Author Archives: Mike Germon

Ombudsman determination on lump sum commutation factors

Posted on by Mike Germon

The Pensions Ombudsman has published his determination in a case concerning the lump sum paid to a firefighter on his retirement. The case will have relevance to many firefighters and police officers who retired in the early 2000s.

Please note that it is still early days and the outcome of this recommendation is still under review. We are expecting to receive more information on this over the next 6 months and when we do we will then contact any members that maybe effected.

The bulletin explaining this and implications in more detail can be found here

Determination in Milne v GAD Q&A

 

31st July 2015

Following the determination of the Pensions Ombudsman in Milne v the Government Actuary’s Department (GAD), this document, provided by GAD relating to the Police Pension Scheme 1987, includes tables of factors to be used in calculating redress and detailed guidance for scheme administrators to aid them in calculating the amounts owed to individuals.

The following message has been received from the Home Office with regards to expected timescales:

The Government recognises that some administrators will need to assess hundreds of cases and that this will take time, but expects that pensions administrators will make the majority of calculations by December 2015 and the majority of payments by April 2016.

5/11/15

On Monday 2nd November all pensions administrators received a letter from the Home Office confirming the following:

‘Discharge notice

Please accept our apologies that it has taken longer than expected to revert with advice in relation to discharge notices. We recognise that former officers are concerned about the issue. The topic has raised unexpectedly complex issues. However, the timescale for payments that we set out originally has not changed – the Government expects that pensions administrators will make the majority of calculations by December 2015 and the majority of payments by April 2016.  We expect that these issues will be resolved shortly (i.e. within the next few weeks) and we will provide further advice as soon as possible.

Payments and funding

Some forces have asked whether they can take responsibility for commencing payments using their own discharge notice. Our recommendation remains that forces await the further advice that is to be provided.’

 

17/11/15

On Monday 16th November, all pensions administrators received a letter from the Home Office confirming the following:

‘Following careful consideration of the issue of the discharge notice, the Government has decided that, given the particular circumstances of this case, the use of discharge notices is not required in relation to these payments. Therefore, forces can make payments to the individuals affected in line with the guidance provided by GAD. I would like to thank you for your patience whilst we considered a complex set of issues that have unfortunately taken longer than expected to resolve.’

Therefore, Peninsula Pensions will shortly be advising both individuals and the Pensioner Payroll Team, of the amount of payment due.  The majority of payments will be made with your normal January 2016 pension payment, due on around 1st January 2016 (nearest working day being 31st December 2015).

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Freedom and Choice

Posted on by Mike Germon

The Budget has now confirmed that from April 2016 people who have already bought annuities on the open market will be allowed to exchange their pension pot for a lump sum.  Please click here for more information on this change in legislation

Please note that this change in legislation applies to Defined Contributions pensions (Personal Pensions) and does NOT apply to Defined Contribution pensions (Local Government Pension Scheme).

We have a factsheet (Freedom and Choice) on this for members of the Local Government Pension Scheme to read and this can be found here on our forms and documents page

 

 

 

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Contribution bands 2015/16

Posted on by Mike Germon

Please find below the contribution bands that take effect from 1st April 2015

Contribution Table 2015/16
Band Actual pensionable pay for an employment Contribution rate for that employment
Main section         50/50 section
1Up to £13,6005.5%         2.75%
2£13,601 to £21,2005.8%         2.9%
3£21,201 to £34,4006.5%         3.25%
4£34,401 to £43,5006.8%         3.4%
5£43,501 to £60,7008.5%         4.25%
6£60,701 to £86,0009.9%         4.95%
7£86,001 to £101,20010.5%         5.25%
8£101,201 to £151,80011.4%         5.7%
9£151,801 or more12.5%         6.25%

 

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Shadow Scheme Advisory Board

Posted on by Mike Germon

 

The Shadow Scheme Advisory Board (SSAB) has today published a briefing note in respect of the cost control processes which will be used to assess the costs of the reformed LGPS in England & Wales.

Please click here to see this briefing note.

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Changes to the Local Government Pension Scheme

Posted on by Mike Germon

You may have heard that there will soon be changes to your Local Government Pension Scheme (LGPS) pension.

From 1 April, the LGPS will change from a Final Salary Pension Scheme to a Career Average Pension Scheme. You may have heard it referred to as a CARE (Career Average Revaluation Earnings) scheme. This means that the benefits you build up are worked out using your pay each scheme year, rather than on your final salary.

It’s important to know that everything you have paid into your pension before April will be protected. If you are currently a contributing scheme member, your pre-April 2014 pension will still be based on your final salary when you leave and the current Normal Pension Age.

If you already receive a pension or have left with a deferred pension these changes do not affect you.

The LGPS 2014 website has lots of information about the new scheme.

Look out for more information about the new scheme coming up and if you would like to talk to someone at Peninsula Pensions, please call 3000 and ask for Pensions.

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LGPS 2014

Posted on by Mike Germon

From 1st April 2014 The Local Government Pension Scheme changed from a Final Salary pension scheme to a CARE (Career Average Revalued Earning Scheme).

For more information on the scheme changes and how this  will effect you please visit www.lgpsmember.org

 

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Annual Benefit Statements

Posted on by Mike Germon

 

Please note that if you are an active member the Annual Benefit statements for 2013 will be issued in the Autumn.  This change in process was stated in our last newsletter which was distributed to all staff by their employer.

You can find a copy of this newsletter here.

 

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New Contribution Bands 2013

Posted on by Mike Germon

The contributions you pay as a member of the Local Government Pension Scheme are based on your whole time equivalent pay.  Please find below the bandings from April 2013.

Whole time equivalent pay range

£0 – £13,700                           5.5%

£13,701 – £16,100                5.8%

£16,101 – £20,800                5.9%

£20,801 – £34,700               6.5%

£34,701 – £46,500                6.8%

£46,501 – £87,100                7.2%

More than £87,100               7.5%

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