The Local Government Pension Scheme and Discretionary Compensation (Local Authority Members in England) Regulations 2003
© Crown Copyright 2003
The Secretary of State, in exercise of the powers conferred upon him by sections 7 and 24 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, commencement and application
1. - (1) These Regulations may be cited as the Local Government Pension Scheme and Discretionary Compensation (Local Authority Members in England) Regulations 2003 and shall come into force on 1st May 2003.
(2) These Regulations apply only to England.
Amendment of The Local Government Pension Scheme Regulations 1997
2. The Local Government Pension Scheme Regulations 1997 shall be amended in accordance with regulations 3 to 8 of these Regulations.
Re-employed and rejoining deferred members
3. In regulation 32 (re-employed and rejoining deferred members), for paragraph (2) substitute -
(b) by a Class C member as respects former Class C membership; and
(c) by a councillor member as respects former councillor membership.".
Eligibility: members of local authorities
(b) after paragraph (14), add the following -
Members of local authorities - general
137A. These Regulations apply to councillor members in respect of their councillor membership with the modifications set out in Schedule 8.".
Schedule 8 - Eligible councillors
(g) as a councillor member, the Mayor of London or a member of the London Assembly which is treated as employment for the purposes of the LGPS Regulations.".
(2) The Local Government
(Early Termination of Employment) (Discretionary Compensation) (England
and Wales) Regulations 2000[ 7]
shall be amended by substituting for the definition of "excluded employment"
in Schedule 1 the following -
(ii) in relation to which a pension or other benefits (other than a refund of contributions) is being or has been paid under an occupational pension scheme; or
(b) a period as -
(ii) a member of the London Assembly, or
(iii) a councillor member
in respect of which the person is treated as being in employment
for the purposes of the Pension Regulations.".
1. For regulation 6(3) (latest joining age) substitute -
(b) any earlier day after his 65th birthday when his total membership equals 40 years.".
2. In regulation 7(6) (joining
the scheme), omit "or" at the end of sub-paragraph (b) and after sub-paragraph
(c) add -
(d) to eligible councillors".
3. In regulation 9(1A)[ 10]
(periods of membership: "total membership"), for "65th birthday" and
"65" substitute "70th birthday" and "70" respectively.
4. For regulation 13 (meaning of "pay") substitute -
(b) special responsibility allowance
as may be treated as amounts in respect of which pensions under
these Regulations are payable as set out in a scheme made under
or by virtue of the Local Authorities (Members' Allowances) (England)
5. For regulation 20 (calculations) substitute -
(3) Where a councillor member was an active member in more than 40 years, only the 40 consecutive years (ending in the last 10 years of councillor membership) which produce the highest pension shall be taken into account.
(4) Unless otherwise indicated, references to the amounts of pensions are to their annual rate.
(5) Benefits payable to a councillor member who remains in service after his 70th birthday as referred to in regulation 25A(1) (as that regulation applies to a councillor member) shall be increased at such a rate as is shown as appropriate in guidance issued by the Government Actuary in respect of each day that payment of benefits is delayed between his 70th birthday and the date of his retirement."
6. Omit regulations 21 (final pay),
22 (other final pay periods) and 23 (permanent reductions in pay).
7. In regulations 19(2)(a) (general qualification for benefits), 25(3)[ 12] (normal retirement) and 25A(1) (retirement after the normal retirement date), for "65th birthday" substitute "70th birthday" and in regulation 25A(1) omit the words "with the consent of his employing authority".
8. Omit regulation 26 (redundancy).
9. In regulation 27 (ill-health) -
10. In regulation 28[ 15]
(amounts of ill-health pension and grant) -
(b) omit paragraph (4); and
(c) for paragraph (9), substitute -
11. Omit regulations 29 (re-employed
pensioners) and 30 (further provisions about elections under regulation
(b) in paragraph (6), for "If a member who has left a local government employment" substitute "If a councillor member who has ceased to be a member of the local authority"; and
(c) in paragraph (7), for "60th" substitute "65th".
13. - (1) Regulation
32(1) (re-employed and rejoining deferred members) shall only apply
to a councillor member in respect of any councillor membership where
both the former membership and the membership as an active member
referred to in that paragraph are councillor membership in the same
(b) omit paragraph (8).
14. Omit regulation 32A (concurrent
15. In regulation 38[ 18] (death grants), for paragraphs (3) to (5A) substitute -
(4) The death grant for a councillor member who is a deferred member at the date of his death is 3 times the annual pension that would have been payable to him if he had retired at the date of his death.
(5) The death grant for a councillor member who is a pensioner member at the date of his death is -
(b) where he remained in service after his 70th birthday as referred to in regulation 25A(1) (as modified in respect of councillor members) and is not in receipt of a pension at his death, an amount equal to 2 times career average pay.
(5A) The amount of a deceased councillor
member's former retirement pension is the amount of the pension
he would have received immediately before his death, but for -
(b) regulation 33 (surrenders),
(c) regulation 50 (commutation in cases of exceptional ill-health), or
(d) regulation 110 (application of abatement policy in individual cases).
(5B) A pensioner member includes a councillor
member who would have been entitled to a pension but for regulation
110 (application of abatement policy in individual cases).
16. In regulation 40 (surviving spouse's short-term pension) -
(b) in paragraph (5), omit "(but see regulation 42)".
17. In regulation 41[ 19]
(surviving spouse's long-term pension) -
18. In regulation 45(4) (children's
short-term pensions) for "final pay" substitute "career average pay".
21. Omit regulation 52 (power of employing authority to increase total membership of members leaving employment at or after 50), regulation 53 (power of employing authority to increase total membership of new members), and regulation 55 (payments to increase total membership).
22. In regulation 66[ 20] (elections as to use of accumulated value of AVCs) -
(b) omit paragraphs (4) and (5).
23. Omit regulations 67 to 72 (establishment
of shared cost AVC schemes).
24. Omit paragraph (4) of regulation 87 (rights to return of contributions).
25. Omit regulations 119 to 126 (bulk transfer arrangements, transfers in, community scheme transfers and payments between funds and authorities).".
(This note is not part of the Regulations)
Regulations 3 to 8 of these Regulations amend the Local Government Pension Scheme Regulations 1997 ("the principal Regulations") to make provision for members of local authorities in England who are entitled to pensionable allowances under regulations made under section 18 of the Local Government and Housing Act 1989 (as amended by section 99 of the Local Government Act 2000).
Regulation 3 makes a consequential amendment to regulation 32 of the principal Regulations dealing with aggregation of membership. Regulation 4 amends the principal Regulations to include eligible councillors in the cases of eligibility of non-employees. Regulation 5 inserts a new regulation to provide that the principal Regulations apply to eligible councillors with the modifications set out in a new schedule. Regulation 8 adds that schedule as Schedule 8.
Regulation 6 amends Schedule 1 to the principal Regulations (interpretation), principally to include definitions for councillor members.
Regulation 7 makes amendments to the Table in Schedule 3 to set out membership that does not count for some purposes.
Regulation 9 makes amendments to the injury allowances and gratuities provisions of the Local Government (Discretionary Payments) Regulations 1996 to exclude eligible councillors, the Mayor of London and members of the London Assembly in respect of their employment as such. It also amends the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000 to provide that the calculation of discretionary compensation for redundancy for a person does not include any period of membership as a councillor member, Mayor of London or member of the London Assembly that he may have in the Local Government Pension Scheme.
 1972 (c.11); section 24 was amended by the Police Pensions Act 1976 (c.35), Schedule 2, paragraph 10.back
 The Secretary of State's functions under section 7 and 24 of the Superannuation Act 1972 so far as exercisable in relation to Scotland are transferred to Scottish Ministers; see section 63 of the Scotland Act 1998 (c.46) and regulation 2 of, and Schedule 1 to, the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).back
 S.I. 1997/1612; relevant amending instruments are S.I. 1997/1613, 1998/1238, 1999/1212, 3438, 2000/1164, 3025, 2001/770, 1481, 3401, 2002/206 and 819.back
 Regulation 131 was amended by S.I. 2000/1164, regulation 6 and S.I. 2001/1481, regulation 13.back
 1989 c.42; section 18 was amended by section 99 of the Local Government Act 2000 (c.22).back
 S.I. 1996/1680; relevant amending instrument is S.I. 1997/1613.back
 S.I. 2000/1410, to which there are amendments not relevant to these Regulations.back
 1996 c.56.back
 Regulation 6 was amended by S.I. 1999/3438, regulation 4, S.I. 2001/770, regulation 4 and S.I. 2002/819, regulation 3.back
 Regulation 9(1A) was inserted by S.I. 1999/1212, regulation 6.back
 S.I. 2003/1021.back
 Regulation 25(3) was amended by S.I. 2001/770, regulation 6.back
 Regulation 25A was inserted by S.I. 1999/1212, regulation 9.back
 Regulation 27 was amended by S.I. 1999/1212, regulation 10.back
 Regulation 28 was amended by S.I. 2002/206, regulation 5.back
 Regulation 31 was amended by S.I. 1998/1238, regulation 14 and S.I. 2001/770, regulation 7.back
 Regulation 32 was amended by S.I. 2001/770, regulation 8.back
 Regulation 38 was amended by S.I. 1998/1238, regulation 16.back
 Regulation 41 was amended by S.I. 2000/3025, regulation 3 and the Schedule, paragraph 4.back
 New regulation 66 was inserted by S.I. 2001/3401, regulation 4.back
ISBN 0 11 045633 5
|© Crown copyright 2003|