BENEFITS
Preliminary
General qualification for benefits
18. - (1) Membership
of the Scheme entitles the member to benefits under this Chapter only if-
(2) Paragraph (1) does not apply-
Limit on total amount of benefits
18A. —(1) Except as provided in regulation 49(1) (SI2007/514), a member and any dependant of his shall not be entitled, under any provision of these Regulations, to receive benefits the capital value of which exceeds his lifetime allowance, increased where applicable by his primary protection or enhanced protection, except in accordance with guidance issued by the Government Actuary.
(2) In this regulation, "lifetime allowance", "primary protection" and "enhanced protection" are to be construed in accordance with section 218 of, and Schedule 36 to, the Finance Act 2004.
(3) Any calculation of the capital value of a member's benefits, for the purposes of this or any other regulation (SI2007/514), is to be carried out in accordance with guidance issued by the Government Actuary.
(SI2006/468)
Deduction of tax
18B. The appropriate administering authority is responsible for deducting from any payments of benefits under the Scheme any tax to
which they may become chargeable under the Finance Act 2004. (SI2006/468)
Calculations
19. - (1) The amount
of any benefit payable as a result of a person's membership is generally calculated
by multiplying his final pay by the appropriate multiplier.
(2) Unless another multiplier is indicated, the appropriate
multiplier for a pension is-
| the member's total membership. 80 |
(3) Unless another multiplier is indicated, the appropriate multiplier for
a retirement grant is-
| 3 × the member's total membership. 80 |
(3A) A member in respect of whom a benefit crystallisation event occurs on or after 1st October 2006 6th October 2006 (SI2006/514) may elect in writing to the appropriate administering authority before any benefits become payable to increase the retirement grant payable under paragraph (3) by commuting his pension, or a part thereof, at a rate of £12 for every £1 of annual pension entitlement surrendered (SI 2006/468) but the entitlement to the benefit shall not arise until the date on which a member’s appropriate administering authority receives the information it requires to calculate the increase (SI2007/514).
(3B) But the total amount of the member's retirement grant, including any sum received–
(a) in accordance with an election under paragraph (3A);
(b) as benefits provided in the form of a lump sum in accordance with regulation 63; or
(c) as additional lump sum benefits in accordance with regulation 65,
shall not exceed 25% of the capital value of his accrued rights. (SI 2006/468)
(3C) For the purposes of this regulation, a member's accrued rights include rights accrued in respect of any payments made by or
for him in accordance with Chapter IV of Part III (Additional Voluntary Contributions). (SI 2006/468)
(3D) The capital value of a person's accrued rights shall be calculated as shown in guidance issued by the Government Actuary. (SI 2006/468)
(3E) In paragraph (3A), "member" includes a deferred member to whom regulation 4 of the Local Government Pension Scheme (Transitional Provisions) (Scotland) Regulations 1998 (Deferred members and pensioners: general) applies. (SI 2006/468)
(4) However, benefits payable -
(a) to a pension debit member are adjusted as provided in regulation 19A, and
(b) on or after the death of a pensioner member are calculated by multiplying the amount of his former retirement pension by the multiplier specified for the benefit in question. (SI2001/23)
(4A) Where a benefit crystallisation event has not occurred before the day after a member's 65th birthday in respect of any
benefit payable under the Scheme, that benefit shall be increased at such a rate as is shown as appropriate in guidance issued by the
Government Actuary. (SI2006/468)
(4A) Benefits payable to a person who remains in service after his 65th birthday
as referred to in regulation 24A(1) 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 benefit is delayed between his
65th birthday and the date of his retirement. (SI2000/199) (SI2006/468)
(5) Unless otherwise indicated, references to the amounts
of pensions are to their annual rate.
(6) The amount of a deceased person's former retirement
pension is the amount of the pension he would have received immediately before
his death, but for-
(7) Periods are measured in years and fractions of
a year (calculated as specified in regulation 10).
(8) A pensioner member includes a person who would have
been entitled to a pension but for regulation 110
(application of abatement policy in individual cases).
(9) Paragraph (8) does not stop a person to whom it
applies from also counting as an active member.
Pension debit member (SI2001/23)
19A. - (1)
The amount of a pension or retirement grant payable (or, in the case of the
application of regulation 40(4), deemed to be payable)
to a pension debit member shall be reduced to take into account the debit to
which the shareable rights of the pension debit member are subject under a pension
sharing order.
(2) The amount of the reduction shall be calculated
in accordance with guidance issued for this purpose by the Government Actuary.
Final pay
20. - (1) A
member's final pay for an employment is his pay for as much of the final pay
period as he is entitled to count as active membership in local government employment
(but see paragraphs (3) to (10), regulations 21
and 22(2) and Schedule 4). (SI2006/468)
(2) A member's final pay period is the year ending with
the day on which he stops being an active member (but see paragraph (9) and
regulations 21 and 22).
(3) In the case of part-time employment, the final pay
is the pay which would have been paid for a single comparable whole-time employment.
(4) However, in calculating death grant or the rate
of surviving spouse's or civil partner's (SI2005/554)
or children's short-term pension payable on the death of an active member, actual
pay in part-time employment is to be used in part-time employment, the member's
final pay is his actual pay for his final pay period (SI2000/199).
(5) Any reduction or suspension of a member's pay during
the final period because of his absence from work owing to illness or injury
must be disregarded for this Chapter.
(6) If a member's final pay period includes reserve
forces service leave, his final pay is-
(a) in a case where he has paid contributions by virtue of regulation 16(4), the amount it would have been if his reserve forces pay were pay received in his former local government employment; or
(b) otherwise, the amount it would have been if he had continued to be employed in his former employment during the period of that leave.
(6A) For the purposes of this Chapter, a member's pay for any period of maternity, paternity or adoption absence during the final pay period in respect of which that member pays or is treated as paying contributions is the pay that member would have received had that member not been absent; (SI2005/293)
(7) If a member is absent from work for any other reason during his final
pay period, he is to be treated for this Chapter as having received the pay
he would otherwise have received only if he has made the appropriate contributions
under Chapter III for the period he is absent.
(8) If in any case where regulation
12(5) (collective pay agreements) applies to a member's pay during any part
of the final pay period- (SI2005/293)
(i) exceed by more than 50 per cent. the lower earnings limit at the end of that period, and
(ii) do not exceed the upper earnings limit at the end of that period; and
(b) his final pay would be greater if determined using those earnings,
it is to be determined using them.
(9) If a member is only entitled to count part of the
year specified in paragraph (2) as a period of active membership in relation
to the employment which he ceases to hold, his final pay is his pay during that
part multiplied by 365 and divided by the number of days in that part.
(10) Final pay does not include any pension in payment.
Other final pay periods
21. - (1) Where
the whole or part of a member's pay consists of fees, his final pay period for
them is not the period specified in regulation 20(2) but-
(2) However, if he was only entitled to receive fees
during part of the period mentioned in paragraph (1)(a), that part is substituted
for the period referred to in that paragraph.
(3) If a member has been absent from work during any
part of the year specified in regulation 20(2), his final
pay period is the last 365 days he is entitled to count as a period of active
membership.
(4) A member to whom paragraph (5) applies may elect
that instead of his final pay period being determined under regulation
20(2) or paragraph (1), (2) or (3) above, it should be-
(b) as respects so much of his pay as consists of fees, that period of three years.
(5) This paragraph applies to a member whose pay in
the period which he would elect as his final pay period if he made an election
under paragraph (4) is higher than his pay in a final pay period determined
under regulation 20(2) or paragraph (1), (2) or (3).
(6) Where paragraph (1) or (2) applies or a member elects
for the period specified in paragraph (4)(b), as respects so much of his pay
as consists of fees his final pay is the annual average of his fees during his
final pay period.
(7) An election under this regulation by a member must
be made by notice in writing given to the appropriate administering authority
before the expiry of the period of one month beginning with the day on which
he is notified of his entitlement to a benefit.
(8) Where a member has died without having made an election
under this regulation, the appropriate administering authority may make an election
on his behalf (whether or not the period within which he could have elected
has expired).
Permanent reductions in pay: certificates of protection of pension benefits
22. - (1) Where
a certificate has been issued as respects a member's pay under paragraph (3)
or (5) and the date of reduction or, as the case may be, restriction specified
in the certificate is not more than 10 years before the date on which he ceases
to be an active member, he may elect that his final pay period should be-
(a) a year ending with a day-
(b) any three consecutive years-
(2) Where a member elects for the period specified
in paragraph (1)(b), his final pay is the annual average of his pay during that
period.
(3) If, otherwise than by virtue of a member's own circumstances-
(a) his rate of pay is reduced; or
(b) the date at which it may be increased is restricted in such a way that it is likely that the rate of his retirement pension will be adversely affected,
he is entitled to be issued with a certificate to that effect by the employing
authority (but see paragraph (5)).
(4) A member is not entitled to be issued with a certificate
under this regulation if the reduction in his rate of pay-
(a) is temporary; or
(b) consists of the termination of, or a reduction in, a temporary increase in the rate of pay.
(5) The employing authority may issue a certificate
without an application from the member, but need not issue a certificate if
he does not apply for one within 12 months after the date of reduction or restriction.
(6) A certificate issued under this regulation must
specify the date of the reduction or restriction.
(7) The employing authority must send a copy of the
certificate to the member's appropriate administering authority.
(8) The employing authority must keep a record of the
certificate including such information as would be necessary for applying paragraph
(1) for the period of 10 years beginning with the date of reduction or restriction
specified in it.
(9) An election under this regulation by a member must
be made by notice in writing given to the appropriate administering authority
before the expiry of the period of one month beginning with the date on which
he is notified of his entitlement to a benefit.
(10) Where a member has died without having made an
election under this regulation, the appropriate administering authority may
make an election on his behalf (whether or not the period within which he could
have elected has expired).
Revenue limits
23. Schedule 4 contains restrictions on the amounts of benefits to which a member is
entitled under the Scheme.
(4) But the NRD of a member who was a member immediately before the commencement
date is-
(a) his 60th birthday if on the day before that day he has total membership of at least 25 years; or
(b) the day after the date on which he first has such total membership if that date is on or after his 60th birthday but before his 65th birthday.
(5) A member's "normal retirement age" is his age
on his NRD.
(6) If a member's NRD or normal retirement age needs
to be determined before he attains that age, it must be assumed that his local
government employment and membership of the Scheme will be continuous.(SI2006/514)
(SI2000/199) Retirement after age
65
24A. - (1) A member
who with the consent of his employing authority (SI2007/514) remains in service after his
65th birthday is entitled to a pension and retirement grant when he retires
from service in accordance with paragraph(2). (SI2006/468)
(2) The pension and retirement grant are payable immediately on retirement.(2) The pension and retirement grant are payable immediately on retirement or, if earlier, on the day before the member's 75th birthday. (SI2006/468)
(3) A member is not entitled to count any period of service on or after the day before his 75th birthday as a period of membership and is not an active member after that day. (SI2007/514)
(a) a member who is aged 50 or more retires from a local government employment; and
(b) his employing authority certify the reason for his retirement was his redundancy,
he is entitled to a pension and retirement grant.
(2) The pension and grant are payable immediately.
(3) However, a person who is notified under regulation
11 of the Local Government (Compensation for Redundancy or Premature Retirement
on Reorganisation) (Scotland) Regulations 1995 about compensation due because
regulation 7 of those Regulations applies to his retirement may waive his right
to immediate payment by notice in writing to his employing authority.
(4) In paragraph (1) "redundancy" includes retirement
in the interests of efficiency, or because the member held a joint appointment
which has been ended because the other holder has left it.
Ill-health
26. - (1) Where
a member leaves a local government employment by reason of being permanently
incapable of discharging efficiently the duties of that employment or any other
comparable employment with his employing authority (SI2000/199)
because of ill-health or infirmity of mind or body, he is entitled to an ill-health
pension and grant (but see paragraph (3)).
(2) The pension and grant are payable immediately.
(3) A member-
(a) whose total membership is at least one year, but less than two years; and
(b) to whom no transfer value is credited,
is entitled to an ill-health grant (but not a pension), unless paragraph (4)
applies to him.
(4) This paragraph applies to a member if-
(5) In paragraph (1)-
(a) the contractual provisions as to capacity either are the same or differ only to an extent that is reasonable given the nature of the member's ill-health or infirmity of mind or body; and
(b) the contractual provisions as to place, remuneration, hours of work, holiday entitlement, sickness or injury entitlement and other material terms do not differ substantially from those of the member's employment; and
"permanently incapable" means incapable until, at the earliest, the member's 65th birthday. (SI2000/199)(SI2005/293)
Amounts of ill-health pension and grant
27. - (1) Where
the member's total membership is at least five years the multiplier for an ill-health
pension or grant is by reference to the member's enhanced membership period
instead of his total membership.
(2) A member's enhanced membership period is-
(a) if his total membership is less than 10 years, twice his total membership;
(b) if his total membership is at least 10 years, but not more than 13 122/365 years, 20 years; and
(c) otherwise, his total membership plus 6 243/365 years.
(3) However, the enhanced membership period must not
exceed 40 years or (SI2007/514) the total membership the member would have had if he had
continued as an active member until he was 65 whichever is the shorter. (SI2007/514)
(4) If the member became entitled to ill-health benefits
under the Scheme before he was in the employment from which he has retired,
his enhanced membership period must be calculated by including in his total
membership his total membership in the previous employment. (SI2005/293)
(5) The maximum period which may be added to a member's
total membership to calculate his enhanced membership period in respect of all
his local government employment is 10 years.
(4) Where a member becomes entitled to a further ill-health pension and grant
(because of having been a member in two or more employments), the multiplier
for the further ill-health pension and grant will be the total membership without
enhancement. (SI2005/293)
(5) But paragraph (4) does not apply to a member who
becomes entitled to a further ill-health pension and grant as a result of being
in concurrent employments which cease simultaneously. (SI2005/293)
(6) Where membership includes membership in part-time
employment, the enhanced membership period must be calculated by first working
out what it would be if the employment were all whole-time, and then reducing
the resulting period by multiplying it (SI2005/293)
by the appropriate fraction (but see paragraph (9) but see paragraphs
(6A) and (9) (SI2005/293) ).
(6A) The member's enhanced membership period must not be reduced below that
which is calculated by reference to his membership in whole-time employment,
disregarding his membership in part-time employment. (SI2005/293)
(7) The appropriate fraction is the fraction of which
the numerator is the member's total membership and the denominator is the period
which would be his total membership if his employment had all been whole-time.
(8) In the case of a member in part-time employment
with non-cyclical fluctuating contractual hours, that fraction must be determined
by making separate calculations for each period over which averaging of the
member's hours occurs in calculating his contractual hours.
(9) If the member's total membership includes a period
of at least 13 121/365 13 122/365 (SI2000/199)
years in whole-time employment, paragraph (6) does not apply and his enhanced
membership period must be calculated by reference to that period of whole-time
employment.
(10) If a member is entitled under regulation
26(3) to an ill-health grant (but not a pension) the multiplier for the
grant is-
|
the member's total membership.
12 |
Re-employed pensioners (SI2005/293)
28. - (1) Where
a pensioner member becomes an active member again, his former membership shall
be taken into account only for the purpose of calculating-
(b) total membership in regulation 51 (power
of employing authority to increase total membership).
(SI2007/514)
(2) Where a member to whom benefits are paid in accordance with regulation 34(1A) continues to accrue membership after the date on which payment of such benefits takes effect (“the payment date”), his membership to the payment date shall only be taken into account after the payment date for the purposes of making the calculations referred to in paragraph (1)(a). (SI2007/514)
28. - (1) Where a member is entitled to two retirement
pensions because of being a member in two employments which were not concurrent,
he may elect for a single new pension.
(2) If he so elects, he becomes entitled to a single
retirement pension and retirement grant, each calculated by reference to the
augmented period (but see paragraph (7)).
(3) The augmented period is the member's total membership
in the later employment, increased by the period which would have been aggregated
if he had made an election under regulation 31(1) as respects
his earlier employment when he became an active member in his later employment.
(4) However, if the retirement pension from the earlier
employment was calculated using a longer period of membership than the period
which is the augmented period under paragraph (3), the longer period is the
augmented period for paragraph (2).
(5) No election may be made if the pension for the earlier
employment-
(6) The member must set off any retirement grant
he received because of his membership in the earlier employment ("the first
grant") against the retirement grant under this regulation and, if it was greater,
repay the difference between the grants to the new authority.
(7) For paragraph (6), the first grant includes the
amount by which it would have been increased under the Pensions (Increase) Act
1971 if it had become payable at the same time as the retirement grant under
this regulation.
(8) Any additional period which did not count in the
calculation of the first grant because of regulation
53(3) does not count in calculating the retirement grant under this regulation
either.
(9) Any surrender of the pension from the earlier employment
operates to the same extent on the single pension, but the surrendered pension
is payable by the new authority.
(10) Where the later retirement is one to which regulation
26 (ill-health) applies and the member does not become entitled to a single
pension-
Further provisions about elections under regulation 28
29. - (1) An
election under regulation 28 must be made by giving
notice in writing to the new authority.
(2) The new authority is the appropriate administering
authority for the pension from the later employment.
(3) The election must be made before the expiry of the
period of three months beginning with the date on which the member becomes entitled
to the pension for the later employment and has effect from that date.
(4) If a member does not repay any amount due under
regulation 28(6) before the expiry of the period of three months beginning
with the date on which he elects, his election is void (and so he is not entitled
to the single pension).
Other early leavers: deferred retirement benefits and elections for early
payment
30. - (1) If a
member leaves a local government employment (or is treated for these Regulations
as if he had done so) before he is entitled to the immediate payment of retirement
benefits (apart from this regulation), once he is aged 50 or more he may elect
to receive payment of them immediately.
(2) However, an election made by a member aged less
than 60 is ineffective without the consent of his employing authority or former
employing authority (but see paragraph (6)).
(3) If the member so elects, he is entitled to a pension
and retirement grant payable immediately.
(4) If the sum-
(a) of the member's age in whole years on the date on which his local government employment ends or the date on which he elects, if later; and
(b) of his total membership in whole years; and
(c) in a case where he elects after his local government employment ends, of the period beginning with the end of that employment and ending with the date on which he elects,
is less than 85 years, (SI2006/514) His retirement pension and grant must be reduced by
the amounts shown as appropriate in guidance issued from time to time by the
Government Actuary (but see regulation 35(5) (guaranteed minimum pensions)).
(5) A member's employing authority may determine on
compassionate grounds that his retirement pension and grant should not be reduced
under paragraph (4).
(6) If a member who has left a local government employment
before he is entitled to the immediate payment of a retirement benefits (apart
from this regulation) becomes permanently incapable of discharging efficiently
the duties of that employment because of ill-health or infirmity of mind or
body-
(a) he may elect under paragraph (1) whatever his age; and
(b) paragraphs (2) and (4) do not apply.
(7) Subject to paragraph (7A) (SI2006/468) if the member does not elect for immediate payment
under this regulation, he is entitled to receive a pension and grant payable
from his NRD without reduction without reduction, payable from his NRD or
such earlier date on or after his 60th birthday as the member elects provided
that the sum of the items referred to in sub-paragraphs (a) to (c) of paragraph
(4) is 85 years or more (SI2005/293). (SI2006/514)
(7A) A member who continues to be employed by a Scheme employer listed in Schedule 2 is only entitled to receive a pension and grant without reduction payable from his NRD if his employer consents to his doing so. (SI2006/468)
(8) An election under paragraph (1) must be made by
notice in writing to the member's employing authority or former employing authority.
Re-employed and rejoining deferred members
31. - (1) Subject to paragraph (1A) (SI2007/71), where
a deferred member becomes an active member again before becoming entitled to
the immediate payment of retirement benefits in respect of his former membership,
he may elect to have his former membership aggregated with his membership on
or after the date he becomes an active member again.
(1A) In the case of a deferred member who has been a councillor member, an election under paragraph (1) may only aggregate
councillor membership with former councillor membership and, as the case may be, membership which is not councillor membership with former membership which is not councillor membership. (SI2007/71)
(2) However, an election may be made by a Class B member
only as respects former Class B membership or Class C membership and an election
may be made by a Class C member only as respects former Class C membership. (SI2006/468)
(3) Where a member elects under paragraph (1)-
(4) Where an election under paragraph (1) is made
by a member who has ceased to be an active member more than once, the election
may be made as respects his total membership at each of the times he so ceased
or only as respects such of those periods of membership as are specified in
the election.
(5) Where a member who may elect under paragraph (1)
does not do so or does not elect as respects all periods of his membership-
(i) paragraph (3) does not apply,
(ii) he shall continue to be treated as a deferred member or, as the case may be, as a pensioner member (and not as an active member), and
(iii) he shall be entitled to the same rights as if he were not also an active member (but subject to regulation 33 and, in the case of a pensioner member, to regulation 28);
and references in these provisions to his appropriate administering authority
or appropriate fund shall be construed accordingly.
(6) For this regulation a period of membership is
an unaggregated period if-
(7) An election under paragraph (1) must be made by
notice in writing to the member's appropriate administering authority in the
employment in which he becomes an active member again whilst he is an active
member in that employment.
(8) If the appropriate fund for membership in the new
employment is different from that for any former employment as respects which
the member is making the election, the notice under paragraph (7) must also
be given to his appropriate administering authority in that former employment.
(9) References in this regulation to former membership
include all membership which the member was entitled to count as total membership
immediately before he ceased his former active membership (but excluding any
unaggregated period).
(10) Where a person ceases to be an active member in
one employment and immediately becomes an active member in another employment,
for paragraph (1) of this regulation he shall be treated as if he were a deferred
member as respects the first employment, despite never having ceased to be an
active member of the Scheme.
(11) In the case of a member who first becomes a member on or after 13th January
2000 any period of membership in the employment of a non-associated admission
body (as defined in regulation 4(16)(c)) shall
not be aggregated with any other periods of membership for the purpose of calculating
his retirement grant. (SI2000/199)
Concurrent employments (SI2005/293)
31A. - (1) Where
a person-
(a) ceases to be an active member in one employment in respect of which he had at least two years' total membership ("the first employment"); and
(b) continues as an active member in another employment he held concurrently with the first employment,
he may elect to have his former membership in respect of the first employment
aggregated with his membership in that other employment.
(2) If he so elects, the provisions of regulation
31 shall apply as if references to-
(3) If no election is received within one month of
a notification by an administering authority to a person of his right to elect
under paragraph (1), the administering authority may aggregate his former membership
in respect of the first employment with his membership in the other employment.
(4) In the case of a person to whom this regulation
applies, the period of membership which will be aggregated with his membership
from the concurrent employment will be equal to his membership from his first
employment, as reduced under regulation 10(4)
if the first employment was part-time, multiplied by the fraction-
| whole-time rate of pay in the first employment whole-time rate of pay in concurrent employment |
Surrenders of pension
32. - (1) A
member may apply to the appropriate administering authority to surrender part
of the retirement pension which is or may become payable to him, so that, if
he is survived by his spouse, civil partner (SI2005/554) or a dependant of his ("the beneficiary"), the equivalent value of that part
is paid instead to the beneficiary under this regulation.
(2) The application must be made in the period of one
month ending with or one month beginning with the date on which the member retires.
(3) The authority must allow the application if they
are satisfied the member is in good health.
(4) The surrender must not result in a pension being
paid to the beneficiary of less than such amount as is specified in guidance
issued for this paragraph by the Government Actuary.
(5) The aggregate amount surrendered must not-
(a) result in the reduction of the retirement pension to less than the pension which would become payable to the beneficiary; or
(b) exceed one third of the retirement pension.
(6) On the death of the member, the beneficiary becomes
entitled to a pension at a rate equivalent to the value of the surrender in
the beneficiary's favour at the time when the surrender was made. (SI2006/468)
(7) The equivalent rate is such rate as is indicated
in guidance issued by the Government Actuary.
(8) If the surrender is allowed, it has effect from
the date the member retires from his employment.
(9) However, it does not take effect if the beneficiary
or member dies before that date, and it ceases to have effect if the beneficiary
dies before the member.
No double entitlement
33. - (1) Where
(apart from this regulation) any member would be entitled to a pension or retirement
grant under two or more regulations by reason of the same period of membership-
(a) he may elect under which provision he is to be paid those benefits; and
(b) if he does not so elect, the employing authority may notify him in writing of the provision under which he is to be paid.
(2) An election by a member must be by notice in writing,
given to the employing authority before the expiry of the period of three months
beginning with the day on which he becomes entitled to elect.
(3) Paragraph (1) does not affect the member's rights
under the Pension Schemes Act 1993.
Requirements as to time of payment
34. - (1) Retirement
benefits under this Chapter may not be paid to a person before he has retired
from the employment in which he was a member.
(1A) But where, after
1st October 20066th October 2006 (SI2006/514), a member who has attained the age of 50, with his employer's consent, reduces the hours he works, or the grade in which he is employed, he may elect in writing to the appropriate administering authority for benefits to be paid and such benefits may, with his employer's consent, be paid to him notwithstanding that he has not retired from that employment. (SI 2006/468)(1B) If the payment of benefits referred to in paragraph (1A) takes effect before the member's 65th birthday, the benefits payable are reduced in accordance with guidance issued by the Government Actuary. (SI 2006/468)
(1C) But the employer may choose to waive, in whole or in part, any such reduction. (SI 2006/468)
(1D) Where the employer so chooses, it shall pay to the fund the cost incurred as a result of such waiver as calculated by the fund's actuary. (SI 2006/468)
(1E) Any benefits paid following an election under paragraph (1A) are not subject to abatement under regulation 110 in respect of any subsequent employment with the person who is his employer at the date of his election. (SI 2006/468)
(2) They must begin to be paid not later than the member's 75th birthday even if he has not retired (and see also regulation 35(3)).(2) In any event, retirement benefits under this Chapter must begin to be paid no later than the day before the member's 75th birthday even if he has not retired (and see regulation 35(3)). (SI2006/468)
Guaranteed minimum pensions etc.
35. - (1) Where
a member's local government employment is contracted-out employment and he has
a guaranteed minimum in relation to service before 6th April 1997, from the
date he attains state pensionable age he is entitled to a pension at a weekly
rate equal to not less than that guaranteed minimum.
(2) However, if the member attains state pensionable
age while in local government employment, he is not so entitled until he leaves
that employment, unless paragraph (3) applies.
(3) If the member-
(a) continues in the same employment for a further period of five years after attaining state pensionable age; and
(b) does not then leave,
he is entitled from the end of that period to so much of his retirement pension
as equals that guaranteed minimum (unless he consents to a postponement of the
entitlement).
(4) For the purposes of paragraph (1), a person has
a guaranteed minimum if he has such a minimum under section 14 of the Pension
Schemes Act 1993 in relation to benefits under these Regulations.
(5) A person's retirement pension is not to be reduced
under regulation 30(4) to less than the aggregate of-
(a) any minimum rate of equivalent pension benefits applicable under the Insurance Acts; and
(b) one eightieth of his final pay (expressed as an annual rate) multiplied by the length in years of the whole period of his membership in contracted-out employment during the period beginning with the relevant date and ending with 31st March 1996.
(6) In paragraphs (5) and (7) "the relevant date"
means-
(7) Where a person's local government employment is
or was contracted-out employment, a surrender under regulation 32 (together
with any previous surrenders) must not result in the annual rate of the retirement
pension being less than one eightieth of his final pay, multiplied by the length
in years of the whole period of his membership in contracted-out employment
beginning with the relevant date and ending with 31st March 1996.
(8) Where a person making a surrender under regulation
32 has a guaranteed minimum, the surrender (together with any previous surrenders)
must not result in the weekly rate of the retirement pension being less than
the guaranteed minimum.
(9) Where a person making a surrender under regulation
32-
references in paragraphs (7) and (8) to the retirement pension are references
to the retirement pension which would become payable if he ceased to hold his
employment on the day the surrender takes effect.
(SI2006/468)
(10) This regulation overrides any provision in these
Regulations to the extent to which it conflicts with it, except-
(a) regulation 48 (commutation: small pensions);
(b) regulation 110 (application of abatement policy in individual cases);
(c) regulation 111 (forfeiture); and
(d) regulation 112 (interim payments direction).
Revaluation of guaranteed minimum
36. - (1) Where
the guaranteed minimum of a person who has ceased to be an active member is
appropriately secured, his earnings factors for the purposes of section 14(2)
of the Pension Schemes Act 1993 must be determined-
(a) by reference to the last order under section 21 of the Social Security Pensions
Act 1975 or section 148 of the Social Security Administration Act 1992 (revaluation
orders) to come into force before the end of the tax year in which he ceased
to be an active member; and
(b) without reference to the last such order to come into force before the end
of the final relevant year.
(2) For such a person the weekly equivalent mentioned
in section 14(2) of the Pensions Schemes Act 1993 is to be increased-
(a) by at least the prescribed percentage for each relevant year after the end of the tax year in which he ceased to be an active member; and
(b) in accordance with such additional requirements as may be prescribed for the purposes of section 16(3) of that Act.
(3) In this regulation-
"prescribed percentage" has the meaning given in regulation 62 of the Occupational Pensions Schemes (Contracting-out) Regulations 1996;
"relevant year" and "final relevant year" have the meanings given respectively in sections 14(8) and 16(5) of the Pension Schemes Act 1993.
| (3 × his final pay)
|
× his total membership. |
(7) The multiplier for a deferred member's death grant
is the same as for his retirement grant.
(8) The multiplier for a pensioner member's death grant
is 5, but the amount so calculated is reduced by the amounts of any retirement
pension paid to him.
(8A) The multiplier for the death grant of a member who remains in service
after his 65th birthday as referred to in regulation 24A(1)
is whichever of-
| 3 × the member's total membership 80 |
(9) If the administering authority have not made payments
under paragraph (1) equalling in aggregate the member's death grant before the
expiry of the period of two years beginning with his death, they must pay an
amount equal to the shortfall to the member's executors.
(10) For these Regulations, any payments made under
paragraph (1) must be treated as payments made by way of death grant.
(11) In this regulation any reference to a member shall include a pension credit
member. (SI2001/23)
Reduction of death grants: re-employed pensioners
38. - (1) If-
the death grant payable because of his membership in the further employment
must be reduced (or extinguished) to the extent necessary to prevent his total
pension benefits exceeding (or further exceeding) his relevant final pay.
(2) A person's total pension benefits are the total
of-
(3) A person's relevant final pay is the greater
of-
(4) The pay for an employment must be adjusted
for inflation by calculating the amount to which it would have increased if
it were an official pension becoming payable from the end of that employment.
(SI2005/293)
(2) It is payable for three months after the member's
death.
(3) However, if there are eligible children in the spouse's
or civil partner's (SI2005/554) care,
it is payable for a further three months.
(4) Where the deceased was an active member, the
short-term pension is greater of-
| |
(4) Where the deceased was an active member, the short-term pension is the deceased's final pay. (SI2000/199)
(5) Where the deceased was a pensioner member, the
short-term pension is equal to his retirement pension immediately before the
death (but see regulation 41 ).
(6) In this regulation "pensioner member" includes a
person whose retirement pension has been commuted under regulation
49 (exceptional ill-health).
(7) If there is more than one surviving spouse, they
become jointly entitled under paragraph (1).
Surviving spouse's or civil partner's long-term pension (SI2005/554)
40. - (1) If
a member dies leaving a surviving spouse or civil partner (SI2005/554)
, the spouse or civil partner (SI2005/554)
is entitled to a spouse's or civil partner's (SI2005/554)
long-term pension.
(2) If the deceased was an active or pensioner member,
the long-term pension is payable from the end of the period for which the short-term
pension is payable.
(3) The long-term pension payable on a deferred member's
death is payable from the death.
(4) If the deceased was an active member with a total
membership of at least two years, the long-term pension is equal to half the
ill-health pension to which the deceased would have been entitled under regulation
26 if he had become entitled to a pension under that regulation on the date
he died.
(5) If the deceased was an active member with a total
membership of less than two years or a deferred member, the multiplier for the
long-term pension is-
| the deceased's total membership 160 |
(but see regulation 41 ).
(5A) But where the deceased was a member within a description in paragraph (5) and a pension debit member, the long-term pension shall be equal to half the pension to which the deceased would have been entitled under regulation 24 if he had become entitled to a pension under that regulation on the date that he died (but see regulation 41). (SI2001/23)
(6) If the deceased was a pensioner member, the long-term pension is equal
to half his retirement pension immediately before the death or half his pension before any commutation under regulation 19(3A), whichever is the greater (SI2006/468) (but see regulation
41 ).
(7) If there is more than one surviving spouse, they
become jointly entitled under paragraph (1).
Reduction of some surviving spouses' or civil partners' pensions (SI2005/554)
41. - (1) Where
a male pensioner member or deferred member marries and dies, the pension to
which his widow is entitled under regulation 39
or 40 is calculated as if his retirement pension were only
so much of his actual pension as is attributable to the period of his membership
in contracted-out employment after 5th April 1978.
(2) Except in the case of a short-term pension payable
to the widower of an active member, the pension to which a widower is entitled
under regulation 39 or 40
is calculated as if the member's retirement pension were only so much of her
actual pension as is attributable to her membership after 5th April 1988.
(3) However, relevant additional membership also counts
as membership after that date where the widower was married to the member at
some time while she was in local government employment after 31st March 1972.
(SI2000/199)
(3A) Except in the case of a short-term pension payable to the surviving civil
partner of an active member, the pension to which a surviving civil partner
is entitled under regulation 39 or 40 (surviving spouse's or civil partner's
short-term or long-term pension) is calculated as if the member's retirement
pension were only so much of his actual pension as is attributable to his membership
after 5th April 1988. (SI2005/554)
(3B) For the purpose of paragraph (3A) relevant additional
membership counts as membership after 5th April 1988. (SI2005/554)
(4) Relevant additional membership is membership-
(a) forming the enhanced element of a member's total membership by virtue of a retirement to which regulation 27 applied after 5th April 1988;
(b) added by virtue of a resolution under Chapter II of Part III or regulation 136 of these Regulations or under the Transitional Regulations after that date;
(c) counted by reason of a payment made under Chapter III of Part III or paragraph 7 of Schedule 4 after that date (or treated by the Transitional Regulations as so made);
(d) treated as membership after that date by virtue of the Transitional Regulations; or
(e) attributable to a transfer value accepted by the Scheme after that date.
Surviving spouse's or civil partner's guaranteed minimum pension (SI2005/554)
42. - (1) If
paragraph (2) applies, the pension to which a person is entitled under regulation
39 or 40 must be not less than the surviving spouse's
or civil partner's (SI2005/554) guaranteed
minimum.
(2) This paragraph applies if-
(3) Paragraph (1) overrides any contrary provision
in these Regulations except-
Meaning of "eligible child"
43. - (1)
The eligible child of a deceased member is-
(1) The eligible child of a deceased member is-
(a) the deceased's legitimate or adopted child; or
(b) a child who was wholly or mainly dependent on the deceased at the time of his death or, where the child is born after the member's death, who would have been so dependent if he had been born before or on the date of the deceased member's death;
but does not include a child who was born on or after the first anniversary
of the date of the deceased's death. (SI2005/293)
(2) Subject to paragraph (2A) (SI 2006/468) a person counts as a child only if-
(2A) Notwithstanding paragraph (2)(b), a pension coming into payment on or after 6th April 2006 which would otherwise be payable
by virtue of that paragraph shall only continue while the child is aged under 23. (SI2006/468)
(2B) Paragraph (2A) shall not apply where the member was a pensioner member on 5th April 2006 and the child was born on or before 5th April 2007. (SI2006/468)
(3) If an appropriate administering authority wish,
they may treat education or training as continuous despite a break.
Children's short-term pensions
44. - (1) If
an active or pensioner member dies leaving one or more eligible children, they
are entitled to a children's short-term pension.
(2) If a short-term pension is payable to a surviving
spouse or civil partner (SI2005/554)
under regulation 39 , the children's short-term
pension is payable only for three months after the death.
(3) Otherwise, it is payable for six months after the
death.
(4) Where the deceased was an active member, the
pension is the greater of-
| |
(4) Where the deceased was an active member, the pension is the deceased's final pay. (SI2000/199)
(5) Where the deceased was a pensioner member, the pension is equal to his
retirement pension immediately before the death.
(5A) But in the case of a pensioner member who was a pension debit member,
the pension shall be calculated by reference to the retirement pension to which
the deceased would have been entitled had his shareable rights not been subject
to a pension debit. (SI2001/23)
(6) Where, if a children's long-term pension and a surviving spouse's or civil
partner's (SI2005/554) long-term pension
were payable instead of short-term pensions, that would result in a greater
aggregate pension, long-term pensions shall be payable instead of short-term
pensions if the child is in the care of the surviving spouse or civil partner
(SI2005/554) (SI2000/199).
(7) Where-
(a) a children's short-term pension is payable for a child who is not in the care of a person to whom a short-term pension is payable (or would be payable apart from paragraph (6)); and
(b) a children's long-term pension would be greater,
the long-term pension shall be payable instead of the short-term pension.
(8) In this regulation "pensioner member" includes a
person whose retirement pension has been commuted under regulation
49 (commutation: exceptional ill-health).
Children's long-term pensions
45. - (1) If
a member dies leaving one or more eligible children, they are entitled to a
children's long-term pension.
(2) If the deceased was an active or pensioner member,
it is payable from the end of the period for which the short-term pension is
payable.
(3) The pension payable on a deferred member's death
is payable from the death.
(4) An eligible child ceases to be entitled to a long-term
pension when he ceases to be a child within regulation
43(2).
(5) If the deceased was an active member, the pension
is the appropriate fraction of the pension to which he would have been entitled
if on the date of death he had become entitled under regulation
26(1) (ill-health).
(6) If the deceased was a deferred member, the pension
is the appropriate fraction of the amount of the pension to which he would have
been entitled if on the date of death he had become entitled under regulation
24 (normal retirement).
(7) If the deceased was a pensioner member, the pension
is the appropriate fraction of his retirement pension or of his pension before any commutation under regulation 19(3A), whichever is the greater. (SI2006/468)
(7A) But in the case of a member referred to in paragraphs (5), (6) or (7) who was a pension debit member, the pension shall be calculated by reference to the pension to which the deceased would have been entitled had his shareable rights not been subject to a pension debit. (SI2001/23)
(8) If, apart from this paragraph the calculation of the long-term pension
would be based on a member's retirement pension calculated on the basis of membership
of less than-
(whichever is the shorter), then that period should be used instead in calculating
it.
(9) The appropriate fractions are-
(b) where there is more than one eligible child-
(10) If a child in full-time training for a trade,
profession or vocation is receiving pay at an annual rate exceeding the training
rate-
(a) the pension is reduced by the excess; but
(b) if the pension would be greater without the child, he need not be counted.
(11) In paragraph (10) "the training rate" means the
current annual rate of an official pension which began to be paid on 1st April
1994 at an annual rate of £1,450.
Discretion as to payment of children's pensions
46. - (1) If a
children's pension is payable for more than one eligible child, the appropriate
administering authority may apportion it amongst the children as they think
fit.
(2) The appropriate administering authority may pay
the whole or part of a children's pension to a person other than an eligible
child, to be applied for the benefit of one or more eligible children as the
authority direct.
Dependants of re-employed pensioners
47. - (1) If-
the benefits payable under the Scheme on his death (except short-term pensions)
and any surrendered benefits must be calculated in the case of each beneficiary
using whichever of assumptions A and B gives that beneficiary the more favourable
benefits.
(2) Assumption A is that the deceased did so retire
and assumption B is that he did so retire and so elect.
(3) An unreduced retirement pension is a pension which
is not reduced under regulation 30(4) (early leavers).
(4) If after a member became entitled to a relevant
pension, he entered further local government employment in which he died, the
benefits payable under the Scheme on his death (except short-term pensions)
must be calculated on assumption A.
(5) A relevant pension is a superannuation allowance
under Part I of the Act of 1937 or a pension under the former Regulations, a
local Act scheme, or a retirement pension under the 1974 Regulations, the 1987
Regulations or these Regulations, which was reduced or suspended on account
of the further employment.
(6) Where-
(a) a member dies in a new employment; and
(b) assuming he had retired from it on the date he died, he would have been entitled to a retirement pension under this Chapter (whether payable immediately or not),
the short-term pension under regulation 39
is the sum of-
(7) Where a member dies in a new employment, the
long-term pension under regulation 40 is the greater
of amount A or amount B.
(8) Amount A is half the sum of-
(9) Amount B is half the retirement pension to
which the member would have been entitled if on the date of death he had become
entitled under regulation 26(1) and had elected under regulation
28 for a single pension.
(10) Amount A and amount B are both to be calculated
on the basis that the retirement pensions have not been-
(a) reduced by virtue of a surrender under regulation
32; or
(b) increased under regulation 53 (effect of
increases under Chapter II of Part III for older members).
Commutation: small pensions
48. - (1)
If the annual rate of the retirement pension which a member who has attained
state pensionable age is entitled to be paid is not more than £260 or such higher
amount as may be prescribed from time to time by regulations made under section
21(1) of the Pension Schemes Act 1993, the appropriate administering authority
may pay him a lump sum representing the capital value of the pension. (SI2000/199)
(1) If the aggregate of the annual rate of the retirement
pension and the actuarial equivalent as an annual pension of any retirement
grant payable under these Regulations which a member is entitled to be paid
is not more than £260 or such higher sum as may be prescribed from time to time
by regulations made under section 21(1) of the Pensions Schemes Act 1993, the
appropriate administering authority may pay him a lump sum representing the
capital value of the pension. (SI2000/199)
(2) The appropriate administering authority may also pay a lump sum representing
the capital value of a long-term pension which is payable to any surviving spouse
or civil partner (SI2005/554) or to
or in respect of an eligible child or children, if the annual rate does not
exceed £260, or such higher amount as may be so prescribed. (SI2006/468)
(3) If a member is entitled to more than one retirement
pension under the Scheme or more than one long-term pension is payable under
the Scheme following a deceased member's death, a lump sum is payable only if
the aggregate amount payable to that member or following that death is less
than £260 or such higher amount as may be so prescribed.
(4) Any increase payable under the Pensions (Increase)
Act 1971 in respect of a pension must be included in its annual rate.
(5) The capital value of a pension must be calculated
as shown in guidance issued by the Government Actuary.
(6) Where a payment is made in respect of a retirement
pension, a payment representing the capital value of any long-term pension,
which would be payable to the member's spouse or civil partner (SI2005/554)
if that spouse or civil partner (SI2005/554)
survived the member, must also be made.
(7) The payment of a lump sum in respect of a pension
discharges the appropriate administering authority from their liability for
it and, where the payment is made to a member, for any short-term or long-term
pensions which may become payable on his death.
(8) The appropriate administering authority must deduct
from any payment under this regulation any tax to which they may become chargeable
under section 599 of the Taxes Act.
(1) Where a member has become entitled to a retirement pension and the capital value of that pension and of any benefits that might
otherwise have become payable on that member's death would be a trivial commutation lump sum as defined in paragraph 7 of Schedule
29 to the Finance Act 2004, the appropriate administering authority may pay to that member a lump sum representing such capital value.
(1) A lump sum which is a trivial commutation lump sum within the meaning of section 166 of the Finance Act 2004 or a trivial commutation lump sum death benefit within the meaning of section 168 of that Act may be paid in accordance with the rules relating to the payment of such benefits under that Act. (SI2007/514)
(2) No payment may be made under paragraph (1) if the pension includes a guaranteed minimum unless the member to whom it is paid has reached state pensionable age or any pension in respect of the guaranteed minimum is otherwise payable.
(3) Where a member has died and the capital value of any long-term pension which is payable to any surviving spouse or civil partner or to or in respect of an eligible child or children would be a trivial commutation lump sum death benefit as defined in paragraph 20 of Schedule 29 to the Finance Act 2004, the appropriate administering authority may pay to the dependant or dependants a lump sum representing such capital value. (SI2007/514)
(4) The capital value of a pension must be calculated as shown in guidance issued by the Government Actuary. (SI2006/468)
Commutation: exceptional ill-health
49. - (1) If,
when a retirement pension first becomes payable to a member, the appropriate
administering authority are satisfied that his life expectancy is less than
one year, they may pay him a lump sum equal to five times the amount by which
the annual rate of the retirement pension exceeds his guaranteed minimum of his annual rate of retirement pension, notwithstanding that such lump sum may exceed his lifetime allowance. (SI2007/514)
(1A) An administering authority cannot be satisfied as mentioned in paragraph (1) unless they have first obtained a certificate from a fully registered person within the meaning of the Medical Act 1983 to the effect that the member's life expectancy is less than one year. (SI2006/468)
(2) Such a payment discharges the authority's liability
for that pension (except the guaranteed minimum) (SI2006/468) and for any lump sum death
grant calculated by reference to that pension under the Scheme.
(3) The authority must deduct from any such payment
any tax to which they may become chargeable under section 599 of the Taxes Act. (SI2006/468)
| the member's total membership.
80 |
| the member's total membership. 12 |