Date posted: 13/04/2004

Issue: This EPN announces increased ASLC rates from next year, 1 April 2005, payable in respect of the Classic, Classic Plus and Premium members of the Principal Civil Service Pension Scheme (PCSPS).

Action: This Notice will be of particular interest to:

  • Employers and their payroll providers
  • Finance Directors of all employers – please draw your Finance Director’s attention to this notice

Timing: Although new ASLC rates do not take effect until 1 April 2005, this notice should be brought to the immediate attention of Finance Directors. Please note that the salary bands below are not final as they will be revalorised each September. The salary bands for 2005-06 will therefore be announced in a further EPN in September 2004.

New Rates of charge

  1. The new rates of charge are being staged over 2 years:
Band

Salary (as the usual the bands will be revalorised in September each year, including 2004)

Rate of charge from 1 April 2005Rate of charge from 1 April 2006
Band 1 £17,000 and under 16.2% 17.1%
Band 2 £17,001 to £35,000 18.6% 19.5%
Band 3 £35,001 to £60,500 22.3% 23.2%
Band 4 £60,501 and over 24.6% 25.5%
Prison officers with reserved rights (Pre-Fresh start)   25.6% 26.5%


The mini-ASLC for the provision of risk benefits to those opting for partnership pension account arrangements remains at 0.8%.

Scheme Valuation

  1. EPN77 issued in September 2003 gave advance warning to employers that revised rates of charge would be payable from 1 April 2005. It explained that before the new rates could be announced: 
  • the Scheme Actuary, Hewitt Bacon & Woodrow needed to finalise the Quadrennial valuation of the PCSPS
  • there needed to be consultation with employers.

All employers were notified of the average increase in charges in Karen Cadman’s letter of 17 November 2003 to HR Directors {ref HRDG(Main)(03)(109), (Small)(03)(78), (NDPB)(03)(71)}, and employers were given the opportunity to comment. At the Treasury’s quarterly meeting with Finance Directors of Main departments on 1 April 2004 a two-stage increase in charges was agreed, starting on 1 April 2005.

Background

  1. ASLCs are the contributions paid by employers to the Cabinet Office: Civil Superannuation Vote every month to provide pension cover for their staff who are members of the PCSPS. The table above shows the annual full-time salary band used to determine the appropriate band of charge for each scheme member, expressed as a percentage. It is important that the full and correct ASLC, together with the member’s contribution, is paid on time for every scheme member.

Contacts:

Enquiries about content:

Employer Helpdesk
employerhelpdesk@cabinet-office.x.gsi.gov.uk 
01256 846414

Enquiries about distribution of EPNs:

Judith Hornby
judith.hornby@cabinet-office.x.gsi.gov.uk 
01256 846271

Published:
13 April 2004
Last updated:
25 January 2022