PENSIONS, ENGLAND AND WALES Citation, commencement, interpretation and application 1 1 These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2006. 2 These Regulations apply in relation to England and Wales . 3 These Regulations shall come into force on 1st October 2006, but— a the amendment made by regulation 16 has effect from 29th March 2006; b the amendment made by regulation 5 has effect from 1st April 2006; and c the amendments made by regulations 3, 4, 6, 7, 8, 9, 10, 11, 15, 17 and 18 have effect from 6th April 2006. 4 In these Regulations, “the principal Regulations ” means the Local Government Pension Scheme Regulations 1997 . Amendment of Regulations 2 The principal Regulations shall be amended in accordance with regulations 3 to 15 and 17 of these Regulations. High earners 3 1 In regulation 11A(1), for the words “where a member’s pay” substitute “to a member who was subject to regulation 16(1) immediately before 6th April 2006 and whose pay”. 2 In regulation 11A(2), omit the words “entitlement to any”. 3 For regulation 11A(3), substitute— 3 That formula is (M times 105,600 divided by P) + T, where M is his period of membership after 5th April 1989 and before 6th April 2006 (excluding any membership credited by virtue of a transfer under regulation 121), P is his pay as mentioned in paragraph (1), and T is the aggregate of his period of membership before 6th April 1989 and any membership credited by virtue of a transfer under regulation 121. . Limit on total amount of benefits 4 In regulation 19A(1) at the end insert “except in accordance with guidance issued by the Government Actuary”. Calculations 5 1 In regulation 20, for paragraph (3B) substitute— 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 64; or c as additional lump sum benefits in accordance with regulation 66, shall not exceed 25% of the capital value of his accrued rights. . 2 In regulation 20(3C), for the words “made by him” substitute “made by or for him”. 3 After regulation 20(3D), insert— 3E In paragraph (3A), “member” includes a deferred member to whom regulations 4 and 18A of the Local Government Pension Scheme (Transitional Provisions) Regulations 1997 (Deferred members and pensioners: general) applies. 3F A member may make an election under paragraph (3A) in respect of his pension, or any part thereof, payable by virtue of an election under regulation 66 (Elections as to use of accumulated value of AVCs) notwithstanding any provision to the contrary in the former provisions of regulation 66 treated as continuing to have effect under paragraph (8) of that regulation. . Requirements as to time of payment 6 In regulation 35(1A), after the words “such benefits may”, insert “,with his employer’s consent,”. Children’s long-term pensions 7 In regulation 46(7), at the end insert “or of his pension before any commutation under regulation 20(3A), whichever is the greater”. Power of employing authority to increase total membership 8 In regulation 52(11), for the words “1st October 2006” substitute “1st April 2008”. Retirement benefits 9 Omit regulation 64(6). Elections as to use of accumulated value of AVCs 10 Omit regulation 66(6). Employer’s further payments 11 In regulation 80(5), for the words “or 31(6)” substitute “31(6) or 35(1A)”. Statements of policy concerning exercise of discretionary functions 12 In regulation 106, after the words “regulation 31 (early leavers)”, insert “,35 (requirements as to time of payment)”. Right to count credited period 13 In regulation 122, in paragraphs (6C) and (6D), for the words “1st October 2006” substitute “1st April 2008”. Credited periods for transferring members with mis-sold pension rights 14 In regulation 122A(1), at the end of paragraph (1) add “(and regulation 122(6C) does not apply to a transfer value credited under this regulation)”. Councillor members 15 In Schedule 8, after paragraph 20(2), insert— 2A A councillor member in respect of whom a benefit crystallisation event occurs on or after 6th April 2006 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. 2B But the total amount of the member’s retirement grant, including any sum received in accordance with an election under paragraph (3A), shall not exceed 25% of the capital value of his accrued rights. 2C For the purposes of this regulation, a member’s accrued rights include rights accrued in respect of any payments made by him in accordance with Chapter IV of Part III (Additional Voluntary Contributions). 2D The capital value of a member’s accrued rights shall be calculated as shown in guidance issued by the Government Actuary. . Amendment of the Local Government Pension Scheme (Amendment) Regulations 2006 16 Omit regulation 42 of the Local Government Pension Scheme (Amendment) Regulations 2006 . Transitional provisions and savings 17 The Schedule to the Local Government Pension Scheme (Amendment) Regulations 2006 (Transitional provisions and savings) shall be amended as follows— a for “2013” in paragraph 2, in both places where it occurs, substitute “2016”; b for “1st October 2006” in paragraphs 2(b), 3(d) and 5(3) substitute “1st April 2008; c in paragraph 5(1), after “member” insert “who was an active member before 1st October 2006”; d after paragraph 5 insert— 6 1 This paragraph applies to a member who retires, having reached the age of 60, on or after 1st April 2016 and before 1st April 2020, and who would (but for the provisions of paragraphs 1 and 2) have satisfied the 85 year rule before the latter date. 2 That part of his retirement pension and grant which is calculated by reference to any period of membership after 31st March 2008 shall be reduced in accordance with guidance issued by the Government Actuary. . Right to opt out 18 1 Where— a apart from this regulation, the amendments made by these Regulations would place any relevant beneficiary in a worse position that he would otherwise be, and b that relevant beneficiary so elects by notice in writing given to the appropriate administering authority within the period of six months beginning with 1st October 2006, then the principal Regulations shall have effect in relation to him as if those amendments had never been made. 2 For the purposes of paragraph (1), a relevant beneficiary is a person to whom any benefit is or may become payable being a benefit payable to or in respect of a person who— a ceased to hold any employment in respect of which he was a member (whether or not he had subsequently recommenced any such employment), or b dies while in such employment, before— i 1st April 2006, in respect of amendments made by regulation 5; ii 6th April 2006, in respect of amendments made by regulations 3, 4, 6, 7, 8, 9, 10, 15, 17 and 18; and iii 1st October 2006, in respect of amendments made by regulations 11, 12, 13 and 14. Signed by authority of the Secretary of State Angela Smith Parliamentary Under Secretary of State Department for Communities and Local Government 24th July 2006