The Local Government Superannuation (Scotland) Regulations 1987

Relation A2(1)

SCHEDULE 1GLOSSARY OF EXPRESSIONS

Regulation A3

SCHEDULE 2MODIFICATIONS TO THE REGULATIONS IN THEIR APPLICATION TO EMPLOYEES OF THE SCOTTISH SPECIAL HOUSING ASSOCIATION

1.  Regulation C12(5) shall have effect as if it provided that any direction required by that regulation shall not have effect unless it has been approved by the Secretary of State.

2.  For the purposes of Part D “service” rendered to the Association before 16th May 1945 shall not be construed as qualifying or reckonable service.

3.  Regulation P6 shall have effect as if paragraph (2)(b) of that regulation were deleted.

4.  Arrangements for actuarial valuations of, and reports on, the assets and liabilities of the fund administered by the Association and arrangements for making good any deficiency or for disposal of a disposable surplus disclosed by a valuation and report shall be made by the Secretary of State.

5.  Where the General Manager of the Association elects by notice in writing given to the Association, a percentage, not exceeding 4.4%, of his remuneration shall be treated as not being remuneration for the purposes of these Regulations.

Regulation B1

SCHEDULE 3PENSIONABLE EMPLOYEES

PART I

1.  A regional council, an islands council or a district council.

2.  A joint board or joint committee appointed under any enactment, order or scheme, all the constituent authorities of which are such councils as aforesaid.

3.  A water development board.

4.  A river purification board.

PART II

1.  A variable-time employee of a body described in Part I who is also in the whole-time employment of such a body.

2.  A whole-time employee or a variable-time employee of any other body to which section 270 of the Local Government (Scotland) Act 1947(26) applied.

3.  A whole-time employee of a passenger transport executive.

PART III

1.  The requirements to be satisfied in order that a whole-time manual worker employed by a body described in Part I may be a pensionable employee by virtue of regulation B1(3)(c) are that—

(a)he became employed by that body as such a worker after ceasing to be employed in non-local government employment, and

(b)he has, not later than 12 months after the date on which he became employed by that body as such a worker, elected to become a pensionable employee by notice in writing given to that body.

2.  A notice under paragraph 1(b) must also contain a declaration by the worker that his pension rights under his non-local government scheme will be preserved or that he has applied, or will apply, for their transfer to the appropriate administering authority.

Regulations C5, C6, D7

SCHEDULE 4MAXIMUM LENGTH OF ADDITIONAL PERIODS

1.—(1) Subject to paragraph 2, the maximum length of the period in respect of which payment may be made under regulation C5 or C6 or which may be specified in a resolution under regulation D7 is A—B, where—

• A is the number of years specified in column (2) of the Table below against the age specified in column (1) which the person had attained at the appropriate time, and

• B is the period he would otherwise be entitled to reckon as reckonable service in relation to his local government employment if he continued in it until he attained the age of 65 years.

  TABLE

  (1)	(2)
  Age attained	Number of years
  Any age less than 55	40
  55	32
  56	24
  57	16
  58	8
  59	0

(2) Subject to sub-paragraph (3), the appropriate time is the first day of the earliest period that the person is entitled to reckon as reckonable service in relation to his local government employment.

(3) Where that period is one of service as an officer of a scheduled body or former local authority, or one during which the person was subject to a non-local government scheme other than one which was or became a statutory scheme, the appropriate time is the first day of the earliest period of local government employment that the person is entitled to reckon as mentioned in sub-paragraph (2).

2.—(1) In the case of a person who at the appropriate time was entitled to or had received superannuation benefits (including a return of contributions and any benefit by way of a lump sum payment) in respect of any local government employment or under any non-local government scheme, the number of years specified in column (2) of the Table in paragraph 1(1) is to be reduced, in accordance with the certificate of an actuary, to the extent necessary to ensure that—

(a)the aggregate annual amount of—

(i)the actuarial value, expressed as an annuity payable to him, of those superannuation benefits, and

(ii)the part of his retirement pension attributable to reckonable service before attaining pensionable age, and

(iii)the actuarial value, expressed as an annuity payable to him, of the part of his retiring allowance attributable to such reckonable service, will not exceed two-thirds of his pensionable remuneration, and

(b)the aggregate amount of—

(i)his retiring allowance, and

(ii)any lump sum comprised in those superannuation benefits,

will not exceed one hundred and twenty eightieths of his pensionable remuneration.

(2) For the purposes of this paragraph—

(a)it is to be assumed that the person will, until he attains pensionable age, continue in the same local government employment and on the same scale of remuneration as at the material date,

(b)any reckonable service on or after the material date is to be disregarded,

(c)the material date is the date of, as the case may be, the election under regulation C5 or C6 or the resolution under regulation D7,

(d)a person who, when a scheduled body passed a resolution in respect of him under regulation D7, had not become a pensionable employee in their employment is to be treated as if he had on the date of the resolution become such an employee on the scale of remuneration at which the employment was offered to him, and

(e)regard is to be had to any Inland Revenue advice as to the calculation of the value of the earlier benefits.

Regulations C5, C6

SCHEDULE 5AMOUNT TO BE PAID FOR ADDITIONAL PERIOD

PART ILUMP SUM PAYMENT

1.  The amount to be paid by an employee who has made an election under regulation C3 is

PART IIPERIODICAL PAYMENTS

2.  The amount to be paid by way of additional contributions by an employee who has made an election under regulation C6 is

3.—(1) For the purposes of paragraph 2, in relation to any additional contribution falling to be paid by an employee under regulation C6 his remuneration for the time being is, subject to sub-paragraph (2), the remuneration received by him for the interval (being an interval determined under regulation C6(3)(a)) at the end of which the additional contribution falls to be paid.

(2) For the purposes of sub-paragraph (1), an employee is to be taken to have received for any period for which, while a contract of employment subsisted, he was absent from duty with reduced remuneration or without remuneration, otherwise than by reason of illness or injury, the remuneration that he would have received but for his absence from duty.

Regulation C8

SCHEDULE 6PAYMENT TO AVOID REDUCTION OF RETIRING ALLOWANCE

PART ILUMP SUM PAYMENT

1.  The amount to be paid by an employee who has under regulation C8 elected to make paymentby a lump sum is

2.  The amount is to be paid within one month after the date of the election.

PART IIINSTALMENTS

3.  The amount to be paid by an employee who has under regulation C8 elected to make payment by instalments is the amount he would have been required to pay under Part I if he had on the same date elected to make payment by a lump sum, increased by 5% for each complete year, and pro rata for any fraction of a year, during which, under paragraph 4, instalments are due to be paid.

4.  The employee is to specify in his notice of election the date up to which instalments are to be paid, which may not be—

(a)later than his 65th birthday, or

(b)earlier than the date on which he would attain pensionable age.

5.  Instalments are to be of equal amounts and to be paid at such intervals as the appropriate administering authority may determine, the first instalment being due to be paid not later than one month after the date of the election.

PART IIIADDITlONAL CONTRIBUTIONS

6.  The amount to be paid by way of additional contributions by an employee who has under regulation C8 elected to make payment in that manner is

7.—(1) For the purposes of paragraph 6, in relation to any additional contribution falling to be paid by an employee his remuneration for the time being is, subject to sub-paragraph (2), the remuneration received by him for the interval (being an interval determined under paragraph 9) at the end of which the additional contribution falls to be paid.

(2) For the purposes of sub-paragraph (1), an employee is to be taken to have received for any period for which, while a contract of employment subsisted, he was absent from duty with reduced remuneration or without remuneration, otherwise than by reason of illness or injury, the remuneration that he would have received but for his absence from duty.

8.  An employee is to specify in his notice of election the birthday (“the specified birthday”) up to which additional contributions are to be paid, which may be,

(a)his 65th birthday, or

(b)any earlier birthday falling on the date on which he would attain pensionable age, or

(c)the birthday immediately prior to the date on which he would attain pensionable age.

9.  Additional contributions are to be paid, at such intervals as the appropriate administering authority may determine, from the employee’s birthday next following the date of the election.

PART IVUNCOMPLETED PAYMENTS

10.  This Part applies where an employee has under regulation C8 elected to make payment by instalments or by way of additional contributions and has commenced payment, but before, as the case may be—

(a)the date specified under paragraph 4, or

(b)the birthday specified under paragraph 8,

a relevant event occurs.

11.  The relevant events are—

(a)the discontinuance of payment under regulation C8(11), and

(b)where there has been no such discontinuance of payment—

(i)the employee’s ceasing to hold his employment by reason of permanent ill-health or infirmity of mind or body,

(ii)the death of the employee while in local government employment, or

(iii)the employee’s ceasing to hold his employment for any reason other than that specified in sub-paragraph (i) or (ii) above.

12.  Where the relevant event is the discontinuance of payment under regulation C8(1l), the period of reckonable service in respect of which the election was made is to be treated as having been

each period being expressed in complete years and any fraction of a year.

13.  Where the relevant event is—

(a)the death of the employee, or

(b)his ceasing to hold his employment by reason of permanent ill-health or infirmity of mind or body,

he is to be treated as having completed payment in accordance with Part II or, as the case may be, Part III.

14.—(1) Where the relevant event is the employee’s ceasing to hold his employment in any other circumstance, he may within 3 months of so ceasing elect to pay to the appropriate superannuation fund within the period specified in sub-paragraph (2) the actuarial equivalent of the balance of contributions or instalments outstanding and shall in that event be treated as having completed payment in accordance with Part II or, as the case may be, Part III.

(2) The period for making a payment under sub-paragraph (1) is the period of one month beginning on the date on which the person is notified by the appropriate administering authority of the amount calculated as mentioned in that sub-paragraph.

15.—(1) Where the employee ceases to hold his employment and neither paragraph 13(b) nor paragraph 14 applies he is, unless sub-paragraph (2) applies, to be treated as if paragraph 12 (discontinuance of payment) had applied.

(2) This sub-paragraph applies where the employee—

(a)elected under regulation C8 to make payment by way of additional contributions, and

(b)has within 12 months after ceasing to hold his employment again entered local government employment, without having—

(i)become entitled in relation to the first employment to the payment of any benefit, or

(ii)elected to receive a payment under regulation C12(4) (return of contributions), or

(iii)made a request for earlier payment under regulation C12(7)(b), and

(c)has not made an election for the purposes of regulation E2(9)(c) (retention of right to preserved benefits), and

(d)within 3 months after his again entering local government employment pays to his new employing authority an amount equal to any additional contributions that would have been payable if he had not ceased to hold the first employment.

(3) Where sub-paragraph (2) applies, the election under regulation C8 continues to have effect as if the relevant event had not occurred.

Regulation C9(4)

SCHEDULE 7OUTSTANDING PAYMENTS UNDER 1974 REGULATIONS

1.  Paragraphs 2 to 7 apply while any amount is outstanding in respect of payments under regulation D6, D7 or D8 of the l974 Regulations which remain payable by virtue of regulation C9(4) of these Regulations.

2.  Compound interest, calculated at the rate of 3% per annum with half-yearly rests, is payable on the amount for the time being outstanding.

3.  If a benefit calculated by reference to the length of the employee’s reckonable service becomes payable to or in respect of him, the amount outstanding is to be recovered by deducting it from any amount payable by way of benefits.

4.  If benefits become payable to or in respect of the employee under these Regulations but none of them is calculated by reference to the length of his reckonable service, the amount outstanding ceases to be payable.

5.  Subject to paragraphs 6 and 7, if the employee ceases to hold his employment and no benefit becomes payable to him, the amount then outstanding ceases to be payable.

6.  If the employee becomes entitled to preserved benefits and does not elect to receive a payment under regulation C12(4) (return of contributions), he may, by notice in writing given to his employing authority within 3 months after becoming entitled to those benefits, elect to pay in a lump sum to that authority the amount outstanding.

7.—(1) If the employee ceases to hold his employment and—

(a)no benefit becomes payable to him, and

(b)he has paid all the instalments due up to the date when he ceased to hold his employment, and

(c)within 12 months after that date he has again entered local government employment, without having—

(i)elected to receive a payment under regulation C12(4), or

(ii)made a request for earlier payment under regulation C12(7)(b),

he may, subject to sub-paragraphs (2) and (3), pay the amount outstanding as if he had not ceased to hold the first employment.

(2) The amount outstanding is payable to the new employing authority or, where there are more than one, among them in the proportions which the employee’s remuneration in each of the employments bear to the aggregate of his remuneration in all the employments.

(3) An apportionment under sub-paragraph (2) takes effect as if the employee had entered all the employments to which it relates on the date on which he entered the first of them, and any payments made by him under this paragraph before the apportionment are to be adjusted accordingly.

Regulation C16

SCHEDULE 8LIMITATION ON PAYMENT BY WAY OF ADDITIONAL CONTRIBUTIONS OR BY INSTALMENTS

1.  If the amount payable by the pensionable employee by way of additional contributions in pursuance of a notice given under regulation D10 or D10A of the 1974 Regulations or an election made under regulation C6 or C8, or the amount of an instalment payable in pursuance of an election made under regulation C8, as the.case may be, when aggregated with—

(a)any other amounts payable by him under any of those regulations in addition to the first-mentioned amount; and

(b)the amount payable by him by way of contributions under regulation C2,

exceeds 15% of his remuneration, he shall satisfy his liability in respect of the excess over 15% by payment in a lump sum of a sum—

(i)in the case of an election under regulation C6 or, in the case of a male employee, an election under regulation C8 to pay by the method described in regulation C8(5)(c), determined in accordance with the formula in paragraph 2; and

(ii)in any other case, calculated by the Government Actuary to represent the capital value of the excess.

2.  The formula mentioned in paragraph 1 is—

3.  In paragraph 2 “pensionable age” means the earliest age at which, if the employee were to remain a pensionable employee without any break of service, he would become entitled by virtue of regulation E2(1)(a) or (b)(ii), if he then ceased to be employed, to a retirement pension or, if at the birthday next following an election under regulation C8(5)(c) he satisfies the requirements of regulation E2(1)(a), the age at which he has indicated he intends to retire.

Regulation D5

SCHEDULE 9UNCOMPLETED PAYMENT OF ADDITIONAL CONTRIBUTIONS

1.  This Schedule applies where an employee has made an election under regulation C6 (periodical payments to increase reckonable service) and has commenced payment, but before he attains pensionable age a relevant event occurs and any payment made to him under regulation C12 (return of contributions) does not include the amount already paid by him under regulation C6(3).

2.  The relevant events are—

(a)the discontinuance of payment under regulation C6(5), and

(b)where there has been no such discontinuance of payment—

(i)the employee’s ceasing to hold his employment, and

(ii)the death of the employee while in local government employment.

3.  Where the relevant event is the discontinuance of payment under regulation C6(5), the employee is entitled to reckon as reckonable service an additional period of

each period being expressed in complete years and any fraction of a year.

4.  Where the relevant event is—

(a)the death of the employee, or

(b)his ceasing to hold his employment by reason of permanent ill-health or infirmity of mind or body,

he is to be treated as having completed payment in accordance with regulation C6(3).

5.—(1) Where the relevant event is the employee’s ceasing to hold his employment, and—

(a)he then, by virtue of the satisfaction of condition (a) or (b) in regulation E2(4), becomes entitled to benefits under regulation E2(1)(b)(iii), and

(b)he gives notice in writing for the purpose to the appropriate administering authority within the period of 3 months beginning on the day after the last day of his employment,

he may pay to the appropriate superannuation fund within the period specified in sub-paragraph (2) the actuarial equivalent of the balance of his contributions due, and shall in that event be treated as having completed payment in accordance with regulation C6(3).

(2) The period for making a payment under sub-paragraph (1) is the period of one month beginning on the date on which the person is notified by the appropriate administering authority of the amount calculated as mentioned in that sub-paragraph.

6.—(1) Where the relevant event is the employee’s ceasing to hold his employment and neither paragraph 4(b) nor paragraph 5 applies, he is, unless sub-paragraph (2) applies, to be treated as if paragraph 3 (discontinuance of payment) had applied.

(2) This sub-paragraph applies where the employee—

(a)has within 12 months after ceasing to hold his employment again entered local government employment, without having—

(i)become entitled in relation to the first employment to the payment of any benefit, or

(ii)received any payment under regulation C12(4) (return of contributions) which includes the amount already paid by him under regulation C6(3), or

(iii)made a request for earlier payment under regulation C12(7)(b), and

(b)has not made an election for the purposes of regulation E2(9)(c) (retention of right to preserved benefits), and

(c)within 3 months after his again entering local government employment pays to his new employing authority an amount equal to any additional contributions that would have been payable if he had not ceased to hold the first employment.

(3) Where sub-paragraph (2) applies, the election under regulation C6 continues to have effect as if the relevant event had not occurred.

Regulation E3(12)

SCHEDULE 10ADDITIONAL RECKONABLE SERVICE FOR ILL-HEALTH

1.  For the purposes of this Schedule—

(a)a person’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 provision of a local Act scheme which has the same effect, and

(b)a person’s relevant reckonable service is the total of—

(i)any relevant service which became reckonable service by virtue of regulation D1 of the 1974 Regulations, and

(ii)any subsequent reckonable service except additional periods purchased by lump sum or additional contributions.

2.—(1) Subject to sub-paragraph (2) and paragraphs 3 ad 4, the additional period which a person is to be treated as being entitled to reckon as reckonable service under regulation E3(12) is the period specified in column (2) of the Table below appropriate to the length of the person’s relevant reckonable service specified in column (1) of that Table.

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

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

(b)until his reckonable service amounted to 40 years,

whichever would have occurred first.

3.—(1) Subject to paragraph 4, this paragraph applies where, before entering the employment which he has ceased to hold, the person had, on ceasing to hold a previous employment, become entitled to benefits under regulation E2(1)(b)(i) or under regulation 5(1)(a) of the Benefits Regulations.

(2) Where this paragraph applies, the person’s relevant reckonable service is to be treated for the purposes of paragraph 2 as having included A − B, where—

• A is the length of his relevant reckonable service or, as the case may be, his relevant service, in relation to the previous employment, and

• B is the length of the additional period which became reckonable in relation to the previous employment by virtue of regulation E3(12) or, as the case may be, the period by which his relevant service in relation to that employment is by virtue of sub-paragraph (3) to be deemed to have been increased.

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

(a)where the person’s retirement pension in respect of the previous employment was calculated under regulation 5(3)(a) of the Benefits Regulations, his relevant service shall be deemed to have been increased by the period by which its length fell short of 20 years, and

(b)where that pension was calculated under regulation 5(3)(b) of the Benefits Regulations, his relevant service shall be deemed to have been increased by the period by which it would have been increased if he had continued in the previous employment until he reached the age of 65 years.

4.—(1) This paragraph applies where—

(a)the person either—

(i)was a contributory employee immediately before 16th May 1974 and became a pensionable employee on that day, or

(ii)became a pensionable employee within 12 months after having ceased to be a contributory employee, and

(b)the length of his relevant reckonable service is not less than 10 years, and

(c)notice that this paragraph is to apply is given in accordance with sub-paragraph (3) or (4).

(2) Where this paragraph applies, paragraphs 2 and 3 do not apply and the additional period is the shorter of—

(a)the period by which the person’s reckonable service would have been increased if he had continued in the employment which he has ceased to hold until he attained the age of 65 years, and

(b)the period by which his reckonable service falls short of 20 years.

(3) Subject to sub-paragraph (4), notice that this paragraph is to apply must be given by the person to the appropriate administering authority, in writing, within one month after ceasing to hold his employment or such longer period as the authority may allow.

(4) If the person dies within the period allowed for giving notice without having given it, notice may be given—

(a)if the person was a man and has left a widow, by her, or

(b)if the person was a man and has not left a widow, or his widow has died without giving notice, by his executors, or

(c)if the person was a woman, by her executors,

within 6 months after the date of the person’s death, or such longer period as the authority may allow.

Regulation E3(14)

SCHEDULE 11REDUCTION OF BENEFITS ON EARLY PAYMENT

Where regulation E3(14) applies, benefits are reduced by the percentage shown in columns (2) and (3) of the Table below for the retirement pension for males and females respectively and column (4) of the Table for the retiring allowance opposite the period set out in column (1), being the period remaining from the date from which the person became entitled to receive benefits to the attainment of pensionable age; and where the period remaining is not an exact number of years the necessary interpolations are to be made in the Table.

Regulation E19

SCHEDULE 12MODIFICATIONS TO PART E WHERE NO RIGHT TO RETIRING ALLOWANCE ETC.

PART I

1.  In regulation E2(1), the words “and a lump sum retiring allowance” shall be deleted.

2.  In regulation E3—

(a)in paragraph (1), for the words “one eightieth” there shall be substituted “one sixtieth”; and

(b)paragraphs (2) to (11) shall be deleted.

3.  In regulation E11—

(a)in paragraph (1)(b), after the word “pension” there shall be inserted the words “, other than a pension under regulation E2(2),”; and

(b)paragraph (11) shall be deleted.

4.  In regulation E17, paragraph (6)(a)(iii) and (v) shall be deleted.

PART II

5.  In regulation E3, paragraphs (4) to (11) shall be deleted.

6.  In regulation E11, paragraph (10) shall be deleted.

PART III

7.  In regulation E6, for paragraphs (2) to (4) there shall be substituted—

“(2) Subject to paragraphs (3) and (5), the annual rate of a widow’s long-term pension is the aggregate of—

(a)one four hundred and eightieth of her husband’s pensionable remuneration multiplied by the length in years of his reckonable service before 1st April 1972, and

(b)one one hundred and sixtieth of his pensionable remuneration multiplied by the length in years of his reckonable service after 31st March 1972, and

(c)in the case of a person to whom regulation E2(1)(b)(i) applied or who dies in employment in which he was a pensionable employee, the amount ascertained by multiplying one one hundred and sixtieth of his pensionable remuneration by the length in years of the additional period of reckonable service determined in accordance with Schedule 10 or, in the case of a person who dies in employment as aforesaid, an additional period of reckonable service determined as if at the date of his death he were a person to whom regulation E2(1)(b)(i) applied.

(3) For the purpose of calculating the rate of the pension under paragraph (2), no account shall be taken of reckonable service before attaining the age of 60 years beyond a total of 40 years, and any reckonable service which is accordingly to be left out of account shall be taken from the beginning of the period of reckonable service.”.

8.  In regulation E8—

(a)in paragraph (1), sub-paragraph (b) and the words “and then a children’s long-term pension” shall be deleted;

(b)paragraph (2) shall be deleted; and

(c)in paragraph (4), the words “or (b) or paragraph (2)” shall be deleted.

9.  In regulation E11—

(a)in paragraph (1)(b), the words “in relation to which this paragraph applies” shall be deleted;

(b)paragraph (2) shall be deleted;

(c)in paragraphs (4)(b) and (5)(a), for the words “and paragraph (2)(b) apply” there shall be substituted “applies”;

(d)in paragraph (5)(b), for the words “and paragraph (2)(a) apply” there shall be substituted “applies”;

(e)in paragraph (5), for the words from “the greater of” to the end of the paragraph there shall be substituted “the greater of

”;

(f)paragraphs (6), (7) and (9) shall be deleted;

(g)in paragraph (12), the words “Subject to paragraph (13),” shall be deleted; and

(h)paragraph (13) shall be deleted.

Regulation E20

SCHEDULE 13SURRENDER OF PART OF RETIREMENT PENSION

PART ILIMITS ON AMOUNT SURRENDERED

1.—(1) The part of the retirement pension surrendered on any occasion—

(a)must be an exact number of pounds, and

(b)must secure for the beneficiary a pension of at least £39 per annum.

(2) The surrendered part must not, together with any parts previously surrendered—

(a)exceed the lower of—

(i)the amount which would result in the reduction of the retirement pension to less than the rate of the pension which would become payable to the beneficiary under this Schedule, or

(ii)one third of the retirement pension, or where regulation E14 (former teachers) applies one third of the retirement pension receivable after reduction under that regulation, or

(b)be of an amount which would result in the reduction of the retirement pension to less than any minimum rate of equivalent pension benefits applicable under the Insurance Acts, or

(c)where the person’s local government employment is or was contracted-out employment, be of an amount which would result in the retirement pension—

(i)becoming payable at an annual rate less than that obtained by multiplying one eightieth of his pensionable remuneration by the length in years of the whole period of his service in contracted-out employment, or

(ii)being, but for regulation E1(3), less than his guaranteed minimum if any.

2.  Where the person falls within regulation E20(2)(b), references in paragraph 1 to the retirement pension are references to the retirement pension which would become payable if he were to cease to hold his employment on the day on which the surrender takes effect.

PART IIPROCEDURE

3.  Upon a person’s first becoming eligible to notify his wish to surrender part of his retirement pension the appropriate administering authority shall send him a notice stating that provision has been made by these Regulations for the surrender of part of a retirement pension to a spouse or dependant and informing the person to whom the notice is addressed that he may on application to the authority obtain further information on the subject.

4.  Where a person wishes to make a surrender he may—

(a)in the case of a pensionable employee 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 pensionable employee 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;

notify his desire 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:

• Provided that where the appropriate administering authority are satisfied that it has not been reasonably practicable for a retiring employee to notify his desire to surrender a part of a retirement pension within the time limit imposed by sub-paragraph (a) owing to circumstances beyond his control, they may at their discretion extend that limit to a date not more than 6 months after the date on which he ceases to be employed.

5.  On receipt by the appropriate administering authority of a notification given by a person under paragraph 4, that authority shall—

(a)forthwith arrange for the person to be examined 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, the person is in good health, regard being had to his age; and if the opinion stated in such report is 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 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; 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)in respect of a beneficiary who is the person’s spouse, a birth certificate and a marriage certificate;

(iii)in respect of a beneficiary who is a dependant, a birth certificate and such evidence as may be appropriate to prove dependency,

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

Provided that, if for any reason a birth or marriage certificate cannot be supplied, the authority may accept such other evidence of birth or marriage as they think fit in order to determine the age or the question of marriage of the person concerned, as the case may be.

6.  Any fee payable to a practitioner in respect of an examination and report under paragraph 5 shall be paid by the person examined at the time of the examination.

7.—(1) Subject to the provisions of this Schedule, unless the appropriate administering authority are of the opinion, on consideration of a report obtained by them under paragraph 5, that the person to whom the report relates is not in good health or they are of the opinion that the evidence produced in regard to marriage or dependency is not satisfactory, they shall 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 shall 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 E20(4):

Provided that 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.

(2) Notwithstanding anything in sub-paragraph (1), the appropriate administering authority shall, if they are dissatisfied with the evidence of marriage, but are nevertheless satisfied on the evidence already before them or after making such further enquiries as they think necessary that a person named as spouse in the notification given under paragraph 4 is a dependant of the person who gave the notification, treat the notification as if the person named therein as spouse had been named as a dependant of the person giving the notification.

(3) As soon as is reasonably practicable after coming to a decision in regard to a notification given by a person, the appropriate administering authority shall notify him that they have allowed a surrender in favour of the person named in his notification or that they have decided not to allow a surrender of any part of the retirement pension, as the case may be, and if the appropriate administering authority have allowed a surrender they shall also furnish him with a statement as to the amount of the pension to which the beneficiary may become entitled after his death and, if the person who gave the notification under paragraph 4 is a retiring employee, with a statement as to the amount of the reduced retirement pension to which he is entitled.

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

(5) A notification sent to an employee in pursuance of sub-paragraph (3) shall, if it has been posted in a prepaid envelope addressed to the employee by the appropriate administering authority, be deemed to have been received by the employee at the time at which a letter would be delivered in the ordinary course of post.

8.  A person who has given a notification of his desire to surrender a part of his retirement pension under paragraph 4 may cancel or amend the 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 at any time before he has received notification from the authority that his surrender has been allowed.

9.—(1) A notification given by a person under paragraph 4 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 as aforesaid, 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 SURRENDERLOCAL GOVERNMENT SUPERANNUATION (SCOTLAND) REGULATIONS(Regulation E20 and Schedule 13)

surrender of part of retirement pension

Regulations F2(1) and K1

SCHEDULE 14WOMEN'S SERVICES

1.  Member of Queen Alexandra’s Royal Naval Nursing Service or any reserve thereof.

2.  Member of the Women’s Royal Naval Service.

3.  Woman medical or dental practitioner serving in the Royal Navy or any Naval reserve.

4.  Member of Queen Alexandra’s Imperial Military Nursing Service or any reserve thereof or of Queen Alexandra’s Royal Army Nursing Corps or any reserve thereof.

5.  Member of the Territorial Army Nursing Service or any reserve thereof.

6.  Member of the Auxiliary Territorial Service.

7.  Woman employed with the Royal Army Medical Corps or the Army Dental Corps with relative rank as an officer.

8.  Member of Princess Mary’s Royal Air Force Nursing Service or any reserve thereof.

9.  Member of the Women’s Auxiliary Air Force.

10.  Woman employed with the Medical Branch or the Dental Branch of the Royal Air Force with relative rank as an officer.

11.  Member of the Voluntary Aid Detachments employed under the Admiralty, Army Council or Air Council.

Regulations F6 and J3(3)

SCHEDULE 15PUBLIC SERVICE SCHEMES

PART I

1.  Regulations from time to time in force under the Police Pensions Act 1948(27) or the Police Pensions Act 1976(28).

2.  Orders and Regulations from time to time in force under the Constabulary Acts (Northern Ireland) 1922 to 1949(29) or section 25 of the Police Act (Northern Ireland) 1970(30).

3.  The Firemen’s Pension Scheme brought into operation under section 26 of the Fire Services Act 1947(31), as in force from time to time.

4.  Orders from time to time in force under section 10 of the Fire Services (Amendment) Act (Northern Ireland) 1950(32) (“the Act of 1950”) or section 17 of the Fire Services Act (Northern Ireland) 1969(33) (“the Act of 1969”), and schemes from time to time in force under section 13 of the Act of 1950 or section 26 of the Act of 1969.

PART II

5.  The Teachers (Superannuation) Act 1925(34) and Rules from time to time in force under that Act, a Teachers' Superannuation Scheme within the meaning of section 145(47) of the Education Scotland) Act 1962(35), and Regulations from time to time in force under section 102 of that Act or under the Teachers' Superannuation Act 1965(36), the Teachers' Superannuation Act 1967(37), the Teachers' Superannuation (Scotland) Act 1968(38) or section 9 of the Act of 1972.

6.  A 1923 Act scheme within the meaning of the Teachers' (Superannuation) Act (Northern Ireland) 1950(39), and Regulations from time to time in force under the Teachers' Superannuation Acts (Northern Ireland) 1950 to 1967(40) or article 11 of the Superannuation (Northern Ireland) Order 1972(41).

PART III

7.  Provisions of or under the Local Government Superannuation Act 1937(42), the Act of 1953, section 7 of the Act of 1972, or a local Act scheme, as in force from time to time, being provisions relating to the payment of pensions, allowances or gratuities by local authorities or other bodies in England.

8.  Regulations from time to time in force under section 67 of the National Health Service Act 1946(43), section 66 of the National Health Service (Scotland) Act 1947(44) or section 10 of the Act of 1972.

9.  Regulations from time to time in force under section 61 of the Health Services (Northern Ireland) Act 1948(45) or article 12 of the Superannuation (Northern Ireland) Order 1972.

10.  Regulations from time to time in force under section 2 of the Local Government (Superannuation) Act (Northern Ireland) 1950(46), or article 9 of the Superannuation (Northern Ireland) Order 1972.

Regulations F6(6), J2 to J4, J8, J14 and Q2

SCHEDULE 16CALCULATION OF TRANSFER VALUES

PART I

1.  The transfer value payable under regulation J2, J3(1), J14 or Q2(2) in respect of any person is an amount equal to—

(1) the aggregate of the sums calculated in accordance with paragraph 2 below in respect of his accrued pension, accrued retiring allowance and, if the person is a man, his accrued widow’s pension, less—

(a)a sum (calculated in accordance with paragraph 2 below) in respect of accrued modification, and where a request has been received under regulation J2(3) his guaranteed minimum pension;

(b)any additional contributory payments remaining unpaid when he ceased to be employed in his local government employment, and

(c)in the case of a person in relation to whom when he ceases to be employed in local government employment and

(i)a contributions equivalent premium is paid under section 42 of the Pensions Act, or

(ii)a limited revaluation premium is paid under section 45 of that Act otherwise than by the scheme managers of his approved non-local government scheme,

a sum equal to the amount of that premium,

together with—

(2) compound interest calculated in accordance with regulation J7 in respect of the period beginning immediately after the date on which the person ceased to be employed in his local government employment and ending with the date on which the transfer value is paid (but no interest is to be included in the transfer value if that period is less than 6 months).

2.—(1) The sums mentioned in paragraph 1 shall be calculated as follows—

(a)the accrued pension shall be multiplied by the pension factor,

(b)the accrued retiring allowance shall be multiplied by the retiring allowance factor,

(c)the accrued modification shall be multiplied by the modification factor, and

(d)the guaranteed minimum pension shall be multiplied by the guaranteed minimum pension factor,

such factors being the factors in the appropriate Table specified in sub-paragraph (3) in relation to the person’s age at the date when he ceased to be employed in local government employment.

(2) The sum in respect of accrued widow’s pension shall be calculated by multiplying the accrued widow’s pension by 4 in the case of a transfer value payable under regulation J2 or J3(1), and by 2.4 in the case of a transfer value payable under regulation J14 or Q2(2).

(3) For the purposes of sub-paragraph (1) the appropriate Table shall be—

(a)in the case of a transfer value payable under regulation J2 or J3(1) the relevant Table in Part II, and

(b)in the case of a transfer value payable under regulation J14 or Q2(2) the relevant Table in Part III.

(4) The guaranteed minimum pension shall be the guaranteed minimum calculated in accordance with section 35 of the Pensions Act.

3.  In this Schedule—

• “accrued pension” means the annual retirement pension (however named) to which, having regard to regulations E1(3) and E32(2) and apart from any reduction falling to be made in that pension in connection with a retirement pension under section 30 of the Insurance Act or section 28 of the Social Security Act 1975 or graduated retirement benefit under section 36 of the Insurance Act, the person would have become entitled if, on the date when he ceased to be employed in his local government employment—

  (a)

  he had attained the age of 65 years; and

  (b)

  (i)

  where the person ceased to be employed in that employment before 31st March 1972, he had complied with any requirement as to a minimum period of qualifying service and, notwithstanding anything in any enactment—

  (A)

  if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that pension his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits Regulations; and

  (B)

  his entitlement to that pension had been calculated by reference to completed years and completed days;

  (ii)

  where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service; and

  (c)

  he had completed any additional contributory payments;

• “accrued retiring allowance” means the lump sum retiring allowance (however named) to which the person would have become entitled if, on the date when he ceased to be employed in his local government employment—

  (a)

  he had attained the age of 65 years, and

  (b)

  (i)

  where the person ceased to be employed in that employment before 31st March 1972, he had complied with any requirement as to a minimum period of qualifying service and, notwithstanding anything in any enactment—

  (A)

  if in that employment he was a contributory employee within the meaning of the Act of 1937, for the purpose of calculating the amount of that allowance his service had been calculated in accordance with regulation 4(1) to (1B) of the Benefits Regulations; and

  (B)

  his entitlement to that allowance had been calculated by reference to completed years and completed days;

  (ii)

  where the person ceased to be employed in that employment on or after 31st March 1972, he had been entitled to reckon an aggregate of not less than 5 years' reckonable service and qualifying service; and

  (c)

  he had completed any additional contributory payments; and

  (d)

  if the person is a man, he had been married and he and his wife had not been judicially separated;

• “accrued widow’s pension” means the annual widow’s pension (however named) which, after any initial period during which it might not have been payable, would have been payable in respect of the person if, on the date when he ceased to be employed in his local government employment—

  (a)

  he had been married and he and his wife had not been judicially separated; and

  (b)

  by virtue of his having attained the age of 65 years, he had been in receipt of a pension equivalent to his accrued pension; and

  (c)

  he had died;

• “accrued modification” means the amount by which the accrued pension would be reduced in connection with retirement pension under section 30 of the Insurance Act or section 28 of the Social Security Act 1975 or graduated retirement benefit under section 36 of the Insurance Act.

PART II

PART III

PART IV

1.  The transfer value payable under regulation Q2(1) in respect of a person is to be calculated in accordance with the following formula if the service he is entitled to reckon in his new local government employment which he was also entitled to reckon in his previous local government employment exceeds 182 days—

2.  In any case not falling within paragraph 1 the transfer value payable under regulation Q2(1) in respect of a person is to be calculated in accordance with the following formula—

• T = 2 × C, where—

• T is the amount of the transfer value; and

• C is the amount of the employer’s contributions in relation to the reckonable service,

but the amount of the transfer value shall be zero if the person becomes employed in his new local government employment on or after 1st October 1981.

3.  In ascertaining for the purposes of this Part the length of reckonable service which a person is or was entitled to reckon, the reckonable service is to count at the length at which it would reckon in calculating the amount of a retirement pension under regulation E2(1)(b)(ii), except that—

(a)any period of reckonable service which was reckonable under section 15 of the Act of 1937 (which related to teachers) is to be ignored;

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

(c)if additional contributions under regulation D10 of the 1974 Regulations (or any corresponding provision of an earlier enactment) or regulation C6 have been paid but not all those for which he was originally liable, the apportionment formula in paragraph 3 of Schedule 9 is to be applied.

4.  Subject to paragraph 5, in ascertaining for the purposes of this Part the annual rate of a persons remuneration at the date on which he ceased to be employed in his previous local government employment—

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

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

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

(d)if the annual rate of his remuneration is retrospectively altered as a result of a pay award promulgated by a national joint council or other negotiating body on or before the date on which he ceased to be employed, the annual rate of his remuneration is to be based on the retrospective pay award;

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

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

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

5.  If—

(a)during the 13 years ending on the cessation of the person’s previous local government employment his remuneration was reduced; and

(b)his employing authority certified under regulation E24 that the reduction was in consequence of a material change in circumstances; and

(c)his annual rate of remuneration immediately before the reduction, ascertained on similar principles to those in paragraph 4, was greater than the annual rate of remuneration on the date on which he ceased to be employed in his previous local government employment,

it is to be assumed for the purposes of this Part that he was earning at the higher rate at the date on which he ceased to be employed in his previous local government employment.

6.  Where the person has made a payment to his new fund authority under regulation D1(2) or J9(3) of the 1974 Regulations or H8(3) of these Regulations, the transfer value payable under regulation Q2(1) is to be reduced by an amount equal to that payment.

7.  Compound interest calculated in accordance with regulation J7 is to be paid on the transfer value payable under regulation Q2(1) for the period beginning with the date on which the person ceased to be employed in his previous local government employment and ending on the date on which the transfer value is paid (but no interest is to be paid if that period is less than 6 months).

PART V

1.  The additional transfer value payable under regulation J3(2) and the transfer value that may be accepted where regulation J8(5) applies is in each case (A × B × C) + D, where—

• A is the period—

  (a)

  which the person would have been entitled to reckon as reckonable service by virtue of regulation F6(1)(a) or (b), or

  (b)

  which would have been taken into account in calculating additional benefits in accordance with regulation F6(12), or

  (c)

  which he would have been entitled to reckon under the war service provisions of the public service scheme,

  as the case may be;

• B is the figure in column 2 or 3 of the Table below appropriate to the person’s age on 1st April 1978 and sex;

• C is either—

  (a)

  the annual rate of the person’s pensionable remuneration at 1st April 1978, or

  (b)

  if on that date he was entitled to a pension, the amount of remuneration taken into account in calculating the pension, increased by the annual amount (if any) by which an annual pension at a rate equal to that amount of remuneration, and beginning on the same date as the person’s pension, would by 1st April 1978 have been increased under the Pensions (Increase) Act 1971(47); and

• D is compound interest on (A X B × C), calculated, in the case of an additional transfer value payable under regulation J4(2), in accordance with regulation J7 in respect of the period beginning on 1st April 1978 and ending with the date on which the transfer or additional transfer value is paid.

2.  For the purposes of paragraph 1, the annual rate of a person’s pensionable remuneration shall be ascertained in accordance with the provisions of paragraphs 4 and 5 of Part IV of this Schedule.

Regulation J9(1)(a)

SCHEDULE 17CALCULATION OF RECKONABLE SERVICE TO BE CREDITED UNDER REGULATION J9(1)(a)

1.  Subject to the provisions of this Schedule, the period which a person is entitled to reckon as reckonable service by virtue of regulation J9(1)(a) is a period equal to the period of reckonable service which would enable the fund authority to pay under regulation J2 a transfer value (calculated in accordance with Schedule 16)—

(a)of the amount which that authority accepted in respect of him under regulation 18, or

(b)where—

(i)the person became employed in his local government employment after 4th April 1983, and

(ii)a limited revaluation premium was paid under section 45 of the Pensions Act and has been repaid to the fund authority by the Secretary of State,

of the total of the amount mentioned in sub-paragraph (a) and the amount of the premium.

2.  For the purposes of paragraph 1 above—

(1) in the case of a person who was subject in his non-local government employment to a statutory scheme or to any other scheme which is for the time being specified by the Secretary of State as a scheme which is to be treated as a statutory scheme for the purposes of this Schedule—

(a)the calculation of the period he is entitled to reckon as reckonable service is to be made by reference to his age, and to the rate of his pensionable pay, used in the calculation of the transfer value received,

(b)where in that calculation an amount of a person’s pay has been disregarded in connection with a retirement pension under section 30 of the Insurance Act or section 28 of the Social Security Act 1975, the pensionable pay is to be increased by that amount, and

(c)any sum representing interest included in the transfer value accepted is to be ignored;

(2) in the case of a person who was subject in his non-local government employment to any other scheme—

(a)if he became employed in his local government employment before 8th May 1975—

(i)the calculation of the period he is entitled to reckon as reckonable service is to be made by reference to his age, and the annual rate of his remuneration, on 1st April 1972, or, if later, on the date when he became employed in his local government employment (here referred to as the “relevant date”); and

(ii)the sum to be used as the amount of the transfer value shall be the sum notified to the fund authority by the scheme managers as the sum which the fund authority would have received in respect of the person had the transfer value been calculated and paid on the relevant date;

(b)if he became employed in his local government employment on or after 8th May 1975 the calculation of the period he is entitled to reckon as reckonable service is to be made by reference to his age, and the annual rate of his remuneration, on the date when he became employed in his local government employment or, if the transfer value in respect of him is received by the fund authority more than one year after he became employed in his local government employment, on the date on which the transfer value is received;

(c)any sum representing interest which is included in the transfer value accepted is to be taken into account;

(3) the accrued pension in respect of the period last mentioned in paragraph 1 above shall be deemed—

(a)where the person is such a person as is mentioned in regulation J12(1), to be subject to that paragraph, and paragraph (2) of that regulation shall have effect for this purpose as if at the end there were added the following sub-paragraph:—

“(c)at the end of regulation F7(2) of the 1974 Regulations, there had been added the words “and a proportionate amount in respect of part of a year of such service”.”;

(b)where the person is such a person as is mentioned in regulation J12(3), to be subject to that paragraph;

(4) (a) where the pensionable pay mentioned in sub-paragraph (1) above relates to a period of part-time employment, the pensionable pay for that period shall be deemed to be the pensionable pay by reference to which the transfer value accepted would have been calculated had the person during that period been in a single comparable whole-time employment;

(b)where the remuneration mentioned in sub-paragraph (2) above relates to part-time employment, the annual rate of remuneration on the relevant date shall be deemed to be the annual rate of remuneration notified to the fund authority by his local government employer as the remuneration which would have been paid in respect of a single comparable whole-time employment;

(5) in the case of a person whose non-local government employment was not contracted-out employment, the calculation of the period he is entitled to reckon as reckonable service shall be made by reference to the transfer value which would have been payable under regulation J2 if Schedule 16 contained no reference to guaranteed minimum pension.

Regulation J14

SCHEDULE 18FUND APPORTIONMENT WHERE 100 OR MORE TRANSFER THEIR PENSION RIGHTS UNDER REGULATION J14

PART I

1.  This Part of this Schedule applies where the fund is to be apportioned under regulation J14(5) and all of the transfers under the transfer scheme are to take place on the same day.

2.  The appropriate administering authority shall obtain a report from the fund’s actuary specifying the apportionment fraction to be applied in apportioning the fund together with details of the calculation.

3.  The apportionment fraction is—

4.  The relevant date is the date on which those transferring their pension rights become subject to the approved non-local government scheme.

5.  The accrued actuarial liabilities of the fund are the actual and potential liabilities of the fund in connection with any service or employment before the relevant date and, for this purpose, it is to be assumed that the liabilities which relate to those transferring their pension rights remain liabilities of the fund notwithstanding regulation J14(6).

6.  The transferable assets of the fund are the assets which belong to the fund at the relevant date.

7.  The values of items D and E are to be agreed by the actuary and the scheme managers of the approved non-local government scheme or, if they are unable to agree, they are to be determined by an actuary appointed by the Secretary of State.

8.  Subject to paragraph 7 above, valuations are to be made by the actuary.

9.  Where more than one approved non-local government scheme is involved, separate apportionment fractions shall be specified in the actuary’s report for the different schemes.

10.  When the appropriate administering authority receive the actuary’s report they shall provide the scheme managers of the approved non-local government scheme with a copy of it.

11.  The value of the share of the fund to which the scheme managers of the approved non-local government scheme are entitled shall be calculated in accordance with the formula—

12.  The apportionment date is the date specified as such by the appropriate administering authority in a notice given to the scheme managers of the approved non-local government scheme.

13.  Except with the agreement of the scheme managers of the approved non-local government scheme, the apportionment date shall not be later than six months after the date on which the appropriate administering authority receive the actuary’s report.

14.  Subject to paragraphs 15 to 17 below, immediately after the apportionment date the appropriate administering authority shall transfer to the scheme managers of the approved non-local government scheme assets of the fund of a value at the apportionment date equal to the value of the scheme managers' share of the fund and, unless the appropriate administering authority and the scheme managers otherwise agree, the composition of the assets to be transferred shall so far as possible reflect the composition of the transferable assets which still belong to the fund at the apportionment date and any other assets which belong to the fund at that date which represent in any form, or have accrued from, any transferable asset.

15.  The appropriate administering authority and the scheme managers may agree to transfer assets in advance of the apportionment date.

16.  The value of an advance under paragraph 15 shall not exceed such sum as the fund’s actuary may specify as appropriate in the circumstances.

17.  Where an advance is made under paragraph 15, the appropriate administering authority’s liability under paragraphs 11 and 14 shall be reduced by an amount equal to—

18.  The employing authority shall bear the costs of apportioning the fund or, if there is more than one employing authority involved, each shall bear such part of those costs as the fund’s actuary determines.

19.  The appropriate administering authority shall keep their accounts in a form which enables the calculations required in apportioning the fund to be made, and they shall also provide the fund’s actuary with any information he requires in connection with the apportionment.

PART II

20.  This Part of this Schedule applies where the fund is to be apportioned under regulation J14(5) and the transfers under the transfer scheme are to take place on different days.

21.  The provisions of Part I of this Schedule are to apply to the apportionment as if the transfers had occurred on a single date, but suitable adjustments are to be made to the sums payable to the scheme managers to reflect the fact that the transfers take place on different dates.

22.  Any adjustments to be made under paragraph 21 shall be determined by the fund’s actuary, subject to the agreement of the appropriate administering authority and the scheme managers or, if they are unable to agree, by an actuary appointed by the Secretary of State.

Regulations P2(1) and Q2(6)

SCHEDULE 19FUND APPORTIONMENT FOR CHANGES OF FUND WITHIN LOCAL GOVERNMENT

PART I

1.  This Part of this Schedule applies where the fund is to be apportioned under regulation Q2(6) and all of the persons who are changing funds do so on the same day.

2.  The previous fund authority shall obtain a report from an actuary specifying the apportionment fraction to be applied in apportioning the fund together with details of the calculation.

3.  The apportionment fraction is—

4.  The relevant date is the date on which the change of fund occurs.

5.  The accrued actuarial liabilities of the fund are the actual and potential liabilities of the fund in connection with any service or employment before the relevant date and, for this purpose, it is to be assumed that the liabilities which relate to those changing funds remain liabilities of the fund.

6.  The transferable assets of the fund are the assets which belong to the fund at the relevant date.

7.  The values of items D and E are to be agreed between the fund’s actuary and the actuary of the new fund authority or, if they are unable to agree, they are to be determined by an actuary appointed by the Secretary of State.

8.  Subject to paragraph 7, valuations are to be made by the fund’s actuary.

9.  Where more than one new fund authority is involved, separate apportionment fractions shall be specified in the actuary’s report for the different new fund authorities.

10.  When the previous fund authority receive the actuary’s report they shall provide the new fund authority with a copy of it.

11.  The value of the share of the fund to which the new fund authority are entitled shall be calculated in accordance with the formula—

12.  The apportionment date is the date specified as such by the previous fund authority in a notice given to the new fund authority.

13.  Except with the agreement of the new fund authority, the apportionment date shall not be later than six months after the date on which the previous fund authority receive the actuary’s report.

14.  Subject to paragraphs 15 to 17, immediately after the apportionment date the previous fund authority shall transfer to the new fund authority assets of the fund of a value at the apportionment date equal to the value of the new fund authority’s share of the fund and, unless the previous fund authority and new fund authority otherwise agree, the composition of the assets to be transferred shall so far as possible reflect the composition of the transferable assets which still belong to the fund at the apportionment date and any other assets which belong to the fund at that date which represent in any form, or have accrued from, any transferable asset.

15.  The previous fund authority and the new fund authority may agree to transfer assets in advance of the apportionment date.

16.  The value of an advance under paragraph 15 shall not exceed such sum as the fund’s actuary may specify as appropriate in the circumstances.

17.  Where an advance is made under paragraph 15, the previous fund authority’s liability under paragraphs 11 and 14 shall be reduced by an amount equal to—

18.  The previous employing authority shall bear the costs of apportioning the fund or, if there is more than one previous employing authority involved, each shall bear such part of the costs as the fund’s actuary determines.

19.  The previous fund authority shall keep their accounts in a form which enables the calculations required in apportioning the fund to be made, and they shall also provide the fund’s actuary with any information he requires in connection with the apportionment.

PART II

20.  This Part of this Schedule applies where the fund is to be apportioned under regulation Q2(6) and the persons who are changing funds do so on different days.

21.  The provisions of Part I of this Schedule are to apply to the apportionment as if the changes of fund had occurred on a single date, but suitable adjustments are to be made to the sums payable to the new fund authority to reflect the fact that the changes of fund occur on different dates.

22.  If any question arises in connection with paragraph 21, it shall be determined by the fund’s actuary and the actuary of the new fund authority or, if they are, unable to agree, by an actuary appointed by the Secretary of State.

Regulations B6(6), P3 and P11

SCHEDULE 20BODIES WHOSE EMPLOYEES ARE TO HAVE PENSIONS INCREASE PAID BY THE FUND OR FURTHER FUND

Regulation S3

SCHEDULE 21REVOCATIONS