Presented by Catherine Pearce Shirley Cuthbert Emma Shand Duncan Kohn Viv Ray Pensions Liaison Officers Group

Agenda Introduction Absences and APCs Admin Strategy Admin Update – Employer discretions – Employer responsibilities – Leavers Form – Employers Guide – Employer Self Service Pensionable Pay

Absences Why is it necessary for Peninsula Pensions to be notified of all unpaid absences?  CARE scheme benefits are not affected!  Pre April 2014 can be affected by absences when calculating some protections, Underpin and rule of 85 Remember to inform Peninsula Pensions of all unpaid absences to include strikes, unpaid leave, unpaid child related leave (not statutory) Template spreadsheet available on website Unpaid absence could be as little as an hour! Need to inform member of APC option to buy back lost pension Appears not all employers informing Peninsula Pensions of absences

APC procedure for absences When employer receives APC election form, do the following:  Check the details on form i.e pensionable pay, date of birth/age, method of payment etc NB: If member within 1 month of birthday calculator will assume age next birthday  Check that form dated within 30 days of member’s return to work so that employer pays 2/3rds cost (not applicable for strike absence) NB: If election made after 30 days then employee pays full cost, unless employer has discretion to cover this.  If details incorrect and not significant, amend form and inform member of change.  Employer can choose not accept regular deduction i.e. amount so small  Action form by setting up lump sum deduction through payroll (can pay direct payment, no tax relief) or regular deduction  Complete employer confirmation form and forward to Peninsula Pensions together with copy of election form. Possible amendment to regulations to cover one election for employers who give additional leave option annually.

APC procedure for absences (cont) Why does employer need to complete confirmation form and attach copy of election form?:  Peninsula Pensions may receive a copy of election form from member direct, but are details correct?  Need to know dates of absences if member has pre April 2014 service  Pension administration system needs to know period of repayment, for estimate and/or ABS, employer confirmation form does not replicate member election form  Have already received election forms which don’t agree with employer confirmation form, so which one is correct? Need to comply with LGPS regulations by ensuring all required details are passed to Peninsula Pensions so correct benefits are paid. Website has an APC employers guide and employers confirmation form Do you know of a better way of informing Peninsula Pensions of APC details?

Working together to provide an efficient and excellent service for our Scheme members PENSION ADMINISTRATION STRATEGY (PAS)

1.Public Service Pensions Act The Pension Regulator 3.Regulation 59 of the LGPS (Administration) Regulations 2013 permit Administering Authorities to produce a PAS. Why do we need it?

Role & Responsibilities of both the administration team and employers including Provision of information timescales Performance targets Liaison & Communication What will it include?

Early December/Mid January – Consultation on draft Pension Admin Strategy Mid – Late January – responses reviewed amendments made as necessary February/March – Final Strategy taken to committee for approval 1 April 2015 – Strategy adopted, employers informed by Pensions line and copy sent to Secretary of State What's next?

Performance to date

Employer discretions Employers must publish discretion policy to cover all discretions including: a)Funding of additional pension (Reg 16(2)(e) & 16(4)(d)) Employer can choose to pay for APC in whole or part b)Flexible Retirement (Reg 30(6)) Same as existing discretion c)Waiving of actuarial reduction (Reg 30(8)) Flexible Retirement and Early retirement (55-60) d)Award of additional pension (Reg 31) Employer APC for active member or member leaving on redundancy/efficiency Employers must still retain old discretions to cover pre 2014 benefits Must regularly review discretions - Don’t forget to send copy of discretions to Peninsula Pensions Example and guidance notes are on our website Admin Update

Your Responsibilities as an employer Auto enrol new staff with contract for employment of more than 3 months (Casual’s have option to join unless they are an eligible jobholder then automatic – can use postponement) Determine employee contribution rates and deduct from salaries, submit to the pension fund along with employer contributions by 7 th of the following month. Notify Pensions of any changes to hours, unpaid leave, unpaid child-related leave, strike breaks etc – can be done via interface Inform Pensions of APC elections once actioned Annual returns – end of year data containing contributions paid and pensionable pay will be compiled for employer to check before submitting to Pensions What should you be doing?

Need to inform us of staff leaving employment (or Opting Out), their final pensionable salary and the reason for leaving (Prism 2 & Leavers Form to be completed) One member per please Forward pension scheme information to employees i.e. Statutory notices, Annual Benefit Statements and any relevant LGPS information Internal Dispute Resolution Procedure (IDRP) – 2 stage complaints procedure. Must appoint Stage 1 IDRP Appeals Officer to deal with complaints against employer decision Must appoint an Independent Occupational Health doctor for ill health retirements Ensure member records are accurate What should you be doing?

Need to keep each post separate even if on same rate of pay as member can opt out or elect for 50/50 option on one post and not on other post Need to keep separate data for each job Need to provide separate data for MAIN scheme and 50/50 scheme for each job Provide actual pensionable pay figures to include any assumed pay for each job Need to complete separate pension forms for each separate job – see procedure guide on our website Re-employed pensioners – if member took their benefits then takes up another role their pension may be affected. Different Policies for Devon and Somerset so please check with Peninsula Pensions. Multiple Contracts

New form designed to accommodate all the extra information required for CARE pension. Launching 2 nd January 2015 Available on our website and will be able to complete and screen then “Save and Send” Guidance bubbles will help with completion. Estimate request forms have also been consolidated and amended for extra pay information New Leavers form

Front Page – Employee Information:

Front Page (Continued)…

Page 2 – Pension Contributions

Page 2 (Continued) – Hours and Absences

Page 3 - Pensionable Pay Information SECTION A - LGPS 2008 INFORMATION

Page 3 (Continued) - Pensionable Pay Information SECTION B - LGPS 2014 INFORMATION

Page 4 – Notes Page ASSUMED PENSIONABLE PAY (LGPS 2014 pensionable pay) Please note that the pensionable pay figures given in Section B and C must include Assumed Pensionable Pay (APP) which is required for any relevant period where the employee has received reduced or no pay as a result of sickness or injury or due to a period of statutory paid child-related leave. NOTE: If at any time during a period of reduced or nil contractual pay the employee’s actual earnings are greater than the APP please substitute Actual Pay for APP for these days e.g KIT days. For guidance on the calculation of Pensionable Pay and Assumed Pensionable Pay refer to the LGA Payroll GuideLGA Payroll Guide Comments

On Employers pages of website Now been updated for 2014 LGPS scheme but still work in progress Guidance on regulations – broken down into relevant sections Links to Payroll and HR guides written by Local Government Association New format to be designed to make it more user friendly and interactive Proposed “How to….” sections - Designed for you so let me know what you want included Employers Guide

Enables employers to view and amend Altair data remotely and securely using internet based technology. Employer users can access facilities: User Search New Starter creation Update of general information Update of part-time hours Notification of leavers Benefit projector and benefit calculations Reporting Submission of interface files Launching early next year – Site visits and training will be provided Systems Development Manager Jane Aplin will be in touch Employer Self Service (ESS)

Notes and checklists for new Employers and Academies Access to all information on Auto-enrolment including letters and flowcharts Documents and Forms For Employers Must have a login and password to complete forms Links to Employers newsletters “Pensions Line” Employers Guide/Training Pack – slightly delayed but will be updated for new scheme. Plan for “How to…. Section” Employer Self Service (ESS) – facility to process estimates, check records & interfacing of information for current employees. For access to website and to receive Pensions Line Employers Section of Website

New definition of pensionable pay for post 31/03/2014 membership 3 changes – non contractual overtime included, payments for loss of future earnings not included, any actual pay paid by scheme employer to a reservist during Reserved Forces Leave is not included. (Whilst on Reserved Forces Leave employee and MOD pay contributions on the amount of Assumed Pensionable Pay (APP) Employers need to provide actual pensionable pay for each contribution year (April to March) or part thereof if left during year. Any APP must be included in the figures provided to Peninsula Pensions (see slides on APP) Pensionable Pay on leaving Post April 2014

Pensionable Pay on leaving Post April 2014 (cont) Employers no longer required to uprate pensionable pay to full-time equivalent Need to exclude any pay that relates to pre April Payment after leaving must be notified to Peninsula Pensions to include additional pensionable pay amount and date when it was paid. APP not required to be recalculated if payment after leaving made.

Old pensionable pay figure still needed to calculate pre 2014 benefits Need to check best of last 3 years and if pay reduced in previous 10 years the best 3 year average in last 13 years. On leaving inform Peninsula Pensions if Certificate of Material Change effective. Pensionable pay figure remains as 2008 regulation definition Employers therefore will need to hold 2 different pensionable pay figures for employees with pre 2014 service. LEAVERS FORM to include all information needed. Still need to inform Peninsula Pensions of any payments after leaving so that benefits can be recalculated Pensionable Pay on leaving Pre April 2014

Assumed Pensionable Pay (APP) If member on reduced or no pay due to sickness, injury; or on statutory child related leave (CRL) or reserve forces leave, employer needs to calculate Assumed Pensionable Pay (APP) for the applicable period. APP is calculated at an annual rate based on the pensionable pay received in the 3 complete months before the start of the applicable period. The annual figure is then apportioned to the applicable period and replaces any pay received in that period. Even if member on CRL and receiving full pay APP average is previous 3 complete months before CRL starts. When calculating 3 month APP include any APP that was applicable for that 3 month period.

Assumed Pensionable Pay (cont) If the 3 months pay being used to calculate APP includes period before 1 st April 2014 then 2008 definition of pensionable pay is used for the period before 1 st April Once APP has been calculated then it doesn’t get recalculated if the employee received back dated pay. Ignore any lump sum payments made in the previous 3 month as will already have been included in PP. APP calculations need to be done each month so that it is included in the monthly returns and end of year annual pensionable pay for members.

Assumed Pensionable Pay (cont) Where member retires with a Tier 1 or Tier 2 ill health pension or dies in service APP is calculated at an annual rate based on the pensionable pay received in the 3 complete months prior to the date of termination / death Include any APP credited in and relating to those pay periods APP used to calculate enhanced benefits / death gratuity Where Independent Registered Medical Practitioner certifies that member was working reduced contractual hours during relevant period as a consequence of ill health, App figure to be calculated on pay member would have received had they not been working reduced contractual hours Examples in LGA payroll guidepayroll guide

Useful Links LGA Website LGA Payroll guidance on LGPS 2014 LGA HR guidance on LGPS 2014 LGPS 2014 Website LGPS regulations and guidance Peninsula Pensions website

Website: Telephone: and ask for Pensions/contact’s name Contact Details

Questions