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Nilgosc


Employer Discretions – Policy Statement

Employers are required by legislation to formulate, publish and review a written policy statement in relation to discretions under both the LGPS (NI) Scheme and the Compensation Regulations.

The LGPS (NI) regulations require employers to send a copy of its statement to NILGOSC within four months of joining the Scheme or within one month of making any revisions.  An employer is required to have regard to the extent to which the exercise of any of the discretions could lead to a serious loss of confidence in the public service.

The Compensatory regulations also require that policy is formulated, published and reviewed and as well as having regard to the extent to which the exercise of any of the discretions could lead to a serious loss of confidence in the public service they must also be satisfied that the policy is workable, affordable and reasonable having regard to the foreseeable costs.

Published discretions required under the Local Government Pension Scheme Regulations (Northern Ireland) 2014 (SRNI. 2014 No. 188)

  • Whether, how much, and in what circumstances to contribute to a shared cost APC scheme (regulation 18(2)(e) and 18(4)(d), Local Government Pension Scheme Regulations (NI) 2014 (SRNI 2014 No. 188))
  • Whether all or some benefits can be paid if an employee reduces their hours or grade (flexible retirement) (regulation 31(6), Local Government Pension Scheme Regulations (NI) 2014 (SRNI 2014 No. 188))
  • Whether to waive, in whole or in part, actuarial reductions on benefits paid on flexible retirement (regulation 31(8), Local Government Pension Scheme Regulations (NI) 2014 (SRNI 2014 No. 188))
  • Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age (regulation 31(8), Local Government Pension Scheme Regulations (NI) 2014 (SRNI 2014 No. 188))
  • Whether to “switch on” the 85 Year Rule for a member voluntarily drawing benefits on or after age 55 and before age 60 (Schedule 3, regulation 1(3), Local Government Pension Scheme Transitional Regulations (NI) 2014 (SRNI 2014 No. 188))
  • Whether to waive, on compassionate grounds, the actuarial reduction applied to benefits (pre-15/pre-16/pre-20 according to “Group” member status) where the employer has “switched-on” the 85 Year Rule for a member voluntarily drawing benefits on or after age 55 and before age 60 (Schedule 3, regulation 2(1), Local Government Pension Scheme Transitional Regulations (NI) 2014 (SRNI 2014 No. 188))
  • 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 £6,644 p.a. (2017/18 figure)) (regulation 32, Local Government Pension Scheme Regulations (NI) 2014 (SRNI 2014 No. 188))

Discretions under the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations (Northern Ireland) 2007 (SRNI. 2007 No. 93)

  •  Regulation 4, Power to increase statutory redundancy payments
  •  Regulation 5, Discretionary Compensation

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