protecting improved funding levels · upfront cash –could end up with a 55% tax bill money often...
TRANSCRIPT
Administration Update
Debra KeelingMember Services Manager
July 2020
COVID-19 and the LGPS
It should be the time of year for relaxing on a beach…..
….for most people this is the reality
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COVID-19 and the LGPS
Furloughed staff (Coronavirus job retention scheme)
➢ Furloughed pay is pensionable pay. The employee and employercontributions should be deducted based on the employee’s actual payreceived.
➢ If the employee receives 80% of their normal pay, their pensioncontributions will be less.
➢ If the member’s Full Time Equivalent (FTE) final pay is lower in the lastyear of membership, you will need to provide the previous 2 years priorto the date of leaving. (Requirement in all cases anyway).
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COVID-19 and the LGPS
Furloughed staff (Coronavirus job retention scheme)
➢ If a member dies in service the regulations state that the employercan calculate APP (Assumed Pensionable Pay) for the death grantusing a higher pay figures to reflect the pensionable pay themember would normally have received.
➢ More detailed information can be found:
➢ http://lgpsregs.org/news/covid-19-news-2020.php
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COVID-19 and the LGPS
➢ Secondment
➢ If any LGPS members are seconded on emergency staffing to the NHS, they continue to pay LGPS contributions and build up pension in the LGPS.
➢ Emergency Volunteering Leave (EVL)
➢ Employee contributions are based on the member’s actual pay during EVL. Employer contributions are based on Assumed Pensionable Pay (APP).
➢ Reserved Forces
➢ LGPS members on reserve forces leave can choose to remain in the LGPS. If an employee chooses to remain in the LGPS, their contributions will be based on Assumed Pensionable Pay (APP). The employer must tell the MOD the APP figure, the amount of basic employee and employer contributions that must be paid and details of any additional contributions the member is paying. The MOD will pay the contributions to the administering authority. Any payments made by the employer to a member who is on reserve forces leave are non pensionable.
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McCloud court case
➢ The Government has confirmed there willbe changes to all main public service pensionschemes including the LGPS .
➢ All about extending existing protections to members who were in theLGPS on 31 March 2012.
➢ We are waiting to find out what the changes will be when theGovernment publishes its consultation on removing the discrimination.
➢ Likely that Administrators will have to calculate 2 separate sets ofbenefits to compare old final salary benefits with CARE benefits goingforward.
➢ The good news for you as Scheme employersis you have already been telling us the changes in hours.
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Pension Scams
Scammers taking advantage of members in lockdown
➢ Contact you out of the blue (Government banned cold calling in relation to pensions in January 2019)
➢ Offer free pension reviews
➢ Pension loans
➢ Upfront cash – could end up with a 55% tax bill
➢ Money often linked to high risk investments – (investments can go down as well as up!)
➢ Limited Offer – act now! Rushed into making a decision
➢ Promise you can get access to your pension before age 55
➢ Make sure the company is legitimate - Financial Services Register & the FCA Warning list on the website:
https://www.fca.org.uk/scamsmart/about-fca-warning-list
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What are our Team doing
➢ Top priority is to keep the team safe and well – we are all working at home.
➢ Trying to maintain a near normal business.
➢ It is not business as usual.
➢ In line with The Pensions Regulator (TPR) guidance we are prioritising pensions payroll, retirements and deaths.
➢ We are encouraging you to use the pension portal.
➢ We are discouraging paper and have made most of our PDF forms so that they can be completed electronically.
➢ We are contactable by telephone and email using the usual contact details.
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Year-end 2019/2020
➢ Sent out count-down bulletins from February 2020 onwards
➢ All returns were expected by 30 April 2020
➢ In 2019/2020 we were expecting 441 returns
➢ The vast majority were received on time
** Thank you! **
• 86% received by the end of April• 98% received by the end of May
• 4 small employers with special circumstances still working on their submission
➢ We continue to support and help you with the process
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What can you do
** USE ONLINE SERVICES ONLY **
➢ Maintain employer contact details
➢ Notification of New Starters in bulk
➢ Notification of Changes – especially addresses changes and hours changes
➢ Early Notification of Retirement
➢ Notification of Leaver
➢ Secure transmission of Year End Return, notification of TUPE transfers, any other documents
** Paper forms, completed in ink must be scanned and uploaded via the Employer Portal **
More information about NPF forms in our spring special Employer Newsletter
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Employer Support
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Other Employer Support
LGA – LGPSregs.org/news /covid – COVID webinar for LGPS employers
Regular national and regional training events:
➢ Understanding auto enrolment and the LGPS
➢ Understanding the employer role
➢ Further details can be found on:
www.local.gov.uk/events
➢ The Pensions Regulator website:
www.thepensionsregulator.gov.uk
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Thank you for listening!
www.norfolkpensionfund.org
Norfolk Pension Fund
Email [email protected]
Telephone 01603 495923
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