Public Employees (Pension
Scheme) (Funding and Valuation) (Jersey) Regulations 2015
PART 1
interpretation
1 Interpretation[1]
In these Regulations, unless
the context indicates otherwise –
“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;
“1967 Scheme
benefits” means retirement benefits accrued under the 1967 Scheme;
“1967 Scheme
employer” means an employer –
(a) who,
before 1st January 2016, was admitted to the 1967 Scheme under
repealed Regulation 9 of the General Regulations;
(b) who,
before 1st January 2016, 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;
“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;
“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;
“cohabiting
partner” has the meaning given in Regulation 3 of the Membership and
Benefits 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;
“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;
“Law” means the Public Employees (Pensions) (Jersey) Law 2014;
“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;
“Minister” means
the Chief Minister;
“New Members
Regulations” means the Public Employees (Contributory Retirement Scheme) (New Members)
(Jersey) Regulations 1989;
“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 a set of actuarial assumptions that, when taken together, 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 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;
“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 1st
January 2019 in
respect of continuing members of the 1967 Scheme, and
(iv) the
costs of providing survivor benefits to a 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.[2]
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 1st January
2019,
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.[3]
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 –
(a) 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;
(b) paragraph (5) applies if, during the year
preceding the year in which the annual pension increase is applied –
(i) retirement benefits come into payment,
or
(ii) entitlement to deferred retirement
benefits (including any deferred lump sum under the 1992 Regulations)
arises.[4]
(5) Retirement benefits referred to in paragraph
(4)(b) are to be increased only by 1/365 of the full annual pension increase
rate for each day of payment or entitlement.[5]
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 1st January 2016 until
the dates specified in paragraph (2).[6]
(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 1st January 2019 until
31st December 2023.[7]
(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 1st January 2019 until
31st December 2023.[8]
(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 1st January 2019 until
31st December 2023.[9]
(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 cohabiting partner under Regulation 11 of the Transitional Regulations.[10]
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 1st January 2019,
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.[11]
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 13 to
15 and 18, and Schedules 2 to 4 shall come into force on 1st January 2019.[12]
SCHEDULE 1[13]
(Regulation 12)
Interim
rates
1 Accrual
rate until 31st December 2020
(1) The accrual rate
specified in sub-paragraph (2) shall apply from 1st
January 2016 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
1st January 2016 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
1st January 2016 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 1st January 2016
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 1st January 2016, 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 1st January 2019 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 1st January 2016 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 1st January 2016 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 1st January 2019 –
(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[14]
(Regulation 20)
re-payment
of pre-1988 liability
(1) In this Schedule –
“1967 Scheme employer” means an
employer who before 1st January 2016 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;
“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 1st January 2016, 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 1st January 2016 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 1st January 2016, 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 members
of the respective schemes 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 1st January 2016, 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).