HR Introduction to Civil Service pensions

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

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

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!

Civil Service Pensions – who is involved?

St IvesPrinters anddistributors

Minister for the Civil ServiceScheme Sponsor

CapitaPensioner

Payroll

Civil ServiceEmployers

Payroll

MyCSPPension

Service Centres

Cabinet Office Scheme

Management Board and Executive

Scheme membersScheme Medical Advisor

Capita Health Solutions

Cabinet Office Permanent Secretary

Scheme Management Executive

Scheme Management Board

EmployersParticipation Agreement

MyCSP Scheme Members

St IvesCapita Hartshead

Co

ntract

Cabinet Office, SME– what does it do?

EmployerSupport Manages the

Scheme via contract with

MyCSP

PolicyComplaints

CivilSuperannuation

Cabinet OfficeSME

Where do I fit?

Employer

MyCSPCabinet Office

Scheme Management

Executive

MemberPayroll

Provider

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

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

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

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

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

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)

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

Communication with members

Key responsibilities

Pension Starter Packs

Provide Pension Scheme Information

Annual Benefit Statements

Office Notices

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

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

Change to personal circumstances

Marriage

Divorce

Civil partnership

Gender Recognition Certificate

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

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

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

Topping up a pension

Added pension

Civil Service Additional Voluntary Contributions Scheme (CSAVCS)

Stakeholder pensions

What happens when a member complains?

Internal Dispute Resolution (IDR)

The Pensions Advisory Service (TPAS)

Complaints Leafleton CSP website

Pensions Ombudsman

When staff are injured at work

Civil Service Injury Benefit Scheme (CSIBS)

All employeesare covered

MyCSP PSC decides who qualifies

Staff approaching retirement

Scheme pension age

45 years’ service

Pre-retirement course

Give My CSP PSC plenty of notice

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

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

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

Staff who leave before pension age

Early retirement and early severance

‒ Approved early retirement ‒ Voluntary exit‒ Voluntary redundancy‒ Compulsory redundancy

Ill-health retirement

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

Pensioners and abatement

Re-employed pensioner

Pension Questionnaire and Rejoiner Calculator

Abatement‒ CSP 13 (Estimate)‒ CSP 13

What support is there for me?

MyCSP Pension Service Centre

CSP websiteat www.civilservice.gov.uk

Further support

Employers’ Pension Guide (EPG)

Employer Pensions Notice (EPN) and Pension News

Training

Any Questions?