Date posted: 05/10/2018
Audience
- Pension leads
- HR Managers
- Payroll Managers
- Finance Managers
Summary
This EPN provides additional information about the Defined Contribution (DC) Transition Project and the actions required by employers.
Actions
- To note actions required in order to ensure access to the Legal & General (L&G) Master Trust from September 2018.
- To note details of Scheme Manager letters being issued to active members.
- To action the launch of the new Additional Voluntray Contribution (AVC) application process.
- To note confirmation of the data assurance process, which has been undertaken by Cabinet Office as Scheme Manager.
- To note the release of training material.
- To action changes to the procedure for contributions to the Standalone Stakeholder Scheme where contributions are paid via payroll.
Timing
Detail
- In EPN527, we confirmed Legal & General (L&G) as the new DC provider and asked employers and payrolls to initiate change requests to implement the transition to the new provider on 1 September 2018.
- In EPN533, EPN538, EPN539, EPN542, EPN545, EPN546, and EPN548 we provided further information about the transition project and guidance on the actions required by employers.
- This EPN provides further updates on the transition project.
Member engagement - Scheme Manager Letters to active members
- Scheme Manager letters were issued to active members of the Civil Service Additional Voluntary Scheme (CSAVCS) and partnership pension schemes on 29 August by first class post.
- If a scheme member advises you that they have not received a letter, please ask them to email DC.Provider@cabinetoffice.gov.uk with their name, the scheme name and the provider’s name and then we will be able to investigate further.
Changes to member contact details
- Where an individual is a member of the Defined Contribution pension arrangements, for example, the CSAVCS, partnership or Concord, it is their responsibility to notify the scheme provider of a change to their contact details e.g. name, address, email address, phone number.
- The only exception is CSAVCS members who hold Equitable Life plans as Equitable do not hold member addresses or other contact details. The Scheme Administrator (MyCSP) holds records for these members and therefore updates to main scheme records will also cover the AVC plan.
Legal & General members with central employer postal addresses registered
- If you are registering a central employer postal address for an employee, when establishing a new plan for them with Legal & General, then you must advise the employee of the position. The address is utilised, as a member identifier by Legal & General, therefore the member needs to be aware of this when making contact with them.
- Please also confirm to your members whether it is appropriate for the member to change the address subsequently as Legal & General will accept an address change request made by the member.
Deadline for submission of interfaces to Legal & General
- The deadline for submitting and validating the contribution file for the September payroll is 15 October. This deadline has been set to ensure that the regulatory requirements for contribution payments is met however as this is a first time that you have used the interface we suggest that you upload files before the 15 October to avoid issues arising.
- The new joiner file must be submitted at least 30 minutes prior to the contribution file.
- If you have not yet received the access rights to the Legal & General interface then please contact their team immediately at schemesetup@legalandgeneral.com
Phase 2 – Transfer of existing pension pots
- Thank you for all your work in managing the transition of active member contributions to Legal & General.
- As at 1 October, there are only two providers (Legal & General and Equitable Life) receiving member contributions for Civil Service Defined Contribution schemes; however, members retain their existing pension pots with their previous providers for the time being. The table below is a reminder of the planned next steps on the transfer of the existing pension pots.
| Scheme and Providers | Next steps |
|---|
CSAVCS
(Equitable Life, Scottish Widows, Standard Life) |
Member holds with-profits investments
The existing pension pot will remain with the previous provider. Cabinet Office, as Scheme Manager will continue to oversee the scheme.
Members were advised of the position in the letter issued to them on 29 August.
Members with unit-linked investments only
Cabinet Office, as Scheme Manager, will write to all members to advise that their pots will be transferred to Legal & General. The member will be given the right to opt-out of the transfer and remain with the existing provider. |
partnership
(Prudential, Scottish Widows, Standard Life) |
Member holds with-profits investments
The existing pension pot will remain with the previous provider and will become a personal pension pot under their personal authority. Members were advised of the position in the letter issued to them on 29 August.
Members with unit-linked investments only
Legal & General will write to members in November to advise them how they can transfer their pension pot should they wish to do so. |
Concord for GCO employees
(Standard Life) |
Legal & General will write to members in November to advise them how they can transfer their pension pot should they wish to do so. |
Standalone Stakeholder
(Standard Life) |
The pension plan has become a personal pension plan under the control of the member.
If the member wishes to join Legal & General, they can apply to join the CSAVCS and transfer their pension pot. |
Items for inclusion in future EPNs
- Member engagement on the transfer of existing pension pots.
- Updates on Equitable Life member position following the announcement of the transfer of the Society to Reliance Life.
