Timescales

1. Devon Pension Services Pension Liaison Officer Group MeetingPresented by Viv Ray, Deputy Pensions Manager & Shirley Cuthbert, Employer Liaison Officer

2. Timescales • Retirement leavers • EAS2s and P45 • Devon Pension Services send options to members • End of year data • Valuation year 2010 • New Legislation • Secure data - SFTP • EAS5 monthly returns

3. Early retirements • Wef 01/04/2010 Member needs to be age 55 to receive immediate benefits with employers agreement. Exception Ill-health. • Member age 50 leaves on redundancy 30/03/2010, benefits payable wef 31/03/2010. • Member age 50 leaves on redundancy 31/03/2010 no immediate benefits.

4. Exceptions • Members deferred prior to 01/04/2006, Retain age 50 forever! • Members active on 05/04/2006 becoming deferred between 06/04/2006 & 31/03/2008 inclusive, Retain age 50 forever

5. Areas to note • Revisit policy Reg 30 2007 Benefit Regs – Early payment of pension benefits at the request of a member • Axis – will not produce estimate for members under age 55 where dol = 31/03/2010 or later.

6. Expression of wishes form for death grants • DPS are to introduce pre Christmas 2009. • Employers will be emailed when available, need to pass info on to members • Form will be on our web pages for downloading • Paper version also available • Signature needed, electronic not accepted

7. Procedures • Employers to include with info for new staff • DPS will include details on ABSs named person(s), add/review details

8. Example of Wording Member details Surname: ____________________________________ Title: Mr/Mrs/Miss/Ms/Other Forenames: ____________________________________________________________ Nat. Ins. No: ____|____|____|____|___ Date of Birth: ___|___|______ Home address: _______________________________________________________________________ _______________________________________________________________________ Email: ___________________________________ Tel.No: ____________________ I wish Devon Pension Fund, in the exercise of its absolute discretion, to consider paying any lump sum death benefit due under the Local Government Pension Scheme, to the following individual(s) or organisation(s) and if more than one, in the following shares. Beneficiary details Name and address Relationship (if any) Date of Birth (under 18s) Share of benefit Please use additional sheets if necessary and ensure the beneficiaries’ addresses are kept up to date I certify that the above details are correct to the best of my knowledge. Member’s signature: ____________________________ Date: _______________

9. 3RD TIER ILL-HEALTH • Once stopped, when is it paid? • Health deteriorates • Age 65 • Is it best for member to be paid 3rd tier ill-health benefit? Need to make member aware of implications.

11. LEAVERS PROCESS

12. Areas to cover • Remunerations (pensionable pay) • Whole time & Part time figures • Absences in remuneration period • Completion of EAS2s

13. What the Regs say • Calculation is Employers responsibility • An employees final pay will normally be pensionable earnings in final year of service • Wholetime equivalent figure always used in benefit calculations, except Death Grants.

14. Basic Calculation • Full time employee leaves 06/07/08 • Last 365 days = 07/07/07 to 06/07/08 • Annual salary from 01/04/07 = £12345 Annual Salary from 01/04/08 = £12750

15. Part-timers • Part time employee leaves 06/07/08, worked 18.50/37hpw • Last 365 days = 07/07/07 to 06/07/08 • Annual salary from 01/04/07 = £6172.50 Annual Salary from 01/04/08 = £6375.00

16. Options • Final years pay can be substituted by - one of the previous 2 years if higher or Average of any 3 consecutive years in the last 10 years, ending on 31/03/….

17. Practical Exercise 1

18. Pensionable RemunerationsMore complex • Maternity Leave • Unpaid leave • Sickness • Less than one year in ‘that employment’ • Strike • Pay greater in previous year • Pensions Increase

19. Practical Exercise 2