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Guidance on the Abatement Policy
The LGPS Regulations require that each Pension Fund Administering Authority must formulate and keep under review a policy on pension abatement.
Pension abatement is the extent, if any, to which a Scheme member’s pension payment is reduced or suspended when the member re-enters a new employment under which they are again eligible for membership of the LGPS.
Under the current LGPS Regulations 2013, effective from 1 April 2014, pension abatement has been removed. However, under former Regulations still in force, abatement can still be applied. Until 31 March 1998 abatement was mandatory but between 1 April 1998 and 31 March 2014 it became discretionary and an Administering Authority is still required to issue a statutory policy as to how it will apply the abatement rules.
When formulating an abatement policy, the Pension Regulations require that the Administering Authority has regard to:
Since 2002, the Administering Authority has adopted a policy not to apply abatement for many reasons:
The attached policy statement re-affirms the administering authority’s decision not to apply abatement.