Local Government Pension Scheme - Increase in ARC's from April 2013

spearce96

I agree the guidance is clear that rpi should be used. I have spoken to brian town at dclg regarding this and he has confirmed that the tables initially provided costed in rpi and that link should be kept. The problem being that does a contract you entered into override an act of parliament. I have looked into this and it is looking very doubtful the link to rpi will be kept. Dclg lawyers have been looking at this for the past month and the longer it takes them to decide the more worried I get.

woolly_wombat

spearce96 wrote: »

I agree the guidance is clear that rpi should be used. I have spoken to brian town at dclg regarding this and he has confirmed that the tables initially provided costed in rpi and that link should be kept. The problem being that does a contract you entered into override an act of parliament. I have looked into this and it is looking very doubtful the link to rpi will be kept. Dclg lawyers have been looking at this for the past month and the longer it takes them to decide the more worried I get.

Misselling?

WW

woolly_wombat

spearce96 wrote: »

I agree the guidance is clear that rpi should be used. I have spoken to brian town at dclg regarding this and he has confirmed that the tables initially provided costed in rpi and that link should be kept. The problem being that does a contract you entered into override an act of parliament. I have looked into this and it is looking very doubtful the link to rpi will be kept. Dclg lawyers have been looking at this for the past month and the longer it takes them to decide the more worried I get.

Hi spearce96.

Have you heard any more about the attempt to override the rpi link 'hard-coded' in the GAD rules for pre April 2012 LGPS Additional Pension purchased via ARCs?

I have had a look at LGPC bulletin 101 on the LGA website but I can find no mention of it:
http://www.local.gov.uk/web/workforcelibrary/lgpc-bulletins

WW

spearce96

Hi WW

I have still not heard anything more and it has been 2 months since gad/dclg have referred this to their lawyers. I chased a couple of weeks ago but there was no further information, I will post if I hear anything.

spearce96

I heard back from dclg and it looks like RPI will be being used for arc contracts entered into before 2012!:T

woolly_wombat

spearce96 wrote: »

I heard back from dclg and it looks like RPI will be being used for arc contracts entered into before 2012!:T

Thank you very much for posting spearce96. No doubt legal experts will have been studying this aspect of LGPS very carefully.

WW

SeekTruth

spearce96 wrote: »

I heard back from dclg and it looks like RPI will be being used for arc contracts entered into before 2012!:T

See Bulletin 107 (http://www.local.gov.uk/web/workforcelibrary/lgpc-bulletins). Includes statement:

DCLG went on to confirm that “we are of the view that the Pensions (Increase) Act 1971 does not prevent differential treatment” i.e. the Act does not debar a different increase (RPI) being applied to a pre 1 April 2012 ARC benefit and CPI to other pensions.

kfue5634

I am currently in receipt of an LGPS pension and an additional amount purchased via ARC (started in 2010). CPI increases were applied in April 2015 to both the main pension and the ARC amount, but when I queried the ARC increase this was changed to RPI.
However I have now received a letter saying that this was incorrect and that although they will honour this year's ARC increase, it will be CPI linked in future. Does anyone have any information on this change from RPI to CPI despite having purchased an RPI linked amount?

Teaandscones

There does seem to be a problem with the national software regarding LGPS pensions in relation to ARCS. My annual statement didn't reconcile with my own spreadsheet of pension benefits, and after some correspondence with the pensions administrators they agreed that the national software was wrong as it only uprated ARCS by CPI and not RPI. Apparently, they are discussing this in September to look at updating the software.

hyubh

Teaandscones wrote: »

There does seem to be a problem with the national software regarding LGPS pensions in relation to ARCS.

By the by, there's no 'national software regarding LGPS pensions', however a number of authorities have switched software supplier in the past couple of years (the market used to be dominated by one player, less so nowadays).