Pensions Forum 23 February 2010
Agenda Ill Health Retirement update Regulation Changes Outsourcing Issues Valuation / Data Quality Pensions Section Performance and Volumes Service Level Expectations New web site Contribution bands Pensions Increase High Earner taxation / benefit restrictions Current Issues Pay cut - must take place after 1 April 2008
Ill Health / GAD Update The Pensions Section will shortly be checking that all Medical Advisers on the approved list are still current The approved list will then be available to all employers to use on a “Pool” basis rather using specific advisers Approval for further advisers will be restricted Pay cut - must take place after 1 April 2008
Ill Health Type GAD Analysis of Ill Health retirements December 2009 Pay cut - must take place after 1 April 2008
Ill Health Age Distribution GAD Analysis of Ill Health retirements December 2009 Pay cut - must take place after 1 April 2008
Ill Health Regional Differences GAD Analysis of Ill Health retirements December 2009 Pay cut - must take place after 1 April 2008
Regulation Changes Dec 2009 Changes to the meaning of “Pensionable Pay: JE / Single status one off compensation payments not pensionable Clarity on Final Pay Reductions: up to 13 years Option to convert unfunded benefits into LGPS Benefits (re-introduced) Pay cut - must take place after 1 April 2008
Regulation Changes Facility to purchase additional survivors benefits for Nominated Cohabiting partners Pension Services will be writing to members in this category shortly Pay cut - must take place after 1 April 2008
Outsourcing Contracts Pension Scheme and employee considerations CLG have produced admitted body guidance which is available via their website: http://www.communities.gov.uk/ Pay cut - must take place after 1 April 2008
Outsourcing Contracts Pension Scheme and employee considerations Pension scheme information must be included in tender documentation A report must be prepared by the scheme actuary the cost of this is approximately £6000 Pension Services can supply a standard data collection spreadsheet for this purpose Pay cut - must take place after 1 April 2008
Valuation / Data Quality The Pension Fund 3 yearly valuation will take place this year, in addition: are reviewing all LGPS pension scheme data for “Cost Share” analysis. GAD have issued stringent guidance re data quality and the deadlines for returns has been set in the scheme regulations Timescales for year end returns this year are very tight Pay cut - must take place after 1 April 2008
Valuation / Data Quality Year end data must be with Pension Services by 09 April 2010 Data investigation enquiries from Pension Services will require priority treatment Expanded Year end return instructions will been issued very shortly If sufficient demand is received a training session in Stafford will be held for Payroll Sections during March Pay cut - must take place after 1 April 2008
Pensions Section Performance Service Standards The Pensions Section has been continuously striving to deliver an improved service and faster turnaround times for scheme members and employers……….. Pay cut - must take place after 1 April 2008
Pensions Section Performance Pay cut - must take place after 1 April 2008
Pensions Section Performance Workload Volume The section has seen a substantial increase in the volume of cases processed in the past 12 months……….. Pay cut - must take place after 1 April 2008
Pensions Section Performance Pay cut - must take place after 1 April 2008
Service Levels from employers To maintain a high level of service the section requires timely submission of information from scheme employers Pay cut - must take place after 1 April 2008
Service Levels from employers The following show the average length of time a termination form is received after a scheme members date of leaving for all employers and also for the larger employers. There is a large variation between the very best and worst turnaround times………… Pay cut - must take place after 1 April 2008
Service Levels from all employers Pay cut - must take place after 1 April 2008
Service Levels from larger employers Pay cut - must take place after 1 April 2008
Service Levels from employers In order to provide scheme members with the highest possible levels of service the Pension Section would like to minimise employer lead delays to essential processes as far as possible Notices can be sent directly to pensions.employers@staffordshire.gov.uk The section is happy to offer any assistance you may require in order to streamline your notification processes Pay cut - must take place after 1 April 2008
Staffordshire Pension Fund web site A new web site has been launched for the Staffordshire Pension Fund at: www.staffspf.org.uk Pay cut - must take place after 1 April 2008
Staffordshire Pension Fund web site Pay cut - must take place after 1 April 2008
Staffordshire Pension Fund web site As well as expanded member and fund information the site now includes an “Employer” Section This can be accessed via password access, details have been previously issued to HR and payroll sections Pay cut - must take place after 1 April 2008
Staffordshire Pension Fund web site Currently the employer section includes an on line version of the procedure guide. Very shortly all employer forms in regular usage will be available in “on-screen” format Pay cut - must take place after 1 April 2008
Salary contribution bandings Due to negative RPI to September 2009 CLG have announced that there will be no index linking of the current bands this year From the previous consultation on banding equality CLG have stated it is still possible changes to bands could still be made a very short notice Pay cut - must take place after 1 April 2008
Pensions Increase April 2010 Again due to negative RPI to September there will be no increase on Pensions or Deferred Benefits this year 0% Pay cut - must take place after 1 April 2008
High Earners – Tax Changes April 2010 Tax changes: Reduction in personal allowance for those earning over £100,000 (Pension contributions are offset against income when calculating this restriction) New tax band of 50% for annual incomes of more than £150,000 Pay cut - must take place after 1 April 2008
High Earners – Tax Changes Restrictions on new AVC contributions for employees earning more than £130,000 p.a. Please contact Pension Services Pay cut - must take place after 1 April 2008
Current Issues Pay cut - must take place after 1 April 2008
Current issues Challenges facing the LGPS Affordability Public Envy New Scheme? Change in Government? Pay cut - must take place after 1 April 2008
Current issues Challenges facing the LGPS Possible outcomes: Greater share of costs to be borne by the scheme member Career average structure Change to accrual rate Benefits capping for higher earners Pay cut - must take place after 1 April 2008
Further Information Staffordshire Pension Fund web site: www.staffspf.org.uk e-mail: pensions.enquiries@staffordshire.gov.uk Telephone (01785) 278222 Pay cut - must take place after 1 April 2008
Questions?