The Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 2003
© Crown Copyright 2003
The Secretary of State, in exercise of the powers conferred on him by section 7 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 extent
1. - (1) These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 2003.
(2) These Regulations shall come into force on 19th November 2003.
(3) The Regulations extend only to England and Wales.
Amendment of Regulations
2. The Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 shall be amended in accordance with regulation 3 of these Regulations.
Restrictions on investments
3. - (1) In regulation 11, for paragraph (2) substitute -
(2A) An administering authority may decide to increase those limits up to the limits set out in Column 2 of Part I (where a percentage is specified in that Column) in accordance with the requirements of regulation 11A.".
(2) After regulation 11 insert -
11A. - (1) An administering authority which decides to increase limits under regulation 11(2A) must comply with the requirements of this regulation.
(2) They must have taken proper advice.
(3) They must take account of the factors set out in regulation 9(3).
(4) The decision must specify -
(b) the limit on the amount of the investment;
(c) the reason for that decision;
(d) the period for which the decision will apply;
(e) if the authority intend to review the decision before the end of the period in (d), the date when the decision will be reviewed; and
(f) that the decision complies with these Regulations.
(5) Where the period for which the decision
will apply comes to an end, the limits will be those set out in
Column 1 of Part I unless before the end of that period the administering
authority reviews the decision in accordance with this regulation.
(b) specify the matters set out in paragraph (4).
(7) Before a decision under regulation
11(2A) or paragraph (6) can take effect, the administering authority
must revise and publish the written statement of investment principles
which they are required to maintain under regulation 9A to include
the matters specified in paragraph (4).".
(3) For Part I of Schedule 1 substitute
Part I as set out in the Schedule to these Regulations.
(This note is not part of the Regulations)
These Regulations amend regulation 11 of, and Part I of Schedule 1 to, the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (the "principal Regulations"), which set down the limits for the different types of pension fund investments. The amendments allow an administering authority to increase those limits up to the specified amounts. When deciding to increase limits, or reviewing previously increased limits, the administering authority must take account of proper advice and of the factors in regulation 9(3) of the principal Regulations (the advisability of investing fund money in a wide variety of investments and the suitability of particular investments and types of investments). A decision to increase limits, or to continue to use previously increased limits, must specify certain matters and those matters must be published in a revised statement of investment principles before the increased limits can take effect.
 1972 c. 11.back
 The Secretary of State's functions under section 7 of the Superannuation Act 1972 in so far as they were exercisable in relation to Scotland were devolved to Scottish Ministers by section 63 of the Scotland Act 1998 (1998 c. 46) and article 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. 1998/1831; the relevant amending instruments are S.I. 1999/3259, 2000/2552, 2001/3649 and 2002/1852.back
 2000 c. 8.back
ISBN 0 11 048042 2
|© Crown copyright 2003||Prepared 29 October 2003|