Focus January 2024
A downloadable version of this newsletter is available below.
We have recently updated the Fund’s Outsourcing Services Guide which is available on our website.
This Guide is available to assist all Local Government Pension Scheme (LGPS) Employers in determining the pensions protections which may apply where employees are impacted by a compulsory change in employer - for example, where a business function is outsourced or there is a change in service contractor.
The Guide is designed to provide a broad overview of the protections, when they apply, and the differences between them. However, it should not be read as a definitive guide to the range of issues which need to be considered in dealing with these situations and, accordingly, where there is uncertainty, Employers are strongly advised to seek their own specialist legal advice.
MPP continues to be very popular with our Scheme Members. More Members ae using a smartphone or tablet to access their pension information. We are keen to encourage even more Members to sign up to MPP. Therefore, we would very much appreciate your assistance in cascading the following message via your internal email system, intranet site, news bulletins, notice boards etc.
Don’t lose sight of your pension.
My Pension Portal (MPP) is a simple to use, secure and user-friendly portal. MPP provides you with round the clock access to your Local Government Pension Scheme (LGPS) records. This means you can:
- See the value of your pension and view your pension account.
- Do estimates on your pension with our pension calculators.
- View the valuable life assurance and dependents pension provided.
- Easily update your contact details
- Calculate how much tax-free cash lump sum you could get.
- View your annual pension statements.
If you have already registered for MPP you can view your pension benefits today by following this link.
If you have not yet registered for MPP you will need to do so by applying for an activation code on the Fund’s website. The activation code will be sent to your home address (please allow up to 20 working days). So, what are your waiting for? Register today and get closer to your second biggest employment benefit after your pay – your LGPS Pension
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.
HM Treasury (HMT) announced in the Autumn Statement on 22 November 2023 that it will legislate in the Finance Bill 2023 to fully abolish the lifetime allowance (LTA) from 6 April 2024.
On the same day, it also published a policy paper explaining:
- how lump sums and lump sum death benefits will be taxed without the LTA.
- what will happen to people with LTA protections, lump sum protections or LTA enhancement factors.
- the function of benefit crystallisation events.
- the tax treatment of transfers to qualifying recognised overseas pension schemes.
- the transitional arrangements; and
- the reporting requirements.
Simon Hoare MP has been appointed Parliamentary Under Secretary of State at the Department for Levelling Up, Housing and Communities (DLUHC), with ministerial responsibility for the LGPS. Simon took over the role on 13 November 2023 as part of the latest government reshuffle and replaces Lee Rowley MP, who has become Minister of State (Housing) at DLUHC.
Paul Maynard MP is the new Pensions Minister. Paul joined the Department for Work and Pensions (DWP) as Parliamentary Under Secretary of State on 13 November 2023. Paul took over the role on 13 November 2023 as part of the latest government reshuffle and replaces Laura Trott MP, who has become Chief Secretary to the Treasury.
In 2022, SAB received legal advice from Lydia Seymour (Counsel) on members opting out of the LGPS on the basis of their (principally Islamic) religious belief, and whether this might constitute unlawful discrimination. In order to give a definitive opinion, Counsel advised that she needed to understand better the basis of those beliefs and the extent to which they would be broadly shared across the Muslim community.
SAB commissioned Mufti Faraz Adam of Amanah Associates, an Islamic finance expert, to produce a report on Sharia law and the LGPS. The aim being to address any possible legal risk for scheme employers and to ensure the scheme is as inclusive as possible. The SAB secretariat recently received the report and thanks Mufti Faraz Adam for providing a comprehensive and considered opinion. The SAB will now go back to Counsel for a follow-up opinion and will consider this advice alongside the full report, which is to be published in the new year.
We would be grateful if you could continue to circulate this Newsletter to appropriate staff in your organisation for example, Human Resources, Payroll and Finance Department or alternatively provide us with their email address, so we can add them to our distribution list.
If you require any further information or clarification, please do not hesitate to email the Fund at pensions.comms@staffordshire.gov.uk