Council
Please Contact: Emma Denny
Please email: emma.denny@north-norfolk.gov.uk
Please Direct Dial on: 01263 516010
15 July 2014
A meeting of the North Norfolk District Council will be held in the Council Chamber at the
Council Offices, Holt Road, Cromer on Wednesday 23 July 2014 at 6.00 p.m.
Sheila Oxtoby
Chief Executive
To: All Members of the Council
Members of the Management Team, appropriate Officers, Press and Public.
If you have any special requirements in order
to attend this meeting, please let us know in advance
If you would like any document in large print, audio, Braille, alternative format or in a
different language please contact us
Chief Executive: Sheila Oxtoby
Corporate Directors: Nick Baker and Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
1.
PRAYER
Led by Reverend David Philo, North Walsham Methodist Church
2.
CHAIRMAN’S COMMUNICATIONS
To receive the Chairman’s communications, if any.
3.
TO RECEIVE DECLARATIONS OF INTERESTS FROM MEMBERS
Members are asked at this stage to declare any interests that they may have in any
of the following items on the agenda. The Code of Conduct for Members requires
that declarations include the nature of the interest and whether it is a disclosable
pecuniary interest.
4.
APOLOGIES FOR ABSENCE
To receive apologies for absence, if any.
5.
MINUTES
(attached – page 1)
To confirm the minutes of the meeting of the Council held on 24 June 2014.
6.
ITEMS OF URGENT BUSINESS
To determine any other items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B (4)(b) of the Local
Government Act 1972.
7.
PUBLIC QUESTIONS
To consider any questions received from members of the public.
8.
APPOINTMENTS
To consider any appointments.
9.
RECOMMENDATIONS FROM THE CONSTITUTION WORKING PARTY 14 MAY
2014
MINUTE NO 6: REVIEW OF THE POLICY FRAMEWORK
(Draft Minutes – attached p.8)
Recommended to Council:
That the following plans and strategies should be included within the Policy
Framework and that the Constitution should be amended to reflect any changes:
Asset Management Plan
Performance Plan
Capital Strategy
North Norfolk Local Development Framework
Economic Development Plan
Strategic Housing Policy
Financial Strategy
Growth Strategy
Licensing Authority Policy Statements
10.
RECOMMENDATIONS FROM CABINET 07 JULY 2014
(Cabinet Agenda 07 July 2014 – p.15)
AGENDA ITEM 10: SUPERFAST BROADBAND
1. That £1million is earmarked (in a reserve) from the current year balance and
future year allocations return of the second homes council tax funding and
unallocated New Homes Bonus.
2. That no commitment to spend this earmarked fund is made until the BBfN
Programme has let the next call-off contract and this has been analysed by the
District Council, the detail shared with Members and a recommendation made to
Council.
3. That a presentation be arranged for Members during July to receive an update
on the current roll out of Norfolk’s Better Broadband for Norfolk (BBfN)
Programme and to ask further questions about the next Programme, likely
coverage and funding.
RECOMMENDATIONS FROM OVERVIEW AND SCRUTINY COMMITTEE 16 JULY
2014
The Overview and Scrutiny Committee considered the Cabinet recommendations at
their meeting on 16th July. The Chairman will provide an oral update at the Coucnil
meeting.
11.
RECOMMENDATIONS FROM OVERVIEW AND SCRUTINY COMMITTEE 16 JULY
2014
To consider any further recommendations from the Overview and Scrutiny
Committee meeting of 16 July 2014.
(Please note this meeting was held after the Council agenda was published and a
hard copy of any recommendations will be provided prior to the meeting)
12.
REVIEW OF DISCRETIONARY PENSION POLICY STATEMENTS
(attached – p.12)
(Appendix A – p.15) (Appendix B – p.22) (Appendix C – p.29)
Summary:
The introduction of the New Local Government Pension
Scheme (LGPS) from 1 April 2014 requires all scheme
employers to review their current discretionary policy
statements and publish new statements. This report
summarises the key changes and makes a recommendation
for the adoption of revised pension policy statements.
Conclusions:
The revised policy statements sets out how the Council will
exercise the discretions outlined in the Local Government
Pension Scheme 2014.
Recommendations:
It is recommended that Council approves the revised
Pension Policy Statement attached at Appendix A.
Cabinet member(s):
Ward member(s)
Contact Officer,
telephone and
e-mail:
Cllr T FitzPatrick
All
Julie Cooke, 01263 516040
julie.cooke@north-norfolk.gov.uk
13.
TO RECEIVE THE APPROVED MINUTES OF THE UNDERMENTIONED
COMMITTEES
Members are requested to note that the minutes of the undermentioned committees
have been approved. Copies of all the minutes are available on the Council’s website
or from Democratic Services.
a)
b)
c)
14.
Overview & Scrutiny Committee – 20 May 2014
Cabinet – 09 June 2014
Development Committee – 15 May 2014
REPORTS FROM THE CABINET OR MEMBERS OF THE CABINET
To receive reports from the Cabinet or Members of the Cabinet.
15.
QUESTIONS RECEIVED FROM MEMBERS
None received
16.
OPPOSITION BUSINESS
None received
17.
NOTICE(S) OF MOTION
None received
18.
EXCLUSION OF PRESS AND PUBLIC
To pass the following resolution – if necessary:
“That under Section 100A(4) of the Local Government Act 1972 the press and public
be excluded from the meeting for the following item(s) of business on the grounds
that they involve the likely disclosure of exempt information as defined in
paragraph(s) _ of Part 1 of Schedule 12A (as amended) to the Act.”
19.
PRIVATE BUSINESS
Circulation:
All Members of the Council.
Members of the Management Team and other appropriate Officers.
Press and Public
COUNCIL
Minutes of a meeting of North Norfolk District Council held on 24 June 2014 at the Council
Offices, Holt Road, Cromer at 6.00 pm.
Members Present:
Mrs S A Arnold
Mr M Baker
Mrs L Brettle
Mr B Cabbell Manners
Mrs A ClaussenReynolds
Mrs H Cox
Mr N D Dixon
Mrs H Eales
Mrs A M Fitch-Tillett
Mr T FitzPatrick
Mrs A Green
Officers in
Attendance:
21.
Mrs P Grove-Jones
Mr G Jones
Mr P W High
Mr T Ivory
Mrs A Moore
Mr P W Moore
Mr W J Northam
Mr J Perry-Warnes
Mr R Reynolds
Mr E Seward
Mr R Shepherd
Mr B Smith
Mr N Smith
Mr R Smith
Mr R Stevens
Mrs A Sweeney
Mr P Terrington
Mrs V Uprichard
Mr G Williams
Mr P Williams
Mr R Wright
Mr A Yiasimi
Mr D Young
The Chief Executive, The Corporate Directors, the Monitoring Officer, the
Head of Finance and the Democratic Services Team Leader
PRAYERS
The Chairman invited Reverend Anthony Long, Vicar for Scottow and Sloley to lead prayers.
22.
CHAIRMAN’S COMMUNICATIONS
The Chairman said that his first month in office had been very diverse. He had attended the
civic service at North Walsham and celebrated the completion of the restoration of St Benet’s
Abbey at Horning. The Vice-Chairman, Councillor Claussen-Reynolds, had attended two
further events on his behalf – the High Sheriff’s reception and the annual meeting of the West
Norfolk, King’s Lynn and Wisbech Branch of the NSPCC which had provided some very useful
information that would be circulated to all members.
He went on to say that the previous week he had been honoured to attend the First Night
Riders event at Cromer Pier. The UK branch undertook an annual visit to theatres around the
country to raise awareness and generate funds for the Theatrical Guild. This year’s coastal
tour started in Cromer.
The month’s events culminated in in the Municipal Journal Awards at the Hilton Hotel, London,
for which eastlaw, the Council’s in-house legal team, received the award for legal services. Mr
Ivory congratulated them on their great success – which had seen them shortlisted against
several large councils. He then invited the team to come up to the front of the Chamber and
receive their award.
The Chairman concluded by informing members that his nominated charities for his term of
office were the Royal British Legion and the Benjamin Foundation.
Council
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24 June 2014
23.
TO RECEIVE DECLARATIONS OF INTEREST FROM MEMBERS
None
24.
APOLOGIES FOR ABSENCE
Apologies for absence were received from Ms V Gay, Mrs B McGoun, Mr R Oliver, Miss B
Palmer, Mr R Price, Mr J Punchard, Mrs L Walker, Mr S Ward and Mr J Wyatt.
25.
MINUTES
The minutes of the annual meeting of Council held on 21 May 2014 were approved as a
correct record.
26.
ITEMS OF URGENT BUSINESS
None
27.
PUBLIC QUESTIONS
None
28.
APPOINTMENTS
It was proposed by Mr T FitzPatrick and seconded by Mr G Williams and
RESOLVED
To appoint Mrs L Brettle to replace Mr R Reynolds as a substitute on the North Norfolk Joint
Museums Committee.
29.
RECOMMENDATIONS LICENSING AND APPEALS COMMITTEE 7 MAY 2014
AGENDA ITEM 6: LICENSING FEES AND CHARGES POLICY
Mrs H Cox, Vice-Chairman of the Licensing and Appeals Committee introduced this item. She
informed members that this policy had been considered and agreed by the Licensing and
Appeals Committee at their meeting on 7th May 2014.
RESOLVED
To adopt the proposed fees and charges for the licensing function of the Council.
AGENDA ITEM 7: CARAVAN SITE LICENSING FEES
Mrs H Cox introduced this item. She said that there had been a lot of discussion regarding this
report when it was considered by the Licensing and Appeals Committee.
RESOLVED
To adopt the proposed fees for caravan site licences.
AGENDA ITEM 8: LICENSING POLICY FOR SEX ESTABLISHMENTS
Mrs H Cox introduced this item. She informed members that the Licensing and Appeals
Committee had recommended approval of the the policy subject to the following amendments:
Council
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24 June 2014


officer designations following restructuring
clarification of the relevant date of adoption of Schedule 3 of the act as mentioned at
paragraph 1.1 of the document
 confirmation of receipt of consultation from the Health Authority
 a typographical error in paragraph 5.12 of the document
RESOLVED
to approve the Licensing Policy for Sex Establishments subject to the above amendments.
Mr R Wright voted against the resolution.
30.
RECOMMENDATIONS FROM CABINET 12 MAY 2014
AGENDA ITEM 9: NORTH NORFOLK ASSET MANAGEMENT PLAN
Mr T FitzPatrick introduced this item. He explained that the Asset Management Plan 2014/15
to 2016/17 outlined the strategic framework within which the Council managed its property
assets. He drew members’ attention to the commitment to continue the improvement works to
the Council’s car parks.
Mr P W Moore, Chairman of the Overview and Scrutiny Committee confirmed that the
Committee endorsed the recommendations at their meeting on 20 May 2014.
RESOLVED
1. To approve the Asset Management Plan as the basis for the strategic framework for asset
management at North Norfolk District Council, including implementation of the Action
Plan.
2. To approve a capital budget of £110,000 to continue the improvement works to the
Council’s car parks.
31.
RECOMMENDATIONS FROM CABINET 09 JUNE 2014
a) AGENDA ITEM 10: 2013/14 OUTTURN REPORT
The Portfolio Holder for Finance, Mr W Northam, introduced this item. He explained that the
report presented the outturn position for the revenue account and capital programme for the
2013/14 financial year. He said that he was pleased to report a surplus of £119,011 which
would be transferred to the general reserve. He went on to thank the Corporate Leadership
Team, the Head of Finance and all the staff who had worked so hard. He also thanked the
Chairman and Cabinet for their continued support.
Mr P W Moore, Chairman of the Overview and Scrutiny Committee confirmed that the
Committee endorsed the recommendations at their meeting on 18 June 2014, although they
advised that the LAM beams in the Council office’s roof required urgent maintenance.
Members were invited to speak:
i.
ii.
Council
Mr M Baker queried the cost of spending £30,000 on replacement hardware storage.
The Head of Finance advised that the new equipment would facilitate quicker data
access for a ten year period – as outlined in the Cabinet report.
Mr G Jones commented on the £300,000 reduction in the general reserves and
wondered how significant this was. The Head of Finance acknowledged that the
reserves were lower and this was due to the costs of the storm surge. However, the
additional funding towards the costs of the storm surge was not included at this stage.
3
24 June 2014
RESOLVED to approve:
a) The final accounts position for the general fund revenue account for 2013/14;
b) The transfers to and from reserves as detailed within the report (and Appendix C) along
with the corresponding updates to the 2014/15 budget;
c) To transfer the surplus of £119,011 to the general reserve;
d) The financing of the 2013/14 capital programme as detailed within the report and at
Appendix D;
e) The balance on the general reserve of £1,745,452 at 31 March 2014 and forecast balance
of £1,496,220 at 31 March 2015;
f) The updated capital programme for 2014/15 to 2015/16 and the associated financing of the
schemes as outlined within the report and detailed at Appendix E;
g) A capital budget of £30,000 for replacement hardware storage as detailed within 7.2 of the
report.
Mr G Jones voted against the resolutions.
b) AGENDA ITEM 12: DEBT RECOVERY ANNUAL REPORT
Mr W Northam introduced this item. He explained that this was an annual report detailing the
council’s collection performance and debt management arrangements for 2013/14 and went
on to outline the figures for council tax, business rates and sundry debt. He praised officers
for their continued hard work in pursuing the recovery of debts owed to the Council. He
concluded by thanking the Head of Revenues and Benefits, Louise Wolsey, for all of her
support over recent years and wished her a long and happy retirement.
Mr P W Moore, Chairman of the Overview and Scrutiny Committee confirmed that the
Committee endorsed the recommendations at their meeting on 18 June 2014. He said that the
Committee were impressed by the collection success rates.
RESOLVED:
To approve the annual report giving details of the Council’s write-offs in accordance with the
Council’s Debt Write-Off Policy and performance in relation to revenues collection.
c) AGENDA ITEM 13: TREASURY MANAGEMENT ANNUAL REPORT
Mr W Northam introduced this item. He explained that the report set out the treasury
management activities undertaken during 2013/14 compared with the Treasury Management
Strategy for the year. Mr Northam said that this was the first time that the anticipated
investment income for the year was not achieved. However, the LAMIT Pooled Property Fund
had earned more than predicted thus resulting in a smaller overall shortfall. Mr Northam
concluded by thanking the Technical Accountant for all his hard work.
Mr P W Moore, Chairman of the Overview and Scrutiny Committee confirmed that the
Committee endorsed the recommendations at their meeting on 18 June 2014.
RESOLVED:
To approve the Treasury Management Annual Report and Prudential Indicators for 2013/14.
d) AGENDA ITEM 15: CAR PARKING MANAGEMENT AND PRICING
Mr T FitzPatrick introduced this item. He said that Cabinet had decided to review the car park
pricing structure to help local businesses. Consideration was still being given to how to offer a
Council
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24 June 2014
short period of free parking – with one possibility being the introduction of marked bays. He
went on to outline the budgetary implications of the Cabinet decision.
Mr P W Moore, Chairman of the Overview and Scrutiny Committee said that this item had led
to a lot of discussion at the Committee meeting on 18 June 2014 – particularly the issue of
free parking. He said that the Committee would like to be kept informed of progress on this
issue.
Members were invited to speak:
a) Mr G Jones said that the current administration proposed to reduce car park income by
£110K and had not indicated how they intended to replace it. Mr T FitzPatrick replied
that although there was a funding gap, the administration felt that it was important that
they should focus on helping local businesses and residents and the financial impact
would be addressed during the budget process.
b) Mr M Baker referred to section 1.5 of the Cabinet report which indicated that the car
park income from Holt alone was quite considerable. Given this, he queried why the
administration would not address the lack of capacity within the town. Mr T FitzPatrick
responded by saying that there was a lot of work in progress with various stakeholders
to resolve the ongoing issues regarding parking within the town and that the Council
would continue to work towards a remedy for the problem.
c) Mrs H Cox commented that the introduction of short-term free parking would be
beneficial to local residents. Mr R Shepherd agreed, adding that the evening charges
were confusing and he supported their removal.
d) Mr E Seward, local member for North Walsham North, said that he welcomed the
possibility of some free parking bays. He hoped that it would unlock some of the
problems that the town was experiencing and lead to a positive way forward and the
release of County Council funding.
e) Mrs A Moore asked when the proposed changes would be introduced. Mr T FitzPatrick
replied that there was a lead-in time for parking orders. He said that the changes would
be implemented following a 3 month consultation period.
RESOLVED
To approve the following budget implications (detailed within Section 6 of the Cabinet report))
6.1 As indicated above the financial impact is made up of a one-off cost of £10,000 for
the machine changes and signage along with an ongoing full year impact of
£110,000 per annum for the reduction in income (assuming implementation of free
parking option between 9:00 am and 9:30 am).
6.2 There may be some reduction in enforcements costs although these are yet to be
explored further with KL&WN.
6.3 The current financial projections as reported in February 2014 within the budget
report detailed a future funding gap of £239,000 for 2015/16 increasing to £1.3 million
in 2016/17. The changes to car parking charges as recommended within this report
will increase the funding gap by £110,000 from 2015/16 onwards.
6.4 The full year/ongoing budget impact from 2015/16 onwards will need to be
considered as part of the budget process for 2015/16 which will commence later in
the year. For the current financial year, assuming an implementation date of 1
October, the financial impact is expected to be in the region of £32,000 including the
signage/machine software changes and can be funded from existing budgets and the
Asset Management Reserve.
Mr G Jones voted against the resolution.
Council
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24 June 2014
32.
RECOMMENDATIONS FROM THE OVERVIEW AND SCRUTINY COMMITTEE 18 JUNE
2014
Mr P W Moore, Chairman of the Overview and Scrutiny Committee, informed members that
although there were no recommendations from the Committee to Council, he wished to update
them on the following areas that the Committee were focussing on:
a) The Citizens Advice Bureau (Norfolk) would be invited to attend a Committee meeting to
respond to questions from members following the merger between the North Norfolk branch
and the County branch.
b) The Committee was holding an additional meeting on 22nd July to look at housing issues
across the District. All members were welcome to attend.
c) In November, there would be a session on tourism right across the District – including the
Broads. Two external representatives would be attending to give a presentation and
respond to members’ questions.
33.
TO RECEIVE THE APPROVED MINUTES FOR THE UNDERMENTIONED COMMITTEES
RESOLVED
to note the approved minutes of the undermentioned committees:
a)
b)
c)
d)
e)
34.
Overview & Scrutiny Committee – 12 February 2014
Overview & Scrutiny Committee – 12 March 2014
Cabinet – 14 April 2014
Development Committee – 17 April 2014
Cabinet – 12 May 2014
REPORTS FROM THE CABINET OR MEMBERS OF THE CABINET
Mr G Williams informed members that the Council had received £211,512 of National Lottery
funding from Sport England’s Community Sport Activation Fund. The funding was for the
three-year long Sports Clubs and Hubs’ project which aimed to deliver a range of sporting and
exercise activities designed to encourage people who currently had difficulty gaining access to
sports facilities – with an overall target of getting 2000 more people playing sport. Emphasis
would be placed on making these activities self-supporting in the longer term. He concluded by
saying that the Council had been successful in receiving the funding because they had
provided an evidence base for the sporting needs across the District, together with a
deliverable plan.
35.
QUESTIONS RECEIVED FROM MEMBERS
Mr G Jones had submitted the following question:
‘What is the full year cost of the proposed changes to car parking charges and given that for
the next two financial years there are massive shortfalls in the revenue budget, how will these
changes be funded?
Mr T FitzPatrick referred Mr Jones to his earlier response to the item on Car Parking
management and Pricing (minute 31d), which he felt had already provided an answer to this
question. Mr Jones queried the shortfall of £110k and whether that included penalty charges
and where the shortfall would be funded from. Mr FitzPatrick replied that the facts were laid
out within the Cabinet report and that the shortfall would be considered as part of the Budget
process.
Council
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24 June 2014
36.
NOTICE(S) OF MOTION
None received.
The meeting concluded at 6.47 pm.
_________________________
Chairman
Council
7
24 June 2014
Agenda Item 9
DRAFT
CONSTITUTION WORKING PARTY
Minutes of a meeting of the Constitution Working Party held on 14 May 2014 in
Meeting Room 3, Council Offices, Holt Road, Cromer at 2.00 pm.
Working Party:
Mrs H Cox, Mrs A Fitch-Tillett, Ms V R Gay, Mrs A Moore
Officers in
Attendance:
The Monitoring Officer and the Democratic Services Team Leader
1
TO RECEIVE APOLOGIES FOR ABSENCE
Miss B Palmer
2
MINUTES
The Minutes of the meeting held on 03 February 2014 were approved as a correct
record and signed by the Chairman
3
ITEMS OF URGENT BUSINESS
None
4
DECLARATIONS OF INTEREST
All Members declared a non-pecuniary interest in the Constitution.
5
APPOINTMENTS TO OUTSIDE BODIES
The Democratic Services Team Leader informed the Committee that nominations
had been submitted by the Group Leaders for appointments to Outside Bodies for
2014/15. Just five bodies had more than one nominee. The Chief Executive met with
the Group Leaders and agreement was reached regarding these, resulting in one
nomination going forward for each body.
The nominations would now go to the Annual meeting of Council on 21st May 2014
for approval.
The Democratic Services Team Leader concluded by saying that the annual review
of Outside Bodies had resulted in further areas of work being identified including:
The remit of each outside body
The role of the appointed representative(s)
Whether a Portfolio Holder appointment is required
Whether District Council funding is provided to the Outside Body
It was intended that a further report would be presented to the Overview and Scrutiny
Committee later in the year.
Constitution Working Party
1
8
14 May 2014
DRAFT
6
REVIEW OF THE CONSTITUTION
The Monitoring Officer informed the Committee that at the last meeting they had
agreed to review the policy framework (outlined on page 14 of the Constitution). He
explained that this included the plans and strategies approved by council and these
should be high level and strategic.
The Committee then discussed the current plans and strategies in turn:
Asset Management Plan
The Monitoring Officer advised that this was not a matter reserved by law to the
council, however, its inclusion could be justified if it was a high level policy with an
emphasis on financial and budgetary matters. Mrs A Fitch-Tillett said that she felt that
the Asset Management Plan should be a Cabinet function as it just provided a list of
properties with details about their state of repair. Mrs A Moore replied that she felt
that there were examples of council-owned assets that impacted on several wards –
such as lavatories. She also commented that there were some high-profile assets
such as North Lodge Park, Cromer which were of interest to all members. Mrs FitchTillett replied that Cabinet had made the recent decision regarding the transfer of
ownership of North Lodge Park but that the local members had been kept informed
throughout the process.
Ms V Gay said she felt that the Asset Management Plan was an instrument of
economic policy and its role was to support financial polices at a strategic level. She
proposed that it should therefore remain within the policy framework. The Chairman
added that an additional proviso should be included that local members should be
consulted if council-owned assets were to be disposed of or the ownership
transferred.
It was agreed that the Asset Management Plan should be included within the policy
framework.
Performance Plan
The Monitoring Officer advised that this was a matter reserved by law to Council and
should therefore remain within the policy framework.
Capital Strategy
As part of the high level budget framework, this strategy sat within the council’s
reserved powers. However, the Monitoring Officer cautioned against an overly
prescriptive approach and advised that it should be high level and strategic only.
Sustainable Community Strategy
This related to powers now disapplied in England and should be removed from the
framework.
Crime and Disorder Reduction Strategy
The Monitoring Officer advised that this was not a district council function and should
be removed from the framework. Mrs A Moore commented that the Crime and
Disorder Act 1998 s17 was considered as part of the planning process. The
Constitution Working Party
2
9
14 May 2014
DRAFT
Monitoring Officer said that he would check whether this was a material consideration
for planning applications.
North Norfolk Local Development Framework (LDF)
The Committee agreed that this should stay in the policy framework.
Economic Development Plan
The Monitoring Officer advised that this was not a plan reserved by law to council
and it could become a Cabinet responsibility. Ms V Gay said that this document
provided a high-level overview of the economy of the district. The Committee agreed
that it should remain within the policy framework.
Housing Strategies
These were not reserved by law to Council and the Monitoring Officer advised that
they could be changed to a Cabinet responsibility. Mrs A Fitch-Tillett commented that
the Strategic Housing policy was high-level. It was agreed that this policy should
remain within the policy framework.
Medium Term Financial Strategy
The Committee agreed that this should just be entitled ‘Financial Strategy’ and
should remain within the policy framework.
Licensing Authority Policy Statements
The Monitoring Officer advised that this was one of the matters reserved by law to
the Council.
The Democratic Services Team Leader asked the Committee whether they would
like to include the new Growth Strategy within the policy framework. It was agreed
that it should be included.
AGREED
To recommend to Council that the following plans and strategies should be
included within the Policy Framework and that the Constitution should be
amended to reflect any changes:
Asset Management Plan
Performance Plan
Capital Strategy
North Norfolk Local Development Framework
Economic Development Plan
Strategic Housing Policy
Financial Strategy
Growth Strategy
Licensing Authority Policy Statements
Before proceeding to the next agenda item, the Chairman asked whether there were
any further items to be considered as part of the review of the constitution.
Constitution Working Party
3
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14 May 2014
DRAFT
Ms V Gay made reference to page 44, section 2 of the constitution ‘How are Cabinet
Meetings conducted’. She referred specifically to 2.3(vi) ‘up to half an hour for oral
questions by Councillors, which in special circumstances may be extended at the
Chairman’s absolute discretion’ and queried why this was not a standing item on all
Cabinet agendas. The Monitoring Officer replied that there was no reason why this
item should not be included on all cabinet agendas. The Democratic Services Team
Leader agreed to inform Cabinet at their next meeting that this would become a
standing item on all agendas.
Mrs A Moore queried whether there was a written protocol for the nomination of the
Chairman of the Council. This had traditionally sat with the leading Group of the
Council and there had been a proportional sharing of the role. Ms V Gay added that
many local authorities had a formula or system in place for allocating the role of
Chairman. The Monitoring Officer replied that the Local Government Act 1972 stated
‘to elect a Chairman’. No further detail was provided and there was nothing within the
constitution. He acknowledged that some councils had protocols in place but said
that he had never seen one written down.
7
FUTURE MEETING DATES
The Committee expressed a preference for meeting on a Wednesday. The
Democratic Services Team Leader said that she would circulate an updated list of
proposed meeting dates.
8
WORK PROGRAMME
The Committee agreed to review the role of the Judicial Board and how housing
appeals should be dealt with at their next meeting in September.
The meeting closed at 2.55 pm.
Chairman
Constitution Working Party
4
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14 May 2014
Agenda Item No____12________
Review of Discretionary Pension Policy Statements
Summary:
The introduction of the New Local Government Pension
Scheme (LGPS) from 1 April 2014 requires all scheme
employers to review their current discretionary policy
statements and publish new statements. This report
summarises the key changes and makes a
recommendation for the adoption of revised pension
policy statements.
Conclusions:
The revised policy statements sets out how the Council
will exercise the discretions outlined in the Local
Government Pension Scheme 2014.
Recommendations:
It is recommended that Council approves the
revised Pension Policy Statement attached at
Appendix A.
Cabinet member(s):
Ward member(s)
Contact Officer, telephone
and e-mail:
Cllr T FitzPatrick
All
Julie Cooke, 01263 516040
julie.cooke@north-norfolk.gov.uk
1.
Introduction
1.1
The introduction of the new Local Government Pension Scheme 2014 (LGPS)
on 1 April 2014 requires all scheme employers to review their existing
discretionary pension policy statements and publish new policy statements
which set out how they will apply their discretionary powers in relation to
certain provisions of the new scheme.
The pension regulations require that in preparing or making revisions to its
pension policy statements, the scheme employer must have regard to the
extent to which the exercise of any of its policies could lead to a serious loss
of confidence in the public service.
The Pension Policy Statements must now:-
1.2
1.3


Be updated to reflect the changes under the LGPS 2014
Remove any discretions which are no longer applicable under the
Regulations
1.4
1.5
The current policy statements are attached at Appendix B.
The proposed revised policy statements are attached at Appendix A.
2.
The Background
2.1
An independent review was undertaken by the Public Services Pensions
Commission into public sector pension provision.
The main recommendations of the Commission were:
2.2
12




2.3
2.4
3
That all public sector schemes should change from final salary
pension schemes to career average re-valued earnings schemes
(CARE)
Scheme retirement ages should be the same as state pension ages
There should be a cost sharing mechanism to provide for scheme
members to share increasing costs of pension provision with
employers
Existing rights of current scheme members should be protected
The Government accepted the Commission’s recommendations and tasked
the government departments responsible for each public sector pension
scheme to negotiate with the relevant employer representatives and unions
on the required changes to the respective schemes.
A new Local Government Pension Scheme has been agreed and came into
effect on 1 April 2014. Appendix C shows the main provisions of the LGPS
2014 compared with the previous scheme (LGPS 2008).
Significant changes to the LGPS 2014 include:






Normal pension age linked to state retirement age
Introduction of a 50/50 scheme of reduced employee contributions for
50% of the pension benefit
Move from final salary pension scheme to a career average scheme
(CARE)
Increasing contribution rates for many staff. The scale of contribution
rates are set nationally by the LGPS
Changed definition of pensionable pay to include non-contractual
overtime and additional hours worked by part time staff
Changes to the ‘vesting period’, the minimum period of scheme
membership that a member of staff must have to be entitled to a
pension benefit, increased from 3 months to 2 years. Staff who leave
with less than 2 years membership can have a refund of contributions
if they are not moving onto another local government post
4.
Discretions
4.1
Under the Regulations, the Council is required to state how it will exercise
certain discretions. These are referred to as ‘compulsory items’ and are
shown under points A-E of the revised policy statements. These discretions
also reflect those approved by the Council under the previous pension
scheme policies (compulsory items).
Under the non-compulsory items (points F-M) there are a number of key
changes as follows:-
4.2




The Absence Contribution Time Limit (previously Regulation 22(2))
has been removed under the new Regulations
The Adjudicator for Member Disagreements (Regulation 74(1)) has
been amended to the Council’s Monitoring Officer as the previous
adjudicator is no longer available
Members’ Contribution Rates (Regulation 9(3)) has been amended
and all staff have been written to confirming the changes in April 2014
A statement on the ‘50/50 option’ has been inserted under point I, so
that staff are aware of that option should they wish to utilise it
13
5.
Conclusion
5.1
A formal review of the Council’s discretionary pension policy statements is
required due to introduction of the new Local Government Pension Scheme
2014. Current discretions have been amended to reflect the correct regulatory
references and new additions or deletions have been inserted to comply with
the new scheme. UNISON have been consulted on the content of the new
policy and have confirmed they have no objections to the proposed changes.
The proposed new policy statements have also been reviewed by the Norfolk
Pension Fund to ensure they meet the provisions of LGPS 2014.
6
Financial Implications and Risks
6.1
There are no increased risks or resource implications as a result of setting
and publishing these statements.
7
Equality and Diversity
7.1
The Equality act 2010 places requirements upon all public sector bodies to
ensure that its policies and procedures promote equality, this document
supports that requirement. Also, as part of the statutory consultation on the
proposals for the new LGPS 2014, the Department for Communities and
Local Government published an Equality Statement for the new regulations. It
is therefore not considered that a separate equality impact assessment needs
to be drawn up by the Council.
14
Appendix A
Pensions, Retirement and
Discretionary Compensation Payments
- Policy Statements
Equalities Statement
North Norfolk District Council wishes to promote equality and has a number of
obligations under equality legislation. All employees are expected to adhere to
this procedure in line with these obligations. Reasonable adjustments or
supportive measures should be considered to ensure equality of access and
opportunity regardless of age, gender, gender reassignment, pregnancy,
maternity, race, ethnicity, sexual orientation, marriage, civil partnership,
disability, religion or belief.
General Introduction
Since 1997, Local Government Pension Scheme (LGPS) legislation has
required all local authority employers to publish a written Policy Statement on
how it will exercise the various discretions provided by the scheme; to keep it
under review; and to revise it as necessary.
This policy statement is outlined below:
In developing these Policy Statements it is important to clarify that:
a. The Policy Statements confer no contractural rights in relation to the
Local Government Pension Scheme and discretionary compensation
payments.
b. The Policy Statements may be changed by the Council at any time.
c. These policies should not restrict the Council’s discretion. There may
be circumstances where the Council may decide to make an exception
to any of these particular policies. Any exceptions to a policy contained
within these Policy Statements will only be made following consultation
with the Council’s Monitoring Officer.
It should be noted that any future changes to this policy statement will only
become effective one month after the revised policy statement is published.
The policies incorporated within this Policy Statement include:
1)
2)
3)
4)
General policy - retirement
Policy relating to flexible retirement
Statements relating to the exercise of discretionary powers under
the LGPS
Discretionary compensation payments policy
It is important in considering this document to note the following: All decisions relating to the operation of the policies outlined in this document
are delegated to the Corporate Leadership Team, Leader and Cabinet
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Member for Human Resources following consultation with the Council’s s151
Officer, Monitoring Officer and the Head of Organisational Development.
1)
General Policy - retirement
The Council’s policy relating to employee retirement is:
a. Employees who wish to retire from their employment are required to
give notice of their intended date of retirement to their manager in
writing. The length of notice required must be at least the same as the
notice required to resign from employment. However, employees are
encouraged to give an early indication of their planned retirement date.
b. Retirement from employment does not establish entitlement to either
occupational or state pension benefits. Equally this policy does not
change an employee’s entitlements as a member of an occupational
pension scheme. Employees who are members of the LGPS are
advised to seek advice about the impact of their planned retirement
date on their pension benefits. This is particularly important where the
employee is planning on retiring either earlier or later than their Normal
Retirement Age1.
c. Employees who are members of the LGPS can elect to retire and
receive their benefits between the ages of 55 to 75 (subject to the
provisions of this policy).
2)
Policy Relating to Flexible Retirement
Flexible retirement occurs where an employee draws their pension and
carries on working, either at a lower grade and or on reduced hours. It is
available to LGPS members who are aged 55 or over, and who with the
Council’s consent reduce their hours or grade. Subject to necessary
approvals, such employees will be able to draw their local government
pension whilst continuing to work. In addition they can remain in the LGPS
th
until the day before their 75 birthday, building up further benefits in the
scheme. In all cases, employees must receive advice as to how flexible
retirement will affect their net pay and pension entitlement. This is important,
as an employee’s pension will normally be actuarially reduced if paid before
their Normal Retirement Age.
1
Normal Retirement Age is the same as the employees State Pension Age – with 65 as the
earliest age.
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3)
Statement Relating to the Exercise of Discretionary Powers under
the LGPS
Since 1997, the LGPS has required the Council to issue a written policy
statement on how it will exercise the various discretions provided by the
scheme; to keep it under review; and to revise it as necessary.
These discretions are outlined below and it is compulsory for the Council to
make an individual decision for each of the first five discretions (a – e) and
outline these decisions in the Council’s Policy Statement. It is also a legal
requirement that the employer has regard to the extent to which the policy on
exercising these five discretions might lead to a serious loss of confidence in
public service. The remaining discretions are not compulsory but are
recommended by the Norfolk Pension Fund (F-M).
Compulsory Items as required under Regulation 60(1) of the LGPS
(Administration) Regulations 2013 and Regulation 66(1) of the LGPS
(Administration) Regulations 2007.
a)
Funding of Additional Pension: Regulation 16(2e) 16(4d)
An employer may fund wholly, or in part, a members additional pension
contract (APC). The payment can be paid by regular contributions or a
lump sum.
The Council will not exercise this discretion. However where an APC is used
to cover a period of unpaid leave North Norfolk District Council is required to
automatically pay 2/3rds of the cost with the member paying the rest providing
the APC request is made within 30 days of the member returning from leave.
b)
Awarding Additional Pension: Regulation 31
An employer may increase a member’s benefits by awarding additional
pension up to a maximum of £6,500 pa from April 2014.
The Council will not exercise this discretion.
c)
Flexible Retirement: Regulation 30(6)
An employer may give consent for a member aged 55 or more who
reduces their grade or hours of work (or both) to receive all or part of
their LGPS benefits immediately, even though they haven’t left its
employment. By taking their pension benefits early an employee may
incur a reduction in their benefits. In some cases there will be no
reduction for the employee and the cost of the early retirement will
therefore be borne by the Council.
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The Council has decided that:
 Flexible retirement will be allowed only in circumstances where it is
demonstrated to be in the Council’s long term interests
 Each case will be considered on its merits. Before a decision is made,
the Council must be informed of the full economic cost of granting
flexible retirement
(Note:- the above decisions are delegated to the Corporate Leadership
Team, Leader and Portfolio Member for Human Resources following
consultation with the Council’s s151 Officer and the Head of Organisational
Development.)
d)
Waiving of Actuarial Reduction: Regulation 30(8)
If the benefits payable on retirement before normal pension age would
normally be reduced for early payment, the employer may agree to
waive all or part of the reduction.
The Council has decided that: The waiving of actuarial reductions may be specifically applied to cases
which are being considered as an employer consent on compassionate
grounds
 Each case will be considered on its merits. Before a decision is made,
the Council must be informed of the full economic cost of waiving all or
part of the reduction
(Note:- the above decisions are delegated to the Corporate Leadership
Team, Leader and Portfolio Member for Human Resources following
consultation with the Council’s s151 Officer and the Head of Organisational
Development.)
e)
Early Payment of Pension: Regulation 30 of LGPS (Benefits,
Membership and Contributions) Regulations 2007 (2 parts to this)
(1) An employer may give consent for a member aged 55 or more who
has left its employment prior to April 2014 without an entitlement to
immediate LGPS benefits to receive them straight away regardless.
(2) If the benefits payable would normally be reduced for early payment,
the employer may agree to waive all or part of the reduction on
compassionate grounds.
The Council has decided that: Each case will be considered on its merits. Before a decision is made,
the Council must be informed of the full economic cost of waiving all or
part of the reduction
(Note:- the above decisions are delegated to the Corporate Leadership Team,
Leader and Portfolio Member for Human Resources following consultation
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with the Council’s s151 Officer and the Head of Organisational Development.)
Non-Compulsory Items in the 2013 Regulations
f)
Membership Aggregation: Regulation 22(7b)(8b)
A member who transfers from another LGPS employer, either directly or
after a break, must aggregate the two periods of membership provided
they do so while still an active member in the new post. The member has
twelve months from the aggregation to opt to keep their periods of
membership separate.
The Council requires any request to aggregate LGPS membership to be
made within the twelve months time limit.
g)
Shared Cost AVCs: Regulation 17(1)
An employer may contribute towards a Shared Cost AVC Scheme.
The Council will not contribute towards a Shared Cost AVC Scheme.
h)
Forfeiture of Pension Rights: 19(2), 91, 92, 93
If a member leaves as a result of a conviction for an offence in
connection with their LGPS employment or as a result of their own
criminal, negligent or fraudulent act in connection with that
employment, the employer has discretion (within the terms of these
regulations) to direct that all or part of their LGPS pension rights should
be forfeited and/or paid over to the employer or specified dependants of
the member.
The Council will exercise this discretion depending on the circumstances of
the case. These decisions are delegated to the Corporate Leadership Team,
Leader and Portfolio Member for Human Resources following consultation
with the Council’s s151 Officer, Monitoring Officer and the Head of
Organisational Development.
i)
Appointment
Regulation 74(1)
of
Adjudicator
for
Member
Disagreements
There is a three-stage dispute procedure for members who disagree
with any LGPS decision made by their employer. The first stage is
handled by an independent person appointed by the employer. Second
Stage appeals are dealt with by the administering authority, Norfolk
County Council. The third and final stage is an appeal to The Pensions
Ombudsman.
The Council appoints the Monitoring Officer as the independent person to
deal with the first stage of any disagreement between a LGPS member and
the Council.
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j)
Transfers of Pension Rights: Regulation 100(6)
A member who has previous pension rights in a different pension
scheme* may transfer them into the LGPS provided they opt to do so
within twelve months of joining it. The employer has discretion to
extend the twelve months time limit.
The Council will not use the discretion available to it to extend the twelve month
application period.
*This does not include rights in the LGPS, which are dealt with under f).
k)
Members’ Contribution Rates: Regulation 9(3)
Employers are required to allocate employees into the appropriate
contribution band for 2014/15 and every financial year from then on. If a
member’s pay moves into a different band during the financial year, the
employer has the discretion to implement the new band immediately.
The Council will use the contribution rate defined in the regulations and apply
it to staff who are members of the pension scheme in accordance with their
pensionable pay*. The contribution rate is assessed on a monthly basis based
on the employees pensionable pay.
*There is a new definition of pensionable pay in the regulations which includes
all payments made to an employee (with the exception of a limited few items)
including, but not limited to, non contractual overtime and/or additional hours.
l)
Temporary reduction in contributions – the 50/50 option
The 50/50 option is designed to be a short term temporary arrangement
during times of hardship, and allows employees to given written notice to pay
half the contributions and accrue pension benefits at half the normal rate. The
Council will pay contributions at the 100% rate in line with the regulations.
Non-Compulsory Items in the 2008 Regulations
m)
Membership Aggregation: Regulation 16(4)(b)(ii)
A member who transfers prior to 1st April 2014 from another LGPS
employer, either directly or after a break, may opt to aggregate the two
periods of membership provided they do so while still an active member
in the new post and within twelve months of joining.
The Council requires any request to aggregate LGPS membership to be
made within the twelve months time limit.
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4)
Discretionary Compensation Payments Policy (Required by
The Local Government (Early Termination of Employment)
(Discretionary Compensation) (England and Wales) Regulations
2006)
The Council can exercise certain discretions under the LGPS. In addition, if it
is necessary to declare posts redundant or consider early retirement, the
Council can compensate employees under the provisions outlined in the
above regulations.
Therefore, under this policy the Council will:
a)
In the case of redundancy operate with its general policy which is
outlined in the Redundancy policy
b)
Discretionary compensation for redundancy:- calculate redundancy pay
using the statutory redundancy calculator, the actual weekly rate of pay
multiplied by 1.5 weeks for each year of completed local government service
(up to a maximum of 45 weeks pay). This compensation will be payable in the
form of a lump sum with any statutory redundancy payment offset against the
discretionary award
c)
Where a business case has been agreed pay a one-off payment,
based on the merits of each individual case, up to a maximum permitted
under the new regulations (i.e.104 week’s pay calculated on a sum up to the
employees actual week’s pay). Only in exceptional cases would the payment
exceed 45 weeks pay (the maximum proposed for redundancy cases)
d)
The Council will aim to achieve a payback period of up to 3 years to
cover associated costs.
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Appendix B
Pensions, Retirement and
Discretionary Compensation Payments
- Policy Statements
Equalities Statement
North Norfolk District Council wishes to promote equality and has a number of
obligations under equality legislation. All employees are expected to adhere to
this procedure in line with these obligations. Reasonable adjustments or
supportive measures should be considered to ensure equality of access and
opportunity regardless of age, gender, gender reassignment, pregnancy,
maternity, race, ethnicity, sexual orientation, marriage, civil partnership,
disability, religion or belief.
General Introduction
Since 1997, Local Government Pension Scheme (LGPS) legislation has
required all local authority employers to publish a written Policy Statement on
how it will exercise the various discretions provided by the scheme; to keep it
under review; and to revise it as necessary.
This policy statement is outlined below:
In developing these Policy Statements it is important to clarify that:
a. The Policy Statements confer no contractural rights in relation to the
Local Government Pension Scheme and discretionary compensation
payments.
b. The Policy Statements may be changed by the Council at any time.
c. These policies should not restrict the Council’s discretion. There may
be circumstances where the Council may decide to make an exception
to any of these particular policies. Any exceptions to a policy contained
within these Policy Statements will only be made following consultation
with the Council’s Monitoring Officer.
It should be noted that any future changes to this policy statement will only
become effective one month after the revised policy statement is published.
The policies incorporated within this Policy Statement include:
1)
2)
3)
4)
General policy - retirement
Policy relating to flexible retirement
Statements relating to the exercise of discretionary powers under
the LGPS
Discretionary compensation payments policy
It is important in considering this document to note the following: All decisions relating to the operation of the policies outlined in this document
are delegated to the Corporate Leadership Team, Leader and Cabinet
Member for Human Resources following consultation with the Council’s s151
Officer, Monitoring Officer and the Head of Organisational Development.
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1)
General Policy - retirement
The Council’s policy relating to employee retirement is:
a. Employees who wish to retire from their employment are required to
give notice of their intended date of retirement to their manager in
writing. The length of notice required must be at least the same as the
notice required to resign from employment. However, employees are
encouraged to give an early indication of their planned retirement date
b. Retirement from employment does not establish entitlement to either
occupational or state pension benefits. Equally this policy does not
change an employee’s entitlements as a member of an occupational
pension scheme. Employees who are members of the LGPS are
advised to seek advice about the impact of their planned retirement
date on their Pension benefits. This is particularly important where the
employee is planning on retiring either earlier or later than the
retirement age of the LGPS which is 65.
c. Employees who are members of the LGPS can elect to retire and
receive their benefits from age 60 onwards. Pension benefits must be
drawn by the age of 75.
d. Employees aged between 55 and 59 may with the Council’s consent
retire earlier or opt for flexible retirement provided a full business case
is approved by CMT.
2)
Policy Relating to Flexible Retirement
Flexible retirement occurs where an employee draws their pension and
carries on working, either at a lower grade and or on reduced hours. It is
available to LGPS members who are aged 55 or over, and who with the
Council’s consent reduce their hours or grade. Subject to necessary
approvals, such employees will be able to draw their local government
pension whilst continuing to work. In addition they can remain in the LGPS
th
until the day before their 75 birthday, building up further benefits in the
scheme. In all cases, employees must receive advice as to how flexible
retirement will affect their net pay and pension entitlement. This is important,
as an employee’s pension will normally be actuarially reduced if paid before
age 65.
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3)
Statement Relating to the Exercise of Discretionary Powers under
the LGPS
Since 1997, the LGPS has required the Council to issue a written policy
statement on how it will exercise the various discretions provided by the
scheme; to keep it under review; and to revise it as necessary.
These discretions are outlined below and it is compulsory for the Council to
make an individual decision for each of the first four discretions (a – d) and
outline these decisions in the Council’s Policy Statement. It is also a legal
requirement that the employer has regard to the extent to which the policy on
exercising these four discretions might lead to a serious loss of confidence in
public service. The remaining discretions are not compulsory but are
recommended by the Norfolk Pension Fund (e – k).
Compulsory Items in the LGPS 2007 Regulations
a)
Awarding Additional Membership: B Regs, Regulation 12
An employer is allowed to increase a member’s benefits by awarding
additional membership up to a maximum of 10 years.
The Council has decided to use its discretion to enhance an employee’s
pension at the point of retirement in the following circumstances.
Where an employee is Retired or is made Redundant in the Interests of
the Efficiency of the Service, the Council will allow the employee to use the
whole of their compensation payable in accordance with the provisions of the
Discretionary Compensation policy (See Section 4) (less any redundancy
payment) to purchase permissible augmented years in the LGPS if they wish
to do this.
Such possible augmentation will not apply to an employee whose fixed term
contract comes to an end only if this can be objectively justified.
b)
Awarding Additional Pension: B Regs, Regulation 13
An employer is allowed to increase a member’s benefits by awarding
additional pension up to a maximum of £5000 per annum.
The Council will not use the discretion available to it to award additional
pension, other than that which results from augmentation referred to under
Regulation 12 above.
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c)
Flexible Retirement: B Regs, Regulation 18
An employer may consent to flexible retirement for a member aged 55 or
more who reduces their grade or hours of work (or both) to receive all or part
of their LGPS benefits immediately, even though they have not left its
employment.
The Council has decided that:
 Early release of benefits following reduced hours or salary will be
allowed only in circumstances where it is demonstrated to be in the
Council’s long term interests
 Before a decision is made, the Council must be informed of the full
economic cost of granting flexible retirement and of any financial and
non-financial benefits
If the benefits payable on flexible retirement would normally be reduced for
early payment, the employer may agree to waive all or part of the reduction.
The Council has decided that Each case will be considered on its merits. Before a decision is made,
the Council must be informed of the full economic cost of waiving all or
part of the reduction and of any financial and non-financial benefits
(Note:- the above decisions are delegated to the Corporate Leadership Team,
Leader and Portfolio Member for Human Resources following consultation
with the Council’s s151 Officer, Monitoring Officer and the Head of
Organisational Development.
d)
Early Payment of Pension: B Regs, Regulation 30
An employer may give consent for a member aged 55 or more who leaves its
employment without an entitlement to immediate LGPS benefits to receive
them straight away regardless.
The Council has decided that: Voluntary early retirement with immediate payment of benefits will be
allowed only in circumstances where it is demonstrated to be in the
Council’s long-term interests
 Before a decision is made in any case, the Council must be informed of
the full economic cost of granting early retirement and of any financial
and non-financial benefits
If the benefits payable would normally be reduced for early payment, the
employer may agree to waive all or part of the reduction on compassionate
grounds.
The Council has decided that: Each case will be considered on its merits. Before a decision is made,
the Council must be informed of the full economic cost of waiving all or
part of the reduction and of any financial and non-financial benefits
(Note:- the above decisions are delegated to the Corporate Leadership Team,
Leader and Portfolio Member for Human Resources following consultation
with the Council’s s151 Officer, Monitoring Officer and the Head of
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Organisational Development.
Non-Compulsory Items in the 2008 Regulations
e)
Absence Contribution Time Limit: A Regs, Regulation 22(2)
A member who has been away from work as a result of maternity, paternity or
adoption leave, industrial action (mainly strikes) or unpaid leave of absence
has the right to pay voluntary pension contributions to prevent any gap in
membership.
The request to do so normally has to be made with 30 days of returning to
work (or within 30 days of the last day of service if they do not return to work)
The Council will not use the discretion available to it to extend the 30 days
application period.
f)
Membership Aggregation: A Regs, Regulation 16(4)(b)(ii)
A member who transfers from another LGPS employer, either directly or after
a break, may opt to aggregate the two periods of membership provided they
do so while still an active member in the new post and within twelve months of
joining. The employer has discretion to extend the twelve months time limit.
The Council requires any request to aggregate LGPS membership to be
made within the twelve months time limit.
g)
Shared Cost AVCs: B Regs, Regulation 15(3)
Regulation 25(3)
and A Regs,
It is implicit in these two Regulations that an employer may contribute towards
a Shared Cost Additional Voluntary Contribution (AVC) Scheme, i.e. an AVC
Scheme into which the employer pays contributions as well as the member.
The Council has decided that a Shared Cost AVC Scheme be not set up1.
h)
Forfeiture of Pension Rights: A Regs, Regulations 47(2), 72, 73, 74
& 76
If a member leaves as a result of a conviction for an offence in connection
with their LGPS employment or as a result of their own criminal, negligent or
fraudulent act in connection with that employment, the employer has
discretion (within the terms of these five regulations) to direct that all or part of
their LGPS pension rights should be forfeited and/or paid over to the employer
or specified dependants of the member.
The Council will exercise this discretion depending on the circumstances of
the case. These decisions are delegated to the Corporate Leadership Team,
Leader and Portfolio Member for Human Resources following consultation
with the Council’s s151 Officer, Monitoring Officer and the Head of
Organisational Development.
i)
1
‘Specified
Person’
for
Member
Disagreements:
A
Regs,
To our knowledge, no Norfolk Pension Fund employer has set up a shared cost AVC
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Regulation 57(5)(c)
There is a three-stage dispute procedure for members who disagree with any
LGPS decision made by their employer. The first stage is handled by an
independent referee appointed by the employer. Second Stage appeals are
dealt with by the administering authority, Norfolk County Council. The third
and final stage is an appeal to The Pensions Ombudsman.
The Council has appointed:
Mr Chris Harding, MBE, LL.B, Solicitor, c/o Norfolk Police Authority,
Jubilee House, Falconers Chase, Wymondham, Norfolk, NR18 0WW
to resolve first stage appeals on its behalf.
j)
Transfers of Pension Rights: A Regs, Regulation 83(8)
A member who has previous pension rights in a different pension scheme
may transfer them into the LGPS provided they opt to do so within twelve
months of joining it. The employer has discretion to extend the twelve months
time limit.
The Council will not use the discretion available to it to extend the twelve
month application period.
k)
Members’ Contribution Rates: B Regs, Regulation 3(4)
Employers are required to allocate employees into the appropriate
contribution band when they become an active member of the pension
scheme. If a permanent material change to the employee’s terms and
conditions of employment would later move them into a different band in the
course of a financial year, the employer has discretion to change their
contribution rate.
As required by the Regulations, employees’ contribution bands will be
determined by the Council on the basis of their pensionable pay and
contributions deducted accordingly.
Contribution bands will be initially based on full time equivalent salaries and
will be determined at the beginning of each financial year. Salary will include
all pensionable elements of pay.
Where an employee receives an increase or decrease in their salary during
the course of a year (whether as a result of job evaluation, a promotion or
some other reason) and this involves them moving into a new salary grade,
their contribution banding will be reassessed and where appropriate will pay a
revised contribution rate.
An employee may request a reassessment if they believe that their banding
assessment was inaccurate or if they are aware of a factor that had not been
taken into account.
n.b. In the first instance employees should assist Human Resources in
correctly
determining their banding before invoking the dispute
procedure referred to in this Policy Statement.
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4)
Discretionary Compensation Payments Policy (Required by The
Local
Government
(Early
Termination
of
Employment)
(Discretionary Compensation) (England and Wales) Regulations
2006)
The Council can exercise certain discretions under the LGPS. In addition, if it
is necessary to declare posts redundant or consider early retirement, the
Council can compensate employees under the provisions outlined in the
above regulations.
Therefore, under this policy the Council will:
a)
In the case of redundancy operate with its general policy which is
outlined in the Employee adjustment Procedure
b)
Discretionary compensation for redundancy:- calculate redundancy pay
using the statutory redundancy calculator, the actual weekly rate of pay
multiplied by 1.5 weeks for each year of completed local government
service (up to a maximum of 45 weeks pay). This compensation will be
payable in the form of a lump sum with any statutory redundancy
payment offset against the discretionary award
c)
Where a business case has been agreed pay a one-off payment,
based on the merits of each individual case, up to a maximum
permitted under the new regulations (i.e.104 week’s pay calculated on
a sum up to the employees actual week’s pay). Only in exceptional
cases would the payment exceed 45 weeks pay (the maximum
proposed for redundancy cases)
d)
Consider the immediate payment of benefits (without any discretionary
compensation) to an employee, who requests voluntary retirement
between ages 55 and 60. This will be determined on a case by case
basis subject to a full costed business case being submitted and
agreed by CLT in consultation with Cabinet, s151, Monitoring Officer
and the Head of Organisational Development (as per section D of the
pensions policy)
e)
The Council will aim to achieve a payback period of up to 3 years to
cover associated costs.
Version No: 1.2
Human Resources Service
28
June 2012
Review date: June 2013
Appendix C
Main Provisions of the LGPS from 2014
The table below shows the main provisions of the proposed new Local Government Pension Scheme (LGPS 2014) for membership from 1 April 2014 compared with those of the current scheme
(LGPS 2008). These changes apply only in England and Wales (not Scotland or Northern Ireland):
LGPS 2014
LGPS 2008
Basis of Pension
Career Average Revalued Earnings (CARE)
Final Salary
Accrual Rate
1/49th
1/60th
Revaluation Rate
Consumer Prices Index (CPI)
Based on Final Salary
Pensionable Pay
Pay including non-contractual overtime and additional hours
Pay excluding non-contractual overtime and non-pensionable additional hours
Employee Contribution Rates
See LGPS 2014 Employee Contribution Rate
See LGPS 2008 Employee Contribution Rate
Contribution Flexibility
Yes, members can pay 50% contributions for 50% of the pension benefit
No
Normal Pension Age
Equal to the individual member's State Pension Age
65
Lump Sum Trade Off
Trade £1 of pension for £12 lump sum
Trade £1 of pension for £12 lump sum
Death in Service
Lump Sum
3 x Pensionable Pay
3 x Pensionable Pay
1/160th accrual based on Tier 1 ill health pension enhancement
1/160th accrual based on Tier 1 ill health pension enhancement
Death in Service Survivor
Benefits
Tier 1 - Immediate payment with service enhanced to Normal Pension Age Tier 1 - Immediate payment with service enhanced to Normal Pension Age (65)
Tier 2 - Immediate payment with 25% service enhancement to Normal
Pension Age
Tier 2 - Immediate payment with 25% service enhancement to Normal Pension
Age (65)
Tier 3 - Temporary payment of pension for up to 3 years
Tier 3 - Temporary payment of pension for up to 3 years
Indexation of Pension in
Payment
CPI
CPI (RPI for pre-2011 increases)
Vesting Period
2 years
3 months
Ill Health Provision
29