PENSION LIAISON OFFICERS’ GROUP (PLOG)

1. PENSION LIAISON OFFICERS’ GROUP (PLOG) 16 December 2009

2. Welcome / Introductions • David Broome – Head of Pensions • Martin Summers – Pensions Manager • Andy Cunningham – Employer Relationship Manager

3. Agenda Welcome/attendance 2. Administration strategy 3. Discretions policy 4. Starter packs 5. Casuals and variable hours staff 6. LEAN review The future of the LGPS & pre-budget report Future PLOG meetings Any other business Dates/venue of forthcoming meetings

4. 2. Administration Strategy • Initial consultation period with selected employers in October • and November concluded successfully with only minor changes • made as a result. • Final draft sent to all employer contacts on 4th December 2009 • Implementation date: 1st January 2010

5. 2. Administration Strategy - Key points • Applies to all employers • Targets set out in the strategy will be used as a basis for: • Employer/Fund performance analysis and identifying areas for improvements (sent every 3 months for ‘large’ employers – next due in early January) • Indicating when we should be chasing responses to queries and missing data (i.e. once turnaround time has passed) • Giving clarity to the minimum turnaround and accuracy requirements for the Fund to perform effectively and provide a good customer service.

6. 2. Administration Strategy - expectations • Average employer performance to improve in all high volume • areas (particularly retirements) towards target area • Less queries raised by members and the Fund • Less erroneous data on our system

7. 3. Discretions Policy Reminder: If you have yet to complete a discretions policy please do so ASAP. Further information and templates can be found under the employer guide section of our website. Following the Oct 2009 technical update, in the absence of a discretions policy we will no longer process anything covered on the policy, e.g. flexible retirements, pre-60 retirements, added years/additional pension. Note: Minimum age for pension to be paid out on redundancy grounds and early retirement will change to 55 from 50 on 1st April 2010 for all members.

8. 4. New Starter Packs • Included in the new packs: • Detailed transfer information • Linking and changing jobs within the same employer • - emphasise on the member for both • Arrangements for existing packs: • Expected date of implementation: early in New Year

9. 5. Casuals & Variable Hours Staff • Rules changed April 2008 • Casual staff: • Have no “ Mutuality of Obligation” contracts? • If there is no contract issued then not able to join the scheme • If there is a contract issued to be eligible to join the scheme the period of service must be for over 3 months duration

10. 5. Casuals & Variable Hours Staff • Variable hours staff • Do they have “ Mutuality of Obligation” contracts? • If there is no contract issued then not able to join the scheme • If there is a contract issued to be eligible to join the scheme the period of service must be for over 3 months duration

11. 5. Casuals & Variable Hours Staff • Consider whether employees fall into these categories • Have contracts been issued? • Review contracts • Legal advice

12. 5. Casuals & Variable Hours Staff • New casuals from 01/04/10 with Mutual Obligation (MO) contract of more than 3 months have automatic entry (no election required) • Existing MOs on 31 March 2010 - stay in scheme (even if not working that day) • All other casuals become “deferred” on 31 March 2010 (or the 1st day thereafter that they don’t work

13. 5. Casuals & Variable Hours Staff • Writing to employers re our records that show “casual” status • Are they still casuals? • If membership of the scheme you will need to collect data on “hours” worked/paid (not overtime), and amount paid, to be sent to WPF at each year end, on termination of contract and on retirement

14. LEAN review (1) • Now drawing to a close • Completed or very close: • Starters • Leavers • Changes • Retirements • Deferred into pay • Linking of records • Transfers (although will not be implemented until New Year)

15. LEAN review (2) • Still being worked on: • Death (in service, deferred or pensioner) • Starter Pack will be reissued in New Year • Full review of whole of LEAN by Pensions Section this morning • Would welcome your views • Will be looking to improve some less customer facing procedures in 2010 (eg. new admin system, AVCs, etc)

16. Future of LGPS • Consultation on future of Scheme cancelled by Govt in the Autumn! • Cost-sharing apparently to be introduced in 2011/12, but details very sketchy! • Widespread recognition that the Scheme needs reviewing, but the small matter of the election is getting in the way!

17. Pre-budget report 2009 • “High Income Excess Relief Charge” – restriction of tax relief for those earning over £150k p.a. • Extension of Anti-Forestalling from 9 December 2009 • Changed tax arrangements on refunds - conts <2 years • Auto-enrolment – “slower introduction” • Public Sector pensions: • “Higher pension contributions for higher paid” • “Cap and Share reforms” • Is it a policy change or just loose wording?

18. 10. Date of next meeting 2:30pm, Wednesday 24th March 2010 at Devizes Town Hall