‘New Look’ Local Government Pension Scheme 11 MARCH 2009 PENSION LIAISON OFFICERS’ GROUP...
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Transcript of ‘New Look’ Local Government Pension Scheme 11 MARCH 2009 PENSION LIAISON OFFICERS’ GROUP...
‘New Look’ Local Government Pension Scheme
11 MARCH 2009
PENSION LIAISON OFFICERS’ GROUP (PLOG)
‘New Look’ Local Government Pension Scheme
WELCOME / INTRODUCTIONS
• Peter Summers – Hymans Robertson
• David Broome – Head of Pensions
• Nick Nicholson – Pension Benefits & Compliance Manager
• Andy Cunningham – Employer Relationship Manager
‘New Look’ Local Government Pension Scheme
AGENDA1. Introduction (David Broome) 2. Current financial situation and the 2010 Valuation (Peter Summers)3. Lean Review (David Broome)4. New Charging Policy (David Broome)5. Technical Points (Nick Nicholson)
5.1 Eligibility of casuals5.2 The new employee contribution bands5.3 Ill Health reviews for tier 35.4 Pay rises following the departure of an employee
6. Website updates and Employers’ guide (Andy Cunningham) 7. Data Cleansing Exercise (Andy Cunningham)8. Any other business
8.1 Staff Farewell9. Dates and venues for future meetings
‘New Look’ Local Government Pension Scheme
2. CURRENT FINANCIAL SITUATION AND THE 2010 VALUATION
Peter Summers to present
‘New Look’ Local Government Pension Scheme
3. LEAN REVIEW
Starters• Complete some time ago
Leavers• Complete (except system notes and audit)• Key point – no need for you to send Decisions Forms anymore
Changes• Close to completion• Big issue – we need changes forms for all changes all the time!
‘New Look’ Local Government Pension Scheme
3. LEAN REVIEW
Retirements/Deferred into Pay• Just starting• Probably most significant area!
Benefits• Benefits for all:
– Members (more customer friendly, understandable, etc)– Yourselves (more user friendly, less work, only necessary data)– Ourselves (do more with same resources)
• However, we need to move to far more electronic data transfer – we’re piloting!
‘New Look’ Local Government Pension Scheme
4. NEW CHARGING POLICY
• New to share costs fairly and equitably amongst employers in the Fund
• Principle – employers should only pay for costs they see some benefit from, not for activities that only relate to a single employer, such as:– A new employer joining the Fund– An employer leaving the Fund– An employer restructuring– Bulk transfers in/out to/from other funds– The reassessment of bond values
‘New Look’ Local Government Pension Scheme
4. NEW CHARGING POLICY
• Actuarial, legal and other direct costs will be charged on an actual cost basis, but not officers’ time
• Usually the employer themselves will pay, but in outsourcing/transfer situations, we will typically look to the body making the transfer
• We’re happy to give estimates before work starts
• Start date 1 April 2009
• Andy will be contacting you soon
‘New Look’ Local Government Pension Scheme
5.1 LGPS ELIGIBILITY OF CASUALS
• All F/T and P/T of “scheduled bodies” (e.g. local authorities) are automatically entered into the Scheme.
• Employees of “resolution bodies” (e.g. town & parish councils) only eligible if employer resolves.
• Employees of “admission bodies” eligible under terms of admission agreement.
• “Casuals” eligible if MO* contract > 3 months.• NOMO “casuals” only eligible if offered and accept work
every day for 3 months.• (*MO = “mutual obligation”)
‘New Look’ Local Government Pension Scheme
5.2 BANDED CONTRIBUTION RATES 2009Rates 2009 (Confirmed)
Band Range Contribution Rate
1. £0-£12,600 5.5%
2. £12,601 to £14,700 5.8%
3. £14,701 to £18,900 5.9%
4. £18,901 to £31,500 6.5.%
5. £31,501 to £42,000 6.8%
6. £42,001 to £78,700 7.2%
7. More than £78,700 7.5%
‘New Look’ Local Government Pension Scheme
5.2 BANDED CONTRIBUTION RATES 2009Application
• Look at members’ pay and determine appropriate contribution rate for 2009/10.
• Need only notify member if band different.
‘New Look’ Local Government Pension Scheme
5.3 ILL-HEALTH REVIEWS FOR TIER 3
• Review by employing authority.• Check if “gainful employment”* has been obtained.• If yes, notify WPF to cease pension.• Pension ceases in any case after 3 years.
‘New Look’ Local Government Pension Scheme
5.4 Backdated Pay Awards
• If an employee has already left/retired before a pay award is agreed and is paid arrears of pay.
• Send revised retirement form to WPF with amended final pay.
‘New Look’ Local Government Pension Scheme
6. WEBSITE UPDATES AND EMPLOYERS’ GUIDE
Overall goalWebsite to be clear, easy to navigate, up to date and informative
with substantial information for employers and members alike.
Recent updates• Electronic and paper starter, leaver and change forms• Pension remuneration calculators and guidance• Employee contribution bands for 2009• Eligibility of new employees to enter the LGPS• Technical updates• Employer discretions templates and guidance• PLOG dates
‘New Look’ Local Government Pension Scheme
6. WEBSITE UPDATES AND EMPLOYERS’ GUIDE
In the next couple of days• Employers’ guide
Coming Soon• Cessation information and guidance• More detailed procedural information• Charging Policy• FAQs • Any other information arising from Employer queries
‘New Look’ Local Government Pension Scheme
7. DATA CLEANSING EXERCISE
• Background• Process and information required from smaller and medium
size employers• Process for larger employers
‘New Look’ Local Government Pension Scheme
8. ANY OTHER BUSINESS
• 9.1 Staff Farewell• 9.2 Questions?
‘New Look’ Local Government Pension Scheme
9. Dates/Venues of forthcoming meetings
Date and Time Venue
Wednesday, 24th June 2009, 2:30pm Devizes Town Hall, St John's Street, Devizes
Wednesday, 16th September 2009, 2:30pm The Chestnut Room, County Hall, Trowbridge