Public
Employees (Pension Scheme) (Funding and Valuation) (Jersey) Regulations 2015
Made 17th November 2015
Coming into force in accordance with Regulation 21
THE STATES, in pursuance of Articles 2, 4, 5, 6 and 7 of, and Schedule 1
to the Public Employees (Pensions) (Jersey) Law 2014[1] and Article 3 of the Public
Employees (Retirement) (Jersey) Law 1967[2], have made the following
Regulations –
PART 1
interpretation
1 Interpretation
In these Regulations, unless the context indicates otherwise –
“1st commencement date” means 1st
January 2016;
“2nd commencement date” means 1st
January 2019;
“1967 Scheme” has the meaning given in Article 1(1) of the Law;
“1967 Regulations” means
the Public Employees (Contributory Retirement Scheme) (Jersey) Regulations 1967[3];
“1967 Scheme benefits”
means retirement benefits accrued under the 1967 Scheme;
“1967 Scheme employer” means an
employer –
(a) who,
before the 1st commencement date, was admitted
to the 1967 Scheme under repealed Regulation 9 of the General
Regulations;
(b) who, before the 1st
commencement date, was treated as if admitted to the 1967 Scheme under any
enactment which provided for that employer to become an employer for the
purposes of that scheme in respect of members of that scheme whose employment
with the States Employment Board was transferred to that employer; or
(c) who is treated as if
admitted to the 1967 Scheme under Regulation 7 of, and paragraph 2(5)
of Schedule 1 to, the Membership and Benefits Regulations;
“1967 Scheme Regulations”
has the meaning given in Article 1(1) of the Law;
“1992 Regulations” means
the Public Employees (Contributory Retirement Scheme) (Former Hospital Scheme)
(Jersey) Regulations 1992[4];
“accrual rate” shall be
construed in accordance with Regulation 7;
“active member” has the same
meaning as in Regulation 1 of the Membership and Benefits Regulations;
“Actuary” means a person
appointed in accordance with Regulation 10 of the Administration
Regulations, to give actuarial advice in respect of the fund;
“Administration Regulations”
means the Public Employees (Pension Scheme) (Administration) (Jersey) Regulations 2015[5];
“Administrator” shall be
construed in accordance with Regulation 19 of the Administration
Regulations;
“admitted employer” means an
employer other than the States Employment Board –
(a) admitted to the Scheme
under –
(i) Regulation 7 of, and paragraph 2(1)
of Schedule 1 to, the Membership and Benefits Regulations,
(ii) Regulation 16(1) of the Transitional
Regulations, or
(iii) Article 10(5) of the Law;
(b) treated as if admitted
to the Scheme under any enactment which provides for that employer to become an
employer for the purposes of the Scheme in respect of members of the Scheme
whose employment with the States Employment Board is transferred to that
employer; or
(c) who is a 1967 Scheme
Employer;
“AIRPI” means the All
Items Retail Prices Index Rate for Jersey as recorded over the year to
September of the year preceding the annual pension increase;
“annual pension increase” shall
be construed in accordance with Regulation 8;
“assets” means anything tangible
or intangible that is owned or controlled to produce an economic value (including
investments, debts or cash);
“category A
member” and “category B member”
has the meaning given in Regulation 1 of the Existing Members Regulations
and Regulation 1 of the New Members Regulations;
“category C member” has the
meaning given in Regulation 1 of the New Members Regulations;
“Committee” shall be construed
in accordance with Article 4 of the Law and Regulation 2 of the
Administration Regulations;
“continuing members of the 1967 Scheme”
means contributing members of that scheme construed in accordance with Regulation 3(2)(b)
of the Transitional Regulations;
“contributing members of the 1967 Scheme”
means a –
(a) contributory member;
(b) category A member, category B member, or category C member;
(c) “member” within the meaning of Regulation 1
of the Existing Members Regulations and Regulation 1 of the New Members
Regulations, who is not a category A, category B or category C
member; and
(d) “member” within the meaning of Regulation 1
of the 1992 Regulations;
“contributory member” has the
meaning given in Regulation 4 of the 1967 Regulations;
“deferred or pensioner members of the
Scheme” shall be construed in accordance with Regulations 11 and 12
respectively of the Membership and Benefits Regulations;
“deferred or pensioner members of the 1967 Scheme”
means –
(a) in the case of a
deferred member of that scheme, a person who –
(i) has ceased to make contributions under the
1967 Scheme Regulations, and
(ii) is not in receipt of retirement benefits
under those Regulations;
(b) in the case of a
pensioner member of that scheme, a person who is in receipt of retirement
benefits under the 1967 Scheme Regulations (regardless of whether or not
he or she is an active member of the Scheme);
“employer” means an admitted
employer or the States Employment Board;
“Existing Members Regulations”
means the Public Employees (Contributory Retirement Scheme) (Existing Members)
(Jersey) Regulations 1989[6];
“funding level” shall be
construed in accordance with Regulation 17;
“funding strategy statement” has
the meaning given in Regulation 2;
“General Regulations” means the
Public Employees (Contributory Retirement Scheme) (General) (Jersey) Regulations 1989[7];
“Law” means the Public Employees
(Pensions) (Jersey) Law 2014[8];
“liabilities” means the costs of
future benefits and other outgoings payable under the respective schemes,
accrued as at the valuation date;
“members of the respective schemes”
means active members of the Scheme and continuing members of the 1967 Scheme;
“Membership and Benefits Regulations”
means the Public Employees (Pension Scheme) (Membership and Benefits) (Jersey) Regulations 2015[9];
“Minister” means the Chief
Minister;
“New Members Regulations” means
the Public Employees (Contributory Retirement Scheme) (New Members) (Jersey) Regulations 1989[10];
“nominated cohabiting partner”
has the meaning given in Regulation 3 of the Membership and Benefits
Regulations;
“ordinary member” means an
active member of the Scheme who is not a uniformed member;
“pensionable earnings” has the
same meaning as in Regulation 4 of the Membership and Benefits Regulations;
“pension record” is a record
established and maintained in accordance with Regulation 20 of the
Membership and Benefits Regulations;
“pensionable service” in relation
to the Scheme, means a period of Scheme employment computed in years and
complete days;
“pre-1988 liability” shall be
construed in accordance with Schedule 5;
“prudent assumptions” means
actuarial assumptions that are more likely to overestimate than underestimate
the amount of money actually required to meet the costs of funding the
liabilities of the Scheme;
“rates and adjustments certificate”
means a certificate produced in accordance with Regulation 3;
“relevant trade unions” means
any organization within the meaning of Article 3 of the Employment
Relations (Jersey) Law 2007[11] whose membership consists
(whether wholly or mainly) of members of the respective schemes;
“repealed Regulation 9 of the
General Regulations” means Regulation 9 of the General Regulations as
it was in force immediately prior to its repeal by the Transitional Regulations;
“respective schemes” has the
meaning given in Article 1(1) of the Law, and “schemes” shall be construed accordingly;
“revaluation rate” shall be
construed in accordance with Regulation 9;
“Scheme” means the Public
Employees Pension Scheme referred to in Article 2(1) of the Law;
“Scheme employment” means
employment by virtue of which a person is entitled to be a member of the Scheme;
“scheme year” means a period of
12 months beginning on 1st January and ending 31st December;
“transition members” means contributing
members of the 1967 Scheme who become members of the Scheme in accordance
with Regulation 2 or 3(2)(a) or (c) of
the Transitional Regulations;
“Transitional Regulations” means
the Public Employees (Pension Scheme) (Transitional Provisions, Savings and
Consequential Amendments) (Jersey) Regulations 2015[12];
“Treasurer” means the Treasurer
of the States;
“uniformed member” in relation
to the Scheme has the same meaning as in Regulation 1 of the Membership
and Benefits Regulations;
“valuation” has the meaning
given in Regulation 3(1);
“valuation date” means the date as at which the Actuary
carries out a valuation of the fund in accordance with Regulation 3(1) or
5(1);
“valuation of the fund” means an actuarial
valuation of the fund by reference to the assets and liabilities of the
respective schemes.
part 2
funding
strategy and valuations
2 Funding
strategy statement
(1) The Committee
shall instruct the Actuary to prepare a written statement setting out the funding
strategy for the respective schemes (the “funding strategy statement”).
(2) The
funding strategy statement shall –
(a) following
consultation with the Treasurer, be agreed by the Committee and the Minister
for Treasury and Resources, and published by the Committee by no later than
31st December 2017;
(b) be
kept under review by the Committee and –
(i) following
a material change to any of the matters contained in the statement, the Actuary
shall make such revisions as are appropriate and consulted upon and agreed in
accordance with sub-paragraph (a),
(ii) if
revisions are made, the Committee shall publish the statement as revised;
(c) set
out the following matters –
(i) subject
to paragraph (3), the methodology for the allocation of employer and
member contributions made under the respective schemes, towards the costs of
funding benefits under the respective schemes over a specified period,
(ii) the
methodology for maintaining, within the caps specified under Regulation 16,
the sharing of the respective costs of employer and member contributions on an
expected ratio of 2:1 with “2” being the employer proportion of contributions
and “1” being the member proportion of contributions,
(iii) the
methodology for the allocation of administration, investment management and
other costs attributable to the funding of benefits under the respective
schemes,
(iv) the overarching
principles for the setting of assumptions to be applied to the actuarial
valuation of the fund, which shall include the use of prudent assumptions in
relation to the costs of funding benefits under the Scheme,
(v) the
overarching principles for the setting of assumptions for the purposes of
calculating –
(A) the
value of retirement benefits transferred under Regulations 22 or 23 of the
Administration Regulations,
(B) amounts
payable in respect of additional voluntary contributions required under Regulation 15
of the Membership and Benefits Regulations or equivalent provisions under the 1967 Scheme
Regulations,
(C) the
amount by which retirement benefits are actuarially reduced where those
benefits are paid early under Regulations 29, 30 or 32 of the Membership
and Benefits Regulations, or equivalent provisions under the 1967 Scheme
Regulations,
(vi) the degree
of prudence to be applied when setting key financial assumptions for the
purposes of actuarial valuations,
(vii) the methodology
for adjusting –
(A) the
annual pension increase rates and contribution rates for the respective schemes,
and
(B) the future
accrual rate and revaluation rate for the Scheme,
(viii) the
identification of risks to the solvency of the fund and mitigation of such
risks,
(ix) the process
for implementing any adjustments to any of the rates
specified in the rates and adjustments certificate,
(x) the
methodology for accounting for the costs of funding benefits attributable to –
(A) transfer
payments out of the fund under Regulation 22 of the Administration
Regulations, and
(B) transfer
payments credited to the fund under Regulation 23 of those Regulations.
(3) This
paragraph sets out what matters the Actuary must include within the methodology
for the allocation of member and employer contributions referred to in paragraph (2)(c)(i),
as follows –
(a) the
proportion of employer and member contributions received under the respective
schemes that shall be required to fund –
(i) the
costs of applying the interim contribution rates set out in paragraph 5(3)
and (4) of Schedule 1 in respect of the 1967 Scheme,
(ii) the
costs of applying the transitional contribution rates set out in Schedule 3
in respect of the continuing members of the 1967 Scheme,
(iii) the
costs of 1967 Scheme benefits accrued after the 2nd commencement date in
respect of continuing members of the 1967 Scheme, and
(iv) the
costs of providing survivor benefits to a nominated cohabiting partner under Regulation 11
of the Transitional Regulations; and
(b) the
proportion of employer and member contributions received under the respective schemes
that shall, in the sequence set out in this sub-paragraph, be required –
(i) firstly,
to fund 1967 Scheme benefits accrued (without any increase or reduction to
those benefits) in respect of –
(A) continuing
members of the 1967 Scheme,
(B) contributing,
deferred or pensioner members of the 1967 Scheme, and
(C) contributing
members of the 1967 Scheme who become active members of the Scheme under Regulation 2, 3(2)(a) or (c) or 4 of the Transitional
Regulations,
(ii) secondly,
after clause (i) is achieved, to fund –
(A) the accrued retirement benefits
under the Scheme (as increased by the annual pension increase at a minimum rate
of 50% of AIRPI) of deferred or pensioner members of the Scheme, and
(B) the accrued
retirement benefits under the Scheme (as revalued by a minimum rate of 50% of
(AIRPI + 1%)) of active members of the Scheme, and as subsequently
increased by the annual pension increase at a minimum rate of 50% of AIRPI,
when those members become deferred or pensioner members of the Scheme, and
(iii) thirdly,
after clauses (i) and (ii) are achieved, to fund the future accrual of benefits
under the respective schemes.
3 Actuarial
valuations
(1) The
Committee shall instruct the Actuary to prepare –
(a) a
valuation of the fund as at 31st December 2016, 31st December 2018
and 31st December 2021, and thereafter at intervals of not more than
3 years;
(b) a
report in respect of the valuation; and
(c) a
rates and adjustments certificate, and
those documents shall collectively be
referred to as the “valuation”.
(2) In
preparing each of the documents specified in paragraph (1), the Actuary
must have regard to –
(a) the
existing and prospective liabilities of the fund in relation to the respective
schemes; and
(b) the
funding strategy statement (as revised from time to time).
(3) Subject
to Regulation 4(3) and (5), the valuation must be presented to the
Minister by the Committee before the expiry of 15 months after the
valuation date, and the Minister shall lay a copy the valuation before the
States as soon as practicable thereafter.
(4) A
report under paragraph (1)(b) shall –
(a) separately
identify the assets and liabilities of the respective schemes;
(b) contain an assessment
of whether any change in the fund’s funding level is due to long-term trends of
a demographic, investment or other nature;
(c) contain an assessment
of whether the accrual of future benefits under the respective schemes is
affordable within the contribution cost caps referred to in Regulation 16(1).
(5) A
rates and adjustments certificate under paragraph (1)(c) is a certificate which
specifies any adjustments to –
(a) the
accrual rate for the Scheme;
(b) the
rates for the annual pension increase for the respective schemes;
(c) the
employer and member contribution rates (expressed as a percentage of
pensionable earnings) for the respective schemes; and
(d) the
revaluation rate for the Scheme,
without the need to amend these Regulations or the 1967 Scheme
Regulations (as the case may be).
(6) Subject
to Regulation 17 and 18 (if applicable), the Actuary shall, when
preparing the rates and adjustments certificate, specify any adjustments –
(a) to
the accrual rate subject to Regulations 7(2) and 12(3);
(b) to
the annual pension increase rates subject to the minimum and maximum
percentages of AIRPI specified in Regulation 8 and Regulation 12(3);
(c) to
the employer and member contribution rates subject to Regulations 11, 12(4),
13(2), 14(2) and 15(2);
(d) to the revaluation rate
subject to Regulations 9 and 12(3).
(7) The
contribution rates referred to in paragraph (5)(c) shall specify a primary
and secondary rate, where –
(a) the
primary rate of employer and member contributions is the amount required to
fund the cost of future accrual of benefits under the respective schemes which,
according to the methodology set out in the funding strategy statement, should
be paid to the fund, expressed as a percentage of pensionable earnings; and
(b) the
secondary rate of employer and member contributions is the percentage of
pensionable pay by which, according to the methodology set out in the funding
strategy statement, contributions at the primary rate should be increased or
reduced (as the case may be) to fund the costs of –
(i) 1967 Scheme benefits
(without any reduction to those benefits) accrued in respect of –
(A) deferred
or pensioner members of the 1967 Scheme,
(B) continuing
members of the 1967 Scheme,
(C) contributing
members of the 1967 Scheme up to the 2nd commencement date, and
(D) contributing
members of the 1967 Scheme who become active members of the Scheme under Regulation 2, 3(2)(a) or (c) or 4 of the Transitional
Regulations,
(ii) the accrued retirement benefits of deferred
or pensioner members of the Scheme, as increased by the annual pension increase
at a minimum rate of 50% of AIRPI, and
(iii) the
accrued retirement benefits of active members of the Scheme –
(A) as
revalued by a minimum rate of 50% of (AIRPI + 1%), and
(B) as
subsequently increased by the annual pension increase at a minimum rate of 50%
of AIRPI, when those members become deferred or pensioner members of the
Scheme.
4 Agreement
as to the setting of assumptions for actuarial valuations
(1) In
the course of preparing a valuation under Regulation 3, the Actuary shall –
(a) consult
with the Committee, the Minister for Treasury and Resources and the Treasurer;
and
(b) determine,
having regard to the funding strategy statement, an appropriate set of
assumptions to be applied in respect of the valuation.
(2) In
relation to the costs of funding the Scheme the Actuary shall, following the
consultation referred to in paragraph (1)(a), determine the prudent assumptions
to be applied in respect of the valuation but must secure the agreement of –
(a) the
Committee; and
(b) the
Minister for Treasury and Resources,
before applying those assumptions.
(3) If
upon the expiry of 18 months from the valuation date no agreement is secured
under paragraph (2), the Minister shall request the President of the
Institute and Faculty of Actuaries (the “Institute”) to nominate a fellow of
the Institute, to determine the prudent assumptions that shall apply in default
of any agreement.
(4) In
relation to the costs of funding the 1967 Scheme the Actuary shall,
following the consultation referred to in paragraph (1)(a), determine the
assumptions to be applied in respect of the valuation and shall aim to reach agreement
with –
(a) the
Committee; and
(b) the
Minister for Treasury and Resources,
before applying those assumptions.
(5) If
upon the expiry of 12 months from the valuation date no agreement is reached
under paragraph (4), the Actuary’s determination shall apply in default of
any agreement.
5 Actuarial valuations at the request of
the Minister
(1) Notwithstanding
Regulation 3, the Minister may require the Committee to instruct the Actuary
to undertake a valuation of the fund as at any date.
(2) Where
paragraph (1) applies, the provisions of Regulations 3 and 4
(including any adjustment to the rates specified in the rates and adjustments
certificate) shall operate as if the valuation had been carried out under Regulation 3.
6 Implementation
of rates and adjustments certificate
The Administrator shall by 1st January not
later than the 3rd year following the valuation date, apply all the rates specified in the rates and
adjustments certificate for that valuation.
part 3
rates
7 Scheme
accrual rate
(1) “accrual rate” means the rate, expressed as a fraction of
pensionable earnings, at which pension benefits build up per £1.00 of pensionable
earnings paid in each scheme year for each year of pensionable service.
(2) Subject to Regulation 12 and paragraph 1 of Schedule 1, the
accrual rate shall be such rate as is specified in the rates and adjustments
certificate and the Actuary may at any valuation adjust the accrual rate subject to –
(a) the methodology as referred
to in Regulation 2(2)(c)(vii) and 2(3)(b)(i) and(ii);
(b) following the process as
referred to in Regulation 2(2)(c)(ix); and
(c) Regulation 16,
provided that adjusted rate is not greater
than 1/66th.
8 Annual
increases in pension
(1) Subject
to Regulation 12 and paragraph 2 of Schedule 1, all retirement
benefits in payment and all deferred retirement benefits under the respective
schemes shall be increased on 1st January each year by the rate referred to in paragraph (2)
(the “annual pension increase”).
(2) The annual
pension increase to be applied shall be a rate expressed as a percentage of
AIRPI specified in the rates and adjustments certificate, subject to the
minimum and maximum percentages of AIRPI specified in paragraphs (3) and
(4).
(3) In
respect of the Scheme, the percentage of AIRPI to be specified in the rates and
adjustments certificate for the purposes of applying the annual pension increase,
shall be a minimum of 50% of AIRPI up to and including a maximum of 100% of
AIRPI.
(4) In
respect of the 1967 Scheme, the percentage of AIRPI to be specified in the
rates and adjustments certificate for the purposes of applying the annual
pension increase, shall be a minimum of 0% of AIRPI up to and including a
maximum of 100% of AIRPI.
9 Revaluation rate
(1) This
Regulation applies to the revaluation of retirement benefits under the Scheme.
(2) By no
later than 31st December of every scheme year, the opening balance of an active
member’s pension record for that scheme year shall be revalued by the rate
referred to in paragraph (3) (the “revaluation rate”).
(3) Subject
to Regulation 12 and paragraph 3 of Schedule 1, the revaluation
rate to be applied shall be (AIRPI + 1%) multiplied by a percentage rate of between
50% and 100% as shall be determined by the Actuary and specified in the rates
and adjustments certificate.
(4) In paragraph (2),
“opening balance” means the amount of benefits accrued in the active member’s
pension record as at the beginning of the scheme year.
10 Negative
AIRPI
(1) This
Regulation applies where AIRPI is recorded at less than 0%.
(2) Where
this Regulation applies, for the purposes of Regulations 8 and 9 the
AIRPI to be applied shall be taken to be 0%.
11 Employer
and member contribution rates
(1) For
the purposes of this Regulation –
(a) “uniformed
members of the respective schemes” in relation to –
(i) an
active member of the Scheme, means a uniformed member, and
(ii) a
continuing member of the 1967 Scheme, means –
(A) a category A member
and category B member within the meaning of Regulation 1 of the Existing
Members Regulations or Regulation 1 of the New Members Regulations,
(B) a category C
member within the meaning of Regulation 1 of the New Members Regulations,
or
(C) a contributory
member within the meaning of Regulation 4 of the 1967 Regulations,
in respect of whom Regulation 17, 18, 19, 20 or 20A of those
Regulations applies;
(b) “ordinary
members of the respective schemes” in relation to –
(i) an
active member of the Scheme, means an ordinary member, and
(ii) a
continuing member of the 1967 Scheme, means –
(A) a member within the meaning of Regulation 1 of the Existing
Members Regulations or Regulation 1 of the New Members Regulations, who is
not a category A, category B or category C member,
(B) a member within the
meaning of Regulation 1 of the 1992 Regulations, or
(C) a
contributory member within the meaning of Regulation 4
of the 1967 Regulations, in respect of whom Regulation 17, 18, 19, 20
or 20A of those Regulations does not apply; and
(c) for the purposes of the
calculation under the formula set out in paragraph (3)(d), the reference
to pensionable earnings shall be taken to be a reference to pensionable earnings
paid over the scheme year to the valuation date.
(2) Subject
to –
(a) Regulation 12
and paragraphs 4 and 5 of Schedule 1;
(b) Regulation 13
and Schedule 2;
(c) Regulation 14
and Schedule 3; and
(d) Regulation 15
and Schedule 4,
employers and members of the respective
schemes must pay contributions of such an amount as is specified in the rates
and adjustments certificate, expressed as a rate equivalent to a percentage of
pensionable earnings of all members of the respective schemes.
(3) For
the purposes of paragraph (2) the rates and adjustments certificate must
specify –
(a) the employer contribution
rate in respect of all members of the respective schemes;
(b) the member contribution
rate in respect of uniformed members of the respective schemes (“MCUM”);
(c) the
member contribution rate in respect of ordinary members of the respective
schemes (“MCOM”); and
(d) the
member aggregated contribution rate which shall be calculated in accordance
with the following formula –
= member aggregated contribution rate.
(4) For
the purposes of the employer contribution cost cap under Regulation 16(1)(a),
the employer contribution rate specified in the rates and adjustments certificate
must not exceed 16.5% of pensionable earnings of all members of the respective
schemes.
(5) Subject to paragraph (6),
for the purposes of the member contribution cost cap under Regulation 16(1)(b),
the member aggregated contribution rate specified in the rates and adjustments
certificate must not exceed 8.25% of pensionable earnings of all members of the
respective schemes.
(6) Paragraph (5)
shall not apply where the member contribution cost cap is increased under Regulation 16(4),
but in the event that it is so increased, the member aggregated contribution
rate to be specified in the rates and adjustments certificate must not exceed
the member contribution cost cap as so increased.
(7) An employer shall pay
to the Administrator the relevant amount of employer contribution according to –
(a) the
employer contribution rate specified in the rates and adjustments certificate;
(b) the
interim contribution rates specified in paragraphs 4(3) and 5(3) of Schedule 1;
or
(c) the
transitional contribution rates specified in Schedule 4,
by no later than the end of the month
following the month in which the contribution falls due.
(8) An employer shall pay
to the Administrator the relevant amount of member contribution deducted from
members’ pensionable earnings according to –
(a) the
MCUM or MCOM rate (as the case may be) specified in the rates and adjustments
certificate;
(b) the
interim contribution rates specified in paragraph 4(4) or (5) and 5(4)
of Schedule 1; or
(c) the
transitional contribution rates specified in Schedules 2 and 3,
by no later than the end of the month
following the month in which the contribution is deducted.
12 Interim
rates
(1) Schedule 1 sets out –
(a) the annual pension increase rate in respect
of retirement benefits under the 1967 Scheme;
(b) the annual pension increase rate in respect
of retirement benefits under the Scheme;
(c) in respect of the Scheme –
(i) the accrual rate, and
(ii) the revaluation rate; and
(d) the employer and member contribution rates
under the respective schemes,
which
shall apply from the 1st commencement date until the dates specified in paragraph (2).
(2) In the case of –
(a) the annual pension increase rate referred
to in paragraph (1)(a), that rate shall apply until 31st December 2018;
(b) the rates referred to in paragraphs (1)(b)
and (c), those rates shall apply until 31st December 2020; and
(c) the employer and member contribution rates
referred to in paragraph (1)(d) –
(i) in relation to the Scheme, those rates
shall apply until 31st December 2023, and
(ii) in relation to the 1967 Scheme, those
rates shall apply until 31st December 2018.
(3) In the case of the accrual rate, the annual
pension increase rate in respect of retirement benefits under the Scheme and the revaluation rate, any valuation occurring as at a
date earlier than 31st December 2018 shall not affect those rates specified in Schedule 1, and Regulation 3(6)(a),
(b) or (d) and Regulation 17 shall not apply for the purposes of adjusting
the rates and adjustments certificate in respect of any such earlier valuation.
(4) In the case of the employer and member
contribution rates (in relation to the Scheme), any valuation occurring as at a
date earlier than 31st December 2021 shall not affect those rates
specified in Schedule 1, and Regulations 3(6)(c) and Regulations 17
and 18 (if applicable) shall not apply for the purposes of adjusting the
rates and adjustments certificate in respect of any such earlier valuation.
13 Scheme
member transitional contribution rates
(1) Schedule 2 sets out the contributions
rates –
(a) payable by transition members; and
(b) which shall apply from the 2nd commencement
date until 31st December 2023.
(2) Any valuation occurring as at a date
earlier than 31st December 2021 shall not affect the rates specified
in Schedule 2, and Regulations 3(6)(c), 17 and 18 (if
applicable) shall not apply for the purposes of adjusting the rates and
adjustments certificate in respect of any such earlier valuation.
14 Continuing
members of the 1967 Scheme – transitional contribution rates
(1) Schedule 3 sets out the contribution
rates payable by continuing members of the 1967 Scheme which shall apply
from the 2nd commencement date until 31st December 2023.
(2) Any valuation occurring as at a date
earlier than 31st December 2021 shall not affect the rates specified
in Schedule 3, and Regulations 3(6)(c), 17 and 18 (if
applicable) shall not apply for the purposes of adjusting the rates and
adjustments certificate in respect of any such earlier valuation.
15 Employer
transitional contribution rates
(1) Schedule 4 sets out the contribution
rates payable by employers of –
(a) continuing members of the 1967 Scheme;
or
(b) transition members,
which
shall apply from the 2nd commencement date until 31st December 2023.
(2) Any valuation occurring as at a date
earlier than 31st December 2021 shall not affect the rates specified
in Schedule 4, and Regulations 3(6)(c), 17 and 18 (if
applicable) shall not apply for the purposes of adjusting the rates and
adjustments certificate in respect of any such earlier valuation.
part 4
Cost Caps and control of funding levels
16 Employer
and member contribution cost cap
(1) For
the purposes of Article 7 of the Law –
(a) The employer contribution cost cap, under the respective schemes
shall be set at 16.5% of pensionable earnings of all members of the
respective schemes as at the date of the valuation except that –
(i) contributions
certified by the Actuary in respect of an admitted employer under paragraph 6(4)
of Schedule 1 to the Membership and Benefits Regulations,
(ii) a
termination contribution in respect of an admitted employer under paragraph 8(5)
of Schedule 1 to the Membership and Benefits Regulations, or
(iii) contributions
in respect of the re-payment of the pre-1988 liability under Schedule 5,
shall be disregarded for the
purposes of the cap;
(b) subject to paragraphs (2), (3) and (4), the member
contribution cost cap under the respective schemes shall be set at 8.25% of pensionable
earnings of all members of the respective schemes as at the date of the
valuation.
(2) This
paragraph applies if, following a valuation, the Actuary reports that the
future accrual of benefits under both of the respective schemes is unaffordable
within the cost caps specified under paragraph (1).
(3) Where
paragraph (2) applies, the Minister shall consult with relevant trade
unions as to whether or not members of the respective schemes would agree to an
increase in the member contribution cost cap specified under paragraph (1)(b),
so as to avoid any reduction in the future accrual of benefits under the Scheme.
(4) If
at the conclusion of a period of 3 months –
(a) there is agreement to an increase in the member contribution
cost cap specified under paragraph (1)(b), the Actuary shall, subject to
the requirement in Regulation 11(6), determine the adjusted member
aggregated contribution rate to be specified in the rates and adjustments certificate;
(b) there is no agreement to an increase referred to in sub-paragraph (a),
the Actuary shall determine the adjusted reduced accrual rate for the Scheme to
be specified in the rates and adjustments certificate.
17 Funding
levels
(1) For
the purposes of this Regulation and Regulation 18 –
(a) “effective valuation date” refers to a valuation of the fund
carried out as at any valuation date.
(b) “liabilities” means the benefits payable under the respective
schemes calculated according to –
(i) the
assumptions set by reference to the funding strategy statement, and
(ii) the
rates specified in the rates and adjustments certificate in respect of the
valuation of the fund carried out as at the previous valuation date;
(c) “previous valuation date” means the valuation date immediately
prior to the effective valuation date;
(d) “full funding level” means that as at the valuation date, the
assets of the respective schemes are 100% of the amount required to meet the
liabilities of the respective schemes;
(e) “maximum funding level” means that as at the valuation date, the
assets of the respective schemes are 105% of the amount required to meet the
liabilities of the respective schemes;
(f) “minimum funding level” means that as at the valuation date,
the assets of the respective schemes are 95% of the amount required to meet the
liabilities of the respective schemes.
(2) The
Committee shall, having regard to the formula set out in paragraph (3),
aim to secure that the assets of the respective schemes are at a sufficient
level to fund the benefits payable under the respective schemes.
(3) The
Actuary shall at every valuation of the fund certify in respect of the
valuation date for that valuation, the funding level of the respective schemes by
reference to the following formula –
|
value of
assets of each scheme as at the effective valuation date
|
x 100 = funding
level (expressed as a percentage).
|
|
value of liabilities of each
scheme as at the effective valuation date
|
(4) If
the Actuary certifies that either or both of the respective schemes are operating
within their maximum and minimum funding levels, and the Committee determines
either that –
(a) no adjustments
are required in respect of any of the rates specified in the rates and
adjustments certificate; or
(b) adjustments are required in respect of some or all of the rates,
the Committee shall within 15 months of the valuation date, seek the Minister’s agreement to
that determination.
(5) If
before the expiry of 15 months from the valuation date no agreement is
given under paragraph (4), the Actuary shall, subject to following the
process as referred to in Regulation 2(2)(c)(ix), determine what
adjustments are required (if any) in respect of any of the rates specified in
the rates and adjustments certificate so as to restore either or both of the
respective schemes to their full funding level.
(6) If before the expiry of 15 months from
the valuation date the Minister agrees with the Committee’s determination under
paragraph (4), the Actuary shall prepare the rates and adjustments
certificate with or without specifying any adjustments, as the case may be.
(7) Subject to paragraph (9), if the Actuary
certifies that either or both the respective schemes are
operating at or above their maximum funding level, or at or below their minimum
funding level, the Actuary shall, subject to following the process as referred
to in Regulation 2(2)(c)(ix) and Regulation 18 (if applicable),
determine what adjustments are required (if any) in respect of any of the rates
specified in the rates and adjustments certificate so as to restore either or
both of the respective schemes to their full funding level.
(8) The Actuary shall, before the expiry of
15 months after the valuation date, notify the Committee and the Minister
of the determination under paragraph (7).
(9) The Actuary shall not determine any
adjustments under paragraph (7) if the Committee and the Minister have
otherwise agreed that no adjustments are required to any of the rates specified
in the rates and adjustments certificate so as to restore either or both of the
respective schemes to their full funding level.
18 Transitional costs of funding benefits under the respective schemes
(1) This Regulation applies where as at any
valuation of the fund which occurs in the period commencing with the valuation
of the fund as at 31st December 2018 and ending on 31st December 2032,
the Actuary certifies that either or both the respective schemes are operating
at or below their minimum funding level.
(2) Where paragraph (1) applies, the
Actuary shall as at that valuation date, calculate an adjusted value for the
assets of the respective schemes by including within that calculation the value
of future employer and member contributions to cover transitional costs equal
to 0.8% of pensionable earnings over the period to 31st December 2032,
and having applied the formula set out in paragraph (3) –
(a) certify in respect of the valuation date
for that valuation, the funding level for the respective schemes as re-assessed
under this Regulation; and
(b) determine what adjustments are required (if
any) in respect of any of the rates specified in the rates and adjustments
certificate so as to restore either or both of the respective schemes to their
full funding level.
(3) The
formula referred to in paragraph (2) is –
|
value of adjusted assets of each scheme
as at the effective
valuation date
|
x 100 = funding level (expressed as a
percentage).
|
|
value of liabilities of each scheme as at the
effective
valuation date
|
(4) The Actuary shall, before the expiry of
15 months of the valuation date, notify the Committee and the Minister of
the determination under paragraph (2)(b).
(5) The transitional costs referred to in paragraph (2)
include the costs of –
(a) benefits accruing in respect of continuing
members of the 1967 Scheme which are in excess of the costs of retirement benefits
concurrently accruing in respect of active members of the Scheme;
(b) applying the transitional contribution
rates set out in Schedules 2, 3 and 4;
(c) providing survivor benefits to a nominated
cohabiting partner under Regulation 11 of the Transitional Regulations.
Part 5
1967 Scheme assets
19 Ring-fencing
of 1967 Scheme assets
(1) The Committee shall ensure that the assets of the 1967 Scheme
which have accrued in respect of that scheme up to, and including the day
before the 2nd commencement date, shall only be used for the purpose of funding
the costs of benefits under that scheme.
(2) For the purposes of this Regulation, the assets
of the 1967 Scheme shall include the re-payment of the pre-1988 liability
under Regulation 20 and Schedule 5.
20 Re-payment of the pre-1988 liability
Schedule 5
gives effect to the re-payment of the pre-1988 liability in respect of the 1967 Scheme
and that re-payment shall be treated as an asset of that scheme for the
purposes of valuations under Regulation 3.
part 6
closing
21 Citation
and commencement
(1) These
Regulations may be cited as the Public Employees (Pension Scheme) (Funding and
Valuation) (Jersey) Regulations 2015.
(2) Regulations –
(a) 1
to 12, 16 and 17, 19 to 21 and Schedules 1 and 5 shall come into
force on the 1st commencement date; and
(b) 13
to 15 and 18, and Schedules 2 to 4 shall come into force on the 2nd
commencement date.
m.n. de la haye
Greffier of the States
SCHEDULE 1
(Regulation 12)
Interim rates
1 Accrual rate until 31st December 2020
(1) The
accrual rate specified in sub-paragraph (2) shall apply from the 1st
commencement date until the scheme year ending
31st December 2020.
(2) The
accrual rate in respect of the Scheme shall be 1/66th of an active member’s
pensionable earnings paid in each scheme year.
(3) Subject
to sub-paragraph (4), following the valuation as
at 31st December 2018, an adjusted accrual rate (if any) specified in
the rates and adjustments certificate under Regulation 3(6)(a) shall, in
accordance with Regulation 6, be applied for the scheme year beginning on
1st January 2021.
(4) If as a result of the
valuation as at 31st December 2018, the accrual rate specified in
sub-paragraph (2) does not require an adjustment to be specified in the
rates and adjustments certificate under Regulation 3(6)(a), that rate
shall continue to have effect until such time as it is adjusted following any
subsequent valuation, and applied in accordance with Regulation 6.
2 Annual increases in pension – rate for
1967 Scheme until 31st December 2018
and rate for Scheme until 31st December 2020
(1) From the 1st
commencement date until the scheme year ending 31st December 2018,
the annual pension increase rate in respect of retirement benefits under the 1967 Scheme
shall be 100% of AIRPI.
(2) Subject to paragraph (3),
following the valuation as at 31st December 2016, an adjusted annual
pension increase rate (if any) specified in the rates and adjustments
certificate under Regulation 3(6)(b) shall, in accordance with Regulation 6,
be applied for the scheme year beginning on 1st January 2019.
(3) If as a result of the
valuation as at 31st December 2016, the rate specified in sub-paragraph (1)
does not require an adjustment to be specified in the rates and adjustments
certificate under Regulation 3(6)(b), that rate shall in relation to the 1967 Scheme,
continue to have effect on 1st January 2019 until such time as it is
adjusted following any subsequent valuation and applied in accordance with Regulation 6.
(4) From the 1st
commencement date until the scheme year ending 31st December 2020,
the annual pension increase rate in respect of retirement benefits under the
Scheme shall be 100% of AIRPI.
(5) Subject to sub-paragraph (6),
following the valuation as at 31st December 2018, an adjusted annual
pension increase rate (if any) specified in the rates and adjustments
certificate under Regulation 3(6)(b) shall, in accordance with Regulation 6,
be applied for the scheme year beginning on 1st January 2021.
(6) If as a result of the
valuation as at 31st December 2018, the rate specified in sub-paragraph (4)
does not require an adjustment to be specified in the rates and adjustments
certificate under Regulation 3(6)(b), that rate shall in relation to the
Scheme, continue to have effect on 1st January 2021 until such time
as it is adjusted following any subsequent valuation and applied in accordance
with Regulation 6.
3 Revaluation rate until 31st December 2020
(1) The
revaluation rate specified in sub-paragraph (2) shall apply from the 1st
commencement date until the scheme year ending 31st
December 2020.
(2) The
revaluation rate in respect of the Scheme shall be (AIRPI + 1%) x
100%.
(3) Subject to sub-paragraph (4),
following the valuation as at 31st December 2018, an adjusted rate (if
any) specified in the rates and adjustments certificate under Regulation 3(6)(d)
shall, in accordance with Regulation 6, be applied for the purposes of the
revaluation of the scheme year ending on 31st December 2020.
(4) If as a result of the
valuation as at 31st December 2018, the rate specified in sub-paragraph (2)
does not require an adjustment to be specified in the rates and adjustments certificate
under Regulation 3(6)(d), that rate shall continue to have effect for the purposes
of the revaluation of the scheme year ending on 31st December 2020
until such time as it is adjusted following any subsequent valuation, and
applied in accordance with Regulation 6.
4 Scheme – employer and member contribution
rates until 31st December 2023
(1) This
paragraph applies to –
(a) employers of persons described
in clauses (b) to (d);
(b) persons (excluding
transition members) who, on or after the 1st commencement date, become active
members of the Scheme;
(c) deferred or pensioner
members of the Scheme (including such members who were formerly transition
members) who, before the rates specified in sub-paragraphs (4) or (5) (as
the case may be) cease to have effect, become active members on resuming Scheme
employment;
(d) a person who at any
time after the 2nd commencement date becomes an active member of the Scheme by
virtue of Regulation 4 of the Transitional Regulations (change of category
of membership).
(2) The contribution rates specified in sub-paragraphs (3),
(4) and (5) shall apply from the 1st commencement date until the scheme year ending 31st December 2023.
(3) An
employer shall pay contributions of an amount equivalent to 16% of the total
aggregated pensionable earnings of the members employed by that employer.
(4) An
ordinary member of the Scheme shall pay contributions of an amount equivalent
to 7.75% of his or her pensionable earnings.
(5) A
uniformed member of the Scheme shall pay contributions of an amount equivalent
to 10.10% of his or her pensionable earnings.
(6) Subject to sub-paragraph (7), following the valuation as at
31st December 2021, adjusted rates (if any) specified in the rates and
adjustments certificate under Regulation 3(6)(c) shall, in accordance with
Regulation 6, be applied for the scheme year beginning on 1st January 2024.
(7) If as a result of the
valuation as at 31st December 2021 any of the rates specified in sub-paragraphs (3),
(4) and (5) do not require an adjustment to be specified in the rates and
adjustments certificate under Regulation 3(6)(c), such rates shall
continue to have effect on 1st January 2024 until such time as those
rates are adjusted following any subsequent valuation, and applied in
accordance with Regulation 6.
5 1967 Scheme –
employer
and member contribution rates until 31st December 2018
(1) This
paragraph applies to –
(a) employers of
contributing members of the 1967 Scheme; and
(b) contributing members of
the 1967 Scheme.
(2) The contribution rates
specified in sub-paragraphs (3) and (4) shall apply from
the 1st commencement date until the scheme year ending
31st December 2018.
(3) An
employer shall pay contributions of an amount equivalent to 13.60% of the
total aggregated pensionable earnings of the members employed by that employer.
(4) Contributing
members of the 1967 Scheme in respect of whom the Regulations specified in
column 1 of the Table apply, shall pay
contributions of an amount equivalent to the percentage of pensionable earnings
specified in column 2 of the Table –
|
1
1967 Scheme Regulations
|
2
Percentage of pensionable
earnings
|
|
1967 Regulations
|
6%
|
|
1992 Regulations
|
6%
|
|
Existing Members
Regulations
|
6.25%
|
|
New Members Regulations
|
5%
|
(5) As at the 2nd
commencement date –
(a) employers shall pay
contributions in accordance with Schedule 4;
(b) contributing
members of the 1967 Scheme who become transition members of the Scheme shall pay contributions in accordance with Schedule 2; and
(c) contributing
members of the 1967 Scheme who remain as continuing members of that scheme
shall pay contributions in accordance with Schedule 3.
SCHEDULE 2
(Regulation 13)
transition members – Transitional contribution
rates
1 Application
and interpretation
This Schedule sets out the contribution rates applicable to
transition members.
2 Ordinary
member contribution rates
(1) This sub-paragraph
applies to transition members who –
(a) were members of the 1967 Scheme
under the New Members Regulations;
(b) were not
category A, category B or category C members, and
who become ordinary members of the Scheme.
(2) The transition members
to whom sub-paragraph (1) applies, shall, in respect of each scheme year
specified in column 1 of Table 1, pay contributions based on the salary
applicable to the person as at the date, and at the percentage rate specified in
columns 2 and 3 of that Table –
|
Table 1
|
|
1
Scheme year
|
2
Full-time equivalent basic
annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent
basic annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
5.75%
|
6%
|
|
2020
|
6.50%
|
7%
|
|
2021
|
7.25%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
(3) This sub-paragraph
applies to transition members who –
(a) were members of the 1967 Scheme
under the Existing Members Regulations;
(b) were not category A
or category B members, and
who become ordinary members of the Scheme.
(4) The transition members
to whom sub-paragraph (3) applies, shall, in respect of each scheme year
specified in column 1 of Table 2, pay contributions based on the salary
applicable to the person as at the date, and at the percentage rate specified
in columns 2 and 3 of that Table –
|
Table 2
|
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
6.69%
|
6.84%
|
|
2020
|
7.13%
|
7.43%
|
|
2021
|
7.57%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
(5) This sub-paragraph
applies to transition members who were members of the 1967 Scheme under –
(a) the 1967 Regulations
in respect of whom Regulation 17, 18, 19, 20 or 20A of the 1967 Regulations
did not apply; or
(b) the 1992 Regulations,
and
who become ordinary members of the Scheme.
(6) The transition members
to whom sub-paragraph (5) applies, shall, in respect of each scheme year
specified in column 1 of Table 3, pay contributions based on the
salary applicable to the person as at the date, and at the percentage rate specified
in columns 2 and 3 of that Table –
|
Table 3
|
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
6.50%
|
6.67%
|
|
2020
|
7%
|
7.34%
|
|
2021
|
7.50%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
3 Uniformed
member contribution rates
(1) This sub-paragraph
applies to transition members who –
(a) were members of the 1967 Scheme
under the New Members Regulations;
(b) were category A,
category B or category C members, and
who become uniformed members of the Scheme.
(2) The transition members
to whom sub-paragraph (1) applies, shall, in respect of each scheme year
specified in column 1 of Table 1, pay contributions of an amount
equivalent to the percentage of pensionable earnings specified in column 2
of that Table –
|
Table 1
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
6.02%
|
|
2020
|
7.04%
|
|
2021
|
8.06%
|
|
2022
|
9.08%
|
|
2023
|
10.10%
|
(3) This sub-paragraph
applies to transition members who were category A or category B
members of the 1967 Scheme under the Existing Members Regulations and who
become uniformed members of the Scheme.
(4) The transition members
to whom sub-paragraph (3) applies, shall, in respect of each scheme year
specified in column 1 of Table 2, pay contributions of an amount
equivalent to the percentage of pensionable earnings specified in column 2
of that Table.
|
Table 2
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
7.02%
|
|
2020
|
7.79%
|
|
2021
|
8.56%
|
|
2022
|
9.33%
|
|
2023
|
10.10%
|
(5) This sub-paragraph
applies to transition members who were members of the 1967 Scheme in
respect of whom Regulation 17, 18, 19, 20 or 20A of the 1967 Regulations
applied, and who become uniformed members of the Scheme.
(6) The transition members to
whom sub-paragraph (5) applies, shall, in respect of each scheme year
specified in column 1 of Table 3, pay contributions of an amount
equivalent to the percentage of pensionable earnings specified in column 2
of that Table –
|
Table 3
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
6.82%
|
|
2020
|
7.64%
|
|
2021
|
8.46%
|
|
2022
|
9.28%
|
|
2023
|
10.10%
|
4 Contribution
rates from 1st January 2024
If, as a result of the valuation as at
31st December 2021, any of the contribution rates specified in this
Schedule applicable for the scheme year 2023 do not require an adjustment to
be specified in the rates and adjustments certificate under Regulation 3(6)(c),
any such rates shall continue to have effect for the scheme year beginning on
1st January 2024 until such time as those rates are adjusted
following any subsequent valuation, and applied in accordance with Regulation 6.
SCHEDULE 3
(Regulation 14)
1967 scheme – continuing members
Transitional contribution rates
1 Application
and interpretation
(1) This Schedule sets out
the contribution rates applicable to continuing members of the 1967 Scheme.
(2) In this Schedule –
“members” in relation to the 1992 Regulations has the same
meaning as in Regulation 1 of those Regulations;
“members” in relation to the Existing Members Regulations and New
Members Regulations has the same meaning as in Regulation 1 of those
Regulations.
2 1967 Regulations –
contributory member contribution rates
(1) Contributory members in
respect of whom Regulation 17, 18, 19, 20 or 20A of the 1967 Regulations
does not apply, shall, in respect of each scheme year specified in column 1
of Table 1, pay contributions based on the salary applicable to the person
as at the date, and at the percentage rate specified in columns 2
and 3 of that Table –
|
Table 1
|
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
6.50%
|
6.67%
|
|
2020
|
7%
|
7.34%
|
|
2021
|
7.50%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
(2) Contributory members in
respect of whom Regulation 17, 18, 19, 20 or 20A of the 1967 Regulations
applies, shall, in respect of each scheme year specified in column 1 of
Table 2, pay contributions of an amount equivalent to the percentage of pensionable
earnings specified in column 2 of that Table –
|
Table 2
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
6.82%
|
|
2020
|
7.64%
|
|
2021
|
8.46%
|
|
2022
|
9.28%
|
|
2023
|
10.10%
|
3 1992 Regulations –
member contribution rates
Members in respect of whom the 1992 Regulations apply, shall, in
respect of each scheme year specified in column 1 of the Table, pay contributions
based on the salary applicable to the person as at the date, and at the
percentage rate specified in columns 2 and 3 of the Table –
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
6.50%
|
6.67%
|
|
2020
|
7%
|
7.34%
|
|
2021
|
7.50%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
4 Existing
Members Regulations – member contribution rates
(1) This paragraph applies
to members in respect of whom the Existing Members Regulations apply.
(2) Members who are not
category A or category B members, shall, in respect of each scheme
year specified in column 1 of Table 1, pay contributions based on the
salary applicable to the person as at the date, and at the percentage rate specified
in columns 2 and 3 of that Table –
|
Table 1
|
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
6.69%
|
6.84%
|
|
2020
|
7.13%
|
7.43%
|
|
2021
|
7.57%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
(3) Category A or
category B members, shall, in respect of each scheme year specified in
column 1 of Table 2, pay contributions of an amount equivalent to the
percentage of pensionable earnings specified in column 2 of that Table –
|
Table 2
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
7.02%
|
|
2020
|
7.79%
|
|
2021
|
8.56%
|
|
2022
|
9.33%
|
|
2023
|
10.10%
|
5 New
Members Regulations – member contribution rates
(1) This paragraph applies
to members in respect of whom the New Members Regulations apply.
(2) Members who are not
category A, category B or category C members, shall, in respect
of each scheme year specified in column 1 of Table 1, pay contributions
based on the salary applicable to the person as at the date, and at the
percentage rate specified in columns 2 and 3 of that Table –
|
Table 1
|
|
1
Scheme year
|
2
Full-time equivalent
basic annual salary: under £30,000 as at 31st December 2018
|
3
Full-time equivalent basic
annual salary: £30,000 and over as at 31st December 2018
|
|
2019
|
5.75%
|
6.00%
|
|
2020
|
6.50%
|
7.00%
|
|
2021
|
7.25%
|
7.75%
|
|
2022 up to and including 2023
|
7.75%
|
7.75%
|
(3) Category A,
category B or category C members, shall, in respect of each scheme
year specified in column 1 of Table 2, pay contributions of an amount
equivalent to the percentage of pensionable earnings specified in column 2
of that Table –
|
Table 2
|
|
1
Scheme year
|
2
Percentage of pensionable earnings
|
|
2019
|
6.02%
|
|
2020
|
7.04%
|
|
2021
|
8.06%
|
|
2022
|
9.08%
|
|
2023
|
10.10%
|
6 Contribution
rates from 1st January 2024
If, as a result of the valuation as at
31st December 2021, any of the contribution rates specified in this
Schedule applicable for the scheme year 2023 do not require an adjustment to
be specified in the rates and adjustments certificate under Regulation 3(6)(c),
any such rates shall continue to have effect for the scheme year beginning on
1st January 2024 until such time as those rates are adjusted
following any subsequent valuation, and applied in accordance with Regulation 6.
SCHEDULE 4
(Regulation 15)
employer Transitional contribution rates
(1) This Schedule applies
to employers referred to in Regulation 15(1) who shall in respect of each
scheme year specified in column 1 of the Table, pay contributions of an
amount equivalent to the percentage of pensionable earnings specified in column 2
of the Table –
|
1
Scheme
year
|
2
Percentage
of pensionable earnings of continuing members of the 1967 Scheme; or
transition members
|
|
2019
|
14.40%
|
|
2020
|
15.20%
|
|
2021
up to and including 2023
|
16%
|
(2) If,
as a result of the valuation as at 31st December 2021, the
contribution rate specified in this Schedule applicable for the scheme year 2023
does not require an adjustment to be specified in the rates and adjustments
certificate under Regulation 3(6)(c), that rate shall continue to have
effect for the scheme year beginning on 1st January 2024 until such
time as that rate is adjusted following any subsequent valuation, and applied
in accordance with Regulation 6.
SCHEDULE 5
(Regulation 20)
re-payment
of pre-1988
liability
(1) In this Schedule –
“1967 Scheme
employer” means an employer who before the 1st
commencement date was –
(a) admitted to the 1967 Scheme under repealed Regulation 9
of the General Regulations; or
(b) treated as if admitted to the 1967 Scheme under any
enactment which provided for that employer to become an employer for the
purposes of that scheme in respect of members of that scheme whose employment
with the States Employment Board was transferred to that employer;
“pre-1988
liability”, in respect of the States Employment Board, means so much of the
capitalized value from time to time of the debt transferred to the fund in
respect of the 1967 Scheme when that scheme was amended with effect from
1st January 1988 that is attributable to the States Employment Board,
being an amount calculated by the Actuary to be £280,268,529 as at 31st December 2014;
“administration of the States”
has the meaning given in Article 1 of the Employment of States of Jersey
Employees (Jersey) Law 2005[13];
“admitted
employer” means an employer other than the States Employment Board;
(a) who in relation to the Scheme –
(i) is
admitted to the Scheme under Regulation 7 of, and paragraph 2(1) of Schedule 1
to, the Membership and Benefits Regulations,
(ii) is
admitted to the Scheme under Regulation 16(1) of the Transitional
Regulations,
(iii) is
admitted to the Scheme under Article 10(5) of the Law, or
(iv) is
treated as if admitted to the Scheme under any enactment which provides for
that employer to become an employer for the purposes of the Scheme in respect
of members of the Scheme whose employment with the States Employment Board is
transferred to that employer; and
(b) who, on or after the 1st commencement date, is treated as if
admitted to the 1967 Scheme under Regulation 7 of, and paragraph 2(5)
of Schedule 1 to, the Membership and Benefits Regulations;
“debt
payment period” means the period that started on 1st January 2002 and
ends on 29th September 2053 (both dates being part of the period);
“member”
means a contributing, deferred or pensioner member of the 1967 Scheme, and
the widow or widower or surviving civil partner, child or dependant of a such a
member.
(2) The
States Employment Board shall on the 1st commencement date continue to pay off
its pre-1988 liability for the remaining term of the debt payment period.
(3) The States Employment Board shall do so
without –
(a) the imposition of an obligation on members;
(b) an adverse effect on the benefits received
or to be received by members; or
(c) an increase in the contributions paid or to
be paid by members.
(4) To pay off its pre-1988 liability the
States Employment Board shall during the remaining term of the debt payment
period, pay to the fund by equal monthly contributions payable before the end
of each month –
(a) for the year commencing on the 1st
commencement date, an amount equivalent to –
(i) the sum of £4,406,724, increased by the
same percentage increase as the average percentage increase in 2014 and 2015
in the pensionable earnings of those contributing members who were employed by
the States Employment Board during the whole of those years, adjusted to take
account of any extinguished liability where in 2015 a 1967 Scheme employer has –
(A) replaced
an administration of the States, and
(B) paid such capital amount into the fund as
is required to settle such portion of the pre-1988 liability as is attributable
to that employer by reason of becoming a 1967 Scheme employer who has
replaced an administration of the States, and
(ii) the sum of £3,000,000 pursuant to a
decision of the States to adopt P.69/2012 in respect of the medium term
financial plan approved under the Public Finances (Jersey) Law 2005, increased
by the same percentage increase as the average percentage increase in 2015 in
the pensionable earnings of those contributing members who were employed by
the States Employment Board during the whole of that year; and
(b) for each subsequent year, the amount
payable during the previous year increased by the same percentage increase as
the average percentage increase during that previous year in the pensionable earnings of those contributing members who were employed by the States Employment
Board during the whole of that year.
(5) The States Employment Board may at any time –
(a) extinguish its liability to make
contributions in accordance with paragraph (4) by paying to the fund a
contribution equal to the amount of its pre-1988 liability at that time, as
determined by the Actuary;
(b) reduce its pre-1988 liability by paying any
amount to the fund, either as a lump sum contribution or by way of increased
contributions; or
(c) reduce the length of the debt payment
period where the fund has received payment of a capital amount at any time
after the 1st commencement date, in respect of an admitted employer who –
(i) has replaced an
administration of the States, and
(ii) has paid such capital amount into the fund
as is required to settle such portion of the pre-1988 liability as is attributable
to that employer by reason of becoming an admitted employer who has replaced an
administration of the States.
(6) Where –
(a) the States Employment Board makes a
contribution to the fund in accordance with paragraph (5)(b);
(b) the 1967 Scheme is amended to end or
adjust any future benefit accrual for any members;
(c) the Actuary determines that there has been
a change of circumstances of the 1967 Scheme or an event, which need not
be connected with that scheme, that has made compliance by the States
Employment Board with paragraph (4) inadequate to ensure that both paragraphs (2)
and (3) are complied with; or
(d) the Actuary determines that there has been
a change that makes the debt re-payment provisions of this Schedule
unacceptable as an asset of the 1967 Scheme for the purposes of a
valuation in accordance with Regulation 3,
the
States Employment Board shall, after receiving the comments of the Committee
acting on the advice of the Actuary, propose to the States amendments to this Schedule
that are adequate to ensure that both paragraphs (2) and (3) are complied
with.
(7) The proposition –
(a) may, amongst other things, propose a
variation in the length of the debt payment period or a variation in the amount
of the contributions to be paid by the States Employment Board; but
(b) shall not propose an amendment of paragraph (3).