Policy, Resources & Communications

(Determination of Pension Contributions – Regulation 9(2) & 9(3) & 9(4) & A55 (9) of the LGPS regulations 2013)

You will pay between 5.5% and 12.5% of your actual pay which may include             overtime. The rate you pay depends on the band you fall into.

Assessment of pay bandings normally takes place on an annual basis each April.

Your pension contributions will however be reassessed during the course of the year  if you have a change in employment, or where a material change which affects your pensionable pay takes place.

If your contribution rate changes as a result, your contributions will be adjusted at   the point at which the change occurs.

The decision regarding the timing of the review of the bandings will be reviewed fromtime to time.

You can find out how much you need to pay by using the LGPS contribution             calculator by following the link below;

Your contributions :: LGPS

The Parish Council will consider an extension on a case by case basis if it is clear that you were unable to meet the normal time period due to circumstances beyond your control.

Any element of pay that is being paid to you and complies with the definitions as described in the LGPS 2013 Regulations listed above including non-contractual overtime will be regarded as pensionable.

Certain payments such as travel and subsistence expenses and pay in lieu of             notice are excluded from this.

Only sums that are liable for income tax may be specified as pensionable

We will calculate what your pay would have been for the period when you were on reduced contractual pay or no pay.

The assumed pensionable pay is calculated as the average of the pensionable pay you received for the 3 months before the pay period in which you went on to             reduced pay or no pay. This figure is then grossed up to an annual figure and then divided by the period of time you were on reduced pay or no pay.

If you received a lump sum payment which was pensionable within the 3-month period mentioned above, the Parish Council will decide whether or not this should be included in the assessment of your assumed pensionable pay.

Each case will be assessed on its merits to ensure that your assumed pensionable pay for the period concerned is not more than you would have received had you   not had a period of absence.

The Parish Council will consider an extension to the time limit on a case by case basis if it is clear that you were unable to meet the normal time period due to circumstances beyond your control.

The Parish Council will consider an extension on a case by case basis if it is clear that you were unable to meet the normal time period due to circumstances beyond your  control.

The scheme provider for Hassocks Parish Council is Standard Life via West             Sussex County Council. AVCs are deducted directly from your pay and attract tax relief.

The Parish Council does not intend to exercise this discretion.

The LGPS operates an APC scheme where you can purchase extra pension for your retirement (but the Parish Council will not share the cost of this). If you are in the main section of the scheme, you can pay more in contributions to purchase up   to £6,675 of extra pension.

Any extra pension you purchase is payable each year in retirement and is payable on top of your normal LGPS benefits.

Any extra regular contributions are taken from your pay, which you will receive tax relief on.

You can also pay APCs by a one-off lump sum.

For more information regarding APC’s, including an online calculator please see   the link below.

Paying more :: LGPS

(Local Government (Discretionary Payments) (Injury Allowances) Regulations, Regulation 3 (Reduction in Remuneration), 4 (Loss of employment through             permanent incapacity), 6 (Allowances for pensioners), 7 (Death benefits) and 8 (Considerations in determining amount of allowances) 2011)

Each case will be looked at on a case by case basis. You do not have to be a             member of the LGPS to receive the allowance.

The Parish Council does not intend to exercise the above discretion in the event   you die as a result of an injury or disease sustained during employment.

However, if you die in service and are a member of the Local Government Pension Scheme, the LGPS ensures that your family is supported. It provides:

• a lump sum death grant of three years pay, no matter how long you have been a member of the LGPS, provided you are under 75 at the date of death. For part-    time employees, it is three times your actual part-time pay;

• an ongoing pension for your husband, wife, civil partner or nominated co- habiting partner. This increases every year in line with the cost of living and is payable for the  rest of their life; and

• children’s pensions for your eligible children. These increase every year in line with the cost of living.

If you sustain a bodily injury during the course of your work which results in death, an amount of money or benefit may be payable to you under the Hassocks Parish Council Personal Accident Insurance.

(Contribution Equivalent Premium (CEP) in excess of the Certified Amount (CA) recovered from a refund of contributions can be recovered from the Pension Fund – Regulation 92 of the LGPS Regulations 1997 and Regulation

A49(1) & (2) of the Administration Regulations 2007)

This is due to you paying a lower rate of tax and National Insurance contributions whilst paying into the LGPS.

Partial/flexible retirement lets you continue working reduced hours, or reduced grade   basis and, depending on when your membership of the LGPS commenced, draw all, part or none of your accrued pension benefits subject to certain qualifying criteria.

To be eligible to make a request for Flexible Retirement under the LGPS     regulations, you must:

• Be actively making contributions to the LGPS.

• Be aged 55 or over.

• Have two years or more membership in the local government pension scheme.

• Be taking at least a 20% reduction in your hours and/or your salary.

Flexible Retirement will have a cost attached to it and a business case must be made  setting out the reason for supporting the flexible retirement

(Whether to ‘switch on’ the 85 Year Rule for a member voluntarily drawing benefits on or after age 55 and before age 60- Schedule 2, para 2(2) of the (Transitional Provisions and Savings) Regulations 2014) and Whether to waive, on             compassionate grounds, the actuarial reduction applied to benefits pre 1st April    2014 membership where the employer has ‘switched-on’ the 85 Year Rule –      Schedule 2, para 2(3).

As the Parish Council would have to meet the cost of ‘switching on’ the 85 year rule if you chose to retire between age 55 and 60, it will only consider doing so if there are exceptional or compassionate grounds for doing so.

If the Parish Council chooses to switch on the 85 year rule in your case it then has the discretion on compassionate grounds (as defined in the new regulations) to waive the pre 1st April 2014 reduction.

Any strain to the Fund will be payable immediately to the  Scheme employer (WSCC)

Where this is the case, it would be subject to the approval of the Parish Council. Any costs incurred will be paid for by the Parish Council.

Waiving of actuarial reductions Regulation 30(8), TP3(1), TPSch 2, para 2(1), B30(5) and  B30A(5) Whether to waive, in whole or in part, any actuarial reductions on benefits which a member voluntarily draws before normal pension age (other than on the grounds of flexible retirement).

Employers can agree to waive any actuarial reductions due in the case of employees retiring any time after age 55. For active members voluntarily retiring on or after age 55 and before Normal Pension Age (NPA), who elect under regulation 30(5) of the LGPS Regulations 2013 to immediately draw benefits, and for deferred members and suspended tier 3 ill-health pensioners who elect under regulation 30(5) of the LGPS Regulations 2013 to draw benefits (other than on ill health grounds) on or after age 55 and before NPA.

There are 4 member groups which you would be making the discretions policy on, the below covers in what circumstance reductions can be waived and to which benefits these would apply:

 Group 1 – Members joined before 1 October 2006 and who reached 60 before 1 April 2016 • To waive on compassionate grounds, any actuarial reductions applied to benefits built up before 1 April 2016, and/or • To waive, in whole or in part, on any grounds, actuarial reductions applied to benefits built up after 31 March 2016

Group 2 – Members joined before 1 October 2006 and who reach age 60 between 1 April 2016 and 31 March 2020 and also meet their critical retirement age before 1 April 2020 (date member meets the 85 year rule) • To waive on compassionate grounds, any actuarial reductions applied to benefits built up before 1 April 2020, and/or • To waive in whole or in part on any grounds, actuarial reductions applied to benefits built up after 31 March 2020

Group 3 – Members joined before 1 October 2006 and who reach age 60 after 31 March 2020 (or who would reach age 60 between 1 April 2016 and 31 March 2020 and don’t meet their critical retirement age before 1 April 2020 (date member meets the 85 year rule) • To waive on compassionate grounds, any actuarial reductions applied to benefits built up before 1 April 2014, and/or • To waive, in whole or in part on any grounds, actuarial reductions applied to benefits built up after 31^st March 2014.

Group 4 – Members joined after 1 October 2006 • To waive on compassionate grounds, any actuarial reductions applied to benefits built up before 1 April 2014, and/or • To waive, in whole or in part on any grounds, actuarial reductions applied to benefits built up after 31 March 2014 Employers should also note that the strain cost of any such retirements would need to be met by the employer and paid into the Pension Fund at the appropriate time.

Hassocks Parish Council will only exercise this discretion in exceptional circumstances and with express permission of Full Council after consideration of the financial implications of that decision. It should be noted that the strain cost of any such retirements would need to be met by the Parish Council and paid into the Pension fund at the appropriate time.

Regulation 5, 6 – Discretion under the local Government (Early Termination of Employment) (Discretionary Payments) (England & Wales) Regulations 2006

If you are aged below 55 when you are made redundant, you cannot receive the immediate payment of your LGPS benefits.

They will instead be deferred and will be increased annually in line with the cost of living increase and will become payable from your scheme’s normal retirement age (State Retirement Age with a minimum age of 65).

Regulation 6 – Discretion under the Local Government (Early Termination of Employment) (Discretionary Payments) (England and Wales) Regulations 2006

(Final pay period to be used where a member’s pay consists of fees Regulation 22(1)(b) of the LGPS Regulations 1997 and Regulation B11 (2) of the Benefit             Regulations 2007 and Regulation 3(6), 4(6)(c), 8(4), 10(2)(a) and 17(2)(b) of the (Transitional Provisions and Savings) Regulations 2014. 

The Parish Council will consider, on a case by case basis, final pay being calculated as the average of all such fees for any three consecutive years ending 31st March within the period of ten years ending with the last day you were an active member.

(Issue a certificate of protection of pension benefits where eligible non-councillor member fails to apply for one (drop in pay/restrictions occurring pre 1^st April 2008 – Regulation 23(4) of the LGPS 1997 Regulations)

Your final year’s pay when you leave the LGPS will still be used to work out your benefits. This means that any future pay increases will be included in the final pay used to work out these benefits.

(Whether to grant additional pension to an active member or within 6 months of ceasing to be an active member by reason of redundancy or business efficiency – Regulation 31 of the LGPS Regulations 2013)

• The Parish Council can choose to award you an additional pension up to the value of  £6,675.

To help us decide this we need to obtain a certificate from an independent registered medical practitioner who will assess whether “as a result of “ill health or infirmity of mind or body”, you are permanently incapable of “discharging efficiently the duties of the employment you were engaged in” and, if so, whether you are not “as a result of ill health or infirmity of mind or body”, immediately capable of undertaking any “gainful employment” (see definition below).

The LGPS has 3 tiers of ill-health provision.

• Tier 1: If you are unlikely to be capable of undertaking gainful employment before your Normal Pension Age. (State Retirement Age with a minimum age of 65)

• Tier 2: A) If you are not entitled to Tier 1 benefits.

B) are unlikely to be capable of undertaking any gainful employment within three years of leaving your employment;

but c) are likely to be able to undertake gainful employment before reaching Normal Pension Age.

• Tier 3: If you are likely to be capable of undertaking gainful employment within three years of leaving their employment, or before Normal Pension Age.

The following discretions relate to the LGPS ill-health provisions.

(Determine whether a person in receipt of a Tier 3 ill health pension has started gainful employment – Regulation 37(3) & (4) of the LGPS Regulations 2013 and Recovery of payments following commencement of gainful employment – Regulation 37(3) of the LGPS Regulations 2013)

You must inform the Parish Council immediately if you obtain ‘gainful employment’ at any time between your tier 3 ill health pension award commencing and the expiry of the three years.

For the purposes of a tier 3 award, “gainful employment” is considered to be paid employment for at least 30 hours each week for a contract period of at least 12 months.

As part of a review of a tier 3 ill health award, the Parish Council may cease payment of the award from the date you gain obtained gainful employment, or were considered by an independent medical adviser as capable of undertaking gainful employment.

Additionally, if you are still receiving your tier 3 ill health pension after you have obtained gainful employment, or where a medical advisor has determined you as capable of undertaking gainful employment, the Parish Council will seek to recover any overpayment made to you.

undertaking gainful employment before normal pension age because of ill health – Regulation 38(3) of the LGPS Regulations 2013)

(Whether to grant pre 1 April 1998 leavers early payment of their deferred benefits on or after age 50 on compassionate grounds – Regulation D11(2)(C) of the LGPS Regulations 1995) and Regulation 31(2) of the LGPS Regulations 1997 and             (Whether to grant application for early payment of deferred benefits on or after age 55 and before age 60 – Regulation 30(2) & (5) of the Benefit Regulations 2007 and 30(8) of the LGPS Regulations 2013) 

You can choose to take early payment of your deferred benefits from age 55             without your former employer’s consent. However, you must be aware that your benefits will normally be reduced to take into account early payment.

Taking your pension :: LGPS

(Decide whether a deferred beneficiary meets permanent ill health and reduced likelihood of gainful employment criteria – Regulation 31(4) of the Benefits             Regulations 2007 and 38(3) of the LGPS Regulations 2013)

To help him/her make this decision he/she has to obtain a certificate from an independent registered medical practitioner to determine:

• Whether you are suffering from a condition that renders you “permanently             incapable of discharging efficiently the duties of their former employment because of ill-health or infirmity of mind or body “and, if so

• Whether as a result of that condition you are “unlikely to be capable of undertaking             any gainful employment “before reaching normal pension age, or for at least three             years, whichever is the sooner.

(Decide procedure to be followed by adjudicator when exercising stage one IDRP functions – Regulation 74(4) of the LGPS Regulations 2013) (Whether to extend   six – month period to lodge stage on IDRP appeal – Regulation 74(6) of the LGPS Regulations 2013)

(Payment of a refund of contributions in misconduct cases and Forfeiture of             pension rights as a result of offences or misconduct – Regulation 88(2), 111(2) & (5), 112(1), 113(2), 115(2) & (3) of the LGPS 1997 Regulations and Regulation             A47(2), A72(1) (3), A73(1) (2), A74(2), A76 (2) (3) of the Administrations   Regulations 2008 and – Regulation 19(2), 91(1) (4) (8), 92(1) (2), 93(2), 95 of the LGPS 2013 Regulations)

There is no automatic entitlement to a refund on your pension contributions, if you leave your employment with less than 3 month’s scheme membership, as a result of a fraudulent offence or grave misconduct and the Parish Council would seek to withhold any such amount where considered appropriate.

Each case will be referred to the Chairman of the Parish Council for consideration.

(Reduction of annual compensation on re-employment “abatement”-Regulation 17 Early Terminations of Employment (Discretionary Compensation) Regulations      2000)

This is to make sure that you are not receiving any more than the value of pay you would have received when you left your former employment.

(Reduction of added years due to re-employment -Regulation 19 Early Terminations of Employment (Discretionary Compensation) Regulations 2000)

(Joint entitlement to spouse’s compensation (polygamous marriages). Regulation 21(4) Early Termination of Employment (Discretionary Compensation) Regulations 2000.

Suspension of spouse’s compensation during a period of remarriage or     Cohabitation. Regulation 21(5) & (7) Early Termination of Employment (Discretionary Compensation) Regulations 2000.

(Payment and apportionment of children’s compensation -Regulation 25(2) Early Termination of Employment (Discretionary Compensation) Regulations 2000.)