"the 1972 Order" means the Superannuation (Northern Ireland) Order 1972;

(a) ceases to hold his employment with an employing authority; and

(b) is entitled to a redundancy payment under the 1996 Order,

the authority may pay him compensation under this regulation.

    (2) The compensation payable under this regulation shall not exceed the difference between - 

(a) the redundancy payment to which he is entitled under Part XII of the 1996 Order (redundancy payments); and

(b) the redundancy payment to which he would have been so entitled if Article 23(1)(c) of that Order (limit on weekly pay for purposes of calculating redundancy payments) were omitted.

(a) he ceases to hold his employment with an employing authority - 


(i) by reason of redundancy;

(ii) in the interests of the efficient exercise of that authority's functions; or

(ii) because he was one of the holders of a joint appointment and his appointment has been terminated because the other ceased to hold his appointment;



(b) in a case within sub-paragraph (a)(i) or (ii), that authority - 



(i) has certified in relation to him in accordance with regulation D6(2)(a) of the LGPS Regulations (redundancy etc.); or

(ii) is satisfied that but for a relevant disqualification and on the relevant assumptions it would have so certified;



(c) he is not, in respect of the loss of that employment, entitled to have his case considered for the payment of section 137 compensation;

(d) on the material date he has attained the age of 50, but not the age of 65;

(e) on that date the aggregate of - 



(i) his total period of membership, and

(ii) any periods to which Part II of Schedule B1 to the LGPS Regulations applies,



amounts to at least 5 years;

(f) on that date his total period of membership does not exceed 40 years; and

(g) the period beginning with the day following the material date and ending with his 65th birthday, exceeds any period of residual entitlement which he has to his credit as described in regulation 7(2).

    (2) In paragraph (1) "assumed member" means a person who the employing authority is satisfied would be, or be treated as, a LGPS member but for a relevant disqualification.

    (3) In paragraph (1)(c) "section 137 compensation" means long-term compensation or retirement compensation - 

(a) the period by which his total period of membership falls short of 40 years;

(b) the period beginning with the day following the material date and ending with his 65th birthday, less any period of residual entitlement which he has to his credit;

(c) the aggregate of his total period of membership and any periods to which Part II of Schedule B1 to the LGPS Regulations applies (or, if he is an assumed member, would apply apart from a relevant disqualification and on the relevant assumptions); or

(d) 10 years;

but no person may be credited with a period of service under this regulation in respect of a former employment in respect of the cessation of which a determination to pay compensation is made under regulation 31(2).

    (2) For the purposes of paragraph (1)(b), where a person has been granted a credited period in respect of a cessation of employment ("the previous cessation") before the material date, he has to his credit a period of residual entitlement equal to the excess (if any) of the relevant aggregate period over the period which - 

(a) begins with the day immediately following the previous cessation (or, if there has been more than one previous cessation in respect of which pre-material date extra service has been granted to him, the first of them); and

(b) ends with the day on which he ceased to hold his former employment.

    (3) In this regulation, in relation to any person - 

(a) "the relevant aggregate period", means the aggregate of - 


(i) his pre-material date extra service, reduced as may be necessary in accordance with paragraph (4);

(ii) the period of his former employment; and

(iii) the aggregate of any periods during which he was a LGPS member or an assumed member, being periods between the previous cessation (or, if there has been more than one previous cessation in respect of which pre-material date extra service has been granted to him, the first of them) and the commencement of the former employment;



(b) "pre-material date extra service", means a period by which his total period of membership has been increased or a period of service with which he has been credited, before the material date, for the purpose of calculating one of the kinds of benefit or compensation mentioned in paragraph (5) (or, if more than one such period has been granted to him, the aggregate of them).

    (4) Where after his previous cessation (or the first of them) a person has ceased to hold an employment and - 

(a) his pre-material date extra service has been reduced by the period of that employment or part of that period; or

(b) the compensation or benefit attributable to such extra service has been reduced on account of that period or part of it,

his pre-material date extra service for the purposes of paragraph (3)(a)(i) shall be reduced by that period.

    (5) The benefits and compensation mentioned in paragraph (3)(b) are - 

(a) immediately before the material date a person is entitled to an occupational pension in respect of any period (whether or not it is in payment);

(b) the aggregate of that period, his total period of membership and any credited period exceeds 40 years; and

(c) at any time when the occupational pension is in payment, the aggregate of the annual rate for the time being - 


(i) of that pension;

(ii) of his retirement pension under regulation D6(1) of the LGPS Regulations; and

(iii) of the annual compensation payable under regulation 9, would (apart from this paragraph) exceed the relevant amount specified in paragraph (2),



the basic rate of the annual compensation shall be reduced so that the aggregate does not exceed the relevant amount.

    (2) The relevant amount mentioned in paragraph (1) is - 

(a) if a retirement grant under Part D of the LGPS Regulations is payable, 50 per cent. of the sum of - 


(i) the amount of the eligible person's pensionable remuneration; and

(ii) the amount of the official increases by which an official pension at the annual rate of that pensionable remuneration would have been increased, if it had begun and first qualified for such increases on the day after the material date; and



(b) if no such retirement grant is payable, 66 2/3 per cent. of the sum of those amounts.

    (3) For the purposes of paragraph (1) - 

(a) the annual rates at any time of the annual compensation and of any other official pension are their annual rates with official increases;

(b) the annual rate at any time of an occupational pension which is not such an official pension is its annual rate as increased under any enactment, contract, scheme or other arrangement.

    (4) As respects an occupational pension which is - 

(a) apart from this regulation and regulation 15, annual compensation is payable to a person; and

(b) he enters a new employment,

the annual compensation shall be reduced in accordance with regulation 15 for so long as he holds that or any other new employment.

    (2) Where two or more awards of annual compensation in respect of an eligible person fall to be reduced in accordance with this regulation, each such award shall be reduced in proportion to its amount.

    (3) In this regulation and regulation 15, "annual compensation", in relation to a person, means the annual compensation which would, apart from this regulation and regulation 15, be payable to him under this Part.

    (4) In this Part "new employment", in relation to a person, means employment with a LGPS employer which he enters after the material date.

    (5) If - 

(a) the person's contractual hours in a new employment are altered; or

(b) he is transferred to another post under the same employing authority at an altered remuneration,

(a) in the case of a person who has not entered a new employment, with - 


(i) the date on which he is given notification under regulation 26(a) of the grant of the credited period; or

(ii) his NRD,



whichever is the later;

(b) if he has entered new employment, with - 



(i) the date on which that employment ceases;

(ii) the date on which he is given notification under regulation 26(c) of any adjustment made by reason of that cessation; or

(iii) his NRD,



whichever is the latest.

    (3) A person who duly gives notice under this regulation may surrender any part of his annual compensation (not exceeding the surrendered pension percentage), on the like terms and conditions and for the like consideration as if his annual compensation were a retirement pension to which he had become entitled by virtue of regulation D6(2)(a) of the LGPS Regulations (early retirement on redundancy etc.).

    (4) In paragraph (3) "the surrendered pension percentage", in relation to any person, means the same percentage as the surrendered part of the retirement pension is of the retirement pension to which he would be entitled apart from the surrender.

    (5) In this regulation "annual compensation", in relation to any person, means the compensation payable under regulation 9, adjusted as may be necessary - 

(a) in accordance with regulation 11;

(b) if he is a person to whom such an allowance for life as is mentioned in paragraph (2) of regulation 13 has been granted, in accordance with that regulation; and

(c) in accordance with regulation 17 (but disregarding any reduction under regulation 17(3)).

    (6) In the case of a person to whom regulation D14 of the LGPS Regulations does not apply because of a relevant disqualification - 

(a) paragraph (1) shall have effect as if he had been allowed to surrender as mentioned in that paragraph; and

(b) the annual compensation which he is entitled to surrender in accordance with paragraph (3) shall be such part as he may specify in the notice required under paragraph (1).

Awards to surviving spouses

(a) who is or are entitled to receive a children's short-term pension under regulation G4 or G7 of the LGPS Regulations in relation to the deceased's former employment; or

(b) who would be so entitled apart from - 


(i) a relevant disqualification with respect to the deceased (and on the relevant assumptions); or

(ii) the transfer of benefits to another pension scheme.

    (2) Where this regulation applies, children's short-term compensation is payable to or for the benefit of such eligible child or eligible children as are mentioned in paragraph (1) - 

(a) if a children's short-term pension under regulation G4 or G7 of the LGPS Regulations is payable for the period of 3 months beginning with the date of the death, for that period; and

(b) otherwise, for the period of 6 months beginning with that date.

(a) the grant of a credited period to any person under regulation 7;

(b) the death of a person to whom such an award has been made; or

(c) the making of any adjustment affecting the compensation payable to a person in accordance with this Part,

(a) ceases to hold his employment with a LGPS employer - 


(i) by reason of redundancy; or

(ii) in the interests of the efficient exercise of that employer's functions;



(b) in respect of that loss of employment is not disentitled to a redundancy payment under Part XI of the 1996 Order by virtue of Article 240(2) of that Order (agreements to exclude rights to redundancy payments on expiry of short fixed term contracts) and either - 



(i) is not eligible to benefit under Part III, or

(ii) is eligible but has not been granted a credited period under regulation 7 by his LGPS employer;



(c) has attained the age of 18 on the material date and, unless he has attained the age of 50 on that date, is entitled to count a qualifying employment of at least 2 years;

(d) on the material date has a total period of membership of 40 years or less; and

(e) has not attained the age of 65 on that date.

    (2) Where this Part applies, the LGPS employer may before the end of the period of six months beginning with the material date determine to pay compensation of an amount not exceeding a sum equivalent to 66 weeks' pay or, if it is less - 

(a) in the case of an employee who has attained the age of 18 but not 20 on that date, one half week's pay for each complete year of qualifying employment after attaining the age of 18;

(b) in the case of an employee who has attained the age of 20 but not 23 on that date, one half week's pay - 


(i) for each complete year of qualifying employment after attaining the age of 18; and

(ii) for each complete year of qualifying employment after attaining the age of 20;



(c) in the case of an employee who has attained the age of 23 but not 41 on that date, two weeks' pay for each complete year of qualifying employment after attaining the age of 18;

(d) in the case of an employee who has attained the age of 41 on that date - 



(i) two weeks' pay for each complete year of qualifying employment after attaining the age of 18; and

(ii) three weeks' pay for each complete year of qualifying employment after attaining the age of 41.

    (3) In any case, the maximum amount shall not exceed one week's pay for each week (fractions of a week being disregarded) between the material date and the employee's 65th birthday.

    (4) If any redundancy payment is made to the employee, an amount equivalent to it shall be deducted from the amount of the compensation otherwise payable to him under this Part.

    (5) After making a determination under paragraph (2) in respect of a person, a LGPS employer shall as soon as is reasonably practicable give him written notification of the compensation payable, giving details of the calculation in question.

    (6) Without prejudice to any statutory provision to the contrary, any compensation payable under this Part - 

(a) shall be paid by the LGPS employer, as soon as practicable after making a determination under paragraph (2), in the form of a lump sum payment to or in trust for the person entitled to receive the compensation; and

(b) shall not be assignable or chargeable with his debts or other liabilities.

    (7) For the purposes of this Part a week's pay shall be calculated in accordance with provisions of Chapter IV of Part I of the 1996 Order (calculation of normal working hours or a week's pay) and for the purposes of that calculation references to the calculation date in the 1996 Order shall be treated as the material date.

    (8) For the purpose of calculating the compensation payable to a person under this Part, the LGPS employer shall not include any years of qualifying employment which it or a previous LGPS employer has taken into account in calculating compensation which has been paid to him previously under these Regulations or other regulations made under Article 19 of the 1972 Order (except for concurrent qualifying employment).

    (9) No period of qualifying employment which has been taken into account in calculating compensation paid under this Part may be taken into account for the purposes of calculating compensation to be paid under these Regulations or other regulations made under that Article (except, in the case of a calculation by a LGPS employer, for concurrent qualifying employment).

    (10) In this Part - 

"concurrent qualifying employment", in relation to a calculation by a LGPS employer, means qualifying employment with that employer which is concurrent with qualifying employment with that or another LGPS employer;

"excluded employment" means a period of employment in relation to which a pension or other benefits (other than a refund of contributions) are being or have been paid under an occupational pension scheme;

"qualifying employment", in relation to an employee, means a period of employment (other than excluded employment) in relation to which the LGPS employer is satisfied that the employee was in local government employment (within the meaning of the LGPS Regulations) or was in employment which would have been such employment but for a relevant disqualification;

"relevant disqualification", in relation to an occupational pension scheme, means any of the following reasons in consequence of which (either alone or taken together) a person has not become, has ceased to be or has not been treated as being eligible for membership of the Scheme, namely - 

(a) the failure of a medical examination required for such membership;

(b) the making of any election to opt out of or the absence of an election to opt into such membership with respect to any period of employment; and

(c) a restriction excluding some part-time employment from being employment to which the Scheme applies;

and other expressions used in this Part and in Part III have the same meaning as in that Part.

(a) the grounds for the decision; and

(b) a conspicuous statement directing the person's attention to his right under that paragraph to appeal to the county court under regulation 39(1).

Sam Foster
Minister of the Environment

 -  provision for the holder of a joint appointment whose appointment has been terminated because the other holder ceased to hold his appointment may now be considered for a discretionary award under Part III (regulation 5(1)(a)(iii));

 -  the need to take into account any previous pension rights to determine the maximum added years. Employers must ensure, as far as possible, that appropriate enquiries are made when making an award (regulation 10);

 -  with effect from 6th April 1988 widowers' annual compensation is payable similar to that of widows (regulations 19(1) and (2) and 20);

 -  surviving spouses of post retirement marriages of employees awarded compensatory added years may receive part of the annual compensation (regulation 19(3));

 -  annual surviving spouses' compensation will no longer cease on remarriage or cohabitation (regulation 19);

 -  with effect from 6th April 1988 children of female employees are provided with the same rights as those of male employees (regulations 21 to 24);

 -  to comply with overriding disclosure legislation the regulations require employers to notify the award of compensation within prescribed timescales (regulation 26);

 -  interest is to be added to compensation paid late in certain circumstances (regulation 29);

 -  the Northern Ireland Local Government Officers' Superannuation Committee has two months in which to recover from an employer the amount of any payment made on its behalf from the pension fund (regulation 30);

 -  provision is made for a lump sum compensation payment calculated on a sliding scale according to age and completed years of service subject to an overall limit equivalent to 66 weeks' remuneration (regulation 31);

 -  injury allowances, which were in the Local Government (Superannuation) Regulations (Northern Ireland) 1992, have been included in these Regulations as they are payable by employers and not from the pension fund (Part V). Provision will include death benefits to surviving spouses which will no longer cease on remarriage or cohabitation

Article 19(3)(c) of the Superannuation (Northern Ireland) Order 1972 confers express powers to make regulations retrospective in effect. These regulations are to a certain extent retrospective, however, no one will be adversely affected by the retrospective provisions.