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Following feedback from employers we have made some changes to the leavers form, reducing some of the information you need to provide. Please remember to check the members record on Employer Self Service before submitting the form so that our records match the information you provide and double check the leaver form to make sure you are providing all the relevant information for the leaver. Taking time to do both will mean we will not have to reject the leaver form and send you a work activity which result in a more efficient process and better service for your employees.
We have removed the Award of additional pension section as in most cases this option is arranged before the member leaves. However, such an award may also be made within six months of leaving to those people who have left on the grounds of redundancy or business efficiency under Regulation 31. If you are meeting the full cost of the additional pension to be purchased, you can obtain a quote from the national website or from us of the lump sum cost for that member. You can find more details about the process on the Buying additional pension page on our website or you can contact the Employer & Communications Team.
On 7th October 2021, HMT published the Public Service Pensions (Valuation and Employer Cost Cap) (Amendment) Directions 2021.
In February 2019, HMT paused the cost cap element of the 2016 valuations. This was due to the uncertainty regarding the cost following the McCloud and Sergeant litigation. There is now sufficient certainty regarding the costs and this direction allows schemes to conclude their 2016 valuations.
On 4th October 2021, HMT published its response to the Public Service Pensions: cost control mechanism consultation. The Government’s response confirms it will proceed with all three proposed reforms:
• move to a reformed scheme only design so that the mechanism only considers past and future service in the reformed schemes. The costs relating to legacy schemes are excluded.
• the cost corridor will be widened from two to three per cent of pensionable pay.
• introduce an economic check, so that a breach of the mechanism will only be implemented if it still would have occurred had the long-term economic assumptions been considered.
The Government is aiming to implement all three proposals in time for the 2020 valuations.
In October, The Pensions Ombudsman (TPO) have launched a new webpage on how to avoid the Ombudsman. It contains ‘top tips’, links to case studies, key determinations and new frequently asked questions.
They have also published a guidance note on communicating with pension scheme members. The note sets out simple steps that can be taken to resolve pension disputes and complaints without the need for TPO to be involved. Please review the guidance and check if you need to update your complaint procedures and communications.
On 20th October 2021, the Office for National Statistics announced the Consumer Prices Index (CPI) rate of inflation for September 2021 as 3.1%. Government policy in recent years has been to base increases under the Pensions (Increase) Act 1971 and revaluation of pension accounts under section 9 of the Public Service Pensions Act 2013 on the rate of CPI in September of the previous year.
We await confirmation from Government that the revaluation and pensions increase that will apply to LGPS active pension accounts, deferred pensions and pensions in payment in April 2022 will be 3.1 per cent
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