Payroll and Pensions Roadshow

1
Payroll and Pensions Roadshow

• Barbara McKinna Payroll Accounts Manager
• Chris Hutchings Pensions Account Manager
• Jerry Hitt Pensions Account Manager DPT and PCT

2
Payroll Team

• Responsible for 5 payrolls
• RDE approx 7,300 employees
• Account Manager Rob Newell
• DPT approx 2,600 employees
• DPCT 3 payrolls approx 3,900 employees
• Account Manager Barbara McKinna

3
Timetable and Deadlines

• Must receive all staff attendance records and
  bank timesheets by 4th of the month
• All change of circumstance forms and other
  paperwork by 10th of the month
• Payroll close routines take a week to process
• Retrospective payments reports and pre payroll
  run checks required

4
eSARs and Bank Timesheets

• From 1st March we will strictly adhere to
  deadlines for receipt of eSARs and bank
  timesheets all SARs must be sent
  electronically
• Omissions and alterations to eSARs will not be
  corrected until the following month
• If bank timesheets are not completed correctly
  e.g. no assignment number or incorrect budget
  number they will be returned to employee and not
  paid

5
Vital Information Required

• Leavers e mail termination date to avoid
  overpayment
• Return to work from sickness date as SARs are
  one month in arrears can result in under or
  overpayment
• Change of circumstance forms completed on time
  to avoid incorrect payment

6
Future Changes

• April 2008 change from weekly to monthly pay -
  last weekly pay date 4th April 2008
• Working Time Directive payments resume in April
  2008
• Annual leave to be notionally rostered for hours
  worked up to 31st March 2008
• Quarterly additional WTD payments for employees
  with higher annual leave entitlement

7
Reminder - Changes to WTE

• 1st December 2007 the protection for some
  employees on WTE of 37, 36 ½ and 36 hours changed
• Part time employees given option to increase
  their hours to keep same level of salary
• Extra minutes therefore must be worked
• Annual leave entitlement changed
• Additional hours/overtime paid must be based on
  new weekly hours

8
Payroll Contacts

• Please use generic e mail box
• Payroll.DPT_at_rdeft.nhs.uk
• Handout with all telephone and contact
  information
• Please quote DPT on all correspondence
• Be aware Payroll is a very busy area and may not
  be able to respond immediately
• Thank you for your co operation

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Changes to the NHS Pension Scheme

• Christopher Hutchings - Pension Accounts Manager
• Jerry Hitt Pension Accounts Manager for the PCT
  DPT

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Contents

• Overview
• Changes to the existing Scheme
• The New Pension Scheme
• Q A session General questions only please

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First Things First

• Not Agreed By Parliament
• We can only give information Not Advice.

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Whats changing when?

• Updating the NHS Pension Scheme for existing
  members keeps the current core benefits, with
  new ones
• Introducing a New NHS Pension Scheme for new
  members more flexibilities, particularly before
  retirement
• All the changes will come into effect on 1 April
  2008
• Current members will automatically switch to the
  updated NHS Pension Scheme
• Both will have new, identical contribution rates

13
New contribution rates

• Your employer will continue to contribute 14

14
Options to think about now

• Most staff dont need to do anything now
• But some staff will need to consider their
  options
• Those who want to buy added years before its
  replaced by new option to buy pension.
• If you want to join the current scheme you will
  need to do so by 31st March 2008.
• Employees who want to move to the new Pension
  Scheme will have the option from July 2009 June
  2010.

15
What do I need to do now?

• Employees will have received a leaflet with their
  November payslip outlining what the key changes
  are
• You can also get more information on the Pensions
  Division website www.pensions.nhsbsa.nhs.uk
• There is a range of detailed factsheet on the
  Pensions Division website

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Changes to the Current NHS Pension Scheme
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NHS Pension Scheme scheme for existing members

• Updated retains core benefits, with new ones
• Keep current pension age of 60 (55) no change
• Keep current final salary pension no change
• Partner pensions (for service from 1988)
• Keep survivor pensions for life
• One-off choice to move to new members Scheme
• More flexibility on tax free lump sum

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How will it work? - more choice on lump sum in
NHS Pension Scheme

• Jack is 60 - hes entitled to a pension of 6,000
  with a tax free lump sum of 18,000
• He can take a lump sum anywhere between
  18,000-32,160
• He takes the maximum up to 25 of the value of
  his pension worth 32,160 to increase its
  overall value by 14,160
• In return for the extra 14,160, Jack gives up
  1,180 of his pension exchanging 1 per annum
  of pension for every 12 extra in his lump sum
  giving him a total pension of 4,820

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The New NHS Pension Scheme
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New NHS Pension Scheme Scheme for new members

• New Scheme, offering a number of flexibilities
• Normal Pension Age (NPA) of 65
• Final salary pension (average of best 3 yrs in
  last 10), increased by RPI
• Flexibility on lump sum up to 25 of pension
  value. (1/60th Scheme)
• No lump sum payment but more flexibility.
• Same contribution rates as existing members
  scheme

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Recap on timings

• 31 March 2008
• 1 April 2008
• 30 Sept 2008
• 1 July 2009 - 30 June 2010

• Must have shown an interest in buying added years
• Employees who want to be members of the current
  scheme must have done so by now
• current active members will automatically move to
  the updated NHS Pension Scheme
• introduce the New NHS Pension Scheme for new
  members
• last date for those who deferred their pension
  more than 5 years ago, to join the updated NHS
  Pension Scheme
• - plan to offer members of the updated NHS
  Pension Scheme the option to move to the New NHS
  Pension Scheme

22
More information

• www.pensions.nhsbsa.nhs.uk the Pensions
  Division website, for details on your current
  pension scheme, all the scheme changes and
  on-going updates
• Your employer - for details on the changes
• An independent financial advisor - for advice on
  financial planning. To find your nearest IFA call
  0800 085 3250
• The Pensions Division will be publicising details
  about the one-off option for people to move to
  the New NHS Pension Scheme in due course.