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LGPS Regulatory Update

LGPS Regulatory Update. Kate Escudier Employer Liaison Officer. Overview. May 2018 amendment regulations February 2019 amendment regulations Recent consultations Scheme Advisory Board priorities. Members. May 2018 amendment regulations Deferred Members Benefits from 55 years

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LGPS Regulatory Update

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  1. LGPS Regulatory Update Kate Escudier Employer Liaison Officer

  2. Overview • May 2018 amendment regulations • February 2019 amendment regulations • Recent consultations • Scheme Advisory Board priorities

  3. Members • May 2018 amendment regulations • Deferred Members • Benefits from 55 years • No longer need employer consent • Survivor Benefits • Same sex marriage • Civil Partnerships

  4. Members • February 2019 amendment regulations • Active members underpin • Important protection • Extended to members with other public sector schemes • Effective from 1 April 2014

  5. Employers Then McCloud came along! • McCloud ruling: transitional protections moving from final salary to CARE – age discriminatory • Protection widened out to everyone • Implications • Potential back date to April 2019

  6. Employers • Cost Cap process proposals • Removal of Tier 3 ill Health • A minimum lump sum death in service benefit • Enhanced early retirement factors • Lower employee contributions for those with salaries on the lower contribution band scale • Currently postponed: McCloud case

  7. Employers • Employer Exit credits • Assets v. liabilities • Potential for deficit or surplus • Credits to admitted body • Risk sharing agreements • Cessation date after 14 May 2018

  8. Recent Consultations Exit payment cap details • Exit payment cap £95k members • Pension strain costs taken into account • Includes redundancy and pension top-up payments • Consultation out now • Closes 3rd July

  9. Recent Consultations Fair Deal Consultation • Impact on letting authorities & contractors • Protection for compulsory transferred members • Replacing Best Value Authorities Staff Transfers (Pensions) Direction 2007 • Consultation closed 4 April

  10. Employers • Future Valuations • Currently every 3 years • Lord Hutton review • In line with other public sector valuations • Interim valuations

  11. Scheme Advisory Board Priorities • Good Governance Project: how to insulate funds from the administration – conflict of interest • Responsible Investment – environmental awareness • Simplication of the LGPS – making pensionable pay simple • Academies and Tier 3 employers

  12. Any questions?

  13. Consultations and further reading • McCloud Appeal: https://www.lgpsboard.org/index.php/structure-reform/cost-management/ccmcloud • Fair Deal: https://www.gov.uk/government/consultations/local-government-pension-scheme-fair-deal-strengthening-pension-protection • Exit Cap: https://www.gov.uk/government/consultations/restricting-exit-payments-in-the-public-sector

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