Latest News on Pensions and Taxation Reforms



Potential Employees' Contribution Rates Rises - Northern Ireland Update To ensure that members have the relevant information on the proposed reforms, we have added a summary of our understanding of the current situation to our website. Click here to view the summary of proposed changes to public sector schemes and employee contribution rates as at 23 December 2011.
Potential Employees' Contribution Rates Rises and Proposed Changes to Public Sector Pension Schemes

On 20 December 2011, Rt. Hon Danny Alexander MP announced that Heads of Agreement have been reached with trades unions on public service pension reform. The full HM Treasury announcement can be viewed at http://www.hm-treasury.gov.uk/press_146_11.htm. Please note that the announcement applies to England and Wales only. The Assembly is responsible for deciding the course of action to be taken in Northern Ireland.

On 2 November 2011, Rt. Hon Danny Alexander MP issued a statement and the Government  issued a paper 'Public Service Pensions: good pensions that last' setting out their views and providing an update on the current state of discussions with pension schemes and trades union. These documents, along with further information on the reforms can be viewed on the HMT website at http://hm-treasury.gov.uk/tax_pensions_index.htm

Rt. Hon Danny Alexander MP issued a statement on 19 July 2011 detailing the Government's plans to consult on proposed employee contribution rates. Click here to read the full statement.

Lord Hutton gave a speech on 23 June 2011 on pension reform in the public services, detailing the reasons reform is necessary and outlining his concerns about employee contribution rises. Click here to read the full speech.

Speech by Rt. Hon Danny Alexander MP on 17 June 2011 on Public Sector Pensions including Proposed Employee Contribution Rates. Click Here

NILGOSC has issued a circular to all employers to advise of a potential increase to employees' contribution rates, proposed by HM Treasury and to be considered by the Assembly.

Click here to view the circular.

The Secretary has written to the Minister for Environment and the Minister for Finance and Personnel to explain the difference between the Local Government Pension Scheme and the other Public Sector Pension Schemes and to outline the effects of such increases.

Click here to view the letter to the Minister of the Environment
Click here to view the letter to the Minister for Finance and Personnel
 


Consultation Document from the Department of Communities and Local Government for the Local Government Pension Scheme in England and Wales - 7 October 2011

The Department of Communities and Local Government for the Local Government Pension Scheme in England and Wales has issued a consultation document today which outlines its proposals on an alternative to the average 3.2% increase to member contributions. Click here to view the document.

Summary of Proposed Changes to Public Sector Pension Schemes and Potential Employees' Contribution Rates Rises at 6 October 2011

NILGOSC is aware that some members may be concerned about proposed changes to public sector pensions, particularly as unions have highlighted this as a main factor in the ballot for strike action.

To ensure that members have the relevant information on the proposed reforms, we have added a summary of our understanding of the current situation to our website. Click here to view the summary of proposed changes to public sector schemes and employee contribution rates.

Pensions Newsletter NILGOSC is issuing a Pensions Newsletter to all active Scheme members, to arrive at their home addresses by 1 April 2011.

Click here to view the newsletter.

Independent Public Sector Pensions Commission Final Report - 10 March 2011 The Commission, led by Lord Hutton, has issued its final report. Click on the link below to view the document.

http://www.hm-treasury.gov.uk/pensionscommission

Ministerial Statement on Meeting Annual Allowance Tax Charges from Pension Benefits - 3 March 2011

Following a consultation on options to manage high annual allowance charges from pension
benefits, the Government has issued a ministerial statement and a summary of responses. 

Click on the links below to view the documents.

http://www.hm-treasury.gov.uk/d/wms_pension_tax_summary_responses030311.pdf

http://www.hm-treasury.gov.uk/d/pensions_benefits030311.pdf

Independent Public Sector Pensions Commission Call for Evidence - NILGOSC Response Issued
15 December 2010

NILGOSC has responded to the Commission's Call for Evidence as required.


Click here to view the letter.

Independent Public Sector Pensions Commission - Call for Evidence for Final Report Issued 1 November 2010

Further to the interim report issued on 7 October 2010, the Commission has asked all Public Sector Pension Schemes to supply additional information before producing a final report.

NILGOSC will respond by 17 December 2010 as required, providing evidence and opinions for consideration in accordance with the Call For Evidence which can be viewed through the link below.

http://www.hm-treasury.gov.uk/d/huttonpensions_finalcallforevidence011109.pdf

Restriction of Pensions Tax Relief – 14 October 2010

The Government has issued its ministerial statement and the Government Actuary’s Department Guidance on the restriction of pensions tax relief. 

In summary:

  • The annual allowance will be reduced to £50,000 from £255,000 with effect from April 2011.
  • The lifetime allowance will be reduced from £1.8m to £1.5m with effect from April 2012.
  • If the tax charge exceeds the annual allowance, a member can carry forward unused allowance from up to three previous years.

Click on the links below to view the statement and related documents, or go to the Member section of our website to see how the changes may affect you.

http://www.hm-treasury.gov.uk/d/restricting_pensions_summary141010.pdf

http://www.hm-treasury.gov.uk/d/wms_pensionstaxrelief_141010.pdf 

http://www.hm-treasury.gov.uk/d/gad_reducingtheannualallowance_141010.pdf

Independent Public Sector Pensions Commission - Interim Report issued 7 October 2010

This Commission was established under Lord Hutton to undertake a review of Public Sector Pensions. The work of the Commission is to make recommendations on how pension schemes can remain affordable, fair and sustainable.

Click here to read the interim report on the Commission’s progress.

Budget Statement of 22 June 2010 - Changes to Pensions Increase

In its budget statement, the Government announced that Public Service Pensions will be reviewed annually in line with increases in the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI). This change will affect annual cost of living increases applied to NILGOSC pensions from April 2011.

This change also affects the factors used for Cash Equivalent Transfer Values (CETVs). We have been instructed to stop processing this type of transfer until new factors are received. 

Click here for more information.