The Local Government Pension Scheme (Amendment) (No. 2) Regulations 2007

• Citation: S.I. 2007/1488
• Sections: 16

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No.2) Regulations 2007.

(2) These Regulations apply in relation to England and Wales .

(3) These Regulations shall come into force on 21st June 2007 but—

(a) the amendments made by regulations 3, 4(2), 5 to 10 and 15 shall have effect from 6th April 2006,

(b) the amendment made by regulation 13 shall have effect from 1st April 2007,

(c) the amendments made by regulations 4(1) and 11, 12 and 14 shall have effect from 6th April 2007, and

(d) the amendments made by regulation 16 shall have effect from 1st April 2008.

Section 2 Amendments to the Local Government Pension Scheme Regulations 1997

The Local Government Pension Scheme Regulations 1997 shall be amended in accordance with regulations 3 to 15 of these Regulations.

Section 3 Members’ contributions

In regulation 12—

(a) in paragraph (1), omit “(but see regulation 15)”; and

(b) in paragraph (7) for “Regulations 16 to 18 affect” substitute “Regulations 17 and 18 affect”.

Section 4 Limits on total amount of benefits

(1) In regulation 19A(1) , at the beginning insert “Except as provided in regulation 50(1),”.

(2) In regulation 19A(3), after “member’s benefits” insert “for the purposes of this or any other regulation”.

Section 5 Calculations

In regulation 20(3A) , at the end add “but the entitlement to the benefit shall not arise until the date on which the member’s appropriate administering authority receives the information it requires to calculate the increase”.

Section 6 Revenue Limits

Omit regulation 24.

Section 7 Retirement after the normal retirement date

In regulation 25A —

(a) in paragraph (1), omit “with the consent of his employing authority”; and

(b) after paragraph (2) add —

(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.

Section 8 Amounts of ill-health pension and grant

In regulation 28(3), omit “40 years or” and “whichever is the shorter”.

Section 9 Re-employed pensioners

In regulation 29 —

(a) omit the word “and” after “enhanced membership period” and omit sub-paragraph (b); and

(b) add the following paragraph—

(2) Where a member to whom benefits are paid in accordance with regulation 35(1A) continues to accrue membership after the date on which payment of such benefits takes effect (“the payment date”), his membership prior to the payment date shall only be taken into account after the payment date for the purpose of making the calculations referred to in paragraph (1).

Section 10 Death Grant

In regulation 38(1) , after “If a member dies” insert “before his 75th birthday”.

Section 11 Commutation: small pensions

In regulation 49 —

(a) for paragraph (1) substitute the following paragraph—

(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.

(b) omit paragraphs (2) to (6);

(c) in paragraph (7), for “and, where the payment is made to a member, for any short-term or long-term pensions which may become payable on his death” substitute “or any other benefit payable under the Scheme in respect of the member”; and

(d) omit paragraph (8).

Section 12 Commutation: exceptional ill-health

In regulation 50(1), for “by which the annual rate of the retirement pension exceeds his guaranteed minimum” substitute “of his annual rate of retirement pension, notwithstanding that such lump sum may exceed his lifetime allowance”.

Section 13 Power of employing authority to increase total membership

In regulation 52(2)(a) , for “6 243/365 years” substitute “ten years”.

Section 14 Elections to pay AVCs

(1) In regulation 60—

(a) after paragraph (2), insert the following paragraphs—

(2A) An election may be made in respect of each employment in respect of which he is a member.

(2B) The maximum a person may specify under paragraph (2) in respect of each employment for which he makes such an election is 50 per cent of the remuneration of that employment or an amount equal to 50 per cent of the remuneration of that employment.

(b) in paragraph (3), for “It” substitute “The election”.

(2) In regulation 61(1), after the words “usual pay day” add “and must be paid from his pay”.

Section 15 Death benefits

In regulation 63(3), at the end add “and must meet the conditions imposed under Part 2 of Schedule 28 to the Finance Act 2004”.

Section 16 The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007

The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 shall be amended—

(a) in regulation 8, by inserting after paragraph (2) the following new paragraph—

(2A) But a member may choose instead to treat as his final pay period either of the two preceding years ending with a day that is the anniversary of the last day he was an active member.

(b) in regulation 10(1), by omitting the words “who is in whole-time employment and”.