Employer Discretions Policy (LGPS)

This page sets out Loughborough University's decision on the operation of each of the mandatory discretions (and optional discretions where chosen) available under the LGPS Regulations. It states whether or not discretions will be operated and the circumstances and criteria for applying them.

Discretion 1: Whether, how much, and in what circumstances to contribute to a shared cost APC scheme

University Decision: The University will wish to adopt this discretion only in exceptional cases as determined by the Director of HR and Chief Operating Officer. 

Membership Category: Actives and Post 14 Leavers

Regulation Reference: R16(2) (e) & R16 (4)(d)

 

Discretion 2: Whether, at full cost to the Scheme employer, to grant extra annual pension, up to the LGPS additional pension limit (reviewed annually), to an active member or within 6 months of leaving to a member whose employment was terminated on the grounds of redundancy or business efficiency.

University Decision: The University will not normally agree to award an additional pension under this regulation.

Membership Category: Actives and Post 14 Leavers

Regulation Reference: R31

Discretion 3: Whether to waive, in whole or in part, actuarial reduction on benefits which a member voluntarily draws before normal pension age.

University Decision: The University will not apply discretion, unless there are exceptional circumstances. The Director of HR and Chief Operating Officer consider any cases and will decide whether the actuarial reductions should be waived. In all cases the financial position of the University must be considered. 

Membership Category: Actives and Post 14 Leavers

Regulation Reference: R30(8)

 

Discretion 4: Whether to waive, in whole or in part, actuarial reductions on benefits paid on flexible retirement. 

University Decision: The University has agreed to release pension where there is no cost and not to waive any reduction. Members must reduce their hours by a minimum of 20% and/or reduce their grade. The University may however, allow the release of pension where there is a cost or waiver reduction in a potential redundancy situation, where a reduction may occur through redeployment, or in other exceptional circumstances supported by a business case.

Membership Category: Actives and Post 14 Leavers

Regulation Reference: R30 (8)

 

Discretion 5: Whether to waive any actuarial reduction on pre and/or post April 2014 benefits paid early on compassionate grounds.

University Decision: The University will not apply this discretion, unless there are exceptional circumstances. The Director of HR and Chief Operating Officer consider any cases and will decide whether the actuarial reductions should be waived. In all cases the financial position of the University must be considered.

Membership Category: Actives and Post 14 Leavers

Regulation Reference: TP3(1). TPSch 2, paras 2(1)

 

Discretion 6: Whether to waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early.

University Decision: The University will not apply this discretion, unless there are exceptional circumstances. The Director of HR and Chief Operating Officer consider any cases and will decide whether the actuarial reductions should be waived. In all cases the financial position of the University must be considered.

Membership Category: Leavers between 2008 and 2014

Regulation Reference: B30(5), TPSch 2, para 2(1)

 

Discretion 7: Waive, on compassionate grounds, the actuarial reduction applied to deferred benefits paid early.

University Decision: The University will not apply this discretion, unless there are exceptional circumstances. The Director of HR and Chief Operating Officer consider any cases and will decide whether the actuarial reductions should be waived. In all cases the financial position of the University must be considered. 

Membership Category: Leavers between 1998 and 2008 plus Councillors

Regulation Reference: 31(5) & TPSch 2, para 2(1)

Discretion 8: Whether to "switch on" the 85 year rule for a member voluntarily drawing benefits on or after age 55 and before age 60.

University Decision: The University will not apply either discretion, unless there is a business case to support this as an alternative to a redundancy situation. 

Membership Category: Actives and Post 14 Leavers

Regulation Reference: TPSch 2, paras 1(2) and 2(2)

 

Discretion 9: Whether to "switch on" the 85 year rule for a deferred member voluntarily drawing benefits on or after age 55 and before age 60.

University Decision: The University will not apply this discretion.

Membership Category: Leavers between 2008 and 2014

Regulation Reference: TPSch 2, paras1(2) and 1(1)(c)

 

Discretion 10: Whether to "switch on" the 85 year rule for a deferred member voluntarily drawing benefits on or after age 55 and before age 60.

University Decision: The University will not apply this discretion.

Membership Category: Leavers between 1998 and 2008 plus Councillors

Discretion 11: Whether all or some benefits can be paid if an employee over 55 reduces their hours or grade (flexible retirement) .

University Decision: The University has agreed to release pension where there is no cost and not to waive any reduction. Members must reduce their hours by a minimum of 20% and/or reduce their grade. The University may however allow the release of pension, where there is a cost or waive reduction in a potential redundancy situation, where reduction may occur through redeployment, or in other exceptional circumstances supported by a business case. 

Membership Category: Actives & Post 14 Leavers

Regulation Reference: R30(6) & TP11(2)

Discretion 12: Whether to extend the 12 month limit a member has in which to elect to transfer other pension rights into the LGPS. This must be with the agreement of the Administering Authority. 

University Decision: The University has not adopted this discretion.

Membership Category: Active Members

Regulation Reference: R100(6)

 

Discretion 13: Whether to extend the 12 month limit a member has in which to elect not to aggregate their deferred benefits with their new LGPS employment. 

University Decision: The University will not normally extend this 12 month time limit. Extentuating circumstances may apply and this would include:

  • Where evidence exists that an election was made within 12 months but this was not received by the administering authority.
  • Where evidence exists that the member was not aware of the 12 month limit due to maladministration. 

Membership Category: Active Members

Regulation Reference: R22(7) and (8)

 

Discretion 14: Whether to determine which contribution band is allocated on joining the scheme and at each April. It also determines the circumstances when an employee's band may be reviewed. 

University Decision: The University will base pay on actual pay in April plus previous years overtime. Run an exercise half yearly as a check and re-band up or down where necessary. Re-band all contractual changes, but not ad hoc hours changes and re-band upon a pay award. 

Membership Category: Active Members

Regulation Reference: R9