Important information and legislative changes

Useful information and links for use during the COVID-19 pandemic.

Coronavirus

How to contact us

All of our staff are working remotely, if you need to contact us during this period our preferred method is e-mail, however we understand that in some instances you need to speak to us, we have updated our contact details for employers and members on the Contact Us page.

Local Government Association (LGA)

The LGA have created a Coronavirus new and information page which includes the scheme employer and administrator FAQs. You can access the page here:

LGPS - COVID-19 news and information (external website)

The LGA have also create a Coronavirus FAQ for members which can be accessed here:

ERPF COVID-19 FAQs (external council website)

The Pensions Regulator (TPR)

TPR have issued the following press releases regarding during the Coronavirus outbreak, you can access this information here:

Communicating with Scheme members

The Pensions Regulator - Communicating to members during COVID-19 (external website)

Warning to savers

The Pensions Regulator - Pension schemes to issue COVID-19 transfer warning to savers (external website)

They have also issued guidance for employers detailing what Scheme employers need to consider, you can access this guidance here:

The Pensions Regulator - Automatic enrolment and DC pension contributions: COVID-19 guidance for employers (external website)

You can access all of the guides and updates from TPR on the Coronavirus - What you need to consider page:

The Pensions Regulator - COVID-19 (coronavirus): what you need to consider (external website)

McCloud Remedy

Following the Court of Appeal judgment in December 2018, the government has been working to fix the discrimination identified in the policy of transitional protection that was part of the 2015 reforms to public service pension schemes. A consultation was now been published and closed in October 2020. You can view the draft regulations, responses to the consultation and the original consultation documents outlining the proposals to address the discrimination and the plans for the future below:

Scheme Advisory Board response

SAB response (pdf 292kb)

Amendments to the statutory underpin

Amendments to the statutory underpin (pdf 661kb)

Consultation documents

GOV.UK - Changes to the transitional arrangements to the 2015 schemes

The Local Government Association (LGA) have also published a number of documents that you may find useful when considering the proposals, these documents are available here:

GOV.UK - Local government pension scheme amendments to the statutory underpin

You can also find more information regarding the McCloud judgement on the Scheme Advisory Boards Q&A:

LGPS Board - McCloud

It is important to reassure members that any changes to the underpin protections will apply to all eligible members and that they do not need to make a separate claim for redress.

Public Sector Exit Payments Regulations

February 2021

Revocation of the Restriction of Public Sector Exit Payments Regulations 2021

On 12 February 2021, HM Treasury [HMT] published the Exit Payment Cap Directions 2021 [the Directions]. The Directions disapplied regulations 3, 9 and 12 of the Restriction of Public Sector Exit Payment Regulations 2020 [the 2020 Regulations] with immediate effect. This meant that the exit cap does not apply to exits that take place on or after 12 February 2021. HMT has provided further information in the Restriction of Public Sector Exit Payments: Guidance on the 2020 Regulations [the Guidance]. HMT confirmed in the Guidance that:

"the Government has concluded that the Cap may have had unintended consequences and the Regulations should be revoked. HMT Directions have been published that disapply the Cap until the Regulations have been revoked."

On 25 February 2021, the Restriction of Public Sector Exit Payments (Revocation) Regulations 2021 were made and laid before parliament. They will come into force on 19 March 2021.

For further information please see the update on the public sector exit payments page of the SAB website.

The Local Government Association have issued new guidance for employers:

Exit Cap Guidance for Employers (pdf 140kb)

December 2020

The Government has introduced a cap on the amount of money a public sector employer can pay when an employee leaves their employment. It is called the public sector exit cap, or £95k cap. It applies to employees leaving public sector employments from 4 November 2020.

This may affect some members of the LGPS who retire on grounds of redundancy or business efficiency over the age of 55. Where the LGPS regulations allow for unreduced benefits to be paid to members in these events, this is now subject to this exit cap.

Employers have to pay strain costs to the scheme to allow for unreduced benefits, and this payment will be included when calculating the £95k cap.

For further information on what you need to consider as an employer for any members that leave over the age of 55 due to redundancy or business efficiency, please download the document below:

LGA - Exit cap information for LGPS employers (pdf 187kb)

Scheme Advisory Board (SAB)

The SAB have also created an updates page for information relating to coronavirus. You can access the SAB updates here:

LGPS Board - Coronavirus and the LGPS information and updates (external website)

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