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WIFI Code: WIFI Guest - welcome2

Welcome IMPORTANT - Housekeeping Notice: 1) Fire Alarms / Fire Exit 2) Toilets 3) Please turn Mobile Phones to SILENT  Session slides will be circulated on email to ALL attendees.  Annual Consultative Meeting (ACM) will commence at 11.45pm.  Lunch will be served at 1.00pm.

Content 1) End of Year Review 2014 / 2015 2) Actuarial Valuation 2016 3) Ceasing of National Insurance (N.I.) Rebate 4) Auto Enrolment (Re-enrolment) 5) LGPS Regulation Update 6) Administration Issues 7) My Pension Online (MPO)

End of Year Review - 2014 / 2015  Introduction of new Career Average scheme brought about significant changes to the requirements of the Annual Benefit Statements and the End of Year (EOY) process. 1) Contpost (NEWCTD) Interface file 2) Career Average Revalued Earnings (CARE) Interface file 3) Additional Pension Contributions (APC) file  EOY information circulated via email on: - 25th September 2014 (3 files & notes of guidance) - 14th November 2014 (updated notes of guidance) - 9th March 2015 (deadline given - 17th April 2015) - 27th March 2015 (further guidance)

End of Year Review - 2014 / 2015  In preparation for the EOY process, request made on 25th September 2014 to submit a dummy CARE file (File 2) for the period from 1st April 2014 to 30th September 2014 by 31st October 2014.  Fewer than 20% of Employers participated!  Very few files were returned by the ACTUAL deadline: 17th April 2015!  Majority of files were returned AFTER 30th April 2015!  Data quality was poor; as most files contained Errors!  Causing significant delays in the process!

End of Year Review - 2014 / 2015  Statutory requirement to issue Annual Benefit Statements by 31st August 2015.  Data was due to be sent to the Printer on 31th July 2015, whereas it was eventually sent on 21st August 2015!  Statements uploaded to My Pension Online on 28th August 2015.  Hard copies despatched to MPO non-users W/C 7th September 2015! The Pensions Regulator (TPR) has been formally notified of this breach. TPR decided NOT to impose any Financial Penalty this year, as it is the first EOY return following the introduction of the New Scheme on 1st April 2014.

End of Year Review - 2014 / 2015  Common Errors: TOTAL Pension Contributions paid on File 1 (Column K) did not balance with the TOTAL member contributions paid to the Dyfed Pension Fund from the 1st April 2014 to 31st March 2015. It is YOUR responsibility to ensure that this file is balanced before you submit. Pension Contributions Paid on File 1 (Column K) did not tally with the LGPS MAIN Pensionable Pay on File 2 (Column H) i.e. the actual pensionable pay received during the Scheme Year.

End of Year Review - Common Errors Pensionable Remuneration Amount on File 1 (Column AB) should ALSO include any additional elements of pensionable pay (Pre 2014 definition). For Starters / Leavers during the Scheme Year, the ‘From Date / To Date’ on File 2 (Columns F/G) did not match with the ‘date’ given on the Starter / Termination form. Unless a member has opted in, the ‘From Date’ should to be the member’s date of commencement, NOT the Payroll period start date. For Leavers during the Scheme Year, some of the data provided did not match with that given on the Termination form i.e. the contributions, National Insurance (N.I.) earnings and actual pensionable pay (File 2). N.I. Earnings on File 1 (Column L) calculated incorrectly. (See Appendix 1).

End of Year Review - Common Errors Multiple Employments. On both Files 1 & 2, separate entries should be made for EACH pensionable employment. Each pensionable employment should have its own ‘unique reference’. LGPS MAIN Pensionable Pay on File 2 (Column H) did NOT include Assumed Pensionable Pay (APP) for members on reduced pay, due to sickness or child related leave. File 3 (APC) - a separate entry MUST be made per APC contract (mainly in respect of ‘lost pension’ cases).

End of Year Review - Common Errors Format of Files should NOT be changed, as the format is specifically set to the requirements of the ALTAIR pension administration system. ‘Empty Columns’ should NOT be deleted. NO use of ‘Symbols’, such as £ or % signs. DO NOT attach any ‘Comments’ to the cells within the files.

Use of Assumed Pensionable Pay (APP)  Where a member has received reduced / no pay during the Scheme Year i.e. 1st April to 31st March, due to sickness or child related leave, the LGPS MAIN pensionable pay on FILE 2 (Column H) will be less as a result.  Due to the reduced pensionable pay, a member’s pension build will be less for that year! I.e. 1/49th x reduced pensionable pay!  In accordance with scheme regulations, a member’s pension should NOT suffer any loss due to sickness / child related leave.  APP figure should be used to calculate the pensionable pay during a period of reduced / no pay.  APP is calculated by taking an average of the pensionable pay received in the 3 complete months before the period of reduced / no pay.

APP Example (FILE 2) Period Pensionable Pay 01.04.2014 to 30.06.2014 £30,000 ÷ 12 = £2,500 x 3 months = £7,500 01.07.2014 to 15.07.2014 £2,500 / 31 x 15 days = £1,209 16.07.2014 to 31.07.2014 (Half Pay) £2,500 / 31 x 16 days = £1,290 x 50% = £645 01.08.2014 to 31.12.2014 (Half Pay) £2,500 x 5 months = £12,500 x 50% = £6,250 01.01.2015 to 15.01.2015 (Half Pay) £2,500 / 31 x 15 days = £1,209 x 50% = £605 16.01.2015 to 31.01.2015 £2,500 / 31 x 16 days = £1,290 01.02.2015 to 31.03.2015 £2,500 x 2 months = £5,000 ACTUAL Pensionable Pay: £22,499 ( / 49 = £459)

Calculating the APP  Due to the period of reduced pay, the APP must be calculated using the 3 complete months prior to commencement of half pay and then applied to the reduced pay period - 16.07.2014 to 15.01.2015.  Pensionable Pay received between 01.04.2014 to 30.06.2014: - £2,500 (April 2014) - £2,500 (May 2014) - £2,500 (June 2014) £7,500 ÷ 3 months = £2,500 a month (APP)

Applying the APP (FILE 2) Period Pensionable Pay 01.04.2014 to 30.06.2014 £30,000 ÷ 12 = £2,500 x 3 months = £7,500 01.07.2014 to 15.07.2014 £2,500 / 31 x 15 days = £1,209 16.07.2014 to 31.07.2014 (Half Pay) £2,500 (APP) / 31 x 16 days = £1,290 01.08.2014 to 31.12.2014 (Half Pay) £2,500 (APP) x 5 months = £12,500 01.01.2015 to 15.01.2015 (Half Pay) £2,500 (APP) / 31 x 15 days = £1,209 16.01.2015 to 31.01.2015 £2,500 / 31 x 16 days = £1,290 01.02.2015 to 31.03.2015 £2,500 x 2 months = £5,000 Pensionable Pay Inc. of APP (File 2): £30,000 CARE Pension build up: 1/49 x £30,000 = £612

Actuarial Valuation (as at 31st March 2016)  Statutory requirement for a Valuation to be carried out every 3 years (as at 31 March).  Undertaken by the Fund’s Actuary to determine ( as at the valuation date): - the expected cost of providing the benefits built up by members (the liabilities) against the investment funds held by the Fund (the assets) - is there a surplus or deficit? - an appropriate plan for making up the shortfall, if the Fund’s assets are less than its liabilities; - the contributions needed to cover the cost of the benefits that active members will build up in the future and other costs incurred in the running of the Fund (employer rates and Past Service Deficit (PSD) payments).

Actuarial Valuation (as at 31st March 2016)  Actuarial Valuation Report is normally released towards the end of January (after 31st March) and will contain our funding level and your Employer rates / PSD payments, payable from 1st April 2018.  Statutory Deadlines:  Data to Government Actuary’s Department (GAD) by 30th June 2016  Data to the Actuary by 31st July 2016  Annual Benefit Statements to members by 31st August 2016  Your data MUST be up to date and accurate, so that the Actuary is able to make an accurate assessment of your liabilities.

Actuarial Valuation (as at 31st March 2016)  Consequences of untimely, late submission of data: Late submission of data to Actuary. Late release of Actuarial Valuation Report. Late submission of ABS.  Preparation for End of Year exercise 2015 / 2016: - Notes of Guidance - Meetings / Workshops - Data Validation / Matching exercise: (Starters / Leavers / Changes / Absences) - ANY SUGGESTIONS?

End Of Year (EOY) 2015 / 2016  Validate your Data NOW: - Starters / Leavers - Change of Circumstance information - Reduced / No Pay absences  Perform EOY exercise immediately after payroll year-end?  Balance TOTAL Contributions on File 1 against your annual Remittance and submit the new Contribution Reconciliation Declaration form.  Ensure that member’s Contributions on File 1 agree with the LGPS MAIN pensionable pay on File 2.  Remember NOT to amend the format or layout of the Files.