ARCH Initiatives discretionary policies under the Local Government Pension Scheme Regulations and other related Regulations Summary

Transcription

1 ARCH Initiatives discretinary plicies under the Lcal Gvernment Pensin Scheme Regulatins and ther related Regulatins Summary 1. This reprt makes recmmendatins fr ARCH Initiatives plicies n discretins t be exercised: i) under the LGPS Regulatins 2013 frm 1 April 2014 in respect f members f the Career Average Revalued Earnings (CARE) scheme, Backgrund 2. In March 2011, the Independent Public Service Pensins Cmmissin, chaired by Lrd Huttn, published its final reprt f the review f public service pensins. The reprt made clear that change was needed t make public service pensin schemes simpler and mre transparent, [and] fairer t thse n lw and mderate earnings. 3. As a result, it was decided that the Lcal Gvernment Pensin Scheme (LGPS) shuld be refrmed s that, frm 1 April 2014, benefits accrue n a Career Average Revalued Earnings (CARE) basis rather than n a final salary basis. 4. The prvisins f the CARE scheme, tgether with the prtectins fr members accrued pre 1 April 2014 final salary pensin rights, are cntained in the Lcal Gvernment Pensin Scheme Regulatins 2013 and the Lcal Gvernment Pensin Scheme (Transitinal Prvisins, Savings and Amendment) Regulatins As a result f the changes, ARCH Initiatives is legally required t frmulate, publish and send t the LGPS pensin fund administering authrity a written Statement f Plicy n certain discretins under the LGPS which ARCH Initiatives has the pwer t exercise n and frm 1 April 2014 in relatin t members f the CARE scheme. 6. ARCH Initiatives is als legally required t (r where there is n requirement, is recmmended t) frmulate, publish and keep under review a Statement f Plicy n certain ther discretins it may exercise: i) under earlier LGPS Regulatins in respect f frmer emplyees wh were members f the LGPS and wh left prir t 1 April 2014, and 7. Any amended plicy under paragraph 10(i) abve must be published and sent t the LGPS pensin fund administering authrity within ne mnth f the date the revisins t the plicy were made. Page 1 f 8

2 8. Overall, ARCH Initiatives is: i) required t frmulate, publish and keep under review a written Statement f Plicy n certain discretins in accrdance with: - regulatin 60 f the Lcal Gvernment Pensin Scheme Regulatins 2013, - paragraph 2(2) f Schedule 2 t the Lcal Gvernment Pensin Scheme (Transitinal Prvisins, Savings and Amendment) Regulatins 2014, 9. In frmulating and reviewing its plicies under the LGPS Regulatins referred t in paragraphs 14(i) and (ii) abve ARCH Initiatives is required t have regard t the extent t which the exercise f its discretinary pwers might lead t a serius lss f cnfidence in the public service. Decisins required 10. Martin Blakebrugh is asked: i) t apprve the plicies n the discretins t be exercised under the LGPS Regulatins in respect f thse emplyees wh are active scheme members after 31 March 2014 and members and wh cease active membership after 31 March 2014, as set ut in the table at Annex 1, and Cnsultatin ARCH Initiatives is nt required t cnsult with any unins as there are n frmal recgnitin agreements in place. Hwever, internal staff representatives wuld be cnsulted in the event f any planned changes. Effective date f plicies 11 The plicies n discretins t be exercised under the LGPS Regulatins 2013 take immediate effect frm the date ARCH Initiatives agrees the plicies. Any change t the plicies n existing discretins t be exercised under the LGPS Regulatins in respect f frmer emplyees wh were members f the scheme and wh left pre 1 April 2014 take immediate effect frm the date ARCH Initiatives agrees the plicies. Nn-fettering f discretins 11. The recmmendatins cntained within this reprt, if apprved, will frm ARCH Initiatives plicies n pensin and cmpensatin discretins. It shuld be nted that: Page 2 f 8

3 the plicies will cnfer n cntractual rights subject t paragraphs 20 t 22, ARCH Initiatives will retain the right t change the plicies at any time withut prir ntice r cnsultatin but ARCH Initiatives will endeavur t discuss changes with their internal staff representative grup, and nly the plicy which is current at the time a relevant event ccurs t an emplyee / scheme member will be the ne applied t that emplyee / member. Cntact Officer: Name: Andrew Llyd Tel: Date: 16 th March andrew.llyd@kaleidscpeprject.rg.uk Page 3 f 8

4 Annex 1 Table A: Discretins t be exercised n and after 1 April 2014 under the LGPS Regulatins 2013 in relatin t active scheme members (ther than lcal authrity cuncillr members) and members wh cease active membership after 31 March 2014 (ther than lcal authrity cuncillr members). ARCH Initiatives plicy 1. Whether, at full cst t ARCH Initiatives, t grant extra annual pensin f up t 6,822 (figure at 1 April ) t an active scheme member r, within 6 mnths f leaving, t a member wh is dismissed by reasn f redundancy r business efficiency r whse emplyment is terminated by mutual cnsent n the grunds f business efficiency. ARCH Initiatives will nt make use f the discretin t grant extra annual pensin f up t 6,822 (figure at 1 April 2015) t an active scheme member r, within 6 mnths f leaving, t a member wh is dismissed by reasn f redundancy r business efficiency r whse emplyment is terminated by mutual cnsent n the grunds f business efficiency. 2. Whether, where an active scheme member wishes t purchase extra annual pensin f up t 6,675 (figure at 1 April ) by making Additinal Pensin Cntributins (APCs), ARCH Initiatives will vluntarily cntribute twards the cst f purchasing that extra pensin via a Shared Cst Additinal Pensin Cntributin (SCAPC). ARCH Initiatives will nt make use f the discretin t vluntarily cntribute twards the cst f purchasing extra pensin via a Shared Cst Additinal Pensin Cntributin (SCAPC). Flexible retirement 1 The figure f 6,500 that applied at April 2014 is increased each April (starting April 2015) under the Pensin (Increase) Act 1971 (as if it were a pensin with a PI date f 1 April 2013). 2 The figure f 6,500 that applied at April 2014 is increased each April (starting April 2015) under the Pensin (Increase) Act 1971 (as if it were a pensin with a PI date f 1 April 2013). Page 4 f 8

5 3. Whether t permit flexible retirement fr staff aged 55 3 r ver wh, with the agreement f ARCH Initiatives, reduce their wrking hurs r grade and, if s, as part f the agreement: ARCH Initiative will nt agree t requests fr flexible retirement. - whether, in additin t the benefits the member has accrued prir t 1 April 2008 (which the member must draw if flexible retirement is agreed), t permit the member t chse t draw all, part r nne f the pensin benefits they accrued after 31 March 2008 and befre 1 April 2014, and / r all, part r nne f the pensin benefits they accrued after 31 March 2014, and - whether t waive, in whle r in part, any actuarial reductin which wuld therwise be applied t the benefits taken n flexible retirement befre Nrmal Pensin Age (NPA) Whether, as the 85 year rule des nt (ther than n flexible retirement see 3 abve) autmatically apply t members wh wuld therwise be subject t it and wh chse t vluntarily draw their benefits n r after age 55 and befre age 60, t apply the 85 year rule 6 t such vluntary retirements. ARCH Initiatives will nt agree t apply the 85 year rule where members chse t vluntarily draw their benefits n r after age 55 and befre age Age 50 fr thse LGPS members transferred frm the Learning and Skills Cuncil t whm regulatin 16A f the LGPS (Benefits, Membership and Cntributins) Regulatins 2007 applies. Such members nly need the emplyer s permissin t reduce their wrking hurs r grade but, if that permissin is given, d nt require their emplyer s permissin t draw their benefits (as such members have the autmatic right t take the benefits by virtue f regulatin 18A f the LGPS (Benefits, Membership and Cntributins) Regulatins 2007 and regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014). 4 NPA means the emplyee s individual State Pensin Age at the time the emplyment is terminated, but with a minimum f age 65 (althugh, the NPA fr membership accrued prir t 1 April 2014 is still linked t age 65, apart frm thse LGPS members transferred frm the Learning and Skills Cuncil t whm regulatin 16A f the LGPS (Benefits, Membership and Cntributins) Regulatins 2007 applies fr whm the NPA fr membership accrued prir t 1 April 2014 is, by virtue f that regulatin and regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014, still linked t age 60, and thse LGPS members wh are emplyees f the Meat Hygiene Service in the Lndn Pensin Fund Authrity fund wh are cvered by regulatin 144B f the LGPS Regulatins 1997 fr whm the NPA fr membership accrued prir t 1 April 2014 is, by virtue f that regulatin and regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014, still linked t age 60). State Pensin Age is currently age 65 fr men. State Pensin Age fr wmen is currently being increased t be equalised with that fr men and will reach 65 by Nvember The State Pensin Age will then increase t 66 fr bth men and wmen frm December 2018 t Octber Under current legislatin the State Pensin Age is due t rise t 67 between 2026 and 2028 and t 68 between 2044 and Hwever, the gvernment has annunced plans t link rises in the State Pensin Age abve age 67 t increases in life expectancy. 6 The 85 year rule des nt apply t frmer members f the Metrplitan Civil Staffs Superannuatin Scheme, r Meat Hygiene Service members, r civil servants transferred t the Envirnment Agency wh by virtue f regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014 are subject t, respectively, regulatin 144A f, and Schedule 7 t, the LGPS Regulatins 1997, regulatin 144B f the LGPS Regulatins 1997 and regulatin 15 f the LGPS (Transitinal Prvisins) Regulatins Page 5 f 8

6 5. Fr: i) active members vluntarily retiring n r after age 55 8 and befre Nrmal Pensin Age wh elect under regulatin 30(5) f the LGPS Regulatins 2013 t immediately draw benefits, and ii) deferred members and suspended Tier 3 ill health pensiners wh elect under regulatin 30(5) f the LGPS Regulatins 2013 t draw benefits (ther than n ill health grunds) n r after age 55 9 and befre Nrmal Pensin Age wh: - were nt members f the LGPS befre 1 Octber 2006 [Grup 4 members], whether t: waive n cmpassinate grunds, any actuarial reductin that wuld therwise be applied t benefits, if any, accrued befre 1 April 2014, and / r waive, in whle r in part (n any grunds), any actuarial reductin that wuld therwise be applied t benefits accrued after 31 March 2014 Where members chse t vluntarily draw their benefits n r after age 55 and befre Nrmal Pensin Age ARCH Initiatives will nt agree t waive in whle r in part (n any grunds, including cmpassinate grunds) any actuarial reductin that wuld therwise be applied t their benefits. - were members f the LGPS befre 1 Octber 2006 and will be 60 r mre n 31 March 2016 [Grup 1 members], whether t: waive n cmpassinate grunds, any actuarial reductin that wuld therwise be applied t benefits accrued befre 1 April 2016, and / r waive, in whle r in part (n any grunds), any actuarial reductin that wuld therwise be applied t benefits accrued after 31 March were members f the LGPS befre 1 Octber 2006 and will nt be 60 r mre n 31 March 2016 and will nt attain age 60 between 1 April 2016 and 31 March 2020 [Grup 3 members], whether t: waive n cmpassinate grunds, any actuarial reductin that wuld therwise be applied t benefits accrued befre 1 April 2014, and / r 8 Age 50, by virtue f regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014, fr thse LGPS members transferred frm the Learning and Skills Cuncil t whm regulatin 16A f the LGPS (Benefits, Membership and Cntributins) Regulatins 2007 applies and thse civil servants transferred t the Envirnment Agency t whm regulatin 15 f the LGPS (Transitinal Prvisins) Regulatins 2008 applies. 9 Age 50, by virtue f regulatin 24 f the LGPS (Transitinal Prvisins, Savings and Amendment) Regulatins 2014, fr thse LGPS members transferred frm the Learning and Skills Cuncil t whm regulatin 16A f the LGPS (Benefits, Membership and Cntributins) Regulatins 2007 applies and wh are electing fr early payment f a deferred benefit (but nt if they are electing fr early payment f a suspended Tier 3 ill health pensin) and thse civil servants transferred t the Envirnment Agency t whm regulatin 15 f the LGPS (Transitinal Prvisins) Regulatins 2008 applies and wh are electing fr early payment f a deferred benefit r early payment f a suspended Tier 3 ill health pensin. Page 6 f 8

7 waive, in whle r in part (n any grunds), any actuarial reductin that wuld therwise be applied t benefits accrued after 31 March were members f the LGPS befre 1 Octber 2006 and will nt be 60 r mre n 31 March 2016 but will attain age 60 between 1 April 2016 and 31 March 2020 [Grup 2 members], whether t: waive n cmpassinate grunds, any actuarial reductin that wuld therwise be applied t benefits accrued befre 1 April 2020, and / r waive, in whle r in part (n any grunds), any actuarial reductin that wuld therwise be applied t benefits accrued after 31 March 2020 Page 7 f 8

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