News 

This section provides specific news for Active Members of the scheme, from our upcoming events, to the latest contribution bands. 

Changes to Survivor Benefits

Changes to survivor benefits for same sex spouses and civil partners

Changes have been made to the scheme rules that provide survivor benefits payable to a same sex spouse or a civil partner. They now equal those paid to the widow of a male member. 
 

Why has the change been made? 

The change has been made as a result of a Supreme Court judgment (Walker v Innospec) which found that Mr Walker’s male spouse was entitled to the same benefits that would have been paid if Mr Walker had left a widow in an opposite sex marriage.
 

Why does this apply to the LGPS? 

The government believes that the implication of this judgment for all public service pensions schemes, including the LGPS, is that surviving civil partners or surviving same sex spouses should be provided with benefits equal to those that would be left to the widow of a male member. 
 

When does the change take effect from? 

The change is backdated to the date the civil partnerships and same sex marriages were introduced – this is 5 December 2005 for civil partnerships and 13 March 2014 for same sex marriages. 

This means that where a member of the LGPS has died leaving a surviving civil partner or a same sex spouse, the survivor’s pension in payment will need to be reviewed and any additional amounts paid, where applicable. We are in the process of reviewing the impact of this change and will be contacting affected civil partners and same sex spouses in due course.
 


Revised guidance for Transfer Values

On 29 October 2018, the Government confirmed that the SCAPE discount rate will reduce from 2.8% above CPI to 2.4% above CPI. The Government Actuary’s Department (GAD) use this rate when setting the factors that we must use to work out cash equivalent transfer values (CETVs). As such for a short period of time we were unable to issue new CETV quotations however; on 19 November 2018, the government issued some of the revised factors. These factors allow us to recommence processing CETVs for divorces and transfers-out.

We are still unable to process transfer-in quotations.

We thank you for your patience,

Engagement Team



Pension case verdict in the news!

Denise Brewster, who was refused payments from her former partner's pension, has won her battle to extend benefits automatically to those who are unmarried, in a case which could benefit large numbers of public sector workers. Her victory at the Supreme Court marks a significant extension of the rights of unmarried cohabitees after five justices ruled the refusal to pay her the pension was unlawful. Her partner had worked for 15 years at Translink, which runs Northern Ireland's public transport services, and had paid into Northern Ireland's local government pension scheme. Shlomit Glaser, a solicitor specialising in family law at the London firm Glaser Jones said: It has wide implications for public sector schemes. The Supreme Court emphasised that no convincing economic or social reasons had been put forward for the policy of excluding a cohabitee, solely because a form had not been filled in.

This case highlights the importance of having an up-to-date nomination form. You can find these forms here: Nomination Forms



Working past 65

As you may already be aware by working past age 65 your pension benefits receive an actuarial increase applied to the pension benefits you have built up when you belatedly take your benefits to recompense you for the pension being paid for a shorter period.

The Government Actuary Department have now issued revised factors for those who delay their retirement beyond age. These changes come into effect from 4 January 2017 and are significantly reduced from those in place previously.

The factor for actuarial increase has been reduced from 0.014% to 0.01% for annual pension (for each day worked past SPA) and from 0.007% to 0.001% in respect of lump sums. Actuarial increases for late retirement are calculated based on the factors in force at the ultimate date of retirement, therefore after 4th January this change will apply to all days worked past age 65. This will result in a reduction in the additional pension earned prior to 4th January if a member retires after this date.

Below is an example comparison of the actuarial increases earned by a member whose pension was due into payment on 31/12/2015 but who had delayed their retirement by 1 year, and by 1 year and 1 month in example B (notional values used for example). This illustrates the overall reduction in actuarial increases as a result of the new factors being used in the calculation for a member retiring after 4th January 2017.

 

Example A

 

Basic Value

Calculation under existing Factors

Increase for Late Retirement

Annual Pension

£11,000

365 days x 0.014% x £11,000

£562.10

Lump Sum

£25,000

365 days x 0.007% x £25,000

£638.75


Example B

 

Basic Value

Calculation under post 4th January 2017 Factors

Increase for Late Retirement

Annual Pension

£11,000

395 days x 0.01% x £11,000

£434.50

Lump Sum

£25,000

395 days x 0.001% x £25,000

£98.75

Please note that these new factors will come into effect from 4th January and will apply to all the benefits that have been delayed beyond age 65, for some members this could be a significant reduction. 

 



LGPS Amendment Regulations 2018

LGPS Amendment Regulations 2018



LGPS National Insurance Database

What is the LGPS National Insurance Database?

City of London participate in a data sharing project with other LGPS pension funds in England, Wales and Scotland. This is undertaken in order to comply with legal requirements contained in the LGPS’s governing regulations.

Provisions contained in the LGPS Regulations 2013 mean that, if a member of the LGPS dies, it is necessary for the scheme’s administrators to know if the individual also had other periods of LGPS membership elsewhere in the country so that the right death benefits can be calculated and paid to the deceased member’s dependants.

As the LGPS is locally administered, each pension fund has its own membership records and it can be difficult to tell if an individual has other LGPS records and where these are held. To comply with the requirements set out above, a national Database has been developed that will enable funds to check if their members have LGPS pensions records in other pension funds.

What data is shared?

For each member of the LGPS, the Database contains a short entry containing:
  • The individual’s National Insurance Number,
  • A number to denote the individual’s membership status,
  • The last calendar year that the membership status changed; and,
  • A four digit number confirming the LGPS pension fund where that member’s record is held.

Who hosts the Database?

The Database is hosted at the South Yorkshire Pensions Authority, an LGPS pension fund.

How will the data held on the Database be processed?

The data held on the Database will be processed in accordance with the Data Protection Act 1998 and other relevant legislation.

Are there any other purposes that the Database will be used for?

An extract of the membership information contained in the Database will periodically be shared with the Department for Work and Pensions (DWP) that the LGPS can join the Tell Us Once service. Tell Us Once is a service offered in most parts of the country when an individual registers a death. When the LGPS joins Tell Us Once and the death of an LGPS member is registered, the DWP systems will ensure that the LGPS pension fund is informed of the death, meaning that the member’s records can be processed more quickly and simply than would otherwise be the case.

Who is the data shared with?

Other LGPS pension funds. These are all public bodies named in legislation as administering authorities of the LGPS.
For the Tell Us Once service, an extract of the Database containing individuals’ NI Numbers will be securely shared with DWP every month so that they may maintain an up-to-date record of the LGPS’s membership.

How long will this data sharing be undertaken for?

For as long as a) the relevant regulatory requirements remain, and b) the LGPS participates in the Tell Us Once service.
In the event that neither of the above apply, the data sharing will cease to be undertaken.

Can I opt out of this data sharing?

No. As this data sharing is partly being undertaken to comply with a legal requirement, it is not possible for scheme members to opt out of the data sharing.

What do I do if I have any queries?

To find out more about this data sharing or if you have any questions, please contact us:pensions@cityoflondon.gov.uk

 



Contribution Bands 2019/20

The following table displays the 2019/20 bands

If your actual pensionable pay is:
You pay a contribution rate of:
 
Main Section
50/50 Section
Up to £14,400
5.50%
2.75%
£14,401 to £22,500
5.80%
2.90%
£22,501 to £36,500
6.50%
3.25%
£36,501 to £46,200
6.80%
3.40%
£46,201 to £64,600
8.50%
4.25%
£64,601 to £91,500
9.90%
4.95%
£91,501 to £107,700
10.50%
5.25%
£107,701 to £161,500
11.40%
5.70%
£161,501 or more
12.50%
6.25%