GAD have issued a note, dated 6 October 2008, clarifying the definition of minimum pension age in the LGPS. The content of the note is relevant to contractors and letting authorities where a broadly comparable scheme has, or will be, offered to transferred staff from the LGPS.
In relation to transfers of staff from the LGPS, one of the requirements for a scheme to be certified as broadly comparable to the LGPS is that the minimum pension age in the contractor's scheme must be no higher for any individual than it would have been, taking into account past events during membership of the LGPS up to the point of transfer, if the individual had subsequently remained in the LGPS.
The minimum pension age is often referred to in LGPS guidance as the Critical Requirement Age (CRA). CRA is defined, for each relevant period of service of each member, as the earliest age at which the member is entitled as of right to immediate payment of the benefits accrued during that period of service with no reduction for early payment.
GAD is issuing the note to ensure that contracting authorities and contractors involved in transfers of staff from the LGPS are aware that it is the contracting authority's responsibility to ensure that they provide contractors with accurate details of such minimum pension ages for all individuals, and/or ensure that they have sufficient information to do it themselves.
Action for contractors with existing LGPS GAD Passports
The note should be appended to all LGPS passport certificates issued prior to 6 October 2008 when they are presented to contracting authorities on bidding for work. We have provided a link to the note below.
A LGPS GAD Passport is valid only if the contracting authority provides the administrators of the contractor's scheme either with a full and accurate schedule of the relevant set of CRAs for all transferring members, or with sufficient information for the administrators of the contractor's scheme to determine and then apply these CRAs in accordance with all relevant LGPS Regulations.
Contractor's should ensure that their scheme administrator's have this information and if not contact the contracting authority.
Action for contracting authorities
Contracting authorities are advised that they should not accept any passport issued before 6 October 2008 without GAD's note attached to it.
Contracting authorities will need to be satisfied that arrangements have been established to ensure that the administrators for the contractor's scheme can correctly identify the relevant CRA for each transferring member under all relevant LGPS Regulations.
Please follow this link to the GAD note from GAD's website.