Pension remedy

Annual Benefit Statement - Remedial Service Statement 2024

XPS, NYP's police pension administrator, have been working with all stakeholders with a view to publishing the Annual Benefit Statement (ABS) - Remedial Service Statements (RSS) online to the member self-service portal by no later than 31 August 2024, where possible for eligible members. Further information regarding this can be found at ​www.myownpension.co.uk/police-member within the McCloud Remedy update 4 document.

The Annual Benefit Statement will not be sent through the post and therefore if you have not already signed up to the self-service portal, you are advised to do so. You can access the Member Self Service page on the XPS website - this page includes a video how to guide to sign up for MSS.

The document XPS ABS RSS Member Update.pdf provides a progress update in relation to the provision of Annual Benefit Statements in 2024. Following the Pension remedy changes introduced in October 2023, there are additional legislative requirements associated with the provision of Annual benefit Statements (ABS). The NPCC Pensions Team have recently published new Annual Benefit Statement (ABS) FAQs to further assist with the understanding of ABS.

Contribution Adjustment Process update

Last Wednesday an update on Annual Benefit Statement – Remedial Services Statements (ABS-RSS) was provided with regards to McCloud pension Remedy.

The ABS-RSS shows the position of your pension at 31/03/2024 and also the impact from McCloud pension Remedy.  Within the ABS-RSS are details of the options available to you if you had previously been in the 1987 scheme or the 2006 scheme prior to the 2015 scheme which started on 1 April 2015.

These options are in relation to the contributions you have paid in to the pension scheme over the years and the opportunity you now have to either take contributions out of the scheme or put further contribution in.  Remember these options have only arisen due to the age discrimination that occurred with the introduction of the 2015 scheme and then the McCloud Pension Remedy to rectify the position.

The options available are provided within the ABS-RSS where you can choose to (1) do nothing, (2) pay contributions in or (3) take contribution out.  If you have not yet received your ABS-RSS you cannot make any decision regarding your contribution adjustment and you will need to wait to receive your ABS-RSS.

With regards to choosing the option to pay contribution your adjustment into the scheme the amount of the contribution adjustment payable is included with the ABS-RSS where interest is calculated and accumulated up to 31 August 2024, this is the national approach. Each Scheme Manager within each Force then decides, with their discretion as laid out in regulations, whether further interest should be paid on the contribution adjustment from the member.  This interest would be accrued from 31 August 2024 to when the member makes the decision to pay the contribution adjustment. The regulations specify there is a 12 week period to do this.

The Scheme Manager at NYP has made the decision that interest will NOT be accrued and charged on the payment of the contribution adjustment from the member.

Therefore you have 12 weeks from the date when you receive the ABS-RSS dated 31 August 2024 to decide whether to pay the contribution Adjustment and no interest will be charged.

The Contribution Adjustment process documents on this page provide information, examples and the required forms for members about how contribution adjustments are dealt with. Information on the NPCC website is also available: https://policepensioninfo.co.uk/faqs-remedy/#annual-benefit-statements

If the information you receive on your ABS-RSS is complex and you need to seek advice then the Pension Scheme will consider reimbursing you with the cost of that advice. Further information is available on the NPCC website where NYP Scheme Manager will be following this approach. Information for members about the process, criteria and timescales for making a compensation claim can be found here.

Annual Benefit Statement – Remedial Service Statement (ABS-RSS) 2024

XPS (the pension administrator) have been working closely with NPCC and wider stakeholders on the McCloud Pension Remedy project and had agreed that they would aim to produce ABS RSSs in line with the normal Annual Benefit Statement run by 31 August 2024.

Data from the force was key to allow XPS to complete this task, but alongside that they were also reliant on the software development for the two “new” ABS calculation routines this year.

There are a number of reasons why some members did not receive an ABS, some of which only became apparent when XPS tried to interface the various data files and then run the calculation routine in bulk. Some of the reasons why officers in our force did not receive any form of ABS are as follows:

• Error when interfacing the data on to the members pension scheme record
• An error when trying to roll back a member record
• Normal year end/data errors which XPS encounter every year
• An element of the members data is preventing the calculation routine to work
• Interforce transfer where there may be outstanding information.

There will be two further ABS calculation runs in September to enable XPS to provide an ABS and ABS-RSS to those members who have not received one yet. XPS are aiming to have issued the majority of ABS by the end of September or in the coming weeks. 

NYP payroll and pensions department are working closely with XPS to resolve these issues in a timely manner.

It is important to note that all active members are now in the 2015 schemes and the normal pension age of this scheme is age 60. This is why all ABS-RSS are produced to the age of 60. 60 is the earliest date in relation to the 2015 scheme that you can retire and receive payment of all of your benefits with no reductions. You are still able to receive the payment of your legacy scheme benefits when you originally expected to do so, but this is dependent on age and or service and is a personal choice. Due to the variable nature of retirement dates, it is not possible to adequately choose an optimum date that would be appropriate for all members for purposes of a projection within the ABS, therefore the normal pension age for the current scheme is used.

Further remedy update and news can be obtained on https://policepensioninfo.co.uk/

If you are not currently registered for member self-service, please follow the sign-up process so that you can access your ABS RSS as and when it becomes available to view. Please register using your work email address, where possible so this can be reconciled with data provided by your Scheme Manager.

XPS has published progress update number 5, which reflects progress through to the end of August 2024 – link. Information is provided for Immediate Choice (retired) members as well as useful information on ABS-RSS.