Increases to pension benefits
The increases to RPI and CPI inflation, calculated as the rise in the indices over the year Sep 16 to Sep 17, are likely to be used by many schemes to increase pensions in payment and revalue pension benefits pre retirement. The rates for 2018 are RPI inflation of 3.8% and CPI inflation of 3.0%.
Trustees, or their Scheme Administrators, are required to submit the Scheme Return on Exchange. The new section in this year’s Scheme Return asks trustees to report on the quality of their common and scheme specific data.
31 Mar 2018
30 Apr 2018
Ahead of the invoices being issued post summer for the new levy calculation, for the next three years 2018, 2019 and 2020, trustees are encouraged to check that all their scheme details are correct on Exchange by 31 Mar 2018. More importantly, amounts of Deficit Reductions Contributions (DRCs) paid since the last valuation have to be certified before 30 Apr 2018.
Administration and General Levy
The more affordable of the two levies, the Administration and General Levy will be invoiced for by the Pensions Regulator in May 2018. The two (or possibly three) elements of this levy are both calculated by applying a rate per member, usually of the order of £3 – £5 per member.