Employer training workshop estimates, early leavers and retirements
Estimates
What are the responsibilities of the employer?
- Determine type of estimate
- Provide the relevant information
- How it should be provided
- Understand these timescales
- Instruct us where / when the members pension figures should be sent
What are the expectations of the member?
- What do you promise them?
- Are members aware of what they can obtain themselves and which can only be requested by the employer
- MPP - do you use the promotional material produced by the fund to make them aware of this facility?
Types of estimates
Redundancy / business efficiency
- Strain (cost to employer)
- Over 55 pension figures to member on your request
- No deferred figures issued to under 55s
- Timescales - plan ahead
Flexible retirement
- Employer policy required
- Strain (waive not waive) - could still be a cost to the employer!
- Paperwork to process case
- Figures to be issued to a member, following clear steer from employer
- Timescales - plan ahead
Ill health
- Strain
- Death in service
- Permanent ill health award
Age retirements
Early leavers
What are the responsibilities of the employer?
- Determine the reason for leaving
- Provide the relevant information in the correct format
- Ensure forms are submitted in a timely manner
Types of early leavers
Opt out
Voluntary resignation
- Under 60 - deferred benefit awarded if greater than 2 years service
- If want to claim pension (55-60) need to let the fund know as three months notice is required
- Over 60- will discuss under retirements
Redundancy / business efficiency
- Under 55 - deferred benefit awarded if greater than 2 years service
- Over 55 - will discuss under retirements
Tupe
- Need to make it clear on the leaver form that it is Tupe
- Make fund aware as soon as possible
Dismissal / capability
- Right of appeal is included within decision letter
- IDRP - can appeal decision (employer) or challenge calculation process (fund)
Retirements
Types of retirement
Redundancy / business efficiency
- Strain (cost to employer)
- Over 55 pension payable immediately unreduced
Flexible retirement
- Employer policy required
- Over 55 and reduction in hours / grade
- Separate form - PENFR1
- Strain (waive not waive)
- Estimates been provided
Ill health
- Level of tier awarded - on LV1
- Copy of LGPS medical certificates
- IRMP short report
- Dismissal letter
Age retirements
- Over 60 - pension options will be sent
- 55-60 - deferred pension will be calculated unless employer or member states otherwise
- Late retirement - Over SPA
- Upper limit is age 75 (will need to be opted out)
Process and timescales
What do you need to provide to the fund?
- Leaver forms to be priovided in all cases
- Termination details to include:
- Date
- Reason for leaving
- Pay (please note - we may need 13 years worth of final salary)
Actual retirement process
2 Stage process
Stage 1 - communication quotations
- Disclosure requirement
- 2 months if leaving under SPA
- 1 month if at or over SPA
- Breach is responsible to regulator if not met
- Service standards
- 15 working days from receipt of the leaver form
Stage 2 - actual payment
- Service standard member to receive payment of any lump sum retirement grant within 13 working days of us receiving all information / documentation
- Pension will be paid (with arrears) at the end of the next pay period
Exit payment cap update
- Exit payment cap paused – 12 Feb 2021
- MHCLG wrote to Chief Finance Officers in May 2021 requesting historical exit payments data (back to 2014/15)
- Deadline to submit response in 30/06/2021
- The data will be used to inform delivery of the Government’s policy to end excessively high exit payments in the public sector.
- No changes to pensions or compensation regulations without a further consultation exercise
Downloadable version
A downloadable version of the above information is available: