Posted by Chris A Brown at 26/03/2021 15:41:39
A vacancy has arisen for a member representative on East Riding Pension Fund’s Local Pension Board. For more information and to apply for this role, please view the advert below.
Local Pension Board Advertisement (pdf 585kb)
Posted by Chris A Brown at 23/03/2021 14:21:27
Prudential are aware that their current AVC service performance is not meeting expectations and have confirmed that this is causing delays to their telephony response times, and the investment of scheme member contributions and paying out claims.
Whilst Prudential are working hard to resolve the delays and apologise for the inconvenience caused, when AVC claims are not paid in a timely manner, this can directly affect the payment of Local Government Pension Scheme benefits to our members with an AVC fund.
How does this affect my contributions?
Prudential have confirmed that any delay in the processing of contributions will not affect your money. Contributions will be backdated to the original date that they were received by them.
The delays may mean that you won’t be able to see an up to date figure when you log in to your Prudential online account. This will be resolved when your contributions are processed.
Your contributions have not been lost and will be processed as quickly as possible by Prudential.
How does this affect making a claim?
Prudential have had delays in issuing claims but have provided reassurance claims will be paid and there is no problem with their ability to pay.
However, the delays do mean that you may have to wait longer for your retirement or transfer claim to be completed, and this may also directly affect the payment of your Local Government Pension Scheme benefits from East Riding Pension Fund.
Telephony response times
Unfortunately, Prudential have also reported delays with their telephony response times and there have been longer than normal wait times for scheme members to speak to them.
You can find more information from Prudential, including a customer service update, at www.pru.co.uk
and details of alternative methods for contacting Prudential can be found at www.pru.co.uk/contact-us
Posted by Chris A Brown at 15/03/2021 11:03:11
On 12 February 2021, HM Treasury [HMT] published the Exit Payment Cap Directions 2021 [the Directions]. The Directions disapplied regulations 3, 9 and 12 of the Restriction of Public Sector Exit Payment Regulations 2020 [the 2020 Regulations] with immediate effect. This meant that the exit cap does not apply to exits that take place on or after 12 February 2021. HMT has provided further information in the Restriction of Public Sector Exit Payments: Guidance on the 2020 Regulations [the Guidance]. HMT confirmed in the Guidance that:
“the Government has concluded that the Cap may have had unintended consequences and the Regulations should be revoked. HMT Directions have been published that disapply the Cap until the Regulations have been revoked.”
On 25 February 2021, the Restriction of Public Sector Exit Payments (Revocation) Regulations 2021 were made and laid before parliament. They will come into force on 19 March 2021.
For further information please see the update on the public sector exit payments page of the SAB website.
Posted by Chris A Brown at 21/12/2020 11:47:08
The Government has introduced a cap on the amount of money a public sector employer can pay when an employee leaves their employment. It is called the public sector exit cap, or £95k cap. It applies to employees leaving public sector employments from 4 November 2020.
This may affect some members of the LGPS who retire on grounds of redundancy or business efficiency over the age of 55. Where the LGPS regulations allow for unreduced benefits to be paid to members in these events, this is now subject to this exit cap.
Employers have to pay strain costs to the scheme to allow for unreduced benefits, and this payment will be included when calculating the £95k cap.
For further information on what you need to consider as an employer for any members that leave over the age of 55 due to redundancy or business efficiency, please download the document below:
LGA - Exit cap information for LGPS employers (pdf 187kb)