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Programme details

The details shown below relate to the training programme prior to April 2008. The programme is currently being revised in the light of the recent changes.

CERTIFICATE IN LOCAL GOVERNMENT PENSIONS ADMINISTRATION

Stage One

1. Counting Scheme Membership

1.1. History of service and membership
Introduction of Non contributory and contributory service
How non contributory counts and when it can be uprated
Introduction and use of reckonable and qualifying service
Membership for part time members
Introduction of membership
1.2. How scheme membership is accumulated and what membership counts towards
in the calculation of benefits
in determining entitlement to immediate benefits
in determining the need to reduce benefits under the "85 Year Rule"
in determining "general qualification for benefits"
Membership for a part time member including a member working term time
Effect on membership of breaks in service

2. Entitlement to Benefits

2.1. Age retirement
Normal retirement date
2.2. Redundancy and ill health retirement
Entitlement to take benefits on redundancy and health grounds
2.3. Entitlement to take early retirement
Leaving early with employer’s consent (discretion)
Flexible retirement options
85 year rule
Leaving before normal retirement date
Working beyond age 65
2.4. Entitlement to deferred benefits and refunds of contributions
General qualification for benefits
When deferred benefits are payable
When a refund of contributions is payable

3. Contributions to LGPS

3.1. Employer Contributions and how they are determined
Actuarial valuation of the pension scheme
3.2. Scheme Member Contribution Rates
Normal contribution rates
lower rate rights
3.3. Breaks in contributions
Unpaid leave
Maternity leave
Strike days
3.4. Calculation of a refund of contributions
3.5. Definition of pensionable pay

4. Calculation of Basic Retirement Benefits

4.1. Calculation of Final Pay
4.2. Calculation of scheme membership
4.3. Calculation of annual pension and lump sum retiring allowance
4.4. Calculation of actuarial deductions under the "85 Year" rule
Calculation of CRA
4.5. Calculation of enhanced membership (on ill health grounds)
4.6. Calculation of the life time allowance

5. Benefits payable following death of a scheme member who is subject to the 1997 Regulations

5.1. Entitlement to and calculation of death grants
5.2. Entitlement to partner’s and children’s long and short term pension
Introduction of partner’s pension
Eligible partner
Post retirement marriage
Introduction of children’s pension
Definition of a child
Eligible children
Discretionary policy on widower’s buy back and cohabitation
5.3. The calculation of both partner’s and children’s long and short term pensions
Basic pension
Children’s minimum pension
When interest becomes payable on death benefits

6. Historical Developments to the LGPS

6.1. Key stages in the development of the LGPS
Introduction of funded schemes
Introduction of Widow’s, widower’s and children’s pensions
Changes to entitlement to benefits
6.2. The Local Government Pension Scheme 1997 regulations
LGPS 1997 Regulations
Transitional regulations
Discretions
Different types of employer
6.3. How the LGPS is affected by other legislation
Pensions Act 1995
Social Security Acts
Finance and Tax Legislation
Compensatory regulations
Welfare and Reform Pensions Act 1999
Civil Partnership Bill
Gender Recognition Act 2004
6.4. How changes are made to the LGPS including recent changes
Statutory instruments
Pension sharing and earmarking
2004 amendments
Civil partnerships
2006 amendments

6 ELEMENTS

24 CRITERIA

Stage Two

1. Adjustments to Basic Benefits

1.1. Understanding of all Adjustments to basic retirement benefits
Index linking of public service pensions
Modification
Reduction to lump sum or membership in respect of pre 72 service
Reduction of membership in respect of pre 06 earnings cap
Abatement of re-employed pensioners
Conversion of pension to lump sum
Earmarking and pensions sharing
Commutation of trivial pensions
Compensatory added years
Exceptional ill health
1.2. The calculation of adjustment to basic retirement benefits
Index linking
Flat rate modification
Reduction to lump sum or membership in respect of pre 72 service
Reduction of membership in respect of pre 06 earnings cap
Abatement
Conversion of pension to lump sum
Compensatory added years
Exceptional ill health

2. Increasing Pension Benefits

2.1. The increase of scheme membership by employing authority
2.2. Understanding and calculation of all aspects of an added years contract
Eligibility
Duration of contract
Maximum purchase
Using tables to calculate the cost of added years
Benefits gained from contract
Effect of previous regulation 54
Part time employee’s
Early cessation
Medical Declaration forms
2.3. An understanding of Freestanding AVC’s and in-house AVC’s
Legislative history
Accumulating a fund
Purchasing an annuity
Provision to take AVC as lump sum
Provision of death cover
How the AVC fund is used at retirement
Shared cost AVC’s
2.4. How AVC funds can be used within the LGPS
Use of AVC to purchase scheme membership
Use of AVC to purchase pension in LGPS
2.5. Stakeholder pensions and concurrent personal pension plans (PPPs) and the LGPS

3. LGPS and the State Second Pension

3.1. Knowledge of the State Second Pension (S2P)
Introduction of SERPS
Introduction of S2P
3.2. The Guaranteed Minimum Pension (GMP)
Meaning of GMP
GMP Liability
Discharge of GMP liability
3.3. Effect of GMP on Pensions Increases
Effect of pre April 88 GMP
Effect of post April 88 GMP
3.4. Non Effective GMPs
When a GMP is non-effective
Implications of non-effective GMP
3.5. The re-valuation of GMPs under Section 148 Orders
3.6. Contracted out rights after 6/4/97
Meaning and effect of 92B rights

4. Transferring between Pensions Schemes

4.1. The meaning and implication of a “cash equivalent transfer value” and membership credit
The right to a CETV or membership credit
What the CETV represents
Implications to the member of a membership credit
4.2. The types of Scheme which can transfer to and from the LGPS
Club
Non club
Personal Pension Plans
Buy Out Bonds
Bulk transfers
4.3. The significance of "relevant dates"
4.4. Transferring contracted out liability
GMP
92B rights

5. Calculation of Inter-Fund Adjustments

5.1. Background to inter-fund adjustments
Introduction of IFA’s
April 1998 developments
5.2. The calculation of inter-fund adjustments
Basic calculation
Interest on basic calculation

5 ELEMENTS

19 CRITERIA

DIPLOMA IN LOCAL GOVERNMENT PENSIONS ADMINISTRATION

An understanding of all of the criteria covered at Certificate Level is expected of Diploma candidates.

Unit 1. Effects of other legislation and the ability to understand, and interpret LGPS Regulations

1.1. The application of the Local Government Pension Scheme 1997 Regulations
The standard regulations
Impact of the LGPS transitional Regulations
1.2. Ability to extract information from regulations
1.3. Key developments in the LGPS
Pensions Sharing
Councillor members
2004 amendment regulations
Internal Disputes Resolution Procedure
Gender Recognition
Civil Partnerships
April 2006
Finance Act
1.4. Role of other relevant bodies
CLG
TPAS
Pensions Regulator
Pension Ombudsman

Unit 2. Detailed Retirement Benefit Calculations

2.1. How service/membership counts and how its used in the calculation of pension benefits
How non contributory, reckonable, qualifying and scheme membership count
Calculation of service/membership
2.2. The detailed calculation of all retirement benefits
Exceptional ill health
Enhanced period for members with changes in hours
Flexible retirements
Allowances and protections (HMRC)
2.3. The implications of individuals having membership in respect of more than one employment
Concurrent employment
Combining benefits
2.4. Pay and Final Pay
What should be included in final pay calculations
Final pay periods
Effects of certificates of protection
2.5. The effects of Pensions Sharing legislation
Calculation of pension debit
Calculation of pension credit

Unit 3. Contracting Out of the State Second Pension

3.1. Contracted out liability before and after 6th April 1997
3.2. Effect of GMPs on pensions increase
3.3. Effective and non-effective GMPs
Calculation involving non-effective GMPs
3.4. Re-valuation of GMPs
Section 148
Increments
3.5. Implications of Anti-franking

Unit 4. Transferring Pension Benefits

4.1. Principles of transferring pension benefits to and from other Pension scheme
History of transfer values
Implications of contracting out
Pension sharing legislation
Effects of the 85 year rule on transfers
Transfer’s and AVC’s
Procedures relating to transfers to overseas
4.2. Calculation of cash equivalent transfer values and membership credits
4.3. Calculation of contracted out rights
Section 92B rights
GMP’s

Unit 5. Death Benefits

5.1. Eligibility for death grants under current and previous legislation
5.2. Eligibility for spouse’s long and short term pensions under current and previous legislation
5.3. Eligibility for children’s long and short term pensions under current and previous legislation
5.4. The Ability to assess and calculate all of the benefits which are due following the death of any active, deferred or retired scheme member under current and previous legislation

Unit 6. Increasing Scheme Benefits

6.1. Purchasing ‘added years’
Calculation of added years contract
Early cessation of contract
Part time added years contract
6.2. The use of stakeholder and concurrent personal pensions to Increase individual pension benefits
6.3. The options available to scheme members with in-house AVC arrangements when they leave the LGPS
Purchasing an Annuity
Using AVC fund to purchase scheme membership or pension
Options in respect of the lump sum

Unit 7. Detailed Adjustments to Retirement Benefits

7.1. The detailed calculation of all adjustments to basic retirement benfits
Modification (including participating and flat rate)
Minimum pensions (GMP’s and Requisite benefits)
Pensions increase
Actuarial increases and Actuarial reductions in pension
Commutation of small pensions
7.2. Re-employment of pensioner members
Abatement of pensions
Re-assessment of compensatory added years on cessation of second employment
7.3. Payments outside the LGPS
Injury allowance
Payment of gratuities in respect of non Pensionable service

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