1). Whether to it make either a regular or lump sum Additional Pension Contribution (APC) to a member's account (part or whole funding this) - NEW - Required in Policy Statement Reg 16(2)e & Reg 16(4)d
This discretion relates to the option to help a member purchase additional pension where the employer is not already required to do so under the LGPS Regulations. Employers are required to purchase additional pension in certain circumstances.
2). 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") - Required in Policy Statement - Reg 30 (8)
Flexible retirement means that the member can begin drawing their pension from a certain point in time while they continue working in the same employment (on reduced hours or pay). There will not normally be any direct or immediate costs to the employer if the employer agrees to do this, as the member's pension will be reduced accordingly to allow for any early withdrawal, as is the case for any early retirement. However, if the member would normally reach the rule of 85 before age 60 and they take flexible retirement before age 60 then costs may well apply - therefore for pre-60 flexible retirement cases, we suggest that you contact us for an estimate before making a decision. Please note that the LGPS Regulations do not explicitly mention that a minimum reduction in hours or pay is necessary or that the reduction needs to be permanent.
3). Whether to waive in whole of in part the actuarial reduction on benefits paid on flexible retirement R30 (8)
Employers can choose to 'waive' the reduction that would normally apply to a member's pension as a result of them taking their pension early. As the full pension would be being paid for longer, this means that we would expect to pay out more pension in the member's lifetime. This additional cost (or 'strain') would be invoiced to the employer. We are able to provide estimates of the likely cost (which may be significant)
4). Whether to Switch on the 85 year rule for a member voluntarily drawing benefits on or after age 55 and before age 60 (other than on the grounds of flexible retirement) TPSch 2 para 1 (2) & 1(1)(c)
The rule of 85 applies to some members who originally joined the LGPS before 2006. It allows members who meet the rule to retire earlier than the normal pension age, taking their pension benefits in full. However, under the LGPS2014 Regulations, certain members would lose some of the rule of 85 protections if they wished to draw their pension benefits between 55 and 59. Hence this discretion allows the protections to be re-instatement by the employer; this will have cost implications so we recommend that you ask for an estimate of costs before implementing this discretion.
5). Whether to waive an actuarial reduction for a member voluntarily drawing benefits before normal pension age other than on the grounds of flexible retirement (where the member has both pre 1 April 2014 and post 31 March 2014 membership): TP3(1), TPSch 2 para, 2(1),B30(5) & B30A(5)
Employers can choose to 'waive' the reduction that would normally apply because the member would be taking their pension early. As the full pension would be being paid for longer, this means that we would expect to pay out more pension in the member's lifetime. This additional cost (or 'strain') would be invoiced to the employer. We are able to provide estimates of the likely cost.
6). Whether to grant additional pension to a member of up to £6500 pa, (this figure is inflation proofed annually) Reg 31
Employers are allowed to purchase additional pension on a member's behalf up to a limit of providing additional pension of £6500 per annum (this figure is inflation proofed annually. The cost of providing any additional pension to the member (over their expected time as a future pensioner) will be invoiced to the employer concerned as at the time of the award. We can provide estimates of the cost of awarding additional amounts of pension. As of April 2014, this is now under the title of Additional Pension Contributions (APCs)
Discretions for members who ceased membership before 1st April 1998
7). Grant application for early payment of deferred benefits on or after the age 50 and before age 55. Regulation 31(2)
This discretion allows employees who left your employment and the pension fund before 1st April 1998 the ability to ask for the pension from age 50 which is before the normal age of 55.
8). Waive n compassionate grounds the actuarial reduction applied to deferred benefits paid early 31(5) & TPSch2 para 2 (1)
Employers can choose to 'waive' the reduction that would normally apply because the member would be taking their pension early. As the full pension would be being paid for longer, this means that we would expect to pay out more pension in the member's lifetime. This additional cost (or 'strain') would be invoiced to the employer. We are able to provide estimates of the likely cost.
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