Archived decisions

Pension policy statement for non-teaching employees Appendix

"Your Pension - An Employee's Guide" explains that your employer can exercise certain discretions under the Local Government Pension Scheme (LGPS). In addition, if you are made redundant or retired in the interests of the efficient exercise of your employer's functions - known as early retirement - your employer can compensate you under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations. From1 October 2006 the County Council will exercise these discretionary powers as set out below, and inform you if it alters them in future :

· it will consent to immediate payment of benefits to an employee who requests this and retires voluntarily between age 50 and 60, provided the relevant Chief Officer, the Director of Human Resources and the County Treasurer agree that it is in the Council's interests to do so, and having regard to the Pension Fund charge for paying benefits early being affordable in each case.

· It will consent to pension benefits being paid under the flexible retirement policy to an employee over the age of 50 who requests this, provided their remuneration is reducing typically by 40 per cent through either a reduction in contractual hours or grade. In addition agreement must be obtained from The Executive Member for Policy and Resources, or the Chief Officer and the Director of Human Resources and the County Treasurer, whichever is appropriate under the policy, that it is in the Council's interest having regard to the requirements of the service, and that any Pension Fund charge for paying benefits early is affordable in each case. In exceptional circumstances the waiving of any reduction in benefits under the LGPS's `rule of 85' will also be considered.

· if you are made redundant or retired early at any age, it will consider increasing your LGPS membership within the limit allowed by the LGPS, or awarding up to two years' pay in compensation, inclusive of any redundancy payment, provided that this and the pension fund's charge for paying benefits early are affordable. Augmentation of LGPS membership will be considered in any redundancy or efficiency case, instead of an award of up to two years pay

· it will base any redundancy payment due to you on your actual weekly rate of pay, rather than the statutory limit and on your complete number of years of continuous service with local authorities

· if you are a Chief Officer or a Hampshire management grade employee in the situations listed above then it will submit your case for prior approval to the Executive Member for Policy and Resources

· it will pay preserved benefits without reductions to an ex-employee over age 50 on compassionate grounds, provided that the Chief Executive and the County Treasurer are satisfied that the person had to give up work to care for an aged or sick relative or partner. Serving employees can apply for this before leaving

· it will automatically include a woman's LGPS membership between 1 April 1972 and 5 April 1988 in the calculation of her widower's pension at no charge to her.

· it will reduce or suspend where necessary the added years pension paid to you during a period of re-employment with a LGPS employer. At the end of the period of re-employment it will reduce, according to a set formula, the added years element of your pension. In both instances you will be no better off, in pension terms, than if you had remained in the original job. Details of the formula are available from Pensions Services Section.