
PART I
1 
These rules may be cited as the Superannuation (Local Government
and Federated Schemes Employment) Interchange Rules 1969 and shall come into
operation on 1st April 1969.
2 

(1) In these rules,
unless the context otherwise requires—
 “the Act of 1937” means the Local Government Superannuation
Act 1937;
 “the Act of 1948” means the Superannuation (Miscellaneous
Provisions) Act 1948;
 “the Act of 1953” means the Local Government Superannuation
Act 1953;
 “added years” means—
(a) in relation to a person in local government employment,
any additional years of service reckonable by him under regulation 12 of the benefits
regulations or that regulation as applied by or under any enactment, and includes
any additional years of service which, having been granted thereunder, have
subsequently become reckonable under or by virtue of any other enactment,
and
(b) in relation to a person in Federated Schemes Employment, any additional
years of service of the nature of the additional years of service referred
to in (a) of this definition which have
been granted in, or have otherwise become reckonable in, that employment;

 “benefit” means any superannuation benefit payable to or in respect of any person
;
 “the benefits regulations”
 means the Local Government Superannuation (Benefits) Regulations 1954;
 “contributing service”
 and “contributory employee” have the same meanings as in the Act of 1937;
 “enactment” includes any instrument made under any enactment;
 “Federated Schemes Employment”
 means employment in which a person is
a member of the Federated Group Pension Scheme or a Federated Pension Scheme
established under a trust deed made between the Trustee and an employer;

 “fund authority” means a local authority maintaining a superannuation fund to which a person
either became a contributor after he left Federated Schemes Employment or,
as the case may be, was last a contributor before he entered Federated Schemes
Employment;
 “interchange rules” means rules made under section 2
of the Act of 1948;
 “local authority” has the same meaning as in the Act of 1937;
 “local government employment”
 means employment by virtue of which
the person employed is or is deemed to be a contributory employee;

 “the Minister” means the Minister of Housing and Local Government;
 “national service”, in
relation to any person, means service which is relevant
service within the meaning of the Reserve and Auxiliary Forces (Protection of Civil Interests)
Act 1951 and any similar service immediately
following relevant service, entered into with the consent of the authority
or person by whom he was employed before undertaking that service or, in the
case of a person who holds an appointment to an office and is not employed
under a contract of employment, with the consent of the authority by whom
he was appointed;
 “non-contributing
service” has the same meaning as
in the Act of 1937;
 “prescribed period” has the meaning assigned to it by rule 3;

 “relevant scheme” means the pension scheme of which a person is or was a member in his Federated
Schemes Employment;
 “transfer value regulations”
 means the Local Government Superannuation (Transfer Value) Regulations
1954;

 “the Trustee” means the incorporated body known as the Federated Pension Schemes;

 “voluntary contributions”
 means—
(a) in relation to a person who enters Federated
Schemes Employment after leaving local government employment, payments made
voluntarily by him, while in local government employment or in overseas employment
within the meaning of the Superannuation (Local Government
and Overseas Employment) Interchange Rules 1958, for the purpose of securing benefits
for his widow, children or other dependants and payments (other than payments
made in respect of a liability which has been wholly discharged) of any of
the following categories:—
(i) additional contributory payments of the kind referred
to in section 2(3) and (4)
of the Act of 1953;
(ii) any similar payments made under a local Act scheme as
a condition of reckoning any period of employment as service or as a period
of contribution for the purposes of the scheme or, where the local Act scheme
provides for the reckoning of non-contributing service, as contributing service
for the purposes of the scheme;
(iii) any payments made for the purpose of increasing the
length at which any period of service or of contribution would be reckonable
for the purpose of calculating a benefit under a local Act scheme;
(iv) any payments made in respect of added years; and
(b) in relation to a person who enters local government
employment after leaving Federated Schemes Employment, any payments similar
in character to those referred to in (a)
of this definition for which provision was made in the relevant scheme.
(2) For the purposes
of these rules a justices' clerk shall be deemed to be in the employment of
the magistrates' courts committee or committee of magistrates by whom he is,
or under the provisions of any enactment is deemed to have been, appointed,
and in relation to any such person references to “employment” shall be construed accordingly.
(3) Any references
in these rules to a person as a contributory employee, or to contributing
service, or to the Act of 1937, the Act of 1953, the benefits regulations,
or any provision in any of those enactments in their application to that person
shall be deemed to include references to a person as a local Act contributor
within the meaning of the Act of 1937 and to a person entitled to participate
in the benefits of a superannuation fund maintained under a local Act scheme,
or to service for the purposes of a local Act scheme, or to any corresponding
local Act or scheme or provision therein in their application to that person.

(4) References in these
rules to a numbered rule shall, unless the reference is to a rule of a specified
enactment, be construed as references to the rule bearing that number in these
rules.
(5) Unless the context
otherwise requires, references in these rules to the provisions of any enactment
shall be construed as references to those provisions as amended, extended,
modified, applied or re-enacted by any subsequent enactment.
(6) The Interpretation Act 1889
shall apply for the interpretation of these rules as it applies for the interpretation
of an Act of Parliament.
3 

(1) Subject to the
provisions of these rules, the expression “prescribed period”
in rules 4 and 8
means a period of 12 months after the date on which
a person left local government employment or, as the case may be, Federated
Schemes Employment, and in the case of a person who immediately after leaving
such employment became engaged in national service, a period of 6 months after
the termination of that service.
(2) The reference in
the preceding paragraph to a period of 12 months shall be construed in relation
to a person to whom section 6
of the Act of 1948 applies (which makes special provision as to local government
superannuation during periods of emergency) as a reference to a period of
5 years or such longer period as the Minister may in any particular case allow.

PART II
4 

(1) Subject to the
provisions of these rules and subject to the conditions specified in rule 5 being satisfied, this part
of these rules shall apply—
(a) to a person
who on or after the commencement of these rules enters Federated Schemes Employment
within the prescribed period, having left local government employment not
earlier than 4th February 1948, and
(b) if the fund
authority consent, to a person who before the commencement of these rules
entered Federated Schemes Employment within the prescribed period, having
left local government employment not earlier than 4th February 1948.
(2) This part of these
rules shall not apply to any person—
(a) who has become
entitled to and received payment of any benefit (other than a return of contributions)
in respect of his local government employment; or
(b) in respect
of whom a transfer value has been paid by the fund authority since he left
his local government employment.
5 
The conditions referred to in rule 4
are that the person shall, before or within 3 months after entering Federated
Schemes Employment or, if he entered that employment before the commencement
of these rules, within 6 months after their commencement—
(a) notify the Trustee
in writing that he desires these rules to apply to him;
(b) furnish the Trustee
with particulars in writing of any national service in which he has been engaged
since leaving local government employment; and
(c) pay to the fund
authority an amount equal to any sum paid to him by way of return of contributions
(other than voluntary contributions) on or after leaving local government
employment, together with any further sum by way of interest required under rule 17.
6 

(1) The fund authority
shall, when this part of these rules becomes applicable to a person—

(a) pay to the
Trustee, subject to the provisions of these rules, the same transfer value
as would have been payable under the transfer value regulations if that person
had become a contributory employee under another local authority in the circumstances
described in section 29
of the Act of 1937, less an amount equal to any sum which the fund authority
may become liable to pay by way of income tax in respect of the amount transferred
by way of transfer value; and
(b) furnish the
Trustee and the person with the same particulars as to previous pensionable
service as would have been furnished to the person if instead of entering
Federated Schemes Employment he had become a contributory employee under another
local authority.
(2) The transfer value
payable in respect of a person who left local government employment before
1st April 1968 and who entered Federated Schemes Employment before 1st April
1969 shall be calculated by reference to his age at 1st April 1969.
(3) The transfer value
payable in respect of a person who enters Federated Schemes Employment on
or after 1st April 1969 and more than 12 months after leaving local government
employment shall be calculated by reference to his age on entering Federated
Schemes Employment.
(4) The transfer value
payable in respect of a person who had been an established officer or servant
within the meaning of the Asylums Officers' Superannuation
Act 1909 (in this rule called “the Act
of 1909”) shall be calculated as if paragraph (c) had been omitted from
the definition of “service” in paragraph 1 of Schedule 1 to the
transfer value regulations.
(5) Where—
(a) a transfer
value is payable by a fund authority in respect of a person who before entering
local government employment had been subject to the Act of 1909, and
(b) the body by
whom he was last employed while subject to that Act (in this rule called “the
hospital body”) would, if he had become entitled to a superannuation
allowance on leaving local government employment, have been liable to contribute
to that allowance,the hospital body shall pay to the fund authority a sum equal to
the transfer value which they would have been liable to pay to the Minister
of Health under regulation 56(4)
of the National
Health Service (Superannuation) Regulations 1950 if that regulation had become applicable
to the person when he entered Federated Schemes Employment.
(6) Where the hospital
body would have had in respect of any such contribution as aforesaid a right
of contribution from any other body, that other body shall pay to the fund
authority a sum equal to the transfer value which they would have been liable
to pay to the Minister of Health under paragraph (5) of the said regulation
56 if that regulation had become applicable to the person when he entered
Federated Schemes Employment.
(7) Where any body
referred to in paragraph (5) or (6) hereof has been dissolved or has ceased
to exercise functions as such, references to that body shall be construed
as reference to the appropriate authority as defined in paragraph (15) of
the said regulation 56.
(8) Notwithstanding
anything in the Act of 1937, when this part of these rules becomes applicable
to a person, he shall cease to be entitled to any payment out of a superannuation
fund administered by the fund authority other than a payment by way of return
of voluntary contributions.
7 

(1) Where a person
enters, or before the commencement of these rules entered, Federated Schemes
Employment after leaving local government employment and these rules have
become applicable to him, the authority or body by whom he was employed may,
within 6 months after the date on which they are informed by the Trustee of
his notification that he desires these rules to apply to him, exercise any
discretion which, with a view to increasing the benefits payable to him, they
could have exercised at the time when he left their employment if he had then
retired and had been entitled to a retirement pension under regulation 5 of the benefits regulations
or (if that regulation was not applicable to him) to any corresponding benefit
provided under the superannuation provisions which were applicable to him
in that employment.
(2) A decision in
the exercise of any discretion under this rule shall be subject to the limitations
and restrictions (if any) and to the right of appeal (if any) to which it
would have been subject if the discretion had been exercised on the person's
retirement in the circumstances aforesaid.
(3) Where a discretion
has been exercised under this rule, the service reckonable immediately before
he left his former employment by the person in whose favour the discretion
has been exercised shall be deemed to have been correspondingly increased,
and the transfer value payable in respect of him shall be calculated accordingly.

(4) Any increase in
service, if attributable to a decision under this rule to increase benefit
otherwise than by any notional increase or extension of the service reckonable
for the purpose of calculating benefit, or by treating any specified period
of non-contributing service as contributing service or, under a local Act
scheme, by similarly converting service of one category to service of another
category, shall be ascertained by converting the service in respect of which
the higher rate of benefit is payable into contributing service in the manner
in which non-contributing service is converted into contributing service under section 2(4) of the Act of 1953.

(5) Where the amount
of any transfer value payable under rule 6
is increased in consequence of the exercise by an authority or body of any
power conferred upon them by this rule, that authority or body shall repay
the amount of the said increase to the superannuation fund out of which the
transfer value is payable.
PART III
8 
Subject to the provisions of these rules and to the conditions
specified in rule 9
being satisfied, this part of these rules shall apply—
(a) to a person who
on or after the commencement of these rules enters local government employment
within the prescribed period, having left Federated Schemes Employment not
earlier than 1st April 1966, and
(b) if the Trustee
consents, to a person who before the commencement of these rules entered local
government employment within the prescribed period having left Federated Schemes
Employment not earlier than 1st April 1966.
9 
The conditions referred to in rule 8
are that—
(a) the person shall,
before or within 3 months after entering local government employment or, if
he entered that employment before the commencement of these rules, within
6 months thereafter—
(i) notify the
fund authority in writing that he desires these rules to apply to him;
(ii) furnish
the fund authority with particulars in writing of any national service in
which he has been engaged since leaving Federated Schemes Employment; and

(iii) pay to
the Trustee an amount equal to any sum paid to him by way of return of contributions
(other than voluntary contributions) on or after leaving Federated Schemes
Employment, together with any further sum by way of interest required under rule 17, and
(b) the fund authority
shall receive from the Trustee a transfer value, calculated under the rules
of the relevant scheme, in respect of the service which the person was entitled
to reckon for purposes of the relevant scheme immediately before leaving Federated
Schemes Employment.
10 

(1) Subject to the
provisions of this rule, a person to whom this part of these rules applies
shall be entitled to reckon as contributing service such number of completed
years and months as having regard—
(a) to his age
and remuneration at the date when he left Federated Schemes Employment and

(b) to the class
to which he belonged or the description under which he fell as an officer
or a servant on entering local government employment,would have produced a transfer value of the amount received under rule 9(b) had he left local government
employment in the circumstances described in section 29
of the Act of 1937 at that date.
(2) The reference
in the preceding paragraph to the person's age shall be construed—
(a) where he
left Federated Schemes Employment before 1st April 1968 and entered local
government employment before 1st April 1969, as a reference to his age at
1st April 1969;
(b) where he
enters local government employment on or after 1st April 1969 and more than
12 months after leaving Federated Schemes Employment, as a reference to his
age on entering local government employment.
(3) The reference
in paragraph (1) of this rule to a transfer value shall be construed as a
reference to a transfer value which is not subject to reduction under regulation 6 of the transfer value
regulations or under any regulations made or having effect as if made under section 110
of theNational
Insurance Act 1965
(4) A person to
whom this part of these rules applies shall not be entitled under section 12(2) of the Act of 1937
to reckon as non-contributing service any service as referred to therein before
the date he entered Federated Schemes Employment if—
(a) a transfer
value in respect of that service has been paid under rule 6, or
(b) a transfer
value in respect of that service has been paid under the corresponding provision
of any other interchange rules, or
(c) a transfer
of assets in respect of his accrued pension rights has been made out of a
local authority's superannuation fund under any enactment.
(5) Any service
which would have been reckonable under the relevant scheme by a person to
whom this part of these rules applies for the purpose of determining whether
he was entitled to receive a benefit thereunder shall be reckonable to the
same extent for the purpose of determining whether he is entitled to receive
a benefit as a contributory employee.
11 

(1) The provisions
of this rule shall have effect for the purpose of enabling a person to whom
this part of these rules applies to continue any voluntary contributions which
are described herein and which he was in course of paying immediately before
leaving Federated Schemes Employment.
(2) Where a person
elects to continue any such contributions, he shall—
(a) when notifying
the fund authority under rule 9(a)(i),
notify them also that he wishes to continue the payment of voluntary contributions;

(b) within the
period specified in rule 9(a),
or allowed under rule 16,
pay to the fund authority a sum equal to the sum (if any) paid to him by way
of return of any such contributions; and
(c) make the
payments required by this rule.
(3) Where the voluntary
contributions were paid in respect of added years, the person shall pay the
outstanding amounts as they would have been payable in his Federated Schemes
Employment; and thereupon having regard to the total amount of voluntary contributions
there shall be added to the service which he is entitled to reckon under rule 10 such period as may be
certified by an actuary to be appropriate.
(4) Where the voluntary
contributions were paid by way of—
(i) instalments
in discharge of a fixed sum or
(ii) contributions
of a fraction or percentage of emoluments,as a condition of being entitled to reckon any period of service
for the purposes of the relevant scheme, or as a condition of increasing the
length at which any period of service would be reckoned for those purposes,
the person shall be entitled to continue making those payments to the fund
authority; and there-upon having regard to the total amount of voluntary contributions
there shall be added to the service which he is entitled to reckon under rule 10 such period as may be
certified by an actuary to be appropriate.
(5) Notwithstanding
the provisions of this rule, the person shall not be required to make payments
between the date on which he retires from local government employment and
the date on which he would ordinarily have expected to retire from Federated
Schemes Employment if he had continued therein.
12 

(1) Where any enactment
relating to local government superannuation refers, in connection with assessing
a return of contributions or a benefit, to the amount of the contributions
paid by a person, the amount of the contributions paid by a person to whom
this part of these rules applies shall be deemed to be increased, in accordance
with the provisions of this rule, to take account of earlier periods of service
which became reckonable under rule 10.

(2) Subject to the
provisions of this rule, the amount of the increase shall be the amount which
would have been payable to him if, on leaving Federated Schemes Employment,
he had been entitled to a return of contributions without interest.
(3) Where an amount
described in paragraph (1) of this rule is the amount of a person's contributions
with interest thereon, interest shall also be payable on the amount by which
those contributions are increased under paragraph (2), calculated—
(a) as respects
the period ending immediately before he entered local government employment,
at the rate at which it would have been calculated under the relevant scheme
if on leaving Federated Schemes Employment he had been entitled to a return
of contributions with interest; and
(b) as respects
the period beginning on his entry into local government employment, in the
manner described in section 10(1)
of the Act of 1937.
(4) For the purposes
of this rule no account shall be taken of—
(a) payments
made voluntarily for securing family benefits;
(b) any sum
in respect of contributions which were returned to and retained by the person
who paid them;
(c) any voluntary
contributions described in rule 11
which have not been continued under that rule.
13 
The provisions of section 11
of the Act of 1953 (which enables persons who would otherwise be debarred
from becoming contributory employees on grounds of age to reckon, in relation
to local government employment, previous service reckonable under a pension
scheme) shall apply in relation to a person who entered the employment of
a local authority from Federated Schemes Employment before the commencement
of these rules; and the references in subsection (3)
of that section to the passing of the Act shall be construed as including
references to the commencement of these rules.
14 
Where a person to whom this part of these rules applies—

(a) had entered,
and then left, local government employment before the commencement of these
rules, and then
(b) had entered,
or enters, further employment in such circumstances that a transfer value
is paid under section 29
of the Act of 1937 or by virtue of interchange rules,
then if the fund authority to whom the person first paid
contributions after leaving Federated Schemes Employment receive a transfer
value under rule 9(b),
they shall—
(i) treat the service
which becomes reckonable under rule 10
as though it had been reckonable at the time when he ceased to participate
in their fund and
(ii) re-calculate
the transfer value which they paid in respect of him.
15 
The provisions of section 35
of the Act of 1937 (which provides for decision of questions and appeals to
the Minister) shall have effect in relation to a person who enters local government
employment in circumstances in which these rules apply as if the reference
in that section to regulations made under that Act included a reference to
these rules:
Provided that this rule
shall not apply in relation to a person who is a local Act contributor.
PART IV
16 

(1) A fund authority
and the Trustee may at any time, on the application of a person who desires
these rules to apply to him, agree to extend any of the following periods,
namely—
(a) the periods
of 6 and of 12 months referred to in rule 3(1)
and
(b) the periods
of 3 and of 6 months referred to in rules 5 and 9
within which the person must notify in writing that he desires these rules
to apply to him.
(2) A fund authority
or the Trustee may, in respect of a person required to furnish particulars
in writing of national service or pay any sum described in rule 5(c) or 9(a)(iii) at
any time extend, on the application of that person, the period of 3 or of
6 months referred to in rule 5 or 9,
as the case may be, within which he must take such action.
17 

(1) Where a period
of 12 months is extended pursuant to rule 16(1)(a),
the fund authority in respect of a person who has left local government employment,
or the Trustee in respect of a person who has left Federated Schemes Employment,
may require that person to pay compound interest on any sum paid to him by
way of return of contributions (other than voluntary contributions) on or
after leaving that employment, at a rate of 3% per annum with half-yearly
rests for a period beginning either with the date 12 months after the date
on which he left that employment or, where this is later, the date on which
he received such sum, and ending with the date on which he notified in writing
that he desired these rules to apply to him.
(2) The interest
payable under this rule shall not exceed a sum equal to one-half of the difference
between the transfer value payable under these rules or the rules of the relevant
scheme, as the case may be, and the transfer value which would be payable
if calculated by reference to the person's age on leaving such employment.

Given under the official seal of the Minister of Housing and
Local Government on 21st March 1969.
Anthony Greenwood
Minister of Housing and Local.Government
