Pensions
contracts in the scheme. The part-time position is no longer pensionable in the local government pension scheme because it’ll be eligible in the TPS. And then there’s McCloud! If you’re planning to retire before 1 April 2022, you’re invited to retire as normal, as the choice for the remedy period service will be provided retrospectively. The remedy period is the period of service affected, which is between 1 April 2015 and 31 March 2022. What does this mean for impacted employers? So, what does this mean for employers participating in TPS? This focuses on how change is implemented through the ‘member contributions reconciliation’ (MCR). Two thirds of employers are looking for onboarding of these changes in a short window between February and April. TPS recognises this is too short a timeframe and is looking to spread the onboarding beyond April. The TPS is asking for a two-way dialogue with employers, confirming where
employers are, how automated they will be and when they realistically expect to come onboard. A growing number of private schools are leaving the teachers’ pension scheme after the government raised the rate of employers’ contributions by 43% in 2019 The MCR solutions are being developed by independent software houses, and many employers are complaining the additional resources needed to run the software as delivered are not available. The software providers complain employers don’t all do things the same way and that TPS has many eccentricities,
So many employers are saying that, as they don’t know when software providers will provide an acceptable solution, they can’t commit to an onboarding date Trouble looming at independent girls’ schools A growing number of private schools are leaving TPS, after the government raised the rate of employers’ contributions by 43% in 2019. This meant an increase from 16.48% to 23.68% of teachers’ salaries. State schools were covered for the increase, but private schools weren’t. Now, one of the teachers’ unions – the National Education Union, has organised teachers within the Girls’ Day School Trust (GDST) to go on strike against plans to switch to a defined contribution of 20% of teachers’ salaries. It's taken three years for the GDST to put these proposals forward, and this shows the long lag between the implementation of change and its full impact. While contributions impact the pocket today, changes in accrual will last a lifetime. The impact of the changes to the TPS in April 2022 will take significantly longer to be realised. n
which means a ‘push button – fully automated’ solution won’t arrive.
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| Professional in Payroll, Pensions and Reward |
Issue 79 | April 2022
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