Local democracy

Agenda item

MEMBER EARLY RETIREMENT PENSION ESTIMATES

The report of the Director, West Yorkshire Pension Board, (Document “N”) is presented in response to a Member of the WYPF Pension Board requesting that an item be included on the agenda to address the following statement – “the removal of estimates for members who are aged 55 and above, which are no longer available on request, is proving problematic for members”. 

 

Recommended –

 

That the WYPF Pension Board:-

 

·         acknowledge the workload caused by requests for early retirement pension estimates following changes to the pension regulations

·         acknowledge the changes being implemented to the process for dealing with estimate requests

·         notes the comprehensive information in the Annual Benefit Statements (ABS) which will go to all members next quarter

·         and welcomes the planned review of working practices after the ABS exercise is completed.

 

(Grace Kitchen – 01274 434266)

Minutes:

The report of the Director, West Yorkshire Pension Board, (Document “N”) was presented in response to a Member of the WYPF Pension Board requesting that an item be included on the agenda to address the following statement – “the removal of estimates for members who are aged 55 and above, which are no longer available on request, is proving problematic for members.

 

Members were advised that WYPF had revised the working practices surrounding the provision of early retirement estimates, specifically, to enable priority to be given to those members who were intending to retire immediately, as opposed to those who had no immediate plans to retire. 

 

It was explained that the need for the revision had arisen because of the change in the pension regulations in April 2014 which allowed members to take reduced retirement benefits from age 55.  Amendments were needed to some functions of the pensions’ administration system to accommodate the change, meaning employers were unable to produce their own pension estimates through the system. WYPF had always provided all age 65, redundancy and ill health retirement estimates for employers, using accurate pensionable pay provided by the employers.  The changes in the regulations had resulted in a considerable increase in the number of requests from employees for early retirement estimates.

 

It was explained that there were 56,500 people aged over 55 in the WYPF. Consultation had been undertaken with other Pension Funds and it had been established that they had also restricted the estimates provided and some had introduced a charge after one free estimate.

 

In response to questions about the number of requests for figures which resulted in actual retirement it was explained that many deferred members were merely curious to know how much money was in their pension.  There had also been issues with employers requesting estimates for individuals using multiple dates of possible retirement and multiple reasons for retirement.  Some requests were received for dates so far in the future they would be affected by pay awards or annual adjustments and the figures would be inaccurate.  Assurances were provided that if Members were actually retiring accurate figures would be provided. 

 

In response to suggestions that in addition to additional information being provided on the Annual Benefit Statements, the My Pension Website would shortly allow Members to calculate their own pensions.  It was confirmed that a modeller for Members to calculate their own broad estimate was in development, and should reduce the pressure on employers and the fund.

 

Following concerns that some members may not understand the additional information contained on their ABS it was acknowledged that pensions were a complex issue.  Assurances were provided that communications were always produced in plain English and the queries received were analysed to address any issues arising.  

 

Resolved –

 

1.    That the workload caused by requests for early retirement pension estimates following changes to the pension regulations be acknowledged.

 

2.    That the changes being implemented to the process for dealing with estimate requests be acknowledged.

 

3.    That the comprehensive information in the Annual Benefit Statements (ABS) which will go to all members next quarter be noted.

 

4.    That the planned review of working practices after the ABS exercise is completed be welcomed.

ACTION: Director, West Yorkshire Pension Fund

 

Supporting documents: