The Local Government (Early Termination of Employment) (Discretionary Compensation)(England and Wales) Regulations 2000
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The Secretary of State for the Environment, Transport and the Regions, in exercise of the powers conferred on him by section 24 of the Superannuation Act 1972[1], 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 and commencement 1. - (1) These Regulations may be cited as the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000. (2) They shall come into force on 21st June 2000. General interpretation 2. - (1) Schedule 1 contains definitions of expressions used in these Regulations which apply for their interpretation unless the context indicates that they have a different meaning. (2) Expressions not defined in Schedule 1 but used in these Regulations and in the Pension Regulations have the same meaning as in those Regulations or, if the expression is not defined in those Regulations, but is defined in the 1995 Regulations, as in the 1995 Regulations. (3) Schedule 2 has effect for the purposes of the definition of "appropriate percentage" in Schedule 1. (4) Where these Regulations refer to anything done, required or arising under any provision of the Pension Regulations, those references shall include anything done, required or arising under the corresponding provision of the 1995 Regulations, the 1986 Regulations or the 1974 Regulations, unless the context indicates otherwise. (5) Where these Regulations refer to a Scheme member or a person who would be or would have been a Scheme member, those references shall include a pensionable employee and a person who would be or would have been a pensionable employee, unless the context indicates otherwise. Application to the Isles of Scilly 3. These Regulations apply to the Isles of Scilly as if they were a district in the county of Cornwall and the Council of the Isles of Scilly were a council of that district. General and special application of Regulations 4. - (1) These Regulations apply in relation to, or as the case may be, in consequence of the death of, a person -
(ii) in the interests of the efficient exercise of the authority's functions; or (iii) in the case of a joint appointment, because the other holder of the appointment has left it; and (b) who, on his final day of employment, is eligible to be a Scheme
member (whether or not he is such a member) or would be so eligible but
for a relevant disqualification, and in the following provisions of these Regulations "person"
shall be construed accordingly, unless the context indicates that it has a
different meaning. Power to increase statutory redundancy payments 5. - (1) Compensation may be paid in accordance with this regulation to a person who is entitled to a redundancy payment under the 1996 Act on the termination of his employment. (2) The amount which may be paid must not be more than the difference between -
(b) the payment to which he would have been entitled if there had been no limit on the amount of a week's pay used in the calculation of his redundancy payment[2]. (3) The power to pay compensation is
exercisable -
(b) in any other case, by the body by whom he is employed immediately before the termination date.
Discretionary compensation for redundancy: general 6. - (1) This Part applies where a person -
(b) in respect of that cessation -
(ii) may not count an additional period of membership under regulation 52 (power of employing authority to increase total membership of members leaving employment at or after 50) of the Pension Regulations; and (iii) either is not entitled to have his case considered for compensation under Part IV or is so entitled but has not been awarded a credited period; (c) is over 18 and under 65 on the termination date; (2) Where this Part applies, the Scheme
employer may, not later than six months after the termination date, decide
to pay compensation under this Part; and in that event shall, as soon as
reasonably practicable after the decision, notify the person in whose
favour it has been made, giving details of the calculation of the
compensation.
(b) if the employee is at least 20 but under 23 on the termination date -
(ii) an additional half a week's pay for each complete year of qualifying employment after he became 20; (c) if the employee is at least 23 but under 41 on the termination
date, two weeks' pay for each complete year of qualifying employment
after he became 18; or
(ii) an additional three weeks' pay for each complete year of qualifying employment after he became 41.
(4) Chapter II of Part XIV (interpretation) of
the 1996 Act (calculation of a week's pay) shall apply for the purpose of
calculations under paragraph (3) as it applies for the purpose of
calculating redundancy payments but with the substitution for references
to the calculation date of references to the termination date. Persons eligible for discretionary awards 7. - (1) A person is an eligible person for this Part if he satisfies the requirements in paragraph (2). (2) The requirements are that, on the termination date -
(b) that his total membership is not to be increased under regulation 52 of the Pension Regulations (power of employing authority to increase total membership of members leaving employment at or after 50) because of the terminated employment; (c) that he is not to receive compensation for the terminated employment under regulation 6 of these Regulations; (d) he is at least 50, but under 65 or, if he is a coroner, under 70; (e) the total of -
(ii) any periods of superannuable membership[6], and (iii) any increase in membership under regulation 13 of the Transitional Regulations, is 5 years or more; and
(ii) do not in total exceed 40 years.
Award of credited period by way of compensation
(b) the period beginning with the day after the termination date and ending on his 65th birthday, less the period of his residual entitlement (if any); (c) the total of -
(ii) any period which counts as a period of superannuable membership; and (iii) any increase in membership under regulation 13 of the Transitional Regulations, or, if he is an assumed member, any period which would count or any
increase which would be awarded apart from a relevant disqualification
and on the relevant assumptions; and (3) An award may not be made later than six
months after the termination date.
(3) This paragraph applies to a
person -
(b) whose earlier extra service has been reduced by the whole or part of the period of his subsequent employment; or (c) whose retirement payment attributable to that earlier extra service has been reduced on account of the whole or part of the period of his subsequent employment. (4) The earlier extra service of a person to
whom paragraph (3) applies shall be reduced by the period of his
subsequent employment or, where the reduction in paragraph (3)(b) or (c)
was of, or attributable to, part of that period, by that part.
(b) but for a relevant disqualification, he would be so entitled on the relevant assumptions. (2) The amount of lump sum compensation
payable, unless adjusted in accordance with Part V, is an amount equal to
that by which his retirement grant would be increased on the relevant
assumptions and in accordance with the Pension Regulations if his total
membership were increased by the credited period.
(b) would be so entitled, but for a relevant disqualification would be increased, on the relevant assumptions and in accordance with
those Regulations, if his total membership were increased by the relevant
credited period. Effect of occupational pension 12. - (1) Where the conditions in paragraph (2) are met, a person's basic entitlement shall, if necessary, be reduced so that the total of the annual rates for the time being of -
(b) his pension under regulation 26 of the Pension Regulations; and (c) his annual compensation, is not more than the relevant amount.
(b) that the total of that period, his total membership and any credited period is more than 40 years. Effect of redundancy payments
(b) has received, or is entitled to receive, a redundancy payment under Part XI of the 1996 Act or compensation under Part II of these Regulations. (2) If, but for this paragraph, such a person
would be entitled -
(b) to lump sum compensation of an amount which is greater than the calculated amount, his lump sum compensation shall be reduced by the calculated amount. (3) If a person to whom this regulation applies
has no entitlement to lump sum compensation -
(b) for any other reason, his basic entitlement shall be reduced by the appropriate percentage of the calculated amount. (4) The calculated amount is that found by
applying the formula -
Effect of other termination payments
(b) receives a termination payment from his employing authority. (2) Such a person shall not be entitled to lump
sum compensation if, after deduction of the calculated amount (where
required by regulation 13), the amount of that compensation would be the
same as, or less than, the termination payment.
(b) if he is not entitled to lump sum compensation for a reason other than the operation of paragraph (2), by the deduction of the amount of the termination payment; (c) if he receives the whole or part of the termination payment after a credited period has been awarded and his compensation has not been adjusted on account of that payment, by the deduction of the amount received. (5) Where adjustments to a person's basic
entitlement are required in accordance with paragraph (4), no instalment
of annual compensation is payable to him until the total of the deductions
under that paragraph equals the amount of the adjustment.
(b) is entitled to annual compensation for a period, is the amount of his basic entitlement for that period (as adjusted,
where required, under regulations 13, 14, 17 and 19) less the total of the
periodic payments received for that period. Interpretation: Part VI 16. - (1) In this Part, "annual compensation" means the annual compensation, after any necessary adjustment in accordance with Part V, which would, apart from regulation 17, be payable to a person under these Regulations. (2) For the purposes of this Part, a person -
(b) who is transferred to another post with the same employing authority at an altered rate of pay, shall be treated as if he had again entered a new employment.
(b) financial benefits under these Regulations and the Pension Regulations, greater than the annual rate of pay to which he would have been
entitled had he remained in his terminated employment. Interpretation: Part VII 18. - (1) In this Part, "annual compensation" means the compensation payable to a person under regulation 11 after any necessary adjustment in accordance with regulation 13. (2) For the purposes of this Part, a person -
(b) who is transferred to another post with the same employing authority at an altered rate of pay, shall be treated as if he had again entered a new employment.
(b) his total membership for the purpose of calculating under the Pension Regulations, on the relevant assumptions, his retirement pension on cessation of his new employment, exceeds the total membership which would have been used for the purpose
of that calculation if he had held his terminated employment until his
65th birthday, his employing authority must reduce his annual compensation
by such amount as they consider appropriate. Surrender of part of annual compensation 20. - (1) A person who, under regulation 33 (surrenders of pension) of the Pension Regulations, has been allowed to surrender part of the retirement pension to which he would otherwise have been entitled on ceasing to hold his former employment, may (having been awarded a credited period) notify his employing authority, in accordance with paragraph (2) or (3), that he wishes to surrender part of his annual compensation. (2) A person who has not entered a new employment must give notice within one month of the date on which he is notified of the award of a credited period or, if later, his NRD[7]. (3) A person who has entered a new employment must give notice within one month of -
(b) the date on which he is notified of any adjustment made by reason of the ending of that employment; or (c) his NRD, whichever is the latest.
(b) for "the same percentage of his annual compensation as that surrendered under the Pension Regulations" there were substituted "such part of his annual compensation, not exceeding one third, as he may specify in his notice under paragraph (2) or (3)". (10) In this regulation "annual
compensation" means the compensation payable to a person under
regulation 11, subject to any necessary adjustment -
(b) if he is a person to whom an allowance for life has been granted (see regulation 15(2)), in accordance with that regulation; (c) under regulation 19. Awards to surviving spouses
(b) who would be so entitled apart from -
(ii) the transfer of benefits to another pension scheme.
(2) This regulation also applies where the
deceased is survived by more than one spouse if both, or all, of them are,
or but for the matters mentioned in paragraph (1)(b) would be, jointly
entitled to receive such a pension as is mentioned in paragraph (1)(a);
and in such a case references in the following paragraphs (in whatever
terms) to an entitlement of the surviving spouse are references to the
joint entitlement of the surviving spouses.
(ii) otherwise, for three months after that date; and (b) after that period, surviving spouse's long-term compensation, but if the marriage took place after the termination date, the
surviving spouse is only entitled to receive compensation under this
regulation if she is entitled to a surviving spouse's pension under the
Pension Regulations (or would be so entitled apart from the matters
mentioned in paragraph (1)(b)).
(b) are the surviving spouses of eligible persons who ceased employment before 1st April 1998, only such one of them as they may choose shall be so entitled; and the
other shall cease to be so entitled until the end of the marriage or
cohabitation.
(b) where the adjustment is under regulation 19 and is to take into account an entitlement to lump sum compensation, such an adjustment under regulation 19. (2) Surviving spouse's long-term compensation
is the relevant fraction of the annual compensation which would have been
payable to the deceased immediately before his death in accordance with
these Regulations ignoring any adjustment -
(b) if at the time of his death the deceased was in a new employment in which he was not a Scheme member, under regulation 17. (3) Where at the time of his death the deceased
was in a new employment in which he was a Scheme member, the employing
authority must decide the extent to which any reduction made by them under
regulation 19 to the annual compensation is to be taken into account.
(b) who would be so entitled but for -
(ii) the transfer of benefits to another pension scheme.
(2) Where this regulation applies, but subject
to paragraph (3), the eligible children are entitled to, or to have paid
for their benefit, children's short-term compensation for the same period
as that for which their short-term pension is payable under regulation
45(2) or (3) of the Pension Regulations.
(b) who would be so entitled but for -
(ii) the transfer of benefits to another pension scheme.
(2) Where this regulation applies, but subject
to paragraph (3), the eligible children are entitled to receive, or to
have paid for their benefit, children's long-term compensation for the
same period as that for which their long-term pension is payable under
regulation 46(2) or (3) of the Pension Regulations.
(b) the transfer of benefits to another pension scheme, the employing authority shall decide to whom the children's
compensation is paid and, if applicable, how it is to be apportioned
amongst the eligible children. Policy statements 26. - (1) Each employing authority must formulate, publish and keep under review -
(b) the policy they apply in the exercise of their duty under regulations 17 and 19 to reduce annual compensation. (2) If the authority decide to change either
policy, they must publish a statement of the amended policy within one
month of the date of their decision.
(b) be satisfied that the policy is workable, affordable and reasonable having regard to the foreseeable costs. Information relevant to compensation - employing
authorities
(b) the death of a person in respect of whom a credited period had been awarded; or (c) the making of any adjustment affecting the compensation payable to, or for the benefit of, a person under any of Parts IV to VIII, the employing authority must, by notice in writing, inform the
recipient of the effect of the award or the adjustment, as the case may
be, giving details of any relevant calculation.
(b) to produce such documents in support of that information, as they may reasonably require for the discharge of their functions
under these Regulations; and may require the information and documents to
be supplied and produced within such reasonable period as may be specified
in the notice.
(b) is not assignable or chargeable with his debts or other liabilities; and (c) on his bankruptcy, shall not vest in his trustee in bankruptcy as part of his estate. (2) Compensation (other than compensation
payable in a lump sum) payable to, or in respect of, a person shall be
payable where the entitlement arises under Parts IV or VIII, at the same
intervals as those at which his pension is payable under the Pension
Regulations (or, but for a relevant disqualification and on the relevant
assumptions or, as the case may be, the transfer of benefits to another
pension scheme, would have been so payable).
(ii) where there has been an underpayment, make a further payment; (iii) where there has been an overpayment, specify a reasonable period for repayment; (b) a person who has received a notice under sub-paragraph (a) must
repay any overpayment within the specified period; and (3) The paying authority shall take into
account the person's circumstances (so far as known or reasonably
ascertainable), before taking steps under paragraph (3)(c). Finance 32. The cost of any payment to be made under these Regulations must not be met out of any pension fund. Transitional provisions and savings 33. Schedule 4 shall have effect for the purpose of making transitional provisions and savings. Consequential amendments 34. Schedule 5 shall have effect for the purpose of making amendments which are consequential on the making of these Regulations. Revocation of Regulations 35. The following provisions and instruments are revoked - The Local Government (Compensation for Redundancy) Regulations 1994[8]; The Local Government (Compensation for Redundancy) (Amendment) Regulations 1996[9]; Parts II to IV of, and Schedules 1 and 4 to, the 1996 Regulations[10]; so much of the Local Government (Discretionary Payments) (Amendment) Regulations 1998[11] as relates to Parts II to IV of the 1996 Regulations; regulations 4 to 6 of the Local Government (Discretionary Payments) (Amendment) Regulations 1999[12]; regulations 2 and 3 of the Local Government (Discretionary Payments) (Amendment No. 2) Regulations 1999[13]. Signed by authority of the Secretary of State for the Environment, Transport and the Regions Hilary Armstrong Minister of State, Department of the Environment, Transport and the Regions 24th May 2000 1. In these Regulations -
(b) of an occupational pension which is not an official pension, includes increases under any enactment, contract, scheme or other arrangement;
(b) a period of service with which he has been credited, before the termination date, for the purpose of calculating a
retirement payment or, if more than one period has been granted, the total
of them;
(ii) born not later than 12 months after that date; (b) his adopted child if the adoption took place on or before the
termination date;
(ii) an adopted child of someone else who married the person before the termination date; or (iii) a child accepted by him as a member of the family;
(b) a body specified in regulation 4(6) (resolution bodies)[21] of those Regulations -
(ii) which has passed a relevant resolution, within the meaning of regulation 4(5) of those Regulations, which covers him;
(b) a payment in respect of that employment under regulations, or under provisions having effect as provisions of regulations, under section 7 of the 1972 Act; or (c) a payment in lieu of annual or other leave to which he is entitled in respect of that employment; or (d) so much of any payment in lieu of notice of termination of that employment as is equal to or less than the pay that he would have received if he had remained in that employment for three months after the termination date;
(b) in relation to which a pension or other benefits (other than a refund of contributions) is being or has been paid under an occupational pension scheme;
(b) a pension derived from the payment of a transfer value calculated by reference to pension rights (contingent or otherwise) arising under the 1995 Regulations or the Pension Regulations, or arising with respect to a pension of a kind mentioned in paragraph (a);
(b) that he was 55 on that day;
(b) if regulation 31(2) applies, the appropriate authority; (c) in any other case, the employing authority;
(b) in relation to any other person, means an instalment of an allowance granted to him by his employing authority under an enactment, contract, scheme or arrangement with that authority in consequence of, or as compensation for, the loss of a terminated employment, but in neither case includes annual compensation or a payment which is
an excepted payment in relation to that employment;
(b) are incorporated in and carrying on within the United Kingdom a deposit-taking business (as defined in section 6, but subject to any order under section 7 of that Act); and (c) quote a base rate in sterling, and for this definition the size of an institution at any time is to be
determined by reference to the gross assets denominated in sterling of
that institution, together with any subsidiary (as defined in section 736
of the Companies Act 1985[30]), as
shown in the audited end-of-year accounts last published before that time;
(ii) the amount of the official increases by which an official pension at the annual rate of that pensionable pay would have been increased, if it had begun and first qualified for such increases on the day after the termination date; (b) if no such grant is payable, means 66 2/3 per cent. of
that sum;
(b) a person's total period of membership included any periods of special service other than unpaid periods of absence from duty; (c) with respect to a period of special service (applying the preceding assumptions), an election or determination under paragraph 2 of Schedule D1 to the 1995 Regulations (optional alternative relevant periods for calculating pensionable remuneration[31] -
(ii) had not been made in a case within paragraph 4 or 5 of that Schedule or regulation 22 (other final pay periods) or 23 (permanent reductions in pay; certificates of pension benefits) of the Pension Regulations; and (d) paragraph 6(b) (periods of absence) of Schedule D1 to the 1995
Regulations did not apply with respect to any period of special service;
(ii) the making of any election to opt out of, or the absence of an election to opt into, such membership with respect to any period of employment; (iii) a restriction excluding some part-time employment from being employment to which the Scheme applies; (iv) in the case of the Scheme, ineligibility under regulation B2(2) of the 1995 Regulations; (v) in the case of the Scheme and a manual worker, failure to complete a period of continuous employment required for membership of the Scheme; (b) in any other context, means any of (i) to (vii) below, as the
result of which (either alone or taken together) a person has not
become, has ceased to be, or has not been treated as, a Scheme
member -
(ii) the making, before 6th April 1988, of an election under regulation B1(15B) of those Regulations[34]; (iii) the making before, or the absence on, 6th April 1988 of an election under regulation B1(18) of, or Part IV of Schedule 2 to, those Regulations[35]; (iv) the absence of an election under regulation B1A of, or paragraph 1(b) of Part III of Schedule 2 to, those Regulations; (v) the absence of an application under regulation B10 of the 1995 Regulations or regulation 7 of the Pension Regulations for membership; (vi) the giving of a notification under regulation B1B of the 1986 Regulations, regulation B12 of the 1995 Regulations or regulation 8 of the Pension Regulations; (vii) the making or absence of an election under regulation 25(3)(b) of the Local Government Superannuation (Miscellaneous Provisions) Regulations 1987[36];
(ii) if not, three eighths; (b) in regulation 24, means -
(ii) where there is such a surviving spouse and two or more eligible children, one half; (iii) where there is no such surviving spouse, or in respect of any period after the death of such a surviving spouse, and one eligible child, one third; (iv) where there is no such surviving spouse, or in respect of any period after the death of such a surviving spouse, and two or more eligible children, two thirds;
(b) in relation to other compensation, means one year;
(b) benefit under regulations under section 260 (provision for early retirement in lieu of compensation for loss of office) of the 1972 Act or a similar instrument; (c) compensation under any scheme under section 1 of the Superannuation Act 1972[38], or a similar instrument, on account of his retirement in the public interest; (d) compensation under an Act or under these Regulations or any other regulations under section 24 of the Superannuation Act 1972[39], or a similar instrument, on account of his ceasing to hold an employment with an authority for any of the reasons referred to in (a), (b) or (c), and in this definition "similar instrument" means any
instrument to similar effect made under any provision contained in any
other enactment;
(ii) paragraph (i) would have applied but for the fact that the employment was qualifying part-time employment within the meaning of Part IV of Schedule 2 to the Local Government Superannuation Regulations 1986[41]; and (b) any period of former employment ending before the person
concerned began the terminated employment, but only if any interval
between the end of that former employment and the beginning of the
terminated employment during which he was not employed by an employing
authority or a relevant Scottish employer was shorter than one month and
two days;
1. Part IV of these Regulations applies in relation to a person whose employment immediately before the termination date was wholly or mainly connected with the employing authority's functions as a harbour authority (as defined in section 57(1) of the Habours Act 1964[44] as if, in the definition (in Schedule 1) of "excepted payment", there were included "or a payment under an agreement made before 1st July 1984 in connection with the closure of a habour effected in the exercise of powers conferred by an Act of Parliament passed before that date". 2. In this Part of this Schedule "educational employment" means employment -
(b) at a school or institution without a delegated budget and which is maintained by a local education authority; (c) by a local authority otherwise than at a school or institution; (d) at a maintained school or institution with a delegated budget where that employment was concurrent with employment -
(ii) within paragraph (b); (e) at an institution conducted by a further education corporation or a
higher education corporation; 3. Part IV of these Regulations applies
with the modifications in paragraphs 4 to 6.
(ii) where the employment is within (b), (c) or (d) of paragraph 2, to the local education authority; (iii) where the employment is within (e) of paragraph 2, to the corporation; and (b) references in regulations 20(1), 21(4), (5) and (7), 25(2), 27,
28 and 31 to the employing authority shall be read as references to the
paying authority. 6. - (1) Unless either
sub-paragraph (2) or (3) makes different provision, the paying authority
in relation to an eligible person whose terminated employment was
educational employment is -
(b) the corporation, for employments within paragraph 2(e); (c) the governing body of the institution, for employments within paragraph 2(f). (2) Where -
(b) as the result of any amalgamation, merger or other arrangement, the institution becomes part of another ("the successor establishment") and ceases to have a separate governing body, the governing body of the successor establishment is the paying
authority.
(b) the institution closes and there is no successor establishment, the Secretary of State is the paying authority.
(b) accept from the governing body a single payment of a sum equal to the actuarial value of the total compensation payable; or (c) accept from them the payment of such sum by not more then five annual instalments.".
1. For the purposes of these Regulations, employment at a time before 25th July 1996 shall be regarded as employment with a Scheme employer, if the employer was at that time a body mentioned in column 1 of Part 2 of Schedule 1 (educational bodies) to the Local Government (Compensation for Premature Retirement) Regulations 1982[47]. 2. As respects any female employee who -
(b) duly elected under regulation 12(2) of the Local Government (Compensation for Premature Retirement) Regulations 1982 (similar elections and elections by unmarried women with potentially eligible children); or (c) immediately before 25th July 1996 was a person to whom regulation 12(3) of those Regulations applied, these Regulations have effect as if references in them to provisions in
the Pension Regulations were references to those provisions as modified by
the provisions of regulation 9 (women with membership before 6th April
1988) of the Transitional Regulations, by virtue of which her membership
is treated as membership after 5th April 1988. 1. In regulation 2(c) of the Education (Polytechnics and Colleges Funding Council) (Prescribed Expenditure) Regulations 1991[49], for "Parts II and III of the Local Government (Discretionary Payments) Regulations 1996", substitute "Parts II to V of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000". 2. In the 1995 Regulations -
(b) in regulation B19(2)(a), for "Part III of the Local Government (Discretionary Payments) Regulations 1996", substitute "Part IV of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000". 3. In the Local Government
Reorganisation (Compensation for Loss of Remuneration) Regulations 1995[51] -
(ii) in paragraph (d), for "Part IV of the Local Government (Discretionary Payments) Regulations 1996", substitute "Part III of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000"; and (b) in regulation 8(2) -
(ii) in paragraph (b), for "Part IV of the Local Government (Discretionary Payments) Regulations 1996", substitute "Part III of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000".
4. In regulation 3 of the Local
Government Pension Scheme (Augmentation) Regulations 1995[52],
for the words in paragraph (3) after "the 1982 Regulations,"
substitute -
5. In paragraph (3)(b) of regulation 12
(claims etc. in connection with contracts of employment) of the Local
Government Changes for England (Miscellaneous Provision) Regulations 1996[53],
for "Part IV of the Local Government (Discretionary Payments)
Regulations 1996", substitute "Part III of the Local Government
(Early Termination of Employment) (Discretionary Compensation) (England
and Wales) Regulations 2000".
(b) in paragraph (2)(a) of regulation 143 (conversion of periods credited under Discretionary Payments Regulations etc. into membership), by the insertion, immediately before "with a period", of "or Part IV of the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000".
(This note is not part of the Regulations) These Regulations consolidate, with drafting and other, minor, amendments, Parts II to IV of the Local Government (Discretionary Payments) Regulations 1996 ("the 1996 Regulations") and such provisions of Parts I and VII of those Regulations as are necessary for the purposes of Parts II to IV. They make provision for discretionary payments to persons whose local government employment is terminated by reason of redundancy or in the interests of the service (but not on ill-health grounds), or where a joint appointment comes to an end because one of the holders leaves. As a result of these Regulations, the 1996 Regulations now relate to injury allowances and gratuities as respects non-pensionable service. Part I (regulations 1 to 4) includes provisions relating to the interpretation and application of the Regulations. Many of the expressions used in the Regulations are defined in Schedule 1. Schedule 2 is relevant to the definition (in Schedule 1) of "appropriate percentage". Some expressions, which are also used in the Local Government Pension Scheme Regulations 1997 (referred to in these Regulations as "the Pension Regulations"), have the meanings given by Schedule 1 to those Regulations. Regulation 4(1) and (2) provides for the application of the Regulations to persons if they are eligible to be members of the Local Government Pension Scheme (whether or not they are, in fact, members). The Regulations apply to former harbour authority employees and to those employed in certain educational establishments (but not teachers) with the modifications specified in Schedule 3 (regulation 4(3)). Part II (regulation 5) allows for the payment of compensation to persons who are entitled to a redundancy payment under the Employment Rights Act 1996. Part III (regulation 6) allows for a lump sum compensation payment, whether or not the person is eligible for compensation under Part II. Part IV (regulations 7 to 11) provides an alternative form of compensation to that in Part III for persons aged 50 or more. It provides for the award of credited periods and the payment of lump sum and annual compensation. To be eligible under this Part, a person must be employed by a body listed in regulation 4(6) of, or Schedule 2 to, the Pension Regulations. Parts V to VII (regulations 12 to 19) provide for the adjustment of compensation where the person entitled to it receives other payments or enters or leaves a new employment. A change from the 1996 Regulations is that no specific method of abatement is provided by the regulations and it is for the employing authority to decide how to make the necessary adjustment. Part VIII (regulations 20 to 25) relates to surrenders of annual compensation and payments to surviving spouses and children on the death of a person entitled to compensation under Part IV. Part IX makes provision for -
(b) the supply of other information relevant to payments and adjustments under the Regulations (regulations 27 and 28); (c) the making of payments, the repayment of overpayments, and the payment of interest on late payments (regulations 29 and 30); and (d) for identifying the authority which is to make the payments (regulation 31). Part X contains miscellaneous and supplementary provisions. Regulation
33 prevents the cost of payments under the Regulations being charged to a
pension fund. Regulation 33 introduces the transitional provisions and
savings in Schedule 4. Regulation 34 introduces the consequential
amendments specified in Schedule 5. Regulation 35 revokes provisions of
the 1996 Regulations which are superseded by these Regulations and
provisions which have amended the 1996 Regulations. The Local Government
(Compensation for Redundancy) Regulations 1994 are also revoked. Notes: [1] 1972 c. 11. Section 24 was amended by the Police Pensions Act 1976 (c. 35), Schedule 2, paragraph 10.back [2] See section 227 of the Employment Rights Act 1996 (c. 18).back [5] See regulation 9(2) of the Pension Regulations.back [6] See regulation 10 of the Pension Regulations; amended by S.I. 1998/1238.back [7] See regulation 25(3) of the Pension Regulations.back [14] 1971 c. 56; see section 17(1).back [17] S.I. 1974/520; amended by other instruments listed in Part III of Schedule 20 to the Local Government Superannuation Regulations 1986 (1986/24).back [18] S.I. 1986/24; amended by other instruments listed in Schedule M5 to the Local Government Pension Scheme Regulations 1995 (S.I. 1995/(1019)).back [19] S.I. 1995/1019. Relevant definitions are in Schedule A1 to the 1995 Regulations. Amendments to Schedule A1 are not relevant to these Regulations.back [20] S.I. 1996/1680; amended by S.I. 1997/1613, 1998/559, 1999/502, 2311.back [21] Regulation 4(6) was amended by S.I. 1998/1238, S.I. 1999/1212, S.I. 2000/1164.back [24] S.I. 1986 c. 50. Section 1 was repealed by the Pension Schemes Act 1993 (c. 48), section 188 and Schedule 5.back [25] 1993 c. 48. Section 43 was amended by the Pension Schemes Act 1995 (c. 26), Schedule 5, paragraph 42.back [26] S.I. 1997/1612; amended by S.I. 1998/1238, 1999/1212 and 3438, 2000/1005, 1164.back [27] S.I. 1988/1652; a relevant amending instrument is S.I. 1995/2004.back [30] 1985 c. 6, section 736 was substituted by the Companies Act 1989 (c. 40), section 144.back [31] Schedule D1 continues to have effect as mentioned in S.I. 1997/1613.back [32] Paragraph 4 of Schedule D1 was amended by S.I. 1996/1428.back [33] See Schedule M4 to the Local Government Pension Scheme Regulations 1995 (S.I. 1995/1019).back [34] Regulation B1(15B) was omitted by S.I. 1988/466 with effect from 6th April 1988.back [35] Regulation B1(18) was omitted and Part IV of Schedule 2 amended by S.I. 1988/466.back [36] S.I. 1987/293; revoked by the 1995 Regulations.back [37] S.I. 1987/1850. "Scheduled body" is defined in Schedule 1.back [38] 1972 c.11. Section 1 was amended by the Pensions (Miscellaneous Provisions) Act 1990 (c. 7), section 8, and the Pension Schemes Act 1993 (c. 38), Schedule 8, paragraph 6.back [39] Section 24 was amended by the Police Pensions Act 1976 (c. 35), Schedule 2, paragraph 10.back [40] The definition of "admission agreement employee" was amended by S.I. 2000/1005.back [41] S.I. 1986/24; revoked by S.I. 1995/1019 with the exception of Parts K and L. Part K was amended by S.I. 1995/1019, Schedule M6, paragraphs 2 and 3 and by S.I. 1995/1497.back [42] S.I. 1987/293; revoked by the 1995 Regulations.back [43] S.I. 1997/1613; amended by S.I. 1998/2118, 1999/1212.back [47] S.I. 1986/24, revoked by S.I. 1998/1680.back [48] S.I. 1982/1009, revoked by S.I. 1996/1680.back [49] S.I. 1991/2307, amended by S.I. 1996/1680.back [50] Regulations B18 and B19 were inserted by S.I. 1995/2953 and amended by S.I. 1996/1680.back [51] S.I. 1995/2837, amended by S.I. 1996/1680.back [52] S.I. 1995/2953, amended by S.I. 1996/1680.back [53] S.I. 1996/330, amended by S.I. 1996/1680.back
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