Date posted: 19/09/2003
Issue
This EPN announces the revised ASLC salary bands from 1 April 2004 payable in respect of the Classic, Classic Plus and Premium members of the Principal Civil Service Pension Scheme (PCSPS).
Action: This Notice will be of particular interest to:
- Employers and their payroll providers
- Employers must let their payroll providers know the new ASLC salary bands.
Timing
The new ASLC salary bands take effect from 1 April 2004 but payroll providers should be notified now.
Background
- ASLCs are the contributions paid by employers to the Cabinet Office: Civil Superannuation Vote every month to provide pension cover for their staff who are members of the PCSPS. The table below shows the annual full-time salary band used to determine the appropriate band of charge for each scheme member, expressed as a percentage. It is important that the full and correct ASLC, together with the member’s contribution, is paid on time for every scheme member. On time means by the 15th calendar day of the month following the pay run. For example pension contributions in respect of salary paid on 31 October have to paid over by no later than 15 November.
New Salary Bands
- The new salary bands, to be applied from 1 April 2004, are:
| |
New salary band |
New salary band |
| Band 1 |
£17,500 and under |
12.0% |
| Band 2 |
£17,501 to £36,000 |
13.5% |
| Band 3 |
£36,001 to £62,000 |
16.5% |
| Band 4 |
£62,001 and over |
18.5% |
| |
Prison Officers with reserved rights (pre-Fresh Start) |
20.5% |
The salary bands have been revalorised to maintain the average rate of ASLCs as a percentage of pay bills at the present level.
The mini-ASLC for the provision of risk benefits to those opting for partnership pension account arrangements remains at 0.8%.
Scheme Valuation
- The rates of ASLC payable (as distinct from the salary bands which apply) are set periodically following a scheme valuation. The scheme actuary, Hewitt Bacon and Woodrow is currently conducting a valuation of the PCSPS. Such valuations have previously been triennial but we are now moving to quadrennial cycle. Quadrennial reviews provide a better fit with the PES cycle, and have been endorsed by FRAB (the financial reporting and accountancy board) for FRS17 purposes. Revised rates of charge, following the current valuation, will be payable from 1 April 2005. The valuation has not been completed and there will be full consultation with employers, later this year, before decisions on revised rates of charge are taken.
Contacts:
Enquiries about content:
Employer Helpdesk
employerhelpdesk@cabinet-office.x.gsi.gov.uk
01256 846414
Enquiries about distribution of EPNs:
Judith Hornby
judith.hornby@cabinet-office.x.gsi.gov.uk
01256 846271
