LGPS UPDATE (ENGLAND AND WALES SCHEME)

Transcription

1 20 October 2014 LGPS Issue no. 30 Scotland and Northern Ireland for info only LGPS UPDATE (ENGLAND AND WALES SCHEME) Activist updates, Wanted: new member representatives and an update on the national LGPS Shadow Scheme Advisory Board. 1. Activists updatesand delays in pensions payments. We will be sending regular more detailed updates on issues raised by the introduction of the LGPS to branch pension champions and reps. These will enable activists to assist members and feedback to the UNISON Pensions Unit where more help is needed. The main contact for the LGPS is Glyn Jenkins, Head of the Pensions Unit working with Alan Fox, Pensions Officer. Member pension queries should be sent to: The first update will deal with reported delays in paying pensions on retirement since the scheme changes began in April Greater delays are possible as since April there are payments that are pensionable for the first time, notably non contractual overtime earned since the 1 April So, any overtime earned from April to date of retirement will affect pension calculations. If you have received overtime since April it should not be too difficult for you to agree with your employer what payments you have received. The administering authority should still be able to process payment based on the information they have received and you should return to them a declaration based on the provisional figure. There should be no reason for excessive delays in starting the pension. Please advise the pension unit if there are problems. A more detailed update on this issue will be sent to activists soon. c:\users\sheldon\desktop\lgps_pop campaign 30.doc UNISON Protect Our Pensions LGPS campaign 30

2 2. Time to Govern Your Money Member Nominated Representatives Sought By April 2015 every LGPS fund in England, Scotland and Wales must establish a fund board with half the seats going to scheme members. This is a historic phase in member involvement in the running of your pension fund. UNISON has been campaigning for over 7 years for members to be involved in the decision making processes of the LPGS funds. Every other pension fund in the UK has member representatives, many nominated by their trade union. We need UNISON members, like you, to step up and take on this exciting role. The draft legislation has just been issued but here is a Q&A to help you through the issues. Who can be reps? You will have to be a scheme member or pensioner, but we need more scheme members because pensioners are already getting their benefits. Will there be training? Yes, you must do union training and your pension fund will train you. There are two union courses: one on benefits/administration and one on governance/investments. Why do I need training? The regulations will instruct you to be trained and be knowledgeable of your scheme within 6 months of becoming a rep - the union will support you throughout the process. Will I get time off? Yes, your pension fund will pay your employer for your time off and your expenses. What will my role be? You will represent scheme members and pensioners and advise and assist your pension fund to make decisions that ensure pensioners are paid, administration and investments are efficient and effective. How are reps chosen? Your UNISON region will ensure you are nominated, and then you will either be elected or appointed to your fund board. In order to be nominated you must have undertaken union training. How will I be supported UNISON? - There is an officer and lead rep in every region and a national officer to provide support. You will also get access to a UNISON website full of materials and discussions with board members from the UK. How long will I be a board member? Each term will be no longer than five years. UNISON Protect Our Pensions LGPS campaign 30 2

3 Having pension scheme members on fund boards is one of the most effective ways of making sure the scheme is well run and that your interests come first. The union has committed itself to a campaign to ensure UNISON members and activists at a branch and regional level can take up the seats and ensure that the 2014 LGPS serves the interests of the scheme members. What is involved? A member nominated representative (MNR) will keep an eye on the financial strength and health of employers who pay into the pension fund. A MNR would act: 1. In line with the LGPS rules and regulations 2. in the best interests of the scheme members 3. Impartially 4. Prudently, responsibly and honestly. A pension scheme has long-term pension liabilities to pay out. To be able to meet those pensions when they are due to be paid, boards will normally need to manage the scheme s existing investments and invest any new contributions they receive. You will not be making the investments but your job will be to ask questions of the people you employ to carry this out. Training and time off Anyone who takes on this role will get full training from UNISON and the pension board. You will also have access to UNISON s support site for MNRs (capitalstewards.org) which has a document library, films, blogs and news together with a chance to talk to other MNR s. At the start you don t need to know anything, as you will be helped to gain relevant knowledge and understanding so you can begin to make a difference. You will be given time off to take on this role. Get involved Being an MNR is an important and rewarding role, there already UNISON members doing it. You are responsible for something that matters hugely to members whose interests you represent - the security of their pension at a cost they can afford. This is a challenging and fulfilling role and we need to ensure that UNISON members are out there getting involved. UNISON Protect Our Pensions LGPS campaign 30 3

4 Contact your regional lead officer for further information: Eastern: Ann Glover East Midlands: Richard Parker Greater London: Linda Perks Northern: Charlie Syme Northern Ireland: Brian Ferguson North West: Michael Booth Scotland: Dave Watson South East: Tony Jones South West: Helen Willis West Midlands: Tony Rabaiotti Yorks and Humberside: Chris Jenkinson National Officer: Colin Meech 3. LGPS Shadow Board Update The national LGPS Shadow Scheme Advisory Board (SSAB) seeks to encourage best practice, increase transparency and coordinate technical and standards issues. UNISON has two representatives: Chris Tansley, former UNISON President and Jon Richards, National Secretary. In recent months the board has worked with the government and LGPS funds to implement the new LGPS regulations; responded to government consultations on draft governance regulations and cost saving; and produced a paper on valuations in the LGPS, with a summary of fund valuation results. The board has five subcommittees where much of the detailed work takes place: Administration & Communications sub-committee is looking at possible reforms to the ill health retirement process, such as: reducing the number of ill health retirement tiers, re-assessing the reviews process, and considering the role of employers in the decision making process Cost management sub-committee has been trying to understand and aggregate the 2013 valuation results in a way which gives clear and consistent answers about the performance of the participating pension funds. It is working with GAD on the dry run for the cost management process, which has highlighted differences in commutation levels between the LG experience and the assumptions being used by HM Treasury for their pan-scheme process. It has also agreeing the practicalities for the cost management process with Government and publicising these across the LGPS community. Governance sub-committee. The Local Government Association (the employers organisation that leads on LGPS matters) commissioned Eversheds to prepare an initial draft of governance guidance, which is being looked at by the sub-committee and a working group. The Department for Communities and Local government (which oversees the LGPS) has indicated an initial willingness for the majority of the draft guidance to be issued as statutory guidance. A draft will be sent out for wider consultation following the publication of the governance regulations. UNISON Protect Our Pensions LGPS campaign 30 4

5 Value for Money & Collaboration subcommittee has been working with the scheme report working group to agree the indicators that would form part of the matrix for comparison of LG pension funds. The sub-committee is also looking at setting up a board collaborations event. Investment & Engagement sub-committee is looking at a Law Commission paper on fiduciary duty which was published earlier this summer and building on the discussions on fund engagement with All SSAB board and subcommittee papers and further details can be found at: UNISON Protect Our Pensions LGPS campaign 30 5