POLICY STATEMENT. Local Government Pension Scheme Policy. LGPS Discretions Internal Disputes Resolution Procedure

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1 POLICY STATEMENT TITLE: Policy INTRODUCTION/OVERVIEW: The purpose of this policy is to explain the LGPS regulation and the impact they have on Northampton College s employees. POLICY STATEMENT: The LGPS is a statutory, funded pension scheme. The new scheme came into effect on 1 st April The benefits received when individuals retire are based on membership in the scheme and their pensionable pay on leaving. QUALITY STATEMENTS: Summary of the main benefits from 1 st April 2014 (Any pension that has been built up prior to 1 st April 2014 remains fully protected and will be based on your final pay as present). - The normal pension age is equal to the individual member s state pension age (minimum of age 65) with the option to take voluntary retirement from the age of 55 with reductions). - Pension will be calculated on career average revalued earnings (any pension built up prior to 1 st April 2014 remains fully protected and will be based on final salary). - 9 Tiered contribution bands based on actual earnings. - Pension of 1/49 th of pensionable pay (calculated at 1/80 th of pensionable pay up to 31 st March 2008 and 1/60 th up to 31 st March 2014). - Pensionable pay includes all non-contractual overtime and additional hours for part-time staff. - Option to pay 50% contributions for 50% of the pension benefit. - Option to take lump sum by commuting part of pension for service after 1 st April Death in service benefit (3 times pensionable pay). - Tiered ill health arrangements. - Vesting period of 2 years. - Option to purchase Additional Pension Contributions (APC) LINKED POLICIES/ PROCEDURES: LGPS Discretions Internal Disputes Resolution Procedure Maternity Policy Paternity Policy Adoption Policy Work Life Balance Policy Staff Sickness Absence Policy MONITORING PROCEDURE: Annual contribution rate report April Annual statements to members

2 DATE FOR REVIEW AND NEXT DIVERSITY IMPACT ASSESSMENT: This policy will be reviewed and revised periodically, particularly in the light of any developments in employment legislation or good employment practice, in order to ensure its continuing relevance and effectiveness. RESPONSIBILITY: Overall (Directorate/Dept): Implementation: Pat Brennan-Barrett, Principal Jan Hutt, Director of Human Resources ENDORSED BY EMT AND APPROVED BY CORPORATION (Principal to sign) (Signature) Pat Brennan Barrett Principal (Position) (Date) 2

3 Communications Plan TITLE OF COLLEGE POLICY: Policy DATE APPROVED BY EMT/CORPORATION: AUDIENCE (select appropriate with ) Managers Curriculum teams Business Support teams All staff Suppliers Partners Other (please state) Discretions to be shared with LGPS CHANNEL (select appropriate with ) Policy & Strategy Team Quality Improvement (PST) Network (QIN) e.g. Meeting Marketing team NC Update Managers Update Intranet Website Individual team Suppliers Partners College Management Team (CMT) COMMUNICATIONS PLAN ACTIVATED BY: Name: Job title: Jan Hutt Director of HR Date: 23 June

4 1. Eligibility to Join the 1.1 All eligible employees will be automatically entered into the Local Government Pension Scheme (LGPS), unless an Opt Out form is completed. Employees are not eligible for membership of the LGPS if they: Are aged 75 or over. Are a teacher or manager that is eligible to join the Teachers Pension Scheme. Have a contract of employment which is less than three months in duration. 1.2 Entry into the pension scheme is based on each of the employee s post/s. 1.3 Existing employees who are already contributing into the pension scheme will be able to continue contributing into the scheme. 1.4 Entry into the pension scheme will be into the main scheme. Employees wishing to make a 50/50 election can do so once they have joined the main scheme. 1.5 Employees who opt out of the scheme within 3 months of joining will have their contributions refunded by Northampton College. 1.6 Employees who opt out after 3 months of joining the scheme but before 2 years are entitled to claim a refund from the Pension Fund. 1.7 If an employee s contract is for less than 3 months and is extended to more than 3 months, the employee will automatically be entered into the scheme, unless an Opt Out form is completed but will not be given the opportunity to backdate their membership to their start date. 1.8 Employees working beyond their normal pension age will continue to contribute into the pension scheme with their retirement benefits being paid from the earlier of The employee s date of or retirement, or The eve of the employee s 75 th birthday. 1.9 Members of the are contracted out of the State Second Pension (S2P) There is no limit as to how many times an employee can opt in or out of the scheme Auto-enrolment at Northampton College has been deferred until 1 st October Employee Contribution Rates 2.1 All members of the pension scheme are eligible for tax relief on their pension contributions. 2.2 Employees will contribute a percentage of their pensionable pay. The rate is based on actual pensionable pay. 2.3 The employee contribution rate is dependent upon the actual salary. Please see appendix 2 for the current bands. 4

5 2.4 The contribution rate for Hourly Paid employees will initially be based on the rate 5.5%. 2.5 Employees contribution rates will be assessed on an annual basis on the 1 st April each year. 2.6 Contribution rates will not be assessed at any other times of the year, after incremental rises, cost of living increases and variations to contracts. 2.7 Employees will be notified each year in writing of their contribution rate. 2.8 Employees have the right to appeal against the contribution rate assigned to them. Appeals should be made in writing and addressed to John Bexson, Deputy Principal - Curriculum & Student Services. 3. Pensionable Pay 3.1 Pensionable pay is defined as the salary/wage paid to the employee in respect of employment and includes: Non-contractual overtime. Any benefits specified in the employee s contract of employment as being a pensionable emolument. Any payments made for flexible benefits. Any bonus payments and/or performance related pay. Any payment in relation to market forces payments. 3.2 Pensionable pay does not include: Any sum which has not had tax liability determined on it. Any travelling, subsistence or any other allowance paid in respect of expenses incurred in relation to the employment. Any payment in consideration of loss of holidays. Any payment in lieu of notice to terminate an employee s contract of employment. Any payment as an inducement not to terminate employment before the payment is made. Any payment in consideration of loss of future pensionable payments or benefits. Any award of compensation (excluding any sum representing arrears of pay) for the purpose of achieving equal pay in relation to other employees /50 Section 4.1 Employees may elect to go into the 50/50 section of the pension scheme. Employee contributions will be deducted at half the rate due under the main section. The employee will accrue half the normal pension whilst in the 50/50 section. The employer however will pay the normal full contributions as if the employee was in the main section. 4.2 Employees may elect to move between the main and the 50/50 sections of the scheme any number of time but each election will take effect from the next available pay period. For employees who have more than one job, elections need to be made per post. 5

6 5. Absence from Work Assumed Pensionable Pay (APP) Assumed Pensionable Pay will be applied if an employee moves to a period of reduced contractual pay or nil pay as a result of sickness or injury and during relevant child related leave i.e. ordinary maternity, paternity or adoption leave and any paid additional maternity, paternity or adoption leave. APP will be calculated based on the last 3 months pensionable pay but will not include any lump sum payments (i.e. bonus payments). To calculate APP the three complete months prior to the relevant event will be used for the averaging and grossing up calculation. Example Employee receives Month 1 1,400, Month 2 1,500 and Month 3 1,400 Annual rate of APP = ( 1, , ,400)/3*12 = 17, Sick Leave Sick leave will be treated as pensionable service and benefits will continue as if the employee was working normally. Assumed Pensionable Pay (APP) will be applied if an employee moves to a period of reduced contractual pay or nil pay as a result of sickness or injury. Employees will pay contributions on any pensionable pay received during such periods of absence however the employer will pay contributions on the amount of APP. If an employee is in the 50/50 section prior to dropping to nil contractual pay because of sickness, they will be returned to the main section from the beginning of the next pay period (providing that they are on nil pay at that time). If an employee retires with a Tier 1 or Tier 2 ill health pension whilst in the 50/50 section, the amount of ill health enhancement granted will be calculated as if the employee was in the main scheme. Assumed Pensionable Pay (APP) will be used for Tier 1 and Tier 2 ill health retirement calculations. 5.2 Maternity, Paternity & Adoption An employee in receipt of remuneration, whether salary or statutory payments or both, will be treated as though they are working normally for the purpose of LGPS benefits. Northampton College will pay employer s contributions to the pension scheme as if the employee had remained on full pay. The employee is only required to pay contributions on the amount of actual remuneration, SMP, SPP, or SAP she/he is in receipt of. Assumed Pensionable Pay will be applied if an employee moves to a period of reduced contractual pay or nil pay during relevant child related leave i.e. ordinary maternity, paternity or adoption leave and any paid additional maternity, paternity or adoption leave. 6

7 Periods of unpaid additional maternity, paternity or adoption leave will be treated as authorised unpaid leave of absence. Please refer to section 8 relating to Additional Pension Contributions for information relating to buying back lost pension. 5.3 Parental Leave Parental leave is an authorised period of temporary unpaid leave, which will not count towards LGPS membership unless the employee opts to buy Additional Pension Contributions (APC s). Please refer to section 5.7 Authorised Unpaid Leave. 5.4 Trade Dispute Absence due to a trade dispute is treated, initially the same as authorised absence in as much as no pension contributions are payable and the membership does not count. However, employees may elect within 30 days of returning to work (or within 30 days of leaving if the employee does not return) to purchase Additional Pension Contributions (APC) to buy lost pension. However employer contributions are not payable for this period. 5.5 Jury Service Employees required to attend Jury Service will receive full pay during their period of absence. As such, Employee and contributions are mandatory for the whole of any Jury service. 5.6 Authorised Unpaid Leave There is no requirement for the employee to pay contributions on any periods of authorised unpaid leave. However, the employee can opt to pay an age-related Additional Pension Contribution (APC) to cover the amount of pension lost during a period of authorised unpaid leave. Please refer to section 8 for further information. 5.7 Un-Authorised leave of Absence Any unauthorised absence where the employee does not receive any pay will not count as membership and contributions cannot be deducted in respect of the absence, regardless of the length. 6. Transferring Benefits into the LGPS Scheme 6.1 Employees may be able to transfer previous pension benefits into the LGPS scheme or combine pension benefits from previous local government employment. The transfer request must be submitted within the first 12 months of joining the scheme. 7. Death Benefits 7.1 Nominating beneficiaries for death grants must be completed on the correct LGPS forms which can be obtained from the Pension Section at Northampton County Council or the HR department at Northampton College. 7.2 Death Grant payable: Death in service Death in Service Survivor Benefits 3 times pensionable pay 1/160 th accrual based on Tier 1 ill health pension enhancement. 7.3 If an employee dies in service whilst in the 50/50 section, the lump sum death grant will be calculated as if the employee was in the main scheme. 7.4 Survivor Pensions will be payable for life to spouses, civil partners (same sex partners). 7

8 7.5 Co-habiting partners have to meet certain conditions laid down by the LGPS. Forms can be obtained from the LGPS or the HR department at Northampton College. Survivor Pensions will be payable for nominated co-habiting partners (same or opposite sex). 7.6 Death in service will be calculated using Assumed Pensionable Pay (APP). 8 Additional Pension Contributions (APC) Employees in the pension scheme can choose to buy extra pension up to a maximum of 6,500 using Additional Pension Contributions (APC), subject to the terms and conditions of the Pension Fund administering authority. 8.2 Buying Extra Pension Extra pension can be purchased in either a one off contribution or regular additional contributions. Northampton College will not contribute to towards the costs. APC cannot be purchased if the employee is in the 50/50 section. 8.3 Buying Lost Pension Lost pension can be purchased for authorised unpaid leave of absence (including any period of unpaid additional maternity, paternity or adoption leave). Employees are able to elect to purchase an APC to buy all or part of the amount of pension lost during the period of absence. The election needs to be made within 30 days of returning to work. Northampton College will pay for 2/3rds of the cost of the APC, which will be calculated as 1/49 th of the Assumed Pension Pay (APP) for the period of unpaid leave if the employee was in the main section of the scheme or 1/98 th of the APP for the period of unpaid leave if the employee was in the 50/50 section. 9 Retirement 9.1 The retirement age in the 2014 mirrors the individuals State Pension Age however voluntary retirement is available from the age of 55 (with reduced benefits). 9.2 Flexible retirement requests will be considered by Northampton College following confirmation that no costs will be incurred by the College. The reduction in hours must be at least 1 day per week or equivalent. 9.3 Employees who are aged 55 plus and are made redundant will be automatically entitled to their retirement benefits, without actuarial reduction. 10 Changes in Details 10.1 It is the responsibility of the employee to inform the LGPS of any changes in personal details that could affect their pension. This includes changes of addresses and changes in dependant s details It is the responsibility of the College to inform the LGPS of any changes to your employment details including working hours, salary payments, contribution bands and any absences from work. 11 Internal Disputes Resolution Procedure 8

9 11.1 An internal appeals process exists where individuals can raise their concerns over decisions made in respect of their pension benefits. This could include banding of the contribution rate or applying the correct rules. Please see Appendix The nominated person for dealing with the internal disputes resolution procedure is the Deputy Principal - Curriculum & Student Services. 12. LGPS Discretions 12.1 Within the pension regulations, Northampton College, as the Employing Authority has to make decisions in respect of certain discretions available The discretions and decisions taken by the Employing Authority and the Administering Authority are detailed in the attached documents. (Appendix 3) 13. Data Retention Northampton College is responsible for retaining records indefinitely for each post employee s hold. Data includes: Contributions Cumulative Pensionable Pay Assumed Pensionable Pay (APP) Protections Underpin (old Final Pay and changes/absence periods) Added Years Ill Health 9

10 Appendix 1 Internal Disputes Resolution Procedure Northampton College and the Appeals Procedure Introduction This guide is to help you understand the procedures for settling any disagreement or complaint you may have about decisions your employer or the Authority that administers the (the Scheme) have made about you or your benefits under the Scheme. Northampton County Council administers the Scheme and throughout this guide is referred to as the Administering Authority. The address of the Administering Authority is Northamptonshire County Council, John Dryden House, 8-10 The Lakes, Northampton, NN4 7YD. Decisions From the day a person starts a job with an employer, to the day benefits or dependant s benefits are paid, the employer and the Administering Authority have to make decisions under the Scheme rules that affect you. What to do when you are notified of a decision When you (this includes dependants) are notified of a decision you should check, as far as you can, to see if you think it is based on the correct details and that you agree with it. What to do if you are unhappy with a decision It is normally a good idea to make an informal enquiry in the first place. Most problems can be resolved in this way. They are often caused by misunderstandings or wrong information, which can be explained or put right quickly and easily by the employer or the Administering Authority. So we suggest that you either telephone the number on the letter or form which your employer or the Administering Authority sent to you notifying you of their decision. If, having done so, you remain unhappy with the decision (or the lack of one) then, under Stage 1 of the Internal Dispute Resolution Procedure, you have the right to have the decision looked at afresh by a person nominated by the body who took the decision against which you wish to appeal. In this guide we refer to that person as the nominated person. The post title and address of the nominated person are: Deputy Principal -Teaching, Learning & Success, Northampton College, Booth Lane, Northampton, NN3 3RF. If you are not happy with the nominated person s decision at Stage 1 you can then appeal to the Administering Authority to have your case reviewed afresh at Stage 2 of the Internal Dispute Resolution Procedure. The review would be undertaken by a person not involved in the Stage 1 decision. At either stage you will be able to contact the Occupational Pensions Advisory Service, 11 Belgrave Road, London, SW1V 1RB, Telephone who will be able to assist you with any difficulty that remains unresolved. If you are unhappy following the Administering Authority s Stage 2 decision, you can then take your case to the Pensions Ombudsman. For details of the procedure please visit Are there any time limits I should be aware of? Yes. If you wish to use the dispute rules you must make your application to the nominated person within 6 months after you were notified of the decision you are complaining about. If your complaint is that a decision has not been made, you must make your application within 6 months of the time the decision ought to have been made. You should not, therefore, leave 10

11 things too long before making your application to the nominated person. That person can extend the 6 months time limit for a reasonable period if he / she considers that it is reasonable to do so. The nominated person should give you a decision within 2 months of receiving your written complaint or write to you at the end of 2 months telling you the reasons for a delay in reaching a decision and giving you the date when he / she expects to be able to let you know the outcome. If you get neither a letter giving the nominated person s decision nor a letter giving the reason for a delay within 3 months of the date you made the application, or if you don t receive the nominated person s decision within 1 month of the date he / she said he / she expected to give you a decision, you can apply directly to the Administering Authority without waiting any longer (see below). What power does the nominated person s decision have? The nominated person s decision is binding on you, the employer and/or the Administering Authority unless you disagree with the Stage 1 decision and make an appeal to the Administering Authority at Stage 2 of the process. This means that if the nominated person s decision is contrary to the decision originally taken by your employer or by the Administering Authority they must either deal with your case on the basis of the decision made by the nominated person or, where the decision relates to the exercise of a discretion by the employer or the Administering Authority, the employer or Administering Authority will be required to reconsider its decision. Appeal to the Administering Authority (Stage 2 of the process) If you are unhappy with the nominated person s decision, you can ask the Administering Authority to take a further look at the facts of the case. Such a request must be made within 6 months of the date of the nominated person s decision letter. If the nominated person has failed to make a decision and has not issued you with an interim reply within 3 months of the date of your appeal application, you then have 6 months from the end of the initial 3 month period within which to lodge an appeal with the Administering Authority. If the nominated person has issued you with an interim reply but, does not issue a determination within 1 month of the date he / she said he/she would, you then have 6 months after the end of that 1 month period within which to lodge an appeal with the Administering Authority. 11

12 Appendix 2 Contribution Bands From 1 st April 2016, the contribution rates are: Pay Band Contribution Rate Up to 13, % 13,601 to 21, % 21,201 to 34, % 34,401 to 43, % 43,501 to 60, % 60,701 to 86, % 86,001 to 101, % 101,201 to 151, % Over 151, % 12

13 Appendix 3 LGPS Discretions 2014 Complete listing of Northampton College's LGPS Discretions Updated June 2014 Discretions from in relation to post active members and post leavers Compulsory Discretions Discretion Regulation Exercised by Northampton College Policy Granting additional pension Shared cost APCs Flexible retirement 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 6,500 p.a.) Whether, where an active Scheme member wishes to purchase extra annual pension of up to 6,500 (figure at 1 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) 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) Whether to waive, in whole or in part, actuarial reduction to benefits paid on flexible retirement R31 Northampton College will not normally grant extra annual pension. Any such payment would only be granted in exceptional circumstances where there are compassionate grounds or in the College s business interest R16(2)(e) & R16(4)(d) R30(6) & TP11(2) Northampton College will not normally contribute to the cost of purchasing extra pension via a SCAPC. Any such payment would only be granted in exceptional circumstances where there are compassionate grounds or in the College s business interest. Northampton College will allow members to take flexible retirement on the following conditions: - The reduction must be at least 1 day per week (or equivalent), and - The manager is able to accommodate the reduction in hours and - Confirmation that no costs will be incurred by the College. R30(8) Northampton College will not normally waiver any actuarial reductions applied to benefits taken on flexible retirement but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest.

14 85 Year Rule Waive Reduction Whether to switch on the 85 year rule for a member voluntarily drawing benefits at or after age 55 and before age 60. Whether to waive, on compassionate grounds, any actuarial reduction on pre and/or post April 2014 benefits Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age TPSch 2, paras 1(1)(c), 1(2) and 2(2) TP3(1), TPSch 2, paras 2(1) and 2(2), B30(5) and B30A(5) Northampton College will not normally switch on the 85 year rule nor waive actuarial reductions at the College s cost but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest. Northampton College will not normally waive any actuarial reductions but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest. R30(8) Northampton College will not normally waive any actuarial reductions but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest. Recommended Discretions Discretion Regulation Exercised by Northampton College Policy Shared cost AVCs Transferring in non LGPS pension rights Whether, how much, and in what circumstances to contribute to shared cost AVC arrangements entered into on or after 1/4/14 Whether, how much, and in what circumstances to continue to contribute to a shared cost AVC arrangement entered into before 1/4/14 Extend normal time limit for acceptance of a transfer value beyond 12 months from joining the LGPS R17(1) & definition of SCAVC in RSch 1 TP15(1)(d) & A25(3) Northampton College will not normally contribute to a shared cost AVC arrangement but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest. Northampton College will not continue to contribute to a shared cost AVC arrangement. R100(6) Northampton College will not accept a transfer value beyond 12 months of joining the LGPS.

15 Joining LGPS membership Employee contribution rate Regular lump sum payments Whether to extend the 12 month option period for a member to elect that deferred benefits should not be aggregated with a new employment 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 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) In determining Assumed Pensionable Pay, whether a lump sum payment made in the previous 12 months is a regular lump sum R22(8)(b) Northampton College will not extend the 12 month option period for a member to elect that deferred benefits should not be aggregated with a new employment. R22(7)(b) Northampton College will not extend the 12 month option period for a member to elect that deferred benefits should not be aggregated with R9(1) & R9(3) an ongoing concurrent employment. The contribution rate for Hourly Paid employees will initially be based on the rate 5.5%. Employee s contribution rates will be assessed on an annual basis on the 1st April each year. Contribution rates will not be assessed at any other times of the year, after incremental rises, cost of living increases and variations to contracts. Full details can be found in section 2 of the Northampton College's LGPS policy. R21(5) Northampton College will not normally determine a lump sum payment as a 'regular lump sum' but consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest.

16 Discretions in relation to scheme members who ceased active membership on or after and before Compulsory Discretions Discretion Regulation Exercised by Northampton College Policy consent retirement Waive reduction Granting additional membership consent retirement following Tier 3 Ill health award Waive reduction Whether to grant application for early payment of deferred benefits on or after age 55 and before age 60 Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early under B30 Whether, for a member leaving on the grounds of 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 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 Whether to waive, on compassionate grounds, the actuarial reduction applied to benefits paid early under B30A B30(2) Northampton College will not normally grant applications for early payment of deferred benefits on or after age 55 or before 60. Any such grant would only be in exceptional circumstances where there are compassionate grounds or in the College s business interest B30(5) ( Northampton College will not normally agree to waive the actuarial reduction applied to deferred benefits paid early. Any such grant would only be in exceptional circumstances or in the College s business interest B12 Northampton College will not normally agree for a member leaving on the grounds of redundancy or business efficiency on or before 31st March 2014, to augment membership (by up to 10 years). Any such grant would only be in exceptional circumstances where there are compassionate grounds or in the College s business interest B30A(3) Northampton College will not grant an application for early payment of a suspended tier 3 ill health pension on or after age 55 and before age 60 however consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest B30A(5) Northampton College will not waive, on compassionate grounds, the actuarial reduction applied to benefits paid early under B30A however consideration may be given in exceptional circumstances or in the College's business interest.

17 Discretions under the Regulations 1997 (as amended) in relation to: a) active councillor members, and b) councillor members who ceased active membership on or after , and c) any other scheme members who ceased active membership on or after and before Compulsory Discretions Discretion Regulation Exercised by Northampton College Policy consent retirement Waive reduction consent at NRD for optant out Grant application from a post / pre leaver or from a councillor for early payment of benefits on or after age 50/55 and before age 60 Waive, on compassionate grounds, the actuarial reduction applied to benefits paid early for a post / pre leaver or a councillor leaver pre employee optants out (Not Councillors) who are still in the same employment only to get benefits paid from NRD if employer agrees 31(2) Northampton College will not normally grant applications from a post / pre leaver for early payment of benefits on or after age 50/55 and before age (5) Northampton College will not normally waive, on compassionate grounds, the actuarial reduction applied to benefits paid early for a post / pre leaver. 31(7A) Northampton College will allow pre employee optants out who are still in the same employment only to get benefits paid from Normal Retirement Date, if no costs are attached to such consent. Discretions under the LGPS Regulations 1995 (as amended) in relation to scheme members who ceased active membership before Recommended Discretions Discretion Regulation Exercised by Northampton College Policy consent retirement Grant application from a pre leaver for early payment of deferred benefits on or after age 50 on compassionate grounds D11(2)(c) Northampton College will not normally grant applications from a pre leaver for early payment of deferred benefits on or after age 50 on compassionate grounds; however consideration may be given in exceptional circumstances or in the College's business interest.

18 Discretions under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 (as amended) Compulsory Discretions 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: Discretion Regulation Exercised by Northampton College Policy Redundancy Pay on actual weeks pay Lump sum compensation To base redundancy payments on an actual weeks pay where this exceeds the statutory weeks pay limit. 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. 5 Northampton College will normally base redundancy pay on the maximum statutory weekly pay limit. 6 Northampton College will not award a 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.

19 Discretions under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000 (as amended) Compulsory Discretions These Regulations still apply to any Compensatory Added Years previously awarded by a Scheme before 1 April Scheme employers (other than admission bodies) who made awards of Compensatory Added Years are required to have a policy on the following: Discretion Regulation Exercised Northampton College Policy Abatement during reemployment Reduction following cessation of reemployment Apportionment of survivor benefit Effects of remarriage, new civil partnership or co-habitation on survivor's compensation payments Whether and to what extent to reduce or suspend the member's annual compensatory added years payment during any period of reemployment in local government How to reduce the member's annual compensatory added years payment following the cessation of a period of re-employment in local government How to apportion any surviving spouses or civil partner s annual compensatory added years payment where the deceased person is survived by more than one spouse or civil partner 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 If, under the 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 by 17 Not applicable, Northampton College has not exercised this discretion. 19 Not applicable, Northampton College has not exercised this discretion. 21(4) Not applicable, Northampton College has not exercised this discretion. 21(7) Not applicable, Northampton College has not exercised this discretion. 21(5) Not applicable, Northampton College has not exercised this discretion.

20 Discretions under the Local Government (Discretionary Payments) (Injury Allowances) Regulations 2011 Compulsory Discretions Scheme employers (other than admission bodies) must have a policy on: Discretion Regulation Exercised by Northampton College Policy Injury Allowances 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. 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. Determine whether person continues to be entitled to an injury allowance awarded under regulation 3(1). 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. 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. Determine whether person continues to be entitled to an injury allowance awarded under 3(1) Northampton College will not normally 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 however consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest 3(4) and 8 N/A as above 3(2) N/A as above 4(1) Northampton College will not normally 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 however consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest 4(3) and 8 N/A as above 4(2) N/A as above

21 regulation 4(1). Whether to suspend or discontinue injury allowance awarded under regulation 4(1) if person secures paid employment for not less than 30 hours per week for a period of not less than 12 months. Whether to grant an injury allowance following cessation of employment with entitlement to immediate LGPS pension where a reg 3 payment was being made at date of cessation of employment but reg 4 does not apply. Determine amount of any injury allowance to be paid under regulation 6(1) Determine whether and when to cease payment of an injury allowance payable under regulation 6(1) Whether to grant an injury allowance to the spouse, civil partner, nominated 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. Determine amount of any injury allowance to be paid under regulation 7(1) Determine whether and when to cease payment of an injury allowance payable under regulation 7(1) 4(5) N/A as above 6(1) Northampton College will not normally grant an injury allowance following cessation of employment with entitlement to immediate LGPS pension where a reg 3 payment was being made at date of cessation of employment but reg 4 does not apply however consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest 6(1) N/A as above 6(2) N/A as above 7(1) Northampton College will not normally grant an injury allowance to the spouse, civil partner, nominated 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 however consideration may be given in exceptional circumstances where there are compassionate grounds or in the College s business interest 7(2) and 8 N/A as above 7(3) N/A as above

22 Key to Regulation References (in Bold): - the Regulations 2013 [prefix R] - the (Transitional Provisions, Savings and Amendment) Regulations 2014 [prefix TP] - the (Administration) Regulations 2008 [prefix A] - the (Benefits, Membership and Contributions) Regulations 2007 (as amended) [prefix B] - the (Transitional Provisions) Regulations 2008 [prefix T] - the Regulations 1997 (as amended) [prefix L]