Our Ref: LGR85/18/ 22 December 1999 678 INDEX |
APPEAL TO THE SECRETARY OF STATE
SUPERANNUATION ACT 1972
LOCAL GOVERNMENT (COMENPENSATION FOR PREMATURE RETIREMENT) REGULATIONS 1982 (the 1982 regulations)
LOCAL GOVERNMENT (DISCRETIONARY PAYMENTS) REGULATIONS 1996 (the 1996 regulations)
LOCAL GOVERNMENT PENSION SCHEME REGULATIONS 1997 (the 1997 regulations)
1) I refer to your letter of 2 December 1999 in which you appeal to the Secretary of State for the Environment, Transport and the Regions against the decision made by the Pensions Section of XXX Council (the council).
2) From the evidence available it appears that the matter you wish the Secretary of State to consider, and which you also referred to the Appointed Person, Mr XXX, concerns the reduction in your annual and lump sum compensation for compensatory added years awarded to you by XXX Council. The Appointed Person explained that your added years’ payments are made under the provisions of either the 1982 or 1996 regulations and not the Local Government Pension Scheme Regulations. As a result any payments arising under the 1982 or 1996 regulations or future adjustments to those payments required by those regulations fell outside his jurisdiction. He further explained that under the 1997 regulations he could only consider “a disagreement about a matter in relation to the (Local Government Pension) Scheme ... .”
3) As the evidence indicates that the disagreement is about the adjustment of your annual and lump sum compensation under regulation 17 of the 1996 regulations the Secretary of State, like the Appointed Person, has no power to consider your complaint. This is because the award of a credited period (commonly known as compensatory added years) and any adjustment to the annual and/or lump sum compensation would not have been made under the pension scheme regulations but under the 1982 regulations, (which were subsequently replaced by the 1996 regulations). These regulations contain no appeal provision. Although commonly referred to as “compensatory added years” the award of service does not enhance a person’s membership of the local government pension: nor is the resulting annual compensation payment funded from the pension fund.