The Local Government Pension Scheme Regulations 1997 (Amendment) Regulations 1998

Explanatory Note

(This note does not form part of these Regulations)

These Regulations make various amendments to the Local Government Pension Scheme Regulations 1997 (“the principal Regulations”) which regulate the Local Government Pension Scheme (“the LGPS”). The Regulations take effect on 1st April 1998, the date when the principal Regulations came into force. Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect.

Regulation 3 adds the Service Authority for the National Crime Intelligence Service and the Service Authority for the National Crime Squad as resolution bodies.

Regulations 4, 5, 20, 28, 30, 32 and 33 make minor amendments.

Regulations 6 (meaning of pay), 9 (calculation of benefits), 10 (final pay), 11 (alternative final pay periods), 12 (temporary reductions in pay and certificates of protection of pension benefits), 14 (early leavers and ill-health pensions), 15 (re-employed and rejoining deferred members), 16 (death grants), 17 (reduction of some surviving spouses' pensions), 18 (children’s short-term pensions), 19 (children’s long-term pensions), 25 (exclusion of rights to return of contributions), and 31 (forfeiture of pension rights after conviction of employment-related offences) amend the principal Regulations to ensure continuity with the corresponding provision in the Local Government Pension Scheme Regulations 1995 (S.I. 1995/1019) (as amended) which they replace.

Regulation 7 clarifies the provisions in connection with members' lower rate contribution rates to provide that there must be continuity of employment for the right to contribute to the lower rate of 5% to carry forward from before the commencement date of the principal Regulations.

Regulations 8 and 22 substitute the word “remuneration” for the word “pay” which is defined in the principal Regulations and which has a narrower meaning. The wider meaning is required in the context.

Regulation 13 introduces a provision to avoid double enhancement on grounds of ill-health.

Regulation 21 introduces an administrative simplification by removing a time restraint in connection with an administering authority’s passing of a resolution to require evidence of health in connection with payments to increase total membership.

Regulation 23 provides that the rate of interest for all overdue payments is 1% above base rate on a day to day basis with three monthly rests.

Regulations 24 (interest in connection with a right to return of contributions), 26 (interest on deductions made in error) and 27 (interest on late payment of benefits) make changes concerning when and from which date interest is payable in connection with the repayment to members of contributions and the payment of benefits.

Regulation 29 requires employers and administering authorities to publish any policy statements concerning their exercise of discretionary functions under the principal Regulations.

Regulation 34 amends Schedule 4 to the principal Regulations, which sets out Inland Revenue restrictions, by reference to the Schedule to these Regulations.

Regulation 35 allows certain persons who would be placed in a worse position by amendments made in these Regulations to elect for the amendments not to apply in their case.