SCHEME ADMINISTRATION REPORT
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Peter Mawdsley, Deputy Head of Pension Fund |
Merseyside Pension Fund operates the Local Government Pension Scheme, which provides for the occupational pensions of employees, other than teachers, police officers and fire fighters, of the local authorities within the Merseyside area. It also operates the Scheme for members of other organisations, which have made admission agreements with the Fund.
The Scheme is a public service pension scheme regulated by statute through the Department of Communities and Local Government (DCLG) . It is a contributory final salary scheme, which is contracted-out of the State Second Pension (S2P) and is exempt approved for tax purposes.
Development of the Scheme
Since 1922, the Local Government Pension Scheme has developed from a scheme which just provided pensions for officers only, to today’s Scheme which provides pensions and lump sums for all members, spouses, civil and cohabiting partners and children’s pensions, ill health, redundancy and death cover.
Quite clearly it is a comprehensive scheme and yet, through the co-operation of the Government, employer and employee representatives, the Scheme is constantly changing and adapting to modern day needs and demands.
The ‘New-Look’ Scheme was introduced from 1 April 2008 and details are contained in three sets of regulations:
- The LGPS (Benefits, Membership and Contributions) Regulations 2007
- The LGPS (Administration) Regulations 2008
- The LGPS (Transitional Provisions) Regulations 2008
The New-Look Scheme has introduced tiered employee contribution rates and three tiers of ill health retirement benefits. It provides for 1/60th pension accrual for membership from 1 April 2008 with the option to commute to provide a tax-free lump sum and, for the first time, provides for pensions for nominated cohabiting partners.
Discussions are also still continuing on a number of matters including; the extent of transitional protection to be given to members affected by the removal of the 85 year rule, the introduction of a cost sharing arrangement for future increases in the cost of funding the Scheme and future arrangements for councillors pensions.
A number of changes to the rules on tax relief on pension contributions for high earners, were announced during the year by the Government.
| Membership |
31 March 2009
|
31 March 2008
|
|
Contributions
|
50,892
|
50,088 |
|
Pensioners
|
39,772
|
38,999
|
|
Deferred Beneficiaries
|
27,517 | 26,102 |
