STSS
EMPLOYER SEMINARS
FEBRUARY 2010
Plan for today
• Facilities
• Agenda
• Packs and comments cards
• Feedback
• Q&A
• Workshops
Scottish Public Pensions Agency
• We are an agency of the Scottish Government and
have sole responsibility for the administration and
regulatory work surrounding Teacher’s pensions in
Scotland
• We have been based in Tweedbank since September
2002
• In 2008/09 the SPPA had 232 WTE members of staff
with 35 working part time
• In the STSS administration section we have 32
pension administrators, 6 Team Leaders and 2
Regional Managers
Representatives for today include:• STSS Operations Staff and Team
Leaders
• STSS Regional Managers
• Pension Change Team
• Finance Team
• Policy Manager (for Q & A only)
Information about the Scheme
• Members are contracted out of SERPS
• Pension contributions attract tax relief
• Scheme is unfunded and contributory
• Membership is voluntary – however all staff are
automatically entered into scheme and must choose to
opt out
Contributions
Employee
6.4%
Employer
14.9%
No change for Financial year 1 April 2010 to 31 March 2011
The current Scheme Regulations to which the
scheme is operated under are:TEACHERS’ SUPERANNUATION (SCOTLAND)
REGULATIONS 2005
TEACHERS’ SUPERANNUATION (SCOTLAND) AMENDMENT
REGULATIONS 2008
STATS
A total of 173 employers had staff eligible to
join the scheme at 31 March 2009
Membership Data at 31 March 2009
Active Members
Preserved Rights
Pensioners & Dependants in payment
New Awards of pension made during
year (including revisions)
Transfers In and Out of scheme
Refund of contributions to leavers
78,242
14,975
56,173
4,369
832
338
Ongoing issues which are being
addressed:• Legacy Data tasks following introduction of
new Pension Administration system
• Revision of existing STSS Employers Guide
STSS Operations Team Structure
Regional
Managers
Team
Leaders
Service
Benefits
Donald Forbes
Kenny Wood
STSS Service
Carolyn Fraser
STSS Benefits
Sam Douglas
Brenda Callow
Kaye Niven
Greg Walker
Greg Symons
All service, refunds, backdated conts & transfers
All retirement awards, estimates & death benefits
http://www.sppa.gov.uk/
STSS and Employers Working
Together
A summary of what is required, when and why
A Calendar Year in Administering
the STSS
January to February
• Dealing with Benefit Statement enquiries
• Analyse the previous year to establish where
improvements can be made
• Working on Easter Retirals
• Prepare circulars to advise of requirements and
timescales
• Assist Employers with Early Retiral information
• Prepare for Employer Seminars
A Calendar Year in Administering
the STSS
March to April
• Most of the Easter Retirals should be completed
• SPPA Payroll run Pension Increase (PI) STSS staff
assist with influx of calls this generates
• Issue of Annual Return Circular and PI Circular
• Receiving August retiral applications
• Analyse and log August retiral applications
• Submit accrual information to finance
A Calendar Year in Administering
the STSS
May to June
•
•
•
•
Receipt of Annual Returns
Loading and investigation of Annual Returns
Analyse and log August retiral applications
All August applications should by now have been
received
• Processing of August retirals
• Influx in estimates and associated award tasks
• Annual Return chase up Circular
A Calendar Year in Administering
the STSS
July to August
•
•
•
•
•
•
Process August retirals
Receiving August retiral applications
Analyse and log August retiral applications
Deal with large number of telephone calls
Influx in estimates and associated award tasks
Receiving October retiral applications
A Calendar Year in Administering
the STSS
September to October
•
•
•
•
•
•
Wash up of the August retirals
Process October retirals
Influx of benefit enquiries
Benefit statement planning and Circular
Receiving Christmas retiral applications
Re-employment enquiries
A Calendar Year in Administering
the STSS
November to December
• Issue of Benefit Statements
• Process Christmas retirals
• Influx of Benefit Statement enquiries
A Calendar Year in Administering
the STSS
All Year
•
•
•
•
•
•
•
Death and Ill-Health
Transfers
Refunds
Additional Pension
Record Management
Mid month closedowns
Monitoring literature/applications and updating
accordingly
Data From Employers –
current process
1.
2.
3.
4.
5.
6.
7.
Data issues encountered in last year
Procedures introduced
Completion of TSS1
Completion of TSS2
Completion of TSS4
Common Problems with Annual Returns
Benefit Statements
Data issues encountered
1.
Implementation of new interface for data
2.
New validations introduced
3.
Legacy data to be loaded
4.
Data awaiting upload
Procedures Introduced
1.
All Data should be sent to:
PCT@Scotland.gsi.gov.uk
2.
All Data received by 25th of the month will be
loaded that month
3.
All Data received to the PCT mailbox address is
now archived for a six month period
Completion of TSS1 (starter)
form
Currently a TSS1 is required when:
•
A new employee has began to make
superannuation contributions
•
When a member goes from either Full time to Part
time OR from Part Time to Full Time
•
When the member makes a winding down
election, takes phased retirement or becomes
re-employed
Completion of TSS2
(Leaver) form
Currently a TSS2 is required when:
•
A member leaves pensionable employment
(retires/opts out/leaves your employment)
•
When a member goes from either Full time to Part
time OR from Part Time to Full Time
•
When the member makes a winding down
election, takes phased retirement or becomes reemployed
Completion of TSS4 (Annual Return) form
Currently a TSS4 is required:
•
For ALL members in Reckonable Service on the
31st of March for the relevant year.
•
An Annual Return is not required for members who
have left service during the year. (The relevant
data will be shown on the TSS2 – Leaver forms).
Common Problems with Annual
Returns
1.
Periodic Added Years and Additional Pension
contributions
2.
Multiple Contracts
3.
Pay Reference Numbers
4.
Salary Rates
Timing of Annual Returns
• You are required to submit your annual return by the 31st
of May.
• Late receipt of annual returns means starter and leaver data
cannot be loaded until the ARs are received.
• Not receiving the AR’s by the end of May negatively
impacts on the Agency’s ability to deal with summer
retirees.
• If the annual return is submitted late, the member may not
receive a benefit statement.
Benefit Statements
• First time issue from new system
• Location code:
What are location codes?
Why are they important?
• Method of sorting statements
• Content and Information supplied
Looking forward.
Options under consideration
• Issuing direct to home addresses
• On-line benefit statements
• Both under active consideration but requiring some
development.
Employer Engagement
Future Data Interfaces
A project to improve data exchange
between STSS stakeholders
Chris White
SPPA Stakeholder Liaison (Operations)
Background
• Current data validation routines have evolved since 1995
and before. They no longer represent best practice.
• SPPA changed their STSS pension administration
system to Heywood AXISe in September 2008
•
• August 2009 retirals were first major test
• SPPA now wishes to maximise the utility of AXISe
Aims of the project
•
Improve efficiency of data transmission
•
Minimise risk of unvalidated data being received and
applied to member records
•
Maximise use of communications technology
Project Milestones
Milestone
1
Date
SPPA accepts only all-electronic data 01/04/2010
2
All data to be submitted in a revised
format
01/04/2011
3
The improvement in integrity of data
and member data clearance issues
reaches a critical threshold
Future web interfaces – for members
(e.g. benefit statements), employers
and pensioners
Variable
4
Variable
A circular will soon be sent to employers detailing post-April 2010 data
receipt arrangements
Work to date
• Currently in the second phase of the project
This work focuses on:
• Ways of implementing data validity checks
• Consultation with pilot employers to establish what
information payrolls can provide
• A new file specification for submitting data
• A template for smaller employers to submit data with
basic validation using Excel
Data submission
Issue
Proposal
Secure data
transmission
SPPA will follow Scottish
Government guidelines on data
encryption
Duplicate requests
Automated acknowledgement of
for data from SPPA data receipt by SPPA. This builds on
automated data requests being
trialled in STSS and is auditable
Exchange of
SPPA to work with employers to
invalid data with
ensure mechanisms in place
employers
Data transmission methods
from employer to SPPA
Current
Future
Tape and CDs
Electronic data submission
to a central contact point.
Paper
Fax
E-mail direct to
administrators / team
leaders
E-mail to Pensions
Change team
No paper data will be
accepted after 1st April 2010
Urgent data requests still to
go to administrators / team
leaders
Data submission – Current
Data Submission - Future
• Data transmission format(1)
Scenario
Member
starts/joins the
scheme
Member
leaves an
employment /
scheme
Annual Return
Current
TSS1 (Starter)
Future
Action Type “S”
(Starter)
TSS2 (Leaver)
Action Type “L”
(Leaver)
TSS4 (Annual Return) Action Type “Y”
(Yearly)
Data Submission
• Data transmission format(2)
Scenario
Change of
address
Change in
working
pattern
Current
Various methods
(paper, e-mail etc)
from member or
employer
TSS2/1 (Leaver /
Starter)
Future
Action Type “A”
(Amendment)
Action Type “A”
(Amendment)
Data submission - Future
Incorrect
data fails
validation
DRAFT v1.1
Summary
• No radical changes to data which employers provide
• No paper data to be submitted after 31/03/2010 (Note
that Awards forms, urgent faxes etc. still acceptable)
• Data to be submitted to SPPA in a new format from 1st
April 2011
• First annual returns in this format from 31st March 2012
• SPPA will work with employers and payrolls before
changes are implemented for project phase 2 onwards
Any Questions?
www.sppa.gov.uk
chris.white@scotland.gsi.gov.uk
01896 893276
STSS Ill Health Applications
Brenda Callow
Who can apply for Ill Health
Benefits?
•
•
•
•
•
•
Under Normal Pension Age (NPA)
2 Years Qualifying
No Premature Application
Enhancement up to NPA
STSS re-employed pensioner
Non qualifying under 75 member
Ill Health Applications
• SPPA (on behalf of Scottish Ministers) must be
satisfied that the member has become permanently
incapable of any teaching,
including part-time
teaching, until the members normal pension age.
The medical advisors consider the medical evidence
submitted and make a recommendation to the SPPA
Medical Advisors
SPPA Occupational Health Medical Advisor is ATOS
Healthcare.
Medical Advisors analyse the medical application in line
with the Scheme Regulations and then give advice to the
SPPA.
The member’s degree of incapacity will determine whether
they are entitled to PIB (Partial Incapacity Benefit) or TIB
(Total Incapacity Benefit).
Decisions are based on the application and medical
evidence received.
Two Tiered Approach
• TIB (Total Incapacity Benefit)
• PIB (Partial Incapacity Benefit)
TIB (Total Incapacity Benefit)
•
•
•
•
•
•
Pensionable employment
Ceasing the payment of contributions
Sick / maternity / paternity / adoption leave
Members not in pensionable employment who do not
meet the above criteria
Enhancement
Reason for leaving
PIB (Partial Incapacity Benefit)
•
PIB Benefits – early payment no enhancement
•
Serving member contesting PIB award
Terminally Ill Members
• Terminally Ill Members - life expectancy of less than
one year
• Fast Track Application
• Option to commute to one off lump sum payment
Actual Ill Health Applications
To enable the member’s details to be forwarded to
ATOS for recommendation, the SPPA requires a
completed STSS (Inc) and STSS (Med) 1 along with
any relevant documents. It is important that all the
information is received first time to ensure a speedy
turnaround of the application and reduce:
• delays for members, and
• re-working by both employer and SPPA staff making
the process more efficient
Applications received from Jan to
Oct 2009
Total No of Applications Received
Total No of Incomplete Applications
% Incomplete Applications
56.00%
145
82
56%
44.00%
Total No of Applications Incomplete on Receipt
Total No of Applications Complete on Receipt
Analysis of Incorrect/Missing Info
Figure 5: Analysis of Incorrect/Missing Information
6
13
3
Forms - Incorrect issue
10
INC 2 not signed/stamped
7
missing/incorrect job description
missing/incomplete sickness record
missing/incomplete medical consent form
missing/incomplete medical information
14
12
missing/incomplete checklist
incorrect/incomplete payroll information
17
Additional Support Requirements
Figure 6: Application Additional Administrative Support Requirement
3 31
60
Administrator Telephone calls
Administrator Emails
112
Administrator Letters
Line Manager Telephone calls
Line Manager Emails
Line Manager Letters
78
Employers
should
clearly indicate when
the teacher changed
to half pay or NIL
pay
Completed (Inc)
Sick record should
be
detailed
and
cover the last 5
years.
If an end
date is given then it
should be clearly
stated whether the
teacher has returned
to work or not
Job Description must
relate to the actual
job of the teacher
Completed (Inc)
Completed (Inc)
It is very helpful if employers
can identify a contact within
their organisation for any
follow up queries
Completed (Med)1
Please check that the consent form is
signed by the applicant and enclosed.
Recently there has been an increase in
the number of consent forms being held
by the GP
Completed (Med)1
Actual Ill Health Applications Contd
• Please ensure that you use the latest version of the
STSS (Inc) and STSS (Med)1. These can be found on
our website along with all the latest application forms at:http://www.sppa.gov.uk/scot_teachers/forms.htm
Action if application is received
incomplete
A circular is being prepared which will go into more
detail about what makes a good application. It will
explain the employers role in ensuring that all medical
evidence and full sickness details are included at first
application. An incomplete application is likely to be
rejected as we will start returning incomplete
applications from 1 April 2010.
On receipt of a fully completed
application
The application is sent to ATOS who will analyse all
the available correspondence and make a
recommendation based on this and the Scheme
Regulations.
Following Recommendation
• If the member is not accepted for PIB or TIB they are
notified of the decision in writing giving details why
they have not been accepted
• If a member who is disallowed, or is awarded PIB but
think that TIB is appropriate and is unhappy with this
decision then they are able to enter the dispute
process
Informal Process
This must be submitted in writing and the member must
give details of their concerns, including any facts that
the member thinks have been ignored.
The informal stage is not to be used where a member
now has further medical evidence, or for an ailment
which was not on the original application. In such cases
they must move to IDRP Stage 1.
INTERNAL DISPUTE RESOLUTION
PROCEDURE (IDRP)
A Guide to the Internal Dispute Resolution Procedure is
available from SPPA or at:http://www.sppa.gov.uk/scot_teachers/forms.htm
IDRP is a 2 stage process
1. Stage 1 IDRP
2.
Stage 2 IDRP
IDRP Stage 1
• This is a formal process which requires the SPPA to
reconsider the original decision
• the application can either be in writing, which must be
signed or the member can use the form at the back of
“A Guide to the Internal Dispute Resolution
Procedures”
• It is expected that the application should be within 6
months from receiving the original decision
IDRP Stage 1 Contd
What information is required?
• Full Name, Address, Date of Birth, National Insurance
Number, Superannuation Number and name of
employer
• The member should explain their dispute fully,
submitting any further supporting evidence (medical
or otherwise) which they think is appropriate to their
application
This IDRP Stage 1 application is forwarded to ATOS for a
decision. The case is reviewed by a doctor who was not
involved in the original decision.
IDRP Stage 2
• Application within 6 months of the decision on IDRP
Stage 1
• Application procedure
• Independent process
• Determination timescale
• Outcome
If IDRP Stage 2 is unsuccessful, then the member can
submit a new application when the whole process starts
again.
Can the member return to
teaching?
Ill Health benefits are awarded because the member is
permanently medically unfit to teach, therefore if the
member returns to teaching their ill-health pension must
stop straight away. It is the member’s responsibility to
notify the SPPA immediately if they are considering
returning to teaching.
If the member wishes to return to teaching, their
employer must be satisfied that the member is fit to
teach in the capacity required.
Taking up employment outside
teaching - TIB
•
Criteria for returning to employment outside teaching
In all cases, SPPA will need to know:
• name and address of the members new employer
• date the employment started or is due to start
• nature of employment and hours worked each week
• rate of salary
• duration of employment (if known)
FAQ’s
• If the member is buying additional pension by instalments,
what will happen?
If they have not completed the payments then, provided they
were in good health when they started to buy the additional
pension and have paid for at least 12 months, they will be
excused any further contributions and receive the full benefits.
• If the member is buying past added years and the
contribution period is not completed, what will happen?
Any unpaid contributions will be excused for the period up to
age 60 and they will be credited with the corresponding number
of Added Years.
The Retirement Awards &
Death In Service Application
Process
Greg Symons
Team Leader
Teacher’s Benefits
Introduction
•
•
•
•
Types of Retirement
Completing the RET Application Form
Pensionable Salary
Death in Service
Types of Retirement
Types of Retirement
•
•
•
•
•
•
Definition of Existing Members and New Entrants
Commutation
Age Retirement
Actuarially Reduced Pension (ARP)
Phased Retirement
Premature Retirement
SPPA require fully and correctly completed retirement
application forms to be submitted at least 3 months
prior to the members retirement date in order that
retiral benefits are paid in line with the Scheme
Regulations.
Existing Members
• Existing Members at 31 March 2007 and those who
return within specified time limits
• Normal Pension Age of 60
• Pension accrual rate of 1/80ths and 3/80ths Lump
Sum
New Entrants
• Members who joined the STSS on or after 1 April
2007 with no previous service
• Normal Pension Age of 65
• Pension accrual rate of 1/60ths and no fixed Lump
Sum
Commutation
• Commutation is the means by which a member can
convert some of their annual pension in return for a
larger tax-free lump sum
• Pension can be converted to lump sum at a ratio of
1:12 up to a maximum lump sum of 25% of overall
pension fund value
• Commutation is available to both New Entrants and
Existing Members
Age Retirement
• Available to members who have reached Normal
Pension Age
• Benefits are based on all reckonable service up to
age 75, limited to a maximum of 45 years in total
Actuarially Reduced Pension
(ARP)
• Available to all members from age 55
• The applicant requires your consent if they apply
while still in employment
• Consent can only be withheld for up to 6 months
• Member’s pension will reduced using Government
Actuaries Department factors
Phased Retirement
• Available to all members from age 55
• Member takes a proportion of their retirement benefits
and continues working on a lower salary
• Pensionable earnings must reduce by 25% for 12
months following phased retirement date, either by
reduction in hours worked or members responsibilities
Phased Retirement
• A maximum of 75% of total retirement benefits can be
drawn under this arrangement
• The remaining service of at least 25% will be
aggregated against any subsequent service accrued
• Members can take 2 phased retirements before final
retirement
• The applicant requires your agreement
Winding Down Scheme
•
•
•
•
•
•
•
•
•
Age 56 – NPA 60
Age 61 – NPA 65
Service minimum 25 years
Maximum 5 year break can count toward this
10 years whole time service
Minimum 0.5 part time contract
Employers consent required
SPPA eligibility check
Maximum 4 year duration
Premature Retirement
•
•
•
•
6 April 2010 changes
Criteria
Enhancement
Capitalising Compensation and Enhancement
From 6 April 2010 all members must have attained age
55 to take Premature Retirement.
Premature Retirement
• Available to existing members from age 50 prior to 6
April 2010 and to members from age 55 thereafter
• Available only to members who are leaving employment
on the grounds of redundancy or in the interests of the
efficient exercise of the employer’s function
• Pension is calculated as per ARP with you picking up the
reduction (described as Mandatory Compensation)
• This must be certified on part 3 of the RET form and you
must agree to pay statutory compensation
• Premature Retirement is not available to members who
are not in pensionable employment i.e. members who
have been on a period of nil pay
Discretionary Enhancement
• In addition to the Mandatory Compensation
employer’s have the discretion to further enhance
member’s retiral benefits in some cases
• This can be done by crediting members with a
pension and lump sum based on an additional period
of service
• If any additional enhancement is being paid this must
also be certified on part 3 of the RET form
Capitalising Compensation and
Enhancement
• SPPA offer a facility which allows you to pay any
compensatory or enhanced pension costs by one off
payment
• You would pay the capitalised cost of a members pension
benefits and the SPPA would take on the liability for all
ongoing pension payments
• Pensions are capitalised using the Government Actuaries
Department (GAD) capitalisation factors
• We have spreadsheets available to assist in these
calculations if needed
Completing the RET Application Form
Completing the RET
Application Form
• RET Forms consist of 3 parts which must be submitted
together
• Any Forms received with missing parts will be returned
to the sender
• Part 1 is completed by the member
• Part 2 is completed by the employer
• Part 3 is completed by the employer in premature
retirement cases only
STSS RET Form Part 1
• Ensure that the
member has completed
all the relevant sections
in part 1 of the form
• Ensure that they have
selected the correct
retirement type and
entered the correct
retirement date
STSS RET Form Part 1
• Please ensure that the
member has made a
decision on commutation
or requested a
commutation quote by
completing the
box on page 1
• This is one of the most
common reasons for
delayed applications
STSS RET Form Part 2
• Part 2, section 9 of the
form should show the
same retirement date
and the type with those
given by the member on
part 1
• If the member is retiring
on Premature grounds
you must indicatethat
compensation is being
Awarded
STSS RET Form Part 2
In the ‘To last return date’ section we require earnings and
service details of the whole year up to the last Annual
Return. We require;
• The total pensionable earnings for the year
• The total number of days worked for full-time members
• Total number of hours worked for part-time members
• For part-time members you will need to enter the
percentage of full-time
STSS RET Form Part 2
The part-time percentage can be worked out
using the following formula;
1172 (Hours Worked)
1365 (Full-Time Equivalent Hours)
x 100 = 85.86%
STSS RET Form Part 2
In the ‘To date of leaving’ section we require details of
earnings and service between 1 April, following the last
annual return date, (given in the section above) up to the
retiral date. Again we require;
• Total pensionable earnings for the period
• The total number of days worked for full-time members
• Total number of hours worked for part-time members
• For part-time members you will need to enter the
percentage of full-time
STSS RET Form Part 2
• In the section above we require details of any unpaid
leave or increases in salary during the last 365 days
only
STSS RET Form Part 2
• You must ensure that section 11 is signed, dated and
stamped to certify that the information supplied is correct
STSS RET Form Part 3
• Part 3 must be
completed in every
premature retirement
application
• You must indicate whether
the retirement is as a
result of redundancy or in
the interests of efficiency
• You must also indicate if
the member is being paid
discretionary
enhancement
Pensionable Salary
Pensionable Salary
•
•
•
•
Average Salary
Salary for Part-time members
Regulation E34
Non-superannuable pay
Pensionable Salary
For members who retire after 31 March
2009 their pensionable salary is calculated
as the best of the following;
• The average of the best consecutive three years revalued pensionable salaries in last ten calendar years
• The pensionable salary received in the last 12
months before the date of retirement
Average Salary
• A case where the
average salary is the
highest of the 2 salary
calculations
• The average of 3 years,
re-valued, salary
between 2003 and 2006
is the best
Part-time Members
• Calculated in the same way as full-time members
• Calculation for last 365 days is done by up-rating the
earnings for the period
• Example of last 365 days calculation for part-time
member;
£28640.79 (Earnings 365 days)
313 (Days worked)
x 365 days = £33,399 (Salary)
Regulation E34
• The Regulation governing the salary calculation
contains a safeguard to protect the STSS against
excessive increases in salary in the lead up to
retirement. Reg E34 (11) applies every time that a
teacher has a pay rise in the material period of
terminal service
• The Regulation has no bearing on the contributable
salary to which scheme members are entitled to be
paid. The Regulation exists to deal with the
consequences of excessive salaries increase(s) in
the run up to retirement and the disproportionate
impact on the scheme
Regulation E34
• The regulation applies in all cases where, in the financial
year during the salary period there has been an increase
in contributable salary of more than 10% above the
standard increase
• The regulation makes no allowance for the reason
behind an excessive salary increase whether it was
reasonable, temporary or on promotion
Regulation E34
• The justification for this is costs against the scheme. If
someone has a large increase in salary at the end of the
career then someone has to pay the scheme to provide
the ongoing pension costs
• Members whose salary increases are in breech of
Regulation E34 will have their pensionable salary
restricted unless employers agree to pay the capitalised
costs of providing a pension based on the inflated salary
Regulation E34
• A case where members
earnings are in breech of
regulation E34
• The earnings have
increased by more than
10% in a one year during
the material period
• The pensionable salary
is therefore restricted to
the average salary
Non-Superannuable Pay
The following payments should not be treated as part of
teachers contributable salary;
•
•
•
•
•
Payments in respect of overtime.
Payments in respect of special duty or extra duties.
Payments by way of travelling or expense allowances.
Payments in lieu of holidays
Payments in lieu of notice
Death In Service
Death In Service
• Death Gratuity
• Short Term Pension
• Completing the DIS 2 form
Death Gratuity
• When a teacher dies in service or within 2 months of
leaving (where no other benefits are payable) or
within one year of leaving reckonable service by
reason of incapacity there is a Death Gratuity
payable
• Death Gratuity is payable to the person nominated by
deceased to receive the gratuity or in absence of a
nomination to the spouse/civil partner or failing that to
the personal legal representative
• Death Gratuity is 3 x pensionable salary at death
Short-Term Pension
• Short-term pensions are payable where the
deceased member is married, in a civil partnership or
has a nominated partner or dependent child(ren)
• In order to qualify for a short-term pension members
must have at least 2 years qualifying service in the
scheme
• Short-term pensions are paid by the employer for a
duration of 3 or 6 months depending on
circumstances
Short-Term Pension
Category
Payee
Duration
(Months)
Rate of Pension
1
Spouse, Civil Partner or
Nominated Beneficiary
(No Children)
3
Annual rate of salary
on last day of
reckonable service
2
Spouse, Civil Partner or
Nominated Beneficiary
(1 Child or more)
3
As above x 2
3
No Spouse, Civil Partner
or Nominated Beneficiary
(1 Child or more)
6
As above at 1
Completing the DIS 2 Form
• SPPA should be notified of the death of a member on
form DIS 2
• At the same time form DTH APP 1 must be sent to
the deceased’s spouse, civil or nominated partner, or
the legal personal representative for completion and
return directly to the Agency
Completing the DIS 2 Form
• When completing
section 2 you should
ensure that you fully
complete the correct
details of the
spouse/civil partner or
legal personal
representative
Completing the DIS 2 Form
• In section 3 you are
required to enter the days
worked, the salary rate
and pensionable earnings
for the last 365 day
period prior to the date of
death
• You should also provide
details of any short-term
pension being paid
Continuing Pension
• Once the DIS2 and DTH APP1 forms are returned to the
agency, the award will be processed
• The SPPA will pay a long term pension from the day
after the short term pension stops if the member had
relevant family benefit service
Questions
Please feel free to ask any questions
now or via e-mail to:
teachersbenefits@scotland.gsi.gov.uk
NHS and Teachers New Contribution
Collection System
Overview of the new contribution
collections system
SPPA Action
Start
monthly
process
Move to
Employer’s
Action
System to generate an
email to every
employer 7 days
before due date
System to set
reminder trigger
date if SCAN
not received by
7th day after
due date
This will attach
Superannuation
collections advice
note (SCAN) to
email and transmit
to Employer
Employer’s Action
Electronic
Superannuation
collections
advice note
(SCAN) form
received from
SPPA
System set to
trigger warning
letters and/or
interest
charges, where
appropriate on
overdue
contributions.
Employer sends
completed SCAN back
to SPPA by email,
[Fax, post exceptional cases]
System set to
trigger reminder
if payment not
received by 7th
day after due
date
System auto
updates
employer
record with
SCAN details
Employer
transmits
contribution
payment by 7th
(Teachers) or
19th (NHS) of
each month
Payment of Pension
Contributions
•
Pension scheme contributions must be paid over to the Agency within a regulated time
period.
•
The SPPA’s overall target is 99%. This was achieved for FY 2008-09 – Thank-you to all
Employer’s who paid on time!
•
NHS:
Payment is due 19 days after the end of the month in which the contributions have been
deducted from salaries i.e. by the 19th of the month.
•
STSS:
Payment is due 7 days after the end of the month in which the contributions were deducted
from salaries i.e. by the 7th of the month.
•
Payment of these contributions can be made at the bank using a bank giro credit book,
provided by the Agency, or by electronic methods such as BACS. Larger employers who
have an OPG account can transfer payment using an RFT form (NB:This will change with
the new banking arrangement). Only in special circumstances will payment by cheque
be accepted.
•
Employers who do not make payment within the required time frame can either be charged
interest on their payment (STSS only) or reported to the Pensions Regulator (tPR) who have
powers to fine and/or take employers to court
How do I pay?
NOTE: Bank account details will be changing during March
1.
PAYMENTS BY ELECTRONIC BANKING
By BACS you must use the following:
SORT CODE
ACCOUNT CODE
10-14-99
08615000
Your unique identifier number must be entered in your payment instruction.
These details must not be used for CHAPS- same day payments
By CHAPS you must use the following:
SORT CODE
ACCOUNT NUMBER
16-53-60
08615000
Your unique identifier number must be entered in your payment instruction.
2.
PAYMENTS BY BANK GIRO CREDIT
If you use this method please adhere to all following instructions every month:
•
•
•
•
•
Use the green BSG pay-in book sent to your practice, as this instructs your bank to pay your
contributions into SPPA’s bank account.
Complete a pay-in slip, using carbon paper for the duplicate copy, which you keep.
Leave the section marked ‘Account Number’ blank.
Take the pay-in book to your bank with a cheque for the amount due.
Make the cheque payable to ‘The Scottish Public Pensions Agency’.
Contribution Finance Contacts:
Doug Wyngard
Income Team Leader 01896 893 257
Douglas.wyngard@scotland.gsi.gov.uk
Heather Rivera
Income Team Officer
01896 893 261
Heather.Rivera@scotland.gsi.gov.uk
Margery Inglis
Income Team Officer
01896 893255
Margery.Inglis@scotland.gsi.gov.uk
Fax number
01896-893260
Email (General)
SPPA-NHS-GP@scotland.gsi.gov.uk
Address
Finance
7 Tweedside Park
Tweedbank
Galashiels
TD1 3TE
FINAL WORD
• Every Employer will be communicated
with closer to the go-live date
•
Thank-you!