STATEMENT OF POLICY ON:-
The Local Government Pension Scheme 2014
Discretions
by
Policy effective from
V.2019/04
Shaftesbury Town Council
Statement of Policy on :-
The Local Government Pension Scheme Regulations 2013 [R]
The Local Government Pension Scheme (Transitional Provisions and Savings) Regulations 2014 [TP]
The Local Government Pension Scheme (Administration) Regulations 2008 [A]
The Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007
(as amended) [B]
The Local Government Pension Scheme (Transitional Provisions) Regulations 2008 [T]
The Local Government Pension Scheme Regulations 1997 (as amended) [L]
The Local Government Pension Scheme (Miscellaneous Regulations) 2012 [E]
The Local Government Pension Scheme Regulation 1995 [C]
has resolved that the following Discretions available in the Statutory Instrument, should be implemented in
compliance with the Local Government Pension Scheme Regulations as set out below:-
The Employing Body which is
PART A - where formulation of policy is compulsory
Regulations 16(2)(e) and 16(4)(d) of the LGPS
Regulations 2013
Power of employing authority to contribute to a
shared cost APC scheme
Whether, where an active 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)
Sch 2, para 1 (1) (c) [TP]
Power of employing authority to apply 85 Year
Rule
(always excludes flexible retirement) upon
the voluntary early payment of deferred
benefits
Whether to "switch on" the 85 Year Rule for a
member voluntarily drawing benefits on or
after age 55 and before age 60.
Whether to waive, on compassionate grounds,
the actuarial reduction applied to benefits
where the employer has "switched on" the 85
Year Rule for a member voluntarily drawing
benefits on or after age 55 and before age 60.
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Contributing to a shared cost Additional Pension Cost scheme may
be considered in exceptional circumstances.
The general policy of Shaftesbury Town Council is not to switch on'
the 85 year rule for a member drawing benefits on or after age 55
and before age 60, but each case will be considered on its own
merits.
The general policy of Shaftesbury Town Council is not to waive, on
compassionate grounds, the actuarial reduction applied to benefits
where the employer has 'switched on' the 85 year rule for a member
voluntarily drawing benefits on or after age 55 and before age 60.
Regulation 30 (6) [R]
Flexible retirement
Whether all or some benefits can be
paid if an employee aged 55 or over reduces
their hours or grade (flexible retirement)
whether, in addition to the benefits the member
has accrued prior to 1 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 31 March 2008 and before 1 April
2014, and / or
all, part or none of the pension benefits they
accrued after 31 March 2014
Whether to waive, in whole or in part, actuarial
reduction on benefits paid on flexible
retirement.
Regulation 30 (8) [R]
Power of employing authority to waive
actuarial reduction
Whether to waive, in whole or in part, actuarial
reduction on benefits which a member
voluntarily draws before normal pension age.
Regulation 31 [R]
Power of employing authority to grant
additional pension
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
maximum amount).
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Shaftesbury Town Council does not provide blanket consent for staff
to flexibly retire and draw immediate payment of any pension
benefits. Each flexible retirement request will be considered on its
merits and will only be agreed if it is in the Council's interests to do
so.
Waiving of actuarial reduction paid on benefits which a member
voluntarily draws before normal pension age will only be allowed in
exceptional circumstances
The general policy of Shaftesbury Town Council is not 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.
Reg 30 (5) [A] & para 2(1) [TP]
Power of employing authority to waive upon
the voluntary early payment of deferred
benefits, any actuarial reduction on
compassionate grounds
For members (excluding councillor members)
who ceased active membership between 1
April 2008 and 31 March 2014
Sch 2, para 1 (1) (c) [TP]
Power of employing authority to
`switch on' the
85 year rule upon the voluntary early payment
of deferred benefits
Whether, as the 85 year rule does not
automatically fully apply to members who
would otherwise be subject to it and who
choose to voluntarily draw their deferred
benefits (on or after 14 May 2018) on or after
age 55 and before age 60, to switch the 85
year rule back on in full for such members
For members (excluding councillor members)
who ceased active membership between 1
April 2008 and 31 March 2014
Regulation
Sch 2, para 1 (1) (c) [TP]
Power of employing authority to
`switch on' the
85 year rule upon the voluntary early payment
of a suspended tier 3 ill health pension
Whether, as the 85 year rule does not
automatically fully apply to members who would
otherwise be subject to it and who choose to
voluntarily draw their suspended tier 3 ill health
pension (on or after 14 May 2018) on or after
age 55 and before age 60, to switch the 85
year rule back on in full for such members
For members (excluding councillor members)
who ceased active membership between 1
April 2008 and 31 March 2014
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The general policy of Shaftesbury Town Council is not to waive, on
compassionate grounds, the actuarial reduction applied to benefits
paid early for members who ceased active membership between 1
April 2008 and 31 March 2014 but each case will be considered on its
own merit in exceptional circumstances.
Shaftesbury Town Council will not normally exercise this discretion.
This does not however preclude the council from exercising this
discretion in exceptional circumstances should it chose to do so,
following receipt of information in respect of the financial
implications to the council.
The general policy of Shaftesbury Town Council is not to 'switch on'
the 85 year rule upon the voluntary early payment of a suspended
tier 3 ill health pension, but each case will be considered on its own
merit in exceptional circumstances.
Sch 2, para 1 (1) (f) & 1 (2) [TP]
Power of employing authority to
to `switch on'
the 85 year rule upon the voluntary early
payment of deferred benefits?
For
active and deferred councillor members
and any other members who ceased active
membership between 1 April 1998 and 31
March 2008
Reg 30A (5) [A] & para 2(1) [TP]
Power of employing authority to waive upon
the voluntary early payment of a suspended
tier 3 ill health pension, any actuarial reduction
on compassionate grounds
For members (excluding councillor members)
who ceased active membership between 1
April 2008 and 31 March 2014
Reg 31(2) [L]
Power of employing authority to
grant early
payment of benefits on or after age 50 and
prior to age 55
For
active and deferred councillor members
and any other members who ceased active
membership between 1 April 1998 and 31
March 2008
Reg 31(5) [L] & sch 2, para 2(1) [TP]
Power of employing authority to
waive upon
the payment of benefits, any actuarial
reduction on compassionate grounds
For
active and deferred councillor members
and any other members who ceased active
membership between 1 April 1998 and 31
March 2008
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The general policy of Shaftesbury Town Council is not to 'switch on'
the 85 year rule upon th evoluntary early payment of deferred
benefits, but each case will be considered on its own merit in
exceptional circumstances.
The general policy of Shaftesbury Town Council is not to waive upon
the voluntary early payment of a suspended tier ill health pension,
any actuarial reduction on compassionate grounds, but each case will
be considered on its own merit in exceptional circumstances.
The general policy of Shaftesbury Town Council is not to grant early
payment of benefits on or after age 50 and prior to age 55
The general policy of Shaftesbury Town Council is not to waive upon
the payment of benefits, any actuarial reduction on compassionate
grounds, but each case will be considered on its own merit in
exceptional circumstances.
Reg D11 (2)(c) [C]
Power of employing authority to
grant early
payment of benefits on compassionate
grounds
Whether to grant applications for the early
payment of deferred pension benefits on or
after age 50 and before NRD on
compassionate grounds
For
members who ceased active membership
before 1 April 1998
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The general policy of Shaftesbury Town Council is not to grant early
payment of benefits on compassionate grounds, but each case will
be considered on its own merit in exceptional circumstances.
Regulation 9 & 10 [R]
Contributions payable by active members
How the pensions 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 Scheme 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
PART B - where formulation of a written policy is
not
compulsory
Regulation 22 (7) (b) and (8) & 10(6) [TP]
Facility to extend time limits for active
members to not aggregate deferred periods of
LGPS membership
Whether to extend the 12 month option period
for a member to elect that deferred benefits
should not be aggregated with a new
employment or ongoing concurrent
employment.
Regulation 100 (6) [R]
Facility to extend time limits for active
members to request a transfer of previous
pension rights into the LGPS
Where an active member requests to transfer
previous pension rights into the LGPS, the
member must make a request within 12
months of becoming an active member.
Employers, with agreement of Administering
Authority, may allow a longer period than 12
months.
JOINT DISCRETION WITH ADMINISTERING AUTHORITY
Regulation Policy Decision
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Shaftesbury Town Council will allocate employees to the appropriate
contribution band according to their salary on 1st April annually and
amend it throughout the year from the effective date of any changes
in employment or material change to the rate of pensionable pay
received.
Shaftesbury Town Council will consider requests from active
members to elect to aggregate a deferred member's pension
account to an active member's pension account beyond the 12
months deadline. Decisions will be based on the individual case and
will only be agreed where there is no financial impilcations to the
council.
Shaftesbury Town Council will only consider extending the time limit
of 12 months to allow employees to transfer the value of a previous
pension into the scheme if there is clear evidence that they had not
been informed of, or could not reasonably have known of, the time
limit. This is also subject to the agreement of the Pension
Administering Authority.
Reg 17 & 15(2A) [TP]
Power of employing authority to determine
whether to, how much and in what
circumstances to contribute to a shared-cost
Additional Voluntary Contribution (SCAVC)
arrangement
Reg 17 & 15(2A) [TP]
Power of employing authority to determine
whether to extend the time limit for a member
to elect to purchase additional pension by way
of a shared cost additional pension
contribution (SCAPC) upon return from a
period of absence
Whether to extend the 30 day deadline for
member to elect for a SCAPC 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)
Reg 21(4)(a)(iv), 21(4)(b)(iv) and 21(5) [R]
Power of employing authority to determine
whether to include a regular lump sum
payment when calculating assumed
pensionable pay (APP)
Reg 21(5A) and 21(5B) [R]
Power of employing authority to determine
whether, subject to qualification, to substitute
a higher level of pensionable pay when
calculating assumed pensionable pay (APP)
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Shaftesbury Town Council will not normally exercise this discretion.
This does not however preclude the council from exercising this
discretion in exceptional circumstances should it choose to do so
following receipt of information in respect of financial implications
to the council.
Shaftesbury Town Council will not normally extend the 30 day
deadline. This does not however preclude the council from doing so
in exceptional circumstances should it choose to do so, following
receipt of information in respect of the financial implications to the
council.
Shaftesbury Town Council will determine each case on its individual
merits should any such case arise.
Shaftesbury Town Council will determine each case on its individual
merits should any such case arise
Other non-compulsory discretions are available for
The
in exercising the discretionary powers available
under the above Regulations has acted with due prudence and propriety and considered the financial impact of
applying the discretions.
These policies may be subject to review from time to time. Any subsequent change in this Policy Statement will be
notified to affected employees.
Signed on behalf of:
Signature: Date:
Please PRINT name of person signing:
The LGPC Secretariat’s understanding of the discretions which exist within the LGPS regulatory framework and the
parties responsible for exercising those discretions can be found at the website below.
Also on this webpage is a discretions policies document, setting out in more detail the LGPC Secretariat's
understanding of the discretions that employers should have a policy on. This will be of use while compiling your
policy.
http://www.lgpsregs.org/resources/guidesetc.php
to consider, and cases where these may arise in the future will be considered on an individual basis; the merits of each
case being fully investigated.
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Shaftsbury Town Council
Shaftesbury Town Council
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