The Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023

12 Divorce or dissolution of civil partnership before 1st October 2023.

(1) This regulation applies to a person (“the pension debit member”) with remediable service— (a) who was divorced, or dissolved a civil partnership, before 1st October 2023 and, in respect of that divorce or dissolution, has a pension sharing order with an effective date on or after 1st April 2014 but before 1st October 2023; and (b) who had the cash equivalent value of their relevant benefits calculated, because of that divorce or dissolution of civil partnership, ... for the purpose of section 29 of the Welfare Reform and Pensions Act 1999 (“the original calculation”). (2) Unless paragraph (2A) applies, the cash equivalent value of the pension debit member’s relevant benefits for the purpose of section 29 of the Welfare Reform and Pensions Act 1999 is to be recalculated as at the date on which the original calculation was made in accordance with actuarial guidance issued by the Secretary of State. (2A) This paragraph applies where, before the application of this regulation, the appropriate amount in relation to the pension sharing order was the specified amount under section 29(3)(a) of the Welfare Reform and Pensions Act 1999. (3) Where one of the dates set out in regulation 4H(1) of the 2014 Regulations (statutory underpin: final underpin date) occurred in relation to the pension debit member before the date on which the pension sharing order in respect of their divorce or the dissolution of their civil partnership took effect— (a) regulations 4A to 4V of the 2014 Regulations are to be applied to the pension debit member; and (b) the recalculation must take into account any final guarantee amount to which the pension debit member is entitled. (4) Where one of the dates set out in regulation 4G of the 2014 Regulations (statutory underpin: underpin date) occurred in relation to the pension debit member before the date on which the pension sharing order in respect of their divorce or the dissolution of their civil partnership took effect but not one of the dates in regulation 4H of those Regulations— (a) regulations 4A to 4V of the 2014 Regulations are to be applied to the pension debit member; and (b) the recalculation must take into account the provisional assumed benefits and provisional underpin amount calculated under regulations 4I and 4J respectively of the 2014 Regulations. (5) If the recalculated cash equivalent value exceeds the original calculation— (a) the appropriate amount is to be recalculated based on the recalculated cash equivalent value and on the same basis as which applied for the purposes of the original calculation; (b) the pension debit member’s pension accounts are to be adjusted to give effect to the recalculated pension debit in accordance with actuarial guidance issued by the Secretary of State; (c) paragraphs (5A) to (5C) apply to the pension debit member (as appropriate); (d) the annual pension deriving from the pension credit awarded to the pension debit member’s spouse or civil partner (“the pension credit member”) is to be adjusted to give effect to the recalculated pension credit in accordance with actuarial guidance issued by the Secretary of State; (e) paragraphs (6) to (6F) apply to the pension credit member (as appropriate). (5A) If the pension debit member’s pension is in payment on 1st October 2023— (a) it is to be recalculated based on the recalculated pension debit; (b) the difference between the recalculated annual pension and the pension in payment is to be subtracted from the retirement pension, from— (i) the date they first took payment of the pension, or (ii) if later, the effective date of the pension sharing order. (5B) If the pension debit member is a person to whom one of the regulations listed in paragraph (5C) applies, the calculations made for the purpose of that regulation must take into account the recalculated pension debit in accordance with actuarial guidance issued by the Secretary of State. (5C) The provisions listed in this paragraph are— (a) regulation 5(1) (members who retired or died before 1st October 2023), but only in respect of a person who— (i) died before 1st October 2023, or (ii) took payment of Tier 3 benefits under regulation 35(7) of the 2013 Regulations but whose Tier 3 benefits subsequently ceased before 1st October 2023 by virtue of— (aa) the person having been entitled to Tier 3 benefits for 3 years, (bb) regulation 37(3) of the 2013 Regulations (starting employment), or (cc) regulation 37(7)(c) of those Regulations (cessation of benefits following review). (b) regulation 6(1) (death grants calculated under regulation 43 of the 2013 Regulations in respect of members who died before 1st October 2023); (c) regulation 7(1) (pensioner death grants in respect of members who died before 1st October 2023); (d) regulation 8(1) (survivor benefits in respect of members who died before 1st October 2023); (e) regulation 10(1) (members who took a transfer out of the fund before 1st October 2023); (f) regulation 11(1) (commutation payments taken before 1st October 2023). (6) If the pension credit member’s pension is in payment on 1st October 2023— (a) it is to be recalculated based on the recalculated pension credit; (b) the difference between the recalculated annual pension and the pension in payment is to be added to the retirement pension account, from the date that they first took payment of the pension. (6A) If the pension credit member died before 1st October 2023, and their pension was in payment on the date of their death— (a) the pension is to be recalculated based on the recalculated pension credit; (b) the difference between the recalculated annual pension and the pension that was in payment, from the date the pension credit member first took payment of the pension to the date of their death, is to be paid to the pension credit member’s personal representatives without undue delay. (6B) If the pension credit member died before 1st October 2023, and a death grant was calculated in respect of them under regulation 43 of the 2013 Regulations— (a) the death grant is to be recalculated in accordance with regulation 43 of the 2013 Regulations, taking into account the recalculated pension based on the recalculated pension credit; (b) the difference between the recalculated death grant and the death grant that was paid is to be paid by the administering authority, without undue delay— (i) where there was a single recipient of the death grant, to that recipient; (ii) where there was more than one recipient, to those recipients in the same proportions as they were paid the death grant. (6C) If the pension credit member died before 1st October 2023, and a death grant was calculated in respect of them under regulation 46 of the 2013 Regulations— (a) the death grant is to be recalculated in accordance with regulation 46 of the 2013 Regulations, taking into account the recalculated pension based on the recalculated pension credit; (b) the difference between the recalculated death grant and the death grant that was paid is to be paid by the administering authority, without undue delay— (i) where there was a single recipient of the death grant, to that recipient; (ii) where there was more than one recipient, to those recipients in the same proportions as they were paid the death grant. (6D) If the pension credit member had a transfer out under Chapter 2 of Part 4A of the Pension Schemes Act 1993 which was paid before 1st October 2023, or which was calculated as at a date before but paid on or after 1st October 2023— (a) the value of the transfer is to be recalculated in accordance with actuarial guidance issued by the Secretary of State, taking into account the recalculated pension based on the recalculated pension credit; (b) the administering authority must take reasonable steps to pay the difference to the scheme that received the original transfer. (6E) If a lump sum was calculated in respect of the pension credit member under regulation 34(1) of the 2013 Regulations before 1st October 2013— (a) the original payment is to be recalculated in accordance with actuarial guidance issued by the Secretary of State, taking into account the recalculated pension based on the recalculated pension credit; (b) notwithstanding regulation 34(3) of the 2013 Regulations (member entitled to no further benefits after payment), the difference between the original payment and the recalculated payment is to be paid to the pension credit member without undue delay; (c) if the pension was in payment on the date the lump sum was paid— (i) the pension is to be recalculated based on the recalculated pension credit; (ii) notwithstanding regulation 34(3) of the 2013 Regulations, the difference between the recalculated annual pension and the pension that was in payment, from the date the pension credit member first took payment of the pension to the date the lump sum was paid is to be paid to the pension credit member without undue delay. (6F) If the administering authority discharged its liability in respect of the pension credit member by making a payment under paragraph 1(3) of Schedule 5 to the Welfare Reform and Pensions Act 1999 which was paid before 1st October 2023, or which was calculated as at a date before but paid on or after 1st October 2023— (a) the original payment is to be recalculated in accordance with actuarial guidance issued by the Secretary of State, taking into account the recalculated pension based on the recalculated pension credit; (b) the administering authority must take reasonable steps to pay the difference to the recipient of that original payment. (7) In this regulation— “appropriate amount” and “relevant benefits” have the same meaning as in section 29 of the Welfare Reform and Pensions Act 1999; “pension credit”, “pension debit” and “pension sharing order” have the meaning given in Schedule 1 to the 2013 Regulations.