Business Services Organisation
Below you will find the employer technical update, released in December 2024. You can access a downloadable/printable version here.
Contents:
1. Executive Summary
2. Pension Flexibilities – Overview
3. 16 Hour Rule
4. Re-joining the HSC Pension Scheme (Post Retirement)
5. Partial Retirement
6. Pension Recycling
7. CETV’s for Disclosure
8. Backdated Pay Awards – Partial Retirement
9. Submission of Pension Applications – McCloud Ruling
10. HSC Pension Service has moved
11. Contact Us
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Executive Summary
The purpose of this Employer Technical Update (ETU) is to inform employers and other stakeholders of important changes to the rules and regulations governing the HSC Pension Scheme.
The ETU provides details on the implementation of Pension Flexibilities as amended in the scheme regulations. This includes the go-live of Partial Retirement for members who have accrued benefits in the legacy 1995 scheme, amendment of the Partial Retirement regulations for 2008 & 2015 scheme membership and the introduction of pension contributions re-cycling scheme.
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Pension Flexibilities - Overview
Following a consultation conducted by the Department of Health (DoH) The HSC Pension Scheme Regulations changed from 01st April 2024 to provide additional flexibilities for scheme members to build up and access their HSC Pension Scheme Benefits. The DOH has acknowledged that retirement today is often a gradual process over many years, rather than a hard cliff edge.
DOH are aware that staff value the ability to retire flexibly, in a way that suits their work/life balance. The retirement flexibilities have therefore been designed to offer staff increased options at the end of their careers, so that they can partially retire or return to work seamlessly and continue building pension after retirement if they wish to do so.
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16 Hour Rule
Previously members who claimed their pension benefits and then returned to work could only work a maximum of 16 hours per week in their first month back without impacting their pension.
This rule has been permanently removed from 01 April 2024, allowing staff to maximise the hours they contribute, if they wish, without impacting their pension after they claim their benefits.
Members who fully retire and return to HSC employment must still adhere to the 24-hour break
rule.Action for Employer: Please ensure all HR Staff are made aware of this permanent change.
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Re-joining the HSC Pension Scheme (Post Retirement)
Previously members who claimed their 1995 Section benefits were not permitted to build up further pension in the 2015 Scheme if they return to work in the HSC.
The Health and Personal Social Services (Superannuation) Regulations (Northern Ireland) 1995 have been amended from 01/04/2024 to allow members who claimed their 1995 Section benefits to continue to build up pension in the 2015 Scheme, if they wish. This may help some retired staff to bridge the gap between claiming their HSC pension benefits and receiving their State Pension.
- New re-employed pensioners will be automatically enrolled in the 2015 HSC Pension Scheme
- Previous re-employed pensioners who have not yet re-joined the HSC Pension Scheme are not permitted to backdate any application for scheme membership*. The scheme regulations are clear on this rule. Previous re-employed pensioners who now wish to re-join the 2015 Scheme will be become active members from the first day of the first pay period after the re-joiner form is received
*Information on the availability for re-employed 1995 Section Retirees to re-join the HSC Pension Scheme from 01 April 2024 was made available in March 2024 newsletters and on the HSC Pension Scheme Website.
Action for Employers: Please ensure all re-employed 1995 Section members are aware of this change. Also ensure all HR/Payroll staff involved in enrolling members into the scheme are aware of the change.
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Partial Retirement
The Health and Social Services (Superannuation) Regulations (Northern Ireland) 1995 have been amended to allow members to partially retire and claim up to 100% of their 1995 Section benefits, whilst continuing to work and accrue further pension in the 2015 Scheme.
It is hoped partial retirement will better support members’ work/life balance and may also help the HSC to retain valued experienced staff in the workforce, as members may wish to partially retire and work longer than they had previously planned.
Guidance for employers and members, including calculators, the application criteria and forms for completion are available on the HSC Pension Scheme website here.
HSC Pension Service have also worked with Trust & Regional Orgs HR Teams to facilitate workshops and seminars for both Members and Managers to provide guidance and understanding of this change in regulations. Such workshops have gone live from 02/12/2024 and will initially run until 31/03/2025 when a review will take place to ascertain if resources permit these to continue.
Important: Whilst members can apply to take partial retirement, members must be made aware that due to resourcing issues HSC Pension Service remain limited in the number of applications we can calculate and pay benefits to each month. Applications that need to be backdated to a chosen retirement date will include arrears owing
Action for Employers: Please ensure all staff including those who administer retirement applications in your organisation are aware of this amendment to the scheme and the possible delays in processing Partial Retirement Pension applications.
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Pension Recycling
Whilst it is widely acknowledged that for most employees, it will likely be in their best financial interests to remain in the HSC Scheme, current active members of the HSC Pension Scheme who can demonstrate that they will be affected by annual allowance (AA) in respect of their pension savings can opt out of the HSC Pension Scheme and apply to their employer to be paid an alternative payment. The alternative payment will be paid in the event of an approved alternative application.
Further information can be found at Partial Retirement (Pension) Flexibilities | HSC Pension Service
Action for Employers: Please ensure all staff are informed of this policy
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CETV's for Disclosure
DoH should have by now have issued the circular which provides guidance and actions for obtaining the information in relation to Senior Management disclosures and Cash Equivalent Transfer Values (CETVs) as required for 2024-25 Annual Report and Accounts.
All requests for CETV information must be received by HSC Pension Service no later than Monday 6th January 2025.
Due to severe resourcing issues, any late or amended submissions received after 6th January 2025 will be incur the HSC Pension Service standard charge for the provision of urgent CETV information. This charge is £408.00 plus VAT per individual CETV and must be paid at the time of the late or amended submission. It is therefore imperative, that your organisation submits the full comprehensive pro-forma (which was included in the circular) to HSC Pension Service by the due date Monday 6 January 2025.
Action for Employers: Ensure staff who manage the submission of requests for Cash Equivalent Transfer Values (CETVs) for disclosure are aware of the closing date for submissions and potential costs for late or amended submissions.
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Backdated Pay Awards - Partial Retirement
Backdated annual pay awards, or pay increases members received as they move through pay scales, do not count towards the reduction in pay that they have taken for partial retirement purposes. However, any pay increase resulting from a contractual change to their terms and conditions will count towards this.
For example, if a member decides to apply for a different job with a higher salary, increase their hours or increase their commitments, this will affect the reduction and could result in the pension being fully abated.
Action for Employers: Not Applicable – For information only
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Submission of Pension Applications - McCloud Ruling
As a result of the McCloud Remedy, HSC Pension Service must add an additional number of steps to the process of calculating and paying HSC Pension Benefits to Scheme members.
In accordance with the remedy, all affected retirees must be furnished with a Remedial Service Statement (RSS) which provides detailed information relating to benefit accrual during the remedy period, i.e. 01/04/2015 to 31/03/2022 or part thereof. This is commonly referred to as their McCloud Choice Statement.
Members have a statutory time limit of 3 months to return their choice on how they wish to claim the said benefits for the remedy period, after which, if no response is received they will be automatically awarded benefits from the legacy scheme for the remedy period.
It is therefore imperative, that as a result of these additional steps and statutory timeframes for members to make their choice, HSC Pension Service must increase the lead in time for the receipt of pension benefit applications to 6 months.
This will allow HSC Pension Service sufficient time to:
- Review the application for completeness
- Calculate pensionable pay figures for all relevant schemes including reformed and legacy
- Calculate up to 4 possible benefit forecasts for members to consider when making their choice
- Issue RSS to members electronic or home address
- Provide members with the statutory 3-month period to make and return their choice
- Monitor, document and record choice statement returns
- Calculate actual benefits based on the choice
- Put benefits into payment in accordance with SLA’s
HSC Pension Service have been informing attendees at Pension Workshops and Seminars of this change in procedure, we have also included notification in the Member Newsletter and at the HSC Pension Scheme Employer Forum.
Action for Employers: Please ensure this message is provided to all scheme members and those members of staff in your organisation who process HSC Pension Scheme retirement applications.
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HSC Pension Service has moved
HSC Pension Service, having spent the last 30+ years in Waterside House has now moved to new premises in Orchard House in the city centre. As such all correspondence which holds the old address will need to be amended to show the new address below.
HSC Pension Service
Orchard House
40 Foyle Street
L’Derry
BT48 6ATAction for Employers: Please amend all letters, forms, website info etc. to reflect the new address.
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Contact Us
By writing to us at:-
HSC Pension Service
Orchard House
40 Foyle Street
Derry
BT48 6ATBy Telephone: 028 7131 9111
10.00 am to 12.00pm / 2.00 pm to 4.00pm – Monday to Thursday 10.00 am to 12.00pm – Friday
Find Us on X – @hscpensions
Find us on Facebook – HSC Pension Service