Focus January 2023
A downloadable version of this newsletter is available below.
Employer Focus- January 2023 (286 KB)
Over the last 12 months the Fund and Employers have worked in partnership to ensure we meet the legal requirements brought about by the McCloud Judgement i.e., to remove age discrimination within the LGPS with the introduction of a Career Average Pensions Earnings (CARE) in 2014.
In the first stage of the McCloud project, we asked Employers to complete a template with Employee payroll data for the period from 1 April 2014 to the 31 March 2021.
We have now entered the second phase of the project and require Employers to update the Employee payroll data up to 31 March 2022. Please note, the scope for the project has changed and includes an additional Member data set not identified at the first stage.
Employers who did not submit data as part of the first stage will now need to supply their Employees’ information dating back to 1 April 2014.
Whilst we understand that this exercise places additional demands on your resources, it is a legal requirement for you to provide this information and failure to do so will be a reportable breach of regulation.
Each Employer will receive a data collection template via a time sensitive secure email for return to the Fund within 3 months from date of receipt.
The data provided in your final submission will be embedded as part of your Members pension records and will be used in benefit calculations going forward, so it is important that it is accurate.
Please note:
- The guidance notes have been updated. Please review them to ensure you will meet the requirements.
- Previously submitted data should be reviewed and amended as required via your final submission.
We want to work closely with you to successfully complete this legal requirement. Consequently, if we can assist you in anyway, please let us know by contacting SPFData@staffordshire.gov.uk
Throughout this year the Local Government Association (LGA) will be holding Employer Role training workshops.
The workshops are aimed primarily at staff working for Scheme Employers who have operational responsibilities under the Local Government Pension Scheme (LGPS). Delegates do not need a thorough working knowledge of the LGPS, but some experience of the scheme and its provisions would be useful.
You can enrol on to these workshops by accessing the following link to the LGA website.
As part of an Actuarial Valuation, best practice dictates that there should also be a review of a Pension Fund's Funding Strategy Statement (FSS).
A general review has been carried out of Staffordshire Pension Fund's FSS, in line with the 2022 Actuarial Valuation, and the opportunity to make recommended changes has been taken. These include a review of the structure and layout of the FSS and improved accessibility and navigation for stakeholders.
Whilst there have been no significant changes to the funding strategy at the 2022 Actuarial Valuation, the new draft FSS now includes separate policies on:
- Academy funding.
- Passthrough arrangements; and
- Cessations, including a revised "risk based" corridor approach, where applicable.
The main changes to highlight include:
- An increase in the full funding time horizon for Academies to 20 years (previously 15 years).
- Minor changes to the passthrough admissions process; and
- the fact that climate-related risks have been considered and documented when setting the funding strategy.
A link to the new draft FSS can be found below and the Fund is now open for a period of consultation with all stakeholders and interested parties until 31 January 2023. Any comments or questions you might have on the new draft FSS should be submitted to pensions.comms@staffordshire.gov.uk.
Considering all comments received, the final FSS will be approved by the Pensions Committee at their meeting on 31 March 2023.
- Draft Funding Strategy Statement 2022 (1.3 MB)
If you require any further information or clarification, please do not hesitate to contact pensions.comms@staffordshire.gov.uk