The Local Government Pension Scheme (LGPS) requires all scheme employers to formulate, publish and keep under review a statement of policy on all mandatory discretions which they may exercise in relation to members of the LGPS.
Under Regulation 60 of the LGPS Regulations 2013, (as amended), each scheme employer must publish and keep under review a Statement of Policy to explain how it will apply certain discretions allowed under the Pensions Regulations.
Setting a discretions policy as a scheme employer gives you flexibility in managing issues relating to LGPS benefits for your current and former employees. Exercising these discretions can have immediate costs for employers, however, please be aware that failing to set a policy is a breach of the scheme regulations.
A copy of the policy must be sent to the relevant administering authority. Your policy should be reviewed annually to ensure that the decisions are still relevant to you as an employer and your scheme members.
If you decide to amend the policy, you must publish the revised policy and send a copy to us within one month of making the changes.
The mandatory LGPS 2013 & 2014 discretionary policies are:
Please note that this list is not exhaustive. In the guidance documents you can locate the pre 2014 mandatory discretions and other policies that you are advised to consider and publish.
The LGPS website provides the full list of discretions along with guidance for scheme employers.
We are holding several webinars on discretionary policies, to sign up please visit Support for employers or alternatively email wmpfemployerliaison2@wolverhampton.gov.uk for more information.