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In the September Edition we asked for you to provide members with a link to our retirement processes which explained the steps we need to follow and the Disclosure Regulation timeframes we need to abide by. Namely that we must contact members with their options within 1 month following date benefits becomes payable (2 months if retiring before normal pension age). Of course we will contact members as soon as possible.
We have some employers who are chasing retirement cases well within the disclosure timeframes, we would ask instead that you refer scheme members to the retirement processes. This will enable the member services team to concentrate their time on processing retirements rather than responding to chasers, which in turn will benefit all retirees.
Of course we do recognise that there are some cases that need to take priority eg those members with a short life expectancy or facing severe financial hardship and we would welcome you alerting us to such cases.
The LGA have updated their Exit Cap Regulation guidance for LGPS employers whilst we wait for the LGPS Regulations to be changed.
We have added the Exit Cap policy agreed by both the Devon and Somerset Pension Funds to our website please take time to familiarise yourself with the policy.
In particular you will note that there are extra steps in the redundancy/efficiency retirement process for Employers subject to the Exit Cap regulations, which includes confirming whether or not the Cap has been breached once Peninsula Pensions has provided the strain cost. This decision cannot be delegated to a payroll provider.
To ensure correct benefit options are sent to the scheme member we will require the employer steps to be completed before we contact them. We would therefore ask you to provide members with the link to our retirement process page and the LGA’s employee Exit Cap FAQs.
The LGA have also informed us that on 22 December 2020, three requests for Judicial Reviews of the Restriction of Public Sector Exit Payment Regulations 2020 were given permission to proceed. These requests contest the regulations on a number of grounds, including their effect on the LGPS regulations. We expect the requests to be heard towards the end of March 2021. MHCLG has confirmed that these hearings will affect the timing of LGPS regulation changes.
The LGA understand that these proceedings will prevent any direction by the Pensions Ombudsman on this matter until they are complete. LGA have asked for confirmation and will update us accordingly.
Scheme members will still be able to bring claims against employers and administering authorities relating the exit payment cap. Complaints must go through IDRP stages 1 and 2 before the member can refer the case to the Pensions Ombudsman. The adjudicator and administering authority are able to determine that they cannot make a decision at stage 1 and 2 respectively, due to the conflict between the exit payment cap regulations and the LGPS regulations. It is important to note that even if this approach is adopted, both stages 1 and 2 of IDRP must be complete before the complaint can be referred to the Pensions Ombudsman.
Just to remind you, there has been some slight changes to what is required in your pensions discretions policy. If you haven’t already, please review your current discretions policy against the current guidance on our website and send your updated discretions policies to the Employer & Communications team.
Back in November’s edition, we told you that you no longer need to log in to access the EAS5 form with the launch of the new website. We understand that some of you may have bookmarked an old link and are having problems with access so here’s the direct link to the EAS5 form.
We also asked you to confirm who completes the EAS5 Monthly Contributions form for your authority so if you haven’t already done so, please complete this form.
Just to remind you that you can use our online contact form to can confirm who completes and submits your monthly interfaces - just select ‘Keep us updated’ from the Employers drop-down menu and select ‘Confirm contact for interfaces’.
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