HR Introduction to Civil Service pensions

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HR Introduction to Civil Service pensions
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Purpose of todays 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

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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

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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!

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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
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Cabinet Office Permanent Secretary
Scheme Management Board
Scheme Management Executive
Employers
Participation Agreement
Contract
Scheme Members
MyCSP
St Ives
Capita Hartshead
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Cabinet Office, SME what does it do?
Employer Support
Manages the Scheme via contract with MyCSP
Cabinet Office SME
Complaints
Policy
Civil Superannuation
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Where do I fit?
Member
Payroll Provider

Employer
Cabinet Office Scheme Management Executive
MyCSP
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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

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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

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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

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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

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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

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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)

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Who pays for a members 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

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Communication with members

• Key responsibilities
• Pension Starter Packs
• Provide Pension Scheme Information
• Annual Benefit Statements
• Office Notices

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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

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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

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Change to personal circumstances

• Marriage
• Divorce
• Civil partnership
• Gender Recognition Certificate

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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

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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

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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

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Topping up a pension

• Added pension
• Civil Service Additional Voluntary Contributions
  Scheme (CSAVCS)
• Stakeholder pensions

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What happens when a member complains?

• Internal Dispute Resolution (IDR)
• The Pensions Advisory Service (TPAS)
• Complaints Leafleton CSP website
• Pensions Ombudsman

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When staff are injured at work

• Civil Service Injury Benefit Scheme (CSIBS)
• All employeesare covered
• MyCSP PSC decides who qualifies

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Staff approaching retirement

• Scheme pension age
• 45 years service
• Pre-retirement course
• Give My CSP PSC plenty of notice

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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

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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

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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 years service
• Less than 2 years service
• Dismissal

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Staff who leave before pension age

• Early retirement and early severance
• Approved early retirement
• Voluntary exit
• Voluntary redundancy
• Compulsory redundancy
• Ill-health retirement

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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

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Pensioners and abatement

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

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What support is there for me?

• MyCSP Pension Service Centre
• CSP websiteat www.civilservice.gov.uk

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Further support

• Employers Pension Guide (EPG)
• Employer Pensions Notice (EPN) and Pension News
• Training

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Any Questions?