Metropolitan Police pensions update

Report: 7
Date: 18 January 2001
By: Commissioner

Summary

This report sets out the latest position in respect of the Equitable Life Assurance Society and provides an update on pension arrangements for civil staff. 

A. Supporting information

The Equitable Life Assurance Society

1. On 8 December, the Equitable Life Assurance Society announced that it would stop writing business with immediate effect.  Equitable Life is one of two providers of Additional Voluntary Contributions (AVCs) under the Metropolitan Civil Staff AVC scheme and is the sole provider of AVCs for the Police Pension Scheme.

2. Equitable Life remains solvent, although its capital strength is now weakened.  It will continue to pay out benefits and accept premiums under existing policies, and has made clear that it will honour all contractual commitments.  Equitable Life is considered to be acting prudently in closing to new customers to allow the best opportunity to stabilise the business in the interests of existing policyholders.

3. Staff have been informed of this development by way of a Notice and additional information was made available through the Intranet.  Copies of these documents are attached at Appendices 1 and 2 respectively.

4. Further guidance is awaited from Home Office and the Cabinet Office and this will be published as appropriate.

Pension arrangements for civil staff

5. The MPA is now responsible for the administration of the civil staff pension scheme.  It will shortly be appointing consultants to examine the options in respect of pension arrangements for civil staff.

6. The options available are:

• to continue with present arrangements
• to convert the Metropolitan Civil Staff Superannuation Scheme (MCSSS) into the Principal Civil Staff Pension Scheme (PCSPS)
• to join the Local Government Pension Scheme (LGPS)

The consultants will, inter alia, consider the benefits of the PCSPS 2000/MCSSS 2000 compared with the LGPS.

7. It is expected that the PCSPS 2000 will be introduced on 1 October 2002 and, unless the MCSSS is merged with the PCSPS before then, an identical MCSSS 2000 will come into effect at the same time.

8. A PCSPS 2000 leaflet will shortly be issued to all civil staff with a covering note from Personnel Department and the Trade Union Side.  A copy is attached at Appendix 3.

B. Recommendation

The Committee note the content of the report.

C. Financial implications

None as a direct result of this paper.

D. Review arrangements

Further update reports will be provided as appropriate.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report.  They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

None.

F. Contact details

The author of this report is Mike Vail, MPS.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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