Memorandum by the Department of the Environment, Transport
and the Regions
LOCAL GOVERNMENT PENSION SCHEME REGULATIONS
1997 (S.I. 1997/1612)
By a letter from its Clerk dated 23 July 1997 the Committee
has requested the Department to submit a memorandum on the following
(a) The drafting of this regulation is affected by the wish
to avoid providing that any person becomes entitled to a death
grant on a member's death. (Such an entitlement might have adverse
inheritance tax consequences).
Consequently, in paragraphs (2) to (6) the member's death
grant is merely a notional concept representing a maximum amount,
which must not be exceeded by the payments made under paragraph
(1). (By virtue of section 6(c) of the Interpretation Act 1979,
"person" in paragraph (1) may mean more that one person,
and so there may be more than one payment made on a member's death).
(b) Paragraph (7) is phrased as it is because of the way
that the concept of the member's death grant is used in the earlier
paragraphs. It is intended to make it clear that any amount paid
under regulation 38(1) is paid by way of death grant and therefore
that all the provisions drafted in terms of death grant apply.
(See regulation 21(4), for example.) The question whether or not
a payment is by way of death grant will be especially relevant
in determining whether the limits for such grants which apply
under Schedule 4 have been complied with.
(2) In regulation 71(6), explain the reference to
"the sum received as mentioned in regulation 64".
In regulation 71(6), the word "received" is part
of the phrase "sum received" which refers to the sum
the new authority has received by virtue of the transfer made
to it under regulation 71(5). The words "as mentioned in
regulation 64" qualify the earlier words "must apply
and invest". The intention is that the investment and use
provisions in regulation 64, which apply to the part of the AVCs
not set aside for death benefits, should continue to apply to
the transferred sum, just as they did before the transfer.
(3) In regulation 123, given that paragraph (1) allows
the member to count the excess transferred-in service as a period
which counts towards his total membership (for certain regulations),
explain the purpose and effect of the proposition (in (3)) that
that period counts as its actual length.
We agree that the proposition in paragraph (3) of regulation
123 is not strictly legally necessary in view of the definition
of transferred-in service in paragraph (6). But we think its inclusion
helpful. First, it emphasises that the excess transferred-in service
represents a period actually served, which contrasts with the
entirely artificial concept of the credited period, which is calculated
by reference to the amount transferred into the Scheme in accordance
with regulation 122(2). Secondly, it avoids any argument that
in the case of a part-timer the rule in regulation 11(3) should
(4) In regulation 133(11), explain the application
of section 105 in relation to a magistrates' court committee with
the omission of paragraph (3) of regulation 103.
The reference should have been to the omission of the words
"(otherwise than in the exercise of a discretion)" in
paragraph (1)(a) of regulation 105 and not to the omission of
paragraph (3) of regulation 103. The Department apologises for
this and undertakes to make the appropriate amendment when the
Regulations are next amended.
31st July 1997