b) the divisor is the aggregate unreduced period.

(4) Where—

(a) apart from this sub-paragraph, sub-paragraph (3) would apply, and

(b) the member’s relevant membership includes not less than 13 121/365 years in respect of whole-time service ending with his ceasing to hold the employment,

then sub-paragraph (3) shall not apply.

(5) Where a member is in part-time service and his contractual hours are determined as mentioned in paragraph (iii) of the definition of “contractual hours” in regulation B3(4), (non-cyclical fluctuation) then, for the purposes of this paragraph—

(a) the lengths of the parts of the relevant membership period by reference to which different proportionate reductions fall to be made under regulation B15(1)(b) shall be determined by reference to the periods mentioned in that paragraph, and

(b) the reduction under that regulation in respect of any such period shall be made by reference to the contractual hours over that period as determined under that paragraph.

SCHEDULE D4 — PROCEDURE FOR SURRENDER OF PART OF RETIREMENT PENSION

1

The appropriate administering authority shall send to each person who becomes eligible to surrender part of his retirement pension, on his first becoming so eligible, a notice stating—

(a) that provision has been made by these regulations for the surrender of part of a retirement pension to a spouse or dependent; and

(b) that he may, on application to the authority, obtain further information on the subject.

2

(1) Subject to sub-paragraph (3), where a person wishes to make a surrender he may within the relevant period notify his wish to surrender a part of that retirement pension by completing a copy of the form specified at the end of this Schedule or a form to the like effect, and sending it to the appropriate administering authority.

(2) In sub-paragraph (1) “the relevant period” in relation to a member or former member, means—

(a) in the case of a person who on ceasing to hold his employment becomes entitled to a retirement pension (in this Schedule referred to as “a retiring employee”) not more than 2 months before or within one month after the date on which he ceases to be employed; and

(b) in the case of a person who would, if he were to retire from his employment, become entitled to a retirement pension (in this Schedule referred to as “a continuing employee”), within 2 months before or at any time after becoming a continuing employee and while he is still employed.

(3) Where the appropriate administering authority are satisfied that it has not been reasonably practicable for a retiring employee to notify his wish to surrender a part of a retirement pension within the relevant period owing to circumstances beyond his control, they may extend that period to a date not more than six months after the date on which he ceases to be employed.

3

(1) Subject to sub-paragraphs (2) and (3), where the appropriate administering authority receive a notification given by a person under paragraph 2, they shall—

(a) immediately arrange for him to be examined at his own expense by a registered medical practitioner nominated by them and for a report to be given to them by the practitioner stating whether, in his opinion that person is in good health for his age; and

(b) require the person to furnish at his own expense—

(i) a certificate of his birth (except where the date of birth has been duly recorded by the authority and is not disputed);

(ii) where the beneficiary is the person’s spouse, the spouse’s birth certificate and their marriage certificate;

(iii) where the beneficiary is a dependant, the dependant’s birth certificate and such evidence as may be appropriate to prove dependency,

and any other information or evidence which the authority consider necessary.

(2) Where the report under sub-paragraph (1)(a) is to the effect that the person is not in good health, the appropriate administering authority shall notify him accordingly and offer him an opportunity of a further examination at his own expense by some other registered medical practitioner nominated by them with a view to that practitioner reporting to them on the state of the person’s health.

(3) If for any reason a birth or marriage certificate cannot be supplied as mentioned in sub-paragraph (1), the authority may accept such other evidence of birth or marriage as they think fit in order to determine the age or, as the case may be, the marital status of the person concerned.

4

(1) Subject to the provisions of this Schedule, unless—

(a) the appropriate administering authority are of the opinion, on consideration of a report obtained by them under paragraph 3, that the person to whom the report relates is not in good health; or

(b) they are of opinion that the evidence produced concerning marriage or dependency is not satisfactory,

they shall—

(i) allow the surrender of such part of the retirement pension as is specified in the person’s notification and as is in conformity with this Schedule; and

(ii) grant to the beneficiary named in the notification a pension, payable in the event of the beneficiary’s surviving the person and to be calculated in accordance with regulation D14(4).

(2) Where—

(a) a person is named as spouse in the notification given under paragraph 2; and

(b) the appropriate administering authority are dissatisfied with the evidence of marriage, but are satisfied, on the evidence already before them or after making such further inquiries as they think necessary, that the named person is a dependent of the person who gave the notification,

they shall treat the notification as if the person named in it as spouse had been named as a dependant of the person giving the notification.

(3) A decision by an appropriate administering authority to allow a surrender by a retiring employee shall not be made before the date on which he ceases to be employed, and a decision by an appropriate administering authority to allow a surrender by a continuing employee shall not be made before the date on which he becomes such an employee.

(4) As soon as is reasonably practicable after deciding whether to allow a surrender of any part of the retirement pension of a person who has given them a notification under paragraph 2, the appropriate administering authority shall—

(a) notify him of their decision; and

(b) if they have allowed a surrender, furnish him—

(i) with a statement as to the amount of the pension to which the beneficiary may become entitled after his death; and

(ii) if the person who gave the notification under paragraph 2 is retiring employee, with a statement as to the amount of the reduced retirement pension to which he is entitled.

(5) A notification of a decision not to allow a surrender shall state the grounds for the decision.

(6) A notification sent to a person under sub-paragraph (4) shall, if it has been posted in a prepaid envelope addressed to him, be deemed to have been received by him at the time at which a letter would be delivered in the ordinary course of post.

5

A person who has given a notification under paragraph 2 of his wish to surrender a part of his retirement pension may, at any time before he has received notification from the authority of their decision, cancel or amend that notification by a notice in writing addressed to the appropriate administering authority and posted in a prepaid envelope to, or left at the principal office of, the authority.

6

(1) A notification given by a person under paragraph 2 shall become null and void if—

(a) the beneficiary dies before the person receives notification from the appropriate administering authority that his surrender has been allowed; or

(b) the person dies at any time before midnight on the day on which the appropriate administering authority decide to allow the surrender.

(2) Subject to sub-paragraph (1), a surrender allowed in pursuance of a notification given by a person shall have effect as from the date on which the person ceases to hold his employment.

FORM OF NOTIFICATION OF SURRENDER

LOCAL GOVERNMENT PENSION REGULATIONS

Regulation D14 and Schedule D4

SURRENDER OF PART OF RETIREMENT PENSION

SCHEDULE D5 — RE-EMPLOYED PENSIONERS

PART I — REDUCTION OF RETIREMENT PENSION

Application of Part I

1

(1) Subject to sub-paragraph (3), this Part of this Schedule applies to a person who, since becoming entitled to a retirement pension in relation to a former employment, has entered a new employment with a LGPS employer.

(2) In this Part of this Schedule “retirement pension” includes an annual pension under the former regulations and a retirement pension under the 1974 regulations or the 1986 regulations.

(3) This Part of this Schedule does not apply where the new employment is employment by virtue of which the person is entitled to participate in benefits provided under regulations made under section 9 of the Superannuation Act 1972[^f00167] (superannuation of teachers).

General reduction rule

2

Subject to paragraphs 3, 7 and 9, while the person holds the new employment the annual rate of the retirement pension is reduced—

(a) if the annual rate of remuneration of the new employment, equals or exceeds the indexed annual rate of remuneration of the former employment, to zero; and

(b) otherwise, by the amount (if any) which is necessary to secure that the potential receipts during the new employment do not exceed the indexed annual rate of remuneration of the former employment.

3

Where within the last 12 months of the former employment the person held another concurrent employment with any LGPS employer, former local authority or local Act authority, which he has ceased to hold without becoming entitled to a retirement pension in relation to it, and either—

(a) he has ceased to hold the concurrent employment after ceasing to hold the former employment; or

(b) he has ceased to hold the concurrent employment first, and entered the new employment within 12 months after ceasing to hold the concurrent employment,

then—

(i) if he does not devote substantially more of his time to the new employment than he devoted to the concurrent employment during the 12 months before he ceased to hold it, the annual rate of the retirement pension is not reduced; and

(ii) in any other case, paragraph 2 applies as if the indexed annual rate of remuneration of the former employment included the indexed annual rate of remuneration of the concurrent employment.

4

In paragraphs 2 and 3—

(a) references to the indexed annual rate of remuneration of the former or, as the case may be concurrent employment are to the sum of—

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