Citation, commencement and extent

1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Amendment) (No. 2) Regulations 2023 and come into force on 1st June 2023.

(2) These Regulations extend to England and Wales.

Amendment of the Local Government Pension Scheme Regulations 2013

2.—(1) The Local Government Pension Scheme Regulations 2013( 2) are amended as follows.

(2) In regulation 114(3) (Scheme actuary) for “regulation 62(1)(a) (actuarial valuations of pension funds)” substitute “the Treasury directions”( 3).

(3) In regulation 116 (Scheme advisory board: additional functions)—

(a) in paragraph (1) for “on the dates specified in regulation 62(1)(a) (actuarial valuations of pension funds)” substitute “following an actuarial valuation of the Scheme in accordance with Treasury directions made under section 11 of the Public Service Pensions Act 2013”;

(b) in paragraph (2)—

(i) for “paragraphs (5) and (6)” substitute “paragraph (5)”;

(ii) after “back to” insert “or towards”;

(c) in paragraph (3) after “back to” insert “or towards”;

(d) in paragraph (4) after “back to”, in each place where it occurs, insert “or towards”;

(e) omit paragraph (6).

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Local Government Pension Scheme Regulations (“ the 2013 Regulations”) established the Local Government Pension Scheme (“ the Scheme”).

Regulation 2(2) of this instrument amends regulation 114 of the 2013 Regulations. This amendment removes the cross-reference to regulation 62 (pursuant to which local level actuarial valuations of pension funds are conducted every three years). The amendment provides that the specified dates for the Scheme actuary to carry out the valuation are the dates specified in Treasury directions made under section 11 of the Public Service Pensions Act 2013.

Regulation 2(3) of this instrument amends regulation 116 of the 2013 Regulations. These amendments change the date on which the Local Government Pension Scheme Advisory Board (“ the Board”) must obtain the cost assessment from the Scheme actuary in order to conduct its review of the cost of the Scheme. The amendment provides that the Board is required to obtain the cost assessment following the Scheme actuary’s valuation under regulation 114. These amendments also make further provision in relation to the exercise of the Board’s recommendation-making functions under regulation 116. The amendments give the Board more flexibility as to the recommendations which can be made, including recommendations for steps to move the costs back towards the target, rather than back to the target.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, public or voluntary sector is foreseen.