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Pension – Auto Enrolment

This section does not apply to Academies.

On 1 October 2017 HCC will be automatically enrolling all employees who have not previously been opted into a workplace pension scheme since 1 January 2013.

On our initial automatic enrolment staging date of 1 January 2013, HCC took transitional protection. This meant only certain groups of employees were automatically enrolled at that time.

HCC now has a legal obligation to automatically enrol anyone who has not been opted into a workplace pension scheme since 1 January 2013.

Under the auto enrolment regulations, all employers are expected to place eligible staff members into a relevant pension scheme, even if that staff member has previously decided not to join the pension scheme.

Eligible employees are those who:

  • Are not already in a pension at work
  • Are aged 22 or over
  • Are under State Pension age
  • Earn more than £10,000.00 a year (£833.33 per month)*
    * The Government review this figure in their annual budget.
  • From 1 October 2017, the following employees will be automatically enrolled:

  • Employees who joined HCC before 1 January 2013 and have opted out of a pension scheme; earn above the £10,000 p.a. threshold and are between the age of 22 and state pension age on the 1 October 2017

N.B - Employees who currently earn below the pension scheme threshold, [£10,000 per annum], but whose pay subsequently surpasses £10,000 (or £833 per month) for the first time will be enrolled in the month that occurs.

This change applies to the Local Government Pension Scheme and Teachers Pension Scheme.

More information can be found on the Intranet, or visit :

 

Teachers Pensions – Boosting your Pension through Pension Flexibilities

Teachers Pensions have designed a new dedicated webpage with all of their flexibilities information in one place. The webpage shows how members can increase their pension savings by taking up Faster Accrual or Additional Pension. It also includes a flexibilities calculator to help you plan.

To make the most of these options, you need to be aware that:

  • Faster Accrual elections are taken annually, the deadline for 2017 is 31 March (unless you started employment during the Scheme year)
  • Additional Pension can be taken up at any time during the year
  • All flexibilities can be elected through ’My Pension Online’

Teachers’ Pension Scheme – Member Newsletter

Teachers’ Pensions have produced a new member newsletter to keep you up to date with the latest news and changes happening at Teachers' Pensions, as well as important information about planning for your retirement, going digital and ways to boost your pensions. The newsletter can be viewed or downloaded from the following link:

My Pension Online

My Pension Online is a member self-service website which makes managing your pension much easier and ensures Teachers’ Pensions can contact you directly with updates, important information and changes.

Once registered, you can check your pension at any time and it is now the only place where you can view your Annual Benefit Statement.

Once you’re registered you can:

  • Update your details anytime online
  • View your Annual Benefit Statement
  • Nominate beneficiaries
  • Complete important forms and documents
  • Use online calculators to explore your benefits
  • Find out more about the other benefits available to you

All you need to register is:

a) Your Teachers’ Pensions reference number (also known as your DfE number)
b) Your National Insurance number
c) Your email address - we recommend a personal email address

Register for My Pension Online at:

 

The new State Pension and National Insurance Changes

From 6 April 2016 a new ‘single-tier’ State Pension will be introduced. This will replace the existing Basic State Pension and Additional State Pension.

Under existing pension scheme arrangements, members of the Teachers’ Pension Scheme & Local Government Pension Scheme (LGPS) are contracted-out of the Additional State Pension and in return pay lower National Insurance contributions. The changes mean that from 6 April 2016, the Schemes will no longer be contracted-out of the Additional State Pension and both employer and member National Insurance contributions will increase as a result of this.

These changes will not affect a member’s accrued benefits, or the benefits they build up in the Scheme in future.

Further information about the new State Pension, including changes to National Insurance arrangements for members of schemes like the Teachers’ Pension Scheme, can be found below.

Teachers Pensions will be communicating directly to members, to inform them that the Scheme will no longer be contracted out and how members can find out more information on the state pension and changes to National Insurance Contributions.

 

The Teachers’ Pension Scheme is changing from 1 April 2015

From April 2015, the Teachers’ Pension scheme arrangements will be changing.

How you will be affected will depend on your current age and how long you have before you reach your normal pension age (NPA). Some members will not be affected by the change, whilst others will start to have their benefits calculated in a way that will see the introduction of both career average as well as final salary arrangements.

The TPS have created a dedicated website with information about the changes.  This includes a number of factsheets to you understand whether you will be a ‘protected’, ‘tapered’ or ‘transition’ member and what that means to you.

These factsheets, along with a series of case studies, some FAQ’s, details of the key changes and a ‘Changes 2015’ video can be found on the Teachers’ Pension website:

Protected members

If you were an active member of the Teachers’ Pension scheme immediately before 1 April 2012 and were within 10 years of their normal pension age (NPA) on that date you will be a protected member and will remain in a final salary arrangement. All of your benefits will be based on the current final salary arrangements.

Tapered members

If you were an active member of the Teachers’ Pension scheme immediately before 1 April 2012 and were within 10 and 13.5 years of your NPA on that date, you  will be a tapered member and will remain in final salary for a tapered period of time until you then move into career average on your ‘transition date’. 

Final salary benefits will remain within the final salary scheme arrangements and provided you don’t leave the Teachers’ Pensions Scheme for more than 5 years, you’ll retain your tapered protection until your transition date and there’ll be a link between the salaries you earn in career average and your final salary benefits.

Below is a table showing the transition dates that will apply.

Transition members

All other existing members who are more than 13.5 years away from their NPA will enter career average on 1 April 2015, and will be known as transition members.

From 1 April 2015 you will build up benefits in the career average but your final salary benefits will remain within the final salary scheme arrangements and provided you don’t leave the Teachers’ Pensions Scheme for more than 5 years, you’ll retain your tapered protection until your transition date and there’ll be a link between the salaries you earn in career average and your final salary benefits.
 
New starters who join on or after 1 April 2015 will join the career average scheme.
Pensioner and deferred members are not affected by the changes unless they take up further employment.

 

The LGPS is Changing from 1 April 2014

If you are paying into the Local Government Pension Scheme (LGPS), you’ll automatically be in the new scheme from 1 April 2014. If you retire or leave before then, there’s no change to your pension.

There’s increased flexibility around when you can leave and take your pension.

From April 2014 you can choose to leave and draw your pension anytime from age 55 – but the longer you work the more your pension will be. Your pension will be reduced if you choose to retire before your normal pension age and increased if you retire later.

Normal pension age for your new scheme pension won’t be fixed at 65 as in the current scheme, it will be the same as your state pension age – with 65 as the earliest age.

As your state pension age increases, so will your LGPS pension age. To find out your state pension age – have a look at

Your pension builds up in a new way from April. For each year in the new scheme you build up a pension based on your pay in that year.

Every year you get a pension that’s equal to a 49th of your pay added into your pension account plus Inflation increases, so your pension account keeps up with the cost of living.

And it won’t cost more for most people. Whilst the average cost for employees will still be 6.5% of pay, from April 2014 the highest paid will pay more. If you are part time it could cost you less - your contribution rate will be based on your part time pay instead of, as now, the full time equivalent pay.

If you’re worried you can’t afford it – think again. If you pay tax you get tax relief on your contributions.

And the new scheme gives you more flexibility – it has a new 50/50 option.  For times when things are difficult, you can choose to pay half contributions and, during that time, add half pension into your account. But you still keep the full value of your life and ill health cover.

A pension isn’t only about your future.

As a member of the LGPS you still get valuable life cover, with a lump sum of 3 years pay if you die in service, cover for your family, with pensions for your dependents if you die, and ill health cover for you.  

And you can still pay more to buy extra pension.  

It’s important you know that all of your benefits built up in the scheme to 31 March 2014 are protected. They will still be based on your final salary on leaving and the normal pension age in the current scheme.

More information :