Presentation on theme: "Www.kentpensionfund.co.uk Change in Procedures Now going to give further clarification on how this impacts on the information you send to the pension section."— Presentation transcript:
Change in Procedures Now going to give further clarification on how this impacts on the information you send to the pension section. 1.
New Starts Still need to be notified via - Download i.e. from some of our larger employers - New start spreadsheet which is on the website Still need separate pension record per post Details on spreadsheet/download still to include pay and hours 2.
50/50 Section Member is able to pay half rate contributions and will accrue half benefits Need to ‘opt in’ to this section – could be short term solution instead of opting out of main section due to financial difficulties Election from beginning of next available pay period Sickness or auto re-enrolment could result in member moving back into main section. Required to notify pension section at year end for what period of year been in what section 3.
Changes Hour changes Under new regulations benefits not calculated by hours! HOWEVER –there are protections for members who were aged 55 at 31 st March 2012 i.e. DOB before 31 st March 1957 So – we will require hour changes for certain members of the scheme. 4.
Changes Hour changes are needed for members whose date of birth is before 31 st March The changes spreadsheet is being amended so that it will prompt you if the change in hours is needed for the members pension record. We will be sending out a list of all members who were active at 31 st March 2014 for you to confirm that the hours we had at this date are correct. This will be sent out after year end has been completed. 5.
Changes Address changes – as is Name/partnership – as is Pensionable Pay – this is no longer needed In summary - The changes spreadsheet will be amended to take into account what changes the pension section need to be notified of. 6.
Sickness Period of reduced/nil pay sickness starts and finishes before 31 st March Still require notification as is the current procedure Period of reduced/ nil pay sickness starts before 31 st March 2014 and finishes after 1 st April Require notification that the member has commenced sickness but do not need notification on their return. Period of reduced/ nil pay sickness starts and finishes after 1 st April No notification is needed 7.
Child Related Leave Period of leave starts and finishes before 31 st March Still require notification as is the current procedure Period of leave starts before 31 st March 2014 and finishes after 1 st April Require notification that the member has commenced child related leave. - Will require notification when the member returns if they have a period of unpaid leave they do not elect to pay contributions for. 8.
Child Related Leave Period of leave starts and finishes after 1 st April Require notification the dates of any periods of unpaid leave where they have not elected to pay pension contributions on it. Forms to be amended so you can inform us of dates. Change for calculation of unpaid leave Will be more detailed examples and notes on the website to assist. 9.
Authorised Absence Period of absence starts and finishes before 31 st March Still require notification as is the current procedure Period of absence starts before 31 st March 2014 and finishes after 1 st April Require notification that the member has commenced a period of authorised absence. - Will require notification when the member returns of the dates of any period of unpaid leave they have not elected to pay contributions for. 10.
Authorised Absence Period of authorised leave starts and finishes after 1 st April No longer requirement to pay contributions on first 30 days. - Require notification of the dates of any periods of unpaid leave where they have not elected to pay pension contributions for that period. - Forms to be amended so you can inform us of dates. - Change for calculation of unpaid leave - Will be more detailed examples and notes on the website to assist. 11.
Other Absence Jury service - This is considered to be a period of authorised absence. Therefore process same as per previous slide Reserve Forces Leave and Strike - Details to follow on action to be taken and forms to be completed. Please contact your liaison officer for how to proceed with any current cases. 12.
Additional Contributions Things staying the same - All existing contracts will continue Contributions to be deducted on Final Salary Pensionable Pay - Still buying service if relevant - AVC where the contract started before 1 st April 2014 the member will still continue to pay a maximum of 50% 13.
Additional Contributions Things changing for new contracts from 1 st April Will now be purchasing an amount of pension (can be shared cost with employer – policy required) - Used for periods of unpaid leave – i.e. for child related leave and authorised unpaid leave - Can pay by lump sum - Members who commence an AVC from 1 st April 2014 can pay 100% (after required deductions) 14.
Repaying for Period of Unpaid leave When a member goes on a period of unpaid leave, either child related or authorised unpaid leave, under the new regulations the member has 30 days from when they return to elect to pay for the period of unpaid leave and for it to be on a shared cost basis. 1/3 employee 2/3 employer If they respond after 30 days then the member will pay full cost YOU WILL NEED TO INFORM THEM OF THIS AT THE START OF THE ABSENCE AS THERE IS NO DISCRETION TO EXTEND THIS DEADLINE. 15.
Repaying for Period of Unpaid leave The calculation of what benefits need to be paid for is straightforward! - 1/49 x APP for the period of unpaid leave if the person was in the main section and 1/98 x APP for the period if they were in the 50/50 section What is not clear yet is - Who does the calculation Employer or employee - How this figure is to be repaid The regulations suggest over minimum of 1 year or by lump sum at the Admin Authority discretion. 16.
Opting Out of the LGPS Under 3 months - member still considered as if had not been in the scheme. The return of contributions paid via payroll - Complete opt out spreadsheet - Copy of members election to opt out - Copy of opt out letter Over 3 months – member could be eligible for refund, paid by Pensions Section or a deferred benefit. - Complete opt out spreadsheet - Copy of members election to opt out - Copy of opt out letter - PLD 17.
Leaver from the LGPS after 31 st March 2014 Under 2 years -If eligible and can have a refund of their pension contributions, this would be paid by Pension Section 2 or more years or not eligible for a refund - Deferred benefit In all cases we require - Leaver notification form - PLD - Copy of leaver letter sent to employee 18.
Retirements after 31 st March 2014 To be entitled to immediate payment of benefits must have attained age 55 with 2 years ‘qualifying service’. Those with service of 3 months to 2 years, we are expecting to not be entitled to an immediately payable benefit. Reasons are - Voluntary Age 55+ (employer consent not needed) but employer could waive actuarial reductions. - Redundancy - Business efficiency - Flexible retirement with or without waiver of actuarial reductions - Ill health (still three tiers) 19.
Retirements after 31 st March 2014 In all cases require - Retirement notification form - PLD - Copy of retirement letter sent to employee - Retirement Declaration form completed by employee - Ill Health certificate (if relevant) - Relevant certificates 20.
Estimates after 31 st March 2014 Still the same - Request via employers - 20 working days - Not more than 1 estimate in a calendar year - The expected date of retirement must be within 6 months of the date of the request. - We will advise you when we are to recommence calculating them again. 21.
Policies Still require policy on - Reg 16 (2)(e) and (4)(d) Funding of additional pension i.e. Shared Cost APC by an employer for a member, this is not when paying shared cost for unpaid leave. - Reg 30 (6) - Flexible retirement - Reg 30 (8) - Waiver of actuarial reductions – due to flexible or on age 55 voluntary retirement - Reg 31 - Award of additional pension (replacement of augmentation) to active member and retiring members 22.
Policies Non compulsory but recommended - Reg 9 (3) – How/when going to assess contribution rate - Reg 17 (1) - Shared cost AVC - Reg 22 (7) & (8) – Deadline for aggregation of LGPS membership - Reg 100 (6) - Right to transfer in of previous non LGPS pension rights Any others? Still awaiting clarification. 23.
Policies Will send out template (based on KCC’s Policy) to insert name on and complete - Required to send statement of policy discretions to administering authority by 30 th June Must make this available to scheme members - Keep the statement under review and up to date - Inform administration authority when any changes made 24.
At Year End (31 st March 2015) Still require each year to inform us of members contributions Exact format still to be finalised Will be training nearer the time to inform you exactly what is required Will be required to provide both Final Salary Pensionable Pay and CARE Pensionable Pay, per member per post 25.
Break Please help yourself to tea and coffee and we resume back in 15 minutes 26.