# The Local Government Pension Scheme Regulations 2013

        - Previous
        - Next

E+W

Statutory Instruments

# 2013 No. 2356

Public Service Pensions, England And Wales

# The Local Government Pension Scheme Regulations 2013

Made

12th September 2013

Laid before Parliament

19th September 2013

Coming into force in accordance with regulation 1

These Regulations are made in exercise of the powers conferred by sections 7 and 12 of, and Schedule 3 to the Superannuation                           Act 1972 F1.                        

In accordance with section 7(5) of that Act, the Secretary of State consulted such associations of local authorities as appeared                           to the Secretary of State to be concerned; the local authorities with whom consultation appeared to the Secretary of State                           to be desirable; and such representatives of other persons likely to be affected by the Regulations as appeared to the Secretary                           of State to be appropriate.                        

The Secretary of State makes the following Regulations:

F11972 c. 11; section 12 was amended by the Pensions (Miscellaneous Provisions) Act 1990 (c. 7).

Modifications etc. (not altering text)

C1Regulations applied (with modifications) (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **12(2)(3)**

## **PART 1**E+WMembership, contributions and benefits

### Preliminary ProvisionsE+W

#### Citation, commencement and extentE+W

1.—(1) These Regulations may be cited as the Local Government Pension Scheme Regulations 2013 and save as is mentioned in paragraph                     (2), come into force on 1st April 2014.                  

(2) Regulation 2(3) and the definition of “actuarial guidance issued by the Secretary of State” in Schedule 1 (which require the                     Secretary of State to consult the Government Actuary's Department before issuing actuarial guidance) come into force on 1st                     November 2013 for the purpose of enabling the Secretary of State to consult the Government Actuary's Department and to issue                     guidance to have effect from 1st April 2014.                  

(3) These Regulations extend to England and Wales F2.                  

#### IntroductoryE+W

2.—(1) These Regulations establish a scheme for the payment of pensions and other benefits to or in respect of persons working in                     local government service, referred to in these Regulations as “the Scheme”.                  

(2) The Scheme manager responsible for the local administration of pensions and other benefits payable under these Regulations                     is referred to in these Regulations as the “administering authority”.                  

(3) The Secretary of State may, after consultation with the Government Actuary's Department, issue actuarial guidance to administering                     authorities.                  

(4) Schedule 1 (interpretation) contains definitions of expressions used in these Regulations which apply for their interpretation                     unless the context indicates that they have a different meaning.                  

### MembershipE+W

#### Ending active membershipE+W

#### Pensioner membersE+W

#### Pension credit and survivor membersE+W

### ContributionsE+W

#### ContributionsE+W

#### Contributions during child-related leaveE+W

#### Contributions during reserve forces service leaveE+W

#### Contributions during absence for illness etcE+W

#### Rights to return of contributionsE+W

#### Meaning of pensionable payE+W

### Pension accountsE+W

#### Active member's pension accountsE+W

#### Deferred member's pension account and deferred refund accountE+W

#### Retirement pension accounts : active membersE+W

#### Retirement pension accounts : deferred, deferred pensioner and pension credit membersE+W

#### Flexible retirement pension accountsE+W

#### Deferred pensioner member accountsE+W

#### Pension credit accountsE+W

### BenefitsE+W

#### Award of additional pensionE+W

#### Commutation and small pensionsE+W

### Ill-health retirementE+W

#### Early payment of retirement pension on ill-health grounds: active membersE+W

#### Special provision in respect of members receiving Tier 3 benefitsE+W

#### Early payment of retirement pension on ill-health grounds: deferred and deferred pensioner membersE+W

### Survivor benefitsE+W

#### Death grants: deferred members, pension credit members and deferred pensioner membersE+W

#### Death grants : pensioner membersE+W

### Adjustments of benefitsE+W

#### No double entitlementE+W

#### Pension debitsE+W

## **PART 2**E+WAdministration

### Administering authoritiesE+W

#### Admission agreement fundsE+W

#### Accounts and auditE+W

### Strategies, statements and reportsE+W

#### Pension administration strategyE+W

#### Statements of policy about exercise of discretionary functionsE+W

#### Statements of policy concerning communications with members and Scheme employersE+W

### Actuarial valuationsE+W

### PaymentsE+W

#### Employer's contributionsE+W

#### Additional costs arising from Scheme employer's level of performanceE+W

#### Interest on late payments by Scheme employersE+W

### DecisionsE+W

#### First instance decisionsE+W

Modifications etc. (not altering text)

C6Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), **regs. 1(3)**, 23

#### Notification of first instance decisionsE+W

Modifications etc. (not altering text)

C7Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Applications for adjudication of disagreementsE+W

Modifications etc. (not altering text)

C8Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Decisions of the adjudicatorE+W

Modifications etc. (not altering text)

C9Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Reference of adjudications to administering authorityE+W

Modifications etc. (not altering text)

C10Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Decisions of the administering authority on reconsiderationE+W

F431993 c. 48.

Modifications etc. (not altering text)

C11Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Rights of representationE+W

Modifications etc. (not altering text)

C12Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Appeals by administering authoritiesE+W

Modifications etc. (not altering text)

C13Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Exchange of informationE+W

Modifications etc. (not altering text)

C14Regs. 72-80 applied (1.4.2014) by The Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 (S.I. 2014/525), regs. 1(3), **23**

#### Interest on late payment of certain benefitsE+W

F442004 c. 12.

#### Payments due in respect of deceased personsE+W

F451965 c. 32; there are amendments to section 6 which are not relevant to this instrument.

#### Payments for persons incapable of managing their affairsE+W

#### Non-assignabilityE+W

F461986 c. 45; there are amendments to section 310 which are not relevant to this instrument. Section 310A was inserted by the Enterprise Act 2002 (c. 40).

#### Deduction and recovery of member's contributionsE+W

F471951 c. 65.

#### Joint liability in respect of annual allowance chargeE+W

F482004 c. 12; section 237B was inserted by the Finance Act 2011 (c. 11).

#### TaxE+W

#### Pension increase under the Pensions Schemes Act 1993E+W

F491993 c. 48.

#### Annual benefit statementsE+W

F502013 c. 25.

#### Information to be supplied by employeesE+W

### ForfeitureE+W

#### Forfeiture of pension rights after conviction for employment-related offencesE+W

#### Interim payments directionsE+W

#### Recovery or retention where former member has misconduct obligationE+W

#### Protection of guaranteed minimum pension rightsE+W

### TransfersE+W

#### Contracting-out requirements affecting transfers outE+W

#### Bulk transfer (transfers of undertakings etc)E+W

#### Calculation of amount of transfer paymentE+W

Signed by authority of the Secretary of State for Communities and Local Government

Brandon Lewis

 Parliamentary Under Secretary of State

 Department for Communities and Local Government

12th September 2013

# SCHEDULES

 Regulation 2

## SCHEDULE 1E+WInterpretation

### 

          -  “active member” means a person who is in an employment, and—                          (a)
paying contributions to the Scheme,
(b)
treated as paying contributions to the Scheme, or
(c)
absent from that employment for one of the reasons mentioned in regulation 11;
 
          -  “actuarial guidance issued by the Secretary of State” means guidance identified by the Secretary of State as such which has been issued in accordance with regulation 2(3);                         
          -  “additional maternity or adoption leave” means leave under section 73 or 75B of the Employment Rights Act 1996 F56;                         
          -  “additional paternity leave” means leave under the Additional Paternity Leave Regulations 2010 F57;                         
          -  “additional pension” means pension under these Regulations other than earned pension;                         
          -  “administering authority” means a body listed in Part 1 of Schedule 3 which is required to hold a fund for the purposes of these Regulations;                         
          -  “admission agreement” means an agreement between an administering authority and an admission body that named individuals, or all or any specified                           class of the admission body's employees, may be members of the Scheme;                         
          -  “admission body” has the meaning given in paragraph 1 of Part 3 of Schedule 2;                         
          -  “amount of accrued pension” means the earned pension in a member's pension account adjusted to take account of any revaluation adjustment applicable;                         
          -  “amount of pension payable” means the earned and additional pension in a member's pension account adjusted to take account of any revaluation adjustment,                           index rate adjustment, commutation amount or pension account adjustment applicable;                         
          -  “annual allowance charge” has the meaning given to that expression by section 227 of the Finance Act 2004 F58;                         
          -  “assumed pensionable pay” has the meaning given by regulation 21;                         
          -  “automatic enrolment date” means the automatic enrolment date within the meaning of section 3 of the Pensions Act 2008 F59;                         
          -  “automatic re-enrolment date” means the automatic re-enrolment date chosen by a member's employer in accordance with section 5 of the Pensions Act 2008                           F60 and regulation 12 of the Occupational and Personal Pensions Schemes (Automatic Enrolment) Regulations 2010 F61 for those of its eligible jobholders who are not active members (or the date the employer would have chosen if the employer                           does not have any such employees);                         
          -  “AVC” means a payment of additional voluntary contributions made under regulation 17;                         
          -  “base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one                           such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth                           in the sequence;                         
          -  “benefit crystallisation event” has the meaning given by section 216 of the Finance Act 2004 F62;                         
          -  “child-related leave” means—                          (a)
ordinary adoption leave;
(b)
ordinary maternity leave;
(c)
additional maternity or adoption leave during which the member receives some pensionable pay;
(d)
paternity leave; or
(e)
additional paternity leave during which the member receives some pensionable pay.
 
          -  “children's pension” means a pension payable to an eligible child in accordance with regulation 42, 45 or 48;                         
          -  “commutation amount” means the amount of pension a member has elected to give up in return for a lump sum in accordance with regulation 33;                         
          -  “cohabiting partner” means a person whom the appropriate administering authority is satisfied fulfils the following conditions—                          (a)
the person (P) has fulfilled the condition in paragraph (b) for a continuous period of at least 2 years on the date the member                                    (M) died, and                                 
(b)
the condition is that—
(i)
M is able to marry, or form a civil partnership with P,
(ii)
M and P are living together as if they were husband and wife or as if they were civil partners,
(iii)
neither M nor P is living with a third person as if they were husband and wife or as if they were civil partners, and
(iv)
either P is financially dependent on M, or M and P are financially interdependent;
 
          -  “deferred member” has the meaning given by regulation 6;                         
          -  “deferred payment enhancement” means the amount by which a member's entitlement is increased pursuant to regulation 30(4) or (11);                         
          -  “deferred pensioner member” has the meaning given by regulation 6;                         
          -  “dependent” in relation to a person means that in the opinion of the administering authority, at the date of the member's death—                          (a)
the person was financially dependent on the member,
(b)
the person's financial relationship with the member was one of mutual dependence, or
(c)
the person was dependent on the member because of physical or mental impairment;
 
          -  “early payment reduction” means the amount by which a member's entitlement is reduced pursuant to regulation 30(5), (6) or (12);                         
          -  “earned pension” means pension accrued from the member's pensionable pay pursuant to regulation 23(4) or (5) or credited pursuant to regulation                           101(1) (effect of acceptance of transfer value).                         
          -  “eligible child”, in relation to a deceased member, means—                          (a)
a natural or adopted child of a member who meets any of conditions A to C and who was born before, on, or in the case of a                                    natural child, within 12 months of the member's death; or                                 
(b)
a step-child or child accepted by the deceased as a member of the family (excluding a child sponsored by the member through                                    a registered charity) who—                                 
(i)
meets any of conditions A to C; and
(ii)
was dependent on the member at the date of death.
 
          -  Condition A is that the person is aged under 18. 
          -  Condition B is that the person is in full-time education or vocational training and has not reached the age of 23 (but an                           administering authority may continue to treat a person as fulfilling Condition B notwithstanding any break in a course of                           education or vocational training, although the person does not fulfil Condition B during such a break).                         
          -  Condition C is that the person is unable to engage in gainful employment because of physical or mental impairment and either—  (i)
has not reached the age of 23; or
(ii)
the impairment is in the opinion of an IRMP likely to be permanent and the person was dependent on the member at the date                                       of the member's death because of that physical or mental impairment.                                    
 
          -  “European pensions institution” has the same meaning as in section 293(8) of the Pensions Act 2004 F63                         
          -  “gainful employment” means paid employment for not less than 30 hours in each week for a period of not less than 12 months;                         
          -  “index rate adjustment” means the percentage increase that would apply if the balance in the member's account were a pension in payment eligible                           for increase under the Pensions (Increase) Act 1971 F64;                         
          -  “IRMP” means an independent registered medical practitioner who is registered with the General Medical Council and—                          (a)
holds a diploma in occupational health medicine (D Occ Med) or an equivalent qualification issued by a competent authority                                    in an EEA state; and for the purposes of this definition, “competent authority” has the meaning given by section 55(1) of the Medical Act 1983 F65; or                                 
(b)
is an Associate, a Member or a Fellow of the Faculty of Occupational Medicine or an equivalent institution of an EEA state;
 
          -  “joint liability amount” has the meaning given to that expression by section 237B(3) of the Finance Act 2004 F66;                         
          -  “local government service” means an employment by virtue of which the person employed is or has been a member of the Scheme;                         
          -  “membership” is to be construed in accordance with section 124(1) of the Pensions Act 1995 F67                         
          -  “normal pension age” means the pensionable age of a person as specified from time to time in Schedule 4 to the Pensions Act 1995 F68, or if higher, age 65.                         
          -  “occupational pension scheme” has the meaning given by section 1 of the Pensions Schemes Act 1993 F69;                         
          -  “ordinary adoption leave” means leave under section 75A of the Employment Rights Act 1996 F70;                         
          -  “ordinary maternity leave” means leave under section 71 of the Employment Rights Act 1996;                         
          -  “partner” in relation to an active member means a spouse, civil partner or cohabiting partner;                         
          -  “paternity leave” means leave under regulation 4 or 8 of the Paternity and Adoption Leave Regulations 2002 F71;                         
          -  “payment period” means a period of service to which an employee's wages or salary payments relate;                         
          -  “pensionable age” has the meaning given in section 181 of the Pension Schemes Act 1993;                         
          -  “pensionable pay” has the meaning given by regulation 20 but if the circumstances specified in regulation 21(2) apply, references in these                           Regulations to a member's pensionable pay are references to that member's assumed pensionable pay;                         
          -  “pension account” means an account of the description in regulation 22.                         
          -  “pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 F72;                         
          -  “pension credit member” has the meaning given by regulation 8(1);                         
          -  “pension debit” means a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999;                         
          -  “pensioner member” has the meaning given by regulation 7(1);                         
          -  “pensions board” means a board or committee established by an administering authority to discharge functions under regulation 53(4);                         
          -  “pension sharing order” means any provision or order specified in section 28 of the Welfare Reform and Pensions Act 1999;                         
          -  “Pensions Regulator” means the body corporate established under section 1 of the Pensions Act 2004 F73                         
          -  “permanently incapable” means that the member will, more likely than not, be incapable until at the earliest, the member's normal pension age;                         
          -  “public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993 F74;                         
          -  “qualifying recognised overseas pension scheme” has the meaning given by section 169(2) of the Finance Act 2004 F75;                         
          -  “qualifying service for a period of two years” has the meaning given by regulation 3(7);                         
          -  “reference banks” means the seven largest persons for the time being who—                          (a)
have permission under Part 4A of the Financial Services and Markets Act 2000 F76 to accept deposits;                                 
(b)
are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and
(c)
quote a base rate in sterling,
  and for the purposes of this definition, the size of the person at any time is to be determined by reference to the gross                           assets denominated in sterling of that person, together with any subsidiary (as defined in section 1159 of the Companies Act                           2006 F77), as shown in the audited end-of-year accounts last published before that time;                         
          -  “registered pension scheme” has the same meaning as in section 150(2) of the Finance Act 2004 F78;                         
          -  “reserve forces pay” means the total of—                          (a)
pay for performing relevant reserve forces service (including marriage, family and similar allowances), and
(b)
any payments under Part 5 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 F79;                                 
 
          -  “reserve forces service leave” means absence from duty because of being called out or recalled for permanent service in Her Majesty's armed forces pursuant                           to a call-out notice served, or a call-out or recall order made, under the Reserve Forces Act 1996 F80;                         
          -  “retirement pension” includes earned pension and additional pension;                         
          -  “revaluation adjustment” means the percentage specified in the relevant Treasury order made under section 9(2) of the Public Service Pensions Act                           2013 F81 which is to be applied to the sum in a pension account at the beginning of the next scheme year;                         
          -  “the Scheme” means the scheme established by these Regulations;                         
          -  “Scheme employer” means a body listed in Schedule 2 employing an employee who is eligible to be a member and includes an admission body;                         
          -  “Scheme employer's consent” includes the consent of the appropriate administering authority in circumstances where the member's former employer is no                           longer a Scheme employer;                         
          -  “Scheme employment” means an employment by virtue of which a person is entitled to be a member of this Scheme;                         
          -  “Scheme pays election” means a member giving the administering authority notice of joint and several liability under section 237B of the Finance                           Act 2004 F82 in respect of the member's annual allowance charge;                         
          -  “Scheme year” means a period of one year beginning with 1st April and ending with 31st March;                         
          -  “statutory pay” means any statutory maternity, paternity or adoption pay payable under the Social Security Contributions and Benefits Act                           1992 F83;                         
          -  “survivor member” means a person entitled to a survivor pension or a children's pension;                         
          -  “survivor pension” means a pension payable under regulations 41, 42, 44, 45, 47 or 48;                         
          -  “SVAVC” means an arrangement established under regulation 17 to which both the Scheme employer and the active member contribute;                         
          -  “Tier 1 benefits” has the meaning given by regulation 35(5) calculated in accordance with regulation 39;                         
          -  “Tier 2 benefits” has the meaning given by regulation 35(6) calculated in accordance with regulation 39;                         
          -  “Tier 3 benefits” has the meaning given by regulation 35(7) calculated in accordance with regulation 39;                         
          -  “trade dispute” has the meaning given in section 218 of the Trade Union and Labour Relations (Consolidation) Act 1992 F84;                         
          -  “transferred in benefit” means a benefit in a member's pension account deriving from a transfer value payment;                         
          -  “transfer value payment” means a payment made from the Scheme to another registered pension scheme or qualifying recognised overseas pension scheme,                           or a payment received by the Scheme from a registered pension scheme or from a European pensions institution.                         

 Regulation 3

## SCHEDULE 2E+WScheme employers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Regulation 53

## SCHEDULE 3E+WPension funds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

## Explanatory Note

(This note is not part of the Regulations)

These regulations (“the Regulations”) introduce a new local government pension scheme (“the Scheme”) which is to come into existence on 1st April 2014 and replace the local government pension scheme constituted by the Local                        Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 (S.I. 2007/1166) and the Local Government                        Pension Scheme (Administration) Regulations 2008 (S.I. 2008/239) (“the 2008 Scheme”). In contrast to the 2008 Scheme which was a final salary pension scheme in which unreduced benefits were payable to members                        from the age of 65, the Scheme provides for members to accrue pension on a career average revalued earnings basis and for                        unreduced benefits to be payable from their state pension age.                     

Part 1 of the Regulations sets out provisions relating to benefits, membership and contributions.

Regulations 3 to 8 set out the rules for eligibility for membership and the different categories of member.

Regulations 9 to 21 set out the rules for contributions and include provision known as the “50/50” option which enables members                        to elect to pay half the usual rate of contribution and to accrue benefits at half the usual rate. Regulations 16 and 17 make                        provision for the purchase of additional benefits. Provision is also made for the payment or crediting of contributions during                        absences from work and for the calculation of an assumed level of pensionable pay during such absences.                     

Regulations 22 to 29 provide for the creation and maintenance of pension accounts.

Regulations 30 to 52 provide for the payment of benefits to members and their survivors.

Part 2 of the Regulations sets out provisions relating to the administration of the Scheme.

Regulations 53 to 71 provide for management of the Scheme including the obtaining of actuarial valuations and the calculation                        of employer contributions.                     

Regulations 72 to 90 provide for the making and notification of decisions and for challenges to those decisions, and for the                        supply of relevant information to enable decisions to be taken.                     

Regulations 91 to 96 set out provisions for forfeiture of benefits.

Regulations 96 to 103 set out provisions relating to transfers between funds.

Schedule 1 contains definitions.

Schedule 2 sets out who can be Scheme employers and makes provision relating to admission agreements between employers who                        are not listed within the Schedule and administering authorities.                     

Schedule 3 sets out who must maintain a fund for the Scheme, and is thus an administering authority and contains provision                        identifying who is the appropriate administering authority for the employees of any particular Scheme employer.                     

A regulatory impact assessment has been produced for these Regulations and is available at https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/local-government-pensions.