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.
Next in our series of ebriefings on the Government’s Green Paper: Transforming public procurement; looking at the Chapter 4 proposal to change the basis of contract awards.
The Academies Financial Handbook is updated annually by the Department for Education and the Education and Skills Funding Agency; it contains a number of governance requirements for academy trusts.
Supreme Court publishes key decision for those working in the UK’s gig economy.
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The Building Safety Bill (the Bill) is said to be the most significant and wide-ranging change to the regulatory environment for higher risk building (HRBs) for over 45 years.
On 4 November 2020, the Restriction of Public Exit Payments Regulations 2020 (the Regulations) came into force; exit payments for the public sector were capped at £95,000.
The case was brought by the Official Receiver who sought disqualification orders under section 6 of the Company Directors Disqualification Act 1986 (CDDA 1986) against the seven trustees of Kids Company and its CEO. It illustrates well the tension between the role of a fulltime paid CEO of a large charity and the role of its board as voluntary trustees/directors.
At the end of 2020, The Charity Governance Code was updated or 'refreshed' as it is termed on its website.
Anthony Collins Solicitors is today (Thursday 11 February) revealing the scale of its social impact during 2020.
In their first podcast of this series, current and future trainees will discuss their journey and route to securing a training contract at Anthony Collins Solicitors.
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