1. Regulation 156 of the Local Government Pension Scheme Regulations 1997 ("the Regulations") permits the appropriate administering authority to pay the pension credit member a lump sum representing the capital value of the pension. Regulation 156(3) provides for the capital value of the pension to be calculated as shown in guidance issued by the Government Actuary.

2. The purpose of this note prepared by the Government Actuary's Department for the Office of the Deputy Prime Minister - and issued to them for onward transmission to administering authorities and employing authorities - is to provide the guidance required by Regulation 156(3).

3. We confirm that the same principles apply under Regulation 156 as apply under Regulation 49, and we would refer the practitioners to the guidance and tables issued in relation to Regulation 49 for the purpose of this Regulation also. It should be noted that:

(a) no GMP’s will accrue in the any pension credit retained within the scheme, and so;

(b) the appropriate tables to be used are in the section labelled Table C. The factors presented in the column headed "excess over widow’s GMP" or "excess over widower’s GMP" shall be used to value the pension credit in payment, as appropriate.