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1.1 About this Guide
The purpose of this guide is to provide a simple yet instructive journey through the features of the HSC Pension Scheme. HSC Pension Service hopes that you will find this guide useful and easy to use. With that in mind, we have tried to make both finding the information that you want and navigation as simple as possible. Each section is aimed at dealing with specific pension events. An electronic version of this guide is available on the Scheme Website.
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1.2 About HSC Pension Service
HSC Pension Service is a unit within the Business Services Organisation. It previously fell under the umbrella of the Department of Health & Social Services and Public Safety (DHSSPS). It employs 98 staff and is located in Waterside House, Derry.
HSC Pension Service administers the 1995/2008 sections and the 2015 HSC Pension Scheme. The Schemes are governed by regulations produced by the DHSSPS and copies can be accessed on the Scheme website at HSC Pension Scheme Regulations.
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1.3 HSC Pension Service - Aims and Objectives
Key aims
- to administer, HSC Pension Schemes in order to provide an efficient and effective service for the benefit of those members who use the schemes at an economic cost to the public purse
- to prepare in accordance with government policy, policies and procedures governing the schemes
Key objectives
- to provide a timely, accurate and helpful service to members of the schemes and other employees who may be entitled to benefits e.g.: Injury Benefits, administered by HSC Pension Service, and their employers
- to collect and pay, promptly and accurately, sums due under these schemes, and to arrange for their proper accounting and budgeting
- to publish timely and accurate information about changes to scheme policies and regulations to employers and other bodies administering schemes regulated by HSC Pension Scheme
- to provide value for money in delivering cost effective service
- to reduce over time the ratio of running costs to case-load
Key responsibilities
All employers and pension scheme administrators who provide an occupational pension scheme for an employee have responsibilities under the Pensions Act 1995 and The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 (see www.opsi.gov.uk).
HSC Pension Service’s operational responsibilities are to:
- maintain accurate and up to date records for scheme members and pensioners based on information provided by employers
- determine the day to day operational policy for running the scheme
- award timely and accurate benefits under the HSC Pension Scheme
- ensure that Employing Authorities make timely and accurate payments of employers’ and employees’ contributions to the HSC Pension Scheme and maintain and implement such information and other systems as may be necessary to fulfil these functions
- preserve benefits for early leavers
- provide estimates of benefits entitlement on a regular basis in line with Public Service Pensions Act (Northern Ireland) 2014 and The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014
- pay transfer values for members moving out of the scheme and receive payments for people transferring into the sche
- pay refunds of contributions in line with current regulations
- process applications to purchase additional benefits under the scheme
- publicise the scheme and encourage awareness among HSC employers and HSC employees about the scheme and the benefits available
- to maintain a continually mutually beneficial working relationship with HSC employers and to assist them in their duties
- to adhere to agreed time limits
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1.4 About the HSC Pension Scheme
The scheme is a statutory occupational pension scheme. It is a defined benefit scheme and is based on membership during HSC employment and transfer values into the Scheme. Employing authorities are obliged to offer the scheme to all eligible employees they employ.
The HSC Pension Scheme was reformed in line with UK Pension Reforms, on the 1 April 2008. Members who were in the Scheme prior to 1 April 2008 are subject to updated arrangements. This is referred to as the 1995 section.
Those joining the scheme for the first time on or after 1 April 2008 are subject to different arrangements. This is referred to as the 2008 section.
Active members of the 1995 section were also given a one off choice to move to the 2008 Section. This was known as the ‘Choice’ exercise and took place in 2009. As a result of further Pension Reforms and the introduction of the 2015 Scheme a second choice exercise will be run in the autumn 2016.
Brief overview of the benefits for members on joining the pension scheme
Benefits for 1995 section members
- normal pension age (NPA) of 60 for most members (55 for members of special classes and Mental Health Officers (MHOs))
- a retirement pension based on 1/80th of pensionable pay per year of service based on the best of the last 3 years pensionable pay before retirement
- normally, a tax free retirement lump sum of 3 x pension with the option to give up part of the pension for a lump sum up to 25% of pension value (Commutation).
- preserved benefits if leaving pensionable employment before age 60 without being entitled to an immediate pension and at least 2 years qualifying service has accrued
Benefits for 2008 section members
- normal pension age of 65 for all members
- no special class/MHO retirements rights apply
- a retirement pension based on 1/60th of pensionable pay per year of service. Pension will be calculated on the basis of the average of the best 3 consecutive year’s pensionable pay out of the last 10 years before retirement.
- option to exchange part of pension benefits for cash lump sum at retirement, up to 25% of overall pension value (Commutation)
- preserved benefits if leaving pensionable employment before NPA without being entitled to an immediate person and if at least 2 years qualifying service is accrued.
- option to take Partial Retirement and continue to accrue further pension
Benefits for 2015 section members
- normal pension age linked to member’s State Pension Age
- no special class/MHO retirement rights apply
- a retirement pension based on 1/54th of pensionable pay per year of service. Pension will be revalued on an annual basis by CPI + 1.5%
- option to exchange part of pension benefits for cash lump sum at retirement, up to 25% of overall pension value (Commutation)
- preserved benefits if leaving pensionable employment before NPA without being entitled to an immediate pension and if at least 2 years qualifying service is accrued
- option to take Partial Retirement and continue to accrue further pension
Common to all sections
- life insurance of 2 years pensionable pay if still in pensionable employment at date of death
- pension and allowances for a legal spouse, registered civil partner or surviving partner from the date of death. Dependant children’s pensions are payable until age 23 or longer depending on certain circumstances
- benefits if retiring because of permanent ill-health
- benefits if retiring early
- options to increase contributions to increase benefits.
- pensions and allowances are index linked
- pension benefits can be transferred in to and out of the scheme
- new tiered contribution rates directly linked to individual earnings for a fairer way to fund new benefits and future costs
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1.5 Employer Responsibilities
All employers and pension scheme administrators who provide an occupational pension scheme for employees have responsibilities under the Pensions Act 1995 and The Occupational Pension Schemes (Disclosure of Information) Regulations 1996.
The HSC Pension Scheme is administered by the HSC Pension Service. The Regulations, however, also place certain obligations on employers and specifically require employers to fulfil certain functions. A copy of the Scheme Regulations can be found on the Scheme website.
Main responsibilities
- to maintain a continuing mutually beneficial working relationship with HSC Pension Service and to assist them in their duties.
- to assess and collect employer and employee pension contributions in an accurate manner.
- to make payment to the HSC Pension Service of employer and employee pension contributions at the correct rate and in a timely manner.
- to maintain accurate employment records for all scheme members and submit these records to the HSC Pension Service in a timely manner.
- to pay initial widows/widower’s/partners pensions which are later reclaimed from HSC Pension Service.
- to forward applications and related documentation to the HSC Pension Service within specified time scales.
- to provide a timely and accurate service to all employees in relation to scheme benefits by the provision of ongoing guidance and information.
- to comply with the requirements of the Contracts of Employment Act relating to Pensions.
- to adhere to agreed time limits.
Additional Information for Employers
Employers should ensure that all employees concerned with administering the HSC Pension Scheme are fully aware of their obligations. They should furthermore have access to this guide via the HSC Pension Service website. All circulars/ETU’s can also be accessed via our website.
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1.6 Financial Advice, Data Protection and Freedom of Information
Financial Advice
The Finance and Markets Act 2000 (see www.opsi.gov.uk) requires persons giving financial investment advice to be registered and to be accountable for any advice they give.
HSC Pension Service employees have been informed that, when answering pension enquiries, they should not attempt to offer advice about the comparable merits of the Scheme and any other pension provision.
If employers are approached by members who appear to be seeking financial advice on the various options open to them, they should be informed that neither the employer nor HSC Pension Service is empowered to give such advice, but that they may contact an Independent Financial Adviser (IFA) who is registered under the above Act.
Data Protection Act
The Data Protection Act 1998 (see www.opsi.gov.uk) provides an individual (i.e. person) who is the subject of computerised personal data with a right of access to that data. An individual is also entitled to receive an explanation of any unintelligible terms forming part of the data. This right of access may be exercised by a request in writing to HSC Pension Service.
Freedom of Information
The Freedom of Information Act 2000 (see www.opsi.gov.uk) came into force on 1st January 2005, allowing everyone to have access to information held by public authorities, including the HSC Pension Service. Any enquiries relating to pensions information from members or their agents should be directed to HSC Pension Service.
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1.7 Third Party Information and Disputes
The Occupational Pensions Board (OPB)
Pension scheme members should be given details of the bodies that exist to help them in the case of difficulty in tracing their former pension arrangements. To this end, the Occupational Pensions Board has been appointed Registrar of Occupational and Personal Pension Schemes.
The Registrar principally provides a tracing service so that people can keep track of their former pension arrangements as they move jobs.
Any member wishing to use this service should contact:
The Pension Tracing Service
Whitley Road
Newcastle-Upon-Tyne NE98 1BA
Tel: +44(0)845 6002 537
http://www.direct.gov.uk/en/Pensionsandretirementplanning/Companyandpersonalpensions/DG_100 27189
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1.8 Complaints and Internal Dispute Resolution Procedures
If a member has a complaint, please tell us. If we have made a mistake, we will apologise and put things right as quickly as possible. HSC Pension Service will try to resolve complaints within 20 working days.
If the member is not satisfied, we have a disputes procedure which complies with pension legislation and Citizen’s Charter guidelines. This is a staged process, the first of which asks the member to write to the Scheme Manager who will try to resolve their dispute and respond to it within 2 months. A member is entitled to have their case looked at a second time if they are dissatisfied with the review decision. If they want to do this, they must apply within six months of the date of the Stage 1 appeal. The second review will be carried out by a Scheme Manager who is required by law to reply within two months or tell the member if they are unable to do so. Again we will keep the member informed of progress. This is a Stage 2 IDR.
If the member is still not satisfied, they can get advice from the Pensions Advisory Service (TPAS). They can be contacted at:
The Pension Advisory Service (TPAS)
10 South Colonnade
Canary Wharf
London E14 4PU
Tel: 0800 011 3797
www.thepensionsadvisoryservice.org.uk
Finally the member may take their case to the Pensions Ombudsman (PO)
The Ombudsman expects complainants to have consulted TPAS first. They give free help and advice to people who have problems with occupational or personal pensions.
The Pensions Ombudsman can be contacted at:
The Pensions Ombudsman
10 South Colonnade
Canary Wharf
London E14 4PU
Tel: 0800 011 3797