You will have received our letter of 23 September 2016 which provides details of your organisation's deficit contributions and share of the scheme expenses payable from 1 April 2017. We also enclosed a Valuation Summary which sets out the final 2015 valuation position and confirms the changes to the future service contribution rates.
Copies of the Summary document and Headlines briefing note are available here
Next steps for employers
Your organisation will be considering if it needs or wishes to take any action before 1 April 2017 such as:
- continuing to offer the existing arrangements and therefore an increase in the total future service contribution rate will apply; OR
- closing a defined benefit section and introducing an alternative defined benefit or defined contribution section.
An increase in the member contribution rate, changing the basis of future accrual or stopping further accrual for some or all members are just some examples of ‘listed changes’ which trigger the requirement to consult with staff. More details are available in the Valuation Summary.
We encourage all employers to carry out the appropriate consultation with staff.
Even if you are not making a change to the benefits being offered, TPT Retirement Solutions requires all employers to submit an Employer Form of Authority confirming the split of the future service contribution rates to TPT by 31 January 2017.
We are unable to increase the member contribution rate without a completed Form of Authority. If the form is not returned within the deadline, the total increase will be applied to the employer contribution and the member contribution will remain at its current level.