HR Introduction to Civil Service pensions

1. HR Introduction to Civil Service pensions

2. Purpose of today’s presentation • To provide you with an overview of the Civil Service pension (CSP) arrangements • Help you in your HR pensions role when dealing with staff • To introduce you to sources of pensions guidance

3. Objectives • By the end of this presentation you will: • Understand your roles and responsibilities in delivering the CSP arrangements to staff • Know where to go for support and what guidance is available to you • Have a better understanding of the Civil Service pension arrangements

4. A few facts and figures • The Civil Service pension Scheme: - Has 1.5 million members, including • Active • Deferred, and • Pensioners - Pays out £3bn a year in pensions - Pays pensioners who now live in 130 different countries  - Has over 1000 pensioners aged over 90, and 300 aged over 100!

5. Civil Service Pensions – who is involved? Minister for the Civil Service Scheme Sponsor Payroll St Ives Printers and distributors Cabinet Office Scheme Management Board and Executive MyCSP Pension Service Centres Capita Pensioner Payroll Scheme Medical Advisor Capita Health Solutions Civil Service Employers Scheme members

6. Cabinet Office Permanent Secretary Scheme ManagementBoard SchemeManagement Executive Employers Participation Agreement Contract Scheme Members MyCSP StIves Capita Hartshead

7. Cabinet Office, SME– what does it do? Employer Support Manages the Scheme via contract with MyCSP Cabinet Office SME Complaints Policy Civil Superannuation

8. Where do I fit? Member Payroll Provider Employer Cabinet Office Scheme Management Executive MyCSP

9. Overview of main pension schemes • nuvos • premium (closed) • classic (closed) • classic plus (closed) • partnership pension account NB: some exceptions to access to classic and premium

10. Other schemes • Civil Service Compensation Scheme (CSCS) • Civil Service Additional Voluntary Contributions Scheme (CSAVCS) • The Civil Service Injury Benefit Scheme (CSIBS) • The partnership pension account death benefit scheme (PPADBS) • The partnership pension account ill health benefit scheme (PPAIHBS) • Designated stakeholder scheme

11. What does MyCSP do? • What does your MyCSP Pension Service Centre do? • Applies the rules of the pension scheme • Maintains members’ records on PenServer • Deals with applications for boosting pensions • Provides and issues pension booklets and leaflets • Processes leavers and retirements and notifies Capita to pay pensions • Issues Annual Benefit Statements • Operates a help line for member queries • Your relationship with MyCSP

12. What does your payroll do? • What does your payroll do? • Sets up deductions of contributions • Pays member contributions to Cabinet Office • Pays Accruing Superannuation Liability Charges (ASLCs) • Pays partnership contributions to providers • Sends member data via an interface to MyCSP • What is your relationship with your payroll? • Communicating changes on policy and processes • Ensuring correct pension contributions are paid • Ensuring accuracy of member data

13. Who is the pensioner payroll provider? • What do they do? • Pay lump sums, pensions and death benefits • Refund contributions to members who have less than 2 years’ service • Calculate and apply abatement for re-employed pensioners • Deal with all correspondence and enquiries relating to pensioners and deferred pensioners • Operate a call centre for pensioners

14. Who are St Ives? • Printers for Starter Packs, leaflets and booklets • Distributors for Starter Packs, leaflets and booklets • Orders for Starter Packs should be made using Despatch Request Form 2 (DRF2)

15. Who pays for a member’s pension? • Significant part of the total reward package • Member makes a contribution • Employers pay a significant amount towards members’ pensions • Based on a percentage of the members’ salary

16. Communication with members Key responsibilities • Pension Starter Packs • Provide Pension Scheme Information • Annual Benefit Statements • Office Notices

17. Your roles and responsibilities • Working patterns • Change of circumstances • Opting in and out • Switching • Member transfers • Topping up a pension • Complaints • Injury at work • Retirement • Partial retirement • Leaving before pension age • Death in Service • Re-employment

18. Changes to working patterns • Working patterns • Part-time, term-time and seasonal • Flexible and shift working • Partial retirement • Different kinds of breaks • Career breaks • Special leave, maternity, paternity, adoption leave, parental leave and time off for dependants • See factsheets on www.civilservice.gov.uk

19. Change to personal circumstances • Marriage • Divorce • Civil partnership • Gender Recognition Certificate

20. Opting in and out of the CSP arrangements For information on opting in and out: • Direct member to the information on the CSP website • Direct member to MyCSP • Opting out • Stop paying over member and employer contributions • 3 month rule • Opt in • One option to rejoin • Not treated as new entrants • MyCSP will deal with requests • Pay over contributions

21. Members wishing to switch between schemes • Can only switch between partnership and premium and partnership and nuvos • Once each way • 1 April or 1 October • Pension switch form • 3 months notice

22. Member transfers • Members who transfer between employers covered by CSP arrangements can remain in the same scheme providing: • no break in service (28 days or less) • Employers must complete: • CSP TRANS1 – to MyCSP PSC • Form E18(08) – to new employer

23. Topping up a pension • Added pension • Civil Service Additional Voluntary Contributions Scheme (CSAVCS) • Stakeholder pensions

24. What happens when a member complains? • Internal Dispute Resolution (IDR) • The Pensions Advisory Service (TPAS) • Complaints Leafleton CSP website • Pensions Ombudsman

25. When staff are injured at work • Civil Service Injury Benefit Scheme (CSIBS) • All employeesare covered • MyCSP PSC decides who qualifies

26. Staff approaching retirement • Scheme pension age • 45 years’ service • Pre-retirement course • Give My CSP PSC plenty of notice

27. What is Partial Retirement? • Gradual transition from work to retirement • Members can draw some or all of their pension (and lump sum) • Must reshape job • Earnings reduced by at least 20% • Impact on final pension and income • To be agreed by employer

28. Partial Retirement checklist • Direct member to use the calculator on the website, read “Partial retirement” booklet and complete CSP15 form • Earnings to reduce by at least 20% • Set timescales with employee • Employer must sign CSP15 and CSP16 form • Employers do not need to complete CSP 13 form

29. Staff who leave before pension age • Staff who leave before pension age: • Resignation or dismissal • Early retirement and severance including ill-health retirement • Resignation • More than 2 year’s service • Less than 2 year’s service • Dismissal

30. Staff who leave before pension age • Early retirement and early severance • Approved early retirement • Voluntary exit • Voluntary redundancy • Compulsory redundancy • Ill-health retirement

31. Death in Service • Contact MyCSP and payroll immediately • Next of kin details or personal representative • MyCSP will advise information required • Capita will pay death benefits • Family and dependent benefits may also be paid

32. Pensioners and abatement • Re-employed pensioner • Pension Questionnaire and Rejoiner Calculator • Abatement • CSP 13 (Estimate) • CSP 13

33. What support is there for me? • MyCSP Pension Service Centre • CSP websiteat www.civilservice.gov.uk

34. Further support • Employers’ Pension Guide (EPG) • Employer Pensions Notice (EPN) and Pension News • Training

35. Any Questions?