2001 No. 3401
PENSIONS, ENGLAND AND WALES
The Local Government Pension Scheme (Amendment No. 2) Regulations 2001
||15th October 2001
||Laid before Parliament
||23rd October 2001
||Coming into force
||Except regulation 6(b)
||13th November 2001
||1st April 2002
The Secretary of State, in exercise of the powers conferred on him by sections 7 and 12 of
the Superannuation Act 1972 and of all other
powers enabling him in that behalf, after consultation with such associations of local
authorities as appeared to him to be concerned, the local authorities with whom
consultation appeared to him to be desirable and such representatives of other persons
likely to be affected by the Regulations as appeared to him to be appropriate, hereby
makes the following Regulations: -
Citation and commencement
1. - (1) These Regulations may be
cited as the Local Government Pension Scheme (Amendment No. 2) Regulations 2001.
(2) Subject to paragraph (3), these Regulations shall come into
force on 13th November 2001 but regulation 3 shall have effect from 1st April 1998 and
regulation 9 shall have effect from 2nd April 2001.
(3) Regulation 6(b) shall come into force on 1st April 2002.
Amendment of Regulations
2. The Local Government Pension Scheme
Regulations 1997 shall be amended in
accordance with regulations 3 to 9 of these Regulations.
3. In regulation 25, after paragraph (3) insert -
" (3A) But the NRD of a member who was a member
immediately before the commencement date is -
(a) his 60th birthday if on the day before that day he has total membership of at least
25 years; or
(b) the day after the date on which he first has such total membership if that date is on
or after his 60th birthday but before his 65th birthday.".
Elections as to use of accumulated value of AVCs
4. For regulation 66, substitute -
" 66. - (1) subject to paragraph (8),
this regulation applies where a person -
(a) leaves his employment with the employer who was his employing authority when he
made an election under regulation 60(1) or 60(11) without entitlement to the immediate
payment of retirement benefits;
(b) stops being an active member without leaving that employment;
(c) leaves his employment with the employer who was his employing authority when he made
an election under regulation 60(1) or 60(11) with entitlement to the immediate payment of
retirement benefits -
(i) under regulation 25 (normal retirement) or 26 (redundancy etc.); or
(ii) by virtue of an election under regulation 31 (early payment); or
(d) becomes entitled to an ill-health pension under regulation 27.
(2) Subject to paragraph (7), a person must elect to have the
accumulated value used -
(a) where paragraph (1)(a) applies to him, in one or more of the permissible ways; and
(b) where paragraph (1)(b) applies to him, in the way mentioned in paragraph (3)(b).
(3) The permissible ways are -
(a) to subscribe to an occupational pension scheme (other than the Scheme);
(b) to subscribe to a personal pension scheme (including an additional voluntary
contributions scheme, other than an FSAVC scheme);
(c) to subscribe to a self-employed pension arrangement;
(d) to purchase an appropriate policy from one or more AVC insurance companies.
(4) Where paragraph (1) (c) or (d) applies to a person, he may
elect for the accumulated value to be used to provide additional pension for him under the
Scheme, or partly to provide such pension for him.
(5) Where a member makes an election under paragraph (4), he
becomes entitled to such additional pension as is shown as appropriate in guidance issued
by the Government Actuary.
(6) The accumulated value may not be used to provide an additional
lump sum benefit to the member unless it arises out of contributions made under any
voluntary contributions scheme where the payments began before 8th April 1987.
(7) Where a person who has stopped being employed by an employing
authority or being a member receives -
(a) an ill-health grant under regulation 27(3),
(b) a repayment of contributions under regulation 87, or
(c) a payment under regulation 88(2),
he must immediately be paid the accumulated value.
(8) A person who made an election under regulation 60(1) prior to
13th November 2001 shall continue to have the rights to make elections as to the use of
the accumulated value as under the provisions of this regulation prior to its amendment by
the Local Government Pension Scheme (Amendment No. 2) Regulations 2001 and accordingly, so far as is necessary to give effect to those
rights and to make provision for any matters incidental to them, those provisions shall be
treated as if they had continued in effect.
(9) In this regulation, "the accumulated value" means
the accumulated value of the additional contributions invested under regulation
Cost of calculations for transfer of AVCs or SCAVCs into the Scheme where no
transfer is requested
5. In regulation 86 -
(a) in paragraph (a), for "regulation 66(2)" substitute "regulation
66(4)" and for "to acquire transfer credits in the Scheme" substitute
"to provide additional pension for him under the Scheme"; and
(b) for "transfer value" substitute "additional pension".
First instance decisions
6. In regulation 97 -
(a) in paragraph (9), after "on the ground of ill-health" insert "or
infirmity of mind or body"; and
(b) after paragraph (9), insert the following new paragraph -
" (9A) The independent registered medical practitioner
must be in a position to certify, and must include in his certification a statement,
(a) he has not previously advised, or given an opinion on, or otherwise been involved
in the particular case for which the certificate has been requested; and
(b) he is not acting, and has not at any time acted, as the representative of the member,
the Scheme employer or any other party in relation to the same case.".
Recovery or retention where former member has misconduct obligation
7. In regulation 113(3), for "regulation
66(5)" substitute "regulation 66(4)".
8. In the first column of paragraph 2 of
the Table in Schedule 3, delete "by virtue of regulation 66(5) (including that
regulation as it applies by virtue of regulation 72) or credited".
Schedule 7 Former Members of the Metropolitan Civil Staffs Superannuation Scheme
9. In the heading of Schedule 7, for "Regulation 137A" substitute
Signed by authority of the Secretary of State
Minister of State, Department for Transport, Local Government and the Regions
15th October 2001
(This note is not part of the Regulations)
These Regulations amend the Local Government Pension Scheme Regulations
1997 ("the principal Regulations") which comprise the Local
Government Pension Scheme ("the Scheme"). Regulations 3 and
9 take effect on dates before the Regulations come into force (as set
out in regulation 1(2)). Section 12 of the Superannuation Act 1972 provides
that regulations made under section 7 of that Act may have retrospective
Regulation 3 amends regulation 25 of the principal Regulations (normal
retirement) to ensure that certain members of the Scheme who were members
before 1st April 1998 continue to have a normal retirement date between
age 60 and 65 as provided in the regulations which were superseded by
the principal Regulations.
Regulation 4 substitutes a new regulation 66 in the principal Regulations
(elections as to accumulated value of additional voluntary contributions)
only allowing the use of the accumulated value of the additional voluntary
contributions to provide a scheme benefit when a member ceases to be an
active member of the Scheme with immediate entitlement to a pension. The
changes do not affect the rights of a member who entered into the additional
voluntary contributions scheme before the change takes effect.
Regulation 5 makes an amendment to regulation 86 of the principal Regulations
(cost of calculations for transfer of additional voluntary contributions
or shared cost additional voluntary contributions into the Scheme) consequential
on the changes to regulation 66.
Regulation 6(a) makes a clarifying amendment to regulation 97 of the principal
Regulations (first instance decisions).
Regulation 6(b) introduces specific requirements in regulation 97 as to
the independence of the registered medical practitioner who is required
to produce a certificate in connection with ill-health retirements.
Regulation 7 makes a minor change to regulation 113 of the principal Regulations
(recovery or retention where former member has misconduct obligation)
consequential on the changes to regulation 66.
Regulation 8 makes an amendment to Schedule 3 of the principal Regulations
(excluded membership) consequential on the amendments to regulation 66.
Regulation 9 corrects a drafting error in the heading of Schedule 7 to
the principal Regulations.
 1972 c. 11; section 12 was amended by section 10 of the Pensions
(Miscellaneous Provisions) Act 1990 (c. 7).back
 S.I. 1997/1612; relevant amending instruments are S.I. 1998/1238,
1999/1212, 2000/3025, 2001/770.back
 Regulation 25 was amended by S.I. 2001/770, regulation 6.back
 S.I. 2001/3401.back
 Regulation 97 was amended by S.I. 1998/1238, regulation 28, S.I.
1999/1212, regulation 15 and S.I. 2000/3025, regulation 3 and the Schedule, paragraph 8.back
 Schedule 7 was added by S.I. 2001/770, regulation 27.back
ISBN 0 11 038681 7