EMPLOYER Discretions POLICY LGPS
Introduction
Under Regulation
60 (statements of policy about exercise of discretionary functions) of the LGPS
Regulations 2013 and paragraph 2(2)
of Schedule 2 of the LGPS Transitional Regulations 2014, employers are
required to make and publish policy statements on how they will exercise five specific mandatory discretions.
Scheme
Employer Discretions
Specific discretions under the LGPS
Regulations 2013 and the LGPS
Transitional Regulations 2014
Details of the five discretions available are as follows:
1. Shared
Cost Additional Pension Contribution (SCAPC)- Regulation 16 (2)(e) and 16
(4)(d)
Where an active member pays Additional Pension
Contributions by regular or lump sum contribution to purchase extra annual
pension, an employer can choose to voluntarily contribute towards the cost of
purchasing that extra pension through a SCAPC
Tydd St Mary Parish Council does not consider contributions towards additional pension contributions
to be an essential part of its employment strategy. However, Tydd St Mary Parish Council will consider applications made under
these specific provisions having regard to the Councils general policy from time to time, on the employee pay
strategy and the particular circumstances surrounding each case.
It is likely that decisions will be made on the merits of each case
having particular regard to factors such as:
·
Tydd St Mary Parish
Councils ability to meet the cost of granting such a
request; and/or
·
the member’s personal circumstances.
2. Awarding Additional Pension - Regulation 31
An employer can
choose to grant additional pension up to the maximum allowed by the scheme
rules provided that the member is active or
is within 6 months of leaving for
reasons of redundancy or
business efficiency or whose
employment was terminated by mutual consent on grounds of business efficiency.
Employers may wish to use this Regulation as
an aid to recruitment, an aid to retention or to compensate or reward an
employee who is retiring.
Employers should also consider provisions of
this Regulation, in particular Regulation 31(4), if they decide to exercise
their power under Section 1 (general
power of competence) of the Localism Act 2011.
Tydd St Maey Parish Council will consider applications made under this Regulation having regard to the particular circumstances
surrounding each case. Decisions will be made on the merits of each case having
particular regard to the following:
·
the member’s personal circumstances;
·
the interests of Tydd St Mary Parish Council;
·
the additional contributions due to the Fund
by the Council in respect of the
exercise of this discretion;
·
any potential benefits or savings to Gedney Parish Council arising from the
exercise of this discretion;
·
other options that are, from time to time,
available under the Councils severance
arrangements;
·
the funding position of Tydd St Mary Parish Council within the
Fund;
·
the ability of the Council to meet the cost of granting such an award.
3. Flexible Retirement - Regulation 30(6)
An employer can decide whether to permit a
member who has attained the age of 55 to draw all or part of their retirement
benefits (both pension and lump sum) whilst continuing in employment and Fund
membership provided that:
·
there has been a reduction in hours, or
·
a reduction in grade.
An employer may agree to waive in whole or in
part any actuarial reductions that would be required (see below: Regulation
30(8)).
Tydd St Mary Parish Council will consider applications made under this Regulation having regard to
the particular circumstances surrounding each case. Decisions will be made on
the merits of each case having particular regard to:
·
the operating requirements of the employing
department
·
Tydd St Mary Parish
Councils ability to meet the cost of granting such a
request
·
whether any demonstrable cost saving in excess
of potential savings available under any severance arrangements in place from time to time can be made
·
the member’s personal circumstances.
·
whether to permit the member to choose to draw
all, part or none of the pension benefits they have built up after 1 April
2008. Your flexible retirement policy should set out your position on this
matter.
4. Waiving actuarial reductions - Regulation 30(8)
An employer may agree to waive in whole or in
part the actuarial reductions that would be required:
·
all of the reductions in respect of pre 1 April 2014 benefits but only
on compassionate grounds (paragraph 2 of Schedule 2 of the LGPS Transitional
Regulations 2014);
·
all or some of the actuarial reduction in respect of post 1 April 2014
on any grounds.
Where 85 year rule protections exists and the
member has full or tapered protection the employer can waive all of the
reductions but only on compassionate grounds for the service up to the date the
85 year rule protection ends (31 March 2016 (full) or 31 March .2020
(tapered)).
Tydd St Mary Parish Council, will consider
applications made under this Regulation having regard to the particular
circumstances surrounding each case. Decisions will be made on the merits of
each case having particular regard to:
·
Tydd St Mary Parish Councils ability to meet the cost of granting such a request
·
whether any demonstrable cost saving in excess
of potential savings available under any severance arrangements in place from
time to time can be made
·
the member's personal circumstances
Applications for the payment of unreduced benefits for service before 1
April 2014 on the grounds of compassion will be granted if:
·
in the Councils sole opinion, the special
extenuating circumstances surrounding the application, along with the
supporting evidence provided justify approval and
·
Tydd St Mary Parish Council can meet the cost of granting such a request.
5. Switching
on the 85 rule – Schedule 2 - 1(1)(c) of the LGPS Transitional Regulations 2014
An employer can decide whether to “switch on”
the 85 year rule to allow members who have protections under old regulations,
and who choose to voluntarily draw their benefits on or after age 55 and before
age 60 to receive benefits either unreduced or with a smaller reduction to
their 85 year rule date. The employer will be responsible for meeting any
strain costs relating to benefits being paid before age 60. If the employer
does not “switch on” the 85 year rule the member’s benefits will be reduced to
age 60 or the date they meet the 85 year rule if later.
Tydd St Mary Parish
Council, will consider applications made under this Regulation having
regard to the particular circumstances surrounding each case. Decisions will be
made on the merits of each case having particular regard to:
·
Tydd St Mary Parish Councils ability to meet the cost of granting such a request;
·
whether any demonstrable cost saving in excess
of potential savings available under any severance arrangements in place from
time to time can be made;
·
the member's personal circumstances.
Recommended (non-mandatory) LGPS 2013 & 2014 discretions
An employer can decide to extend the 12-month
time limit to permit a member to transfer their previous pension rights from
another scheme, if an election had not been made within 12 months of joining
the LGPS.
Tydd St Mary Parish
Council, will only consider applications made under this Regulation in
the most exceptional circumstances and if:
·
evidence indicates that the Fund had not informed
the member about the transfer within the 12 month time limit, or
·
verifiable evidence indicates that the member
made an election to transfer within 12 months of joining the LGPS, but the
election form was not received by the Fund.
An employer can decide to extend the 30 day
deadline for a member to purchase additional pension by SCAPCs upon return from
a period of unpaid absence (other than because of illness or injury, relevant
child-related leave or reserve forces leave).
Tydd St Mary Parish Council will exercise its discretion to allow late payment, and decide each
case on its individual merits.
An employer must decide how to allocate the
pension contribution band for a new employee, and review at each subsequent
April.
Tydd St Mary Parish Council will determine and review the rate of employee contributions in
accordance with Regulation 9 and Regulation 10 of the LGPS Regulations 2013.
An employer can when
calculating Assumed Pensionable Pay decide to include the amount of any regular lump
sum payment received by the member in the 12 months preceding the date the
absence began or the ill health retirement or death occurred.
Tydd St Mary Parish Council will not include any regular lump sum payment received by the member in
the 12 months preceding the date the absence began or the ill health retirement
occurred.
An employer can choose to pay for
or contribute towards a member’s
Additional Voluntary Contribution
through a SCAVC arrangement.
Tydd St Mary Parish Council will not exercise its discretion to contribute towards
a SCAVC arrangement.
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Version Number |
Date Approved |
Amendments made |
Next review Date |
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V1 |
June 2024 |
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June 2027 |
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