LGPS joins Tell Us Once

Inscribe Inside this issue LGPS joins Tell us Once 1 New Early Retirement 2 Factors Retirement Age 3 Reminders 2016 Year-end 4 Timetable reminder New National LGPS 5 Website Increase in APC Limit 5 Auto-enrolment 6 Registration Information Proposed 95k Cap- 6 request for estimates Completion of 2016 forms 7 Communication Resources 9 The bulletin for employers within the Royal County of Berkshire Pension Fund Summer 2016 Welcome Welcome to Inscribe the quarterly newsletter for employers within the Royal County of Berkshire Pension Fund. Each edition of Inscribe will contain the latest news and updates surrounding the Local Government Pension Scheme. LGPS joins Tell Us Once In our Spring edition of Inscribe we reported the launch of the National Insurance Database which is hosted by South Yorkshire Pension Fund. An extract from this database is securely shared with the Tell us Once service. What is Tell Us Once? Tell Us Once is a service that lets an individual reporting a death inform many Government organisations in one go. At a stressful time, it saves the individual from having to contact a number of different organisations, and for the organisations themselves, means they get informed of the death quickly, from a central location, and officially, meaning separate verification is not needed. Tell Us Once involves the completion of a simple form. It is typically used at the point an individual registers a death with a local authority registrar. The registrar will either complete the form with the individual, or provide the person with instructions as to how to complete the form over the phone to dedicated Telephony Agents, or via the web. Not all local authority registrars offer the Tell Us Once service, but well over 90% do and the number is increasing. Tell Us Once is now used in over 70% of deaths that occur in the UK. Outsourcing 11 PLSA Employer Guides 11 Contact us 12 Local Government Pension Scheme

What does the extension to public service pension schemes involve? Tell Us Once now includes a question asking if the deceased member had a period of public service pension scheme membership and, if so, in which scheme. Where the individual using Tell Us Once says Yes to that question, DWP will supply the relevant scheme with the following information: Information about the deceased: Name Address Date of birth Date of death National Insurance number Information about the next of kin/ executor: Name Address Telephone number Relationship to the deceased Importantly, when this information is provided to a public service pension scheme via Tell Us Once, it counts as a formal notification of the death. For the LGPS, this means that sight of the individual s death certificate is not needed. How does it work in the LGPS? As the LGPS is administered locally, the service needs some way of knowing where an individual has their LGPS pension record. For Tell Us Once, this is achieved through the LGPS Database. The LGPS Database is administered by the South Yorkshire Pensions Authority (SYPA). Each month, SYPA send DWP an updated membership extract including the membership of those funds who have confirmed that they are fully set up for Tell Us Once. When an individual uses Tell Us Once and confirms that the deceased had a period of LGPS membership, a real time search is undertaken using the LGPS Database membership extract provided by SYPA. Whilst the person is still completing the form, they will get a message confirming if a successful match has been found. If no match is found, the person using Tell Us Once will be told that this doesn t necessarily mean the person didn t have a pension in the LGPS, but that they should contact the pension fund directly to inform them of the death. Where a match is found, the LGPS fund will receive a formal notification of the death including the next of kin/ executor details. 2

New Early Retirement Factors Under the LGPS regulations a member s Normal Retirement Age (NPA) is equal to their State Pension Age (with a minimum age of 65). The earliest retirement age within the LGPS for active members is 55. If a member retires and wishes to claim their pension before their NPA an early retirement reduction percentage is applied to their pension benefits to reflect the early payment of their pension. The early retirement factors are provided to us by the Government Actuarys Department (GAD). GAD have recently issued new factors from 29 April 2016. The new percentage reductions are displayed in the table below: Benefit Reduction Table for Early Retirement Number of Years Early Pension Reduction Pension Reduction Lump Sum Reduction Males Females 0 0% 0% 0% 1 5.6% 5.20% 2.9% 2 10.8% 10.1% 5.7% 3 15.5% 14.6% 8.5% 4 20% 18.8% 11.2% 5 24% 22.7% 13.7% 6 27.8% 26.4% 16.3% 7 31.4% 29.8% 18.7% 8 34.7% 29.8% 18.7% 9 37.7% 36.1% 23.4% 10 40.6% 38.9% 25.6% 11 44.2% 42.2% N/A 12 47.6% 45.5% N/A 13 50.9% 48.6% N/A What about the 85-year rule? If a member retires of their own accord and claims their pension before the age of 60 any 85-year rule protection that they may have is not automatically applied to their pension benefits. Therefore the early retirement reductions would be applied in full. However you, as the employer, can exercise a discretion to switch the 85-year rule on for members drawing their benefits before age 60. However this may result in a cost implication for the employer, therefore please refer to your discretionary policy statement in these cases. If members are claiming their pension benefits from age 60 onwards any 85-year rule protection they have is applied to their pension benefits. 3

Retirement Age Reminders... For ease of reference we have detailed below pension ages associated with difference types of retirement from the LGPS. Earliest Retirement Age - The earliest retirement age within the LGPS for active members is 55. We require three months written notice from the member if they wish to release their pension benefits before age 60. Normal Retirement Age - Under the LGPS regulations a member s Normal Retirement Age (NPA) is equal to their State Pension Age (with a minimum age of 65). Redundancy Retirement Age - Under current regulations if a member is made redundant, are over 55 and have at least 2 years LGPS membership they are entitled to the immediate payment of their Berkshire Pension without penalty. The pension is calculated up to their date of leaving and is paid with immediate effect for the rest of their life at an unreduced rate. Ill-health Retirement Age - A member can request that their employer investigate retirement on the grounds of ill-health at any age. However the member must have at least two years of LGPS membership. 2016 Year-end timetable reminder... As you are aware we are processing the year-end returns for 2015/2016. A reminder of the year-end timetable is below: Berkshire Pension Fund Year-end Timetable 2016 End of Scheme Year 31 March 2016 All year-end files to be received by the Pension Fund 30 April 2016 Pension Fund to process year-end files During 1 April to 15 June 2016 Scheme employers to respond to year-end queries within two weeks During 1 April to 31 July 2016 Pension Fund to provide Valuation data to Actuary and extract LGPS member data to send to printers During 1 August to 15 August 2016 Annual Benefit Statements available to LGPS members in line with statutory obligation 31 August 2016 If you have any queries regarding your year-end return please contact Philip Boyton on 01628 796752 or e-mail philip.boyton@rbwm.gov.uk 4

New National LGPS Website A new-look national LGPS website was launched from April 2016. The new-look site contains the APC online calculator, Pension Contribution calculator and contact details of all LGPS Funds in England and Wales. The new website link is: www.lgpsmember.org Increase in APC Limit Under the LGPS regulations members can elect to Purchase additional annual pension through the payment of Additional Pension Contributions (APCs). The maximum amount of additional pension that can be purchased under the LGPS can change each April to reflect the rise in cost of living. From 1 April 2016 the maximum amount of additional annual pension which can be purchased in total is 6,755.00. To calculate the cost of buying additional annual pension members can complete an online calculator to provide a quotation: https://lgpsmember.org/more/apc/extra.php APC limit 6755 4 5

Auto-Enrolment Registration information If you are approaching your Staging Date under Auto Enrolment and you are registering with the Pensions Regulator you may be asked for a series of reference numbers associated with the Royal County of Berkshire Pension Fund. We have provided these details below which you may find useful: Pension Scheme Registry Number 10027839 Employer Pension Scheme Reference Number This is a 5 digit number displayed on correspondence you receive from the Pensions Regulator. Scheme Contracted Out Reference Number (SCON) Employer Contracted Out Reference Number (ECON) Pension Scheme Tax Reference Number (PSTR) S2700137M E3900002R 00330385RV For more information about your employer responsibilities surrounding auto-enrolment please visit the Pensions Regulator website: http://www.thepensionsregulator.gov.uk/en/employers Proposed 95K cap on Redundancy and exit payments - requests for estimates You will be aware of the proposals to introduce a cap of 95,000 to the total cost of exit payments to public sector workers. One of the main impacts on administering authorities and local authorities is that the cap will cover pension strain payments on the grounds of redundancy. At present we do not know the date from which these new proposals will be introduced but it will not be any earlier than 1 October 2016. If you have requested a redundancy estimate to be calculated for one of your scheme members the information provided to you is based on current regulations and until the new rules come in regarding the cap we will continue to calculate estimate requests under current regulations. However employers will need to be wary that if they are asking for estimates calculated with a last day of service after 30 September 2016 the rules may change so when discussing options with individuals you may need to consider this. We will also keep you updated as soon as we hear any more on this issue. 6

Completion of new-look forms In our Spring edition of Inscribe we advised you that our standard forms had been updated for 2016/2017. As a reminder I have included a directory of standard forms which should be used by employers. The forms can be found in the Employers Section of our website: Reminder We no longer require completion of Form LGS15B for changes of hours and weeks that have occurred since 1 April 2014. http://www3.rbwm.gov.uk/bpf/info/2/employers/48/standard_forms Form Title Reason for Use LGS1B Brief Guide to the Berkshire Pension Fund Include with new contracts of employment issued from 1 April 2016 LGS10 Application to opt-in to the LGPS Employees wishing to opt-in to the LGPS LGS10B Application for re-entry to the MAIN Section from the 50/50 Section LGS5050 Application to opt-in to the 50/50 Section LGS15A(5050) LGS15A LGS15C LGS15D Estimates EST3 EST4 Notification of Entry to the 50/50 Section of the LGPS Admission to the Scheme Withdrawal from the Scheme Opt-out Notification Request for an Estimate of Pension Benefits for an active Member Request for an Estimate of Pension Benefits for a Former Member Ill-Heath Retirement Certificates Employees wishing to opt back in to the MAIN Section from the 50/50 Section. Factsheet and application form for members wishing to opt-in to the 50/50 Section of the LGPS Formal notification to Berkshire Pension Fund advising of a member opting in to the 50/50 Section. Formal notification to Berkshire Pension Fund advising of a member joining the LGPS Formal notification to Berkshire Pension Fund advising of a member opting-out, leaving or retiring from the LGPS Formal notification to the Berkshire Pension Fund of a member who has opted-out of the LGPS with no further entitlement to a pension. Please complete this form if the member has received a refund through payroll. Please complete this form to request an estimate of pension benefits for an active member. Employer estimate requests will be generated within 5 working of your request. Please complete this form to request an estimate of pension benefits for a former member. Employer estimate requests will be generated within 5 working of your request. LGS26 Occupational Health Ill Health Retirement Certification for a Current Employee Health practitioner when assessing an active member of the LGPS for release of pension on illhealth grounds 7

Form Title Reason for Use LGS26B LGS26C LGS26D LGS26E LGS26F LGS26G Occupational Health Ill health Retirement Certification for a Deferred Beneficiary who ceased membership as an employee on or after 1 April 2008 and before 1 April 2014 Occupational Health Ill health Retirement Certification for a Deferred Beneficiary who ceased membership as an employee on or after 1 April 1998 and before 1 April 2008 Occupational Health Ill health Retirement Certification for a Deferred Beneficiary who ceased membership as an employee before 1 April 1998 3 rd Tier Ill Health Retirement Review Certificate for a 3 rd Tier Pensioner Review Taking Place Within 3 Years of Date of Cessation of Employment (and before Normal Retirement Age) 3 rd Tier Ill Health Retirement Review Certificate for a Suspended 3 rd Tier Pensioner Where the cessation of employment occurred after 31 March 2014 England and Wales - Review taking place 3 or more years after the date of cessation of the 3 rd tier pension (and before Normal Pension Age) Occupational Health Ill health Retirement Certification for a Deferred Beneficiary who ceased membership as an employee on or after 1 April 2014 Health practitioner when assessing a Deferred Beneficiary who ceased membership as an employee on or after 1 April 2008 and before 1 April 2014 Health practitioner when assessing a Deferred Beneficiary who ceased membership as an employee on or after 1 April 1998 and before 1 April 2008. Health practitioner when assessing a Deferred Beneficiary who ceased membership as an employee before 1 April 1998 Health practitioner when assessing a 3 rd Tier Ill Health Retirement Review Certificate for a 3 rd Tier Pensioner Review Taking Place Within 3 Years of Date of Cessation of Employment (and before Normal Pension Age) Health practitioner when assessing a 3 rd Tier Ill Health Retirement Review Certificate for a Suspended 3 rd Tier Pensioner Where the cessation of employment occurred after 31 March 2014 England and Wales - Review taking place 3 or more years after the date of cessation of the 3 rd tier pension (and before Normal Pension Age) Health practitioner when assessing a Deferred Beneficiary who ceased membership as an employee on or after 1 April 2014 LGS44 Leave of Absence SCAPC 1 SCAPC 2 SCAPC 3 Early Retirement Costs Action to be taken by Employer Specimen Letters SCAPC Factsheet for members A factsheet for employers providing further information surrounding early retirement capital costs. Step by step instructions for employers regarding the process for buying back lost pension. Template letters for employers to use when writing to their members about their leave of absence options Factsheet to be enclosed with the SCAPC letter when writing to the Employee. All the above forms can be found in the Employer Forms section of our website: http://www3.rbwm.gov.uk/bpf/info/2/employers/48/standard_forms

Communication Resources A new section of our website has been created containing communication resources for employers within the Berkshire Pension Fund. Within this section you will find documents designed to assist employers in advertising the LGPS to their staff. Employers within the Berkshire Pension Fund are free to download the guides and publications contained within this section for their own use. LGPS Resources Guides A brief guide to the LGPS Increasing your LGPS Pension 50/50 Section Factsheet Protection for your family The New State Pension and National Insurance changes factsheet Posters These posters have been created to advertise the LGPS for employers within the Berkshire Pension Fund. The three posters highlight the benefits of being a member of the LGPS. Poster 1 - The benefits of being a member of the LGPS Poster 2 - Pension Contribution flexibility within the LGPS Poster 3 - LGPS Life Cover 9

Communication Resources contd... As a result of the new State Pension introduced from 6 April, the DWP have produced further material for employers to assist in communicating these changes to employees. The material is in the form of a series of handouts and posters. Please click on the bullet points below to view these documents. New State Pension Resources New State Pension - Myth Busting A guide to the new State Pension resource pack State Pension Changes - email communication Article about State Pension changes Poster about State Pension changes State Pension changes - Bullet Point list The above information has also been added to the Communication Resources Section of our website http://www.berkshirepensions.org.uk/bpf/info/2/employers/90/ communication_resources 10

Outsourcing If you are intending to outsource a service to an external company in the future, we request that you advise the Berkshire Pension Fund as soon as possible. This will enable us to ensure that the scheme members affected will have their pension arrangements in place without a delay. If you are intending to outsource a service please contact Kevin Taylor at the earliest opportunity on 01628 796715 or e-mail kevin.taylor@rbwm.gov.uk A note for Unitary Authorities: We would be grateful if you could communicate this request to any of your non-academy schools. PLSA Employer Guides The Pensions and Lifetime Saving Association (PLSA) attended the annual conference for local authorities in May. During this event the PLSA issued the first of a series of guides for employers participating in the LGPS - A Guide for Employers participating in the LGPS and Navigating entry into the LGPS: for local government contractors. An introduction to the LGPS for scheduled bodies http://www.plsa.co.uk/policyandresearch/ DocumentLibrary/0583-An-introductionto-the-LGPS-for-scheduled-bodies.aspx Navigating entry into the LGPS: for local government contractors http://www.plsa.co.uk/policyandresearch/ DocumentLibrary/0584-Navigating-entryinto-the-LGPS-for-local-governmentcontractors.aspx The PLSA website also enables you to add your e-mail address to their mailing list so that you receive notification of future editions of guidance for employers 11

Contact Us If you would like to discuss any items contained in this bulletin please do not hesitate to contact us on the numbers below: Kevin Taylor Deputy Pension Fund Manager 01628 796715 kevin.taylor@rbwm.gov.uk Philip Boyton Pensions Administration Manager 01628 796752 philip.boyton@rbwm.gov.uk Sandra Rice Deputy Pensions Manager 01628 796743 sandra.rice@rbwm.gov.uk Joanne Brazier Assistant Pensions Manager 01628 796754 joanne.brazier@rbwm.gov.uk Steve Lyon Technical Analyst 01628 796793 steve.lyon@rbwm.gov.uk Royal County of Berkshire Pension Fund Minster Court, 22-30 York Road, Maidenhead, Berkshire, SL6 1SF Helpdesk: 0845 602 7237 (lines are open Monday to Thursday 8:30am to 5:00pm and Friday 8:30am to 4:30pm) Email: info@berkshirepensions.org.uk www.berkshirepensions.org.uk 12