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 01.04.19, it’s one staff member has 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. 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 these discretions have recently been amended, it is necessary to review the 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 in relation to active scheme members and members who cease active membership after 31st March, 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 £6,822 (figure at 1st April 2018) 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 £6,822 (figure at 1st April 2018) 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 active member who has attained the age of 55 or over who reduces working hours or grade of an employment, may with the Scheme employer’s consent, elect to receive immediate payment of all or part of the retirement pension to which that member would be entitled in respect of that employment if that member were not an employee in local government service on the date of the reduction in hours or grade, adjusted by the amounts shown as appropriate in actuarial guidance issued by the Secretary of State.
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 satisfies the 85 year rule, that part of the member’s retirement benefits which is calculated by reference to any period of membership before the relevant date shall not be reduced in accordance with regulations 30(4) of 30A(4) of the Benefits Regulations or regulation 30(5) or (6) of the 2013 Regulations; and
b) if the member does not satisfy the 85 year rule, that part of the member’s retirement benefits which is calculated by reference to any period of membership before the relevant date is reduced by reference to the period between the date of the request and the date the member would satisfy the 85 year rule, of age 65 if earlier.
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. WAIVE REDUCTION
An employer may resolve to waive any actuarial reduction for a member voluntarily drawing benefits before normal pension age other than on the grounds of flexible retirement (where the member has both pre 1/4/14 and post 31/3/14 membership on:-
a) compassionate grounds (pre 1/4/14 membership) and in whole or in part on any grounds (post 31/3/14 membership) if the member was not in the Scheme before 1/10/06.
b) compassionate grounds (pre 1/4/14 membership) and in whole or in part on any grounds (post 31/3/14 membership) if the member was in the Scheme before 1/10/06, will not be 60 by 31.3.16 and will not attain 60 between 1/4/16 and 31/3/20.
c) compassionate grounds (pre 1/4/16 membership) and in whole or in part on any grounds (post 31/3/16 membership) if the member was in the Scheme before 1/10/06 and will be 60 by 31/3/16.
d) compassionate grounds (pre 1/4/20 membership) and in whole or in part on any grounds (post 31/3/20 membership) if the member was in the Scheme before 1/10/06, will not be 60 by 31/3/16 and will attain 60 between 1/4/16 and 31/3/20.
In addition, an employer may also resolve to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age other than on the grounds of flexible retirement (where the member only has post 31/3/14 membership).
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. 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.
7. 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.
8. 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.
9. 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.
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]
– the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 (as amended) [prefix B]
– the Local Government Pension Scheme Regulations 1997 (as amended) [prefix L]
| No. | Discretion | Regulation | Employer Policy | |
|---|---|---|---|---|
| Shared cost AVCs | 1. | Whether, how much, and in what circumstances to contribute to shared cost AVC arrangements | R17(1) & definition of SCAVC in RSch1 | No AVC arrangements to be introduced at this time |
| Transferring in non LGPS pension rights | 2. | Extend normal time limit for acceptance of a transfer value beyond 12 months from joining the LGPS | R100(6) | No extension unless scheme member has requested investigations to commence within the 12 month time period |
| Joining LGPS membership | 3. | Whether to extend the 12 month option period for a member to elect that post 31 March 2014 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 |
| 4. | Whether to extend the 12 month option period for a member to elect that post 31 March 2014 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 | |
| Employee contribution rate | 5. | How the pension 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 (1 April to 31 March) | R9(1) & R9(3) | Rate to be determined on 1st April each year with no adjustments during the year |
| Regular lump sum payments | 6. | 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 Assuming Pensionable Pay |
| Pensionable pay | 7. | Where in the employer’s opinion, the pensionable pay received in relation to an employment (adjusted to reflect any lump sum payments) in the 3 months (or 12 weeks if not paid monthly) preceding the commencement of Assumed Pensionable Pay (APP), is materially lower than the level of pensionable pay the member would have normally received, decide whether to substitute a higher level of pensionable pay having had regard to the level of pensionable pay received by the member in the previous 12 months | R21(5A) & R21(5B) | No intention to use this power |
| Deferred benefits | 8. | Whether to extend the 12 month option period for a member (who did not become a member of the 2014 Scheme by virtue of TP5(1)) to elect that pre 1 April 2014 deferred benefits should be aggregated with a new employment | TP10(6) | No extensions |
| Granting additional pension | 9. | 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 £6,822 p.a – figure at 1 April 2018) | R31 | No intention to use this power |
| Shared cost APCs | 10. | Whether, where an active Scheme member wishes to purchase extra annual pension of up to £6,822 (figure at 1 April 2018) 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) | R16(2)(e) R16(4)(d) | No APC scheme is to be introduced at this time |
| 11. | Whether to extend 30 day deadline for member to elect for a shared cost APC upon return from a period of absence from work with permission with no pensionable pay (otherwise than because of illness or injury, relevant child-related leave or reserve forces service leave) | R16(16) | No extensions. | |
| Flexible retirement | 12. | Whether all or some benefits can be paid if an active member aged 55 or over and with at least 2 years qualifying service 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 |
| Whether to waive, in whole or in part, actuarial reduction to benefits paid on flexible retirement | R30(8) | No waivers | ||
| 13. | Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age other than on the grounds of flexible retirement (where the member only has post 31 March 2014 membership) | R30(8) | No waivers | |
| 85 Year Rule | 14. | Whether to “switch on” the 85 year rule for a member voluntarily drawing benefits on or after age 55 and before age 60 (other than on the grounds of flexible retirement) | TPSch2 para 1(2) & 1(1)(c) | No intention to use this power |
| Waive Reduction | 15. | Whether to waive any actuarial reduction for a member voluntarily drawing benefits before normal pension age other than on the grounds of flexible retirement (where the member has both pre 1/4/14 and post 31/3/14 membership) on a) compassionate grounds (pre 1/4/14 membership) and in whole or in part on any grounds (post 31/3/14 membership) if the member was not in the Scheme before 1/10/06. b) compassionate grounds (pre 1/4/14 membership) and in whole or in part on any grounds (post 31/3/14 membership) if the member was in the Scheme before 1/10/06, will not be 60 by 31/3/16 and will not attain 60 between 1/4/16 and 31/3/20 c) compassionate grounds (pre 1/4/16 membership) and in whole or in part on any grounds (post 31/3/16 membership) if the member was in the Scheme before 1/10/06 and will be 60 by 31/3/16 d) compassionate grounds (pre 1/4/20 membership) and in whole or in part on any grounds (post 31/3/20 membership) if the member was in the Scheme before 1/10/06, will not be 60 by 31/3/16 and will attain 60 between 1/4/16 and 31/3/20 | TP3(1), TPSch2 para (2)(1), B30(5) & B30A(5) | No waivers |
| 16. | Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age other than on the grounds of flexible retirement (where the member only has post 31/3/14 membership) | R30(8) | No waivers | |
| Extend deadline - APC | 17. | Whether to extend 30 day deadline for member to elect for a shared cost APC upon return from a period of absence from work with permission with no pensionable pay (otherwise than because of illness or injury, relevant child-related leave or reserve forces service leave) | R16(16) | No extensions |
| Variable employer contributions - APC | 18. | Whether, how much, and in what circumstances to contribute to a shared cost APC scheme | R16(2)(e) & R16(4)(d) | No APC arrangements to be introduced at this time |
| 19. | 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 | |
| 20. | No right to return of contributions where a member left their employment due to offence of a fraudulent character or grave misconduct in connection with that employment, 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 | |
| 21. | 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 | |
| 22. | 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 | |
| 23. | Determine whether person in receipt of Tier 3 ill health pension has started gainful employment | R37(3) & (4) | No intention to use this power | |
| 24. | Whether to recover any overpaid Tier 3 pension following commencement of gainful employment | R37(3) | No intention to use this power | |
| 25. | 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 | |
| 26. | 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 | |
| 27. | Whether to extend six month period to lodge a stage one IDRP appeal | R74(4) | No intention to use this power | |
| 28. | Decide procedure to be followed by adjudicator when exercising stage one IDRP functions and decide the manner in which those functions are to be exercised | R74(6) | No intention to use this power | |
| 29. | Whether to apply to Secretary of State for a forfeiture certificate where member is convicted of a relevant offence (a relevant offence is an offence committed in connection with an employment in which the person convicted is a member, and because of which the member left the employment) | R91(1) & (8) | Where appropriate, a certificate will be applied for | |
| 30. | 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 | |
| 31. | 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 | |
| 32. | 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` | |
| 33. | Whether, if the member has committed treason or been imprisoned for at least 10 years for one or more offences under the Official Secrets Act, 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 | |
| 34. | Agree to bulk transfer payment | R98(1)(b) | No bulk transfer payments | |
| 35. | 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 | |
| 36. | Which employees to designate for membership of the LGPS | R3(1)(b) & R Sch2 Part 2 | All employees |
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 1997 (as amended) [prefix L]
| No. | Discretion | Regulation | Employer Policy | |
|---|---|---|---|---|
| Waive reduction | 37. | Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early under B30 and B30(A) | B30(A)(5) & TPSch2, para 2(1) | No intention to use this power |
| 85 year rule | 38. | Whether to switch on the 85 year rule for a pensioner member with deferred benefits voluntarily drawing benefits on or after age 55 and before age 60 | TPSch2, para 1(2) & 1(1)(c) | No intention to use this power |
| 39. | Whether to extend the 12 month option period for aggregation of deferred benefits | A16(4)(b)(ii) | No intention to use this power | |
| 40. | Whether to extend the normal time limit for acceptance of a transfer value beyond 12 months from joining the LGPS | A83(8) | No intention to use this power | |
| 41. | 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 intention to use this power | |
| 42. | Whether to allow a late application by member to pay optional contributions for a period of unpaid child related leave, strike, or unpaid leave of absence beyond 30 days | A22(2) | No intention to use this power | |
| 43. | No right to return of contributions where member left their employment due to offence of a fraudulent character or grave misconduct in connection with that employment, 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 | |
| 44. | 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 | |
| 45. | Whether to extend six month period to lodge a stage one IDRP appeal | A58(7)(b) | No extensions | |
| 46. | Whether to apply to Secretary of State for a forfeiture certificate where member is convicted of a relevant offence (a relevant offence is an offence committed in connection with an employment in which the person convicted is a member, and because of which the member has left the employment) | A72(1) & (6) | Where appropriate, a certificate will be applied for | |
| 47. | 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 | |
| 48. | 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 | |
| 49. | Whether to recover from Fund any monetary obligation or, if less, the value of the member’s benefits (other than transferred in pension rights of 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 | |
| 50. | Whether to recover from Fund any financial loss caused by fraudulent offence or grave misconduct of employee (who has left employment because of that fraudulent offence or grave misconduct), or amount of refund if less | A76(2) & (3) | No intention to use this power | |
| 51. | Decide whether deferred beneficiary meets permanent ill health and reduced likelihood of gainful employment criteria | B31(4) | No intention to use this power | |
| 52. | Decide whether a suspended ill health Tier 3 member is permanently incapable of undertaking any gainful employment | B31(7) | No intention to use this power |
Discretions under the Local Government Pension Scheme Regulations 1997 (as amended) in relation to scheme members who ceased active membership on or after 1.4.98 and before 1.4.08.
| No. | Discrection | Regulation | Employer Policy | |
|---|---|---|---|---|
| Employer consent retirement | 53. | Grant an application for early payment of deferred benefits on or after age 50 and before age 55 | 31(2) | No intention to use this power |
| 85 Year rule | 54. | Whether to switch on the 85 year rule for a member with deferred benefits voluntarily drawing benefits on or after age 55 and before age 60 | TPSch2, para 1(2) & 1(1)(f) & R60 | No intention to use this power |
| Waive reduction | 55. | Waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early | 31(5) | No intention to use this power |
| 56. | Issue a certificate of protection of pension benefits where member fails to apply for one (pay cuts/restrictions occurring pre 1.4.08) | 23(4) | Where appropriate, a certificate will be issued | |
| 57. | Decide, in the absence 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 | 34(1)(b) | No intention to use this power | |
| 58. | Consent to a member’s former employer assigning to the new employer rights under any SCAVC life assurance policy | 71(7)(a) | No intention to use this power | |
| 59. | No right to return of contributions where member left their employment due to offence of a fraudulent character or grave misconduct in connection with that employment unless employer directs a total or partial refund is to be made | 88(2) | A refund of contributions will be directed less any debt owed to the IDB by the member | |
| 60. | Contribution Equivalent Premium (CEP) in excess of the Certified Amount (CA) recovered from a refund of contributions can be recovered from the Pension Fund (pre 1.4.08 leavers) | 92 | No intention to use this power | |
| 61. | Forfeiture of pension rights on issue of Secretary of State’s certificate following a relevant offence (a relevant offence is an offence committed in connection with an employment in which the person convicted is a member, and because of which the member left the employment) | 111(2) & (5) | 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 | |
| 62. | Where forfeiture certificate is issued, direct interim payments out of Pension Fund until decision is taken to either apply the certificate or to pay benefits | 112(1) | No interim payments to be made until certificate is applied or benefits are paid | |
| 63. | Recovery from Fund of monetary obligation owed by former employee or, if less, the value of the member’s benefits (other than transferred in pension rights) | 113(2) | The IDB will make the appropriate recovery and reduce the member’s pension rights accordingly when the member has not made good the debt | |
| 64. | Recovery from Fund of financial loss caused by employee, or amount of refund if less | 115(2) & (3) | 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 | |
|---|---|---|---|---|
| Employer consent retirement | 65. | Grant an application for early payment of deferred benefits on or after age 50 on compassionate grounds. Note: although the common provisions of the 1997 Transitional provisions regulations do not specify regulation D11(2)(c), their intention was that it should apply to this regulation | D11(2)(c) | No intention to use this power |
| 66. | Decide, in the absence 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 (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 (as amended)
Under Regulation 7 of the Discretionary Compensation Regulations, each authority (other than an Admitted Body) is required to formulate and keep under review a policy which applies in respect of exercising their discretion in relation to:
| No. | Discretion | Regulation | Employer Policy | |
|---|---|---|---|---|
| Redundancy Pay on actual weeks | 67. | To base redundancy payments on an actual weeks pay where this exceeds the statutory weeks pay limit | 5 | No intention to use this policy |
| Lump sum compensation | 68. | To award lump sum compensation of up to 104 weeks pay in cases of redundancy, termination of employment on efficiency grounds, or cessation of a joint appointment | 6 | No intention to use this power |
Discretions under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000 (as amended)
These Regulations still apply to any Compensatory Added Years previously awarded by a Scheme Employer before 1 April 2007. Scheme employers (other than admission bodies) who made awards of Compensatory Added Years are required to have a policy on the following:
| No. | Discretion | Regulation | Employer Policy | |
|---|---|---|---|---|
| Abatement during re-employment | 69. | Whether and to what extent to reduce or suspend the member’s annual compensatory added years payment during any period of re-employment in local government | 17 | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| Reduction following cessation of re-employment | 70. | How to reduce the member’s annual compensatory added years payment following the cessation of a period of re-employment in local government | 19 | |
| Apportionment of survivor benefit | 71. | How to apportion any surviving spouse’s or civil partner’s annual compensatory added years payment where the deceased person is survived by more than one spouse or civil partner | 21(4) | |
| Effects of remarriage, new civil partnership or co-habitation on survivor's compensatory payments | 72. | Whether, in respect of the spouse of a person who ceased employment before 1 April 1998 and where the spouse or civil partner remarries, enters into a new civil partnership or cohabits after 1 April 1998, the normal pension suspension rules should be disapplied i.e. whether the spouse’s or civil partner’s annual compensatory added years payments should continue to be paid | 21(7) | |
| 73. | If, under preceding decision, the authority’s policy is to apply the normal suspension rules, whether the spouse’s or civil partner’s annual compensatory added years payment should be reinstated after the end of the remarriage, new civil partnership or cohabitation | 21(5) | ||
| 74. | How it will decide to whom any children’s annual compensatory added years payments are to be paid where children’s pensions are not payable under the LGPS (because the employee had not joined the LGPS) and, in such a case, how the annual added years will be apportioned amongst the eligible children | 25(2) | ||
| 75. | Whether, in respect of the spouse or civil partner of a person who ceased employment before 1 April 1998 and where the spouse or civil partner remarries or cohabits or enters into a civil partnership on or after 1 April 1998 with another person who is also entitled to a spouse’s or civil partner’s annual CAY payment, the normal rule requiring one of them to forego payment whilst the period of marriage, civil partnership or co-habitation lasts, should be disapplied i.e. whether the spouse’s or civil partner’s annual CAY payments should continue to be paid to both of them | 21(7) |
Discretions under the Local Government (Discretionary Payments) (Injury Allowances) Regulations 2011
Scheme employers (other than admission bodies) must have a policy on:
| No. | Discretion | Regulation | Employer Policy | |
|---|---|---|---|---|
| Injury Allowances | 76. | Whether to grant an injury allowance following reduction in remuneration as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job | 3(1) | Extremely rare so low risk and no policy. If this occurs then there will be full consideration and review at the appropriate time |
| 77. | Amount of injury allowance following reduction in remuneration as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job | 3(4) & 8 | ||
| 78. | Determine whether person continues to be entitled to an injury allowance awarded under regulation 3(1) (reduction in remuneration as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job) | 3(2) | ||
| 79. | Whether to grant an injury allowance following cessation of employment as a result of permanent incapacity caused by sustaining an injury or contracting a disease in the course of carrying out duties of the job | 4(1) | ||
| 80. | Amount of injury allowance following cessation of employment as a result of permanent incapacity caused by sustaining an injury or contracting a disease in the course of carrying out duties of the job | 4(3) & 8 | ||
| 81. | Determine whether person continues to be entitled to an injury allowance awarded under regulation 4(1) (loss of employment through permanent incapacity) | 4(2) | ||
| 82. | Whether to suspend or discontinue injury allowance awarded under regulation 4(1) (loss of employment through permanent incapacity) if person secures paid employment for not less than 30 hours per week for a period of not less than 12 months | 4(5) | ||
| 83. | Whether to grant an injury allowance following cessation of employment with entitlement to immediate LGPS pension where a regulation 3 payment (reduction in remuneration as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job) was being made at date of cessation of employment but regulation 4 (loss of employment through permanent incapacity) does not apply | 6(1) | ||
| 84. | Determine amount of any injury allowance to be paid under regulation 6(1) (payment of injury allowance following the cessation of employment) | 6(1) | ||
| 85. | Determine whether and when to cease payment of an injury allowance payable under regulation 6(1) (payment of injury allowance following the cessation of employment) | 6(2) | ||
| 86. | Whether to grant an injury allowance to the spouse, civil partner, co-habiting partner or dependent of an employee who dies as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job The requirement to nominate a cohabiting partner has ceased entirely under these regulations due to the outcome of Elmes v Essex CC high court judgement | 7(1) | ||
| 87. | Determine amount of any injury allowance to be paid to the spouse, civil partner, nominated co-habiting partner (for awards made on or after 1 April 2008 the requirement to nominate a cohabiting partner has ceased due to the outcome of Elmes v Essex CC high court judgement) or dependent under regulation 7(1) (employee who dies as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job) | 7(2) & 8 | ||
| 88. | Determine whether and when to cease payment of an injury allowance payable under regulation 7(1) (employee who dies as a result of sustaining an injury or contracting a disease in the course of carrying out duties of the job) | 7(3) |
This policy will be kept under regular review, by May 2022 if there are no material changes required before then.
I warrant that all the above policies reflect the policy intention of Waterbeach Level Drainage Board as at the Board Meeting on 13th May, 2019.
Signed:
Name: Mr Brian Harold Sanders
Position: Chairman
Date:
Signed:
Name: Andrew Newton
Position: Engineer
Date: