Employer discretions
Employer discretions
The Local Government Pension Scheme (LGPS) is a statutory pension scheme and its rules are set out in Acts of Parliament. However, the LGPS regulations do allow employers to make certain discretionary decisions and, as a result, all employers participating in the LGPS must formulate, publish and keep under review a written statement of policy in relation to those discretions.
The LGPS regulations state that employers must provide a copy of their published policy statement to Greater Manchester Pension Fund’s (GMPF) administering authority. If you make any amendments to an existing policy, you must send a copy of the revised policy to the administering authority within a month of the changes being made. You should send your discretion policy to employersupport@gmpf.org.uk.
When writing and reviewing your policy, you are required to consider if the exercise of your discretionary powers could lead to a serious loss of confidence in the public service. You must also consider legislation outside of the LGPS rules and make sure that your policies do not infringe anti-discrimination laws in areas of gender, race, age etc.
You cannot consider requests from members where you are required to make a discretionary decision if you do not have a policy in place.
Local Government Association (LGA) guidance
The LGA has compiled a full list of all discretions, together with more information on the key discretions upon which employers must have a published policy. These two guidance documents can be found within the guides and sample documents section of the LGPS Regulations and Guidance website.
Resources
Employer discretions template - Template for help with ensuring that you have a policy in place for all of the mandatory discretions
Presentation - A guide for you to follow when completing your discretions policy. It explains what a discretions policy is, why employers need to have one and the things you need to consider when formulating your policy.