Issue - meetings

To consider the report of the Human Resources Business Manager.

Scrutiny Committee – Resources considered the report at its meeting on 2 July 2014 and its comments will be reported.

The report of the Human Resources Business Manager was submitted, which sets out to agree the Local Government Pension Scheme (LGPS) employer discretions which the Council was required to publish.  It dealt with the inclusion of new discretions in respect of changes to the LGPS which, had come into effect on 1 April 2014, and provided for a review of existing discretions.

The Human Resources Business Manager reported that, in light of comments made at Scrutiny Committee - Resources on 2 July 2014 access to deferred LGPS members aged 55 to 59 to their actuarially reduced pension benefits should not be restricted as a result of dismissal from employment. Members were also advised that the template provided by Peninsula Pensions had omitted one of the required employer discretions. As a result, there was a proposed amendment to the recommendation to Council to reflect these proposed changes. Members were circulated with details of the amendments.

The Leader commented that to improve accountability any decision taken when discretion would apply should be made in consultation with the Leader of the Council.

A Member raised concerns that that any decision relating to discretion should be carefully considered.

The Leader requested that Devon County Council should be asked to attend a Members Briefing to advice Councillors on the position with regards to pensions and any consequences of discretionary payments.

RECOMMENDED to Council:-

(1)          to approve and publish the Employer Discretions Policies contained in Appendices A and B attached to this report in accordance with the requirements of the LGPS Regulations and subject to the following changes:-

·                      changing Appendix B discretion B30(2) to read as follows: “This discretion will be used where there is no cost to the Council (or the application is made under and meets the grounds for waiving the actuarial reduction - see discretion B30(5))”; and

·                      inclusion of the discretions in relation to Shared Cost Additional Voluntary Contribution Arrangement (Regulation R17(1) & TP15(1)(d) & A25(3)) in Appendix A in line with the principles outlined in the report, with the discretion being “The Council does not apply these discretions.”

(2)          that any decision to be taken when discretion would apply should be made in consultation with the Leader of the Council and the Constitution be amended accordingly.

To consider the report of the HR Business Manager.

The Human Resources Business Manager presented the report and set out the Local Government Pension Scheme employer discretions which the Council was required to publish.  It dealt with the inclusion of new discretions in respect of changes to the LGPS which came into effect on 1 April 2014, as well as providing for a review of existing discretions, which were set out in the report.

A Member referred to Regulations B 30 (2) in Appendix B of the report and expressed the view that the reference to exclude the deferred member who had been dismissed from employment should be removed from the discretion. A Member suggested that in certain cases it was better to discharge the pension benefits rather than take a moral stand. A Member also referred to consideration of the Human Rights Act.

Scrutiny Committee - Resources noted and recommended approval by Council the publication of the Employer Discretions Policies contained in Appendices A and B (with the exception of Regulation B30 (2)) circulated with the report in accordance with the requirements of the Local Government Pension Scheme Regulations.