Alpha EPA under Capita

Universidad

As we all know, there are bigger fish to fry at Capita HQ right now... But I'm just noting that I don't have my annual renewal letter for EPA.

The EPA page, here, still states:

The cost of buying an EPA is fixed each scheme year, but will change from year to year. We will automatically renew your EPA and write to you in February each year to tell you what your contributions will be for the following 12 months.

Obviously that deadline has come and gone.

Just wondering what's likely to happen next month. Presumably, given that the amount changes each year, if this isn't calculated then my employer won't know what to do come payroll.

Do I just not get this year's EPA? Will probably set up an AVC again if so, but how will I know what the final situation is?

hugheskevi

Just wondering what's likely to happen next month. Presumably, given that the amount changes each year, if this isn't calculated then my employer won't know what to do come payroll.

All guesswork, but I'd guess one of the following:

(1) It might be that instructions about the rate to deduct will be issued to payrolls, and Capita just didn't write to members to save effort.

(2) A central instruction to payrolls is issued as to what to do in the absence of a new rate from Capita. That is likely to be either carry on deducting same rate for now and sort out the correct rate and deduct arrears later in the year, or to use the EPA calculator available to members to enable employers to work out what the new deduction rate to apply should be and use that from the start of the year. The main issue will be members who have written to Capita to cancel their EPA - that group are likely to be actioned I suspect, as it would be easier to cancel now than it will be to fix later.

(3) No central instruction is issued, and employers have to decide what to do independently. This is the least likely outcome, as with over 300 employers the last thing anyone needs it every employer doing something different.

If I were a betting man, I'd bet that either new rates will be issued to employers, and if not, then a central instruction to employers will be issued telling them to calculate and apply a new rate themselves using the member calculator, with Capita sending member lists of EPA cancellations to employers - EPA is quite rare, so a manual solution like this is doable, and shifts the burden on to payrolls and away from Capita.

Universidad

On the grapevine today, (from someone in another part of government than me), their HR rep has told them that they'll continue taking EPA at the previous rate. That's all they know for now, not when/how it gets corrected later, or if there has been a central instruction on that. However, it looks like your instincts are probably on the money.