The Future Influencers celebrated its one year anniversary with an event in one of @Waterloo’s Alice in Wonderland inspired rooms. Although the Mad Hatter was unavailable, luckily, we had the next best thing, with Angela taking the role of chairperson. In true future influencers tradition the meeting was attended by a mix of familiar faces from prior events and several new attendees brought along by colleagues to join the discussion for the first time. As one of the first time attenders myself I can attest to the welcoming nature of the group and I look forward to coming along to many more in future. Read more »
Archive for January 2015
Local Government Pension Scheme (‘LGPS’) – Technical consultation on Local Government Pension Scheme Rules – December 2014
The evolution of LGPS over the last number of years has created significant inconsistencies and unfairness particularly in the treatment of admitted bodies. This is highly problematic for participants as well as building up significant difficulties for the LGPS themselves. It has also resulted in LGPS looking unresponsive to the issues that their admitted bodies face.
The consultation specifically requests “suggestions on how to better protect local tax-payers where there is a risk they will have to foot the bill for employers who leave the scheme.” LGPS need to recognise that the current approach is unfair, impractical and ultimately unsustainable. LGPS would appear to prefer to continue to pursue excessively prudent cessation settlements which are rarely if ever paid, as they are unaffordable, while organisations continue to accrue further liabilities which will remain unsettled until a point where an organisation ceases to operate and the burden is left with the tax-payer. Surely to protect the tax-payer it would be much more sustainable to find a way to prevent additional unaffordable liabilities accruing and adopt a more pragmatic methodology in calculating and obtaining any cessation liabilities due.
In this response I will therefore look to identify a number of the key issues faced and offer some proposals how the LGPS could adapt for the good of participants and themselves. Read more »
Spence & Partners latest blog for Pension Funds Online –
Contracting Out on a final salary basis will end on 5th April 2016, it will have partnered pension schemes for 38 years. Its loss will be felt no doubt, but, as with any break-up, it’s preferable to leave on amicable terms.
It may seem a little odd to think of this as a break-up but April 2016 is the point at which two entities, once very much intertwined, go their separate ways so it seems like an appropriate narrative.
HMRC will leave to focus on the new Single-Tier State Pension and the scheme will be left with their GMPs and more money to find. This is the time to understand exactly what the break-up means, what decisions need to be made and how to break the news to the members.
National Insurance contributions are being increased from 6th April 2016, the new Single-Tier State Pension is being introduced and HMRC letters will be issued in December 2018. Read more »