LGPS 2014 current position The Regulations Finalised - ‘Main’ regulations – now combine Admin regs and BMC –The Local Government Pension Scheme (2013) Regulations Cover the mechanics of the Scheme (i.e. contributions, benefits, administration) Eagerly anticipated – Transitional Regulations Cover the main points that the current membership will hold dearest to their collective heart (e.g. underpins, rule of 85, etc.) Still to be seen – Governance and Financial Scheme Boards in addition to Committees, cost sharing, etc.
Progress towards 2014 PROJECT 2014 Introduced to co-ordinate all streams of effort including: –SYSTEMS –COMMUNICATIONS –TRAINING –TECHNICAL –GOVERNANCE
What we know What’s stayed Unchanged (or virtually unchanged) Eligibility and entry Banded contributions (OK, a few more) Member additional contributions Ill health Still three tier structure Redundancy Deaths
What we know What’s stayed… …but changed Refunds and opting out Early leavers Unpaid leave –No mandatory 30 day period –Shared cost repayments (apart from strikes) –Possible simplification of reserve forces leave Discretions and IDRP
What we know What’s gone… Blanket age 65 NRA – now based on individual SPA Employer consent from age 55 –Uncertainty due to wording of protections for over 60 applications 3 month vesting Up to 100% of AVCs as cash!
What we know What’s new… 50/50 Three definitions of pay Monthly reporting
What we know What’s new 50/50 Half member conts – half benefits –BUT - still full employer contributions (savings assessed at valuation) EARCs ceases SARCs continue (more on absence later) Employer needs to inform member of affect on benefits AE issues –re-enrol to full section Sickness absence –revert to full section as soon as on nil pay policy on first X days of sick?
What we know What’s new Pay definitions Three definitions of pay –Post 2014 – which now includes non-pensionable overtime –‘Protected Final pay’ - for underpin and final salary link Could potentially include non-contractual overtime! –‘Assumed pensionable pay’ - for absences and ill health post 2014
What we know What’s new Monthly reporting –Does not get rid of year end requirements
What this means All –Staff need to be familiar with terminology –Separate records for every employment more important than ever Payroll –systems need to be 2014 ready 50/50 Reporting – monthly and year end HR –Interfaces with payroll need to be 2014 ready –Discretionary policies need to be presented to Committee stage in time for 2014 –Analyse number of non-contractual hours that will become pensionable!
What we don’t know Transitional regulations Major area of member interest Still issues to be resolved, mostly regarding pay and protections Final pay final pay as written contains non-contractual overtime for past service as well as future! Underpin Reliant upon definitions of pay Rule of 85 Position and protections for current “age 60” elections Absolute timetable for the above Bits and pieces – e.g. post leaving payments
Where we’re going Communications Bulletins, employer website Outlook Material for intranets Current guides and future guides Employer handbook IDRP and policy formation Other guides Utilised? Forthcoming e-survey to enable improved communications
Where we’re going Training Beginning early 2014 Areas covered still to be confirmed Any suggestions? Put them in the survey