Business Services Organisation
This Technical Update contains information regarding:
- Foreword
- McCloud Project Update
- McCloud Remedy Affected Member Warning
- Department of Finance Consultation – Employer Cost Cap
- Applications for Consideration for Ill Health Retirement – Update
- Contact Us
This information is available in a downloadable/printable format here.
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Foreword
This Employer Technical Update (ETU) provides you with an update on the latest position of the HSC Pension Scheme McCloud Remedy Project plus concerns raised by HM Treasury (HMT) on possible risks for members from private companies “offering assistance” in managing members affairs in relation to the remedy.
The Department of Finance (DoF) are consulting on Public Service Pensions Valuations and Cost Cap Directions/Regulations. Details of the consultation and how to respond are included in this ETU.
Progress has been made by HSC Pension Service in addressing the current delays applicants are facing when applying for consideration for Ill Health Retirement. Further details of the plan to target outstanding cases is provided.
HSC Pension Service has completed its annual report for submission to the HSC Pension Board. A summary of the report plus links to the full document are provided in this ETU.
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McCloud Project Update
HSC Pension Service continues with preparations to address the legislative changes to be implemented as a result of the McCloud remedy.
To date almost 80% of the new staff required to implement the project have been recruited and are going through their initial training stages. The remaining staff will be recruited and in post in the coming weeks/months.
Engagement with fellow Public Sector Pension Scheme Administrators in NI and GB is ongoing as is collaboration with the Government Actuaries Department, HMRC and our Software Supplier, Heywood Pension Technologies.
Workshops for Scheme members to inform them of the impact of the McCloud Remedy continue to be rolled out across Trusts and Regional Organisations. Dates and booking can be accessed through the HR Department of each Organisation.
Engagement with employers continues, including discussions on potential changes to processes such as the Retirement Application Procedure. As a result of the remedy additional steps must be added to the retirement process which will require a longer lead in period
Action for Employers: Continuous engagement with HSC Pension Service
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McCloud Remedy Affected Member Warning
An emerging issue was raised with the Cross Whitehall Public Service Pension Schemes Communications Group concerning some private companies offering services to public service pension scheme members to secure McCloud related compensation and also Remedial Service Statement (RSS) information for those affected by the remedy.
HMT expressed the view, that this contains potential risks for scheme members. We will circulate further communications on this issue when received from HMT.
Action for Employers: Any such approaches reported by staff should be shared with HSC Pension Service for reporting to the Northern Ireland Public Service Pension Group (NIPSPG)
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Department of Finance Consultation - Employer Cost Cap
In accordance with the requirements of Section 11(5) and Section 12(10) of the Public Service Pensions Act (Northern Ireland) 2014 the Department of Finance and Personnel (the Department) is consulting with representatives of public service employees on draft Public Service Pensions (Valuations and Employer Cost Cap) Directions (‘the Directions’), and on a draft of the Public Service Pensions (Employer Cost Cap) Regulations (‘the Regulations’).
Actuarial valuations are carried out to establish the costs of the public service pension schemes. These valuations are then used to determine the contribution rates to be paid by employers participating in the schemes. As the majority of the public service pension schemes are unfunded, the payment of employer contributions ensures that the full costs of employing and remunerating staff are accounted for by public service employers.
The consultation including FAQ’s and details on how to respond can be accessed here.
Action for Employers: Share details of the consultation with relevant staff
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Applications for Consideration for Ill Health Retirement - Update
HSC Pension Service (HSCPS) has been working with the Northern Ireland Civil Service OHS Team plus other parties in an attempt to address the delays in processing applications for consideration for Ill Health Retirement for scheme members.
Unfortunately, resource issues still persist with NICS OHS and as such HSCPS has secured the services of another provider with whom referrals for consideration for Ill Health Retirement have commenced. Whilst it is acknowledged that there is a considerable backlog of cases, we shall prioritise those cases which are longest on the waiting list. The majority of these cases should be addressed by the end of August 2023.
HSC Pension Service are in the process of writing to all applicants to inform them of the current position and confirming our reassurance to address the issue as soon as possible.
Action for Employers: None, but advisable to maintain continuous engagement with HSC Pension Service.
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Contact Us
By writing to us at:-
HSC Pension Service
Waterside House
75 Duke Street
Londonderry
BT47 6FP
By Telephone: 028 7131 911110.00 am to 12.00pm / 2.00 pm to 4.00pm – Monday to Thursday
10.00 am to 12.00pm – Friday
Find us on Twitter – @hscpensions
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