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Public Employees (Contributory Retirement Scheme) (General) (Amendment No. 12) (Jersey) Regulations 201-

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A decision made 9 March 2018:

Ministerial decision reference:   MD-C-2018-0050

Decision summary title:  Public Employees (Contributory Retirement Scheme) (General) (Amendment No. 12) (Jersey) Regulations 201-

Decision summary author

Projects Director – Pensions

States Treasury

Is the decision summary public or exempt?  

Public

Report title:  Public Employees (Contributory Retirement Scheme) (General) (Amendment No. 12) (Jersey) Regulations 201-

Report author or name of

person giving report

Projects Director – Pensions

States Treasury

Is the report public or exempt?

Public

Decision and reason for the decision

The Chief Minister approved for lodging ‘au Greffe’ the Draft Public Employees (Contributory Retirement Scheme) (General) (Amendment No. 12) (Jersey) Regulations 201-.

 

It has been identified by the Scheme Actuary that due to a technical change contained within the Public Employees (Pension Scheme) (Transitional Provisions, Savings and Consequential Amendments) (Jersey) Regulations 2015 some difficulty and unfairness has been created regarding the additional costs to the Scheme of paying voluntary early retirement (VER) benefit under Regulation 8. This was one of several sets of Regulations simultaneously introduced whose primary purpose was to create the new career-average pension scheme (PEPS) with effect from 1 January 2016 but the opportunity was taken within those Regulations to tidy up a number of the detailed provisions relating to the final salary scheme (PECRS) as at the same date.

 

Although the various sets of Regulations were reviewed on behalf of the Committee of Management by the Scheme Actuary, and the Fund’s legal advisors and at a high level by the Employer’s Actuary, the implications of this particular technical change were not picked up. Following consultation with the Committee of Management, the Scheme Actuary and the Employers Actuary it was agreed that the Regulations should be amended.

 

The change to the Regulations will require the Scheme Actuary to calculate the cost of a VER in a manner that is actuarially cost neutral to the Fund. This change will overcome the unfairness inadvertently introduced and future proof the way these capital costs are calculated.

 

It is proposed to make this amendment to the legislation retrospective to 1 January 2016, when the original change was implemented. The Law Officers Department has advised that this should not cause any difficulty as the change will not impinge on any individual’s rights, but rather be related to the amount that passes between the Employer and the Fund.

 

Resource implications

There are no resource implications of this decision.

 

 

Action required

To request the Greffier of the States to arrange for the draft Regulations to be lodged ‘au Greffe’ for debate by the States Assembly at the earliest opportunity.

 

Signature

 

 

 

 

 

Position

 

Senator Ian Gorst

Chief Minister

 

 

 

 

Date signed

 

Effective date of the decision

 

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