Treasury announces public sector contracted-out reconciliation requirements

Fri 04 Mar 2016

Schemes strongly advised to reconcile but only have until April 5 to join HMRC’s scheme service

According to documentation seen by Equiniti, who is currently managing Contracted-out reconciliation programmes for over 1/3rd of the UK’s contracted-out membership, the Treasury is recommending that all public sector pension schemes, including the Local Government Pension Scheme (LGPS), undertake a comprehensive reconciliation to ensure that contracted-out records are correct.

However, Equiniti warns that schemes only have until April 5 to join the HMRC Scheme Reconciliation Service (SRS); failure to sign up may mean that schemes are unable to obtain the data needed to perform the reconciliation exercise.

Contracted-out reconciliation is necessary because of the introduction of the single-tier pension, announced by the government on 18 March 2013. The reconciliation exercise will be the single biggest universal data audit to impact all public sector schemes.

While the Treasury has not made it compulsory, it has made it very clear that any Local Government Pension Scheme ‘sets out the reasons behind the decision’ should it opt to not follow the guidelines.

Duncan Watson, managing director and pension actuary, Equiniti: “Public sector pension schemes, including the LGPS, now have clear guidance on what is expected. However, for many they must now act very quickly or they will miss the deadline for HMRC support. Once they have registered with HMRC and received their scheme’s date, they must carry out a detailed analysis in order to determine the amount of resource that the reconciliation phase will require. This will be a significant strain on schemes, at a time when most administering authorities are struggling to do more with less resource. ”


ENDS

 

For more information please contact:

Alban P Maginness
Group PR Manager, Equiniti
Tel: 00 44 748394934
Email: alban.maginness@equiniti.com

Vaughan Andrewartha or Tasmyn Gibson
Votive Communications
Tel: 0207 248 6058
Email: vaughan@votive.co.uk / tasmyn@votive.co.uk

 

Notes to Editor

About Equiniti

Equiniti keeps things running smoothly behind the scenes for some of the best-known brands and public sector organisations in the UK.

We specialise in providing finely-tuned finance and administration services, as well as smart technology solutions, in complex and regulated markets.
Our services are delivered by 3,500 employees across 29 office locations, enabling us to offer solutions that are flexible, adaptable and scalable.

We are acknowledged leaders in the pension services market and in the share registration market, where our clients include around half the FTSE 100.

Our mission is to make the complex simple.

www.equiniti.com