HERTFORDSHIRE PENSION FUND LOCAL GOVERNMENT PENSION SCHEME EMPLOYERS NEWSLETTER SEPTEMBER 2009

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1 HERTFORDSHIRE PENSION FUND LOCAL GOVERNMENT PENSION SCHEME EMPLOYERS NEWSLETTER SEPTEMBER 2009 Welcome to the latest edition of our quarterly Newsletter which provides information and guidance to support Employers in administering the LGPS. Newsletters are circulated by , so if you have not done so, please provide us with the addresses of contacts within your organisation who should be included on the circulation list. Please complete the Contact Form attached to this newsletter and it to Newsletters are also accessible from the Hertfordshire Pension Fund website at where you will find additional information and guidance. Included in this edition: Submission of Year End Returns Early Retirement Estimate Requests Annual Benefit Statements Reminders Contacts Please see the SERCO Pensions Team Contact list at the end of this Newsletter for key contacts for Hertfordshire Pension Fund LGPS Administration Queries Employers Contribution Queries Sandy Campbell Michelle O Connor Hertfordshire Pension Fund LGPS Management Queries Lyn Stainton Nicola Webb Hertfordshire Pension Fund LGPS information and guidance for employees and employers Administration Strategy National LGPS information from the Local Government Employers website L ADMINISTRATION GENERAL ADMINISTRATION Submission of Year End Returns We would like to thank all Employers that submitted their year end returns by the deadlines. Unfortunately, this is a fairly select group numbering just 47 (31%) of all Employers. This has meant that 69% of Employers have necessitated extra work to chase outstanding information and this work continues for 4 Employers whose year end data has not yet been submitted. As we are using resource to complete this work, there is a detrimental impact on: the efficient delivery of the Pensions Service for all Employers and members completion of work to check the accuracy of members service history; production of Annual Benefit Statements; and completion of year end reconciliations for the annual audit of the Pension Fund. Issue 4-September2009 Page 1 of 7

2 Employers are reminded that they are required, under LGPS regulations and, where relevant, the terms of Admission Agreements, to provide the Administering Authority with any information that is deemed necessary for the administration of the Pension Fund. This will include information for the year end closure of the Pension Fund accounts, details of any changes that affect a member s service history and payment of monthly contributions. For year end data requirements, the deadlines are particularly critical since a number of processes rely on receipt of the year end data. Adherence to the deadlines will become increasingly important for the 2009/10 Year End when the data will also be used for: The 2010 Triennial Valuation of the Pension Fund. The valuation will set employers contribution rates for three years from 2011/12 onwards. Data submission to the Communities and Local Government Department of central government which will be used to inform a review of the LGPS. 2009/10 Year End closure of the Hertfordshire Pension Fund. The submission deadlines for 2009/10 will be finite and current information indicates that Year End returns will need to be submitted by April 30, This will be one month earlier for the Contributions Return and two months earlier for the Membership Data. In preparation for these tightened deadlines, it will be important that Employers keep all members data up to date during the year. It is strongly recommended, therefore, that Employers put in place any required changes to processes to ensure that data is accurate and that the 2010 year end deadline will be met. We would welcome the opportunity to discuss any potential difficulties that Employers may have in meeting the 2010 deadlines. Please contact the Pensions Team on or by at hcc.pensions@serco.com. Alternatively, we recommend that Employers: contact the Pensions Team on or by at hcc.pensions@serco.com to organise an on-site visit to discuss specific administrative issues; ensure that membership data is kept up-to-date by advising the Pensions Team of all changes effecting members. Forms used to notify any changes are accessible from our website at Please ensure that these forms are not altered since they are designed to capture all relevant information. For new employers in the Scheme, please ensure that all starter forms are submitted to the Pensions Team promptly. Early Retirement Estimate Requests As noted in the June Newsletter, an employer may request an estimate of the strain costs for the early retirement of a member. Estimates can be obtained by submitting an Employers Estimate Request form, which is accessible from Hertfordshire Pension Fund website at The main details required are the member s name, National Insurance number, salary details and expected date of early retirement. Further information on individual requests can be obtained by contacting Cliff McCulloch on or ing hcc.pensions@serco.com. Issue 4-September2009 Page 2 of 7

3 Employers that have previously been issued the Hyman s Spreadsheet Calculator to calculate strain costs have been advised that this spreadsheet should no longer be used. A recent update to the pension fund administration system (AXISe) provides a more accurate calculation and, therefore, all requests should be made by submitting a request as described above. The volume of requests from an employer is monitored and where the number of requests exceeds 20 within a month, then a charge is levied. The maximum charge is for each estimate over 20 in a month. If you have any queries about this process, then please contact Cliff McCulloch on or HCC.Pensions@Serco.com. Reminders The deadline for monthly submission of Contribution Returns and payment of contributions is by the 19 th of each month. For example, for April payroll the due date for payment of contributions would be the 19 th May. Contribution Returns should be submitted by to pensions.team@hertscc.gov.uk and contributions should be paid by BACS to the Hertfordshire County Council General Account, Account number , Sort Code Having trouble completing pensions forms? We are happy to arrange an on-site visit to discuss completion of pension forms or LGPS administration issues. To book a visit please contact Tim Allen or Theresa Makewell on Pension forms are available from our website at These forms should not be altered or amended since they are compliant with LGPS regulations. Please only download forms when they are required to ensure that you are using the most up-to-date version. PENSION FUND MANAGEMENT ISSUES Administration Strategy The Investment Committee of the Hertfordshire Pension Fund is mindful of the administrative difficulties experienced in the closure of the Pension s Funds 2008/09 Year End Accounts and the impact of the reduced timescales that will operate for 2009/10. They, therefore, propose to consult with Employers on the introduction of an Administration Policy that will be binding on the Hertfordshire Pension Fund and all Employers. The Administration Policy will set out a Service Level Agreement that will describe the administrative arrangements, including details of fines and penalties that will be imposed if the Service Level Agreement is breached. The consultation process will take place over three weeks in October/November 2009 and it is intended that the Administration Policy is in place for January 1, Issue 4-September2009 Page 3 of 7

4 DISCLAIMER The information contained in this Newsletter should not be treated as a complete and authoritative statement of the law. Readers may wish, or will need, to take their own legal advice on the interpretation of any particular piece of legislation. No responsibility whatsoever will be assumed by the Hertfordshire Pension Fund for any direct or consequential loss, financial or otherwise, damage or inconvenience, or any other obligation or liability incurred by readers relying on information contained in this Newsletter Issue 4-September2009 Page 4 of 7

5 SERCO PENSIONS TEAM CONTACTS Mailing and Addresses Serco Solutions Pensions Department PO Box 253, County Hall, Fax Hertford SG13 9BA Main Address LGPS 2008 Regulation Changes General Contacts Pensions Manager Taryn Mutter Technical Advice and Training John Smith Systems Team Leader Geoff Phelan Projects Team Leader Rachel Tisbury Projects Team Support Alyson Harmer Projects Team Support Ross Curtis Projects Team Systems Support Iain Bagnall Membership Team Team Leader Tim Allen Additional Voluntary Contributions (AVCs) and Additional Regular Jeremy Edgar Contributions (ARCs) Admitted Authority Deferred Benefits Carol Smith Changes in circumstances Carol Smith Death Grant Nomination Forms Natasha Thomas Divorces Theresa Makewell Interfund Adjustments In Natasha Thomas Opt Outs Natasha Thomas Pensions Payroll Louise Charman Paul Farrant Securities and Investment Boards Jeremy Edgar Transfers-In Jeremy Edgar Darren Notley Transfers-Out Theresa Makewell Darren Notley TUPEs Theresa Makewell Benefits Team Team Leader Cliff McCulloch Benefit Estimates Laura Hughes Susan Barnard Changes in circumstances Lisa Ward Contribution Refunds Gill Spicer Hertfordshire Pension Fund Deferred Benefits Laura Hughes Jodie Howard Mansukh Sedani Lisa Ward Deferred Benefits into Payments Sheila Rogers Interfund Adjustments Out Mansukh Sedani New Starters Jodie Howard Police and Fire Membership Queries Caroline Clarke Claire Jarvis Retirements Laura Hughes/Susan Barnard Issue 4-September2009 Page 5 of 7

6 «employerref» HERTFORDSHIRE PENSION FUND LOCAL GOVERNMENT PENSION SCHEME EMPLOYER CONTACT DETAILS Guidance Notes Please use the grid below to provide us with contacts within your organisation for all of the areas shown below. Some of your organisation s contacts may need information on more than one area, in which case, please tick all of the relevant boxes. If you have any queries about the completion of this form, please your query to pensions.team@hertscc.gov.uk. Once you have completed the form, please return this to Sandy Campbell at Hertfordshire County Council, Pensions, Treasury and Banking Team, Room 345, County Hall, Pegs Lane, Hertford, SG13 8DQ. Employer Number Employer Name Contact Address Name Position Number Address Information about LGPS Regulations, Newsletters and Annual Employers meeting Pension Fund contributions and Year End Returns Financial management and FRS17 financial accounting (if applicable) Receipt and payment of Early Retirement Statements Membership administration including payroll info, employee starter and leaver forms If you use an external Payroll Provider, please complete their contact details overleaf

7 PAYROLL PROVIDER CONTACT DETAILS Provider Name Provider Address Contact Name No.