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1 Year End Process 2013 / 2014

2 This year’s key date The deadline for submitting your Year End Return is 11 April 2014 If your Return is not received by this date your employees may not receive an Annual Benefit Illustration as their records may not be accurate Any Annual Allowance test may also be inaccurate

3 The Year End Return Excel Workbook – E-mailed to your nominated contact Workbook contains the following worksheets:- –Read Me Section –Employer Details –Pen4A –Pen4B –Pen4C –Checklist and Balancing

4 Read Me…… This section provides a brief explanation of the other worksheets contained within the workbook There are quick links to the other worksheets

5 Employer Details Select your employer name from the drop down menu Complete the name of the person completing the Year End Return, the employer address and the name of the payroll provider

6 Pen 4 A The main part of the return List all employees who have paid pension contributions during 2013/2014 Basic scheme contributions, additional scheme contributions and Additional Voluntary Contributions (AVC’s) need to be shown in the relevant column as monetary amounts Remember to show any changes in contribution rate (same line) More than one contract – separate lines for each

7 Pen 4 B This form is used by the Treasury & Investments Team Provides a summary of all contributions paid for the year – employee and employer The format is similar to the Pen4/1 which should be completed on a monthly basis The total employee contributions stated on this form should equal those quoted on the Pen4A – don’t forget any additional contributions

8 Pen4C This form should be completed if you have employees who have no fixed contractual hours Provide details of the total number of hours worked during the year and the number of weeks the employee is paid for We will calculate the average number of hours worked by the employee over the year

9 Checklist & Balancing Complete the checklist – select the relevant answer from the drop down list Your answer will highlight any areas that require further attention The balancing is automatic – your input on the Pen4A must balance with the information input on the Pen4B

10 Other tips for completing the forms…. Small red triangles can be found on the Pen4A, Pen4B and the Pen4C – place your cursor over these and additional notes will be displayed All sheets need to be completed even if it is a nil return (e.g. Pen4C)

11 New Starters & Leavers Do you have any employees who have joined or left the scheme during the year? Are details of these members included on the Pen4A? Have you completed the New Start spreadsheet or leaver forms and sent the information to pensions? The New Start spreadsheet and leaver forms can be found on our website:-

12 Before sending your Return to Pensions……. Make sure the return balances – check the Checklist & Balancing tab Check that the totals on the Pen4A and Pen4B match the monies paid across to the Treasury and Investments Team – any differences will be queried unless there is an explanation Ensure your return is sent back to the Pension Section ( from your nominated E-mail

13 What happens when your Return is received…… We Check….. –That all the tabs have been completed and are in the correct format –The totals balance –That payments have been made to the Investments Team through the year

14 What happens when your Return is received continued…… We will send a confirmation e-mail once your Return has been verified by the Pension Section The information on the Pen4A is then downloaded onto each members’ pension record – this process is called ‘Contribution Posting’

15 How is the information downloaded Using the National Insurance Number and the Payroll Number provided on the Pen4A the system indentifies a match on the Pensions Database. Where a match is identified the basic contributions, additional scheme contributions and the contribution rate are ‘posted ‘ to the members’ record Remember – it is vitally important that the National Insurance Number and the Payroll Number are quoted accurately

16 What happens if a matching record cannot be found? A report is created showing all errors Reasons for an error are….. –Different National Insurance Number –Different Payroll Number –No record for the member Any errors will be referred back to yourselves via e-mail Any errors will cause a delay in the processing of your Year End Return

17 What happens once the year end return is processed? Each record is updated with a pensionable pay figure calculated from the contributions posted This process is referred to as Re-Org (re-organisation of Pensionable Pay) The Pensionable Pay figure is used to generate the Annual Benefit Illustration

18 How Re-Org works Takes into account the following information that you have told us: –Contributions paid in 2013/2014 –Contribution rate or rates paid over the year –Number of hours worked and any changes during the year From this information a pensionable pay figure as at 31 March 2014 is calculated

19 Calculating the Pensionable Pay Total Contributions paid x 100/contribution rate = Pensionable Pay £1000.00 (conts) x 100 / 6.5 = £15384.61 Pensionable pay is used in:- calculation of a members’ pension benefit on the Annual Benefit Illustration

20 Why is an Annual Benefit Illustration important? Now that we have established why pensionable pay is so important…………..

21 What happens once the Pensionable Pay is calculated by the Pensions Section? The Pensionable Pay figure as at 31 March 2014 is compared with the figure calculated for 31 March 2013 or the start pay is later The comparison is based on parameters set by the Pension Section in line with guidance from the Scheme Actuary If the Pensionable Pay figure falls outside of these parameters an error report is generated

22 The Error Reports…. These reports will be sent to you via e-mail in an excel format There are four error reports:- –A – pensionable pay is less than start pay –B – pensionable pay is less than previous year –C – pensionable pay has increased by more than 20% –D – no contributions have been received for the year You may get all 4, some or none of the above

23 The A Report The pensionable pay at 31 March 2014 is less than start pay Only generated for those members’ who started during 2013/2014 Possible reasons that may generate an error:- –Incorrect start pay –Incorrect start date –Incorrect starting hours –Change in hours since joining –Rounding

24 The B Report The pensionable pay at 31 March 2014 is less than the pensionable pay at 31 March 2013 Possible reasons that may generated an error:- –Individual has left the scheme and no leaver paperwork has been sent –Incorrect hours or a change in hours during the year –Maternity leave –Career Break –Unpaid leave –Sickness –Previous year’s pay was higher due to a merit award –Arrears of contributions paid in previous year

25 The C Report The pensionable pay at 31 March 2014 has increased by more than 20% since the previous year Possible reasons that may generate an error:- –Incorrect hours or a change in hours during the year –Additional payments or Merit Award –Promotion –Acting up pay –Contributions being incorrectly deducted on overtime

26 The D Report No contributions have been received for a member Possible reasons that may generate an error:- –Employee with no fixed hours who has not worked –Joined the scheme at the end of the financial year and was first paid in April –Returning Officer – no election duties –Career Break –Left the scheme and no leaver package has been sent to pensions

27 How to avoid queries Remember to tell the Pension Section of any changes to Scheme Members contracts when they happen throughout the year Make sure the correct contributions are being deducted

28 Why do we do the Year End process? It is a statutory requirement Ensures scheme members records are accurate Annual Benefit Illustrations Annual Allowance testing Actuarial reasons – data is required for various calculations such as FRS17 / IAS19

29 2014!! Next Year – New Regulations – Same process We will still carryout the Year End Process however some of the information we require will be different. Next year you will need to provide us with the pensionable pay figure – the pension section will not be calculating it

30 Important Reminders Year End Returns started being despatched week commencing 10 February 2014 Deadline for submitting Year End Return is 11 April 2014 Make sure your figures balance Make sure any changes to scheme members’ contracts have been sent to the Pension Section Make sure we have been informed of all New Starters and leavers

31 Sending your Year End Return The e-mail address for sending your completed Year End Return:-

32 Contact Information Claire Silvester – 01622 694680 Scheme Events & Member Communication Consultant Karen Brooker – 01622 223513 Communications & Support Officer Treasury & Investments Team – 01622 694625

33 Employer Liaison Contacts Nicky Beeching – 01622 694734 Julie Lock – 01622 694765 Nick Lockyer-Fincken – 01622 223579 Jules Brown – 01622 694712 Joyce Chalk – 01622 696635

34 And Finally…… Thank you for listening and good luck with your Year End Return Remember, if you are unsure, please give us a call And don’t forget to come to our training next year for the 2014 process!!

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