Employer Focus - April 2021
This bulletin from the Staffordshire Pension Fund, focuses on current issues that you should be aware of relating to the Local Government Pension Scheme (LGPS).
Deadline for employer's year end submissions (except employers using i-connect) Back to top
We would like to remind all employers that the submission of data for the financial year ending 31 March 2021 must be received by Pensions Services no later than 23 April 2021, in order that we can comply with the requirement to issue annual benefits statements within statutory time limits.
This deadline will allow for data validation processes to be completed and any necessary data cleansing to be performed prior to the issue of our members' annual benefit statements.
Employer guidance
To assist employers with completing their annual return we have a dedicated area of the Pension Fund’s website, which contains all the necessary documentation for completion including guidelines and supporting information.
Please note: failure to respond by 23 April 2021 will result in the late issue of members' annual benefit statements, which constitutes a breach of law and which further invokes a legal requirement for the breach to be reported to the Pensions Regulator, exposing both the employer and the administrator to the risk of censure and financial penalty.
Please contact us immediately if you cannot comply in the current circumstances or foresee any problems with meeting this deadline.
Important - McCloud judgement Back to top
Please note: all employers are legally required to provide LGPS members' payroll data.
During the last year the Fund has tried to provide all employers with regular updates and guidance in order to prepare you to obtain and provide us with the LGPS member payroll data for past and present employees going back to 1 April 2014.
To further assist employers, the Fund now has a webpage dedicated to the McCloud judgement. Employers can access all the relevant information, including:
- the background to the judgement
- how the discrimination within the LGPS will be rectified
- a breakdown of the payroll information employers will be required to provide
Submitting LGPS member payroll data
Neither the Fund nor employers should underestimate the considerable work involved to rectify members' records and the administration burden this will place on resources.
Key to a successful outcome of this exercise is that the Fund and employers work together closely and in partnership. As a consequence, over the last six months the Fund has been working alongside its administration system provider on a software programme to assist both employers and the Fund.
This work has enabled the Fund to identify all your employees, past and present, who since 1 April 2014 have been or remain a member of the LGPS and who may potentially benefit from the McCloud judgement.
During June 2021, we intend to contact all employers providing you with the name and national insurance number of all employees who we consider to be in scope of the judgement. The communication will also include the specific date that the employer is required to submit the LGPS members payroll data to the Fund.
Please note: it is an employer responsibility to provide the Fund with the correct data even if you delegate the collection of data to a third-party payroll provider. It is because of this that we ask for the key employer contact who we liaise with to be employed within your organisation.
Draft funding strategy statement (FSS) - employer consultation closes on 18 May 2021 Back to top
The last full review of the FSS was undertaken as part of the 2019 actuarial valuation and following a period of consultation the FSS was approved and published in June 2020.
However, as a result of LGPS regulatory updates on 23 September 2020, further changes are required to the FSS to reflect:
- the approach to be taken by the Fund in dealing with the uncertainty arising from the Goodwin court case
- an explanation of the circumstances under which the Fund might amend contribution rates between valuations
- detail in relation to the payment of a cessation debt and the considerations that the Fund will make before paying an exit credit in line with their exit credit
- the circumstances in which the Fund will enter into a deferred debt agreement (DDA) as an alternative to the payment of an immediate cessation debt
Consultation
Following the new regulations coming into force, the Fund's FSS has been updated to incorporate the new regulatory requirements.
The draft FSS was endorsed by Pensions Committee on 26 March 2021.
The final version of the FSS is subject to the outcome of a period of consultation with employers and other fund stakeholders.
The draft funding strategy statement is available on our website.
If you wish to submit a response or have any queries please email pensions.comms@staffordshire.gov.uk with "Funding Strategy Statement" as the subject title of your email.
If you require any further information or clarification, please do not hesitate to get in touch: