This means that employer contribution rates for those employers participating in the NHS Pension Scheme, the Teachers’ Pension Scheme and the Civil Service Pension Scheme are likely to rise from 2015.
The Government believes that the shortfall across these three schemes is likely to amount to nearly £1 billion per year. The final valuations are due to be published over the coming months. The new contribution rate will be then be decided.
The Government has also outlined details of a new cost-capping mechanism which will operate in all public sector pension schemes from 2015 (or 2016 for the Local Government Pension Scheme). The cost cap is only partial, relating to future service costs. It also only applies to costs which relate to members such as changes in life expectancy, salary growths or career paths but not due to financial performance or technical valuation changes. Where costs rise or fall by more than 2% then member benefits or contributions may be adjusted in order to return costs to the level of the cap.
The Local Government Pension Scheme is also implementing an additional cost control mechanism in order to try to ensure that employer contribution rates are as constant as possible. This mechanism is likely to operate in a similar way to the mechanism outlined earlier with a proposed cap of 19.5% of pensionable payroll.
If you have any questions relating to these proposals or to public sector pension schemes more generally, please contract Doug Mullen on 0121 212 7432 or douglas.mullen@anthonycollins.com.
Would you know how to manage an escalating social media storm? Are you confident in your plans and policies for responding to, and managing, a prominent ‘scandal’ in your charity?
The Civil Partnership (Opposite-Sex Couples) Regulations 2019 were made on 5 November 2019 and came into force on 2 December 2019.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
HMRC’s approach to underpayment of the National Minimum Wage (NMW) is getting tougher and shows no sign of abating.
Now 2020 is here and we have welcomed in the new decade, it’s time to welcome in changes regards the contents of employee’s statement of particulars.
In December 2019, the Care Quality Commission brought its first prosecution against a local authority
The CIL was introduced under the Planning Act 2008 and the CIL Regulations 2010, which came into force in April 2010. CIL is a non-negotiable tax charged by local authorities on new developments.
The Court of Appeal’s recent decision is likely to be unwelcome news for any cash-strapped councils seeking to fund the costs of taxi enforcement through licence fees.
It is important that trustees are aware of the law relating to people who are transgender and those who identify as non-binary so that they can ensure compliance.
Earlier this year, the Charity Commission published its inquiry report into Oxfam GB, following allegations about events in Haiti in 2010 involving its staff members.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.