
PART I
1 
These rules may be cited as the Superannuation (Local Government
and National and Local Government Officers Association) 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 Association 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;

 “the Association” means the National and Local Government Officers Association;

 “Association employment”
, in relation to any person, means employment
in which the person is subject to the Staff Superannuation Fund;

 “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;
 “the Council” means the National Executive Council of the Association;

 “enactment” includes any instrument made under any enactment;
 “fund authority” means a local authority maintaining a superannuation fund to which a person
either became a contributor after he left Association employment or, as the
case may be, was last a contributor before he entered Association 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;

 “the Staff Superannuation Fund”
 means the Staff Superannuation Fund
of the Association;
 “transfer value regulations”
 means the Local Government Superannuation (Transfer Value) Regulations
1954;

 “voluntary contributions”
 means—
(a) in relation to a person who enters Association
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 Association employment, any payments similar in character
to those referred to in (a) of this definition
for which provision was made by the rules of the Staff Superannuation Fund.

(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, Association
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 Association employment
within the prescribed period, having left local government employment not
earlier that 4th February 1948, and
(b) if the fund
authority consent, to a person who before the commencement of these rules
entered Association 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 Association
employment or, if he entered that employment before the commencement of these
rules, within 6 months after their commencement—
(a) notify the Council
in writing that he desires these rules to apply to him;
(b) furnish the Council
with particulars in writing of any national service in which he has been engaged
since leaving local government employment; and
(c) pay to the Staff
Superannuation Fund 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 18.

6 

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

(a) pay to the
Staff Superannuation Fund, 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—
(i) 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
(ii) an amount
equal to any interest required under rule 18;
and
(b) furnish the
Council and the person with the same particulars as to previous pensionable
service as would have been furnished to the person if instead of entering
Association 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 Association 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 Association 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 Association 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)
has 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 Association 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
Association 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 references 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 the 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, Association 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 Council 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 favor 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 the rules enters local government employment
within the prescribed period, having left Association employment not earlier
than 4th February 1948, and
(b) if the Council
consent, to a person who before the commencement of these rules entered local
government employment within the prescribed period, having left Association
employment not earlier than 4th February 1948.
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 Association employment; and
(iii) 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
Association employment, together with any further sum by way of interest required
under rule 18,
and
(b) the fund authority
shall receive from the Staff Superannuation Fund a transfer value, calculated
in accordance with the schedule to these rules, in respect of the service
which the person was entitled to reckon for purposes of the Staff Superannuation
Fund immediately before leaving Association employment.
10 

(1) Subject to the
provisions of these rules, a person to whom this part of these rules applies
shall be entitled to reckon—
(a) the pensionable
service he was entitled to reckon at full length for the purposes of the Staff
Superannuation Fund, as contributing service; and
(b) any other
service he was entitled to reckon for such purposes as contributing service
for a period reduced by the fraction by which it would have been reduced under
the Staff Superannuation Fund.
(2) Where a person
had been engaged in national service before entering local government employment,
the period of service which he becomes entitled to reckon under this rule
shall, if the transfer value received under rule 9(b)
is calculated so as to include the liability from which the Staff Superannuation
Fund was relieved in respect of the period of national service, be treated
as increased by so much of that period as would have been reckonable as pensionable
service had the person returned to Association employment on the termination
of his national service.
(3) Any service
which would have been reckonable under the Staff Superannuation Fund 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.
(4) Where any part
of the service of a person to whom this part of these rules applies is attributable
to service, before he entered Association employment, which was non-contributing
service for the purpose of these rules or of regulations made under section 67
of the National
Health Service Act 1946, such service shall
be reckonable in the manner and to the extent to which it would have been
reckonable if instead of entering Association employment he had become a contributory
employee.
(5) 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 Association 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.
(6) Where at any
time after a transfer value has been received under rule 9(b), any further period
of employment has become reckonable as service for purposes of the Staff Superannuation
Fund, and the Council remit to the fund authority a further transfer value
in respect of it, that further period shall be reckonable as it would have
been if the further transfer value had been received under rule 9(b).
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 Association employment.
(2) Where a person
elects to continue any such contribution, 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)(iii)
or allowed under rule 17,
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 Association employment;
and thereupon in respect of the added years to which the voluntary payments
relate he shall enjoy rights and be subject to liabilities as if those years
were added years in respect of which payments were being made under regulation 12 of the benefits
regulations.
(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 Staff Superannuation Fund, or as a condition of increasing
the length at which any period of service would be reckoned for those purposes,
the person shall pay in the former case a sum or sums equivalent to the aggregate
amount or value of the unpaid instalments, and in the latter case a sum or
sums equivalent to the capital value of the outstanding liabilities (as certified
by an actuary appointed by the Staff Superannuation Fund trustees), as if paragraphs 2, 4(a) and 4(b) of Schedule 2
to the benefits regulations applied to the payment of any such sum or sums;
and thereupon his service shall for purposes of rule 10
be affected as nearly as may be in the same manner as it would have been affected
in his Association employment if he had completed those payments before leaving
that employment.
(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 Association
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 Association 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 Staff Superannuation
Fund if on leaving Association 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; or
(d) any sum
paid by way of interest under rule 9(a)(iii).

13 

(1) In this rule—

 “insured person” means an insured person within the meaning of the National Insurance Act 1965
or, if the person left Association employment before 5th July 1948, an insured
person under the National Health Insurance Acts 1936 to 1938 or the Widows', Orphans' and Old Age Contributory Pensions Act 1936
;
 “local government
modification provisions” means 
the provisions of the National Insurance (Modification
of Local Government Superannuation Schemes) Regulations 1947 and of Part III of and Schedule 3 to
the benefits regulations;
 “pension scheme modification
provisions” means any provisions
contained in or relating to the Staff Superannuation Fund, whereby the benefits
provided under the Fund are modified in pursuance of any enactment re-enacted
in the National Insurance Act 1965, whether directly, or indirectly, by adjustment
of remuneration by reference to which benefits are calculated, or otherwise
;
 “unreduced” in relation
to a transfer value, means without reduction under regulation 6 of the transfer value
regulations, or under that regulation as applied by paragraph 8(1) of the schedule
to these rules.
(2) Where the following
conditions are satisfied in relation to a person to whom this part of these
rules applies, namely—
(a) that he
was an insured person in Association employment, and
(b) that a transfer
value is received which is unreduced in respect of the whole of the period
of employment which he becomes entitled to reckon under these rules,the local government modification provisions shall not apply to
him.
(3) Where the conditions
specified in paragraph (2) above are not satisfied in relation to such a person,
the local government modification provisions shall apply to him, and shall
so apply as if any period of employment which he becomes entitled to reckon
under these rules were service rendered on or after 5th July 1948:Provided that—

(a) 
if part of the transfer value is received unreduced, the period of employment
to which that part relates shall be treated as service before 1st September
1947; and
(b) 
if on or before 5th July 1948 the pension scheme modification provisions (or
any corresponding provisions contained in any scheme to which he was formerly
subject in employment which was reckonable as service for the purposes of
the Staff Superannuation Fund) modified benefit by reference to a table and
to age at a given date, the local government modification provisions shall
have effect as if any provision therein modifying benefit by reference to
a table and age at a given date applied to him, except that the reference
to age at that date shall be construed as a reference to his age at that date
which was relevant for the purpose of the pension scheme modification provisions.

(4) Nothing in this
rule shall affect the application of regulation 18 of the National Insurance (Modification of Local Government
Superannuation Schemes) Regulations 1963 (which provides for reduction of local
government pensions in respect of certain former employments).
14 
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 Association 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.
15 
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 Association 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.
16 
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
17 

(1) A fund authority
and the Council 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 Council 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; and when the person
receives notice in writing of their approval of his application he shall be
deemed to have complied with the relevant condition specified in that rule.

18 

(1) Where a period
of 12 months is extended pursuant to rule 17(1)(a),
the fund authority in respect of a person who has left local government employment,
or the Council in respect of a person who has left Association 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 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 25th March 1969.
Anthony Greenwood
Minister of Housing and Local Government

SCHEDULE
Rule 9 (b)
1 
The transfer
value receivable under these rules in respect of a person who leaves Association
employment shall be an amount equal to the transfer value which would have
been payable under the transfer value regulations if—
(a) the person, at the
date when he left Association employment, had ceased to be a contributory
employee under one local authority and had become such an employee under another
local authority in the circumstances described in section 29
of the Act of 1937 and
(b) the transfer value
regulations had, at that date, been subject to the modifications set out in
this schedule and to such incidental and consequential modifications as might
have been necessary.
2 
References
to contributing service shall be construed as references to service which—

(a) would have been reckonable
for the purpose of calculating a benefit under the Staff Superannuation Fund
and
(b) is not non-contributing
service:Provided that where such
service would not have been reckonable at full length, it shall be reckonable
as service for a period reduced by the fraction by which it would have been
reduced under the Staff Superannuation Fund.
3 
References
to non-contributing service shall be construed as references to service which—

(a) would have been reckonable
for the purpose of calculating a benefit under the Staff Superannuation Fund
and
(b) is attributable to
service, before entering Association employment, which was non-contributing
service for the purpose of the Act of 1937 or of regulations made under section 67 of the National Health Service Act 1946.

4 
Where
the person was formerly in local government employment and was making voluntary
contributions which he had continued but not completed while in Association
employment, or where the person was making similar payments originating in
Association employment or any other employment, and in either case has elected
to continue payments under rule 11,
then—
(a) the period in respect
of which the payments are being made shall be treated as if the payments had
been completed before he left Association employment; and
(b) the transfer value
shall be reduced by the amount of the payments outstanding at the date of
leaving Association employment.
5 
References to added
years shall be construed as references to added years as defined in rule 2(1).
6 

(1) Where the person
left Association employment before 1st April 1968 and entered local government
employment before 1st April 1969, references to his age shall be construed
as references to his age at 1st April 1969.
(2) Where the person
enters local government employment on or after 1st April 1969 and more than
12 months after leaving Association employment, his age shall be taken to
mean his age at the date of entering local government employment.
(3) The transfer value
payable in respect of a further period of employment described in rule 10(6) shall be calculated
by reference to the person's age at the date on which the Council notify the
fund authority that such a transfer value has become payable.
7 
References to a person's
remuneration shall be construed as references to his annual remuneration for
the purpose of the Staff Superannuation Fund immediately before leaving Association
employment.
8 

(1) Where a person's
benefits under the Staff Superannuation Fund would have been reduced in respect
of any period of Association employment by reason of the provisions for flat-rate
retirement pension in the National Insurance Act 1965,
the amount of the transfer value shall be reduced by the sum shown in the
appropriate column of the Table in Schedule 5
to the transfer value regulations in relation to an age which corresponds—

(a) in the case of
a person referred to in paragraph 6
of this schedule, with the age specified therein and
(b) in any other
case, with his age at the date of leaving Association employment,in respect of each one pound of the amount by which any benefit
by way of annual amounts to which he may become entitled under the Staff Superannuation
Fund may be reduced thereunder in respect of any service of which account
is taken in the calculation of the transfer value (excepting service referred
to in sub-paragraph (2)
hereof), and by a proportionate sum in respect of any fraction of a pound
included in the said amount.
(2) Where either—

(a) a person's benefits
under the Staff Superannuation Fund would have been reduced in respect of
any period of Association employment by reason of the provisions for graduated
retirement benefit in the National Insurance Act 1965.or

(b) on or after leaving
Association employment a payment in lieu of contributions has been made or
equivalent pension benefits have been assured,regulation 11
of the National
Insurance (Modification of Local Government Superannuation Schemes) No.2 Regulations
1961
(which relates to the reduction of transfer values) shall apply as if that
period of employment were mentioned in paragraph (1) thereof; and for this
purpose—
(i) references in
the said regulation 11 to Part IV of the transfer value regulations shall
be construed as references to sub-paragraph (1) hereof; and
(ii) references
in the said regulation 11 to persons mentioned in regulation 5
of the said regulations of 1961 shall be construed as references to persons
who have not been subject to reduction as mentioned in the said sub-paragraph(1).

9 

The transfer value shall be reduced by an amount equal to that paid under rule 18 by the person in respect
of interest on the contributions returned to him on or after he left Association
employment.
10 
The transfer value
shall be reduced by an amount equal to any income tax which the Staff Superannuation
Fund may have become liable to pay in respect of the transfer value.