Issue - meetings

Local Government Pension Scheme: London Borough of Havering Employer Discretions Statement of Policy and discretion decisions

Meeting: 14/06/2016 - Pensions Committee (Item 4)

4 Local Government Pension Scheme: London Borough of Havering Employer Discretions Statement of Policy and discretion decisions pdf icon PDF 149 KB

Report to follow.

 

Additional documents:

Minutes:

In accordance with the Local Government Pension Scheme Regulations (LGPS) 2013 and the Local Government Pension Scheme (Transitional Provisions and Savings) Regulations 2014, Scheme employers participating in the LGPS in England and Wales were required to formulate, publish and keep under review a Statement of Policy on certain discretions which they had the power to exercise in relation to members of the scheme.

 

On 24 June 2014 the Committee had delegated to the group Director of Resources, the Director of Human Resources and Organisational Development, and the Council’s Monitoring Officer, acting jointly, the setting of the discretion decisions and Policy Statement. Following the setting of the discretion decisions and Policy Statement,  the final discretions and Policy Statement had been brought back to Committee for information.

 

As a result of the Local Government Pension Scheme (Amendment) Regulations 2015/755 introduced in 2015, and changes to the Oracle Payroll system, certain Employer discretions had been reviewed, and the Policy Statement updated accordingly.

 

The Committee expressed concern with regard to the discretions under the Local Government (early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006, specifically number 6 (Award of lump sum compensation).  The Regulations allow the award of lump sum compensation payments of up to 104 weeks pay within six months of the termination date and where no additional benefits had been awarded under the LGPS.  The Discretion Application stated that ‘The Council does not apply this discretion.’

 

The concern was that this decision fettered the Council’s powers, and therefore was not legal. The Committee have asked officers to refer the matter back to legal services to review this discretion.

 

Subject to the above the Committee have noted the revised Employing Authority Discretions and Administration Authority Discretions – and the Statement of Policy.