NEWPORT COMMUNITY SCHOOL PRIMARY ACADEMY

NEWPORT COMMUNITY SCHOOL PRIMARY ACADEMY DISCRETIONS POLICY Date Adopted: 14 th July 2016 Author/owner: Resources Committee Anticipated Review: Summer 2019 Office Drive / Academy Policies / Discretions Policy 1

Discretions Policy Coverage: The LGPS Regulations 2013 and The LGPS Regulations 2014 (Transitional Provisions and Savings) and The LGPS Regulations 2008 (Benefits, Membership and Contributions) Employer name: Newport Community School Primary academy Policy effective from: 26 th May 2016 These policies may be subject to review from time to time. Affected employees will be notified of any subsequent change to this Policy Statement. Signed on behalf of: Newport Community School Primary Academy Signature of authorised officer: Date: 26 th May 2016 Print name of authorised officer: V Nel Job title: Chair Governors Office Drive / Academy Policies / Discretions Policy 2

Overview Newport Community School Primary Academy is required to compose, publish and keep under review a policy statement in relation to the exercising of a number of discretions under the LGPS 2014. The LGPS open to all support staff and is provided by Peninsula Pensions www.peninsulapensions.org.uk This policy does not convey any form of contractual rights for LGPS/staff members. The policy will be reviewed and may be subject to change, only the version of the policy that is current at the time at which the event occurs will be the one applied for the purposes of LGPS benefits or membership. This policy does not, nor does it seek to, override the provision of the Local Government Pension Scheme Regulations (Discretionary Payments) as amended, and the Employments Right Acts. The policy statements do not limit or fetter how the Academy exercises any of the discretions afforded by the pension scheme. Staff members should use the information contained in this statement in conjunction with information provided in respect of the benefits provided by the LGPS. In publishing this scheme, Newport Community School Primary Academy is required to pay due regard to the requirement that the policy and its application does not lead to a serious loss of confidence in the public service. To ensure value for money and financial stability, Newport Community School Primary Academy will ensure that discretions will be exercised reasonably and where a cost is incurred it will only be used when there is a future benefit to the employer for incurring the extra cost. The costs of implementing a policy discretion will always be obtained prior to a decision being made. Each case will be based upon its merits and will be implemented with due regard to anti-discrimination laws, the Equality Act 2010 and Age Regulations. Roles & Responsibilities The Resources Committee has overall responsibility for the implementation annd monitoring of the LGPS Discretionary Policy ensuring the policy and its implementation does not discriminate on any grounds, including, but not limited to: age, race,gender, disability or sexual orientation, religion or belief. The School Business Manager has responsibility for the day-to-day implementation and management of the LGPS Discretionary Policy Newport Community School Primary Academy has overall responsibility for handling complaints regarding this policy. In the first instance complaints should be directed to the Head Teacher. Staff members enrolled on the LGPS will be responsible for following the policy. Office Drive / Academy Policies / Discretions Policy 3

LGPS 2013 & 2014 discretions Regulation R16 (2) (e) and R16 (4) (d) Shared Cost Additional Pension Scheme An employer can choose to pay for or contribute towards a member s Additional Pension Contract via a Shared Cost Additional Pension Contract (SCAPC) As a general rule the Academy will not exercise this discretion. However the Academy will consider this where a written business case demonstrates that there is a clear financial or operational advantage to the Academy for doing so. Regulation R17 (1) and TP15 (1) (d) and A25 (3) and definition of SCAVC in RSch 1 Shared Cost Additional Voluntary Contribution Arrangement An employer can choose to pay for or contribute towards a member s Additional Voluntary Contribution arrangement entered into on or after 1 April 2014 through a shared cost AVC. An employer can choose to pay for or contribute towards a member s Additional Voluntary Contribution arrangement entered into before 1 April 2014 through a shared cost AVC. As a general rule the Academy will not exercise this discretion. However the Academy will consider this where a written business case demonstrates that there is a clear financial or operational advantage to the Academy for doing so. Regulation R30 (6) and TP11 (2) Flexible Retirement ** Employers may allow a member from age 55 onwards to draw all or part of the pension benefits they have already built up whole still continuing in employment. This is provided the employer agrees to the member either reducing their hours or moving to a position on a lower grade. In such cases, pension benefits will be reduced in accordance with actuarial tables unless the employer waives reduction on compassionate grounds or a member has protected rights. Requests for flexible retirement must be made using the Academy s Flexible Working Policy. The Academy will only grant flexible retirement requests to members where there is a clear demonstrable financial or operational advantage to the Academy in doing so. There must be a minimum of 40% salary reduction and or hours worked with a planned time period to full retirement. The Academy will not seek to fund any reduction in benefit. Regulation R30 (8), TP3 (1), TPSch2, Para 2(1), B30 (5) and B30 (A) (5) Waiving of actuarial reduction As a consequence of flexible retirement there may be a reduction to the benefit paid. The value of any actuarial reduction will be Office Drive / Academy Policies / Discretions Policy 4

Employers have the power to waive, on compassionate grounds, the actuarial reduction (in whole or part) applied to members benefits paid on the grounds of flexible retirement. Employers may also waive, on compassionate grounds, the actuarial reduction (in whole or part) applied to members benefits for deferred members and suspended tier 3 ill health pensioners who elect to draw benefits on or after age 60 and before normal pension age. applied, the Academy will not seek to fund the reductions applied. In the case of ill health retirement a decision will be made based on its merits and the affordability to the Academy based on a 2/3 year budget forecast Employers also have the power to waive, in whole or in part, the actuarial reduction applied to active members benefits when a member chooses to voluntarily draw benefits on or after age 55 before age 60. Regulation TPSch 2, para 2 (2) and 2 (3) Power of employing authority to switch on the 85 year rule An employer can choose whether to switch on the 85 year rule for members who voluntarily retire on or after age 55 and before age 60. An employer can also choose to waive, on compassionate grounds, the actuarial reduction applied to benefits for a member voluntarily drawing benefits on or after age 55 and before age 60. The Academy will not switch on the 85 year rule for those who voluntarily retire between the ages of 55 and 60. The Academy may switch on the 85 year rule or waive the actuarial reduction on compassionate grounds for exceptional circumstances having regard to the affordability to the Academy based on a 2/3 year budget forecast Regulation R31 Power of employing authority to grant additional pension An employer can choose 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* per annum). (*the figure of 6,500 will be increased each April under Pensions Increase Orders) The Academy does not wish to exercise this discretion of grounds of effective use of financial resources ** Flexible Retirement Please note that if you wish to offer your members the option of flexible retirement, you will need to formulate a separate policy (please see Guidance Notes) Office Drive / Academy Policies / Discretions Policy 5

Policies not required but recommended: R22 (8) (b) - Whether to extend the 12 month option period for a member to elect that post 31st March 2014 deferred benefits should not be aggregated with a new employment R22 (7) (b) - Whether to extend the 12 month option period for a member to elect that post 31st March 2014 deferred benefits should not be aggregated with an ongoing concurrent employment R100 (6) - Extend normal time limit for acceptance of a transfer value beyond 12 months from joining the LGPS R9(1) & R9(3) - Determine rate of employees contributions and when the contribution rate will be assessed The Academy will not exercise this discretion unless there are extenuating circumstances that apply in that evidence exists that an election was made within 12 months but the administering authority did not receive it. Evidence exists that the member could not have been aware of the 12 month limit due to maladministration. The Academy will not exercise this discretion unless there are extenuating circumstances that apply in that evidence exists that an election was made within 12 months but the administering authority did not receive it. Evidence exists that the member could not have been aware of the 12 month limit due to maladministration. The Academy will not exercise this discretion unless there are extenuating circumstances that apply in that evidence exists that an election was made within 12 months but the administering authority did not receive it. Evidence exists that the member could not have been aware of the 12 month limit due to maladministration. The Academy will review an employees contribution bands as at 1 st April each year. If an employees pay changes during the scheme year a review of the contribution rate may be requested by the employee. Office Drive / Academy Policies / Discretions Policy 6

LGPS 2008 discretions To cover scheme members who ceased active membership on or after 1 April 2008 and before 1 April 2014 (no need to complete if not applicable). Regulation B18 Flexible Retirement ** Employers may allow a member from age 55 onwards to draw all or part of the pension benefits they have already built up whole still continuing in employment. This is provided the employer agrees to the member either reducing their hours or moving to a position on a lower grade. In such cases, pension benefits will be reduced in accordance with actuarial tables unless the employer waives reduction on compassionate grounds or a member has protected rights. Requests for flexible retirement must be made using the Academy s Flexible Working Policy. The Academy will only grant flexible retirement requests to members where there is a clear demonstrable financial or operational advantage to the Academy in doing so. There must be a minimum of 30% salary reduction and or hours worked with an agreed planned time period to a full retirement date. The Academy will not seek to fund any reduction in benefit Regulation B30 Choice of early payment of pension B30 (2) Employers can also allow the early payment of deferred benefits to former members of the LGPS between the ages of 55 and 59. Please note where a deferred member left the LGPS before 1 April 2008 the employer policy under the 1997 regulations will apply. B30A(3) Employers may also grant an application for reinstatement of a suspended tier 3 ill health pension on or after age 55 and before age 60. B30 (5) and B30A (5) In such cases, pension benefits will be reduced in accordance with actuarial tables unless the employer waives reduction on compassionate grounds or a member has protected rights. B30 (2) The Academy does not wish to exercise this discretion of grounds of effective use of financial resources. B30A (3), B30 (5), B30A (5) As a consequence of flexible retirement there may be a reduction to the benefit paid. The value of any actuarial reduction will be applied, the Academy will not seek to fund the reductions applied. In the case of ill health retirement a decision will be made based on its merits and the affordability to the Academy based on a 2/3 year budget forecast Office Drive / Academy Policies / Discretions Policy 7