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EPN342 - Pension Reform and Extra Pension Contributions

Audience: This Notice will be of particular interest to:

  • Payroll Managers
  • HR Staff dealing with pension questions

Action

  • To note the publication of further documents about pension reform.
  • To note the planned timetable for introducing extra employee pension contributions in 2013/2014.

Timing: Immediate

  1. Pension Reform
    You should be aware the Cabinet Office published an Equality Impact Assessment (EIA) of the planned reform of the Civil Service pension scheme. The EIA considers the impact of the new scheme design on groups protected by equalities legislation. Should you receive any questions from your staff about this document you should refer them to the Civil Service website.

  2. You should also be aware that on 13 September 2012 HM Treasury introduced the Public Service Pensions Bill 2013. The Bill sets out the arrangements for the creation of new public service pension schemes and is the first stage in implementing the reform of the Civil Service pension scheme. If you have any enquiries from staff you should refer them to http://services.parliament.uk/bills/2012-13/publicservicepensions.html
  3. Extra employee pension contributions
    The Government is committed to raising employee pension contributions in April 2013 in aggregate by the same amount that contributions increased this year. The Cabinet Office is currently developing the policy on the extra contribution structure for 2013/14. The aim is to announce the new structure in late autumn after consulting with the Trade Unions.

  4. Our current assumption is there will be no significant change to the approach taken in this years extra pension contribution exercise as explained in EPN328. This is of course dependent on the policy development, the outcome of the consultation and decisions by Ministers. We will issue guidance once the design and consultation have been completed. It is our aim to send all members a letter explaining the increase in February 2013. You may wish to begin talking to your payroll provider to prepare for the increase next year. If you identify any immediate issues please contact us using the email address below.

Reference

EPN328

Contacts

Enquiries regarding content please refer to Scheme Management Executive SMEemployers@cabinet-office.x.gsi.gov.uk

Enquiries regarding distribution or to receive in a different format
Mycsp.basingstoke@dwp.gsi.gov.uk