The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014

• (2) Where this paragraph applies, this Schedule, with the exception of paragraph 4(2)(b)(iv), continues to apply to any undrawn benefits accrued by the member before the date the member started to receive payment of benefits under those regulations.

6

• (1) This paragraph applies to a member to whom regulation 4 of the 2008 Scheme Transitional Regulations (membership accrued before 1st April 2008: deferred members), regulation 16 of the Administration Regulations (re-employed and rejoining deferred members), or regulation 10(1) of these Regulations (interfund adjustments) applies.

• (2) Where such a member does not choose, or does not choose as respects all periods of membership, to be treated as if regulation 3 of the 2008 Scheme Transitional Regulations (membership accrued before 1st April 2008: active members) applies, or to have the member’s membership aggregated under regulation 16 of the Administration Regulations (re-employed and rejoining deferred members), or under regulation 22 of the 2013 Regulations (pension accounts), as the case may be, then in applying paragraphs 1 to 5 and 9 of this Schedule as respects any later membership, the total membership excludes unaggregated periods.

7

• (1) This paragraph applies to a member who was a member of the 1998 Scheme before 1st October 2006 who—

• (a) before 1st October 2006 elected to make additional contributions to the Scheme to increase total membership under regulation 55(1) of the 1997 Regulations (payments to increase total membership); and

• (b) was assumed to retire from a local government employment on a date before the member’s 65th birthday (“the assumed date”) for the purposes of calculating additional contributions under regulation 55(6) of the 1997 Regulations.

• (2) Where a member to whom this paragraph applies—

• (a) continues paying the additional contributions until the assumed date; and

• (b) retires on or after the assumed date,

the member shall not pay any additional contributions after that date and the whole of the additional period may be counted as part of the total membership for the purposes of paragraphs 1 to 5 and 9 of this Schedule.

• (3) An additional period counted as a period of total membership as a result of this paragraph shall be treated as a period of membership before 1st April 2008.

8

• (1) This paragraph applies to a person who was an active member of one of the Earlier Schemes before 1st October 2006 and who—

• (a) ceases to be an active member of the 1998 Scheme, the 2008 Scheme or the 2014 Scheme (whether before, on, or after that date); and

• (b) resumes active membership.

• (2) If a member to whom this paragraph applies aggregates any period of membership after the resumption of employment with the period of membership accrued in the previous local government employment—

• (a) where the member resumed active membership in the 2014 Scheme and has had a disqualifying break, this Schedule does not apply to the earlier period, except in applying this Schedule to the later period of membership, for the purposes of paragraph 4 (determining whether the member satisfies the 85 year rule); or

• (b) where the member resumed active membership in an Earlier Scheme, or resumed active membership in the 2014 Scheme without a disqualifying break, this Schedule applies to the whole period of the aggregated membership.

• (3) A disqualifying break for the purposes of paragraph (2) is a continuous break in active membership of a public service pension scheme of more than five years.

9

• (1) This paragraph applies to a member who was a member before 1st October 2006, who will reach or has reached the age of 60 on or after 1st April 2016 and before 1st April 2020, and whose retirement benefits would (but for the provisions of this paragraph) have been actuarially reduced on account of the age at which they were drawn.

• (2) That part of the member’s retirement benefits which is calculated by reference to any period of membership after 31st March 2008 shall be reduced in accordance with actuarial guidance issued by the Secretary of State.

Signed

Signed by authority of the Secretary of State for Communities and Local Government

Brandon Lewis — Parliamentary Under Secretary of State — Department for Communities and Local Government — 5th March 2014

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations set out the transitional and savings provisions relating to members of the Local Government Pension Scheme 2008 (“the 2008 Scheme”) which is to be replaced by a new Local Government Pension Scheme by the Local Government Pension Scheme Regulations 2013 (SI 2013/2356) with effect from 1st April 2014 (“the 2014 Scheme”). Their effect is to protect the benefits accrued by members of the 2008 Scheme before 1st April 2014.

Regulation 2 and Schedule 1 revoke, subject to savings, the regulations which constitute the 2008 Scheme and its predecessor Schemes.

Regulation 3 preserves the membership and benefits accrued in the previous Schemes.

Regulation 4 ensures that an active member who was within 10 years of normal pension age under the 2008 Scheme on 1st April 2012 is entitled to draw benefits on retirement which are no less than they would have been able to draw if the 2008 Scheme had continued to exist.

Regulation 5 provides for automatic transfer into the 2014 Scheme of persons who are members of the 2008 Scheme on 31st March 2014.

Regulation 6 preserves the status of admission agreements entered into before the 2014 Scheme commences, meaning that membership of the Scheme is maintained for employees who became members by virtue of an admission agreement.

Regulation 7 provides that membership of the 2008 Scheme and its predecessor Schemes, and transfers from different pension scheme into those Schemes counts as membership of the 2014 Scheme. This is relevant for identifying when members of the 2014 Scheme have reached the two year vesting period required to be entitled to benefits under the 2014 Scheme.

Regulation 8 identifies elements of remuneration which are not to count as pensionable pay under the 2014 Scheme.

Regulations 9 and 10 make provision as regards transfers into the 2014 Scheme of benefits from other public service pension schemes and between funds in the 2014 Scheme. The effect of the provisions is to enable certain members to benefit from the provisions in Schedule 7 to the Public Services Pension Act 2013 which provide for the calculation of final salary to be based on the remuneration a person receives at the date of retirement rather than the date of transfer.

Regulation 11 provides for the dates on which benefits under the 2008 Scheme and its predecessor Schemes may and must be drawn.

Regulation 12 preserves transitional protection for certain groups as regards entitlement to ill-health benefits and makes provision for how recipients of ill-health benefits under the 2008 Scheme are to be dealt with under the 2014 Scheme.

Regulation 13 provides for amounts of pension deriving from the 2008 Scheme and its predecessor Schemes taken as a lump sum to be brought into account when a member commutes pension under the 2014 Scheme into a lump sum.

Regulations 14 and 15 make provision in respect of contributions and the purchase of additional pension. Arrangements for the purchase of added membership and additional pension entered into before 1st April 2014 are preserved and purchase benefits under the 2008 Scheme.

Regulation 16 makes provision for payments to be taken from benefits accrued under the 2008 and predecessor Schemes where appropriate when a member has a tax charge to pay under the Finance Act 2004.

Regulation 17 makes provision for survivor pensions and death grants where the deceased member was entitled to benefits under both the 2008 Scheme and the 2014 Scheme.

Regulation 18 and Schedule 2 preserve the so-called “rule of 85” for qualifying members, enabling them to draw benefits without actuarial reduction when the sum of their age and the years membership of the local government pension scheme equals or exceeds 85. This protection is being phased out between 2008 and 2020.

Regulation 19 preserves any directions issued by the Secretary of State changing the appropriate administering authority for a member.

Regulation 20 makes provision in respect of pension sharing orders to ensure they have appropriate impact on pre-2014 Scheme benefits.

Regulation 21 preserves regulations entitling members to obtain information necessary to enable them to pursue claims relating to the mis-selling of pensions.

Regulation 22 requires Scheme employers to provide information to administering authorities to enable them to carry out their functions.

Regulation 23 provides for the procedures for the resolution of disputes under the 2014 Scheme to apply in respect of any unresolved disputes under the 2008 Scheme.

Regulation 24 applies to various bodies who have for historical reasons come within the local government pension scheme with modifications as to how the Scheme regulations apply to their employees. The effect of the regulation is to carry over those modifications into the 2014 Scheme with the exception of any modification of the normal retirement age of members, which is to be changed where necessary to come into line with the provisions applying to all members of the 2014 Scheme.

Regulation 25 preserves provisions relating to the application of the Pensions (Increase) Acts which can lead to a requirement on Scheme employers to make additional payments into the fund clarifying where liability for any such requirements lies in the case of certain employers.

Regulation 26 removes the entitlement of certain councillors and elected mayors in England to be members of the local government pension scheme.

No separate regulatory impact assessment has been produced for these Regulations but see the impact assessment associated with the Local Government Pension Scheme Regulations 2013 which is available at https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/local-government-pensions.

Footnotes

Editorial notes

Employer contributions for historic liabilities

25A

• (1) This regulation applies to an employer who—

• (a) is or was a Scheme employer or admission body in the 2014 Scheme or its equivalent under any of the Earlier Schemes;

• (b) has outstanding liabilities to a fund (“the relevant fund”) in relation to any person entitled to benefits under the 2014 Scheme or any of the Earlier Schemes;

• (c) irrespective of whether that employer employs active members contributing to one or more other funds, does not employ any active members contributing to the relevant fund;

• (d) has not paid into the relevant fund an exit payment under regulation 64 of the 2013 Regulations (special circumstances where revised actuarial valuations and certificates must be obtained) or an equivalent payment under any of the Earlier Regulations.

• (2) Where this regulation applies, an administering authority may require the employer to pay such contributions as an actuary certifies must be paid to meet the outstanding liabilities to the relevant fund.

• (3) Payments under paragraph (2) must be paid over such period of time as the administering authority considers reasonable.

• (4) When an employer has paid the contributions referred to in paragraph (2), no further payments are due from that employer in respect of those liabilities to the relevant fund relating to the benefits in respect of any current or former employees of that employer.

Councillor pensions

Statutory underpin: general

4A

• (1) This regulation and regulations 4B to 4V (provisions relating to the statutory underpin) apply in relation to an eligible member’s remediable service⁶ during the underpin period.

• (2) An “eligible member” is a person who—

• (a) has remediable service in relation to the 2014 Scheme; or

• (b) has transferred remediable service into the 2014 Scheme from—

• (i) a Chapter 1 scheme⁷,

• (ii) a judicial scheme⁸, or

• (iii) another local government scheme⁹.

• (3) The “underpin period” is the period—

• (a) beginning with 1st April 2014; and

• (b) ending with the earlier of—

• (i) 31st March 2022, and

• (ii) the date on which the eligible member attains—

• (aa) the normal retirement age applicable to them under the 2008 Scheme, or

• (bb) where the person was not a member of the 2008 Scheme, the age of 65.

Statutory underpin: retirement, redundancy, ill health

4B

• (1) This regulation applies in relation to an eligible member whose final underpin date is that in regulation 4H(1)(a), (c), (d) or (e) (statutory underpin: final underpin date).

• (2) The pension account to which the final underpin date relates is to be increased by any final guarantee amount calculated in relation to that pension account.

• (3) The pension account is to be increased on the day after the eligible member’s final underpin date.

Statutory underpin: flexible retirement

4C

• (1) This regulation applies in relation to an eligible member whose final underpin date is that in regulation 4H(1)(b) (statutory underpin: final underpin date – flexible retirement).

• (2) The pension account to which the final underpin date relates (“the pension account”) is to be increased by a percentage of the final guarantee amount that is equal to the percentage of the retirement pension that the eligible member takes under regulation 30(6) of the 2013 Regulations.

• (3) On each occasion where the amount of pension taken by the eligible member under regulation 30(6) of the 2013 Regulations is less than 100% of the member’s relevant pension, at the next occurring final underpin date (“the subsequent final underpin date”), a further calculation of the eligible member’s final assumed benefits and final underpin amount relating to the flexible retirement is to be completed in accordance with regulations 4K and 4L.

• (4) Where, on the subsequent final underpin date, the eligible member’s final assumed benefits are exceeded by their final underpin amount, the pension account is to be increased by a percentage of the final guarantee amount that is equal to the percentage of the original retirement pension that the eligible member took on the subsequent final underpin date.

• (5) Where paragraph (2) or (4) apply, the pension account is to be increased on the day after the eligible member’s final underpin date or subsequent final underpin date, as the case may be.

• (6) In paragraph (4), “original retirement pension” means the amount of the eligible member’s retirement pension as at the day of the eligible member’s first final underpin date.

• (7) Paragraphs (8) to (10) apply where the eligible member—

• (a) began their reduced working hours or grade of employment during the underpin period; and

• (b) accrued benefits—

• (i) after taking payment of a retirement pension under regulation 30(6), but

• (ii) before the end of the underpin period.

• (8) At the eligible member’s next occurring underpin date (the “additional underpin date”), the eligible member’s provisional assumed benefits and provisional underpin amount are calculated in accordance with regulations 4I and 4J, but—

• (a) the underpin period for the purpose of those calculations begins with the day on which the eligible member’s reduced hours or grade began; and

• (b) those calculations are not to include any period which has already been used in the calculation of a final guarantee amount in relation to the pension account.

• (9) At the eligible member’s next occurring final underpin date (which may be on the same day as the additional underpin date, or after), the eligible member’s final assumed benefits and final underpin amount in relation to their pension account are calculated in accordance with regulations 4K and 4L but using the provisional assumed benefits and provisional underpin amounts as provided for in paragraph (8).

• (10) Where the eligible member’s final assumed benefits, calculated in accordance with paragraph (9), are exceeded by their final underpin amount—

• (a) where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(a) to (e), the pension account is to be increased on the day after that date by an amount equal to the difference;

• (b) where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(f), regulation 4D(2) applies;

• (c) where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(g) or (h), regulation 4E(2) applies;

• (d) where the eligible member’s next occurring final underpin date is that in regulation 4H(1)(i), regulation 4F(2) applies.

• (11) In this regulation “relevant pension” is the pension built up in the 2014 Scheme before the member’s first final underpin date.

Statutory underpin: lump sum payments

4D

• (1) This regulation applies to an eligible member whose final underpin date is that in regulation 4H(1)(f) (statutory underpin: final underpin date – lump sum payment).

• (2) Where this regulation applies the eligible member’s pension account is not to be increased by any final guarantee amount relating to the pension account¹⁰.

Statutory underpin: transfers

4E

• (1) This regulation applies to an eligible member whose final underpin date is that in regulation 4H(1)(g) or (h) (statutory underpin: final underpin date – transfer to a different scheme).

• (2) Where this regulation applies—

• (a) no final guarantee amount is to be calculated in relation to the pension account; and

• (b) either—

• (i) where regulation 4H(1)(g) applies to the eligible member, regulation 96 of the 2013 Regulations applies (right to payment out of the pension fund), or

• (ii) where regulation 4H(1)(h) applies to the eligible member, regulation 98 of the 2013 Regulations applies (bulk transfer (transfer of undertakings etc.)).

Statutory underpin: members taking a repayment of contributions

4F

• (1) This regulation applies in relation to an eligible member whose final underpin date is that in regulation 4H(i) (statutory underpin: final underpin date – receipt of repayment under regulation 18 of the 2013 Regulations).

• (2) An eligible member to whom this regulation applies is not entitled to a final guarantee amount in respect of any repaid contributions.

Statutory underpin: underpin date

4G

An eligible member’s underpin date, in relation to a pension account, is the earliest of—

• (a) the last day on which the eligible member is an active member of the 2014 Scheme;

• (b) the date on which the eligible member attains—

• (i) the normal retirement age applicable to the eligible member under the 2008 Scheme, or

• (ii) where the eligible member was not a member of the 2008 Scheme, the age of 65, and

• (c) where the eligible member elects to receive an immediate payment of all or part of their pension under regulation 30(6) of the 2013 Regulations, the day before the date on which the eligible member’s reduced working hours or grade of employment begins.

Statutory underpin: final underpin date

4H

• (1) An eligible member’s final underpin date, in relation to a pension account, is the earliest of the following dates which occur either at the same time as, or after, an underpin date applicable to that pension account—

• (a) the day before the date on which a pension under regulation 30(1), (3) or (5) of the 2013 Regulations (retirement pension) commences;

• (b) where the eligible member elects to receive an immediate payment of all or part of the retirement pension under regulation 30(6) of the 2013 Regulations (flexible retirement), the day before the date on which the eligible member’s reduced working hours or grade of employment begins¹¹;

• (c) the day before the date on which a pension under regulation 30(7) of the 2013 Regulations commences (pension by virtue of dismissal from employment);

• (d) the day before the date on which a pension under regulation 35(1) of the 2013 Regulations commences (pension on grounds of ill health for active members);

• (e) the day before the date on which a pension pursuant to a request made under regulation 38(1) or (4) of the 2013 Regulations commences (pension on grounds of ill health for deferred members);

• (f) where the eligible member takes payment of a lump sum under regulation 34(1)(a) or (c) of the 2013 Regulations (trivial commutation) in relation to the pension, the day before the date used to calculate the sum;

• (g) where, in accordance with regulation 96(1) of the 2013 Regulations (payment out of pension fund), the eligible member applies for a transfer under Chapters 1 or 2 of Part 4ZA of the Pension Schemes Act 1993¹², the date used to calculate the cash equivalent transfer value paid;

• (h) where a transfer payment is made in respect of the eligible member under regulation 98 of the 2013 Regulations (bulk transfers), the date used to calculate the value of the transfer payment; and

• (i) the date on which the administering authority makes payment to the eligible member under regulation 18 of the 2013 Regulations relating to the pension account¹³.

• (2) Where the eligible member has had a final underpin date by virtue of paragraph (1)(b), paragraph (1) subsequently applies as if for “the earliest of the following dates” there were substituted “the next occurring of the following dates”.

Statutory underpin: calculation of provisional assumed benefits

4I

• (1) An eligible member’s provisional assumed benefits are calculated by assessing, at the eligible member’s underpin date, the benefits the eligible member would have been entitled to under the 2014 Scheme over the underpin period if—

• (a) the eligible member had paid contributions under regulation 9 of the 2013 Regulations in respect of the underpin period—

• (i) including—

• (aa) in respect of any period of absence from work because of illness or injury, child-related leave or reserve forces service leave;

• (bb) where, on the underpin date, the eligible member left active membership with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) respectively of the 2013 Regulations, any adjustment under regulation 39 of those Regulations (calculation of ill-health pension amounts) in respect of the underpin period;

• (cc) in respect of any period of absence from work with no pensionable pay in consequence of a trade dispute if the eligible member elected to cover that period by entering into an arrangement under regulation 16 of the 2013 Regulations (additional pension contributions); and

• (dd) in respect of any period of absence from work with permission with no pensionable pay in respect of which the eligible member elected to cover that period by entering into an arrangement under regulation 16 of the 2013 Regulations, but

• (ii) excluding—

• (aa) any period where the eligible member was not an active member; and

• (bb) any period of unpaid absence from work without permission;

• (b) the eligible member or their Scheme employer had, in respect of the underpin period, paid no additional contributions under—

• (i) regulation 16 of the 2013 Regulations, other than additional contributions paid under that regulation to cover a period of absence from work with no pensionable pay, as is set out in sub-paragraph (a)(i),

• (ii) regulation 17 of the 2013 Regulations,

• (iii) regulation 25(1) of the Administration Regulations 2008¹⁴, or

• (iv) regulation 60(1) of the 1997 Regulations ¹⁵;

• (c) the eligible member had not been awarded additional annual pension under regulation 31 of the 2013 Regulations;

• (d) the scheme had received no transfer value payment in respect of the eligible member, except for a transfer value payment received from—

• (i) a Chapter 1 scheme,

• (ii) a judicial scheme, or

• (iii) another local government scheme,

where service in that scheme was remediable service and there was no continuous break of more than five years in active membership of a public service pension scheme since the remediable service was accrued;

• (e) the revaluation adjustment (as defined in Schedule 1 to the 2013 Regulations) that would have applied to the eligible member’s provisional assumed benefits had they been benefits built up in an active member’s pension account, had been made up to and including the eligible member’s underpin date;

• (f) no transfer value payment had been made to the eligible member’s pension account under regulation 10(5) or (6); and

• (g) where the balance in the eligible member’s pension account at the underpin date had been adjusted on account of any pension debit or Scheme pays election¹⁶, that adjustment had not occurred.

• (2) Where paragraph (1)(a)(i)(cc) or (dd) apply, the additional pension purchased is to be included in the provisional assumed benefits as if it were pension credited to the eligible member’s pension account on the earliest of—

• (a) 31st March in the Scheme year in which the absence ended;

• (b) 31st March 2022; and

• (c) the member’s underpin date.

• (3) Where paragraph (2) applies, if the eligible member fails to pay all of the additional pension contributions due, only the amount of additional pension credited to the pension account is to be included in the provisional assumed benefits (but see paragraph (4)).

• (4) Paragraph (3) does not apply if the eligible member fails to pay all the additional pension contributions due because—

• (a) the eligible member left active membership of the 2014 Scheme under regulation 35 of the 2013 Regulations with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) of those Regulations respectively; or

• (b) the eligible member died as an active member.

• (5) Where paragraph (3) does not apply by virtue of paragraph (4), the eligible member is treated as having paid the additional pension contributions referred to in paragraph (1)(a)(i)(cc) or (dd) in full.

• (6) Where paragraph (1)(a)(i)(cc) or (dd) apply in relation to a period during which the eligible member was paying reduced contributions under regulation 10 of the 2013 Regulations, the additional pension included in the provisional assumed benefits for that period is that which would have been payable had the eligible member not been paying reduced contributions.

• (7) Where the eligible member has qualifying service for less than a period of two years, the member is treated as having qualifying service for a period of two years for the purpose of calculating their provisional assumed benefits.

• (8) Paragraph (9) applies where, after the eligible member’s underpin date, the eligible member completes—

• (a) a transfer in of remediable service from—

• (i) a Chapter 1 scheme,

• (ii) a judicial scheme, or

• (iii) another local government scheme; or

• (b) the aggregation of remediable service from the 2014 Scheme.

• (9) Where this paragraph applies—

• (a) the eligible member’s provisional assumed benefits are to be calculated as at the eligible member’s underpin date taking into account their transferred in or aggregated remediable service; and

• (b) any calculation of provisional assumed benefits done in respect of the pension account into which the remediable service has been transferred or aggregated is set aside.

• (10) Paragraph (9) does not apply if there has been a continuous break in active membership of a public service pension scheme of more than five years since the remediable service was accrued.

Statutory underpin: calculation of the provisional underpin amount

4J

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

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

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

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

• (ii) any period of unpaid absence due to a trade dispute, or absence from work with permission, otherwise than because of illness or injury, child related leave, or reserve forces service leave, if the eligible member elected to cover that period by entering into an arrangement under regulation 16 of the 2013 Regulations (additional pension contributions), and

• (iii) where the member became entitled to Tier 1 or Tier 2 benefits under regulation 35 of the 2013 Regulations, any additional period of membership that would have been added to the member’s total membership under regulation 20(2) (in respect of a Tier 1 pension) or regulation 20(3) (in respect of a Tier 2 pension) of the Benefits Regulations¹⁷, up to the end of the underpin period, as if the member had been entitled to an increase in benefits under the provision in question at the underpin date;

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

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

• (i) a Chapter 1 scheme,

• (ii) a judicial scheme, or

• (iii) another local government scheme, and

there was no continuous break of more than five years in active membership of a public service pension scheme since the remediable service was accrued; and

• (e) where the balance in the eligible member’s pension account at the underpin date had been adjusted on account of any pension debit or Scheme pays election, that adjustment had not occurred.

• (2) Where paragraph (1)(b)(ii) applies, the unpaid period to be used in relation to the provisional underpin amount is the proportion of the period of absence that is equal to the proportion of the full amount of contributions to be paid under the arrangement that have been paid by the eligible member.

• (3) Paragraph (2) does not apply if the eligible member fails to pay all the additional pension contributions due because—

• (a) the eligible member left active membership of the 2014 Scheme with an entitlement to Tier 1 or Tier 2 benefits under regulation 35(5) or (6) of the 2013 Regulations respectively; or

• (b) the eligible member died.

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

• (5) Where the eligible member has qualifying service for less than a period of two years, the member is treated as having qualifying service for a period of two years for the purpose of calculating their provisional underpin amount.

• (6) Paragraph (7) applies where, after the eligible member’s underpin date, the eligible member completes—

• (a) a transfer in of remediable service from—

• (i) a Chapter 1 scheme,

• (ii) a judicial scheme, or

• (iii) another local government scheme; or

• (b) the aggregation of remediable service from the 2014 Scheme.

• (7) Where this paragraph applies—

• (a) the eligible member’s provisional underpin amount is to be calculated as at the eligible member’s underpin date taking into account their transferred in or aggregated remediable service; and

• (b) any calculation of a provisional underpin amount done in respect of the pension account into which the remediable service has been transferred or aggregated is set aside.

• (8) Paragraph (7) does not apply if there has been a continuous break in active membership of a public service pension scheme of more than five years since the remediable service was accrued.

Statutory underpin: calculation of final assumed benefits

4K

• (1) An eligible member’s final assumed benefits are calculated by adjusting their provisional assumed benefits at the eligible member’s final underpin date in accordance with this regulation.

• (2) Where the eligible member’s underpin date is not the same date as their final underpin date, apply any revaluation adjustment or index rate adjustment to provisional assumed benefits that would have applied to a deferred benefit in the 2014 Scheme as if the last day of scheme membership was the underpin date.

• (3) Where regulation 30(4) of the 2013 Regulations (pension taken later than normal pension age) applies to the eligible member, apply the enhancement as set out in that provision to provisional assumed benefits.

• (4) Where regulation 30(5) (pension taken earlier than normal pension age) or (6) (pension by virtue of flexible retirement) of the 2013 Regulations applies to the eligible member and their benefits under the 2014 Scheme are being reduced as set out in that provision, apply an equivalent reduction to provisional assumed benefits.

• (5) Where paragraph (4) applies, also reflect in the reduction such transitional provisions under Schedule 2 as apply (if any).

• (6) Where—

• (a) the eligible member’s provisional assumed benefits include any additional pension under regulation 16 of the 2013 Regulations;

• (b) the member is taking payment of their pension before the normal pension age applicable to them under the 2014 Scheme; and

• (c) regulation 30(7)(a) of the 2013 Regulations (pension by virtue of dismissal from employment) applies to reduce the amount of pension payable,

the additional pension referred to in sub-paragraph (a) is also to be reduced in accordance with regulation 30(7)(a) of the 2013 Regulations.

• (7) This regulation is subject to regulation 4N (statutory underpin: effect of uplift of Tier 3 benefits to Tier 2 benefits).

Statutory underpin: calculation of final underpin amount

4L

• (1) An eligible member’s final underpin amount is calculated by adjusting their provisional underpin amount at the eligible member’s final underpin date in accordance with this regulation.

• (2) Add any amount by which the provisional underpin amount would be increased if it were a pension to which the Pensions (Increase) Act 1971¹⁸ applied, which relates to the period—

• (a) beginning with the day after the day on which the period used for the purposes of calculating the eligible member’s final pay under regulations 8 to 11 of the Benefits Regulations ends; and

• (b) ending with the eligible member’s final underpin date.

• (3) Where an eligible member first receives payment of their retirement pension after the day on which they attain the age of 65, apply an enhancement calculated in accordance with actuarial guidance issued by the Secretary of State.

• (4) Where—

• (a) regulation 30(5) (pension taken earlier than normal pension age) or (6) (pension by virtue of flexible retirement) of the 2013 Regulations applies to an eligible member); and

• (b) the eligible member has not attained the age of 65,

apply an adjustment calculated in accordance with actuarial guidance issued by the Secretary of State.

• (5) Where paragraph (4) applies, the reduction is also to reflect such transitional provisions under Schedule 2 as apply (if any).

• (6) This regulation is subject to regulation 4N (statutory underpin: effect of uplift of Tier 3 benefits to Tier 2 benefits).

Statutory underpin: effect of cessation of Tier 3 benefits

4M

• (1) This regulation applies in relation to an eligible member—

• (a) who takes payment of Tier 3 benefits under regulation 35(7) of the 2013 Regulations; but

• (b) whose Tier 3 benefits subsequently cease by virtue of—

• (i) the eligible member having been entitled to Tier 3 benefits for three years,

• (ii) regulation 37(3) of the 2013 Regulations (starting employment), or

• (iii) regulation 37(7)(c) of those Regulations (cessation of benefit following review).

• (2) Where this regulation applies—

• (a) the eligible member ceases to be entitled to any future payments of any final guarantee amount to which the person became entitled by virtue of being entitled to Tier 3 benefits from the date those benefits cease; and

• (b) regulations 4A to 4V apply in relation to the eligible member as if they had never previously had a final underpin date in relation to the pension account.

Statutory underpin: effect of uplift of Tier 3 benefits to Tier 2 benefits

4N

• (1) This regulation applies in relation to an eligible member—

• (a) who takes payment of Tier 3 benefits under regulation 35(7) of the 2013 Regulations; and

• (b) whose Tier 3 benefits subsequently cease—