1. In EPN460 (12 August 2016) we advised that Cabinet Office, as Scheme Manager, had decided to move to a single DC provider and a procurement exercise would be undertaken.
2. In EPN508 (25 September 2017) we advised that Cabinet Office had selected Legal & General (L&G) as the preferred bidder. This decision was subject to member consultation and the consultation would run from 25 September 2017 to 25 October 2017.
3. This notice is to confirm that following a review of the consultation responses we have selected L&G as the new DC provider.
4. This decision is only in respect of the defined contribution pension schemes and does not affect the defined benefit schemes.
Member Consultation
5. The consultation response has been published today and can be found using this link.
6. We have published a notice on the member section of the website. Please notify your members that the consultation response has been published and where the details can be located.
Advising unions of the outcome of the member consultation exercise
7. The Cabinet Office has advised the unions of the consultation outcome via the Joint Superannuation Committee (JSC). The JSC comprises of the Public and Commercial Services union, FDA, Prospect, POA, Unite and GMB.
8. If there are any unions you feel need to be informed of the consultation outcome please advise them and provide a copy of the consultation response document.
Impact of planned transition activity on employers and payroll
9. The Cabinet Office foresees the following changes being required as a result of the transition process:
10. The transition planning process is at a very early stage and further details will be provided in February. We would however ask that you raise change requests with the relevant departments and suppliers to ensure that they are in a position to take action when details are confirmed.
11. Partnership scheme members receive employer contributions in line with the agreed schedule. There are no changes planed to the level of contributions payable by employers.
Impact of planned transition activity on scheme members
12. The planned changes for members are as follows:
|
Scheme |
This is the approach we expect to take |
|
Additional Voluntary Contribution |
Future contributions will move to the new provider from September 2018. Existing pension funds held with the current providers will be transferred to the new provider in quarter 4 2018. The changes will not be implemented where the change would cause financial detriment and all members will be given the option to opt-out of the transfer of their existing pension funds. |
|
Partnership Pension Account |
Future contributions will move to the new provider from September 2018. The change will not be implemented where doing so would cause financial detriment. Members will be offered the option of transferring their existing pension fund to the new provider in quarter 4 2018. |
|
Stand-alone Stakeholder |
The stand-alone stakeholder will no longer be offered however members will be able to join the AVC scheme from September 2018 if they wish. Members will also be offered the option to transfer their existing Standalone Stakeholder to the new provider in quarter 4 2018. |
13. Further information on the transition process will be published on the member’s section of the Civil Service Pensions website in February 2018.
14. Cabinet Office, as Scheme Manager, will write to scheme members in July 2018 (TBC) to advise how the changes will affect them personally.
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Contacts If you require further assistance on the content of this EPN please contact DC.Transition@cabinetoffice.gov.uk If you have a question about the distribution of EPNs or you need to receive them in a different format contact employerpensionnotice@cabinetoffice.gov.uk You can find electronic copies of the Employers’ Pension Guide, all current EPNs and forms on our website www.civilservicepensionscheme.org.uk under ‘Employers’. 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 at: |