1. DEVELOPING EXCELLENCE TOGETHER Download this presentation from http://bit.ly/PensionSBMhttp://bit.ly/PensionSBM Webinar Pensions – What SBMs need to know Micon Metcalfe

2. DEVELOPING EXCELLENCE TOGETHER Pensions available to school staff  Teachers’ Pension Scheme All teaching staff – including unqualified teachers Un-funded https://www.teacherspensions.co.uk/employers/employer-hub.aspx  Local Government Pension Scheme All staff who are not teachers Funded scheme http://www.lgps.org.uk/lge/core/page.do?pageId=97977  Remember all staff are entitled to join a pension scheme

3. DEVELOPING EXCELLENCE TOGETHER Teachers’ Pensions Scheme  Defined Benefit scheme Final Salary to 31/3/2015 Career Average (CARE) from 1/4/2015  Tiered contributions introduced from April 2012  Normal pension age 60, 65 or state pension age  Type of Member from April 2015 Protected Tapered New Member

4. DEVELOPING EXCELLENCE TOGETHER Local Government Pension Scheme  Defined Benefit scheme Final Salary to 31/3/2014 Career Average (CARE) from 1/4/2014  Tiered contributions introduced from April 2010  Normal pension age 65 or state pension age  Some protections for older members

5. DEVELOPING EXCELLENCE TOGETHER Both schemes  Contributions are now based on actual pay not salary scale LGPS from 1/4/14 TP from 1/4/15  Overtime and changes to pay can mean tier changes month to month Teachers' Pensions HR and Payroll Guides LGPS HR and Payroll Guides  Need for a pension policy to outline employer approach

6. DEVELOPING EXCELLENCE TOGETHER Employer reporting  Monthly Returns via Local Authority for maintained schools via Teachers’ Pensions for Academies via Local Authority or direct to Administering Authority for LGPS  Annual Service Returns  Teachers’ Pensions Audited Annual return (academies)  Joiners, leavers and changes

7. DEVELOPING EXCELLENCE TOGETHER Payroll providers  Payroll providers should prepare returns and provide pension checking information  They should be able to administer the payroll requirements of both schemes  They should amend reports and returns as required by the scheme  School needs to check information and reconcile!

8. DEVELOPING EXCELLENCE TOGETHER Auto-enrolment  Auto-Enrolment is a recent employer obligation re pensions http://www.thepensionsregulator.gov.uk/automatic-enrolment.aspx  TP and LGPS meet the requirements for auto-enrolment  Academies need to register with the Pensions Regulator  All qualifying staff must be enrolled in relevant pension  Employer should not volunteer information on opt-out  New starters cannot opt out prior to start date  Non Members are auto-enrolled every 3 years and must opt out again  Ensure that all qualifying employees are opted in unless you have opt out documentation. This includes part-time and sessional staff.

9. DEVELOPING EXCELLENCE TOGETHER Financial changes  Revaluation of LGPS every three years. Employer contributions can go up or down Academies need actuarial valuation and carry liability in accounts  Increase to Teachers’ Pensions employer contributions in September 2015 Plan for impact on budget  Tax relief for employee contributions ends in April 2016.

10. DEVELOPING EXCELLENCE TOGETHER Complexity  Pension administration is complex and there has been a lot of change  The School Business Manager can not advise employees about pensions  If in doubt check with relevant scheme!

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