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. 

Immediate Choice Update for Pensioners, Deceased and Beneficiaries

The tax issue that has been mentioned in previous updates is yet to be formally resolved. This involves the interpretation of guidance and development of calculation routines for administrators to begin issuing statements for affected members. More information can be found on News - policepensioninfo.co.uk dated 29 October 2024.

Annual Benefit Statement (ABS) Update

XPS started processing and loading statements to their online member portal in the week commencing 26th August 2024 for affected members. To date, they have been able to publish over 75% of ABS-Remediable Service Statement (RSS) statements (1209 out of 1567).

Various issues may be delaying the process and does not necessarily mean there is missing/incorrect data. XPS are working on more in-depth analysis which will be shared once available. The use of automated solutions has seen an increase in the number of calculations being undertaken and will lead to a significant uplift in the number of statements issued in the coming months.

The NYP Payroll and Pensions team are continuing to collect the remedy data (transferees, upcoming retirements, contributions adjustments, etc.) and work through any data queries with XPS. Please allow sufficient time for the Payroll and Pensions team to resolve these queries.  This is a very challenging process for all parties concerned.

It is important to note that the ABS-RSS is for information only, they are not retirement planning documents and do not require a choice of benefits to be made at this stage. NYP contribution adjustments process is available on https://www.northyorkshire.police.uk/police-forces/north-yorkshire-police/areas/about-us/about-us/finances/pension-remedy-website/ or https://policepensioninfo.co.uk/member-remedy-documentation/.

Remediable Service Statement (RSS) Update

The National Police Chiefs Council (NPCC) have published some guidance relating to the design and purpose of the statement in their RSS factsheet, pages 12 to 18 - NPCC-Member-Remedy-Factsheet-Remediable-Service-Statements on www.policepensioninfo.co.uk.

XPS have an online portal known as the Member Hub, allowing Immediate Choice members (pensioners, deceased, beneficiaries) to view their RSS and to make the necessary elections via a digital platform. Once their RSS has been processed, members will receive a letter from XPS advising that their statement is ready for review. This letter will include login details and a telephone number for the Hub Team who can assist with any login issues. Once members are online, they can view their statement and options and use this forum to respond to XPS with their choice. The relevant Q&As are on the site, along with any links to other relevant sites to assist in making their choice.

Not all members will be due an uplift in their benefits as a result of that review, as many members will already be in receipt of the most beneficial option available to them.

This can even apply to ill health retirees awaiting remedy; therefore it is important for members to wait until they receive their RSS before making any assumptions as to what they may be due. Once remedy calculations have been completed and members have received their RSS, if members are due an uplift, they will be required to make an election/decision via the Member Hub, so that XPS can make the necessary arrangements.

The legislative requirement is to issue an RSS by 31 March 2025, but that does not mean that all benefits will necessarily be settled by this date.

Members have 12 months from receipt of their RSS to decide on their benefits. Payroll will then process contributions adjustment and payments, where applicable, and XPS will settle benefits once a decision is received.

Pension Savings Statements (PSS) Update

The process required to produce the PSS has been made significantly more complicated this year due to the additional work imposed by the McCloud remedy project.

XPS administrators have been continuing to work through the McCloud affected members and have been issuing statements where applicable throughout October.

If members are not due a PSS, XPS wrote to tell them that they have not breached and so would not be receiving a PSS.

XPS also wrote to all other eligible members to notify them that they are working on their PSS and would contact them again as soon as they had completed data investigations.

There is pensions tax support available to members who have breached or those who will need a professional advice to navigate through any tax/financial loss issues due to McCloud remedy.

Members can pay for professional advice and support, such as engaging a suitably qualified accountant or independent financial adviser and submit a claim under compensation guidance to get their financial costs reimbursed. More on compensation guidance in other downloads on https://www.northyorkshire.police.uk/police-forces/north-yorkshire-police/areas/about-us/about-us/finances/pension-remedy-website/ or on the dedicated Police Pensions website https://policepensioninfo.co.uk/member-remedy-documentation/

The NPCC has provided the list of suggested pensions tax advisers and their contact details on https://policepensioninfo.co.uk/useful-information/

The information on how Personal Tax is impacted by pension contributions - Introduction to Personal Tax and Personal Tax and Remedy is also available on https://policepensioninfo.co.uk/useful-information/

Contingent Decisions

A Contingent Decision is a decision taken by a member, that would have been different had it not been for the discrimination identified by the courts. The decision will relate to their membership of the Police Pension Scheme during the Remedy Period 1 April 2015 to 31 March 2022. There are four types of Contingent Decisions for which a claim can be made:

• Opt-outs
• Honoraria
• Additional service
• Transfers

More information about contingent decisions can be found here:  https://policepensioninfo.co.uk/member-remedy-documentation/. If a member feels this applies to them, they will need to complete a contingent decision claim form and return it to [email protected].

Frequently Asked Questions

Considering retirement?

For members who are considering retirement, please inform the payroll team 3-6 months before potential retirement date so that the paperwork can be processed in good time as this potentially could add further complexity around McCloud remedy.

Vulnerable member and/or wish to escalate an issue for immediate attention?

For guidance, please email: [email protected]

To escalate issues, please email: [email protected]

Where can more information be found?

https://www.myownpension.co.uk/police-member/mccloud/ or www.policepensioninfo.co.uk.