The end of Contracting out and the LGPS - Newsletter for Active Members
The ERPF has recently written all its active members to inform them of the important changes to the amount of National Insurance Contributions that they will pay from 1 April 2016. If you have not received your copy of this communication then please click here to view.
If your letter did not arrive and you have changed your address or your personal details please update your address using our online form available here.
Further information about the issues covered by the newsletter are listed below.
Planning for Retirement Workshops
The East Riding Pension Fund (ERPF) has an arrangement with Affinity Connect, one of the largest providers of retirement and redundancy services to the public sector to offer pre retirement workshops to Local Government Pension Scheme (LGPS) members to help them prepare for the significant changes which take place at retirement. The workshops provide information on a comprehensive range of topics raising awareness of issues to be considered and decisions that need to be made before retirement. The workshops are free of charge but any time taken to attend must be agreed with the delegates own manager in accordance with annual leave guidelines and/or flexible working arrangements. For more information about the workshop content, dates, venues and how to book a place please see here.
The State Pension is changing from April 2016
A new single tier, flat rate State Pension is being introduced for people who reach State Pension age on or after 6 April 2016. To find out how these changes will affect members of the LGPS click here.
Contribution Flexibility - The 50/50 Section
Information about the 50/50 section of the LGPS which allows you to pay half your normal contributions in return for building up half your normal pension, whilst retaining full life and ill health cover are available here.
Lifetime Allowance Tax Charge
The Lifetime Allowance is the amount of savings you can take from your pension scheme at retirement without facing a tax charge. Details of the Lifetime Allowance are available here.
Annual Benefit Statements 2015 *UPDATED*
The Fund and many of the participating employers have experienced difficulties in implementing the new local government pension scheme. This unfortunately means that there has been a delay in issuing both deferred and active member annual benefit statements this year and we apologise for the inconvenience this causes. We are committed to working with our employers to provide the statements as soon as we can. Please continue to revisit this site for regular updates.
Deferred Annual Benefit Statements – update
The deferred annual benefit statements were issued, in paper format, week commencing 12 October 2015. In the future we hope to provide the statements on line but written confirmation will be provided when this facility becomes available.
The Frequently Asked Question for the Deferred Annual Benefit Statements are available here.
Active Annual Benefit Statements – delay in sending statements
As you may be aware, you would normally have expected to receive your annual benefit statement around the end of November. However, the Fund is now required to issue annual benefit statements no later than five months after the end of the scheme year ie by 31 August. We have been unable to issue any active annual benefit statements by 31 August for a number of reasons. These include:
· This being the first year of the CARE scheme
· Changes to our pensions administration system
· Our employers having to provide information within much stricter timescales
So far we currently have information from about 40% of our employers and are working closely with the remaining employers so that they can provide their information. For those employers whose information we received before 31 August we aim to provide annual benefit statements to their employees by 30 November 2015. For those employers for whom we have not received any information we will send statements to their members as soon as we can but we cannot say how long it will take to get the information.
Around 63% of our Active members have now been issued with an ABS and we are working to ensure that the remaining Active members receive a statement as soon as possible. This page will be updated again when further statements are ready to be issued so please continue to visit this site for information.
The Frequently Asked Question for the Active Annual Benefit Statements are available here.
Council Pension Funds Collaborate to Create New Asset Partnership
Following advanced talks, the Local Government Pension Funds of Cumbria, Surrey, and East Riding Councils have announced their intention to work towards the development of a pooled investment partnership. This will initially see the creation of a multi asset pool of £9bn. They are currently extending the discussions to other like minded Funds with a view to having a viable option ready for response to the upcoming consultation from government. Please click here to view the full details.
Prudential introduce new online facilities for LGPS members
Anyone already paying Additional Voluntary Contributions (AVCs) can now make amendments to their account online at any time that is convenient, no matter what time of the day or night.
New AVC contracts can also be started online for any members of the LGPS who wish to increase their retirement benefits through the payment of AVCs.
Visit Prudential at: www.pru.co.uk/rz/localgov/england-wales/ and go to the Get started page to start your AVC, or the existing members section to increase them.
More information on the alternative options available to members who wish to increase their retirement benefits is available here.
Amendments to the new Local Government Pension Scheme Regulations
A summary of the recent changes made by the amendment has now been issued. Please click here to view.
Pensions Increase 2015
The Government have confirmed that Local Government Pensions, which have been in payment for more than a year, will increase by 1.2% from Monday 6th April 2015.
For more detailed information on how the pensions increase will be applied to your pension please click here.
1 May 2015
Transfers from the LGPS to Defined Contribution Schemes
Over recent months there has been a great deal of information in the media and elsewhere about the Government's announcement in the 2014 Budget that reforms to workplace pensions would be made to offer greater flexibility (‘Freedom and Choice’ ) in the way individuals aged 55 and over can access any Defined Contribution (DC) pension savings they may have.
These changes are effective from 6 April 2015. To help you understand how these changes may affect the LGPS a Question & Answer leaflet has been produced and can be viewed here.
25 March 2015
Cost Control Briefing Notes
The Shadow Scheme Advisory Board (SSAB) has 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.
A briefing note for members and employers
has been published.
12 February 2015
East Riding Pension Fund Annual Report & Accounts 2013-14
At 31 March 2014 the Fund had a total membership of 98,501 and was valued at £3,316.5m, having paid out £135.4m during the year for the benefit of Scheme members. This is an increase in the Fund value of £238.4m from 31 March 2013. To find out more about the management and financial performance of the fund please see the Summarised Annual Report & Accounts or the Full Annual Report & Accounts.
14 November 2014
This authority is required by law to protect the public funds it administers. It may share information provided to it with other bodies responsible for auditing or administering public funds, in order to prevent and detect fraud. Data matching involves comparing computer records held by one body against other computer records held by the same or another body to see how far they match.
Computerised data matching allows potentially fraudulent claims and payments to be identified. Where a match is found it indicates that there is an inconsistency that requires further investigation. No assumption can be made as to whether there is fraud, error or other explanation until an investigation is carried out. Data is handled in accordance with the council's:
Fair Processing Notice for Data Matching
26 August 2014
LGPS 2014 Regulations & Guidance
Please be aware that further revisions for the HR, Payroll and further administration guides have now been issued and can be found on www.lgpsregs.org within the Guides and Publication section of the web site.
11 June 2014
Change of your personal details (Active & Deferred Members only)
Have you recently moved house, changed your name or would like to update any personal contact details?. You can now notify the ERPF of your new details by completing the new on line form.
29 April 2014
LGPS 2014 Contribution Calculator
A ‘Contribution Calculator’ for the new scheme has been launched allowing you to see at a glance both the gross and net contribution amount for the new scheme.
For more information and to see how it works please go to the LGPS 2014 home page.
14 March 2014
LGPS Guides - April 2014
The LGPC has updated the following guides and leaflets to the LGPS for employees in England and Wales for April 2014:
29 May 2014
Pension Pay Dates (April 2015 - March 2016)
2015: 30 April, 29 May, 30 June, 31 July, 31 August, 30 September, 30 October, 30 November, 31 December
2016 29 January, 29 February, 31 March
25 March 2015
The government has introduced a new law to make it easier for people to save for their retirement. This requires all employers to enroll their workers into a qualifying workplace scheme if they are not already in one. For more information please click on the Auto enrolment button below.
15 March 2013
Beware of the 'pension predators'...
Have you recently been approached by a company claiming they can help you access your Local Government Pension Scheme (LGPS) pension early? If the answer is yes then you are not alone.
Some of our members have contacted us as they have been tempted by the prospect of transferring their years of LGPS membership to another arrangement so it can be converted into cash and drawn before retirement.
This is known as ‘pension liberation’, the latest financial 'scam' to hit the UK.It threatens your pension scheme benefits, not only those payable on retirement, but also those to your dependants on death in service.
There will be an article on this in our latest newsletter due out in April. In the meantime, you may want to read the following information leaflet, issued by the Pensions Regulator, so you know exactly how the scam works and don't do something you may later regret.
28 February 2013
Changes to the Tax Controls on Pension Savings
The Local Government Pension Scheme (LGPS) is fully approved by HM Revenue and Customs (HMRC), which means that you receive tax relief on your contributions as they are deducted from your pay. However, there are two HMRC controls on the amount of pension savings you can have before you become subject to a tax charge. This is over and above any tax due under the PAYE system on your pension once it is in payment.
The two controls on pension savings are known as the annual allowance and the lifetime allowance and this leaflet takes a brief look at the recent changes made to those allowances.
19 December 2011