Employers' Guide

Section 19 - Services TP Can Provide To Employers

1. Workshops 2. Training Staff to Carry Out their Role 3. Presentations to Scheme Members 4. Assistance with Annual Returns 5. Administration of Mandatory Compensation Payments 6. Contacts

1. Seminars / Workshops

Staff from TP present a programme of seminars and workshops at locations around the country. The purpose of these is to provide those involved in its administration, with in-depth interactive training, and make them aware of employers’ responsibilities to teachers and the Scheme.

Employers Role and Responsibility Seminar - As a direct result of representations made by a number of employers, Teachers’ Pensions has designed a seminar aimed specifically at less experienced administrators of the Teachers’ Pension Scheme. The seminar will highlight an employers’ role and responsibility, demonstrate the scheme requirements, and assist in the understanding of your obligations to the scheme and its members. It will cover, background and overview of the scheme, starters and leavers, forms and leaflets, facilities of the scheme, contributions and audit certification, annual return, Secure Transfer Utility and the website.

The workshops are:

Provision of Data – suitable for those involved in payroll type functions, including external payroll providers, and will cover, starters/leavers, contributions, end of year certificates, TR17/17a's, and annual return.

Retirement Flexibilities – this will cover; the background to the Scheme, employer responsibilities, absences from work, average salary and retirement calculations, ill-health process, re-employment and how employers can use the flexibilities of the Scheme to manage workforce planning.

The workshops not only give attendees the opportunity to gain some hands on experience but also provide the opportunity to make contact with others who also administer the scheme in their locality.

In addition, time is made available for questions to be asked of the presenters and for issues to be raised. This provides useful learning and discussion.

You can find details of the dates and locations of 2010 workshops here. If you are interested in attending one of more of the workshops please email keith.fenney@teacherspensions.co.uk who will send out a booking form for you to complete and return via e-mail. Confirmation of your place will then be sent to you. Alternatively you can download the booking form here .

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2. Training Staff to Carry Out their Role

TP can provide training, or refresher sessions, in your own establishments, for staff who have responsibility for the administration of the scheme. This training is particularly beneficial to employers who have experienced a turnover of staff, those who want to involve more staff in scheme administration, or those undergoing restructuring and reorganisation.

The training can be tailored to suit your individual requirements, but can include:

Appointments – how to notify TP, and what information should be provided to new starters
Leavers – how and when to inform TP
Deduction of contributions
Scheme events
TP Online
Secure Transfer Utility
Completion of the Annual Return
End of Year Certificates
Completion of the Audit Certification (TR17/17a’s)
How to make use of the Scheme website
How to guide teachers’ to obtain estimates of retirement benefits

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3. Presentations to Scheme Members

TP are often asked to attend the premises of employers to present information about the pension scheme provisions to Scheme members. Our experienced staff can present information tailored to suit your individual requirements depending on particular circumstances. These presentations can be aimed at all staff, a targeted group, or on a one to one basis.

A common format is for a formal presentation with time for questions and answers, followed by a schedule of one to one consultations for those members who want to discuss their personal circumstances privately.

4. Assistance with Annual Returns

All annual returns of teachers’ service and salary data must be submitted to TP by 31 August. TP are aware that some employers lack the expertise, and sometimes the resources, to achieve this timescale.

TP staff can come to your premises to assist with the completion and submission of the return, or compile it on your behalf.

Alternatively, TP can undertake the completion from their own premises using basic information supplied by you, which can be amalgamated into existing records.

You are invited to contact TP to explore how we can provide you with assistance to achieve the deadline.

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5. Administration of Compensation Payments

TP can provide a payment administration service of either mandatory, or discretionary compensation, or both if you are an employer within the maintained sector. Reimbursement of the member’s benefits can be made by one of three ways:

Option A – Pay as you go, which is invoiced quarterly
Option B – a single actuarially determined lump sum payment to be made in full on receipt of invoice
Option C – an actuarially determined lump sum broken down into annual instalments including a nominal interest charge payable over 2 – 5 years

If you decide on Option A, you will be required to reimburse TP for the lump sum payment before TP pays the member.

Should payment be made using Option B or C, the value of the pension would need to be capitalised using actuarial factors based on life expectancy. The factors and an example are available here.

There would be no refund of any portion of the actuarial amount if the teacher dies within a short period of retirement.

If you are an employer in the non-maintained sector, this service is only available in respect of mandatory compensation and payment must be made by one payment of the capitalised cost. You will need to make your own arrangements in respect of any discretionary or additional compensatory payments.

It is also open for TP to take over the administration of your existing mandatory or discretionary pension payroll.

TP charge an annual administration fee of £92.79 plus vat per teacher per year for providing the full service. If however, you wish TP to only administer discretionary payments, the fee is £28.87 plus vat per teacher per year.

It is important for you to be aware that the fee for administering discretionary payments will continue to be payable throughout the life of any subsequent beneficiary payments, but the cost of administering mandatory compensation payments will cease upon the death of the teacher.

You should also note that, if you would like TP to administer payments on your behalf, you will be required to enter into a contractual arrangement with Teachers’ Pensions.

Benefits of TP providing this service

For the Pensioner:

Both pensions are paid from one source
TP have a dedicated call centre for pensioners to ring with any queries

For the employer:

A full administration service to include all payment queries, tax, NI, Pensions Increase, and personal detail changes
TP ensure that pensions are ceased in a timely manner upon notification of bereavement, with any applicable family benefits put into payment
TP conduct re-employment monitoring. You may not be made aware of a pensioner being re-employed in another establishment. If a pensioner is re-employed without your knowledge this can cost you money. TP are able to monitor this effectively as we hold relevant employment records and are made aware of any changes to circumstances.

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