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The newsletter for active members of the Clwyd Pension Fund
This information is available in alternative formats for example Braille, large print, BSL Video/DVD, audio tapeand other languages on request.
PenpalIssue No. 23, Autumn 2020
Administered by
Dear Member, Welcome to Issue 23 of Penpal, the Clwyd Pension Fund newsletter for the 17,200 members who are currently contributing to the Fund (“active members”).
This issue includes information on an impending regulation change (the McCloud Judgement), this year’s employee pension contribution bandings, information on member 1-2-1 sessions and the Fund’s financial update. There is also an article explaining how you can register for the on-line Member Self Service facility – please register to ensure you receive all communications from us. If you have any queries regarding any information included in this newsletter, please find our contact details in the ‘Contacting Us’ section.
Kind Regards,
Karen WilliamsPensions Administration Manager
Changes to LGPS Regulations – ‘The McCloud Judgment’When the Local Government Pension Scheme (LGPS) changed from a final salary to a career average pension scheme in 2014, protections (known as the “underpin”) for those nearing retirement were included. Similar protections were provided in other public sector pension schemes. The Court of Appeal has ruled that in the Judge’s and Firefighter’s Pension Schemes, these protections were discriminatory in that they did not apply to younger members. The Government has confirmed that there will be changes to all main public sector schemes, including the LGPS, to remove this age discrimination. This ruling is often called the ‘McCloud judgment’.
The Government is still considering exactly what changes need to be made in order to remove the discrimination from the LGPS. We will keep you informed of this development in future PENPALs and on the Clwyd Pension Fund website. Clwyd Pension Fund will ensure that if any increase in pension is due to you, it will be applied automatically so you will not be required to make a claim. For more information, please see the frequently asked questions (FAQs) on the national LGPS website.
https://lgpsmember.org/news/story/mccloud_qanda.php
The FAQs include information such as:
What does it mean for the LGPS? The Government are currently consulting on the changes that could be made to provide younger members with a protection equal to the underpin protection provided to older members. Once responses to the consultation are collated and considered, new LGPS Regulations will be put in place to remedy the age discrimination.
Will the changes apply to me? The Government’s intention is for the changes to apply to members of the LGPS who were in service on 31 March 2012 AND also have service after 31 March 2014 (without a break of more than five years).
Will my pension increase? For most members, it is unlikely they will see an increase in pension. If there is an increase, it is likely to be small. This is because most members will build up a higher pension in the post April 2014 Career Average Pension Scheme (CARE), than in the pre April 2014 Final Salary Pension Scheme. We will automatically check if the new protection increases the amount of your pension benefits when you leave the scheme and also when you eventually retire, if later.
When will changes come into effect? The changes are not expected to be introduced before April 2022. Anyone who leaves or retires before then will have the changes retrospectively applied.
Follow us onTwitter@ClwydPensions
Member 1-2-1 appointments 2020Due to Covid-19, this year’s pension 1-2-1 appointments will be held via video call or phone call. The appointments will last for a maximum of 30 minutes on allocated dates to enable you to ask general questions about your Clwyd Pension Fund benefits. Your employer will advertise their allocated dates. If you are interested in having a 1-2-1, please contact the Clwyd Pension Fund to make your appointment. You can contact us via email [email protected] or call 01352 702980.
Please have a copy of your 2020 Annual Benefit Statement at hand for your appointment. The Clwyd Pension Fund will be able to see a copy of the statement online via your pension record.
Band Actual Pensionable Pay Contribution Rate Per Employment
Main 50/50 Scheme Scheme
1 UP TO £14,600 5.50% 2.75%2 £14,601 TO £ 22,800 5.80% 2.90%3 £22,801 TO £37,100 6.50% 3.25%4 £37,101 TO £46,900 6.80% 3.40%5 £46,901 TO £65,600 8.50% 4.25%6 £65,601 TO £ 93,000 9.90% 4.95%7 £93,001 TO £109,500 10.50% 5.25%8 £109,501 TO £164,200 11.40% 5.70%9 £164,201 OR MORE 12.50% 6.25%
2020/2021 Scheme Member Contribution RatesThe table below shows the employee contribution bandings for the 2020/2021 scheme year. Your employer applies the rate for each separate employment you have with them. This table allows you to check your contribution rate against the pay that you have paid pension contributions on per employment.
COVID-19 UPDATEDespite the recent events of COVID-19, the Clwyd Pension Fund have been able to work without disruption from home rather than from the offi ce. The main difference is that we are currently unable to offer face to face appointments. Members can still contact the Fund via email, telephone or the ‘contact us’ section on Member Self Service.
FAQs have been created by the Local Government Association (LGA) about how the scheme is impacted by COVID-19. They include information about: • If your pay is reduced due to furlough, how this affects your LGPS pension• How to buy back any lost pension• How your employee contribution rate has been determined by your employer this year• Being aware of pension scams during this time, if you are advised to transfer your LGPS benefi ts to a different
pension provider
The FAQs can be found by visiting the following website link: https://www.lgpsmember.org/news/story/covid_19_member_qanda.php
Alternatively, you can contact the Clwyd Pension Fund and ask for a copy of these FAQs to be posted or emailed to you.
Annual Benefi t Statements (ABS)Have you seen your Annual Benefi t Statement for 2019/2020?Your ABS has been issued in August. If you have not received this, can you please contact us with your preferred method of communication. All member documents are automatically uploaded to your Member Self Service (MSS) record which you need to sign up for to view (see page 4). If you have opted out of digital communications you will have been sent a paper copy instead.
It is important that you review your ABS because YOU MUST CHECK that your CARE Pensionable Pay is correct. You will lose the right to appeal if you fail to identify any incorrect information within 6 years of the statement being issued. If your pay details are incorrect, you should contact your employer and they will inform the Clwyd Pension Fund of any corrections to be made to your pension record.
Pensions Made SimpleA selection of LGPS videos have been put together by the Local Government Association. The videos are designed to help LGPS members understand their pension scheme and how it works.These videos are available in English and Welsh and can be viewed by using the following link:
https://www.lgpsmember.org/more/Videos.php
2019/20 FACTS AND FIGURES AT A GLANCEContributions are paid into the Fund by both employers and their employees. Any money not needed to pay pension benefits in the short term is invested in order to provide future benefits. Monies are invested in line with our Investment Strategy and Responsible Investment Policy, which includes a statement on the management of climate risk. You can find the Investment Strategy Statement on the link below.
https://mss.clwydpensionfund.org.uk/home/investments-and-governance/strategies-policies/index.html
As the Local Government Pension Scheme is a defined benefit scheme, the Fund’s investments have no financial impact on the value of your own pension benefits when you retire. Therefore the figures below are for information purposes.
MARKET VALUE OF FUNDAS AT 31 MARCH 2020
£mFixed Interest Securities 499,809Equities 240,436Alternative Investments 1,033,525Cash 20,238Net Assets 2,817 1,796,825
CHANGE IN NET ASSETS £mFund at 1st April 2019 1,866,775Deficit for the year -12,827Changes in market valueduring the yearRealised & unrealised loss -57,123 Fund at 31st March 2020 1,796,825
2019 - 20 INCOMEIncome £m Employees 16,337Employers 60,771Investment Income 11,741Other 6,108 94,957
2019 - 20 EXPENDITUREExpenditure £mPensions 63,070Lump Sums 15,891Other 28,823Deficit for the year -12,827 94,957
CONTRIBUTORS 31ST MARCH 2020
All Contributors 17,211
PENSIONERS 31ST MARCH 2020
Retired Members & Dependants 14,739 Preserved Benefits 17,745 32,484
Administered by
If you should have any querieson the Fund’s Investments or
Accounts please contact:
Mrs Debbie FielderDeputy Head of Clwyd Pension Fund
on 01352 702259 or e-mail [email protected]
Please note that Flintshire County Council is the administration authority of the Clwyd Pension Fund and we use your personal data in accordance with Data Protection legislation to provide you with a pension administration service. For more information about how we use your
data, who we share it with and what rights you have in relation to your data, please visit the Privacy Notice on our website.
MEMBER SELF SERVICEManage your pension on our online portal! Member Self Service (MSS) allows you to access your pension account and any information about the scheme safely and securely.
To log into MSS please follow this link:https://mss.clwydpensionfund.org.uk/home/login/
If you have not already registered, please email: [email protected]
What can you do once you are registered?• View all of your pension accounts• Estimate your pension at retirement using our online projectors (which includes figures for survivor’s
pensions too)• Update your nomination details in the event of your death• Update your contact details• Message the Fund using the ‘Contact Us’ facility
If you do not have online access, and still want to receive paper copies of the information that we provide, you must put your request in writing, including your name and National Insurance number. Otherwise we will continue to automatically upload your documents onto your Member Self Service account.
Please note that you cannot opt for MSS and paper copies.
By going paperless, this small change can make a big difference to the environment!
Contacting Clwyd Pension FundLocal Government Pension Queries:
[email protected] [email protected]
Clwyd Pension Fund,County Hall, Mold, Flintshire, CH7 6NA.
01352 702980 01352 702950 (Monday to Friday: 9am - 5pm)
Keeping us updated with your address and contact detailsPlease let us know if you have moved house or have changed your contact details.
Our preference, and the most secure method, to update these details is for you to log into your Member Self Service account to amend your record.
If that is not possible you can:• Email [email protected] with your full name, national insurance number, new and old address or contact
details• Contact us via phone and we can send out a ‘change of details’ form for you to complete and return to us
PLSA Retirement Living StandardsPlanning for the future is an important part of life. More of us are saving in a workplace pension than ever before. We now have more information, more choices, and more responsibility for our retirement savings.
Research has been commissioned by the Pensions and Lifetime Savings Association (PLSA) and the ‘Retirement Living Standards’ tool has been based on that independent research. If you are interested, have a look at the below website to help with financial planning for your future retirement:
https://www.retirementlivingstandards.org.uk/
