" An eligible councillor may not become an active member after - 
(a) his 70th birthday or,

(b) any earlier day after his 65th birthday when his total membership equals 40 years.".


Joining the Scheme

     2. In regulation 7(6) (joining the scheme), omit "or" at the end of sub-paragraph (b) and after sub-paragraph (c) add - 

     " , or

(d) to eligible councillors".


Periods of Membership

     3. In regulation 9(1A) (periods of membership: "total membership"), for "65th birthday" and "65" substitute "70th birthday" and "70" respectively.

     " 13.  - (1) A councillor member's pay in any year is the total of such of his - 


(a) basic allowance, and

(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) Regulations 2003.

    (2) "Basic allowance" and "special responsibility allowance" have the same meaning as in regulations 4 and 5 respectively of the Local Authorities (Members' Allowances) (England) Regulations 2003.

    (3) All references to "pay" in these Regulations in respect of a councillor member and his councillor membership shall be construed accordingly.

    (4) "Career average pay" in these Regulations shall mean an amount equal to the total of a councillor member's pay for each year or part year of his active membership divided by the number of those years or part years.

    (5) When calculating a councillor member's career average pay, the pay for any year other than the final year shall be increased in proportion to the increase in the Retail Price Index from the last day of that year up to the last day of the month in which the councillor member's active membership ends.

    (6) "Year" means the 12 months ending with 31st March save that in respect of the year ending with 31st March 2004, it means the period from the coming into force of these Regulations until 31st March 2004.

    (7) "Final year" means the year during which, or at the end of which, the councillor member's active membership ends.

    (8) "Retail Price Index" means the index of retail prices for the United Kingdom published by the Office of National Statistics.

    (9) No sum may be taken into account in calculating pay unless income tax liability has been determined on it.".

     " 20.  - (1) The pension of a councillor member shall be



his career average pay × councillor membership

80

    (2) The retirement grant of a councillor member shall be three times his pension.

    (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).

(a) for paragraph (1) substitute - 

    " (1) Where a councillor member ceases to be a member of his local authority by reason of being permanently incapable of discharging efficiently the duties of that office because of ill-health or infirmity of mind or body, he is entitled to an ill-health pension and grant"; and

(b) in paragraph (5), in the definition of "permanently incapable", for "65th birthday" substitute "70th birthday".

     10. In regulation 28 (amounts of ill-health pension and grant) - 

(a) in paragraph (3), for "65" substitute "70";

(b) omit paragraph (4); and

(c) for paragraph (9), substitute - 

    " (9) If a councillor member is entitled under regulation 27(3) to an ill-health grant (but not a pension), the amount of the grant is calculated by multiplying the member's career average pay by - 



the member's total membership

12.".

     11. Omit regulations 29 (re-employed pensioners) and 30 (further provisions about elections under regulation 29).

     12. In regulation 31 (other early leavers: deferred retirement benefits and elections for early payment) - 

(a) in paragraph (2), for "60" substitute "65";

(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 appropriate fund.

    (2) In regulation 32 - 

(a) in paragraph (5), for "Where a member who may elect under paragraph (1) does not do so or does not elect as respects all periods of his membership" substitute "In the case of a councillor member"; and

(b) omit paragraph (8).

     14. Omit regulation 32A (concurrent employments).

    " (3) The death grant of a councillor member shall be twice his career average pay.

    (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 - 


(a) where he was in receipt of a pension at the date of his death, an amount equal to 5 times his former retirement pension less the amount of any pension paid to him, or

(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 - 



(a) regulation 31 (elections for early payment),

(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).

    (5C) But paragraph (5B) does not stop a councillor member to whom it applies from also being an active member.".

(a) in paragraph (4), for "final pay" substitute "career average pay"; and

(b) in paragraph (5), omit "(but see regulation 42)".

     17. In regulation 41 (surviving spouse's long-term pension) - 

(a) in paragraph (5), for "the multiplier for" to the end of that paragraph, substitute - 

" the long-term pension is - 

the deceased's total membership × career average pay

160"; and

(b) in paragraph (6), omit "(but see regulation 42)".

Children's pensions

     18. In regulation 45(4) (children's short-term pensions) for "final pay" substitute "career average pay".

     19. In regulation 46(8)(b) (children's long-term pensions), for "65th birthday" substitute "70th birthday".

     20. Omit regulation 48 (dependants of re-employed pensioners).

(a) in paragraph (1)(c)(i), delete "or 26 (redundancy etc.)"; and

(b) omit paragraphs (4) and (5).

Shared Cost Schemes

     23. Omit regulations 67 to 72 (establishment of shared cost AVC schemes).