Decision details

Consideration was given to a report of the Head of Human Resources and Organisational Development on two additional Local Government Pensions Discretions.

As a result of the Local Government Pension Scheme (Miscellaneous) Regulations 2012, which came into force on 1 October 2012, employers were now required to incorporate two additional discretions into their published policy by 31 March 2013.

The first discretion related to the whether to release benefits early to employees who left local government with an entitlement to a Tier 3 ill health pension which had since come to an end.  Employees in such circumstances cannot currently access their pensions before the age of 60, leaving a period where they would not receive a pension.  The new discretion enabled employees in these circumstances to apply for payment of the deferred pension between the age of 55 and 60 (under Regulation 30 of the Local Government Pension Scheme) on compassionate grounds.

The second discretion related to where suspended (deferred) pensions benefits were released in the above circumstances and whether or not to waive (on the grounds of compassion) any reductions that would otherwise apply to the member’s pension and lump sum.

RESOLVED:

1          That the discretion to provide for the early release of pension to a former employee who has a suspended Tier 3 ill health pension, on or after 55 and before the age of 60, where such release on compassionate grounds can be satisfied, be adopted.

2          That the discretion to waive, on compassionate grounds, the actuarial reductions applied to the release of pension benefits paid early under regulation 30 not be adopted.