Section 3.4 - Scheme Flexibilities - Reserved decisions to be referred to the Scheme Manager

Rule (Regulation)

Description

21(1)(a)(ii) and 21(2)(b)

Opting back in, effective date.

Where a person who has had a partnership account decides to become an active member, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which the option is exercised. Where a person who had not had a partnership pension account decides to become an active member, their option is effective from the first day of the first pay period after the date on which the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

24(1)(a) and 24(1)(b)

Opting out before the end of one month, extending the deadline.

A person who opts out of the scheme within one month of their start date or their automatic enrolment date is taken to have never been in the scheme. In exceptional circumstances the Scheme Manager may extend the one month deadline.

25(2)(b) and 25(3)(b)

Opting out after one month, effective date.

Where an active member decides to opt out of the scheme, their option is effective from the first day of the first pay period after the date on which the option is exercised. Where an active member decides to join a partnership pension account, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which   the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

26(2)(b), 26(3) and 26(4)

Remuneration counting as pensionable:

• Employers need approval from the   Scheme Manager for a new permanent allowance to be treated as pensionable. 
• Bonuses and allowances not paid on a permanent basis can only be treated as pensionable if the employer has approval from the Scheme Manager. 
• The Scheme Manager can also agree the value of other payments that may be regarded as pensionable.

27(2)(b) and 27(3)(e)

Assumed earnings.

Where a person is on an unpaid absence, in some circumstances, their pension benefits are calculated by using assumed pay. Assumed pay normally replicates the pension they received before they started their unpaid absence. The Scheme Manager may increase the amount of pay if the employer gives good reasons for doing so.

107(4)

Withhold adult dependant pensions, where there is a death bed marriage.

The Scheme Manager may decide not to pay an adult dependants pension if the couple married less than six months before the member’s death.

136(2)(b)

Employer contributions.

An employer can ask the Scheme Manager to allow them to pay the member’s contributions. This would be for example where the Scheme Manager has agreed that an unpaid absence may reckon, see 27(3)(e).

156 and 157

Special terms for compulsory transfer of employment.

The Scheme Manager may vary the application of the scheme rules where a group of staff are being bulk transferred into the Civil Service or schedule 1 body. This is to ensure that the scheme offers comparable terms to the sending scheme. Normally, the Actuaries involved in the transfer terms will identify which areas require a Scheme Manager decision.

165 and 167

Forfeiture.

• Where a member has been convicted of offences under the Official Secrets Act that results in imprisonment of 10 or more years, the Minister may withhold pension benefits. 
• If the Minister decides that a member has committed an offence connected to their employment which has been gravely injurious to the State or resulted in a loss of confidence in the public service, their pension benefits can be withheld. The Scheme Manager decides the extent to which the member’s benefits are forfeit. 
• A proportion of the member’s benefits may be withheld where they have a monetary obligation to their employer. This monetary obligation must be the result of their criminal, negligent or fraudulent act or omission.

Schedule 1, Part 1, Paragraph 1

Decide what third parties may buy added pension.

This is normally where the member has given time to Voluntary Service Overseas. In return, that organisation buys added pension for the member. However, the Scheme Manager decides whether another organisation can buy added pension for a member.

Schedule 1, Part 2,Chapter 1, Paragraph 8(1)

Allow an employer or third party to buy added pension on behalf of the member.

There may be exceptional circumstances where an employer may wish to buy added pension for a member. Employers will need to make a business case to the Scheme Manager. If the Scheme Manager agrees the proposal, they will also decide the cost of the added pension. A third party may wish to buy added pension for a member.

Schedule 1, Part 4, Chapter 2, Paragraphs 39(5), 40(4) and Chapter 3, 44(4)

EEPA

A member whose EEPA option ceases (either through the member ceasing pensionable service, the member cancelling the option or at the member’s request during a period of assumed pay) may not resume periodical payments without the approval of the Scheme Manager.

Please Note: for a member who ceases pensionable service, they must first re-enter pensionable service for their option to resume. Scheme Manager approval is only required if the gap in pensionable service is more than five years.

Rule

Description

A.2(2)(b), (3)(a), (4)(b) and (5)(b)

Remuneration counting as pensionable:

• Employers need approval from the Scheme Manager for a new permanent allowance to be treated as pensionable. 
•  onuses and allowances not paid on a permanent basis can only be treated as pensionable if the employer has approval from the Scheme Manager. 
• The Scheme Manager can also agree the value of other payments that may be regarded as pensionable.

A.3(1) and A.3(2)(g)

Assumed earnings.

Where a person is on an unpaid absence, in some circumstances, their pension benefits are calculated by using assumed pay. Assumed pay normally replicates the pension they received before they started their unpaid absence. The Scheme Manager may increase the amount of pay if the employer gives good reasons for doing so.

A.11(2)

Disapply earnings cap.

The amount of final pensionable earnings used to calculate any linked final salary benefits is restricted to a permitted maximum. The Scheme Manager may allow the permitted maximum to be disregarded in exceptional circumstances.

B.4(2)

Extend time limit to backdate opting out.

Where a member intends to opt out within three months, the Scheme Manager may extend the time limit in exceptional circumstances.

B.6(5) and B.6(6)

Opting back in, effective date.

Where a person who has had a partnership account decides to become an active member, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which the option is exercised. Where a person who had not had a partnership pension account decides to become an active member, their option is effective from the first day of the first pay period after the date on which the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

Please note: the effective date where a person who had a partnership pension account decides to become an active member of nuvos, was   amended with effect from January 2018 (as detailed in EPN518). The nuvos rules, as stated, will be updated to reflect this change at a future date.

B.7(3) and B.7(4)

Opting out effective date.

Where an active member decides to opt out of the scheme, their option is effective from the first day of the first pay period after the date on which the option is exercised. Where an active member decides to join a partnership pension account, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

Please note: the effective date where an active member decides to join partnership, was amended with effect from January 2018 (as detailed in EPN518). The nuvos rules, as stated, will be updated to reflect this change at a future date.

D.8(1)

Allow an employer or third party to buy added pension on behalf of the member.

There may be exceptional circumstances where an employer may wish to buy added pension for a member. Employers will need to make a business case to the Scheme Manager. If the Scheme Manager agrees the proposal, they will also decide the cost of the added pension. A third party may wish to buy added pension for a member.

D.8(7)

Decide what third parties may buy added pension.

This is normally where the member has given time to Voluntary Service Overseas. In return, that organisation buys added pension for the member. However, the Scheme Manager decides whether another organisation can buy added pension for a member.

F.1(7)

Withhold adult dependant pensions, where there is a death bed marriage.

The Scheme Manager may decide not to pay an adult dependants pension if the couple married less than six months before the member’s death.

G.13 and G.14

Special terms for compulsory transfer of employment.

The Scheme Manager may vary the application of the scheme rules where a group of staff are being bulk transferred into the Civil Service or schedule 1 body. This is to ensure that the scheme offers comparable terms to the sending scheme. Normally, the Actuaries involved in the transfer terms will identify which areas require a Scheme Manager decision.

J.5

Disapply abatement

The pension of a member who is re-employed in the scheme is normally subject to abatement. In exceptional circumstances, the Scheme Manager may decide that abatement will not apply or apply to a lesser extent. The rule specifically refers to ‘special circumstance’ so an employer would have to make a robust business case.

K.2

Forfeiture.

• Where a member has been convicted of offences under the Official Secrets Act that results in imprisonment of 10 or more years, the Minister may withhold pension benefits. 
• If the Minister decides that a member has committed an offence connected to their employment which has been gravely injurious to the State or resulted in a loss of confidence in the public service, their pension benefits can be withheld. The Scheme Manager decides the extent to which the member’s benefits are forfeit.
• A proportion of the member’s benefits may be withheld where they have a monetary obligation to their employer. This monetary obligation must be the result of their criminal, egligent or fraudulent act or omission.

Rule

Description

A.1(4)

Agree pension age other than 60.

The Scheme Manager would normally exercise this discretion where a group of staff were being transferred into the Civil Service or schedule 1 body. The discretion would be exercised in conjunction with rule F.13. The purpose of exercising the discretion is to ensure transferring staff have comparable pension rights when they join the Civil Service.

The Scheme Manager could exercise discretion where an employer wanted to recruit someone with specialist skills. However, an employer would have to make a very robust business case for the Scheme Manager to agree a pension age lower than 60.

A.2(2)(b), A.2(3)(a), A.3(1)

Remuneration counting as pensionable:

• Employers need approval from the Scheme Manager for a new permanent allowance to be treated as pensionable. 
• Bonuses and allowances not paid on a permanent basis can only be treated as pensionable if the employer gets approval from the Scheme Manager. 
• Where a person is on an unpaid absence, in some circumstances their pension benefits are calculated by using assumed pay. Assumed pay normally replicates the pension they received before they started their unpaid absence. The Scheme Manager may increase the amount of pay if the employer gives good reasons for doing so.

A.3(2)(e)

Unpaid leave counting as reckonable.

The employer may ask the Scheme Manager to count as reckonable a period of unpaid leave. The Scheme Manager would only agree to the absence reckoning in exceptional circumstances.

B.1(5)(d)

Exceptionally allow premium membership.

The Scheme Manager may agree to a person joining premium. This discretion would normally be exercised as part of a bulk transfer of staff and where TUPE terms apply.

However, there may be some rare circumstances for example on re-employment where the Scheme Manager may exercise the discretion on an individual basis. Employers would need to make a robust business case as this would be exceptional treatment.

B.1A(2)(a)

Allow former by analogy staff to join premium.

Where a person leaves an analogous scheme and joins the Civil Service within 28 days, the Scheme Manager may agree that the person joins premium.

B.5(5) and B.5(5A)

Opting back in, effective date.

Where a person who has had a partnership account decides to become an active member, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which the option is exercised. Where a person who had not had a partnership pension account decides to become an active member, their option is effective from the first day of the first pay period after the date on which the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

Please note: the effective date where a person who had a partnership pension account decides to become an active member of premium, was amended with effect from January 2018 (as detailed in EPN518). The premium rules, as stated, will be updated to reflect this change at a future date.

B.6(3) and B.6(4)

Opting out effective date.

Where an active member decides to opt out of the scheme, their option is effective from the first day of the first pay period after the date on which the option is exercised. Where an active member decides to join a partnership pension account, their option is effective from the first day of the first pay period after the period of two months beginning with the date on which the option is exercised. However, in exceptional circumstances the Scheme Manager may allow such options to become effective earlier.

Please note: the effective date where an active member decides to join partnership, was amended with effect from January 2018 (as detailed in EPN518). The premium rules, as stated, will be updated to reflect this change at a future date.

C.2A(2)(a)

Employer contributions.

An employer can ask the Scheme Manager to allow them to pay the member’s contributions. This would be for example where the Scheme Manager has agreed that an unpaid absence may reckon, see rule A.3 (2) (e).

C.11(1), (2) and C.11(2A)

Employer buying added years on behalf of a member.

There may be exceptional circumstances where an employer may wish to buy added years (reckonable service) for a member. Employers will need to make a business case to the Scheme Manager. If the Scheme Manager agrees the proposal, they will also decide the cost of the added years.

C.1.5(1), (3)(a)

Employer wishes to buy added pension for a member.

A third party may wish to buy added pension for a member.

This is normally where the member has given time to Voluntary Service Overseas. In return, that organisation buys added pension for the member.

D.3(3)(d)(ii) and M.1(1)(a)

Determining if a scheme is analogous.

This is for the purpose of rule B.1A (2) (a) above.

D.7A(1)

Exceptional treatment for those whose pay has been reduced due to restructuring.

Members whose pay has reduced may have their pension calculated in a way that gives their accrued pension rights some protection. It is for the Scheme Manager to decide if the circumstances of the pay restructuring merit this treatment.

E.1(3)

Withhold adult dependants’ pension where there is a death bed marriage.

The Scheme Manager may decide not to pay an adult dependants pension if the couple married less than six months before the member’s death.

F.13 and F.14

Special terms for compulsory transfer of employment

The Scheme Manager may vary the application of the scheme rules where a group of staff are being bulk transferred into the Civil Service or schedule 1 body. This is to ensure that the scheme offers comparable terms to the sending scheme. Normally the Actuaries involved in the transfer terms will identify which areas require a Scheme Manager decision.

H.5

Disapply abatement.

The pension of a member who is re-employed in the scheme is normally subject to abatement. In exceptional circumstances, the Scheme Manager may decide that abatement will not apply or apply to a lesser extent. The rule specifically refers to ‘special circumstance’ so an employer would have to make a robust business case.

J.3

Forfeiture.

• Where a member has been convicted of offences under the Official Secrets Act that results in imprisonment of 10 or more years, the Minister may withhold pension benefits. 
• If the Minister decides that a member has committed an offence connected to their employment which has been gravely injurious to the State or resulted in a loss of confidence in the public service, their pension benefits can be withheld. The Scheme Manager decides the extent to which the member’s benefits are forfeit. 
• A proportion of the member’s benefits may be withheld where they have a monetary obligation to their employer. This monetary obligation must be the result of their criminal,  negligent or fraudulent act or omission.

Rule

Description

1.6aa

Fluctuating emoluments.

Bonuses and allowances not paid on a permanent basis can only be treated as pensionable if the employer has approval from the Scheme Manager.

2.10(ii) and (iv)

Reckoning of reserved forces service and voluntary public service.

The Scheme Manager may agree unpaid absence for one of these purposes will reckon.

2.24

Grant of added years by employer.

There may be exceptional circumstances where an employer wishes to buy added years of reckonable service for a member. Employers will need to make a business case to the Scheme Manager. If the Scheme Manager agrees the proposal, they will also decide the cost of the added years.

3.15

Early payment of pension in compelling personal circumstances.

The Scheme Manager may bring a preserved award into payment on an unreduced basis where the member, who is over their minimum pension age, has personal circumstances that prevent them from working. This would not generally include ill health as other rules apply in that circumstance.

3.24e

Exceptional treatment for those whose pay has been reduced due to restructuring.

Members whose pay has reduced may have their pension calculated in a way that gives their accrued pension rights some protection. It is for the Scheme Manager to decide if the circumstances of the pay restructuring merit this treatment.

3.26a

Disapply abatement.

The pension of a member who is re-employed in the scheme is normally subject to abatement. In exceptional circumstances, the Scheme Manager may decide that abatement will not apply or apply to a lesser extent. The rule specifically refers to ‘special   circumstance’ so an employer would have to make a robust business case.

6.35 and 6.35za

Special terms for compulsory transfer of employment.

The Scheme Manager may vary the application of the scheme rules where a group of staff are being bulk transferred into the Civil Service or schedule 1 body. This is to ensure that the scheme offers comparable terms to the sending scheme. Normally, the Actuaries involved in the transfer terms will identify areas that require a Scheme Manager decision.

8.2

Forfeiture

• Where a member has been convicted of offences under the Official Secrets Act that results in imprisonment of 10 or more years, the Minister may withhold pension benefits. 
• If the Minister decides that a member has committed an offence connected to their employment which has been gravely injurious to the State or resulted in a loss of confidence in the public service, their pension benefits can be withheld. The Scheme Manager decides the extent to which the member’s benefits are forfeit. 
• A proportion of the member’s benefits may be withheld where they have a monetary obligation to their employer. This monetary obligation must be the result of their criminal, negligent or fraudulent act or omission.

14.6(1)

Allow employer or third party to buy member added pension.

This is similar to employers buying added years, rule 2.24.

14.6(5)

To decide what third parties are allowed to buy added pension.

A third party may wish to buy added pension for a member. This is normally where the member has given time to Voluntary Service Overseas. In return that organisation buys added pension for the member.

Appendix 1

Pensionable allowances.

Employers need approval from the Scheme Manager for a new permanent allowance to be treated as pensionable.