The Local Government Pension Scheme (Amendment) (No. 2) Regulations 2006
© Crown Copyright 2006
These Regulations are made in exercise of the powers conferred by sections 7 and 12 of the Superannuation Act 1972.
In accordance with section 7(5) of that Act, the Secretary of State has consulted (a) such associations of local authorities as appeared to her to be concerned; (b) the local authorities with whom consultation appeared to her to be desirable; and (c) such representatives of other persons likely to be affected by the Regulations as appeared to her to be appropriate.
The Secretary of State makes the following Regulations:
Citation, commencement, interpretation and application
1. —(1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2006.
(2) These Regulations apply in relation to England and Wales.
(3) These Regulations shall come into force on 1st October 2006, but—
(b) the amendment made by regulation 5 has effect from 1st April 2006; and
(c) the amendments made by regulations 3, 4, 6, 7, 8, 9, 10, 11, 15, 17 and 18 have effect from 6th April 2006.
(4) In these Regulations, "the principal
Regulations" means the Local Government Pension Scheme Regulations
Limit on total amount of benefits
(b) as benefits provided in the form of a lump sum in accordance with regulation 64; or
(c) as additional lump sum benefits in accordance with regulation 66,
shall not exceed 25% of the capital value of his accrued rights.".
(2) In regulation 20(3C), for the words
"made by him" substitute "made by or for him".
(3F) A member may make an election under paragraph (3A) in respect of his pension, or any part thereof, payable by virtue of an election under regulation 66 (Elections as to use of accumulated value of AVCs) notwithstanding any provision to the contrary in the former provisions of regulation 66 treated as continuing to have effect under paragraph (8) of that regulation.".
Requirements as to time of payment
(2B) But the total amount of the member's retirement grant, including any sum received in accordance with an election under paragraph (3A), shall not exceed 25% of the capital value of his accrued rights.
(2C) For the purposes of this regulation, a member's accrued rights include rights accrued in respect of any payments made by him in accordance with Chapter IV of Part III (Additional Voluntary Contributions).
(2D) The capital value of a member's accrued rights shall be calculated as shown in guidance issued by the Government Actuary.".
Amendment of the Local Government Pension Scheme (Amendment)
(b) for "1st October 2006" in paragraphs 2(b), 3(d) and 5(3) substitute “1st April 2008;
(c) in paragraph 5(1), after "member" insert "who was an active member before 1st October 2006";
(d) after paragraph 5 insert—
(2) That part of his retirement pension and grant which is calculated by reference to any period of membership after 31st March 2008 shall be reduced in accordance with guidance issued by the Government Actuary.".
(b) that relevant beneficiary so elects by notice in writing given to the appropriate administering authority within the period of six months beginning with 1st October 2006,
then the principal Regulations shall have effect in relation to
him as if those amendments had never been made.
(b) dies while in such employment,
(ii) 6th April 2006, in respect of amendments made by regulations 3, 4, 6, 7, 8, 9, 10, 15, 17 and 18; and
(iii) 1st October 2006, in respect of amendments made by regulations 11, 12, 13 and 14.
(This note is not part of the Regulations)
These Regulations make a number of amendments to the Local Government Pension Scheme constituted by the Local Government Pension Scheme Regulations, as amended ("the principal Regulations"). Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 of that Act may have retrospective effect: some of these amendments do have such effect.
Regulation 5, which deals with the commutation of annual pension entitlements, takes effect from 1st April 2006.
Regulations 3, 4, and 6 to 111 make a number of amendments to address changes in the tax regime consequent on the Finance Act 2004. These amendments take effect from 6th April 2006.
Regulation 12 requires employers to have and publish a statement of their policy concerning the exercise of their discretionary functions under regulation 35 of the principal Regulations (Requirements as to time of payment).
Regulations 14 and 16 correct an erroneous cross-reference in an amendment to regulation 122 of the principal Regulations made by the Local Government Pension Scheme (Amendment) Regulations 2006 (S.I. 2006/966).
Regulation 15 provides for the commutation of annual pension entitlement of councillors.
Regulations 17 and 18 make transitional and savings provisions.
 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 Scottish Ministers etc) Order 1999 (S.I. 1999/1750).back
 S.I.1997/1612; the relevant amending instruments are S.I. 1999/1212, 2000/1164, 2001/1481, 2002/206, 2004/573, 2004/3372, 2005/1903 and 2006/966.back
 S.I. 1997/1613, to which there are amendments not relevant to these Regulations.back
 S.I. 2006/966.back
ISBN 0 11 074939 1
|© Crown copyright 2006||Prepared 1 August 2006|