Publish your discretions policy

What’s a discretions policy?

A discretions policy is a document that shows how you’ll make pension decisions. The LGPS rules state that every employer must have a published discretions policy. Most employers choose to publish their policy on their website. While you should have regard for your discretions policy you shouldn’t constrain your decision by always using a discretion in a certain way.

New employers

All new employers must have shared their policy with us within 3 months of joining the LGPS. To help you write your policy, we’ve created a list of the relevant LGPS discretions for you. You can use our discretions template directly or as a checklist.

Working out the costs

Each decision you make may have a cost attached. For example, if a member decides to retire early, their pension would usually be reduced. This is because it will be paid for longer than planned. You could decide to waive these reductions in part or in full. You can use i-Connect to help you work out the cost of each decision.

 Existing employers

All employers should review their discretions policy at least once a year. Please use our Scheme changes document to check if any rules have changed since your last review.