3^rd April 2002

Dear Sir/Madam

I enclose regulations which the Secretary of State has made under powers contained in section 24 of the Superannuation Act 1972. The regulations amend the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000, and come into force on 17 April 2002.

These regulations do not change the policy basis of the current regulations, but several clarifying amendments have been found necessary to ensure that the original regulatory intention is carried through. The amendments in general, were largely foreshadowed in LGPC Circular No. 88, published in July 2000. The main amendment is the removal of the cap on a week's pay, but the opportunity has also been taken to amend the reference to normal retirement age to 65^th birthday to reflect recent changes in the Local Government Pension Scheme Regulations. The other changes are either technical or clarify the position so as to make the regulations correspond with the earlier revoked provisions, or ones we have been asked to make by the Joint Committee on Statutory Instruments.

It should be noted that regulations 3 to 10 shall have full retrospective effect from 21 June 2000. A new provision gives authorities discretion to pay additional compensation to former employees where the authority applied a week's pay capped in accordance with provisions in the Employment Rights Act 1996. Authorities should note this provision is time limited and any decision therefore needs to be made within 6 months of the regulations coming into force.

Any comments or questions relating to the application of these changes should be addressed in the first instance to Elizabeth Bickford, Local Government Pensions Division, DTLR, Zone 2/F7, Ashdown House, 123 Victoria Street, London, SW1E 6DE (tel 020 7944 6003) (e-mail [email protected]).

Yours faithfully,

County & District Councils in England

County & Borough Councils in Wales

London Borough Councils

South Yorkshire Pensions Authority

Tameside Metropolitan Borough Council

Wirral Metropolitan Borough Council

Bradford City Council

South Tyneside Metropolitan Borough Council

Middlesbrough Borough Council

Wolverhampton Metropolitan Borough Council

London Pensions Fund Authority

Environment Agency

Audit Commission

The Town Clerk, City of London

Clerk, South Yorkshire PTA

Clerk, West Midlands PTA

The Secretaries of:

Local Government Association

New Towns Pension Fund

Commission for New Towns

LGPC

SOCPO

SOLACE

ALACE

Convention of Scottish Local Authorities (COSLA)

Welsh Local Government Association

North Wales Association of Town Councils

Trades Union Congress

UNISON

TGWU

GMB

AEEU

Government Actuary's Department

ACA

SPPA

NI DOE

AOC

UCEA

Other Government Departments