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

woolly_wombat

kfue5634 wrote: »

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?

Thanks for posting. Clearly this is an issue that is going to require vigilance.

I suggest you refer them to bulletin 107 (see SeekTruth's post for link). Extract:

[FONT=&quot]"This month we received a response from DCLG which stated that the additional pension purchased under all ARC contracts taken out pre 1 April 2012 should, in accordance with paragraph 10.2.10 of Annex A of the current GAD guidance is to be increased with reference to the RPI, both from the date of the first contribution to the date of the award of benefits, and once the additional pension is in payment"

[/FONT][FONT=&quot]That's why [FONT=&quot]significant increases[FONT=&quot] [FONT=&quot]were [/FONT]imposed [/FONT][/FONT][/FONT][FONT=&quot]from April 2013![/FONT][FONT=&quot]

Please let us know how you get on.

WW
[/FONT]

woolly_wombat

I just wondered whether any members, or deferred members, of the LGPS who purchased Additional Pension pre 1 April 2012 had received an annual pension statement?

If so, was the AP correctly revalued in line with RPI?

I haven't got mine yet, but my deferred pension is now administered by a shared arrangement with other local authorities and the last person I spoke to there wasn't very well informed on this issue.

WW

kfue5634

I queried the zero increase applied to my pension this year despite having an ARC component which is RPI linked. Lo and behold, the RPI increase has now been applied to the ARC amount!

woolly_wombat

kfue5634 wrote: »

I queried the zero increase applied to my pension this year despite having an ARC component which is RPI linked. Lo and behold, the RPI increase has now been applied to the ARC amount!

I have just received my Annual Deferred Benefit Statement for April 2016.

No RPI linkage has been shown for my (pre 1 April 2012) ARCs.

I wondered if anyone else is still similarly affected?

I shall be raising a query with the administering authority but I don't expect to hear back any time soon as I am aware from a recent conversation that they are struggling with workload pressures.

Anyone else similarly affected?

I had hoped that software updates would have been implemented by now to correct this.

hyubh

woolly_wombat wrote: »

I had hoped that software updates would have been implemented by now to correct this.

Out of mild interest, are they with Civica or Heywood (or someone else entirely)...? (Some sort of branding will likely be on the member self-service pages.)