LPFA Pensions Update - London Pensions Fund … Pensions Update A newsletter for LPFA employers...
5
LPFA Pensions Update A newsletter for LPFA employers London Pensions Fund Authority May 2014 Issue Highlights: ► July FRS17/IAS19 ► Monthly Returns ► LGPS 2014 ► LGPC Bulletin Contact us If you would like more information regarding the services we offer or would like to discuss your requirements with us in more detail then please contact us on: Tel: 020 7369 6000 www.lpfa.org.uk/employers www.yourfund.org.uk July FRS17/IAS19 LPFA recently contacted all employers to check whether they would require a FRS17/IAS19 report as at 31 July 2014. Following discussions with our actuary, we expect reports to be available by 31 August 2014. The cost of obtaining a standard FRS17/ IAS19 report for employers is £605.00 (+VAT) which includes LPFA staffing costs. *Please note that the standard report does not contain a valuation of unfunded liabilities; this along with any other additional work required in producing the report or after receipt of the report will also incur further charges by Barnett Waddingham and the LPFA. Details of these additional costs can be found in the relevant sections of the attached FRS17/IAS19 request form. It is also essential that your auditors highlight any questions or queries they are aware of prior to 1 July 2014 when we will submit all data to our actuary. If LPFA has not received your form by this date then we may be unable to provide a report for your organisation. If you should have any queries, please do not hesitate in contacting Courtney Hamilton- Brown in the first instance on Tel: 020 7369 6083 Email: [email protected]
Transcript of LPFA Pensions Update - London Pensions Fund … Pensions Update A newsletter for LPFA employers...
LPFA Pensions UpdateA newsletter for LPFA employers
London Pensions Fund Authority
May 2014
Issue Highlights July FRS17IAS19
Monthly Returns
LGPS 2014
LGPC Bulletin
Contact us
If you would like more information regarding the services we offer or would like to discuss your requirements with us in more detail then please contact us on
Tel 020 7369 6000wwwlpfaorgukemployerswwwyourfundorguk
July FRS17IAS19LPFA recently contacted all employers to check whether they would require a FRS17IAS19 report as at 31 July 2014
Following discussions with our actuary we expect reports to be available by 31 August 2014 The cost of obtaining a standard FRS17 IAS19 report for employers is pound60500 (+VAT) which includes LPFA staffing costs Please note that the standard report does not contain a valuation of unfunded liabilities this along with any other additional work required in producing the report or after receipt of the report will also incur further charges by Barnett Waddingham and the LPFA Details of these additional costs can be found in the relevant sections of the attached FRS17IAS19 request form
It is also essential that your auditors highlight any questions or queries they are aware of prior to 1 July 2014 when we will submit all data to our actuary If LPFA has not received your form by this date then we may be unable to provide a report for your organisation
If you should have any queries please do not hesitate in contacting Courtney Hamilton- Brown in the first instance on Tel 020 7369 6083 Email CourtneyHamilton-Brlpfaorguk
Monthly ReturnsAs you are aware your first Monthly Return was due on 19th May 2014 We have received over 30 monthly returns from employers which identified a number of data discrepancies So far from the monthly returns received we have resolved the following data queries
Missing Leavers
Surname Mismatch
DOB Mismatch New Joiners Change of Hours
Total Errors
31 62 28 36 189 358
Whilst we appreciate that you are still working with your Payroll providers in order to be in a position to supply this data to us we would like to receive monthly returns from all employers with 50+ active members by 19 October 2014 As mentioned previously submission of the monthly return will become compulsory in 201516 and this requirement will be outlined within the Pensions Administration Strategy
The lsquoMonthly Returnrsquo section of the wwwyourfundorguk website is still being developed so in the meantime please submit your files via the lsquogeneral file uploadrsquo section Once you submit your monthly return you will receive a report back via the yourfund website within a few days outlining any data issues including
New joiners
Missing leavers
Change of Hours
Main Scheme - 5050 changes
Personal details mismatches
As part of this process we will also notify you of the records that we have updated from the information provided on the monthly return or any queries that we require further information in order to resolve
We have listened to your feedback and common questions and have now revised the FAQ document which will be issued in the next few days We are also aware of some issues with the programmed macro installed within the template and we are in the process of fixing these minor bugs In the meantime please continue to use this spreadsheet and submit this to us via the wwwyourfundorguk website
Finally we would like to thank employers for all of the efforts to date in supplying this information to us
John CrowhurstPensions Services Manager0207 369 6038johncrowhurstlpfaorguk
Buying back lost pension (Shared Cost Additional Pension Contributions SCAPCs)
In some circumstances a member can buy back lost pension (for example for a period of authorised unpaid additional Maternity Adoption and Paternity leave or periods of unpaid authorised leave of absence) where the employer must also pay towards buying back this lost pension The Shared Cost Additional Pension Contributions (SCAPCs) factors to enable any member of staff returning from a period of unpaid leave have now been received and we can calculate the cost to the member to buy the lost pension back There is also a calculator for members to populate to see how much it costs to buy back lost pension for a period of absence
The calculator can be found here
We will amend our processes to ensure that anyone in this position is given the opportunity to buy back the lost pension however it should be noted that there is a much shorter time scale built into the new scheme for members wanting to buy back lost pension and receive any contribution from their employer (30 days)
ThisleafletisforemployeesinEnglandorWalesandreflectstheprovisionsoftheLGPSandoverridinglegislationatthe
timeofpublicationinApril2014TheGovernmentmaymakechangestooverridinglegislationandafterconsultationwith
interestedpartiesmaymakechangesinthefuturetotheLGPSThisleafletisabriefguidetotheschemeandcannotcover
everypersonalcircumstanceIntheeventofanydisputeoveryourpensionbenefitstheappropriatelegislationwillprevail
Thisleafletdoesnotconferanycontractualorstatutoryrightsandisprovidedforinformationpurposesonly
Forfurtherinformationvisitwwwyourpensionorguk
PublishedbyLPFADexterHouse2RoyalMintCourtLondonEC3N4LP
Wanttoknowmore
Ifyouwanttoknowmoreabouttheschemeorifyouhavemembershipintheschemebefore1
April2014andwanttoknowhowbenefitsbuiltupbeforethenareworkedoutyoucangetmore
informationatwwwyourpensionorguk
RememberApensionisnrsquotonlyaboutyourfuture
AsamemberoftheLGPSyoustillgetvaluable life coverwithalumpsumof3yearspayifyou
dieinservicecover for your familywithpensionsforyourdependentsifyoudieandill health
cover for you
Andyoucanalsopaymoretobuy extra pension
Torecap
bullYouhaveaccesstoaschemeofferingsecurebenefits
bullYoupaypensioncontributionsandyouremployerpaystoo
bullYourpensionisworkedouteachyearwithinflationaddedsoitkeepsupwiththecostof
livingbullYouhavethefreedomtochoosewhentotakeyourpensionbetweenage55and75
bullYoucanexchangepartofyourpensiononretirementforatax-freelumpsum
a tiered ill-health retirement package -ifyouhavetoleaveworkatany
ageduetopermanentillhealththeschemeprovidesyouwithapensionpaid
straightawaywhichcouldbepaidatanincreasedrateifyouareunlikelytobe
capableofgainfulemploymentwithin3yearsofleavingearly payment of your benefits - ifyouaremaderedundantorretiredon
businessefficiencygroundsandyouareaged55oroverflexible retirement - availablefromage55ifyoureduceyourhoursormove
toalessseniorpositionProvidedyouremployeragreesyoucandrawsomeor
allofyourbenefitshelpingyoueaseintoyourretirementProtection against inflation when yoursquove drawn your pension -youcan
lookforwardtoapensionforlifethatincreaseswiththecostoflivingTransferringintotheLGPSYoucanalsotransferpreviouspensionrightsintotheschemeDeferredbenefits
heldintheLGPSinEnglandandWalesarenormallyautomaticallytransferred
unlessyoudecidewithin12monthsofjoiningtheLGPStokeepthemseparate
Fortransfersfromotherpensionschemesyoumaybeabletotransferandyou
normallyhave12monthsfromjoiningtoopttomakeatransfer
OptingoutoftheLGPSYoucanleavetheLGPSatanytimeonceyouareamemberbygivingyour
employernoticeinwritingYoumighthoweverwanttotakeindependentfinancial
advicebeforemakingthefinaldecisiontooptoutAnddonrsquotforgetyoucanasan
alternativeoptfor5050whichallowsyoutoremainintheschemebuildingup
valuablepensionrightsbutpayhalfyournormalcontributionsforhalfyournormal
pension
Ifyouoptoutbeforecompleting3monthsmembershipyouwillbetreatedas
neverhavingbeenamemberandyouremployerwillrefundtoyouthrough
yourpayanycontributionsyouhavepaidduringthattimeIfyouoptoutwith
3ormoremonthsmembershipbutlessthan2yearsyoucantakearefundof
yourcontributions(lessanystatutorydeductions)ortransferoutyourpensionto
anotherschemeIfyouoptoutafter2yearsyouwillhavedeferredbenefitsinthe
schemewhichcanifyouwantbetransferredouttoanotherschemeIfyouopt-
outyoucanprovidedyouareotherwiseeligibletojointheschemeoptbackinto
theschemeatanytimebeforeage75IfyouoptoutoftheLGPSandyouremployerisrequiredtocomplywiththe
automatic enrolmentprovisionsunderthePensionsAct2008youremployer
mayautomaticallyenrolyouintotheLGPSatcertaintimesYouremployermust
notifyyouifthishappensYouwouldthenhavetherighttooptoutoftheLGPS
if yoursquore worried you canrsquot afford it - think again
Ifyoupaytaxyougett
ax relief on your pension contributionsasyour
contributionsarededuc
tedfromyourpaybefor
eyoupaytaxYoualso
(upto
StatePensionAge)pay reduced national insurance contributions(although
thisreductionisexpecte
dtoberemovedfromA
pril2016-fulldetailso
nhowthis
willworkhaveyettobe
finalised)Youremployer currentlya
utomaticallypays
the balanceofthecostofprovidin
gyourpensionbenefits
you also have flexibility to pay less - withtheoptiontopay
halfyournormalcontrib
utionsinreturnforhalf
yournormal
pensionknownas5050Thisisdes
ignedtohelpmembers
stay
intheschemewhentime
sarefinanciallytough
you have flexibility to pay more -youcanboostyourpe
nsionbypayingmore
contributionswhichyou
wouldgettaxreliefon
OptionsincludeAdditio
nalPension
Contributions(APCs)an
dAdditionalVoluntaryC
ontributions(AVCs)
BenefitsatRetirement
TheLGPSisagreatway
tosaveforyourfuture
Youbuildupapension
fromthe
dayyoujointhescheme
andonceyoursquovebeen
payinginfor2yearsyo
urbenefits
include
a secure pension -everyschemeyear(1
Aprilto31March)ana
mountequal
toa49thofyourpayin
thatyearisaddedtoyo
urpensionaccountAtt
heend
ofeveryschemeyearth
etotalpensioninyoura
ccountisadjustedtota
keinto
accountthecostoflivin
g(ascurrentlymeasure
dbytheConsumerPric
esIndex
(CPI))
Tax-free cash -youhavetheoption
whenyoudrawyourpe
nsiontoexchange
partofitforsometax-f
reecash
The freedom to choose when to take your pension -yourNormalPension
AgeislinkedtoyourSta
tePensionAgebutyoud
onotneedtohavereac
hed
yourNormalPensionAg
einordertotakeyourp
ensionYoucanchoose
to
retireanddrawyourpe
nsionatanytimebetwe
enage55and75Your
Normal
PensionAgeissimplyth
eageyoucanretirean
dtakethepensionyoursquov
ebuilt
upinfullIfyouchoose
totakeyourpensionbe
foreyourNormalPensio
nAgeit
willnormallybereduce
dasitrsquosbeingpaidear
lierIfyoutakeitlater
thanyour
NormalPensionAgeitrsquos
increasedbecauseitrsquosb
eingpaidlater
TofindoutyourStatePe
nsionAgepleasevisit
wwwgovukcalculate-s
tate-pension
5050
EachmonthYour
pension account
Did you know
bullTheLGPSisan
importa
ntpartofyouremploymentpackageandprovidesanexcellentrangeof
benefits
bullYoupayyourcontributionsandyour e
mployer pays t
oo
bullTheschem
eisflexible
-youcanchoosetopaylessormoreandyoucandrawyourbenefits
anytimefrom
age55to75
bullThebenefits
yougetincludeapensionwhenyouretireaswellasim
mediatelifecoverandill-
healthprotection
bullTherearealsobenefitsforyourlo
ved oneswithpensionsfordependantsifyoudie
Hereishowtheschemeworks
Cost
Theamountyoupaydependsonhow
muchyouarepaidinyourjobTheratesvaryfrom
55to
125
andyourcontributionratedependsonthebandyoufallintointhetablebelow
Member Contri
bution Table 201415
PayBands
ContributionRates
Uptopound13500
55
pound13501-pound21000
58
pound21001-pound34000
65
pound34001-pound43000
68
pound43001-pound60000
85
pound60001-pound85000
99
pound85001-pound100000
105
pound100001-pound150000
114
Overpound150000
125
WhenyoujoinandeveryAprilafterwardsyouremployerwilldecideyourappropriatecontribution
ratefrom
thecontributionstableAlsoifyourpaychangesthroughouttheyearyouremployermay
decidetoreviewyourcontributionrateThecontributionratesandorpaybandsinthistablewill
bereviewedperiodicallyandmaychangeinthefuture
LocalG
overnm
entPensionScheme(LGPS)
AreyousavingenoughforyourfutureCanyouaffordtoliveonyour
basicstatepensionThemaximumbasicstatepensionispound11310per
week(201415unmarriedrate)Youcouldstartsavingforyourfuture
nowwiththeLGPS
benefiTs of The lgps -
May 2014
for you fo
r now fo
r the fu
ture
We have now added a new leaflet to the website called lsquoBenefits of the LGPSrsquo which is designed to promote the positive aspects of the scheme As employers you may find this useful in advertising the benefits of the scheme without becoming a salesman
You can find the leaflet here
lsquoBenefits of the LGPSrsquo Promotional Leaflet
5050 Election Form
We have received a number of comments on the volume of words contained in the current election form for members wishing to move into the 5050 section We plan to review and edit the form shortly to make it easier to understand whilst still ensuring that neither the LPFA or the employer could be accused of miss-selling the section
5050
Discretions
Below is a breakdown of the new discretions required under the new LGPS2014 these discretions should be made and in place by 30 June 2014
bull Voluntary funding of additional pension via Shared Cost Additional Pension Contribution (SCAPC) contract either by regular on going contribution or by one-off lump sum
bull Flexible retirement
bull Waiving all or part of an actuarial reduction
bull Award of additional pension (at whole cost to the employer)
bull Whether to apply 85 year rule to scheme member wishing to voluntarily draw benefits on or after 55 and before age 60
On our website are LPFArsquos draft discretionary policies which can be used as a guide
wwwlpfaorgukEmployersEMPLOYER-DISCRETIONS
Please send a copy of the discretion policies made by your organisation to Jacqui Lawrence at jacquilawrencelpfaorguk Jacqui will then check the discretion is legal (no fettering of options) then my colleague Tony Williams will confirm whether any alteration has taken place with the annual employer covenant check
Local Government Pensions Committee (LGPC)
As well as the usual latest updates on the structure of the 2014 Scheme and its Regulations the LGPC bulletin 114 contains a few other useful pieces of information
Training UpdateCircular 279 contains details of the forthcoming Practitioner workshops aimed primarily at those working in administering authorities and an Automatic Enrolment workshop aimed at scheme employer staff who are responsible for liaising with the Administering Authorities This course runs on various dates and venues through June and July
View Circular 279 here
Trusteesrsquo ConferenceCircular 280 contains the latest information on the forthcoming LGPS Trusteesrsquo Conference taking place on 19th and 20th June in Bournemouth
View Circular 280 here
The Pensions Regulator (tPR)TPR have recently published the findings of their review of record keeping which generally found good practise in the industry but they have also opened seven cases where they are investigating the findings of the report
The full report can be found on the tPRrsquos website here
State Pension Top-UpAt the last Budget the Government announced a new class of voluntary National Insurance contributions designed to allow some current pensioners and those soon to reach State Pension Age to boost their state pension Further details of this have now been released in a Ministerial Statement which can be found here and the Department for Work and Pensions has issued guidance regarding this which can be found here
Jacqui LawrenceTechnical Officer020 7369 2688jacquilawrencelpfaorguk
Monthly ReturnsAs you are aware your first Monthly Return was due on 19th May 2014 We have received over 30 monthly returns from employers which identified a number of data discrepancies So far from the monthly returns received we have resolved the following data queries
Missing Leavers
Surname Mismatch
DOB Mismatch New Joiners Change of Hours
Total Errors
31 62 28 36 189 358
Whilst we appreciate that you are still working with your Payroll providers in order to be in a position to supply this data to us we would like to receive monthly returns from all employers with 50+ active members by 19 October 2014 As mentioned previously submission of the monthly return will become compulsory in 201516 and this requirement will be outlined within the Pensions Administration Strategy
The lsquoMonthly Returnrsquo section of the wwwyourfundorguk website is still being developed so in the meantime please submit your files via the lsquogeneral file uploadrsquo section Once you submit your monthly return you will receive a report back via the yourfund website within a few days outlining any data issues including
New joiners
Missing leavers
Change of Hours
Main Scheme - 5050 changes
Personal details mismatches
As part of this process we will also notify you of the records that we have updated from the information provided on the monthly return or any queries that we require further information in order to resolve
We have listened to your feedback and common questions and have now revised the FAQ document which will be issued in the next few days We are also aware of some issues with the programmed macro installed within the template and we are in the process of fixing these minor bugs In the meantime please continue to use this spreadsheet and submit this to us via the wwwyourfundorguk website
Finally we would like to thank employers for all of the efforts to date in supplying this information to us
John CrowhurstPensions Services Manager0207 369 6038johncrowhurstlpfaorguk
Buying back lost pension (Shared Cost Additional Pension Contributions SCAPCs)
In some circumstances a member can buy back lost pension (for example for a period of authorised unpaid additional Maternity Adoption and Paternity leave or periods of unpaid authorised leave of absence) where the employer must also pay towards buying back this lost pension The Shared Cost Additional Pension Contributions (SCAPCs) factors to enable any member of staff returning from a period of unpaid leave have now been received and we can calculate the cost to the member to buy the lost pension back There is also a calculator for members to populate to see how much it costs to buy back lost pension for a period of absence
The calculator can be found here
We will amend our processes to ensure that anyone in this position is given the opportunity to buy back the lost pension however it should be noted that there is a much shorter time scale built into the new scheme for members wanting to buy back lost pension and receive any contribution from their employer (30 days)
ThisleafletisforemployeesinEnglandorWalesandreflectstheprovisionsoftheLGPSandoverridinglegislationatthe
timeofpublicationinApril2014TheGovernmentmaymakechangestooverridinglegislationandafterconsultationwith
interestedpartiesmaymakechangesinthefuturetotheLGPSThisleafletisabriefguidetotheschemeandcannotcover
everypersonalcircumstanceIntheeventofanydisputeoveryourpensionbenefitstheappropriatelegislationwillprevail
Thisleafletdoesnotconferanycontractualorstatutoryrightsandisprovidedforinformationpurposesonly
Forfurtherinformationvisitwwwyourpensionorguk
PublishedbyLPFADexterHouse2RoyalMintCourtLondonEC3N4LP
Wanttoknowmore
Ifyouwanttoknowmoreabouttheschemeorifyouhavemembershipintheschemebefore1
April2014andwanttoknowhowbenefitsbuiltupbeforethenareworkedoutyoucangetmore
informationatwwwyourpensionorguk
RememberApensionisnrsquotonlyaboutyourfuture
AsamemberoftheLGPSyoustillgetvaluable life coverwithalumpsumof3yearspayifyou
dieinservicecover for your familywithpensionsforyourdependentsifyoudieandill health
cover for you
Andyoucanalsopaymoretobuy extra pension
Torecap
bullYouhaveaccesstoaschemeofferingsecurebenefits
bullYoupaypensioncontributionsandyouremployerpaystoo
bullYourpensionisworkedouteachyearwithinflationaddedsoitkeepsupwiththecostof
livingbullYouhavethefreedomtochoosewhentotakeyourpensionbetweenage55and75
bullYoucanexchangepartofyourpensiononretirementforatax-freelumpsum
a tiered ill-health retirement package -ifyouhavetoleaveworkatany
ageduetopermanentillhealththeschemeprovidesyouwithapensionpaid
straightawaywhichcouldbepaidatanincreasedrateifyouareunlikelytobe
capableofgainfulemploymentwithin3yearsofleavingearly payment of your benefits - ifyouaremaderedundantorretiredon
businessefficiencygroundsandyouareaged55oroverflexible retirement - availablefromage55ifyoureduceyourhoursormove
toalessseniorpositionProvidedyouremployeragreesyoucandrawsomeor
allofyourbenefitshelpingyoueaseintoyourretirementProtection against inflation when yoursquove drawn your pension -youcan
lookforwardtoapensionforlifethatincreaseswiththecostoflivingTransferringintotheLGPSYoucanalsotransferpreviouspensionrightsintotheschemeDeferredbenefits
heldintheLGPSinEnglandandWalesarenormallyautomaticallytransferred
unlessyoudecidewithin12monthsofjoiningtheLGPStokeepthemseparate
Fortransfersfromotherpensionschemesyoumaybeabletotransferandyou
normallyhave12monthsfromjoiningtoopttomakeatransfer
OptingoutoftheLGPSYoucanleavetheLGPSatanytimeonceyouareamemberbygivingyour
employernoticeinwritingYoumighthoweverwanttotakeindependentfinancial
advicebeforemakingthefinaldecisiontooptoutAnddonrsquotforgetyoucanasan
alternativeoptfor5050whichallowsyoutoremainintheschemebuildingup
valuablepensionrightsbutpayhalfyournormalcontributionsforhalfyournormal
pension
Ifyouoptoutbeforecompleting3monthsmembershipyouwillbetreatedas
neverhavingbeenamemberandyouremployerwillrefundtoyouthrough
yourpayanycontributionsyouhavepaidduringthattimeIfyouoptoutwith
3ormoremonthsmembershipbutlessthan2yearsyoucantakearefundof
yourcontributions(lessanystatutorydeductions)ortransferoutyourpensionto
anotherschemeIfyouoptoutafter2yearsyouwillhavedeferredbenefitsinthe
schemewhichcanifyouwantbetransferredouttoanotherschemeIfyouopt-
outyoucanprovidedyouareotherwiseeligibletojointheschemeoptbackinto
theschemeatanytimebeforeage75IfyouoptoutoftheLGPSandyouremployerisrequiredtocomplywiththe
automatic enrolmentprovisionsunderthePensionsAct2008youremployer
mayautomaticallyenrolyouintotheLGPSatcertaintimesYouremployermust
notifyyouifthishappensYouwouldthenhavetherighttooptoutoftheLGPS
if yoursquore worried you canrsquot afford it - think again
Ifyoupaytaxyougett
ax relief on your pension contributionsasyour
contributionsarededuc
tedfromyourpaybefor
eyoupaytaxYoualso
(upto
StatePensionAge)pay reduced national insurance contributions(although
thisreductionisexpecte
dtoberemovedfromA
pril2016-fulldetailso
nhowthis
willworkhaveyettobe
finalised)Youremployer currentlya
utomaticallypays
the balanceofthecostofprovidin
gyourpensionbenefits
you also have flexibility to pay less - withtheoptiontopay
halfyournormalcontrib
utionsinreturnforhalf
yournormal
pensionknownas5050Thisisdes
ignedtohelpmembers
stay
intheschemewhentime
sarefinanciallytough
you have flexibility to pay more -youcanboostyourpe
nsionbypayingmore
contributionswhichyou
wouldgettaxreliefon
OptionsincludeAdditio
nalPension
Contributions(APCs)an
dAdditionalVoluntaryC
ontributions(AVCs)
BenefitsatRetirement
TheLGPSisagreatway
tosaveforyourfuture
Youbuildupapension
fromthe
dayyoujointhescheme
andonceyoursquovebeen
payinginfor2yearsyo
urbenefits
include
a secure pension -everyschemeyear(1
Aprilto31March)ana
mountequal
toa49thofyourpayin
thatyearisaddedtoyo
urpensionaccountAtt
heend
ofeveryschemeyearth
etotalpensioninyoura
ccountisadjustedtota
keinto
accountthecostoflivin
g(ascurrentlymeasure
dbytheConsumerPric
esIndex
(CPI))
Tax-free cash -youhavetheoption
whenyoudrawyourpe
nsiontoexchange
partofitforsometax-f
reecash
The freedom to choose when to take your pension -yourNormalPension
AgeislinkedtoyourSta
tePensionAgebutyoud
onotneedtohavereac
hed
yourNormalPensionAg
einordertotakeyourp
ensionYoucanchoose
to
retireanddrawyourpe
nsionatanytimebetwe
enage55and75Your
Normal
PensionAgeissimplyth
eageyoucanretirean
dtakethepensionyoursquov
ebuilt
upinfullIfyouchoose
totakeyourpensionbe
foreyourNormalPensio
nAgeit
willnormallybereduce
dasitrsquosbeingpaidear
lierIfyoutakeitlater
thanyour
NormalPensionAgeitrsquos
increasedbecauseitrsquosb
eingpaidlater
TofindoutyourStatePe
nsionAgepleasevisit
wwwgovukcalculate-s
tate-pension
5050
EachmonthYour
pension account
Did you know
bullTheLGPSisan
importa
ntpartofyouremploymentpackageandprovidesanexcellentrangeof
benefits
bullYoupayyourcontributionsandyour e
mployer pays t
oo
bullTheschem
eisflexible
-youcanchoosetopaylessormoreandyoucandrawyourbenefits
anytimefrom
age55to75
bullThebenefits
yougetincludeapensionwhenyouretireaswellasim
mediatelifecoverandill-
healthprotection
bullTherearealsobenefitsforyourlo
ved oneswithpensionsfordependantsifyoudie
Hereishowtheschemeworks
Cost
Theamountyoupaydependsonhow
muchyouarepaidinyourjobTheratesvaryfrom
55to
125
andyourcontributionratedependsonthebandyoufallintointhetablebelow
Member Contri
bution Table 201415
PayBands
ContributionRates
Uptopound13500
55
pound13501-pound21000
58
pound21001-pound34000
65
pound34001-pound43000
68
pound43001-pound60000
85
pound60001-pound85000
99
pound85001-pound100000
105
pound100001-pound150000
114
Overpound150000
125
WhenyoujoinandeveryAprilafterwardsyouremployerwilldecideyourappropriatecontribution
ratefrom
thecontributionstableAlsoifyourpaychangesthroughouttheyearyouremployermay
decidetoreviewyourcontributionrateThecontributionratesandorpaybandsinthistablewill
bereviewedperiodicallyandmaychangeinthefuture
LocalG
overnm
entPensionScheme(LGPS)
AreyousavingenoughforyourfutureCanyouaffordtoliveonyour
basicstatepensionThemaximumbasicstatepensionispound11310per
week(201415unmarriedrate)Youcouldstartsavingforyourfuture
nowwiththeLGPS
benefiTs of The lgps -
May 2014
for you fo
r now fo
r the fu
ture
We have now added a new leaflet to the website called lsquoBenefits of the LGPSrsquo which is designed to promote the positive aspects of the scheme As employers you may find this useful in advertising the benefits of the scheme without becoming a salesman
You can find the leaflet here
lsquoBenefits of the LGPSrsquo Promotional Leaflet
5050 Election Form
We have received a number of comments on the volume of words contained in the current election form for members wishing to move into the 5050 section We plan to review and edit the form shortly to make it easier to understand whilst still ensuring that neither the LPFA or the employer could be accused of miss-selling the section
5050
Discretions
Below is a breakdown of the new discretions required under the new LGPS2014 these discretions should be made and in place by 30 June 2014
bull Voluntary funding of additional pension via Shared Cost Additional Pension Contribution (SCAPC) contract either by regular on going contribution or by one-off lump sum
bull Flexible retirement
bull Waiving all or part of an actuarial reduction
bull Award of additional pension (at whole cost to the employer)
bull Whether to apply 85 year rule to scheme member wishing to voluntarily draw benefits on or after 55 and before age 60
On our website are LPFArsquos draft discretionary policies which can be used as a guide
wwwlpfaorgukEmployersEMPLOYER-DISCRETIONS
Please send a copy of the discretion policies made by your organisation to Jacqui Lawrence at jacquilawrencelpfaorguk Jacqui will then check the discretion is legal (no fettering of options) then my colleague Tony Williams will confirm whether any alteration has taken place with the annual employer covenant check
Local Government Pensions Committee (LGPC)
As well as the usual latest updates on the structure of the 2014 Scheme and its Regulations the LGPC bulletin 114 contains a few other useful pieces of information
Training UpdateCircular 279 contains details of the forthcoming Practitioner workshops aimed primarily at those working in administering authorities and an Automatic Enrolment workshop aimed at scheme employer staff who are responsible for liaising with the Administering Authorities This course runs on various dates and venues through June and July
View Circular 279 here
Trusteesrsquo ConferenceCircular 280 contains the latest information on the forthcoming LGPS Trusteesrsquo Conference taking place on 19th and 20th June in Bournemouth
View Circular 280 here
The Pensions Regulator (tPR)TPR have recently published the findings of their review of record keeping which generally found good practise in the industry but they have also opened seven cases where they are investigating the findings of the report
The full report can be found on the tPRrsquos website here
State Pension Top-UpAt the last Budget the Government announced a new class of voluntary National Insurance contributions designed to allow some current pensioners and those soon to reach State Pension Age to boost their state pension Further details of this have now been released in a Ministerial Statement which can be found here and the Department for Work and Pensions has issued guidance regarding this which can be found here
Jacqui LawrenceTechnical Officer020 7369 2688jacquilawrencelpfaorguk
Buying back lost pension (Shared Cost Additional Pension Contributions SCAPCs)
In some circumstances a member can buy back lost pension (for example for a period of authorised unpaid additional Maternity Adoption and Paternity leave or periods of unpaid authorised leave of absence) where the employer must also pay towards buying back this lost pension The Shared Cost Additional Pension Contributions (SCAPCs) factors to enable any member of staff returning from a period of unpaid leave have now been received and we can calculate the cost to the member to buy the lost pension back There is also a calculator for members to populate to see how much it costs to buy back lost pension for a period of absence
The calculator can be found here
We will amend our processes to ensure that anyone in this position is given the opportunity to buy back the lost pension however it should be noted that there is a much shorter time scale built into the new scheme for members wanting to buy back lost pension and receive any contribution from their employer (30 days)
ThisleafletisforemployeesinEnglandorWalesandreflectstheprovisionsoftheLGPSandoverridinglegislationatthe
timeofpublicationinApril2014TheGovernmentmaymakechangestooverridinglegislationandafterconsultationwith
interestedpartiesmaymakechangesinthefuturetotheLGPSThisleafletisabriefguidetotheschemeandcannotcover
everypersonalcircumstanceIntheeventofanydisputeoveryourpensionbenefitstheappropriatelegislationwillprevail
Thisleafletdoesnotconferanycontractualorstatutoryrightsandisprovidedforinformationpurposesonly
Forfurtherinformationvisitwwwyourpensionorguk
PublishedbyLPFADexterHouse2RoyalMintCourtLondonEC3N4LP
Wanttoknowmore
Ifyouwanttoknowmoreabouttheschemeorifyouhavemembershipintheschemebefore1
April2014andwanttoknowhowbenefitsbuiltupbeforethenareworkedoutyoucangetmore
informationatwwwyourpensionorguk
RememberApensionisnrsquotonlyaboutyourfuture
AsamemberoftheLGPSyoustillgetvaluable life coverwithalumpsumof3yearspayifyou
dieinservicecover for your familywithpensionsforyourdependentsifyoudieandill health
cover for you
Andyoucanalsopaymoretobuy extra pension
Torecap
bullYouhaveaccesstoaschemeofferingsecurebenefits
bullYoupaypensioncontributionsandyouremployerpaystoo
bullYourpensionisworkedouteachyearwithinflationaddedsoitkeepsupwiththecostof
livingbullYouhavethefreedomtochoosewhentotakeyourpensionbetweenage55and75
bullYoucanexchangepartofyourpensiononretirementforatax-freelumpsum
a tiered ill-health retirement package -ifyouhavetoleaveworkatany
ageduetopermanentillhealththeschemeprovidesyouwithapensionpaid
straightawaywhichcouldbepaidatanincreasedrateifyouareunlikelytobe
capableofgainfulemploymentwithin3yearsofleavingearly payment of your benefits - ifyouaremaderedundantorretiredon
businessefficiencygroundsandyouareaged55oroverflexible retirement - availablefromage55ifyoureduceyourhoursormove
toalessseniorpositionProvidedyouremployeragreesyoucandrawsomeor
allofyourbenefitshelpingyoueaseintoyourretirementProtection against inflation when yoursquove drawn your pension -youcan
lookforwardtoapensionforlifethatincreaseswiththecostoflivingTransferringintotheLGPSYoucanalsotransferpreviouspensionrightsintotheschemeDeferredbenefits
heldintheLGPSinEnglandandWalesarenormallyautomaticallytransferred
unlessyoudecidewithin12monthsofjoiningtheLGPStokeepthemseparate
Fortransfersfromotherpensionschemesyoumaybeabletotransferandyou
normallyhave12monthsfromjoiningtoopttomakeatransfer
OptingoutoftheLGPSYoucanleavetheLGPSatanytimeonceyouareamemberbygivingyour
employernoticeinwritingYoumighthoweverwanttotakeindependentfinancial
advicebeforemakingthefinaldecisiontooptoutAnddonrsquotforgetyoucanasan
alternativeoptfor5050whichallowsyoutoremainintheschemebuildingup
valuablepensionrightsbutpayhalfyournormalcontributionsforhalfyournormal
pension
Ifyouoptoutbeforecompleting3monthsmembershipyouwillbetreatedas
neverhavingbeenamemberandyouremployerwillrefundtoyouthrough
yourpayanycontributionsyouhavepaidduringthattimeIfyouoptoutwith
3ormoremonthsmembershipbutlessthan2yearsyoucantakearefundof
yourcontributions(lessanystatutorydeductions)ortransferoutyourpensionto
anotherschemeIfyouoptoutafter2yearsyouwillhavedeferredbenefitsinthe
schemewhichcanifyouwantbetransferredouttoanotherschemeIfyouopt-
outyoucanprovidedyouareotherwiseeligibletojointheschemeoptbackinto
theschemeatanytimebeforeage75IfyouoptoutoftheLGPSandyouremployerisrequiredtocomplywiththe
automatic enrolmentprovisionsunderthePensionsAct2008youremployer
mayautomaticallyenrolyouintotheLGPSatcertaintimesYouremployermust
notifyyouifthishappensYouwouldthenhavetherighttooptoutoftheLGPS
if yoursquore worried you canrsquot afford it - think again
Ifyoupaytaxyougett
ax relief on your pension contributionsasyour
contributionsarededuc
tedfromyourpaybefor
eyoupaytaxYoualso
(upto
StatePensionAge)pay reduced national insurance contributions(although
thisreductionisexpecte
dtoberemovedfromA
pril2016-fulldetailso
nhowthis
willworkhaveyettobe
finalised)Youremployer currentlya
utomaticallypays
the balanceofthecostofprovidin
gyourpensionbenefits
you also have flexibility to pay less - withtheoptiontopay
halfyournormalcontrib
utionsinreturnforhalf
yournormal
pensionknownas5050Thisisdes
ignedtohelpmembers
stay
intheschemewhentime
sarefinanciallytough
you have flexibility to pay more -youcanboostyourpe
nsionbypayingmore
contributionswhichyou
wouldgettaxreliefon
OptionsincludeAdditio
nalPension
Contributions(APCs)an
dAdditionalVoluntaryC
ontributions(AVCs)
BenefitsatRetirement
TheLGPSisagreatway
tosaveforyourfuture
Youbuildupapension
fromthe
dayyoujointhescheme
andonceyoursquovebeen
payinginfor2yearsyo
urbenefits
include
a secure pension -everyschemeyear(1
Aprilto31March)ana
mountequal
toa49thofyourpayin
thatyearisaddedtoyo
urpensionaccountAtt
heend
ofeveryschemeyearth
etotalpensioninyoura
ccountisadjustedtota
keinto
accountthecostoflivin
g(ascurrentlymeasure
dbytheConsumerPric
esIndex
(CPI))
Tax-free cash -youhavetheoption
whenyoudrawyourpe
nsiontoexchange
partofitforsometax-f
reecash
The freedom to choose when to take your pension -yourNormalPension
AgeislinkedtoyourSta
tePensionAgebutyoud
onotneedtohavereac
hed
yourNormalPensionAg
einordertotakeyourp
ensionYoucanchoose
to
retireanddrawyourpe
nsionatanytimebetwe
enage55and75Your
Normal
PensionAgeissimplyth
eageyoucanretirean
dtakethepensionyoursquov
ebuilt
upinfullIfyouchoose
totakeyourpensionbe
foreyourNormalPensio
nAgeit
willnormallybereduce
dasitrsquosbeingpaidear
lierIfyoutakeitlater
thanyour
NormalPensionAgeitrsquos
increasedbecauseitrsquosb
eingpaidlater
TofindoutyourStatePe
nsionAgepleasevisit
wwwgovukcalculate-s
tate-pension
5050
EachmonthYour
pension account
Did you know
bullTheLGPSisan
importa
ntpartofyouremploymentpackageandprovidesanexcellentrangeof
benefits
bullYoupayyourcontributionsandyour e
mployer pays t
oo
bullTheschem
eisflexible
-youcanchoosetopaylessormoreandyoucandrawyourbenefits
anytimefrom
age55to75
bullThebenefits
yougetincludeapensionwhenyouretireaswellasim
mediatelifecoverandill-
healthprotection
bullTherearealsobenefitsforyourlo
ved oneswithpensionsfordependantsifyoudie
Hereishowtheschemeworks
Cost
Theamountyoupaydependsonhow
muchyouarepaidinyourjobTheratesvaryfrom
55to
125
andyourcontributionratedependsonthebandyoufallintointhetablebelow
Member Contri
bution Table 201415
PayBands
ContributionRates
Uptopound13500
55
pound13501-pound21000
58
pound21001-pound34000
65
pound34001-pound43000
68
pound43001-pound60000
85
pound60001-pound85000
99
pound85001-pound100000
105
pound100001-pound150000
114
Overpound150000
125
WhenyoujoinandeveryAprilafterwardsyouremployerwilldecideyourappropriatecontribution
ratefrom
thecontributionstableAlsoifyourpaychangesthroughouttheyearyouremployermay
decidetoreviewyourcontributionrateThecontributionratesandorpaybandsinthistablewill
bereviewedperiodicallyandmaychangeinthefuture
LocalG
overnm
entPensionScheme(LGPS)
AreyousavingenoughforyourfutureCanyouaffordtoliveonyour
basicstatepensionThemaximumbasicstatepensionispound11310per
week(201415unmarriedrate)Youcouldstartsavingforyourfuture
nowwiththeLGPS
benefiTs of The lgps -
May 2014
for you fo
r now fo
r the fu
ture
We have now added a new leaflet to the website called lsquoBenefits of the LGPSrsquo which is designed to promote the positive aspects of the scheme As employers you may find this useful in advertising the benefits of the scheme without becoming a salesman
You can find the leaflet here
lsquoBenefits of the LGPSrsquo Promotional Leaflet
5050 Election Form
We have received a number of comments on the volume of words contained in the current election form for members wishing to move into the 5050 section We plan to review and edit the form shortly to make it easier to understand whilst still ensuring that neither the LPFA or the employer could be accused of miss-selling the section
5050
Discretions
Below is a breakdown of the new discretions required under the new LGPS2014 these discretions should be made and in place by 30 June 2014
bull Voluntary funding of additional pension via Shared Cost Additional Pension Contribution (SCAPC) contract either by regular on going contribution or by one-off lump sum
bull Flexible retirement
bull Waiving all or part of an actuarial reduction
bull Award of additional pension (at whole cost to the employer)
bull Whether to apply 85 year rule to scheme member wishing to voluntarily draw benefits on or after 55 and before age 60
On our website are LPFArsquos draft discretionary policies which can be used as a guide
wwwlpfaorgukEmployersEMPLOYER-DISCRETIONS
Please send a copy of the discretion policies made by your organisation to Jacqui Lawrence at jacquilawrencelpfaorguk Jacqui will then check the discretion is legal (no fettering of options) then my colleague Tony Williams will confirm whether any alteration has taken place with the annual employer covenant check
Local Government Pensions Committee (LGPC)
As well as the usual latest updates on the structure of the 2014 Scheme and its Regulations the LGPC bulletin 114 contains a few other useful pieces of information
Training UpdateCircular 279 contains details of the forthcoming Practitioner workshops aimed primarily at those working in administering authorities and an Automatic Enrolment workshop aimed at scheme employer staff who are responsible for liaising with the Administering Authorities This course runs on various dates and venues through June and July
View Circular 279 here
Trusteesrsquo ConferenceCircular 280 contains the latest information on the forthcoming LGPS Trusteesrsquo Conference taking place on 19th and 20th June in Bournemouth
View Circular 280 here
The Pensions Regulator (tPR)TPR have recently published the findings of their review of record keeping which generally found good practise in the industry but they have also opened seven cases where they are investigating the findings of the report
The full report can be found on the tPRrsquos website here
State Pension Top-UpAt the last Budget the Government announced a new class of voluntary National Insurance contributions designed to allow some current pensioners and those soon to reach State Pension Age to boost their state pension Further details of this have now been released in a Ministerial Statement which can be found here and the Department for Work and Pensions has issued guidance regarding this which can be found here
Jacqui LawrenceTechnical Officer020 7369 2688jacquilawrencelpfaorguk
5050 Election Form
We have received a number of comments on the volume of words contained in the current election form for members wishing to move into the 5050 section We plan to review and edit the form shortly to make it easier to understand whilst still ensuring that neither the LPFA or the employer could be accused of miss-selling the section
5050
Discretions
Below is a breakdown of the new discretions required under the new LGPS2014 these discretions should be made and in place by 30 June 2014
bull Voluntary funding of additional pension via Shared Cost Additional Pension Contribution (SCAPC) contract either by regular on going contribution or by one-off lump sum
bull Flexible retirement
bull Waiving all or part of an actuarial reduction
bull Award of additional pension (at whole cost to the employer)
bull Whether to apply 85 year rule to scheme member wishing to voluntarily draw benefits on or after 55 and before age 60
On our website are LPFArsquos draft discretionary policies which can be used as a guide
wwwlpfaorgukEmployersEMPLOYER-DISCRETIONS
Please send a copy of the discretion policies made by your organisation to Jacqui Lawrence at jacquilawrencelpfaorguk Jacqui will then check the discretion is legal (no fettering of options) then my colleague Tony Williams will confirm whether any alteration has taken place with the annual employer covenant check
Local Government Pensions Committee (LGPC)
As well as the usual latest updates on the structure of the 2014 Scheme and its Regulations the LGPC bulletin 114 contains a few other useful pieces of information
Training UpdateCircular 279 contains details of the forthcoming Practitioner workshops aimed primarily at those working in administering authorities and an Automatic Enrolment workshop aimed at scheme employer staff who are responsible for liaising with the Administering Authorities This course runs on various dates and venues through June and July
View Circular 279 here
Trusteesrsquo ConferenceCircular 280 contains the latest information on the forthcoming LGPS Trusteesrsquo Conference taking place on 19th and 20th June in Bournemouth
View Circular 280 here
The Pensions Regulator (tPR)TPR have recently published the findings of their review of record keeping which generally found good practise in the industry but they have also opened seven cases where they are investigating the findings of the report
The full report can be found on the tPRrsquos website here
State Pension Top-UpAt the last Budget the Government announced a new class of voluntary National Insurance contributions designed to allow some current pensioners and those soon to reach State Pension Age to boost their state pension Further details of this have now been released in a Ministerial Statement which can be found here and the Department for Work and Pensions has issued guidance regarding this which can be found here
Jacqui LawrenceTechnical Officer020 7369 2688jacquilawrencelpfaorguk
Local Government Pensions Committee (LGPC)
As well as the usual latest updates on the structure of the 2014 Scheme and its Regulations the LGPC bulletin 114 contains a few other useful pieces of information
Training UpdateCircular 279 contains details of the forthcoming Practitioner workshops aimed primarily at those working in administering authorities and an Automatic Enrolment workshop aimed at scheme employer staff who are responsible for liaising with the Administering Authorities This course runs on various dates and venues through June and July
View Circular 279 here
Trusteesrsquo ConferenceCircular 280 contains the latest information on the forthcoming LGPS Trusteesrsquo Conference taking place on 19th and 20th June in Bournemouth
View Circular 280 here
The Pensions Regulator (tPR)TPR have recently published the findings of their review of record keeping which generally found good practise in the industry but they have also opened seven cases where they are investigating the findings of the report
The full report can be found on the tPRrsquos website here
State Pension Top-UpAt the last Budget the Government announced a new class of voluntary National Insurance contributions designed to allow some current pensioners and those soon to reach State Pension Age to boost their state pension Further details of this have now been released in a Ministerial Statement which can be found here and the Department for Work and Pensions has issued guidance regarding this which can be found here
Jacqui LawrenceTechnical Officer020 7369 2688jacquilawrencelpfaorguk
![Cap. 173] Pensions CHAPTER 173. PENSIONS. 173.pdf · Pensions, etc., to cease on bankruptcy. 14. Pensions, etc., may cease on sentence to term of imprisonment. 15. Pensions, etc.,](https://static.fdocuments.net/doc/165x107/5f32c41fe2aa25713c052446/cap-173-pensions-chapter-173-173pdf-pensions-etc-to-cease-on-bankruptcy.jpg)
