Citation, extent and commencement

1.  (1)  These Regulations may be cited as the Local Government Pension Scheme (Miscellaneous Amendments) Regulations 2014.

(2) These Regulations extend to England and Wales(2).

(3) These Regulations shall come into force on 10th February 2014 but-

(a)Regulations 2 and 3 have effect from 1st April 2013;

(b)the provisions inserted by regulations 4 and 5 relating to the Housing Ombudsman, have effect from 2nd April 2013;

(c)the revocation of paragraphs (3A) to (3G) of regulation 38 of the Local Government Pension Scheme (Administration) Regulations 2008(3), effected by the substitution of regulation 38 by regulation 7 of these Regulations, has effect from 1st April 2012.

Amendment of the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007

2.  The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007(4) are amended in accordance with regulation 3.

3.  In regulation 39(1)(c) (commutation: small pensions) for "regulation 6 (payment after relevant accretion)" substitute "regulations 6 (payment after relevant accretion), 11 (de minimis rule for pension schemes) or 12 (payments by larger pension schemes)".

Amendment of the Local Government Pension Scheme (Administration) Regulations 2008

4.  The Local Government Pension Scheme (Administration) Regulations 2008 are amended in accordance with regulations 5 to 7.

5.  In regulation 9 (eligibility in certain cases of persons who are not employees)-

(a)in paragraph (1) omit the word "or" at the end of sub-paragraph (f) and after sub-paragraph (g) insert-

"; or

(h)the Housing Ombudsman.";

(b)after paragraph (7A) insert-

"(7B) If the Housing Ombudsman is an active member, that Ombudsman must be treated as being in the employment of the Housing Ombudsman but any decision by the Ombudsman in the capacity of employing authority which affects the benefits to which the Ombudsman is or may be entitled, has effect only if confirmed in writing by the person who is chair of the Housing Ombudsman's Audit and Risk Committee(5).";

(c)in paragraph (8) at the end insert-

"Housing Ombudsman" means an individual appointed as housing ombudsman by the Secretary of State under Schedule 2 to the Housing Act 1996(6); and

"Housing Ombudsman Service" means a scheme for the investigation of complaints approved by the Secretary of State under that Act.".

6.  (1)  For regulation 13(3) (joining the Scheme) substitute-

"(3) But a person who, in respect of an employment, has given notice to his or her employer before 1st October 2012-

(a)before that person's employment commenced, or before that person was designated as eligible to become a member of the Scheme, that he or she did not wish to become a member of the Scheme; or

(b)under regulation 14 (ending of membership),

does not become a member of the Scheme by virtue of paragraph (1) or (2).".

(2) For regulation 13(4) substitute-

"(4) A person who would, apart from this paragraph, be an active member of the Scheme by virtue of paragraph (1) or (2) who is employed under a contract of employment of less than 3 months does not become a member on the day specified in paragraph (1) or (2) but becomes an active member-

(a)on the member's automatic enrolment date,

(b)if the person applies to become a member, or

(c)on the first day of the payment period following an extension to the contract of employment to be for three months or more,

whichever is the earliest.".

(3) After regulation 13(5) insert-

"(5A) A person who is eligible to be an active member of the Scheme but who is not an active member, becomes a member of the Scheme in an employment on the automatic enrolment date or automatic re-enrolment date relating to that employment.".

(4) After regulation 13(6) insert-

"(7) In this regulation-

"automatic enrolment date" means the automatic enrolment date applicable to the member's employer within the meaning of section 3 of the Pensions Act 2008(7), subject to sections 4 and 30 of that Act;

"automatic re-enrolment date" means the automatic re-enrolment date applicable to the member's employer within the meaning of section 5 of the Pensions Act 2008(8) and regulation 12 of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010(9).".

7.  For regulation 38 substitute-

"Special circumstances where revised actuarial valuations and certificates must be obtained

38.  (1)  If a person-

(a)ceases to be a Scheme employer,

(b)ceases to be a body specified in regulation 8(1),

(c)ceases to be an admission body participating in the Scheme, or

(d)was an employing authority, but no longer has an active member contributing to a fund,

that person becomes "an exiting employer" for the purposes of this regulation and is liable to pay an exit payment.

(2) When a person becomes an exiting employer, the appropriate administering authority must obtain-

(a)an actuarial valuation at the exit date of the liabilities of the fund in respect of benefits due to or in respect of the exiting employer's current and former employees; and

(b)a revised rates and adjustment certificate showing the exit payment due from the exiting employer in respect of those benefits.

(3) Where for any reason it is not possible to obtain all or part of the exit payment due from the exiting employer, or from an insurer, or any person providing an indemnity, bond or guarantee on behalf of the exiting employer, the administering authority must obtain a further revision of any rates and adjustment certificate for the fund showing-

(a)in the case where a body is a transferee admission body within the meaning of regulation 6(2)(a) or (b), the revised contribution due from the body which is the related employer in relation to that admission body; and

(b)in any other case, the revised contributions due from each employing authority which contributes to the fund,

with a view to providing that assets equivalent to the exit payment due from the exiting employer are provided to the fund over such period of time as the administering authority considers reasonable.

(4) Where in the opinion of an administering authority there are circumstances which make it likely that a Scheme employer or admission body will become an exiting employer, the administering authority may obtain from an actuary a certificate specifying the percentage or amount by which, in the actuary's opinion-

(a)the contribution at the common rate should be adjusted; or

(b)any prior individual adjustment should be increased or reduced,

with a view to providing that assets equivalent to the exit payment that will be due from the employing authority are provided to the fund by the exit date or, where the employing authority is unable to meet that liability by the exit date, over such period of time thereafter as the administering authority considers reasonable.

(5) When an exiting employer has paid an exit payment into a fund, no further payments are due from that authority in respect of any liabilities relating to the benefits due to or in respect of any current or former employees of that employer as a result of these Regulations or the Benefits Regulations.

(6) Paragraph (7) applies where-

(a)an administering authority agrees with an employing authority as mentioned in regulation 40(4) or (5); or

(b)it appears likely to an administering authority that the amount of the liabilities arising or likely to arise in respect of members in employment with an employing authority exceeds the amount specified, or likely as a result of the assumptions stated for that authority, in a rates and adjustments certificate by virtue of regulation 36(8).

(7) The administering authority must obtain a revision of the rates and adjustments certificate concerned, showing the resulting changes as respects that employing authority.

(8) For the purposes of this regulation-

"exiting employer" means an employer of any of the descriptions specified in paragraph (1);

"exit payment" means the assets required to be paid over such period of time as the administering authority considers reasonable, to meet the liabilities specified in paragraph (2);

"exit date" means the date on which the employer becomes an exiting employer; and

"related employer" means any Scheme employer which is a party to the admission agreement.".

Amendment to the Local Government Pension Scheme Regulations 2013

8.  The Local Government Pension Scheme Regulations 2013(10) are amended in accordance with regulations 9 and 10.

9.  In Schedule 1 (interpretation), after the entry for "gainful employment" insert-

""Housing Ombudsman" means an individual appointed as housing ombudsman by the Secretary of State under Schedule 2 to the Housing Act 1996(11); and

"Housing Ombudsman Service" means a scheme for the investigation of complaints approved by the Secretary of State under that Act.".

10.  In the table in Part 4 of Schedule 2 (scheme employers)-

(a)in the column headed "Person eligible for membership" at the end insert "The Housing Ombudsman" and

(b)in the column headed "Body deemed to be Scheme employer" next to the entry inserted by paragraph (a) insert "The Housing Ombudsman but, where any decision by the Ombudsman in the capacity of Scheme employer affects the benefits to which the Ombudsman is or may be entitled, only if that decision has been confirmed in writing by the person who is chair of the Housing Ombudsman's Audit and Risk Committee(12).".

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which extend to England and Wales, amend the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007, the Local Government Pension Scheme (Administration) Regulations 2008 ("the Administration Regulations") and the Local Government Pension Scheme Regulations 2013 ("the 2013 Regulations").

Section 12 of the Superannuation Act 1972 provides that regulations made under section 7 may have effect from a date earlier than the making of the Regulations.

Regulation 1 provides that the Regulations come into force on 10th February 2014 but makes provision for various provisions to have effect from different dates.

Regulation 3 adds to the categories of small payments authorised for commutation into lump sums.

Regulation 5 makes provision to permit the Housing Ombudsman, as a corporation sole, to be eligible for membership.

Regulation 6 clarifies the provisions relating to membership of the Scheme following the introduction of the employer duties for automatic enrolment and re-enrolment. In particular, affected eligible members with a contract of less than three months will have no barrier to automatic entry to the scheme.

Regulation 7 recasts regulation 38 of the Administration Regulations to make it clear that all employers in the Local Government Pension Scheme are subject to this Regulation. It sets out the action to be taken when an employer ceases to participate in the LGPS or, in the opinion of the administering authority, participation is likely to cease at some point, so that any unmet liabilities are addressed at that point.

The effect of Regulation 7 is to also revoke the provisions in Regulation 38(3A) to (3G) of the Administration Regulations relating to the liabilities of the former Housing Corporation. These provisions are no longer required following the restructuring of the Homes and Communities Agency and the closure of the Tenant Services Authority.

Regulations 8 to 10 carry through to the 2013 Regulations the amendments made by regulation 5 as regards the Housing Ombudsman.