PROVISION OF PENSION SERVICES
PART 1 – FIREFIGHTERS’ PENSION SCHEME ADMINISTRATION
PREAMBLE
1. The pensions section shall provide a full service in respect of the administration of the existing and the new Fire Fighters Pension Scheme, including the provision of pensioner payroll services. Unless otherwise stated all responses and actions will be completed within 30 days from the receipt of the request and/or all relevant information.
BCC RESPONSIBILITIES
2. The Pensions Section shall:
a) Provide estimates of benefits within 10 working days of receipt of the request to, a fire fighter or to BMKFA as required.
b) Calculate estimates of service credits in respect of previous pension arrangements. This will include calculation of a revised Notional Start Date.
c) Ensure that all cheques received in respect of a transfer in from a previous pension arrangement are sent to BMKFA within 1 working day of receipt within BCC Pensions.
d) Notify BMKFA and the fire fighter, upon completion of a transfer in of previous pension entitlements, of the service credit awarded and the revised Notional Start Date.
e) BCC Pensions will calculate benefits due at retirement, including the calculation of injury benefits if relevant and write to the fire fighter with details. Upon receipt of the fire fighters commutation option, BCC Pensions will forward a copy of the calculation to BMKFA for payment of the lump sum within 5 working days of receipt of the commutation form. An e-mail will be sent by a senior member of the pensions' team confirming the lump sum to be paid.
f) Calculate transfer values out of the scheme. Forward a copy of the calculation to BMKFA for payment of the transfer value. An e-mail will be sent by a senior member of the pensions team confirming the transfer value to be paid.
g) Upon notification by BMKFA of any periods of unpaid leave, update the fire fighters pension record and recalculate the fire fighters Notional Start Date. BCC Pensions will notify BMKFA and the fire fighter of the revised Notional Start Date.
h) Calculate pension benefits for a fire fighter who leaves BMKFA before retirement age with an entitlement to preserved benefits within 60 days of leaving service or of being notified of the event if later.
i) Calculate and forward a copy of the calculation to BMKFA to pay a refund of pension contributions where a fire fighter leaves with more than 3 months but less than 2 years and claims the refund. If a fire fighter opts out of the scheme within 3 months of joining, BMKFA will pay the refund. If the 3 months spans 2 financial years then BMKFA will refund the pension and correct the NI for the current financial year and BCC pensions will action the refund for the previous financial year.
j) An e-mail will be sent by a senior member of the pensions team confirming the refund to be paid in respect of the previous financial year.
k) Upon notification of the death of a pensioner, BCC Pensions will calculate benefits due to the widow, widower or civil partner and notify the widow, widower or civil partner accordingly.
l) Comply with all statutory provisions.
m) Give advice, where possible, to individual fire fighters on any pensions matter as required.
n) Calculate and notify the pensioner of any variations to pensions in payment both increases and decreases, such as pensions increase at age 55, Guaranteed Minimum Pensions and modifications at State Retirement Age.
o) Apply pensions increase annually to pensions in payment and notify all pensioners of the increase.
p) Provide quotes to fire fighters on request, for the purchase of additional service.
q) Provide a transfer value or other information to a fire fighter within 10 working days of request.
r) Provide details to fire fighters, preserved members and pensioners in respect of divorce proceedings.
s) Implement court orders in respect of divorce.
t) Provide of annual benefit statements.
u) Attend pre retirement and induction seminars and give a presentation on the pension scheme.
v) Provide all relevant information to the appointed actuary for each scheme within the time scales set by that actuary.
w) Complete all the required statistical returns for each scheme being administered by BCC for BMKFA.
BMKFA RESPONSIBILITIES
3. BMKFA will:
a) New entrants: BMKFA will automatically commence deducting pension contributions and send a notification to BCC Pensions.
b) Maternity leave/paternity leave/adoption leave: BMKFA to calculate any arrears due and write to the employee for a decision as to whether they wish to repay contributions for the period of unpaid leave. BMKFA will make the necessary changes to the payroll system and notify BCC Pensions of the dates of paid and unpaid leave accordingly.
c) Unpaid leave or strike action: BMKFA to make a resolution as to whether the fire fighter can pay for the leave. If it is resolved that they can, BMKFA will deduct the arrears of contributions due and notify BCC Pensions of the dates.
d) Purchase of added years: On receipt of request from BCC Pensions, BMKFA will update payroll and commence recovery of the above. Where necessary, BMKFA will recover arrears or make temporary adjustments.
e) Retirements: BMKFA to notify BCC Pensions at least one month before the member is due to retire. Upon receipt of a copy of the calculation from BCC Pensions and the instruction to pay the lump sum, BMKFA the lump sum within 1 day of notification or one day after retirement if later.
f) Resignation: BMKFA to notify BCC Pensions of the date and reason for leaving.
g) Fire fighter opting out of Pension Scheme: On receipt of request from a fire fighter, BMKFA will advise BCC Pensions and update the payroll system.
h) Refund of Pension Contributions: BMKFA will calculate and pay all refunds of pension contributions for members who leave the scheme, within 3 months of joining. Except where the 3 months fall over a financial year. In this instance, BMKFA will refund the pension contributions and correct the NI for the current financial year and BCC Pensions will calculate the previous year and notify BMKFA of the amount payable.
i) Transfer in cheques or BACS payments: Upon receipt of any monies for a transfer in of previous pension rights, BMKFA will copy any correspondence they receive to BCC Pensions straight away.
j) Annual Benefit Statements: BMKFA to provide a spreadsheet (as soon as possible after year end) of all contributions paid up to 31 March each year. Upon a request from BCC Pensions to provide a spreadsheet of all current home addresses.
PART 2 - ADMINISTRATION OF THE LOCAL GOVERNMENT PENSION SCHEME
PREAMBLE
4. The Pensions Section shall provide a full service in respect of the administration of the Local Government Pension Scheme for civilian staff, including the provision of pensioner payroll services. Unless otherwise stated all responses and actions shall be completed within 30 days from the receipt of the request/all relevant information.
BCC RESPONSIBLITIES
5. The Pensions Section will:
a) Upon notification of a new entrant to the scheme by BMKFA, BCC Pensions will set up a record on their system and issue a Statutory Notification to the member with a copy to BMKFA confirming the details held.
b) If the member has previous pension rights, BCC Pensions will write to the provider for transfer details.
c) Upon receipt of transfer details, BCC Pensions will calculate service credits in respect of previous pension arrangements.
d) Issue a Statutory notification, upon completion of a transfer in of previous pension entitlements.
e) Provide estimates of benefits within 10 working days of receipt of the request to a member or to BMKFA as required.
f) Calculate benefits due at retirement, including the calculation of compensatory benefits for early retirement if relevant. Notify the member of the benefits due.
g) BCC Pensions will pay the pension in respect of added years awarded and will recharge BMKFA quarterly for the amount due.
h) Calculate transfer values out of the scheme and make payment out of the Pension Fund.
i) Upon notification by BMKFA of any unpaid leave, BCC Pensions will update their system.
j) Calculate pension benefits for a member who leaves with an entitlement to preserved benefits in 60 days of leaving service, or if later within 60 days of being notified by BMKFA.
k) Calculate and pay a refund of contributions to all members who leave the scheme with less than 3 months service, within 10 working days of receipt of all necessary information. If a member opts out within 3 months of leaving BMKFA will refund the pension contributions through payroll. If the 3 months spans 2 financial years then BMKFA will refund the pension and correct the NI for the current financial year and BCC pensions will action the refund for the previous financial year.
l) Calculate death benefits when a pensioner dies and notify the widow, widower, civil partner (or next of kin) accordingly. A new pensioner payroll record will be set up for the widow, widower or civil partner.
m) Comply with all statutory provisions.
n) Give advice, where possible, to individual members on any pensions matter as required.
o) Calculate and action any variations to pensions in payment, such as pensions increase at age 55, GMPs and modifications at State Retirement Age.
p) Present to pre-retirement courses and pensions talks as required.
q) Apply pensions increase each year; BCC Pensions will do a random check to ensure the rate has been correctly applied. BCC Pensions will notify pensioners of the rate of increase.
r) Provide quotes to members on request, for the purchase of additional service and the payment of AVCs.
s) Ensure members have all the information required to make a decision on the purchase of an annuity in respect of their AVC fund at retirement.
t) Provide a transfer value or other information to a member within 10 working days of request.
u) Provide details to members, preserved members and pensioners in respect of divorce proceeding.
v) Implement court orders in respect of divorce.
w) Provide a newsletter to pensioners as required.
x) Provide an annual benefit statement.
y) Notify BMKFA of any added years payments by e-mail. AVC application forms received by BCC Pensions will be forwarded to BMKFA for action.
z) Provide all relevant information to the appointed actuary for each scheme within the time scales set by that actuary.
aa) Complete all the required statistical returns for each scheme being administered by BCC for BMKFA.
BMKFA RESPONSIBILITIES
6. BMKFA will:
k) New entrants: BMKFA will automatically commence deducting pension contributions and send a notification BCC Pensions.
l) Changes: BMKFA will notify BCC Pensions of any changes to a member’s employment which will affect their pension benefits, this will include changes in hours and a drop in pay or grade.
m) Statutory Notifications: Check copy Statutory Notifications received from BCC Pensions and keep a copy on the members HR file. If BMKFA do not agree with the information on the statutory notification, they will query this immediately, via e-mail, with BCC Pensions.
n) Maternity leave/paternity leave/adoption leave/unpaid leave/strike action: BMKFA to calculate any arrears due for any period of unpaid leave and write to the employee for a decision as to whether they wish to repay contributions for the period of unpaid leave. BMKFA will make the necessary changes to the payroll system and notify BCC Pensions of the dates of paid and unpaid leave accordingly.
o) Added Years: On receipt of request from BCC Pensions, BMKFA will update payroll and commence recovery of the above. Where necessary, BMKFA will recover arrears or make temporary adjustments.
p) AVCs: BMKFA will deduct and pay over AVCs to Prudential or Clerical Medical each month with a payment schedule. BMKFA to notify Prudential or Clerical Medical and BCC Pensions of anyone who leaves or ceases to pay AVCs
q) Retirements: BMKFA to notify BCC Pensions at least one month before the member is due to retire. For redundancy, efficiency or the 85 year rule an early retirement certificate must be issued signed by an authorized officer at BMKFA. For ill health retirements the ill health certificate, signed by Occupational Health, must be sent to BCC Pensions.
r) Resignation: BMKFA to notify BCC Pensions of the date and reason for leaving.
s) Member opting out of Pension Scheme: On receipt of request from a member, BMKFA will advise BCC Pensions and update the payroll system.
t) Refund of Pension Contributions: BMKFA will calculate and pay all refunds of pension contributions for members who leave the scheme, within 3 months of joining. Except where the 3 months fall over a financial year. In this instance, BMKFA will refund the pension contributions and correct the NI for the current financial year and BCC Pensions will calculate the previous year and refund.
u) BMKFA Human Resource Department will provide the Pensions Team with a monthly report of all changes to personal details.
END OF YEAR PROCEDURES
7. BCC is to notify BMKFA of end of year adjustments and accruals in good time and confirm the timetable for the provision of this data with the Area Manager – Finance.
PERFORMANCE STANDARDS
Ø Payment of Lump Sum Commutation within 5 days of retirement provided all paperwork received within one week of retirement.
Ø Payment of transfer value within 6 months of request.
Ø Issue of Statutory Notice within three months of joining.
BCC Contact Officer
Pensions & Investments Manager
SIGNED: DATE:
Name and Title: Clive Palfreyman
Assistant Head of Finance
Buckinghamshire County Council
SIGNED: DATE:
Name and Title: Cynthia Changer, Treasurer
Buckinghamshire and Milton Keynes Fire Authority
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