Equality Impact Assessments
Equality
Impact Assessment
Record Form
Pensions, Retirement and Discretionary Compensation Payments
– Policy Statements
North Norfolk District Council
Page 1
Directorate
Resources
Service
Person
responsible for
the assessment
Human Resources/Organisational Development
HR Officer
the Pensions, Retirement & Discretionary Compensation Payments – Policy Statement
Date
assessment
completed
21/04/2010
Title
of
policy
being
assessed
The status of the
policy
Existing
1. What are the
aims,
objectives
and purposes
of the policy?
To provide information in the form of a policy statement on how North Norfolk District Council will exercise the
various discretions provided by the Local Government Pension Scheme in order to:
1) Comply with the requirements of the Local Government Pension Scheme (LGPS) legislation
2) Inform the Norfolk Pension Fund (as the administrator of the scheme) of the authority’s approach
3) Provide a point of information for staff, managers and UNISON on pensions, retirement and
discretionary compensation payments
Yes.
These Policy Statements are connected to other policies of the Council including:
 Employee Adjustment Procedure (This policy has been assessed separately).
 Diversity & Equality Policy (This policy has been assessed separately).
It also supports wider Council objectives of:
 Corporate Plan – Values of ‘valuing staff’ and ‘equality and diversity’ (see page 15 of the plan)
Also compliance with legislation, including:
 Local Government (Early Termination of Employment) (Discretionary Compensation) (England and
Wales) Regulations 2006
 Employment Rights Act 1996 (regarding statutory redundancy payment)
 LGPS (Administration) Regulations 2008 (referred to in the policy as ‘A Regs’)
 LGPS (Benefits, Membership & Contributions) Regulations 2007 (referred to in the policy as ‘B Regs’)
2. Does the
policy
support other
objectives of
the council?
2
3. Who is
intended to
benefit from
the policy,
and in what
way?
4. What
outcomes are
anticipated
from the
policy being
in place?
5. Identify and
select your
assessment
team.
6. What data
have you
gathered for
this
All employees and managers – This document provides general information on pensions, retirement and
discretionary compensation payments, sets out eligibility criteria and the areas where the Council can, and
cannot, exercise its discretion.
All customers & service users – The policy statements give boundaries on what decisions can be reached and
set out the need for decisions to be informed by a business case. This promotes the sound use of public money
(vfm) and retaining the staff that we still need to provide an efficient and effective service to customers.
Decision makers - The decisions are delegated to the Corporate Management Team, Leader and Cabinet
Member for Human Resources following consultation with the Council’s s151 Officer, Monitoring Officer and the
Organisational Development Manager. The policy statements set the boundaries in which they can make
decisions.
ICAS (Employee Assistance Programme) – Provides the telephone advisers with contextual information on
which they can base their advice, when contacted by a member of staff
 Compliance with relevant legislation
 Appropriate information being provided to Norfolk Pension Fund
 Clarity for staff, managers, HR and UNISON
 A framework for a clarity and a consistent approach to the application of the exercise of discretions in
relation to the LGPS and the application and calculation of discretionary payments made by the Council
Name
Role
Responsibilities
HR Officer
Various Consultees – see appendix A
Source and
Age of Data
Redundancy &
Retirement figures
Owner
Lead on assessment
Consultees
Findings
Human Resources
Since this policy was agreed in its first n/a
form in January 2009, there have only
3
Data Gaps
assessment?
How have
you analysed
this data?
(Cognos reports
2010) (Cognos is a
tool that allows us
to create reports
from
the information held
on the Human
Resources
computer system –
‘Resource Link’)
Statutory
Department of
redundancy
Business,
calculator
Innovations and
Skills.
INTRAN pages of
intranet
Re-employment
rates by age
following
redundancy 20052010. From LFS
redundancy tables
calendar quarters.
Holland J &
Burnett, S (2008).
Employment Law
2008. Oxford
University Press.
been small numbers who have been
affected by it (8 in total) and even looking
back over a three year period the total
number of retirements/redundancies is 16
– 11 retirements, 2 retirement redundancy
and 3 redundancies. Therefore an analysis
in terms of equality strands would be likely
to identify individuals.
Customer Services
Team Leader, NNDC.
Office for national
statistics
http://www.statistics.go
v.uk/StatBase/Product.
asp?vlnk=9474&Pos=
&ColRank=1&Rank=2
40
Holland J & Burnett, S/
Oxford
University
Press
4
0.5 weeks pay for each full year of service
where age during year less than 22
1.0 weeks pay for each full year of service
where age during year is 22 or above, but
less than 41
1.5 weeks pay for each full year of service
where age during year is 41+
Services that INTRAN can offer
n/a
n/a
That those aged over 50 have a lower n/a
chance of gaining re-employment after
being made redundant which supports the
Government’s justification for maintaining
some level of age related factor in
statutory
redundancy
payment
calculations.
Justification of the age related element of n/a
the statutory redundancy payment.
Evidence that the calculations for
payments did move after the Employment
Equality (Age) Regulations 2006.
www.redundancyex
pert.co.uk/redunda
ncy-questionage.html
Accessed July
2010.
Employment
legislation (various
– see box 2 above)
1996 – 2008
Views from
employee
representatives
regarding the
assessment
North
Norfolk
District
Councils
accessibility
matters standards
7. Who are the
main
stakeholders
of this policy?
‘Redundancy Expert’
Justification of the age related element of n/a
the statutory redundancy payment.
Central Government
The law relating to the specifc areas n/a
mentioned in box 2 above.
Human Resources
Changes made following this consultation n/a
are listed in Appendix A.
North Norfolk District Guidelines on how to make information n/a
Council
more accessible
Community
Staff/Members




All employees
All managers
Members
Trade union representatives
5
Partners



Norfolk Pension Fund
Norfolk County Council
ICAS (employee
assistance programme
provider)
8. Are there any
concerns that
the policy
could have a
negative
impact with
regard to
race and
ethnicity?
What evidence (actual data or assumptions) do you have to support this?
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their race and ethnicity. UNISON would have been
consulted prior to the introduction of these statements.
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
‘INTRAN’ services (translation) would also be available if there was a need to communicate
the procedure in another language, for example.
No
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. in the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs. Race and ethnicity
are not factors in such a business case.
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to race and ethnicity.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to race or ethnicity.
9. Are there any
concerns that
the policy
could have a
negative
impact with
What evidence (actual data or assumptions) do you have to support this?
No
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their gender. UNISON would have been consulted
prior to the introduction of these statements.
6
regard to
gender?
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
Those on maternity/paternity leave are able to make voluntary payments into the pension
scheme on their return to prevent any gap in their membership resulting from that leave;
which would ultimately affect their benefits (see section 3e page 6).
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. in the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs. Gender is not a
factor in such a business case.
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to gender.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to gender.
10.Are there any
concerns that
the policy
could have a
negative
impact with
regard to
disability?
What evidence (actual data or assumptions) do you have to support this?
No
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their disability status. UNISON would have been
consulted prior to the introduction of these statements.
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
7
This procedure should be communicated in a number of different forms – e.g. intranet,
team briefing & briefing newsletter. Communications would need to comply with the
Council’s Accessibility Standards. ‘INTRAN’ services (translation) would also be available if
there was a need to communicate the procedure in sign language or Braille for example.
Although not directly mentioned in these policy statements, there is a provision for ill health
retirements in the LGPS. An Ill health retirement is not exclusively for those with a disability,
but may be applicable to eligible employees with a disability. This is a beneficial aspect of
the LGPS for those with a disability that leads to them being unable to carry out their duties
and having a reduced likelihood of finding alternative work.
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. in the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs. Disability status is
not a factor in such a business case.
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to disability.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to disability.
11.Are there any
concerns that
the policy
could have a
negative
impact with
regard to
age?
What evidence (actual data or assumptions) do you have to support this?
Yes – but in
keeping with
national
regulations
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their age. UNISON would have been consulted prior to
the introduction of these statements.
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
8
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
There are a number of direct references to age within these policy statements (for
examples, see pages 3 and 9). The age thresholds within the policy statements are set
externally – where related to pensions, by the LGPS regulations and where related to
redundancy, by central government. Age restrictions are necessary to set boundaries, and
in the case of the LGPS to protect the financial viability of the scheme.
An example of an age restriction is that relating to flexible retirement, which is only
available to scheme members aged 55 or over. This is age restricted yet is age positive in
promoting the retention of skilled and valued employees and is socially responsible in
assisting with the transition from working full time to retirement and the adjustments which
come with this. Pre-retirement training is also available although not mentioned in the policy
statements.
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. In the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs. Age is not
specifically a factor in such a business case, however in some cases an employee’s age
may prevent a discretion being exercised via the age thresholds provided by the LGPS
(and therefore not influenced by the Council).
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to age.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to age.
9
12.Are there any
concerns that
the policy
could have a
negative
impact with
regard to
religion/belie
f?
What evidence (actual data or assumptions) do you have to support this?
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their religion/belief. UNISON would have been
consulted prior to the introduction of these statements.
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
No
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. In the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs . Religion and belief
are not factors in such a business case.
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to religion or belief.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to religion/belief.
13.Are there any
concerns that
the policy
could have a
negative
impact with
regard to
sexual
What evidence (actual data or assumptions) do you have to support this?
No
These policy statements apply equally to all employees (providing that they are members of
the pension scheme - where applicable - which is open to all employees with a contract for
three months or more) regardless of their sexual orientation. UNISON would have been
consulted prior to the introduction of these statements.
The Council has and operates a Diversity & Equality Policy to ensure all staff are treated
10
orientation?
fairly, regardless of their background. This is reinforced in these policy statements by the
inclusion of an equalities statement at the beginning of the document.
Although not directly referred to in these policy statements, the LGPS scheme allows same
sex partners in a civil partnership to benefit in the same way as a heterosexual couple in
the event of a members death. The employees guide to the LGPS (January 2009: 10)
states – ‘You can nominate a co-habiting partner, of either opposite or same sex, to receive
a survivor’s pension on your death, providing your relationship meets certain conditions laid
down by the LGPS.‘
Where the policy allows for the Council to make a decision on individual cases and whether
or not to apply a discretion, the decisions are based purely on a business case and
business reasons e.g. in the case of discretionary compensation payments, the Council will
aim to achieve a payback period of 3 years to cover associated costs. Equality factors of
sexual orientation are not a factor in such a business case.
The discretions which the Council can exercise as laid out in these policy statements are
applied equally to all eligible staff. There is no evidence that these policy statements have
an adverse impact with regard to sexual orientation.
There is however a three-stage dispute procedure for pension scheme members who
disagree with any LGPS decision made by their employer. This gives employees the
chance to appeal a decision made by the Council, this could include where a member felt
that there was an issue relating to sexual orientation.
11
14.Could the
negative
impact you
have
identified in
questions 8 13 lead to the
potential for
adverse
impact if the
policy is
implemented
?
Yes
Can this adverse
impact be
justified on the
grounds of
promoting
equality of
opportunity for
one group?
N/A
Or any other
reason?
Yes
Can the impact
be mitigated by
existing means?
N/A
In the sense of the age restrictions, this means that only people of a certain age will qualify
for particular parts of the policy, and their age and length of service will affect the amount of
compensation payments for redundancy.
However the age restrictions are set down in legislation and not influenced by NNDC.
The use of different age bands for calculating redundancy payments is viewed by the government
as legitimate – See Appendices C & D.
12
If yes, what
actions will you
undertake to
mitigate these
impacts and
revise the
policy?
N/A
Please see action plan in Appendix B.
15.Describe the
arrangements
for reporting
and
publishing
this
assessment.
This assessment will be reported to the Equality and Diversity Board and will be published on the NNDC
external website (www.northnorfolk.org)
Has this
assessment been
undertaken by a
minimum of two
staff?
Has this assessment been scrutinised by your Directorate Steering
Group?
Yes
If the policy is new, or requires a decision by Councillors to revise, has this Equality Impact Assessment
been included with the report?
Have any actions identified in this assessment been included in your service equality and diversity action
plan?
Completed by:
Signed off by:
13
This has been
scrutinised by
Organisational
Development
Equality
Impact
Assessment
team
Yes
See Appendix
B
Appendix A – Consultation information and Edits
People involved in the assessment:




HR Advisor
Organisational Development Manager
Community Liaison Officer
Unison representative
Actions taken after consultation:







Additional wording where pension scheme members are mentioned – referring to them as ‘pension scheme members’ rather
than just ‘members’ to avoid any confusion
Minor changes in boxes 1 &3
Removal of evidence which may identify individuals
Additional evidence added to Appendices (C & D) regarding government reasoning for maintaining an age related statutory
redundancy pay system
Clarity on date range used for redundancy figures
Greater date range used (3 years) for redundancy/retirement figures
Additional action added to revise phrasing around retirement age to reflect that the Council does not operate any default
retirement age, although the pension scheme does set limits on when benefits can be drawn (See Appendix E).
14
Appendix B – Action Plan
Action
Expected Outcome
Person
responsible
Provide more information on what kind of Clarity for reader, HR and designated HR Advisor
disputes are covered by appeals process appeal person.
and if there is any areas that are better
covered by the Grievance Procedure, for
example. Also state timeframes, content
for appeal letters etc?
Revise phrasing around retirement age to To clarify that we do not have a default HR Advisor
reflect that the Council does not operate retirement age
any default retirement age, although the
pension scheme does set limits on when
benefits can be drawn (See Appendix E)
Add a list of relevant information, in Clarity for reader.
HR Advisor
footnote format perhaps so that reader
can understand what the 2007, 2008 and
‘A’ and ’B’ Regulations refer to.
15
Target date
When policy is
reviewed
When policy is
reviewed
When policy is
reviewed

Appendix C – Evidence regarding age related statutory redundancy pay calculations
“Justification of Age related redundancy payment Prior to the implementation of the Employment Equality (age) regulations on 1st
October2006, those under 18 or over 65 had no entitlement, but the statutory rules have now been amended. An arrangement
whereby the redundancy payment decreased by monthly amounts from the age of 64 to reach zero at the age of 65 has also been
removed. The Government defends the continuation of the different multipliers for different age bands as justified by the greater
difficulty older workers continue to face in finding other employment after redundancy.”
Source: Holland J & Burnett, S (2008). Employment Law 2008. Oxford University Press.
“Statistics show that, for older workers, redundancy is often a much more serious problem than it is for younger workers. They find it
much more difficult to find new jobs and to switch to new career tracks. The age banding scheme which is built into the Statutory
Redundancy Payments (SRP) system reflects this, requiring employers to make more generous payments to their older workers.
Unfair dismissal payments also reflect the same age banding.”
Source: http://www.redundancyexpert.co.uk/redundancy-question-age.html
Both of these points are supported by the Labour Force Survey statistics from the ONS which show that almost exclusively over the
last 5 years workers over 50 have the lowest chances of finding alternative employment, see Appendix D
16
Appendix D - Re-employment rates1 by age following redundancy
2005
2006
2007
2008
2009
2010
All aged 16+
16-24
25-34
35-49
50+
Q1
42.0
*
46.4
47.0
33.9
Q2
42.7
42.7
45.4
49.1
30.7
Q3
43.8
41.7
43.5
51.0
34.8
Q4
43.7
40.6
34.6
49.9
43.3
Q1
36.6
42.1
44.1
31.6
34.2
Q2
41.5
*
45.8
48.9
*
Q3
36.8
*
43.6
38.8
*
Q4
46.4
51.9
42.3
51.4
39.0
Q1
35.5
47.9
27.2
37.4
29.0
Q2
45.2
*
54.9
53.3
31.3
Q3
39.3
37.0
47.9
43.5
*
Q4
46.8
*
54.5
58.2
31.4
Q1
31.2
*
48.4
27.4
*
Q2
39.4
42.3
*
45.6
*
Q3
36.3
33.4
34.0
44.7
28.8
Q4
34.9
31.3
41.5
41.5
23.1
Q1
24.0
21.3
29.0
27.6
*
Q2
27.6
29.9
23.7
33.4
22.7
Q3
30.5
30.7
40.3
35.2
18.7
Q4
30.9
42.7
28.1
33.3
*
Q1
26.1
*
23.9
38.1
*
Source: ONS Labour Force Survey
*Estimates are taken from the LFS, Sample sizes are too small to provide estimates
1
The percentage of those people in employment during the survey reference week who had been made redundant in the preceding three months.
17
Appendix E – Age boundaries set by the LGPS
‘The scheme's normal pension age remains at 65. If you continue working beyond age 65, you can stay in the scheme but you
must draw your benefits by age 75. Benefits drawn after 65 will be increased ‘
Source: The Local Government Pension Scheme website (http://www.lgps.org.uk/lge/core/page.do?pageId=102727)
18