1 / 16

Employers Pension Forum 13 June 2012

Employers Pension Forum 13 June 2012. Local Government Pension Scheme. Proposals for LGPS 2014. A Career Average Revalued Earnings (CARE) scheme using CPI as the revaluation factor The accrual rate will be 1/49 th

bryce
Download Presentation

Employers Pension Forum 13 June 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Employers Pension Forum 13 June 2012 Local Government Pension Scheme

  2. Proposals for LGPS 2014 • A Career Average Revalued Earnings (CARE) scheme using CPI as the revaluation factor • The accrual rate will be 1/49th • There will be no normal scheme pension age, instead each member’s Normal Pension Age (NPA) will be their State Pension Age • Average member contributions to the scheme will be 6.5% with the rate determined on actual pay Local Government Pension Scheme

  3. Proposals for LGPS 2014 • Members can elect to pay half contributions for half the pension, while still retaining the full value of other benefits. This is known as the 50/50 option • For current scheme members, benefits for service prior to 1st April 2014 will be protected, including remaining ‘Rule of 85’ protection. Protected past service will continue to be based on final salary and current NPA • Where scheme members are outsourced they will be able to stay in the scheme on first and subsequent transfers Local Government Pension Scheme

  4. Proposals for LGPS 2014 Local Government Pension Scheme

  5. Proposals for LGPS 2014 Local Government Pension Scheme

  6. Proposals for LGPS 2014 Local Government Pension Scheme

  7. Proposals for LGPS 2014 Local Government Pension Scheme

  8. Proposed Contribution Bands and Rates For April 2014 determined on actual pay Local Government Pension Scheme

  9. Protections • All membership before 1st April 2014 will be calculated on the basis of final pay on leaving and current NPA • If a member currently qualifies for ‘Rule of 85’ protection this will continue • Underpin – protection for members who were within 10 years of age 65 in April 2012. For these members a calculation will be calculated under both LGPS 2008 and LGPS 2014 scheme rules and the better will be awarded • Fair Deal -members compulsorily transferred out of LGPS employment will be able to stay in the LGPS Local Government Pension Scheme

  10. What Happens Next? • Work continues on future cost management and scheme governance • Unions will consult with their members and will then proceed to a member ballot • LGA will consult with employers • If agreed draft regulations will be issued in late Autumn for consultation • New scheme regulations effective from 1st April 2014 will be in place from April 2013 so that actuarial assumptions for the 2013 valuation can be based on the new scheme rules • Further information www.lgps.org.uk Local Government Pension Scheme

  11. Year end update Local Government Pension Scheme

  12. LGPS 2010/11 Year End Returns Local Government Pension Scheme

  13. LGPS 2011/12 Year End Returns Local Government Pension Scheme

  14. LGPS 2010/11 Contributions Posted Local Government Pension Scheme

  15. LGPS 2011/12 Contributions Posted Local Government Pension Scheme

  16. LGPS Year End Comparison Local Government Pension Scheme

More Related