Local Government Pension Scheme Employer Discretion Policy
1. Introduction
1.1. The Local Government Pension Scheme (LGPS) is a statutory scheme and participation as an employing organisation is governed by statute. Most of the rules and regulations are determined by the Government.
1.2. The Waterbeach Level Internal Drainage Board is an employer member of the Cambridgeshire LGPS Fund and as at 01.04.14, all staff members have opted to join the scheme.
1.3. Some areas of the LGPS are left to employers’ local discretion and where there is a requirement to have a local policy in place, for certain matters within scheme regulations, not doing so means that the employer (IDB) is in breach of its Statutory responsibility and is liable for this breach. There is in effect a regulatory requirement concerning the operation of certain discretions.
1.4. Regulation 60 of the LGPS Regulations 2013 and previous legislation makes it a statutory requirement that an “employer publishes and maintains a written policy on the exercise of certain discretions”.
1.5. These employer discretions must be formally determined by the Board, a written policy must be published and maintained and it is a requirement on the Board to notify the administering authority of the LGPS in Cambridgeshire on what basis the local discretions will be operated. As the new LGPS comes into force on 1st April, 2014, it is necessary to adopt new policy statements.
1.6. This duty to publish and maintain a policy is because such policy decisions have immediate costs but they may also have long-term, additional liability consequences which could affect each Board’s employer pension contribution rate for many years.
1.7. The Board has a duty to bear in mind its fiduciary duties, as a controller of the public purse, when devising policy on the exercise of LGPS discretions and the Board needs to be able to demonstrate this duty.
2. Background
2.1. Following the Government’s fundamental review of public sector pensions provision, it was agreed that changes were required to these schemes:-
• All public sector pension schemes should change from final salary pension schemes to career average revalued earnings schemes.
• Scheme retirement ages should be the same as state retirement pension ages.
• Scheme members and employers should share the increasing costs of providing public sector pension schemes.
• Existing rights of current scheme members should be protected.
The new LGPS accommodates all of these requirements.
2.2. Benefits accrued prior to 1st April, 2014 are largely unaffected by the new scheme and that element will continue to be assessed on a final salary basis rather than a career averaged scheme.
2.3. The Board’s pension policy requires review. The proposed new policy is set out in Appendix A.
2.4. The Regulations require that in preparing or making revisions to its pension policy statements, the scheme employer must have regard to the extent to which the exercise of any of its policies could lead to a serious loss of confidence in the public service.
3. LGPS employer’s duty to publish and maintain policies
3.1. Employers must publish and maintain policies on:-
• Power of the employer to increase total membership of an active member.
• Power of employing authority to award additional pension.
• Flexible retirement.
• Choice of early payment of pension.
3.2. In the interests of transparency and consistency, employers should also have policies in place to cover other discretions, including ill health and redundancy.
4. Why an Employer Discretion Policy is necessary
4.1. The purpose of the Board putting in place a local policy on pension discretions is to:-
• Demonstrate a clear and consistent approach when making first instance decisions.
• Protect the Board by making transparent decisions.
• Remove from the decisions personal criteria, enabling the Board to evidence clear and consistent application of discretions.
5. Pensions Discretion Policy
5.1. Attached at Appendix A is a Pensions Discretion Policy, together with Appendix B, which is the associated Statement of Policy.
5.2. The Board has adopted a policy for the exercise of pensions discretions so that there is equitable and consistent treatment of all staff across all Boards within the Ely Group. It would be divisive if staff Terms and Conditions in respect of pensions discretions were different, according to which IDB held the Employment Contract.
APPENDIX A
LOCAL GOVERNMENT PENSION SCHEME EMPLOYER DISCRETION POLICY
The Board as an employing authority is required to formulate and publish a written policy statement on the certain discretions contained within the Local Government Pension Scheme (LGPS) Regulations.
Key discretions to be exercised on and after 1st April, 2014 in relation to active scheme members and members who cease active membership after 31st March, 2014
Employers’ Pension Policy Discretions are in accordance with Regulation 60 of the LGPS Regulations 2013 and paragraph 2(2) of Schedule 2 to the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014.
1. POWER TO GRANT EXTRA ANNUAL PENSION
[Regulation 31 of the LGPS Regulations 2013]
An employer may resolve to grant extra annual pension of up to £6,500 (figure at 1st April 2014) to an active scheme member or within 6 months of leaving to a member whose employment was terminated on the grounds of redundancy or business efficiency.
Policy:
The Board notes this discretion to award additional pension benefits. It has no intention to make use of this discretionary power on the basis of cost.
2. PURCHASE OF EXTRA ANNUAL PENSION
[Regulations 16(2)(e) & 16(4)(d) of the LGPS Regulations 2013]
An employer may resolve to, where an active scheme member wishes to purchase extra annual pension of up to £6,500 (figure at 1st April 2014) by making Additional Pension Contributions (APCs), to (voluntarily) contribute towards the cost of purchasing that extra pension via a Shared Cost Additional Pension Contribution (SCAPC).
Policy:
The Board notes this discretion to allow purchase of extra annual pension. It has no intention to make use of this discretionary power on the basis of cost.
3. FLEXIBLE RETIREMENT
[Regulation 30(6) of the LGPS Regulations 2013]
An employer may resolve to permit flexible retirement for staff aged 55 or over, who, with the agreement of the employer, reduce their working hours or grade and if so, as part of the agreement to permit flexible retirement:-
– whether, in addition to the benefits the member has accrued prior to 1st April 2008 (which the member must draw), to permit the member to choose to draw:-
• all, part or none of the pension benefits they accrued after 31st March 2008 and before 1st April 2014, and/or
• all, part or none of the pension benefits they accrued after 31st March 2014 [regulations 11(2) and 11(3) of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014], and
– whether to waive, in whole or part, any actuarial reduction which would otherwise be applied to the benefits taken on flexible retirement before Normal Pension Age (NPA) [regulation 3(5) of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014, regulation 18(3) of the LGPS (Benefits, Membership and Contributions) Regulations 2007 and regulations 30(6) and 30(8) of the LGPS Regulations 2013]
Policy:
The Board would consider allowing flexible retirement. Each case would be considered individually on its merits and a full report including a detailed financial analysis would be produced.
4. 85 YEAR RULE
[Paragraph 1(1)(c) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014]
An employer may decide whether, as the 85 year rule does not (other than on flexible retirement) automatically apply to members who would otherwise be subject to it and who choose to voluntarily draw their benefits on or after age 55 and before age 60, to switch the 85 year rule back on for such members. Where the employer does not do so, then:-
a) if the member has already met the 85 year rule, the member’s benefits are to be reduced in accordance with actuarial guidance issued by the Secretary of State (with the benefits from any pre 1st April, 2008 membership for members who will not be 60 or more on 31st March, 2016, and benefits from any pre 1st April, 2016 for members who will be 60 or more on 31st March, 2016, which would not normally have been subject to an actuarial reduction nonetheless being subject to a reduction calculated by reference to the period between the date the benefits are drawn and age 60 [paragraphs 1(2) and (4) of Schedule 2 , of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014], or
b) if the member has not already met the 85 year rule, the member’s benefits are to be reduced in accordance with actuarial guidance issued by the Secretary of State (with the reduction on that part of the member’s benefits subject to the 85 year rule being calculated by reference to the period between the date the benefits are drawn and age 60, or the date of attaining the 85 year rule, whichever is the later), and
c) the employer can exercise a discretion to waive actuarial reductions (at cost to the employer) (see Discretion 5 below).
Policy:
The Board notes this discretion to apply the 85 year rule. It has no intention to make use of this discretionary power on the basis of cost.
5. ACTUARIAL REDUCTIONS
An employer may resolve to waive any actuarial reductions, i.e.:-
a) for active members voluntarily retiring on or after age 55 who elect under regulation 30(5) of the LGPS Regulations 2013 to immediately draw benefits and for deferred members and suspended tier 3 ill health pensioners who elect under regulation 30(5) of the LGPS Regulations 2013 to draw benefits (other than on ill health grounds) on or after age 55, who were not members of the LGPS before 1st October, 2006, whether to:-
– waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits, if any, accrued before 1st April, 2014 [regulations 3(1) and (5) of the LGPS Transitional Provisions, Savings and Amendment) Regulations 2014 and regulations 30(5) or 30A(5) of the LGPS (Benefits, Membership and Contributions) Regulations 2007], and/or
– waive, in whole or in part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31st March, 2014 [regulation 30(8) of the LGPS Regulations 2013].
b) for active members voluntarily retiring on or after age 55 who elect under regulation 30(5) of the LGPS Regulations 2013 to immediately draw benefits and for deferred members and suspended tier 3 ill health pensioners who elect under regulation 30(5) of the LGPS Regulations 2013 to draw benefits (other than on ill health grounds) on or after age 55, who were members of the LGPS before 1st October, 2006 and who will be 60 or more on 31st March 2016 (i.e. those falling within paragraph 3(1) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014), whether to:-
– waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits accrued before 1st April, 2016 [paragraph 2(1) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2024], and/or
– waive, in whole or part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31st March, 2016 [regulation 30(8) of the LGPS Regulations 2013].+
c) for active members voluntarily retiring on or after age 55 who elect under regulation 30(5) of the LGPS Regulations 2013 to immediately draw benefits and for deferred members and suspended tier 3 ill health pensioners who elect under regulation 30(5) of the LGPS Regulations 2013 to draw benefits (other than on ill health grounds) on or after age 55, who were members of the LGPS before 1st October, 2006 and who will not be 60 or more on 31st March, 2016 and will not attain age 60 between 1st April, 2016 and 31st March, 2020 (i.e. those falling within paragraph 3(2) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014),whether to:-
– waive on compassionate grounds, any actuarial reduction that would otherwise be applied to benefits accrued before 1st April, 2014 [paragraph 2(1) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014 regarding the membership before 1st April, 2008 and regulations 3(1) and (5) of, and paragraph 2(1) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014 and regulation 30(5) or 30A(5) of the LGPS (Benefits, Membership and Contributions) Regulations 2007 regarding the membership between 1st April, 2008 and 31st March, 2014], and/or
– waive, in whole or part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31st March, 2014 [regulation 30(8) of the LGPS Regulations 2013].
d) for active members voluntarily retiring on or after age 55 who elect under regulation 30(5) of the LGPS Regulations 2013 to immediately draw benefits and for deferred members and suspended tier 3 ill health pensioners who elect under regulation 30(5) of the LGPS Regulations 2013 to draw benefits (other than on ill health grounds) on or after age 55, who were members of the LGPS before 1st October, 2006 and who will not be 60 or more on 31st March, 2016 but will attain 60 between 1st April 2016 and 31st March 2020 (i.e. those falling within paragraphs 3(2) and 9 of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014), whether to:-
– waive on compassionate grounds any actuarial reduction that would otherwise be applied to benefits accrued before 1st April, 2020 [paragraph 2(1) of Schedule 2 of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014] and/or
– waive, in whole or part (on any grounds), any actuarial reduction that would otherwise be applied to benefits accrued after 31st March, 2020 (regulation 30(8) of the LGPS Regulations 2013).
Policy:
The Board notes this discretion to waive actuarial reductions. It has no intention to make use of this discretionary power on the basis of cost.
6. SHARED COST ADDITIONAL VOLUNTARY CONTRIBUTIONS
An employer may resolve whether, how much and in what circumstances to contribute to a shared-cost Additional Voluntary Contribution (SCAVC) arrangement entered into on or after 1st April, 2014 [regulation 17 of the LGPS Regulations 2013] and whether, how much and in what circumstances to continue to contribute to any SCAVC arrangement that the employer has entered into before 1st April 2014 [regulations 15(1)(d) of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014, regulation 25(3) of the LGPS (Administration) Regulations 2008 and regulation 15(3) of the LGPS (Benefits, Membership and Contributions) Regulations 2007].
Policy:
The Board notes this discretion to contribute towards a shared-cost Additional Voluntary Contribution arrangement. It has no intention to make use of this discretionary power on the basis of cost.
7. TRANSFER OF PENSION RIGHTS
An employer may resolve whether, with the agreement of the Pension Fund administering authority, to permit a scheme member to elect to transfer other pension rights into the LGPS if he/she has not made such an election within 12 months of joining the LGPS [regulation 100(6) of the LGPS Regulations 2013].
Policy:
The Board notes this discretion allow a time extension to transfer other pension rights into the LGPS. The Board will only allow this if the scheme member has requested investigations to commence within the 12 month time period.
8. EXTENSION OF TIME LIMIT FOR DEFERRED BENEFITS
An employer may resolve whether to extend the 12 month time limit within which a scheme member who has a deferred LGPS benefit in England or Wales following the cessation of employment (or cessation of a concurrent employment) may elect not to have the deferred benefits aggregated with their new LGPS employment (or ongoing concurrent LGPS employment) if the member has not made an election to retain separate benefits within 12 months of commencing membership of the LGPS in the new employment (or within 12 months of ceasing the concurrent membership) [regulations 22(7) and (8) of the LGPS Regulations 2013].
Policy:
The Board notes this discretion to allow a time extension to defer benefits. Board will only allow this if the scheme member has requested investigations to commence within the 12 month time period.
9. ALLOCATION OF CONTRIBUTION BANDS
An employer may resolve how the contribution band to which an employee is to be allocated on joining the scheme and at each subsequent April, will be determined and the circumstances in which the employer will, in addition to the review each April, review the pension contribution band to which an employee has been allocated following a material change which affects the member’s pensionable pay in the course of a scheme year (1st April to 31st March) [regulations 9 and 10 of the LGPS Regulations 2013].
Policy:
The Board will determine individual employee contribution rates on 1st April based on pensionable pay earned in the previous year plus any inflationary pay award. There will be no adjustments during the year.
10. CALCULATING ASSUMED PENSIONABLE PAY
An employer may resolve whether or not, when calculating assumed pensionable pay when a member is:-
– on reduced contractual pay or no pay due to sickness or injury, or
– absent during ordinary maternity, paternity or adoption leave or during paid additional maternity, paternity or adoption leave, or
– absent on reserve forces service leave, or
– retires with a tier 1 or tier 2 ill health pension, or
– dies in service
to include in the calculation 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. A ‘regular lump sum payment’ is a payment for which the member’s employer determines there is a reasonable expectation that such a payment would be paid on a regular basis [regulations 21(4)(a)(iv), 21(4)(b)(iv) and 21(5) of the LGPS Regulations 2013].
Policy:
The Board notes this discretion and does not include any ‘regular lump sum payment’ as pensionable pay. Therefore, it would not be included in the calculation for assumed pensionable pay.
Summary of the discretions to be exercised on and after 1st April, 2014 in relation to scheme members who ceased active membership between 1st April, 2008 and 31st March, 2014.
By virtue of regulation 66 of the LGPS (Administration) Regulations 2008, scheme employers (employing authorities) are required to prepare and publish a written policy in relation to five specific discretions:-
1. An employer may resolve whether to grant applications for the early payment of deferred benefits on or after age 55 and before age 60 [regulation 30(2) of the LGPS (Benefits, Membership and Contributions) Regulations 2007].
Policy:
The Board chooses not to make use of this discretionary power.
2. An employer may resolve whether, on compassionate grounds, to waive any actuarial reduction that would normally be applied to deferred benefits which are paid before age 65 [regulation 30(5) of the LGPS (Benefits, Membership and Contributions) Regulations 2007].
Policy:
The Board chooses not to make use of this discretionary power.
3. An employer may resolve whether to grant applications for the early payment of a suspended tier 3 ill health pension on or after age 55 and before age 60 [regulation 30A(3) of the LGPS (Benefits, Membership and Contributions) Regulations 2007].
Policy:
The Board chooses not to make use of this discretionary power.
4. An employer may resolve whether, on compassionate grounds, to waive any actuarial reduction that would normally be applied to any suspended tier 3 ill health pension benefits which are brought back into payment before age 65 [regulation 30A(5) of the LGPS (Benefits, Membership and Contributions) Regulations 2007].
Policy:
The Board chooses not to make use of this discretionary power.
5. An employer may resolve whether, within 6 months of the date of termination, to grant extra membership in the pension scheme to a scheme member whose employment was terminated before 1st April, 2014 on the grounds of redundancy or business efficiency (regulation 12 of the LGPS (Benefits, Membership and Contributions) Regulations 2007 and regulation 3(10) of the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014]. Note that this is a time limited discretion which expires on 30th September, 2014 for those whose employment is terminated on 31st March, 2014.
Policy:
The Board chooses not to make use of this discretionary power.
Summary of discretions to be exercised on and after 1st April, 2014 in relation to scheme members who ceased active membership before 1st April, 1998
1. An employer may resolve whether to grant applications for the early payment of deferred pension benefits on or after age 50 and before age 65 on compassionate grounds [regulation D11(2)(c) of the LGPS Regulations 1995].
Policy:
The Board chooses not to make use of this discretionary power.
APPENDIX B
STATEMENT OF POLICY REGARDING THE EXERCISE OF DISCRETIONS FOR EMPLOYERS WHO JOINED THE LOCAL GOVERNMENT PENSION SCHEME
Discretions from 1.4.14 in relation to post 31.3.14 active members (excluding councillor members) and post 31.3.14 leavers (excluding councillor members), being discretions under:
– the Local Government Pension Scheme Regulations 2013 [prefix R]
– the Local Government Pension Scheme (Transitional Provisions,
Savings and Amendment) Regulations 2014 [prefix TP]
– Local Government Pension Scheme (Administration) Regulations 2008
[prefix A]
– the Local Government Pension Scheme (Benefits, Membership and
Contributions) Regulations 2007 (as amended) [prefix B]
– the Local Government Pension Scheme (Transitional Provisions)
– Regulations 2008 [prefix T]
– the Local Government Pension Scheme Regulations 1997 (as
amended) [prefix L]
| No. | Discretion | Regulation | Employer Policy |
|---|---|---|---|
| 1. | Which employees to designate for membership | R3(1)(c) & R4(2)(b) | All employees |
| 2. | Determine rate of employee contributions | R9(1) & R9(3) | Rate to be determined on 1st April each year with no adjustments during the year |
| 3. | Whether, how much, and in what circumstances to contribute to a shared cost APC scheme | R16(2)(e) & R16 (4)(d) | No APC scheme is to be introduced at this time |
| 4. | Whether, how much, and in what circumstances to contribute to shared cost AVC arrangements entered into on or after 1/4/14 | R17 (1) & definition of SCAVC in RSch 1 | No AVC arrangements to be introduced at this time |
| 5. | Whether, how much, and in what circumstances to continue to contribute to a shared cost AVC arrangement entered into before 1/4/14 | TP15(1)(d) & A25(3) | No AVC arrangements to be introduced at this time |
| 6. | Allow late application to convert scheme AVCs into membership credit i.e. allow application more than 30 days after cessation of active membership (where AVC arrangement was entered into before 13/11/01) | TP15 (1)(b) & L66 (8) & former L66(9)(b) | No late applications |
| 7. | No right to return of contributions if member left due to offence of a fraudulent character or grave misconduct unless employer directs a total or partial refund is to be made | R19(2) | A refund of contributions will be directed less any debt owed to the IDB by the member |
| 8. | Specify in an employee’s contract what other payments or benefits, other than those specified in R20(1)(a) and not otherwise precluded by R20(2), are to be pensionable | R20(1)(b) | To be included in employee contracts |
| 9. | In determining Assumed Pensionable Pay, whether a lump sum payment made in the previous 12 months is a “regular lump sum” | R21(5) | ‘Lump sum payments’ are not to be included in calculations for determining Assumed Pensionable pay |
| 10. | Whether to extend the 12 month option period for a member to elect that deferred benefits should not be aggregated with a new employment | R22(8)(b) | No extension unless scheme member has requested investigations to commence within the 12 month time period |
| 11. | Whether to extend the 12 month option period for a member to elect that deferred benefits should not be aggregated with an ongoing concurrent employment | R22(7)(b) | No extension unless scheme member has requested investigations to commence within the 12 month time period |
| 12. | Whether all or some benefits can be paid if an employee reduces their hours or grade (flexible retirement) | R30(6) & TP11(2) | Each case is to be considered on its merits and full report including detailed financial analysis to be produced |
| 13. | Whether to waive, in whole or part, actuarial reduction on benefits paid on flexible retirement | R30(8) | No waivers |
| 14. | Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age | R30(8) | No waivers |
| 15. | Whether to “switch on” the 85 year rule for a member voluntarily drawing benefits on or after age 55 and before age 60 | TPSch 2, paras 1(2) & 2(2) | No intention to use this power |
| 16. | Whether to waive any actuarial reduction on pre and/or post April 2014 benefits | TP3(1), TPSch 2, paras 2(1) & 2(2), B30(5) & B30A(5 | No waivers |
| 17. | Whether to grant additional pension to an active member or within 6 months of ceasing to be an active member by reason of redundancy or business efficiency (by up to £6,500p.a.) | R31 | No intention to use this power |
| 18. | Whether to use a certificate produced by an IRMP under the 2008 Scheme for the purposes of making an ill health determination under the 2014 scheme | TP12(6) | No intention to use this power |
| 19. | Determine whether person in receipt of tier 3 ill health pension has started gainful employment | R37(3) & (4) | No intention to use this power |
| 20. | Whether to recover any overpaid tier 3 pension following commencement of gainful employment | R37(3) | No intention to use this power |
| 21. | Decide whether deferred beneficiary meets criteria of being permanently incapable of former job because of ill health and is unlikely to be capable of undertaking gainful employment before normal pension age or for at least three years, whichever is the sooner | R38(3) | No intention to use this power |
| 22. | Decide whether a suspended ill health tier 3 member is unlikely to be capable of undertaking gainful employment before normal pension age because of ill health | R38(6) | No intention to use this power |
| 23. | Whether to apply to Secretary of State for a forfeiture certificate (where member is convicted of a relevant offence) | R91(1) & (8) | Where appropriate, a certificate will be applied for |
| 24. | Where forfeiture certificate is issued, whether to direct that benefits are to be forfeited (other than rights to GMP – but see R95 below) | R91(4) | If such a certificate is issued by the Secretary of State, it will be applied against the member’s pension rights i.e. the rights should be forfeited |
| 25. | Where forfeiture certificate is issued, whether to direct interim payments out of Pension Fund until decision is taken to either apply the certificate or to pay benefits | R92(1) & (2) | No interim payments to be made until certificate is applied or benefits are paid |
| 26. | Whether to recover from Fund any monetary obligation or, if less, the value of the member’s benefits (other than benefits from transferred in pension rights or APCs or AVCs or, subject to R95 below, in respect of any GMP) where the obligation was incurred as a result of a grave misconduct or a criminal, negligent or fraudulent act or omission in connection with the employment and as a result of which the person has left employment | R93(2) | The IDB will make the appropriate recovery and reduce the members pension rights accordingly where the member has not made good the debt |
| 27. | Whether, if the member has committed treason or been imprisoned for at least 10 years for one or more serious offences under the Officials Secrets Acts, forfeiture under R91 or recovery of a monetary obligation under R93 should deprive the member or the member’s surviving spouse or civil partner of any GMP entitlement | R95 | No intention to use this power |
| 28. | Agree to bulk transfer payment | R98(1)(b) | No bulk transfer payments |
| 29. | Extend normal time limit for acceptance of a transfer value beyond 12 months from joining the LGPS | R100(68) | No extension |
| 30. | Whether to allow a member to select final pay period for fees to be any 3 consecutive years ending 31st March in the 10 years prior to leaving | TP3(6), TP4(6)(c), TP8(4), TP10(2)(a), TP17(2)(b) & B11(2) | No intention to use this power |
Discretions in relation to scheme members (excluding councillor members) who ceased active membership on or after 1.4.08 and before 1.4.14, being discretions under:
– Local Government Pension Scheme (Administration) Regulations 2008
[prefix A]
– the Local Government Pension Scheme (Benefits, Membership and
Contributions) Regulations 2007 (as amended) [prefix B]
– the Local Government Pension Scheme (Transitional Provisions)
– Regulations 2008 [prefix T]
– the Local Government Pension Scheme (Transitional Provisions and
Savings) Regulations 2014 [prefix TP]
– the Local Government Pension Scheme Regulations 2013 [prefix R]
– the Local Government Pension Scheme Regulations 1997 (as
amended) [prefix L]
| No. | Discretion | Regulation | Employer Policy |
|---|---|---|---|
| 1. | Whether, for a member leaving on the grounds or redundancy or business efficiency on or before 31st March 2014, to augment membership (by up to 10 years). The resolution to do so would have to be made within 6 months of the date of leaving. Hence this discretion is spent entirely after 30th September 2014 | B12 | No intention to use this power |
| 2. | Allow late application to convert scheme AVCs into membership credit i.e. allow application more than 30 days after cessation of active membership | TSch1 & L66(8) & former L66(9)(b) | No AVC arrangements to be introduced at this time |
| 3. | No right to return of contributions due to offence of a fraudulent character or grave misconduct unless employer directs a total or partial refund is to be made | A47(2) | A refund of contributions will be directed less any debt owed to the IDB by the member |
| 4. | Contribution Equivalent Premium (CEP) in excess of the Certified Amount (CA) recovered from a refund of contributions can be recovered from the Pension Fund | A49(1) & (2) | No intention to use this power |
| 5. | Whether to apply to Secretary of State for a forfeiture certificate (where member is convicted of a relevant offence) | A72(1) & (6) | Where appropriate, a certificate will be applied for |
| 6. | Where forfeiture certificate is issued, whether to direct that benefits are to be forfeited | A72(3) | If such a certificate is issued by the Secretary of State, it will be applied against the member’s pension rights i.e. the rights should be forfeited |
| 7. | Where forfeiture certificate is issued, whether to direct interim payments out of Pension Fund until decision is taken to either apply the certificate or to pay benefits | A73(1) & (2) | No interim payments to be made until certificate is applied or benefits are paid |
| 8. | Whether to recover from Fund any monetary obligation or, if less, the value of the member’s benefits (other than transferred in pension rights or AVCs/SCAVCs) where the obligation was incurred as a result of a criminal, negligent or fraudulent act or omission in connection with the employment and as a result of which the person has left employment | A74(2) | The IDB will make the appropriate recovery and reduce the members pension rights accordingly where the member has not made good the debt |
| 9. | Whether to recover from Fund any financial loss caused by fraudulent offence or grave misconduct of employee (who has left because of that), or amount of refund if less | A76(2) & (3) | No intention to use this power |
| 10. | Whether to allow a member to select final pay period for fees to be any 3 consecutive years ending 31st March in the 10 years prior to leaving | B11(2) | No intention to use this power |
| 11. | Whether to grant application for early payment of deferred benefits on or after age 55 and before age 60 | B30(2) | No intention to use this power |
| 12. | Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early under B30 | B30(5) | No intention to use this power |
| 13. | Whether to grant an application for early payment of a suspended tier 3 ill health pension on or after age 55 and before age 60 | B30A(3) | No intention to use this power |
| 14. | Whether to waive, on compassionate grounds, the actuarial reduction applied to benefits paid early under B30A | B30A(5) | No intention to use this power |
| 15. | Decide whether deferred beneficiary meets permanent ill health and reduced likelihood of gainful employment criteria | B31(4) | No intention to use this power |
| 16. | Decide whether a suspended ill health tier 3 membership is permanently incapable of undertaking any gainful employment | B31(7) | No intention to use this power |
Discretions under the Local Government Pension Scheme Regulations 1995 (as amended) in relation to scheme members who ceased active membership before 1.4.98.
| No. | Discretion | Regulation | Employer Policy |
|---|---|---|---|
| 1. | Grant application from a pre 1.4.98 leaver for early payment of deferred benefits on or after age 50 on compassionate grounds (see Note below) | D11(2)(c) | No intention to use this power |
| 2. | Decide, in the absence from a pre 1.4.98 leaver of an election from the member within 3 months of being able to elect, which benefit is to be paid where the member would be entitled to a pension or retirement grant under 2 or more regulations in respect of the same period of Scheme membership | D10 | No intention to use this power |
Note: benefits paid on or after age 50 and before age 55 are subject to an unauthorised payments charge and where applicable, an unauthorised payments surcharge under the Finance Act 2006. However, as the benefits had accrued prior to 6th April 2006, they would not generate a scheme sanction charge.
Discretions under the Local Government (Discretionary Payments) Regulations 1996 (as amended)
The following discretions under the Discretionary Payment Regulations:
a) which relate to injury allowances, apply only in respect of leavers, deaths and reductions in pay that occurred before 16th January 2012; and
b) which relate to gratuities, apply only in respect of leavers and deaths that occurred before 16th January 2012.
| No. | Discretion | Regulation | Employer Policy |
|---|---|---|---|
| 1. | Amount of injury allowance following loss of employment through permanent incapacity after sustaining an injury or contracting a disease as a result of anything required to do in carrying out duties of job | 34(2) & 38 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 2. | Suspend or discontinue injury allowance if person becomes capable of working again | 34(4) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 3. | Amount of injury allowance following reduction in pay after sustaining an injury or contracting a disease as a result of anything required to do in carrying out duties of job | 35(3) & 38 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 4. | Amount and duration of injury allowance following cessation of employment where reg 35 payment was being made but reg 34 does not apply | 36 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 5. | Amount and duration of a dependant’s, spouse’s or civil partner’s injury allowance following death of employee after sustaining an injury or contracting a disease as a result of anything required to do in carrying out duties of job | 37(3), 37(6) & 38 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 6. | Reinstate spouse’s or civil partner’s injury allowance following earlier cessation due to cohabitation, remarriage or registration of a new civil partnership | 37(4) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 7. | Amount of death in service gratuity payable to surviving dependant, spouse or civil partner | 40 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 8. | Amount of retirement gratuity payable | 41 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 9. | Amount of gratuity payable to surviving dependant, spouse or civil partner where amount of annuity payments fall short of their capital value at date of award | 41(4) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 10. | Amount of redundancy gratuity payable | 42 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 11. | Amount of gratuity payable to surviving dependant, spouse or civil partner where amount of redundancy annuity payments fall short of their capital value at date of award | 42(4) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 12. | Amount of gratuity payable to any other surviving dependant, spouse or civil partner where amount of annuity payments paid under 42(4) fall short of their capital value at date of award | 42(7) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 13. | Formulate and keep under review the injury allowance and gratuity policies to be operated by the authority | 46A | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
This policy will be kept under regular review, by August 2017 if there are no material changes required before then.
I warrant that all the above policies reflect the policy intention of Waterbeach Level Internal Drainage Board as at the Board Meeting on 7th November, 2014.
Signed:
Name: Mr Brian Harold Sanders
Position: Chairman
Date:
Signed:
Name: Andrew Newton
Position: Engineer
Date: