3rd April 2002
THE LOCAL GOVERNMENT (EARLY TERMINATION OF EMPLOYMENT) (DISCRETIONARY COMPENSATION) (ENGLAND AND WALES) (MISCELLANEOUS) REGULATIONS 2002
I enclose regulations which the Secretary of State has made under powers contained in section 24 of the Superannuation Act 1972. The regulations amend the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000, and come into force on 17 April 2002.
These regulations do not change the policy basis of the current regulations, but several clarifying amendments have been found necessary to ensure that the original regulatory intention is carried through. The amendments in general, were largely foreshadowed in LGPC Circular No. 88, published in July 2000. The main amendment is the removal of the cap on a week's pay, but the opportunity has also been taken to amend the reference to normal retirement age to 65th birthday to reflect recent changes in the Local Government Pension Scheme Regulations. The other changes are either technical or clarify the position so as to make the regulations correspond with the earlier revoked provisions, or ones we have been asked to make by the Joint Committee on Statutory Instruments.
It should be noted that regulations 3 to 10 shall have full retrospective effect from 21 June 2000. A new provision gives authorities discretion to pay additional compensation to former employees where the authority applied a week's pay capped in accordance with provisions in the Employment Rights Act 1996. Authorities should note this provision is time limited and any decision therefore needs to be made within 6 months of the regulations coming into force.
Any comments or questions relating to the application of these changes should be addressed in the first instance to Elizabeth Bickford, Local Government Pensions Division, DTLR, Zone 2/F7, Ashdown House, 123 Victoria Street, London, SW1E 6DE (tel 020 7944 6003) (e-mail [email protected]).
Miss Elizabeth Bickford
The Chief Executive of:
County & District Councils in England
County & Borough Councils in Wales
London Borough Councils
South Yorkshire Pensions Authority
Tameside Metropolitan Borough Council
Wirral Metropolitan Borough Council
Bradford City Council
South Tyneside Metropolitan Borough Council
Middlesbrough Borough Council
Wolverhampton Metropolitan Borough Council
London Pensions Fund Authority
The Town Clerk, City of London
Clerk, South Yorkshire PTA
Clerk, West Midlands PTA
The Secretaries of:
Local Government Association
New Towns Pension Fund
Commission for New Towns
Convention of Scottish Local Authorities (COSLA)
Welsh Local Government Association
North Wales Association of Town Councils
Trades Union Congress
Government Actuary's Department
Other Government Departments