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The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016

Consolidated Text As Enacted Cited authorities 37 Cited in Amendments 7 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2016/946
Year2016
(1) These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016.(2) These Regulations come into force on 1st November 2016.(3) These Regulations extend to England and Wales.(1) In these Regulations—
  • “the 2000 Act” means the Financial Services and Markets Act 2000;
  • “the 2013 Regulations” means the Local Government Pension Scheme Regulations 2013;
  • “the Transitional Regulations” means the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014;
  • “authority” means an administering authority listed in Part 1 of Schedule 3 to the 2013 Regulations;
  • “fund money” means money that is or should be in a pension fund maintained by an authority;
  • “proper advice” means the advice of a person whom the authority reasonably considers to be qualified by their ability in and practical experience of financial matters;
  • “the Scheme” means the scheme established by the 2013 Regulations.
(2) Any restrictions imposed by these Regulations apply to authorities which have the power within section 1 of the Localism Act 2011(3) Any authority which does not have the powers mentioned in paragraph (2) has, by virtue of these Regulations the power to do anything authorised or required by these Regulations.a contract entered into in the course of dealing in financial futures, traded options or derivatives;a contribution to a limited partnership in an unquoted securities investment;a contract of insurance if it is a contract of a relevant class, and is entered into with a person within paragraph (2) for whom entering into the contract constitutes the carrying on of a regulated activity within the meaning of section 22 of the 2000 Act.a person who has permission under Part 4A of the 2000 Act (permission to carry on regulated activities) to effect or carry out contracts of insurance of a relevant class;an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the 2000 Act (EEA passport rights) , which has permission under paragraph 15 of that Schedule to effect or carry out contracts of insurance of a relevant class; anda person who does not fall within sub-paragraph (a) or (b) whose head office is in an EEA state other than the United Kingdom, and who is permitted by the law of that state to effect or carry out contracts of insurance of a relevant class.a contract of insurance on human life or a contract to pay an annuity on human life where the benefits are wholly or partly to be determined by reference to the value of, or income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or an index of, the value of property of any description (whether or not so specified) ; ora contract to manage the investments of pension funds, whether or not combined with a contract of insurance covering either conservation of capital or payment of minimum interest.(4) For the purposes of this regulation—the amounts payable by it or payable to it under regulations 15(3) (b) , 67 and 68 of the 2013 Regulations (employer’s contributions and further payments) ;all amounts received under regulation 69(1) (a) of the 2013 Regulations (member contributions) ;all income arising from investment of the fund; andall capital money deriving from such investment.(2) In the case of an authority which maintains more than one pension fund, as respects sums which relate to specific members, the references in this regulation to the authority’s pension fund is to the fund which is the appropriate fund(3) Interest under regulation 71 of the 2013 Regulations (interest on late payments by Scheme employers) must be credited to the pension fund to which the overdue payment is due.(4) An authority must pay any benefits to which any person is entitled by virtue of the 2013 Regulations or the Transitional Regulations from its pension fund.(5) Any costs, charges and expenses incurred administering a pension fund may be paid from it except for charges prescribed by regulations made under sections 23, 24 or 41 of the Welfare Reform and Pensions Act 1999(1) Except as provided in this regulation, an authority must not borrow money where the borrowing is liable to be repaid out of its pension fund.paying benefits due under the Scheme; orto meet investment commitments arising from the implementation of a decision by it to change the balance between different types of investment.(3) An authority may only borrow money under paragraph (2) if, at the time of the borrowing, the authority reasonably believes that the sum borrowed and interest charged in respect of that sum can be repaid out of its pension fund within 90 days of the borrowing.(1) An authority must hold in a separate account kept by it with a deposit-taker all fund money.a person who has permission under Part 4A of the 2000 Act (permission to carry on regulated activities) to carry on the activities specified by article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (accepting deposits) ;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .the Bank of England or the central bank of an EEA state other than the United Kingdom; orthe National Savings Bank.(3) An authority must secure that the deposit-taker may not exercise a right of set-off in relation to the account referred to in paragraph (1) in respect of any other account held by the authority or any party connected to the authority.

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