Understanding Employers Discretions

Beth Sargent – Employer Liaison and Communications Officer

What is a Pensions Discretion Policy?

• Pension decisions that you need to make outside of the Regulations

• ‘Local decision-taking and improved flexibility in pensions’

• Concerns past and present employees who were/are members of the LGPS

Why must I have a pensions discretion policy?• Local Government Pension Scheme

Regulations 2013 ‘Employers are required to formulate, publish and keep under review a policy statement in relation to the exercise of a number of discretions under the LGPS’

What must I think about when writing the discretions?• Cost• Discrimination• Fettering

Can’t I just see Northamptonshire/Cambridgeshire County Council’s policy??• Not a good idea• The lead Council is often the biggest employer

in the Fund with very different membership demographics and funding levels

• Advise you to formulate your own policy based on your own membership base and budgetary constraints

Where can I find out more?

• The discretions template used today only contains the compulsory discretions you need a policy for

• There are other discretions that it is recommended you have a policy for

• See the discretions page on our website for the full list - http://pensions.cambridgeshire.gov.uk/index.php/employers/discretions/

Contact detailsEmployer’s Team

Cory Blose Employer Services ManagerBeth Sargent Employer Liaison OfficerRichard Sultana Employer Liaison OfficerMark McAuliffe Pensions OfficerJessica Fowkes Pensions Officer

• Tel: 01604 364621• E-mail: penemployers@northamptonshire.gov.uk