The Local Government Pension Scheme (Amendment) (No. 2) Regulations 2003
© Crown Copyright 2003
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, commencement, interpretation and extent
1. - (1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2003.
(2) These Regulations shall come into force on 19th December 2003, but shall have effect from 1st January 2003.
(3) In these Regulations "the principal Regulations" means the Local Government Pension Scheme Regulations 1997.
(4) These Regulations extend only to England and Wales.
Amendment of Regulations
2. The principal Regulations shall be amended in accordance with regulations 3 to 9 of these Regulations.
Employees of non-Scheme employers: community admission bodies
3. For regulation 5 substitute -
5. - (1) Subject to the requirements of this regulation and regulation 5B, an administering authority may make an admission agreement with any community admission body.
(2) These are community admission bodies -
(ii) is approved by the Secretary of State for the purposes of admission to the Scheme;
(b) a body, other than the governors or managers of a voluntary
school, to the funds of which any Scheme employer contributes;
(ii) of local authorities and officers of local authorities,
(iii) of officers of local authorities which is formed for the purpose of consultation as to the common interests of local authorities and the discussion of matters relating to local government, or
(iv) of Scheme employers;
(d) the Housing Corporation;
(3) Approval under paragraph (2)(a)(ii)
may be subject to such conditions as the Secretary of State thinks
fit and he may withdraw approval at any time if such conditions
are not met.
(ii) a direction made under section 15 of the Local Government Act 1999; or
(iii) directions made under section 497A of the Education Act 1996; or
(b) a public service and which is approved by the Secretary
of State for the purposes of admission to the Scheme.
(3) Only those employees of the transferee
admission body who are employed in connection with the provision
of the service or assets referred to in paragraph (2) are eligible
to be members of the Scheme.
(ii) paragraph 2(b), the transferee admission body, to the satisfaction of the administering authority,
shall carry out an assessment, taking account of actuarial advice,
of the level of risk arising on premature termination of the provision
of the service or assets by reason of the insolvency, winding
up or liquidation of the transferee admission body, and
(7) The indemnity or bond must be with -
(b) an EEA firm of the kind mentioned in paragraph 5(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or
(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.
(8) An admission agreement with a transferee
admission body shall make provision for the relevant matters set
out in Schedule 2A.
(b) in the case of a body under paragraph (2)(b), the Secretary of State approves the body for admission to the Scheme and the conditions, if any, to which the approval is subject have been met;
an administering authority must admit to the Scheme the eligible
employees of the transferee admission body specified by the body
and where it does so, the terms on which it does so are the admission
agreement for the purposes of these Regulations.
(b) regulation 5(2)(b) where, at the date that the admission agreement is made, the contributions paid to the body by any one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources;
shall not be aggregated with any other periods of membership for
the purpose of calculating his retirement grant."
(b) for "5(17)(i)" substitute "5A(2)(a)"; and
(c) delete "transferor" and "within the meaning of regulation 5(17)(j)".
(b) in the definition of "Admission agreement employee", for "5(16)" substitute "5B(8)";
(c) in the definition of "Admission body", for "regulation 5(3)" substitute "regulations 5(2) and 5A(2)"; and
(d) in the definition of "Scheme employer", for "5(16)" substitute "5B(8)".
Matters to be included in an admission agreement in certain
(ii) regulation 5(2)(b) where, at the date that the admission agreement is made, the contributions paid to the body by any one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources; or
(b) a transferee admission,
but does not include a change in the case of a person who was
a member of the Scheme on 13th January 2000.".
1. A requirement for the transferee admission body to pay to the administering authority all contributions and payments due under the Regulations.
2. If required by regulation 5A(6), a reference to the indemnity or bond in accordance with regulation 5A(7) and a warranty from the transferee admission body that such an indemnity or bond is in place.
3. A provision requiring the transferee admission body to adopt the practices and procedures relating to the operation of the Scheme set out in the Regulations and in any employer's guide published by the administering authority and provided to the transferee admission body.
4. An undertaking from the transferee admission body to the administering authority that it will not do anything to prejudice the status of the Scheme as an exempt approved scheme within the meaning given by section 592(1) of the Taxes Act.
5. A representation and warranty from the transferee admission body to the administering authority that all the transferee admission body's employees or class of employees who are specified as members are employed in connection with the provision of the service or assets being carried out by the transferee admission body as a result of those matters referred to in 5A(2).
6. An undertaking from the transferee admission body that it will promptly notify the administering authority in writing of any material change in the terms and conditions of employment which affect entitlement to benefits under the Scheme for its employees who are members and of any terminations of employment by virtue of redundancy or in the interests of efficiency.
7. A requirement that the transferee admission body notifies the administering authority of each occasion on which it exercises a discretion under the Regulations and the manner in which it exercises that discretion.
8. A requirement that the transferee admission body notifies the administering authority of any matter which may affect, or is likely to affect, its participation in the Scheme and that it gives immediate notice of any actual or proposed change in its status which may give rise to a termination, including take-over, reconstruction or amalgamation, liquidation or receivership and a change in the nature of its business or constitution.
9. A minimum period of three months' notice to terminate the admission agreement but automatic termination, as required by regulation 5B(2), in the event that the transferee admission body ceases to be such.
10. A right for the administering authority to terminate the agreement in the event of -
(b) a breach by the transferee admission body of any of its obligations under the admission agreement (but where the breach is capable of remedy only where it has not been remedied within a reasonable time),
(c) the withdrawal of approval by the Commissioners of Inland Revenue to the participation of the transferee admission body as a Scheme employer, or
(d) a failure by the transferee admission body to pay any sums due to the fund within a reasonable period after receipt of a notice from the administering authority requiring it to do so.
11. A requirement that the admission
agreement in its final form shall be available for public inspection
at the appropriate offices of the administering authority.
(b) a provision whereby the Scheme employer may set off against any payments due to the transferee admission body an amount equal to any overdue employer and employee contributions and other payments (and interest payable under the Regulations) due from the transferee admission body as an employing authority,
(c) a provision requiring the Scheme employer to keep under assessment the level of risk arising as a result of the matters set out in regulation 5A(6),
(d) a provision that where a representation or notification must be given to an administering authority under paragraphs 5, 6, 7 and 8 of this Schedule, that representation or notification is also given to the Scheme employer, and
(e) a requirement that the admission agreement in its final form shall be available for public inspection at the appropriate offices of the Scheme employer, if different from the administering authority."
(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").
Regulation 3 amends regulation 5 of the principal Regulations by substituting new regulations 5, 5A and 5B, which provide for administering authorities to make admission agreements to enable employees of non-Scheme employers to be members of the Scheme. The main changes are -
The amended regulation 5 of the principal Regulations makes provision
for the admission of community admission bodies. These are bodies
that provide public services, otherwise than for the purposes of gain,
and which have links with local government.
 1972 c. 11; section 12 was amended by section 10 of the Pensions (Miscellaneous Provisions) Act 1990 (c. 7).back
 S.I. 1997/1612; the relevant amending instruments are S.I. 1999/3438, 2000/1005, 2001/770, 2001/3649 and 2002/206.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 (c. 46) and article 2 of, and Schedule 1 to, the Scotland Act 1998 (Transfer of Functions to Scottish Ministers etc.) Order 1999 (S.I. 1999/1750).back
 1989 c. 42.back
 1999 c. 27.back
 1996 c. 56; section 497A was inserted by section 8 of the School Standards and Framework Act 1998 (c. 31) and amended by section 60 of the Education Act 2002 (c. 32).back
 2000 c. 8.back
 1988 c. 1. The current regulations are the Retirement Benefit Schemes (Information Powers) Regulations 1995, S.I. 1995/3103, as amended.back
 1993 c. 48.back
ISBN 0 11 048203 4
|© Crown copyright 2003||Prepared 28 November 2003|