Enquiries.Tradedlearning@kirklees.gov.uk
SBM Network - 19th November 2013
08.30 Registration/Networking (optional)
09.00 Welcome, future topics for consideration
Advocates
09.15 Funding Changes for 2014/15
Angela Farmer
09.35 West Yorkshire Pension Scheme - Changes from 2014
David Blackburn
10.05 One Hub – Kirklees Business Solutions
Erin Herbert
10.20 Powerhouse
John Moran
10.45 Kirklees Supply Service / Booksplus
Natalie McSheffrey
11.00 Close
Topics for the future
Please give some
consideration during this
morning as to what topics in
the future you wish to be
covered.
Funding Changes for 2014/15
Angela Farmer
SCHOOL BUSINESS MANAGERS
NETWORK:
November 2013
Angela Farmer
School Funding Reforms 2014/15
• Low prior attainment: secondary measure to pick
up students falling behind in English OR Maths
• Pupil mobility: introduction of 10% threshold.
Funding can only be allocated above this
threshold
• Sparsity factor: small schools (primary < 150 &
secondary < 600) & where average distance to
pupil’s second nearest school is more than 2
miles or 3 miles respectively.
School Funding Reforms 2014/15
• Differential sectoral lump sums: ceiling value
lowered from £200k to £175K. Primary and
secondary lump sum values can be different
• RP Units: now required to deduct the number
of specialist places rather than the actual
number of pupils occupying available places.
Other Considerations (1)
• De-delegation: decisions taken last year need
to be re-considered again:
– School contingencies
– FSM eligibility checks
– Maternity/paternity
– Trade Union duties
– Public Duties
– International new arrivals service
– Nurture groups – final year of phasing protection
Other Considerations (2)
• Falling rolls fund: Can top slice DSG to create
small fund to support good or outstanding
schools (with short term falling rolls) where local
planning data shows that their surplus places will
be needed in the near future
• Support for disproportionate SEN numbers: High
needs funding block can be used to make
additional allocations to schools that have a
disproportionate number of pupils with high
needs. Allocations would be underpinned by a
formula which LA’s will have to construct
Powerhouse
• Each school will have an individual portal to be able to download
their financial reports ie will no longer have to wait for prints to be
e-mailed.
• Financial information will be current.
• Users can drill down through each level of income and expenditure
from cost centre, to netxx, to individual transaction level.
• Budget reports will hold previous year’s information
• Data can be manipulated to allow schools to extract the information
they require
• Easy to export reports into excel
• New code structure has been put in place, both objective &
subjective.
• Training sessions are being provided in autumn term
West Yorkshire Pension Scheme Changes 2014/15
David Blackburn
LGPS 2014
David Blackburn
Pensions Manager – Kirklees Council
Tel: 01484 225089
E mail: david.blackburn@kirklees.gov.uk
Things I don’t
understand!
Pensions…
The Local Government Pension
Scheme now…
Protected Benefits
• Members who leave/retire before
1st April 2014 unaffected
• Final Salary Guarantee for service accrued prior to 1st April 2014
• Old scheme protections will still apply
e.g. 85 Year Rule
• Age 57 on 1 April 14 – you get whichever is better …
the current scheme or the LGPS 2014
Contributions
• Actual pay determines contribution banding as opposed to
whole time equivalent pay
• Only those earning more than £43001 pay more
Current v New scheme
Estimate:
• 24.78% will pay less (part-timers based on actual pay)
• 72.72% will pay the same
• 2.5% will pay more
Contributions
Retirement Age
• Normal Pension Age (NPA) to be linked to State Pension
Age (SPA) – subject to a minimum age of 65
• NPA = age benefits are paid without
reduction/enhancement
• Voluntarily from 60: Reductions will apply for early
payment
• Protections apply – including rule of 85
• SPA increases to 66 from 2018 to 2020
Retirement Age - Early Retirement Factors
Based on current factors - Part years are calculated on a pro rata basis
Year until Normal Pension
Age
% Reduction in Pension –
Men
% Reduction in Pension Women
1
6
5
2
11
11
3
16
15
4
20
20
5
25
24
6
29
27
7
32
31
8
36
34
9
39
37
10
42
40
Career Average Scheme
• Membership from 1st April 2014 will be based on Career
Average Revalued Earnings (CARE)
Pension earned each year of membership instead of being
based on salary earned in your final year.
• Final Salary v’s CARE
Final Salary suits career patterns with regular
promotion increases leading to the best earnings
in the last year of employment.
CARE suits those with fluctuating pay or
promotional increases are limited
whose
Accrual Rate
The rate at which your pension accrues
1/49th of CARE salary for each year of membership
from 1st April 2014
1
49
x
annual pensionable pay = pension
1997 scheme - 1/80 pension + 3/80 Lump Sum based on Final
Salary
2008 scheme - 1/60 pension based on Final Salary
2014 scheme -1/49 pension based on Career Average Salary
Pensionable Pay
Pay including non contractual overtime and additional hours
for part-time staff
Current Scheme v New Scheme
Non contractual overtime and additional hours are not used in the
calculation of benefits under current scheme.
All overtime and additional hours will be used in the calculation of
benefits under new scheme.
Therefore Members who work overtime or additional hours will
receive a bigger pension under new proposals.
Revaluation
• Annual CARE Pension re-valued in line with Consumer
Price Index
• Not Applicable under current scheme as pension is
currently calculated on a final salary basis
CARE - Example
In the first year Tom has a pensionable pay of £20,000 so will accrue
1/49th of that pay towards pension i.e. £20,000 x 1/49 = £408.16
Tom was in membership for 6 years & rec’d a consistent pay increase of
£500 per year and inflation was 3% each year:
Active member pension account
6 years to retirement age. Revaluation = CPI (3% a year assumed)
Beginning of
scheme year
Year
Opening
balance £
End of scheme year
+ reval on
opening balance
closing
balance
(3% assumed)
+ earned
pension this
year
1
£0
£0
£408.16
£408.16
2
£408.16
£12.24
£418.36
£838.76
3
£838.76
£25.16
£428.57
£1292.33
4
£1292.33
£38.77
£438.77
£1769.87
5
£1769.87
£53.09
£448.98
£2271.94
6
£2271.94
£68.16
£459.19
£2799.28
Is the scheme good value
SO…
• £6285.60 contributions
Gets…
• A yearly pension of £2799.28
That means…
• 2 years 90 days after retirement* he will have got all his
contributions back!
*at State Pension Age or age 65 if your State Pension Age is under age 65
• And he will carry on getting a pension for the rest of his life
• Followed, perhaps, by a survivor pension for his spouse, civil
partner or a long term partner who lives with him
Contribution Flexibility – 50/50 option
• Pay 50% contributions for 50% pension benefits
• 1/98th accrual rate instead of £1/49th but retains full
value of some other benefits e.g. Death
• Re-enrolled back into full scheme every 3 years
Designed to:
• Provide short term alternative for members struggling
to pay full contributions
• May be attractive to current non-joiners
Early Payment of Pension?
If you leave your job
• Any time between age
55 and age 75
• Adjustments based on how much before or
after your State Pension Age* you are taking it
*Or age 65 if your State Pension Age is under age 65
• You don’t have to take it when you leave you
can take it at any time up to age 75
What is staying the same
Your pension will be paid if your employer
dismisses you on
• Ill health grounds at any age, and you qualify
for ill health retirement
• Redundancy/business efficiency grounds from
age 55
What else is staying the same?
• Paying in more for bigger benefits…
– Additional Pension Contributions – additional
contributions direct to WYPF (Called Additional
Regular Contributions until April 2014)
– Additional Voluntary Contributions – to one of the
fund’s AVC providers
• Prudential
• Scottish Widows
What else is staying the same?
• Death benefits
– Death grant
– Survivor benefits
Spouse
Civil partner
Cohabiting partner
Eligible children
• Deferred benefits
– Leaver before pension
payable
– Pension payment
deferred
• Transfer to another
scheme
What is staying the same
• The option to give up some of your built up
pension for additional lump sum
• Subject to HMRC limits
Communication to school staff
How can we help?
Powerhouse
John Moran
Powerhouse Update for Schools
So what have the HR/Payroll Powerhouse team
been doing!
 Building the organisation structure for schools
 Testing including trying to break the system (and we certainly tried!)
 Migrating 14,617 employees from Delphi to SAP
So what have the HR/Payroll Powerhouse team
been doing!
 Ensuring employees will be paid through SAP on 4 December
 Rolling out training in the Business Intelligence Reports
 Ensuring schools will have access to their information from 2 December
Business Intelligence (BI) Reports Overview
 Accessed in the BI system via Portal
 Are interactive reports that enable you to change the format to suit
your requirements
 Separate to the main SAP system, data is extracted from SAP each night
– you cannot break it!
Business Intelligence Reporting Overview
 Schools can ‘slice and dice’ the data to display information according to
their own requirement
 BI Reports can be accessed via the Kirklees Self Service portal which
will be emailed prior to2 December
 Only authorised users will be able to access these reports ie School
Business Managers and Head Teachers
HR/Payroll Business Intelligence Reports
Name of the Report
Purpose
HR001 Establishment Report
Shows the summary of vacancies within the school
HR002 FTE Report
This report will provide you information on FTE’s and
headcount per school
HR003 Turnover including
Reasons for Leaving
The report will show details of staff turnover and turnover
trend for staff within a school
HR005 Salary Cost Analysis
The report will provide you salary cost analysis for your school
which can be drilled down to the employee level
HR008 Absence Reason Analysis This report will analyse absence data by absence type and
and Costs
calculate the associated costs, data can be drilled down to the
employee level
Training
 Drop in sessions are currently being arranged from w/c 2 Dec
 Further training courses scheduled for January
 We can attend any pyramid meetings
 Talk to us - we want you to use BI:
Karen Lynch - 07976 4975652 / John Moran - 07528 252147
Thank you
 Its been great meeting those of you who have been on the training and
thanks to the volunteer group.
 Let us know if you have not had training or you have other people that
need training
 We have taken feedback on board and we want to continue to work
with you all!
http://kcsapepqas.itds.kirklees:50000/irj/portal