LGPS Employer Newsletter

LGPS Employer Newsletter
Avon Pension Fund, Local Government Pension Scheme
Administered by Bath & North East Somerset Council
ISSUE 05 SUMMER 2011
Highlights in this Issue
Ill Health Retirement - New Statutory Guidance
Strain on the Fund Costs
Employer User Group 2011
Pension Packs - posting to
sub-departments of Scheme Employers
Auto-enrolment & NEST
New Academies - Contact Procedure
‘Fair Deal’ Consultation Response
Public Sector Pensions Changes - Update on Government Proposals
deliver savings. The Minister’s Statement can be
accessed via the link:
http://www.avonpensionfund.org.uk/news/docs/
HMTreasurystatement19.7.2011.pdf
The Chief Secretary to the Treasury, Danny
Alexander, issued a Statement on 19th July
regarding the government’s commitment to
achieve cost-savings equivalent to 3.2% of
pension contributions across the public-sector
Schemes by 2015; and the government will
look at reform on a Scheme by Scheme basis.
Importantly for the LGPS, the government
recognises that, as a funded Scheme, the LGPS
is in a different position to the other Schemes and
will discuss whether there are alternative ways to
The government has been in discussion with
the Unions re public sector pension reform and
Danny Alexander wrote to the TUC on 18th July
to set out the current progress, and direction of
future discussion. The Minister’s Letter can be
accessed via the link:
http://www.avonpensionfund.org.uk/news/docs/
HMTreasuryletter18.7.2011.pdf
Employers
Website
Link
Avon Pension Fund, Floor 3 South, Riverside,
Temple Street, Keynsham, BS31 1LA
Tel: 01225 477000
Fax: 01225 395258
Email: apf_communications@bathnes.gov.uk
Web: www.avonpensionfund.org.uk

Ill Health Retirement - New Statutory Guidance
Independent Registered Medical Practitioners
(IRMPs) are required by the LGPS Regulations to
take account of Statutory Guidance when giving
advice to a Scheme Employer which is making
a decision on entitlement to ill health retirement
benefits.
The Secretary of State for Communities and
Local Government (CLG) has issued new
Statutory Guidance, Supplementary Guidance
and Frequently Asked Questions for Scheme
Employers and their IRMPs. These documents
are available in the Ill Health Retirement section
of the Employers Area of the Avon Pension Fund
website: http://www.avonpensionfund.org.uk/
employers/illhealthretirement/index.htm
When seeking advice in an ill health retirement
case, Scheme Employers must ensure that they
forward a copy of CLG’s new Statutory Guidance
and Supplementary Guidance to their IRMP.
Change in Procedure to Process Ill Health Retirements (IRMPs)
The LGPS Regulations require Avon Pension
Fund (APF) to approve the Independent
Registered Medical Practitioner (IRMP) from
whom a Scheme Employer takes advice before
making a decision on ill health retirement.
Change to APF’s approval of Scheme
Employers IRMPs
APF’s practice has been to give general approval
to any IRMP who states that they hold the
qualifications prescribed in the Regulations.
Following Audit advice, APF has reviewed this
practice in the light of an increasing number of
IDRP appeals initiated by Scheme Members and
also the significant difference in benefit levels
between Tiers 1, 2 and 3. Going forward, APF will
be approving each IRMP from whom a Scheme
Employer takes advice on an individual basis.
New ill health retirement procedure from
1 September 2011
From 1 September 2011, APF will not process
an ill health retirement benefit unless the IRMP
who has given advice to the Scheme Employer
has been approved by APF and we are also
holding a copy of the IRMP’s signature and
qualification on record. If you anticipate that the
new procedure may cause a particular problem
for your organisation please contact APF.
Is your organisation’s IRMP form up-to-date?
As outlined in APF’s Communication Update
emails in March and June 2011, Scheme
Employers are requested to complete a new
LGPS54 form (which can be downloaded at
www.avonpensionfund.org.uk/forms/LGPS54/
LGPS54(08-03-11).pdf) and also attach
photocopies of your IRMPs’ certificates in
occupational health medicine.
Any Scheme Employer which has not yet
forwarded the LGPS54 form to APF, with
copies of the certificates confirming that their
IRMPs have the prescribed qualifications,
will need to take action now to avoid any
unnecessary delays in processing ill health
retirement benefits.
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LGPS Employer Newsletter - Issue 05 Summer 2011

New Academies - Contact Procedure
With the increasing
number of primary
and secondary
schools seeking
or converting to
Academy Status
and therefore
becoming an
independent Avon
Pension Fund Employer Body with its own
employer contribution rate, it is important that
pension provisions are in place from the date of
conversion.
Should you receive enquiries please ask that
they contact:-
Dianne Evans
Assistant Employer Relationship &
Communications Manager
Email: dianne_evans@bathnes.gov.uk
Tel: 01225 395267
Fax: 01225 395258
Further information is available from the Avon
Pension website:- http://www.avonpensionfund.
org.uk/employers/academystatus/index.htm
Final Pay Calculator
It is important for a Scheme Employer to calculate each Member’s Final Pay correctly, as the figure
provided to APF will be used by APF to calculate the Member’s LGPS benefits. To help Scheme
Employers calculate Final Pay, APF has drafted ‘Factsheet 07 - Calculation of Final Pay’ which
includes worked examples for whole-time and part-time Members, which can be used with the ‘Final
Pay Calculator’.
http://www.avonpensionfund.org.uk/employers/finalpay/index.htm
Pension Packs - posting to sub-departments of Scheme Employers
In line with our Pensions Administration Strategy (which can be downloaded at
www.avonpensionfund.org.uk/governance/AvonPensionFund-AdminStrategy2011.pdf)
Avon Pension Fund (APF) has reviewed the cost and effectiveness of the information for new, and for
prospective, Scheme Members.
The review has highlighted the ever-increasing cost of posting Pension Packs to Scheme Employers
(the Royal Mail currently charge in excess of £5 for 10 packs). In an effort to reduce postage costs,
APF will deliver Pension Packs to the central HR departments of Scheme Employers in the most
cost-effective way possible (including utilising parcel post and, where they exist, internal mail systems
between public-sector employers in the Avon area).
Please note that APF will no longer post Pension Packs on request to individual sub-departments
(including LEA schools) of Scheme Employers.
Other initiatives APF has developed to provide pensions information to new and prospective Scheme
Members in a cost-effective way:
• An electronic Pensions Pack which Employers can either print off or email to staff
www.avonpensionfund.org.uk/employers/pensionpacks/default.htm
• ‘Thinking of Joining’ section on our website for prospective Members
www.avonpensionfund.org.uk/joingtheLGPS/default.htm
• An updated version of the LGE video presentation for LGPS Members
www.avonpensionfund.org.uk/LGPS-Video2009/index.htm
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LGPS Employer Newsletter - Issue 05 Summer 2011

Employer Self Service – A Major Advance
obtain attached Strain on the Fund costs.
Product testing is now complete and phase one is
ready to be rolled out. To register to use ESS, we
require you to advise us of the name of a senior
contact who will then be responsible for informing
us which of your staff will require access and are
authorised to use the service.
Employer Self Service (ESS) is an internet-based
application which enables employers to access
and amend their own employees’ information
online, including starters and changes.
ESS will provide increased flexibility for
employers. The service enables us to provide you
with instant access to a range of information and
facilities using a simple web interface including
the facility to carry out benfit calculations and
Initially we require YOUR senior contact to e-mail
the following information to
pensions_support@bathnes.gov.uk
Full Name
Position
Employer Name
Contact Telephone Number
Further information can be found on our web-site
at www.avonpensionfund.org.uk
Fair Deal Consultation
Employers have previously been sent the Consultation which closed on the 15th June 2011.
Avon Pension Fund’s response to the ‘Fair Deal’ Consultation can be found at the link below:
http://www.avonpensionfund.org.uk/news/docs/FairDeal-ResponseJune2011.pdf
Auto-enrolment & NEST
The Fund Actuary, Mercer, has produced a
useful guide on what Employers need to know to
prepare for compliance with the forthcoming autoenrolment
and NEST arrangements. The guide
is intended for all their client pension schemes in
both the public and private sector.
A copy of the Fund Actuary’s guide can be
downloaded from the Avon Pension Fund website
http://www.avonpensionfund.org.uk/employers/
guides/docs/Mercerauto-enrolmentandNEST.pdf
N.B. if a Scheme Employer has a query on autoenrolment
and NEST they should not contact the
Fund Actuary directly but address their query to
Steve McMillan, Pensions Manager.
Further guidance for Employers:
• The Pensions Regulator has published
detailed guidance for employers which can
be downloaded from their website at
http://www.thepensionsregulator.gov.uk/
pensions-reform/detailed-guidance.aspx
• APF understands that LGE (the Local
Government Employers organisation) intends
to produce a guide specifically for LGPS
Employers which will be available later this
year.
To download this document in PDF format visit:
http://www.avonpensionfund.org.uk/employers/newsletter/index.htm
LGPS Employer Newsletter - Issue 05 Summer 2011 5