Government Consultation – restricting exit payments in the public sector
Consultation period 10 April 2019 closes on 3 July 2019
You will recall from a previous Fund communication that the Government planned to introduce a £95,000 (£95k) cap to exit payments for public sector bodies. The original Government proposals were issued in summer 2015, however on 10 April this year the Government announced a final consultation which closes on 3 July 2019
Who does this affect?
This affects most public-sector employers and in the Local Government Pension Scheme has particular relevance for councils (whether metropolitan, county, district borough or parish) Police and Fire Authorities as well as Academies
What is the Exit payment cap?
The cap limits the exit payments made to employees of public sector bodies. The proposed cap of £95K would cover the total value of exit payments (before tax) made by an employer and will cover the strain cost of early payment of pension and redundancy payments, plus any other compensation or severance payments (e.g. pay in lieu of notice, etc.).
Benefits relating to Ill Health Retirement are not affected by the cap
We have attached a link to the Governments’ Consultation, which sets out in detail how the proposed changes will be implemented and the impact they may have on public sector bodies and their employees
Employers should assess the impact the proposed changes will have on their organisation and consider submitting a written response to the Consultation by 3 July 2019.
The Staffordshire Pension Fund are assessing the impact the Consultation will have on the LGPS and will issue our own response by 3 July 2019
Further details can also be found in the LGPC briefing below:
Guidance on the regulations
Pension Administration Strategy – Consultation period closes on 21 May 2019
We have recently reviewed and updated the Administration Strategy, which is now open for consultation with our Employers.
The aim of this strategy is to detail requirements for liaison and communication between Employers and the Staffordshire Pension Fund thus ensuring regulatory compliance is achieved and best value service standards are delivered to scheme members and other parties to meet their statutory obligations.
The strategy also seeks to promote good working relationships, improve efficiency and ensure agreed standards of quality in delivery of the pension administration service amongst the Employers and the Fund.
Please click on the link to access the draft Administration Strategy.
DRAFT - Staffordshire Pension Fund Administration Strategy V.2 (1.1MB)
The strategy is developed in consultation with Employers in the Fund, we would therefore encourage Employers to review the strategy and feedback any comments and views by the consultation closing date of 21 May 2019.
Please send your feedback/comments to Martin Griffiths at the following email address email@example.com
Local pension board elections – April 2019
The term of office of the current members of the local pensions board is due to come to an end in the Autumn of 2019.
The fund is therefore looking for expressions of interest from both employers and individual scheme members who might be interested in standing for election to the local pensions board, as a representative. We are particularly looking for a representative from one of our larger employers or an academy / education establishment and another representative who is an active or deferred member of the Staffordshire Pension Fund.
The role of the local pensions board is to assist the scheme manager (the county council) to secure compliance with the LGPS (Local Government Pension Service) regulations and help to ensure the effective and efficient governance and administration of the LGPS, for the Staffordshire pension fund and its members.
The local pensions board meets quarterly, and all meetings are open to the public. The agendas and minutes of the meetings are published by Staffordshire County Council on its website.
If you are interested in putting yourself or your organisation forward or perhaps you have a colleague who might be just what the local pension Board is looking for, then please email our communication officer Martin Griffiths.
All nominations must be received by 31 May 2019. This will enable any selection process, which will be informal, to be undertaken prior to the 4-year term of office commencing in the Autumn of 2019.
Employer training day – April 2019
Our next Employer Training Day will be held on Tuesday 25 June. Please put this date in your diary. It will be a valuable training event for any payroll and HR staff that deal with pension issues.
Each employer will be able to send up to 5 representatives. If the numbers get tight we may, however, ask employers to reduce the number of staff they are sending. Further details will be provided shortly, including how you can book places for this event.