Newsletter Summer 2017

Transcription

1 Newsletter Summer 2017 Welcome to our first employers newsletter of I don t know about you but it really lifts my spirits to see the summer flowers in my garden and enjoy the longer days. It was great to see so many of you at our Employer Workshops here at Lawrence House earlier in the year. I know from your feedback that those who came along really found the sessions worthwhile. If you couldn t get to this round but are still interested do let us know. In this issue Diary Date - Employer Forum Retirement Planning Seminars Pensions Administration Strategy Investment Strategy Update Public Sector Exit Payment Reforms Your responsibilities for reporting breaches of the law to the Pensions Regulator Another useful date for your diary is our next Employers Forum, which is on Wednesday 5 July. The Professional Development Centre at Woodside Road seemed to work well as a venue last time so we are returning there again this time. As ever we hope you find this edition of our Newsletter helpful and informative. Do let us know if there are any things you d like us to cover in future editions or Forums and workshops, or if you d like to know more about anything you read in here. Best wishes, Monthly Remittance Advice SR71 Annual Benefit Statement Retired Member Forum Investment Reform Pooling The ACCESS Pool Pensions Committee Special Clinics for Employers Pensions Oversight Board Vacancy on the Pensions Oversight Board Year-end 2016/17 Nicola Mark Head of Norfolk Pension Fund Is your Dispute Policy up to date? Reshaping or Reorganising your Service Delivery? Pre-Retirement Courses

2 Page 2. Diary Date - Employer Forum The next meeting will be held on Wednesday 5 July at Norwich Professional Development Centre, 144 Woodside Road, Norwich, NR7 9QL. Registration and coffee from 9.30am for a 10.00am start. Note Venue! Please call Sam Batterbee on or sam.batterbee@norfolk.gov.uk to book your place. We hope to see you there! Retirement Planning Seminars Prudential, supplier of the Norfolk Pension Fund Additional Voluntary Contribution (AVC) scheme, has been holding seminars at employers offices to help employees with their retirement planning. These events offer scheme members an opportunity to gather useful information on the various pension and investment options to make financial arrangements for their retirement. If you would be interested in holding a seminar for your employees, please Mark Alexander at mark.r.alexander@norfolk.gov.uk or call Pensions Administration Strategy Employer Forms/Portal Under our Pension Administration Strategy issued last April we set out that employers should use online forms and processes via our secure employer portal from October 2016 for all data submitted to us. However, some employers are still sending in paper forms. Please note that as from 1 April 2017 we only accept data sent to us via the employer portal. If you have any questions about the Pension Administration Strategy please contact Mark Alexander on

3 Page 3 Investment Strategy Update As you will be aware, the Norfolk Pension Fund, and indeed the LGPS as a whole, has continued to see an increase in the number and diversity of the employers who participate. There are a number of features of employers that impact on funding strategy such as funding level and funding objective. From valuation to valuation, the contribution strategy has been ever evolving to help deal with these features and ultimately to help you, our employers, achieve the best possible funding outcomes. Contribution strategy in isolation can only do so much to deal with the diversity of employers. Following analysis by the Fund s advisors, both investment and actuarial, the Fund is now considering how it may use the investment strategy to further help employers. What this may mean in practical terms is that the Fund implements a small range of investment strategies over time, with employers allocated to the investment strategy which is most appropriate given their funding level and funding objective. This is a change from the Fund s current approach of operating a single investment strategy for all employers. You will appreciate that this is an involved and complex project. We will communicate regularly with you as this progresses and of course, before any alterations that may affect you are implemented. We will provide more detail at the employer meeting in July and therefore ask that you consider the most appropriate representative from your organisation to attend. In the meantime should you have any questions on the Fund s investment strategy, please contact Alex Younger on or Glenn Cossey on Public Sector Exit Payment Reforms The long anticipated reforms to exit payments made by public sector employers are still awaited! We understand that HM Treasury are intending to consult on further regulations before the reforms come into effect. We will keep you up-to-date as when there are further developments.

4 Page 4 Your responsibilities for reporting breaches of the law to the Pensions Regulator The Pensions Regulators Code of Practice for the Governance and Administration of Public Service Pension Schemes sets out some of the legal requirements, gives practical guidance and sets standards that those involved with public service pensions schemes (including the Local Government Pension Scheme) are expected to adhere to. As an employer in the LGPS you have responsibilities under the Code of Practice. This includes telling the Regulator if you think there has been a breach of the law that is likely to be of material significance. Weighing the cause, effect, reaction to and wider implications of any breach should help establish this. The Regulator provides some examples to help with this and also suggests using a traffic light system for evaluating the need to report. It is important that as an employer in the scheme you have procedures in place to enable you to identify, consider, record and if necessary report breaches of the law to the Pensions Regulator. More information about the Code of Practice for Public Service Pension Schemes and the Public Service toolkit can be found on the Pensions Regulators website: Norfolk Pension Fund contacts: Mark Alexander mark.r.alexander@norfolk.gov.uk Jo Quarterman jo.quarterman@norfolk.gov.uk Monthly Remittance Advice SR71 for 2017/18 These have been loaded to the employer portal for employers to pick up and use. Please note that the employer contribution rate for 2017/18 onwards has been assessed by the Scheme actuary and maybe subject to final confirmation.

5 Page 5 Annual Benefit Statement The Annual Benefit Statement we send to scheme members gives them an estimated forecast of their pension at retirement age, based on the data you have given us and we hold. It is a really important document to help them in their planning and decision making for their future. By law Annual Benefit Statements should be ready for members by the end of August. Assuming all goes to plan our Annual Benefit Statements will be online for all scheme members by the end of August, and we will follow this up with hard copies sent to members addresses in September combined with our member newsletter as usual. Please let your employees know that they can view their Annual Benefit Statement on line by the end of August by registering on our secure members website at Retired Member Forum Once again we had a very successful week at the end of May with retired member forums, kindly sponsored by our investment managers and advisors. In a packed programme, alongside an update with news about their pension, retired members enjoyed presentations from Promoting Independence and One you Keeping Active and Well, as well as talks about garden and container plants from Notcutts to the project to transform Norwich Castle Keep and Norfolk on Film.

6 Page 6 Investment Reform Pooling As we reported in our last newsletter, the Government wants the 91 LGPS pension funds in England and Wales to pool their assets, to create investment pools of at least 25bn. The aim is to drive down investment costs even further and develop the capacity and capability of the LGPS to become world leaders in infrastructure investment, thereby helping to drive growth in the UK economy. The expectation is that the new investment pools will begin to be used for collective investment from April 2018 onwards. Investment decisions remain the responsibility of Administering Authorities and there are no changes to administration arrangements. Pooling will not have a direct effect on employer contribution rates. Whilst in the longer term anticipated cost savings may have a positive impact, other factors (e.g. change of life expectancy, workforce profiles and the length of deficit recovery periods) are the main drivers of your organisations contribution rate. The cost management process for benefits built up in the LGPS from 1 April 2014 onwards is intended to help ensure the long term sustainability of the scheme. This process monitors the cost of the scheme to ensure that it stays within agreed parameters set by the Scheme Advisory Board and HM Treasury. If costs increase outside these parameters, future changes to the scheme design may be needed. Further information about investment reform is on the LGPS Scheme Advisory Board website: The ACCESS Pool The Norfolk Pension Fund has been working with 10 other like-minded Administering Authorities, to form the ACCESS ( A Collaboration of Central, Eastern and Southern Shires ) Pool. Together the 11 Funds have assets in excess of 34 billion. Members and Fund officers are working very closely with specialist legal and technical advisors to identify and develop the right structure and approach for the ACCESS pool. The ACCESS Funds: Cambridgeshire, East Sussex, Essex, Hampshire, Hertfordshire, Isle of Wight, Kent, Norfolk, Northamptonshire, Suffolk and West Sussex.

7 Page 7 Pensions Committee Following the local government elections in May 2017, Pensions Committee membership is now made up of the following members. Pensions Committee met in twice in February. The meeting on 7 February was an additional meeting to consider the proposed Inter Authority Agreement drafted to establish the governance arrangements for the pooling of investments via ACCESS. (More information about ACCESS is on Page 6). The County Council formally agreed Pensions Committee s approach to pooling on the 20 February. Pensions Committee also met on the 21 February for their regular quarterly meeting, setting the strategic direction for the Fund and maintaining oversight of investment and administration performance. Special Clinics for Employers Following on from our popular Employer Workshops in February and March we are pleased to offer employers one to one sessions at special clinics. If you are a new employer and not sure of your responsibilities under the LGPS or not sure how to complete your Pension Policy Statement then help is at hand! If you have read our Guide to Online Services, but would like a demo or have specific questions again, we re here to help! Please give Graham Trussell a call on and he will arrange a time for you to come in and see us.

8 Page 8 Pensions Oversight Board The Pensions Oversight Board met on the 24 January, when, amongst other agenda items, they considered the Norfolk Pension Funds Breaches of the Law policy, communication arrangements with scheme employers and the triennial valuation of the Fund. They also met again on the 29 March for training, maintaining and developing their knowledge and understanding required to effectively fulfil their role. Vacancy on the Pensions Oversight Board The Norfolk Pension Fund, like all other LGPS Funds and other public sector schemes, is required by the Public Services Pensions Act 2013 (PSPA13) to have a Local Pension Board (LPB). In Norfolk our local pension board is known as the Norfolk Pension Fund Pensions Oversight Board. The Pensions Oversight Board plays a key role in the governance of the Norfolk Pension Fund, assisting Pensions Committee in ensuring that the Norfolk Pension Fund complies with regulations and helping ensure that the Norfolk Pension Fund is managed and administered effectively and efficiently. The Board, which is governed by a Terms of Reference, has an equal number of scheme member representatives and scheme employer representatives (three of each), and then a non voting independent Chair. We currently have a vacancy on the Board for a representative from the non levying/ precepting employers. To find out more about this interesting and important role, please contact Jo Quarterman at jo.quarterman@norfolk.gov.uk or call

9 Page 9 Year-end 2016/17 Employers were reminded of their statutory requirement to submit the Year-end Return online by 30 April. Thank you to all employers who were able to meet the deadline and their cooperation in helping us complete the Year-end process within schedule. Your help is really appreciated by all the team at the Norfolk Pension Fund. As always, if you have any questions about completing and submitting the Year-end return please contact Isobel Carriage on or Mark Copping on Is your Dispute Policy up to date? From the day an employee becomes a member of the Local Government Pension Scheme (LGPS), you as an the employer and Norfolk Pension Fund as the Scheme Manager have to make decisions under the Scheme rules that affect a member s pensions rights. If a member disagrees or has a complaint about a decision made regarding their pension benefits in the first instance it should be referred to the person who made that decision, either the employer or the Norfolk Pension Fund. If the complaint can not be easily resolved the member has the right to take the complaint forward under the internal disputes resolution procedure (IDRP). It is important to keep your Employer Policy Statement up-to-date. This will usually specify the person that an employee should contact in the first instance for any dispute. For more information about your responsibilities as the scheme employer, please refer to the Employer IDRP Guide (G070) on the Norfolk Pension Fund website. There is also a Scheme Member Guide to disputes available on the website.

10 Page 10 Reshaping or Reorganising your Service Delivery? Just a reminder that if you are considering options for reshaping and/or reorganising your service delivery (e.g. outsourcing) please let us know at the earliest stage of your thinking. What you are considering could have significant pension implications We can help you understand these and take into account of them upfront, for example considering what pension information you may need to include in your tender documentation. If you are considering making any changes to your service delivery, please contact Alex Younger on or alexander.younger@norfolk.gov.uk Pre-Retirement Courses Pre-Retirement courses are run regularly to help members prepare for retirement. The course is aimed at people who will be, or who are considering, retiring in the next 18 months to two years. The course includes: Creating a new future and managing change Leisure and learning Maintaining health and fitness Information about the LGPS Investment options/financial advice Estate planning and Wills Norfolk County Council manage and run courses on our behalf, which are open to all LGPS scheme members. 2017/18 Dates Monday 17 July 2017 Thursday 21 September 2017 Monday 13 November 2017 Tuesday 16 January 2018 Monday 19 March 2018 For more information and to book a place please contact HR Direct, Norfolk County Council HRdirect@norfolk.gov.uk

11 Page 11 Norfolk Pension Fund Lawrence House 5 St Andrews Hill Norwich NR2 1AD Pensions Administration Fax pensions@norfolk.gov.uk Investment, Accountancy and Strategy Fax sam.batterbee@norfolk.gov.uk Website, Technical and Employer Queries pensions.systems@norfolk.gov.uk If you would like this newsletter in large print, audio, Braille, alternative format or in a different language, please contact Sam Batterbee on (minicom ).