Date posted: 22/04/2015
Audience:
This notice will be of particular interest to:
- Pension leads; and
- Any staff connected with paying Cabinet Office charges associated with the death and ill-health benefits that apply to partnership members
Action:
- Note the new rate for the death and ill-health schemes relating to partnership that were introduced on 1 April 2015 and ensure the correct rate is applied. This has decreased from 0.8% of pensionable pay to 0.5% of pensionable pay. This charge is sometimes referred to as a mini-ASLC.
Timing:
Detail
- Following the review of Defined Contribution pension arrangements last year, the rate the scheme charges for provision of death and ill-health benefits to partnership members has been reduced from 0.8% to 0.5%. This is a payment employers make to Cabinet Office, and is separate from the contribution employers make to the provider of members’ partnership pensions.
- The reduction is due to changes in financial and other actuarial assumptions, and is based on advice from the Government Actuary’s Department.
- The changed contribution rate is documented on the employer contribution rates page, www.civilservicepensionscheme.org.uk/employers/employer-contribution-rates/
Action required
- Employers should ensure they pay 0.5% of pensionable pay effective from 1 April 2015, and not the previous rate of 0.8%.
- If it is not possible for you to make adjustments at this stage and an overpayment will occur, employers should contact Cabinet Office at csvote@cabinet-office.x.gsi.gov.uk to discuss the best way to correct the overpayment.
Contact
If you have a question about the distribution of EPNs contact employerpensionnotice@cabinetoffice.gov.uk.
You can find electronic copies of the Employer Pension Guide, all current EPNs and forms on our website.
This notice is for employers and should not be issued to scheme members.
If members have a question about their pension they can find information on this website or by contacting MyCSP.
