Which Government department announced full GMP increases to be paid by pension funds from 2016

Waiting for an internal review by Derbyshire County Council of their handling of this request.

Dear Derbyshire County Council,

I have seen on the internet from your Pensions and Investment Committee dated 11 June 2014 that the Government have announced that from 2016 Pension Funds will pay the full pension increases (PI) on GMPs and that your council will pay them out of the pension fund. Can you please let me have a copy of the announcement from the Government saying that pension funds will have to pay the full GMP increases from 2016.

Yours faithfully,

C. Thompson

Access2info (Corporate Resources), Derbyshire County Council

Dear C Thompson,

I refer to your request for information received on the 18 July 2014.

We will be dealing with your request under the Freedom of Information Act 2000. In accordance with the legislation, the deadline for responding is 20 working days from receipt of the request, this being the 16 August 2014. However, we shall endeavour to deal with your request promptly, and if possible before this date.

Yours sincerely,

Geoff Hardy
Locum Solicitor
For John McElvaney
Director of Legal Services
Derbyshire County Council
County Hall
Matlock
DE4 3AG

Telephone: 01629 538155

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Wall,Tracey (Corporate Resources), Derbyshire County Council

1 Attachment

Please see attached the response to your FOI

 

Tracey Wall

HR Consultant

 

01629 536924

 

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Dear Wall,Tracey (Corporate Resources),

Thanks for such a quick reply. As the document is 50 pages can yo please tell me which paragraph(S) mention that public service schemes will be taking over the payments of GMPs normaly paid by the DWP after a person reaches state pension age under the single -tier pension due to start 6 April 2016.

Yours sincerely,

C. Thompson

Wall,Tracey (Corporate Resources), Derbyshire County Council

Hi

I have been dealing with our pensions manager on this issue - he is now on annual leave until 11th August - as am I

I will therefore contact you again as soon as possible after this date

Tracey Wall
HR Consultant

01629 536924

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Dear Wall,Tracey (Corporate Resources),
I don't understand this email as you are dealing with it and have told me it can't be looked at before 8 August as the people who will reply are on holiday.

Yours sincerely,

C. Thompson

Wall,Tracey (Corporate Resources), Derbyshire County Council

Yes - I am dealing with it in conjunction with someone from pensions - we have both been off - I will respond fully as soon as possible

Tracey Wall
HR Consultant

01629 536924

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Dear Wall,Tracey (Corporate Resources),

Can you please tell me when I can expect a reply which is now overdue.

Yours sincerely,

C. Thompson

Dear Wall,Tracey (Corporate Resources),
Can you please tell me when I can expect a reply as by law you should have normally responded promptly by 28 August 2014.

Yours sincerely,

C. Thompson

Dear Derbyshire County Council,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Derbyshire County Council's handling of my FOI request 'Which Government department announced full GMP increases to be paid by pension funds from 2016'.

It is now about seven weeks since I put in my request am still waiting for the information and is long overdue.

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/w...

Yours faithfully,

C. Thompson

Hardy,Geoff (Corporate Resources), Derbyshire County Council

Dear Mr Thompson,

 

Thank you for your email requesting a review of your right to know
enquiry.

 

I will conduct this review and I have not been involved in the original
request . As you may know the ICO recommends that reviews are carried out
within 20 working days of a request for one. I will therefore conclude the
review and advise you of the outcome by 15 October at the latest. If you
have any additional comments you would wish me to take into account, as
part of the review, can you kindly forward these as soon as possible.

 

Yours sincerely,

 

 

Geoff Hardy

Locum Solicitor

For John McElvaney

Director of Legal Services

Derbyshire County Council

County Hall

Matlock

DE4 3AG

 

Telephone: 01629 538155

 

 

Please note the contents of this email including any attachments are
classified as RESTRICTED under Derbyshire County Council’s ‘Information
Classification and Handling Policy’.

 

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Access2info (Corporate Resources), Derbyshire County Council

Dear Mr Thompson,

 

Please accept the Council’s apologies for the delay in concluding this
review.

 

Your original request was for :

 

I have seen on the internet from your Pensions and Investment Committee
dated 11 June 2014 that the Government have announced that from 2016
Pension Funds will pay the full pension increases (PI) on GMPs and that
your Council will pay them out of the pension fund. Can you please let me
have a copy of the announcement from the Government saying that pension
funds will have to pay the full GMP increases from 2016.

 

The Council responded by sending the following link:

 

[1]http://www.parliament.uk/documents/impac...

 

Upon investigation it is clear that this document did not address your
request properly. I apologise that this has taken place.

 

The review has been delayed as the Council was looking for a document
which it was believed would answer your request however this has now been
withdrawn as it was considered to be  misleading. In order to clarify the
position, I hope the following information is useful, as supplied by the
Council’s pension’s section:

 

The Department for Work and Pensions (DWP) launched a consultation paper
and draft regulations in May (closed July) on the abolition of contracting
out for Defined Benefit (DB) Schemes – see
[2]https://www.gov.uk/government/consultati...

 

The draft regulations from DWP appear to say that schemes will still be
responsible for paying the first 3% on the post 88 Guaranteed Minimum
Pension (GMP) (and no increase on pre 88 GMP). However, they are silent on
what should happen in additional pension less than GMP cases (and during
the period between GMP age – 60 for women / 65 for men – and State Pension
Age (SPA) where this is later than the GMP age). That is because it is not
a legislative issue but a question of what, if anything, Treasury put in a
Directions Order. The annual Pension Increase (Review) Orders state that:

 

a) before applying Pensions Increase (PI) to a pension in payment the
pension shall be reduced by the amount of GMP in accordance with section
59A of the Social Security Pensions Act 1975, unless Treasury direct
otherwise, and

b) before applying PI to a widow’s or widower’s pension in payment the
pension shall be reduced by the amount of GMP in accordance with section
59(5ZA) of the Social Security Pensions Act 1975

 

There appears to be nothing in the draft amendment regulations that
affects the operation of sections 59A or 59(5ZA) of the Social Security
Pensions Act 1975. That means there will, post 2016, continue to be no
increase on the pre 88 GMP or above 3% on the post 88 GMP unless the
Treasury direct otherwise. It is the Treasury Direction that, therefore,
is key and this is where our original report is misleading as we
understood Treasury did want Funds to inflation proof in full) . If
Treasury issue a direction saying that we must fully increase pensions
where the additional pension is less than the GMP (including during the
period between GMP age – 60 for women / 65 for men – and SPA where this is
later than the GMP age), then it seems to us that Funds would have to
fully inflation proof all pensions (as additional pension will, from 2016,
be less than the GMP in all cases – because there will be no additional
pension).

 

If, however, HM Treasury remove the current Direction and do not issue a
new one requiring Funds to fully increase pensions where the additional
pension is less than the GMP, then a few people who under the current
system receive an increase on their pre 88 GMP and inflation above 3% on
their post 88 GMP (because their additional pension is less than their
GMP) would not receive such an increase beyond 2016 (representing a small
saving to Funds). Presumably many of those would nevertheless still be
‘better-off’ overall because of the single tier state pension.

 

The net result of all of this is that the key to whether there will be a
slight saving for Funds or a massive increase in costs all hinges on what
Treasury do in relation to any Directions Order.

 

I apologise again for the misleading report originally sent and your
patience regarding this review. I hope the above has answered your
enquiry, however if you have any queries please contact us and a member of
the Pensions team with endeavour to assist.

 

If you remain dissatisfied with the Council’s response, I would refer you
to the second tier of the complaints system outlined in our original
response on 25 July 2014.

 

Yours sincerely,

 

 

Geoff Hardy

Locum Solicitor

For John McElvaney

Director of Legal Services

Derbyshire County Council

County Hall

Matlock

DE4 3AG

 

Telephone: 01629 538155

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References

Visible links
1. http://www.parliament.uk/documents/impac...
2. https://www.gov.uk/government/consultati...

Dear Access2info (Corporate Resources),

Thank you for the detailed reply.

Yours sincerely,

C. Thompson

Dear Access2info (Corporate Resources),

You were last in correspondence with me on 19 September 2014 regarding GMP increases,

You told me that if HM Treasury remove the current Direction and do not issue a new one requiring Funds to fully increase pensions where the additional pension is less than the GMP. I would like to know if you have received any instructions as to if pension funds will have to increas the GMP in full or not and if so let me have a copy of the instructions.

Yours sincerely,

C. Thompson

Access2info (Corporate Resources), Derbyshire County Council

Dear Mr Thompson,

I refer to your request for information received on the 4 January 2015.

We will be dealing with your request under the Freedom of Information Act 2000. In accordance with the legislation, the deadline for responding is 20 working days from receipt of the request, this being the 2 February 2015. However, we shall endeavour to deal with your request promptly, and if possible before this date.

Yours sincerely,

Geoff Hardy
Locum Solicitor
For John McElvaney
Director of Legal Services
Derbyshire County Council
County Hall
Matlock
DE4 3AG

Telephone: 01629 538155

PUBLIC – This email includes information which is not personal.

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Dear Derbyshire County Council,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Derbyshire County Council's handling of my FOI request 'Which Government department announced full GMP increases to be paid by pension funds from 2016'.

I am still waiting for a reply to my request dated 4 January 2015.

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/w...

Yours faithfully,

C. Thompson

Access2info (Corporate Resources), Derbyshire County Council

Dear C Thompson,

 

I refer to your request for a review received on the 13 June 2015.

 

As reviewing officer I will consider the Council's response to your
request for information.

 

I will provide the review within 20 working days and by the 10 July 2015.

 

However, I shall endeavour to deal with your request promptly, and if
possible before this date.

 

Yours sincerely,

 

Lucie Collard

Senior Solicitor

For John McElvaney

Director of Legal Services

Derbyshire County Council

Tel: 01629 538373

 

PUBLIC – This email includes information which is not personal.

 

 

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visiting 'www.derbyshire.gov.uk'. If you want to work for us go to our job
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Access2info (Corporate Resources), Derbyshire County Council

1 Attachment

Dear C. Thompson,

Please find attached the Internal Review in respect of your request for Information.

Yours sincerely,

Lucie Collard
Senior Solicitor
For John McElvaney
Director of Legal Services
Derbyshire County Council
Tel: 01629 538373

PUBLIC- This email requires controlled access by Council personnel only and may contain business or personal information.
This email or email thread section has been classified PUBLIC - This email includes information which is not personal.
Think before you print! Save energy and paper. Do you really need to print this email?

Derbyshire County Council works to improve the lives of local people by delivering high quality services. You can find out more about us by visiting 'www.derbyshire.gov.uk'. If you want to work for us go to our job pages on 'www.derbyshire.gov.uk/jobs'. You can register for e-mail alerts, download job packs and apply on-line.

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Dear Access2info (Corporate Resources),

Thank you for your reply , you do hold the type of information I requested as if you look at previous correspondence you will see that I was given the information I requested. I was told people would not receive increases on the pre 1988 GMP or post 1988 GMP if inflation was over 3% unless the Treasury directed Derbyshire Council to pay the increases.

All I was asking in my recent request was if the council had yet received a directive from the Treasury to pay GMP increases or not.

Yours sincerely,

C. Thompson