CORSHAM PRIMARY SCHOOL. Pickwick Learning. Pension Policy. Reviewed: July Policy Ratified by the Board: July 2016
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1 CORSHAM PRIMARY SCHOOL Pickwick Learning Pension Policy Reviewed: July 2017 Policy Ratified by the Board: July 2016 Next Review Date: July 2018
2 Please note that this policy covers employees of Pickwick Learning which is Corsham Primary School s trading arm. Substitute terminology: Executive Headteacher = Chief Executive Officer School = social enterprise Corsham Primary = Pickwick Learning
3 LGPS EMPLOYER S DISCRETIONS POLICY FOR CORSHAM PRIMARY ACADEMY TRUST LGPS 2014 Scheme Pension Discretionary Policy Statement (LGPS) Effective from April The Local Government Pension Scheme (Administration) Regulations 2013 Introduction This policy statement clarifies Corsham Primary Academy Trust s position on the discretions it can exercise in accordance with the LGPS 2014 regulations and guidance on how they apply to different retirement options. The policy statement applies to all members of staff who are eligible to be members of the LGPS, as defined in the regulations i.e. employees with a contract of employment of over 3 month s duration and who are under 75 years of age and are contractually enrolled at the start of employment. Those with contracts of less than 3 months, including casuals, can join but need to elect to do so. Employees who are members of the pension scheme are only entitled to receive pension benefits if they have 2 years or more service. Under LGPS 2014 Regulation 18, if an employee leaves within 2 years of the start of their employment, their contributions can be repaid (Employee Contributions) or transferred to another scheme, unless there is some fraudulent offence or misconduct in connection with the employment. Principles Corsham Primary School will treat any individual retirement case and decisions on its merits. Decisions relating to retirement will be made taking into account the business case and business implications, the financial implications, employment law consideration, the regulations and the legality of each case. It may also take into account long term savings, affordability, skills and skills retention and impact on service delivery. The definition of business efficiency shall include, but not be limited to financial savings and/or quality improvements judged on a case by case basis. Each decision will be made free from discrimination on the grounds of any protected characterising age, disability, gender reassignment, marriage or civil partnership, pregnancy & maternity, race, religion and belief, sex, sexual orientation or any other personal criteria. The School s decisions relating to retirement and the release of pension benefits will be in line with the current pension regulations. These regulations may be updated from time to time and the Authority will default to the regulations if the policy is not explicit on any current or future regulation. Page 1 of 3
4 Decisions relating to the release of deferred benefits to former employees will refer to the relevant pension policies applicable at the time of their employment. In such cases, the decision as to the release of deferred benefits will be on a case by case basis and will take into account the criteria detailed in these principles. Guidance may be sought from the pension administrators as required. Compassionate grounds are defined in the Blue Book (Terms & Conditions of Employment) as: circumstances must be exceptional and would not reasonably be expected to prevail i.e. the occurrence of a disaster or accident etc. Financial hardship alone would not normally b e deemed sufficient. Discretions Within the regulations there are a number of discretionary statements that require Corsham Primary School to explicitly state their position. The discretions detailed below relate to the current LGPS 2016 regulations and guidance. They also reflect discretions approved by the School for the previous pension scheme policies. LGPS EMPLOYER S DISCRETIONS POLICY FOR CORSHAM PRIMARY ACADEMY SCHOOL LGPS 2016 DISCRETION & REGULATION 1). Reg 31: Whether to grant additional pension to a member (up to 6755 pa) 2). Reg 16(2)e & Reg 16(4)d: Whether to it make either a regular or lump sum Additional Pension Contribution (APC) to a member s account (part or whole funding this) [Note: this discretion only relates to cases when the member is working as normal rather than absent from work with permission but no pensionable pay in the latter scenario, employers must fund it if necessary.] POLICY ON INDIVIDUAL DISCRETIONS 3). Reg 30(6) Whether all or some pension benefits can be paid if an member aged 55 or over reduces their hours/grade and continues to work ( flexible retirement ) 4). Reg 30(8) Waiving actuarial reduction on flexible retirement. Corsham Primary Academy Trust will consider employee requests to take flexible retirement on a case by case basis after taking into factors such as service delivery and any costs that may apply. The Staffing Sub-Committee will be responsible for agreeing (or otherwise) to all requests to take flexible retirement. waive the actuarial reduction on flexible retirement in Page 2 of 3
5 exceptional circumstances following approval from the Staffing Sub-Committee 5). Reg 30(8) Waiving actuarial reduction on early retirement (age 55+) for both active, deferred members & suspended tier 3 ill health pensions 6). TP Regs 1(1)(c) of Schedule 2: Whether to allow the rule of 85 to be switched on for members who would normally meet the rule but who will not if they draw the benefits age ). Regs B30A(5): Whether to waive actuarial reductions on compassionate grounds when switching on rule of 85. 8). Regs 22(8 & 9) Whether to extend 12-month period to separate previous LG service. waive the actuarial reduction on early retirement in exceptional circumstances and as the result of the expressed permission of the Staffing Sub- Committee after considering the costs that would apply. agree to switch on the rule of 85 in exceptional circumstances following approval from the Staffing Sub-Committee after considering the costs that will apply. agree to waive actuarial reductions in exceptional circumstances following approval from the Staffing Sub-Committee after considering the costs that will apply. allow an extension to the 12-month period to separate previous LG service where it can be reasonably shown that the member was not provided with the required information within 6 months of starting. 9). Reg 9(3) Determine rate of employees contributions. review all employees contribution band as at 1 April each year. Hence, when a member salary or hours change (either temporarily or permanently) during the year, the member will remain on the same employee contribution rate until the following April. OR [check with your payroll provider first before changing this] [Employer Name] will review all employees contribution bands when there has been contractual change to a member s salary or hours at some point during the year. A member s contribution rate will not be reviewed as the result of one-off additional payments (such as honorariums) 10). Reg 100(6) Whether to extend 12- month period to allow a transfer-in of non-lg pension rights. allow an extension to the 12-month period to combine previous non-lg service where it can be shown that the member was not provided with the required information within 6 months of starting. Page 3 of 3
6 11). Reg 16(16) Whether to extend the 30 day deadline for member to elect for a shared cost APC [Note: this discretion only relates to cases when the member has a period of unpaid authorised leave and wants to pay an APC to recover the pension. For the cost to be shared by the employer and member the member s election must be received by the employer within 30 days of returning to work.] Corsham Primary Academy Trust will consider each request to extend the 30 day deadline on a case by case basis. Abbreviations Reg 16(2)e means Regulation 16(2)e of the Local Government Pension Scheme Regulations 2013 [which apply from 1 April 2014] TP Regs means LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014]. LGPS EMPLOYER S DISCRETIONS POLICY FOR CORSHAM PRIMARY ACADEMY SCHOOL LGPS 2008 DISCRETION & REGULATION 1). Reg B30(2): Whether to grant application for early payment of deferred benefits on or after age 55 and before age 60 2). Reg B30(5): Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early under B30 POLICY ON INDIVIDUAL DISCRETIONS 3). Reg B30A(3): Whether to grant an application for early payment of a suspended tier 3 ill health on or after age 55 and before age 60 4). Reg B30A(5): Whether to waive, on compassionate grounds, the actuarial reduction applied to benefits paid early under B30A waive the actuarial reduction in exceptional circumstances following approval from the Staffing Sub-Committee Page 4 of 3
7 Abbreviation B Regs means LGPS (Benefits, Membership and Contributions) Regulations LGPS EMPLOYER S DISCRETIONS POLICY FOR [EMPLOYER NAME] LGPS 1997 DISCRETION & REGULATION 1). Reg 31(2): Whether to grant application from a post 31/03/98 pre 01/04/08 leaver or from a councillor for early payment of deferred benefits on or after age 55 and before age 60 2). Reg 31(2): Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early under Regulation 30 3). Reg 31(7A): Whether to grant an application for a member who opted out prior to 01/04/08 early payment of their benefits from their Normal Retirement Date (if they re still in the same employment they opted out from) POLICY ON INDIVIDUAL DISCRETIONS Abbreviation Regs means LGPS Regulations Updated 05 August 2016 Page 5 of 3
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