Transcript Document
Secure your future today Save early and prepare for the retirement lifestyle you want. Matt Davies Assistant Pension Administration Manager LGPS 2014 The new scheme and the provision of data Contact information and links: www.cornwallpensionfund.org.uk E [email protected] Agenda • How the scheme worked before April 2014 • An Overview of the LGPS 2014 scheme and what has changed • End of year data – introduction and brief overview of return • Pensionable Remuneration • Employee and Employer contributions • Refunds • Where to find out more • Q&As LGPS 2014 The new scheme and the provision of data Contact information and links: www.cornwallpensionfund.org.uk E [email protected] Agenda • How the scheme worked before April 2014 • An Overview of the LGPS 2014 scheme and what has changed • End of year data – introduction and brief overview of return • Pensionable Remuneration • Employee and Employer contributions • Refunds • Where to find out more • Q&As Pre 2014 retirement benefits How are benefits calculated? All benefits accrued prior to 31st March 2014 retain a link to final pay (at date of leaving and not when scheme changed); • Membership to 31 March 2008; Pension of 1/80th of Final Pay (pre 2014 definition of pay) plus 3/80ths tax free cash • Membership from 1 April 2008 to 31 March 2014 Pension of 1/60th of Final Pay (pre 2014 definition of pay) • Option to exchange pension for tax free cash at rate of £12 cash for £1 pension Post 2014 retirement benefits How are benefits calculated? All benefits accrued after 1st April 2014 are on a Career Average Revalued Earnings (CARE) basis, not final salary; • Membership from 1 April 2014; Pension of 1/49th of Career Average pay (post 2014 definition of pay) • Option to exchange pension for tax free cash at rate of £12 cash for £1 pension Pensionable pay How does it differ? Definition of Pensionable pay pre and post 2014 is basically the same; All payments in respect of the job apart from those listed in the regulations as exclusions! Biggest change; Non-contractual overtime no longer on list of exclusions from 1st April 2014 and is therefore pensionable from 1st April 2014 End of year An introduction; • As a result of the final pay link for pre 2014 benefits, Employers must continue to record and provide pay figures based on both definitions • This is the first year that CARE figure is required • The CARE figure will directly determine the value of a member’s post April 2014 pension – we will be relying on you for accuracy as we have no comparison figure • Deadline for issuing Annual Benefit Statements is now 31st August • We will issue a template next week for all employers to complete and return by 31st May to enable us to meet deadline for issuing Annual Benefit Statements End of year Draft template; End of year What will we do with the information? We will do some basic checks of the data provided; 1. Are there members or jobs on the return for whom we have no pension record? 2. Are there members for whom we have a pension record who are not on the return? 3. Do final pay figures significantly differ from expected figures? We will then come back to you, not your payroll provider if applicable, with any queries Once resolved – we will divide pay figure by 49 and add this pension value to pension account for ever more! End of year What will we do with the information? And what about the pre 2014 benefits? The value of all pre 2014 benefits for the Annual Benefit Statements will be based on the figure you provide • As contributions may not have been based on this figure (pre 2014 definition of pensionable pay) we are no longer able to check it accurately Employee and employer contributions Employee contributions; Contribution banding rates to operate from 1st April 2015 have been confirmed in our recent Employer newsletter; Actual pensionable pay for employment Contribution rate for that employment Main section 50/50 section Up to £13,600 5.50% 2.75% £13,601 to £21,200 5.80% 2.90% £21,201 to £34,400 6.50% 3.25% £34,401 to £43,500 6.80% 3.40% £43,501 to £60,700 8.50% 4.25% £60,701 to £86,000 9.90% 4.95% £86,001 to £101,200 10.50% 5.25% £101,201 to £151,800 11.40% 5.70% £151,801 or more 12.50% 6.25% Employee and employer contributions Employer contributions; Contribution rates for 2015/16 and 2016/17 were confirmed in the Cornwall Pension Fund 2013 valuation report or individually if you are a new employer since 1st April 2013 A new contribution schedule will be sent out shortly; • Will show rates applicable from April 2015 and April 2016 • Most employers will not change • Some Academies will change owing to mergers etc Contact us if you are unsure Refunds of contributions; Under the 2014 regulations the situation is; Opt-outs within 3 months of joining the scheme; 1. Refund all contributions through payroll and re-instate any tax and the full amount of NI contributions 2. If we have been informed that the employer has become a member of the scheme, provide a leaver form confirming that contributions have been refunded – no further information is required Refunds of contributions, continued; Opt-outs between within 3 months and 2 years of joining the scheme and all leavers within 2 years of starting; 1. Do not refund contributions through payroll 2. Provide us with a leaver form ensuring all relevant information is completed The member may be entitled to a refund if they meet certain criteria and we will obtain confirmation of this from the member before we process the refund payment Opt-outs and leavers more than 2 years after joining; 1. Provide us with a leaver form ensuring all relevant information is completed The member is not entitled to a refund payment Thank you Find out more: www.cornwallpensionfund.org.uk E [email protected]