Circumstances when we may waive certain pensions restrictions.
In certain circumstances we may apply pension discretions where normal pensions provisions are superseded by other council policies.
Our policy on pension discretions is in accordance with:
- The Local Government Pension Scheme (Administration) (Scotland) Regulations 2008 (as amended) (Prefix A below)
- The Local Government Pension Scheme (Benefits, Membership and Contributions) (Scotland) Regulations 2008 (as amended) (Prefix B below)
- The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998 (as amended) (Prefix D below)
Details of the pension discretions applicable can be found in the tables below.
| Regulation | Discretion | Employer’s Policy on the exercise of this discretion |
|---|---|---|
| A19(2) | Whether to allow a late application by the member to pay optional contributions for a period of unpaid child related leave, strike or unpaid leave of absence beyond 30 days. | We will not allow late application by a member to pay optional contributions for a period of unpaid child related leave, strike or unpaid leave of absence beyond 30 days. |
| B12 | Whether to augment membership of an active member (by up to 10 years) | We will not augment membership of an active member by up to 10 years. |
| B13 | Whether to grant additional pension to a member (by up to £5,000 p.a.) | We will not grant additional pension to a member (by up to £5,000p.a.) |
| A78(8) | Extend normal time limit for acceptance of a transfer value beyond the 12 month time limit from joining the LGPS | We will not extend the normal time limit for acceptance of a transfer value beyond 12 months from joining the scheme. |
| B18(2) | Whether all or some benefits can be paid if an employee reduces their hours or grade prior to age 60 (flexible retirement) | We will not exercise this discretion and will review the position after a period of 12 months. |
| B18(4) | Whether to waive, in whole or in part, any actuarial reduction on benefits paid on flexible retirement. ( Any resultant strain cost from the exercise of this discretion will be charged to the employer regardless of the member’s age at date of retirement) | We will not exercise this discretion and will review the position after a period of 12 months. |
| B30(2) | Whether to grant application for early payment of benefits on or after age 50/55 and before age 60 | We will not have a general policy of granting early payment of benefits on or after age 50/55 and before age 60 but will consider requests on a case by case basis.We will exercise this discretion to employees based on a sound business case or on compassionate grounds.We will exercise this discretion to former employees on compassionate grounds alone. |
| B30(5) | Whether to waive, on compassionate grounds, the actuarial reduction on benefits paid early (Any resultant strain costs due to the exercise of this discretion will be charged to the employer regardless of the employee’s age) | We will not generally waive the actuarial reduction applied to benefits paid early under regulation B30(2) above.We may consider waiving the actuarial reduction on compassionate grounds.Each case will be considered on its individual merits and what constitutes compassionate grounds may vary in each case.Financial hardship of itself will not be considered as compassionate grounds. |
Discretionary Payments and Injury benefits regulations discretions below are only available to Scheduled bodies and those admitted bodies where the admission agreement permits such awards and the admitted body is adopting those provisions.
| Regulation | Discretion | Employer’s Policy on the exercise of this discretion |
|---|---|---|
| D 4(1) | Power to increase statutory redundancy payments above statutory weekly pay limit | We will increase statutory redundancy payments above the statutory weekly pay limit and base these on the amount of the full weekly pay. |
| D 8(1) | Decision on whether to award compensatory added years to an individual on retirement on efficiency / redundancy Grounds | We will award compensatory added years to either a maximum of 6 2/3 or 10 years, depending on the individual’s age and length of pensionable service. |
| D 35 | Decision to award up to 104 weeks compensation instead of compensatory added years | We will not exercise the discretion to award up to 104 weeks instead of compensatory added years.We will award up to a maximum of 66 weeks compensation instead of compensatory added years. |