The Local Government Pension Scheme (Administration) Regulations 2008
| Jurisdiction | UK Non-devolved |
| Citation | SI 2008/239 |
2008 No. 239
pensions, england and wales
The Local Government Pension Scheme (Administration) Regulations 2008
Made 6th February 2008
Laid before Parliament 14th February 2008
Coming into force 1st April 2008
The Secretary of State for Communities and Local Government makes these Regulations in exercise of the powers conferred by section 7 of the Superannuation Act 19721.
In accordance with section 7(5) of the Superannuation Act 1972 the Secretary of State consulted such associations of local authorities as appeared to her to be concerned; the local authorities with whom consultation appeared to her to be desirable; and such representatives of other persons likely to be affected by the Regulations as appeared to her to be appropriate.
PART 1
PRELIMINARY
Citation, commencement and application
1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Administration) Regulations 2008 and shall come into force on 1st April 2008.
(2) These Regulations apply in relation to England and Wales2.
Interpretation
2.—(1) Schedule 1 (interpretation) contains definitions of expressions used in these Regulations which apply for their interpretation unless the context indicates they have a different meaning.
(2) References to members or membership refer to active members of the Scheme or active membership under the Scheme respectively unless otherwise stated or the context indicates a different meaning.
(3) The definition of “Reference banks” in Schedule 1 must be read with—
(a)
(a) section 22 of the Financial Services and Markets Act 20003;
(b)
(b) any relevant order under that section; and
(c)
(c) Schedule 2 to that Act.
Application to Isles of Scilly
3. These Regulations apply in relation to the Isles of Scilly as if they were a district in the county of Cornwall and the council of the Isles of Scilly were the council of that district.
PART 2
MEMBERSHIP OF SCHEME
General eligibility for membership
4.—(1) A person may only be an active member of the Scheme if—
(a)
(a) this regulation, or any of regulations 5 to 9 and 10(3); or
(b)
(b) regulation 2(3) of the Benefits Regulations4
enables him to be one and he is not prevented by regulation 12.
(2) A person may be an active member if he is employed by a body which is listed in Schedule 2.
(3) But a person who is employed by a body listed in Part 2 of that Schedule may only be an active member if he, or a class of employees to which he belongs, is designated by the body as being eligible for membership of the Scheme.
Employees of non-Scheme employers: community admission bodies
5.—(1) Subject to the requirements of this regulation and regulation 7, an administering authority may make an admission agreement with any community admission body.
(2) The following are community admission bodies—
(a)
(a) a body, other than the governors or managers of a voluntary school (within the meaning of the School Standards and Framework Act 19985), which provides a public service in the United Kingdom otherwise than for the purposes of gain and which either—
(i) has sufficient links with a Scheme employer for the body and the Scheme employer to be regarded as having a community of interest (whether because the operations of the body are dependent on the operations of the Scheme employer or otherwise), or
(ii) is approved by the Secretary of State for the purposes of admission to the Scheme;
(b)
(b) a body, other than the governors or managers of a voluntary school, to the funds of which a Scheme employer contributes;
(c)
(c) a body representative of—
(i) local authorities,
(ii) local authorities and officers of local authorities,
(iii) officers of local authorities where it is formed for the purpose of consultation on the common interests of local authorities and the discussion of matters relating to local government, or
(iv) Scheme employers;
(d)
(d) the Housing Corporation;
(e)
(e) the Commission for the New Towns;
(f)
(f) a company for the time being subject to the influence of a local authority (within the meaning of section 69 of the Local Government and Housing Act 1989 (companies subject to local authority influence))6; and
(g)
(g) a company for the time being subject to the influence of a body listed in Part 1 of Schedule 2 (other than a local authority).
(3) An approval under paragraph (2)(a)(ii) may be subject to such conditions as the Secretary of State thinks fit and she may withdraw an approval at any time if such conditions are not met.
(4) Where, at the date that an admission agreement is made with a body mentioned in paragraph (2)(b), the contributions paid to the body by one or more Scheme employers equal in total 50% or less of the total amount it receives from all sources, it must be a term of the admission agreement that the Scheme employer paying contributions (or, if more than one pays contributions, all of them) guarantees the liability of the body to pay all amounts due from it under these Regulations or the Benefits Regulations.
(5) In paragraph (2)(c) “local authorities” and (f) “local authority” includes the Greater London Authority.
(6) For the purpose of determining whether a company is subject to the influence of a body as mentioned in paragraph (2)(g), section 69 of the Local Government and Housing Act 1989 shall have effect as if references in that section to a local authority were references to the body.
Employees of non-Scheme employers: transferee admission bodies
6.—(1) Subject to the requirements of this regulation and regulation 7, an administering authority may make an admission agreement with any transferee admission body.
(2) A transferee admission body is a body, other than a community admission body, that is providing or will provide—
(a)
(a) a service or assets in connection with the exercise of a function of a Scheme employer as a result of—
(i) the transfer of the service or assets by means of a contract or other arrangement,
(ii) a direction made under section 15 of the Local Government Act 19997, or
(iii) directions made under section 497A of the Education Act 19968,
(“a (2)(a) transferee admission body”); or
(b)
(b) a public service and is approved by the Secretary of State for the purposes of admission to the Scheme (“a (2)(b) transferee admission body”).
(3) In the case of an admission agreement with a (2)(a) transferee admission body, the Scheme employer, if it is not also the administering authority, must be a party to the admission agreement.
(4) An approval under paragraph (2)(b) may be subject to such conditions as the Secretary of State thinks fit and she may withdraw an approval at any time if such conditions are not met.
(5) An admission agreement with a transferee admission body shall require the Scheme employer, in the case of a (2)(a) transferee admission body, or the transferee admission body, in any other case, to carry out an assessment, taking account of actuarial advice, of the level of risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee admission body.
(6) An assessment carried out by a (2)(b) transferee admission body shall be carried out to the satisfaction of the administering authority.
(7) The admission agreement shall further provide that, where the level of risk identified by the assessment is such as to require it, the transferee admission body shall enter into an indemnity or bond to meet the level of risk identified.
(8) The indemnity or bond must be with—
(a)
(a) a person who has permission under Part 4 of the Financial Services and Markets Act 20009to accept deposits or to effect and carry out contracts of general insurance;
(b)
(b) an EEA firm of the kind mentioned in paragraph (5)(b) and (d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits or to effect and carry out contracts of general insurance; or
(c)
(c) a person who does not require permission under that Act to accept deposits, by way of business, in the United Kingdom.
(9) An admission agreement with a transferee admission body shall make provision for the relevant matters set out in Schedule 3.
(10) This paragraph applies where a transferee admission body undertakes to meet the relevant requirements of this regulation and—
(a)
(a) in the case of a (2)(a) transferee admission body, the Scheme employer undertakes to meet the relevant requirements of this regulation; or
(b)
(b) in the case of a (2) (b) transferee admission body—
(i) the Secretary of State approves the body for admission to the Scheme, and
(ii) the conditions, if any, to which the approval is subject have been met.
(11) Where paragraph (10) applies—
(a)
(a) an administering authority must admit to the Scheme the eligible employees of the transferee admission body designated by that body; and
(b)
(b) where the administering authority does so, the terms on which it does so are the admission agreement for the purposes of these Regulations.
(12) Only those employees of the transferee admission body who are employed in connection with the provision of a service or assets mentioned in paragraph (2) are eligible to be designated, under regulation 7(1), members of the Scheme.
Admission agreements – further provisions
7.—(1) A person employed by a community admission body or an eligible person employed by a transferee admission body may only be a member if he, or a class of employees to which he belongs, is designated in the admission agreement by the body as being eligible for membership of the...
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