Introduction
This Policy sets out how Perranzabuloe Parish Council (PPC) will exercise its discretionary functions under the Local Government Pension Scheme (LGPS), administered by Cornwall Council Pension Fund. It lists the discretions for which a written policy is required and confirms PPC will ensure the policy is workable, affordable and reasonable, having regard to foreseeable costs and public confidence.
Legal Framework
All LGPS employers must formulate a discretions policy in accordance with Regulation 66 of the Local Government Pension Scheme (Administration) Regulations 2008 and Regulation 60 of the Local Government Pension Scheme Regulations 2013.
Policy Decisions
1. Reg 16(2)(e) & Reg 16(4)(d) — Shared Cost Additional Pension (SCAPC)
Discretion: Employer may pay for or contribute towards a member’s Additional Pension Contract via a SCAPC (note: this discretion applies when the member is working as normal; different rules apply during authorised unpaid absence).
PPC policy: Considered only in exceptional circumstances and only with the express permission of PPC after considering costs.
2. Reg 17(1) — Shared Cost Additional Voluntary Contributions (AVC)
Discretion: Employer may contribute towards a member’s AVC arrangement (pre-/post-1 April 2014).
PPC policy: Considered only in exceptional circumstances with PPC’s express permission after cost review. PPC’s general policy is not to contribute to an employee’s AVC.
3. Reg 30(5) — Early Retirement on Compassionate Grounds
Discretion: Permit early payment of benefits on compassionate grounds (typically for leavers/opt-outs prior to April 2014 but can also apply to current employees).
PPC policy: Considered only in exceptional circumstances with PPC’s express permission after cost review.
4. Reg 30(6) — Flexible Retirement
Discretion: From age 55, allow a member to draw all/part of accrued benefits while continuing in employment (subject to reduced hours or lower grade). Reductions apply unless waived on compassionate grounds or protected.
PPC policy: Requests considered case-by-case (e.g., service delivery). PPC decides whether to agree to flexible retirement.
5. Reg 30(8) — Waiving of Actuarial Reduction
Discretion: Employer may waive, on compassionate grounds, the actuarial reduction (in whole or part) on flexible retirements, deferred members, suspended tier 3 ill-health pensioners (age ≥60 <NPA), and active members choosing to draw benefits age 55–59.
PPC policy: Waiver only in exceptional circumstances with PPC approval.
6. Reg 31 — Power to Grant Additional Pension
Discretion: Grant additional pension to an active member or within 6 months of leaving due to redundancy/efficiency (up to £6,822 p.a., index-linked each April).
PPC policy: Only in exceptional circumstances and only with PPC’s express permission after considering costs.
7. Regs 22(7)(b) & 8(b) — Extend 12-Month Option to Keep Benefits Separate
Discretion: Extend the 12-month period for a member to elect that deferred benefits are not aggregated with new employment.
PPC policy: No extension beyond 12 months to separate previous Cornwall Pension Fund benefits.
8. Reg 9(3) — Determine Rate of Employees’ Contributions
Discretion: Set/adjust contribution banding.
PPC policy: Bands reviewed when there is a contractual change to salary or hours during the year. One-off additional payments (e.g., honorariums) do not trigger a review.
9. Reg 100(6) — Extend 12-Month Period to Transfer-In Non-LGPS Rights
Discretion: Allow transfer-in beyond 12 months.
PPC policy: No extension beyond 12 months for transfers into the Cornwall Pension Fund.
10. TP paras 2(2) & 2(3) — “Switch On” the 85-Year Rule
Discretion: Permit the 85-year rule (and/or waive reduction on compassionate grounds) for members voluntarily retiring age 55–59.
PPC policy: Considered only in exceptional circumstances and only with PPC’s express permission after considering costs.
Abbreviations
“Reg 16(2)(e)” means Regulation 16(2)(e) of the Local Government Regulations 2013 (applying from 1 April 2014).
Notes to the Policy
1. Shared Cost APC
PPC will only extend the 30-day deadline, in exceptional circumstances, for a member to elect for a shared cost APC upon return from a period of unpaid absence.
2. Internal Dispute Resolution Procedure (IDRP)
Cornwall Council LGPS operates an IDRP for complaints about decisions made under this policy. The Stage 1 Appeal Officer will be the Responsible Financial Officer (RFO) or, in the RFO’s case, the Chair of the Council.
3. Policy Implementation
This policy confers no contractual rights and may be changed at any time. The version current at the time of a relevant event will apply. Within one month of any revision, PPC will send the revised statement to each relevant administering authority and will publish the revised policy.
Cornwall Pension Fund
Adopted 23 October 2023