Agenda item

Purpose: To agree a set of policies and discretions applicable to the 2014 Pension Scheme.

(Councillors Tony Linden, Andrew Rowles and Quentin Webb declared a personal interest in Agenda item 5 by virtue of the fact that they were members of the Local Government Pension Scheme. As their interest was personal and not prejudicial or a discloseable pecuniary interest they were permitted to take part in the debate and vote on the matter).

The Committee considered a report (Agenda Item 5) which proposed the Council’s policy in relation to a number of the Local Government Pension Scheme (LGPS) Regulations.

Robert O’Reilly explained that with effect from 1 April 2014, the LGPS Regulations 2013 and the LGPS (Transitional Provisions, Savings and Amendment) Regulations 2014 came into force. Under these Regulations, it was a requirement of LGPS employers to prepare, maintain and keep under review a statement of policy concerning a number of discretions made available throughout the Regulations. The report and its appendices outlined the changes required and made a number of recommendations for Member’s consideration. The recommendations took into account the views expressed by Management Board Members. Advice had also been sought from the Royal Berkshire Pension Fund.

LGPS 2013 Regulation 16 – Additional Pension Contributions

Recommendation: not to fund an employee’s additional pension contributions. Robert O’Reilly commented that funding an employee’s additional pension contributions had not previously been the Council’s practice and it was not felt that a change would be necessary.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 30(6) – Flexible Retirement

Recommendation: to accept applications where there was no cost to the employer subject to there being no detrimental impact on the service. Robert O’Reilly commented that this was a significant change to the LGPS as it enabled a LGPS employee to retire at the age of 55, with reductions to their entitlement. This was currently at the age of 60.

(Councillor Tony Linden left the meeting at 2.56pm).

Jane Milone added that, if approved, the Council’s retirement procedure would be amended to reflect this.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 30(8) – Waiving of Actuarial Reduction

Recommendation: that a decision to waive any actuarial reduction would only be considered where there would be a financial or other benefit to the employer.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 31 – Award of Additional Pension

Recommendation: not to award additional pension except in the following circumstances:

Additional pension under regulation 31 might be awarded to an employee who would otherwise be eligible for a lump sum compensation payment under the WBC Discretionary Compensation policy. Where the employee agreed to forgo the lump sum payment (in excess of any statutory redundancy compensation) that would otherwise have been paid, the Council would award additional pension actuarially equivalent in value to the lump sum compensation payment, provided that the additional annual pension would not exceed the statutory limits.

(Councillor Linden returned to the meeting at 2.59pm).

Jane Milone explained that approval of this recommendation would offer employees the opportunity to invest in their LGPS, with no additional cost to the Council. This was in line with current policy.

RESOLVED that the recommendation be agreed.

LGPS (Transitional Provisions and Savings) 2014 Schedule 2; (2) and (3) – Switching on the 85-year Rule

Recommendation: any decision to ‘switch on’ the 85-year Rule would only be considered where there would be a financial or other benefit to the employer on each occurrence as it arose subject to the financial implications.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 9(1) (3) - Contributions

Recommendation: to set employee contribution rates at 1 April each year and make no changes throughout the year. Robert O’Reilly pointed out that differing ranges of contribution were in place. Sean Anderson added that employees had the right to appeal the decisions made. This would be determined by the Section 151 Officer and, if necessary, by the Local Government Ombudsman.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 17(1) – Shared Costs Additional Voluntary Contributions

Recommendation: not to apply this discretion.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 22(7) 22(8) – Merging of Deferred Member Pension Accounts with Active Member Pension Account

Recommendation: to allow an active member to elect not to aggregate a deferred member’s pension account to an active member’s pension account beyond the 12 month deadline only where there was no financial risk to the employer and it was of benefit to the member.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 100(6) – Inward Transfers of Pension Rights

Recommendation: to not extend the 12 month deadline.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 21(5) – Assumed Pensionable Pay

Recommendation: each case would be examined at the appropriate time. Robert O’Reilly explained that this related to ‘regular lump sum payments’ and contribution rates would apply.

RESOLVED that the recommendation be agreed.

LGPS 2013 Regulation 74 – Applications for Adjudication of Disagreements

Recommendation: the Council appoint Andy Walker (Section 151 Officer) as the Adjudicator for this purpose. Jane Milone advised that it was a recommendation of the LGPS to name the responsible individual.

RESOLVED that the recommendation be agreed.