Public Employees Contributory Retirement Scheme pension transfers and commutations (FOI)

Request

A

Who caused, or allowed 100% transfer or commutation of 100% of the PECRS pension?

B

Why this was done?

C

How many retired / retiring States of Jersey Police Officers have been allowed this facility?

D

What is the total sum that has come from the PECRS fund as a result?

E

When was this facility stopped & why!

F

Is this information freely available within the Pensions Dept or Gov depts as no one seemed to wish or be able to address these simple queries?

Response

A

The Public Employees Contributory Retirement Scheme (PECRS) is a statutory scheme and is administered in accordance with scheme regulations. Scheme regulations are agreed by the States Assembly.

Regulation 22 (Transfers out of fund) of the Public Employees (Pension Scheme) (Administration) (Jersey) Regulations 2015 allows a person who has ceased active membership of the Public Employees Contributory Retirement Scheme (PECRS) to transfer 100% of their benefits to another pension provider.

There is not, and there never has been, provision in the scheme regulations that allows a member to commute 100% of their pension, with the exception of small pensions with a capital value is less than £19,000 for members under the age of 60 and less than £35,000 for members over the age of 60. These payments are subject to tax and are made in accordance with Article 131CE of the Income Tax (Jersey) Law 1961.

The maximum lump sum amount permitted under Article 131CF of the Income Tax (Jersey) Law 1961 is 30% and this is reflected in the legislation governing PECRS. Members opting to take a pension from the scheme cannot commute more than 30% as a lump sum.

B

The scheme regulations have always provided for a member, on leaving the scheme, to transfer their benefits to another pension provider (subject to certain conditions imposed by the scheme legislation and Income Tax (Jersey) Law 1961). It is common practice for Pension Funds to give scheme members the option to transfer out their benefits to another pension provider after leaving employment.

Members have never been able to commute 100% of their pension into a lump sum, with the exception of small pensions with a capital value of less than £19,000 for members under the age of 60 and less than £35,000 for members over the age of 60.

C

Retired members are unable to transfer their benefits because they are already in payment. No retired members with pension in payment have been allowed to transfer out their pension. 

All retiring members have the option to transfer out up to the point that their pension is put into payment.

No retired or retiring members have been offered the facility to commute 100% of their pension from the Scheme, with the exception of where their pension is of small value and has a capital value of less than £19,000 for members under the age of 60 or less than £35,000 for members over the age of 60.

Information is not held by pay group, for example Police officers. A review of individual files would need to be undertaken in order to ascertain the information requested. It has been estimated that the cost of extracting the data relating to transfers and commutations would exceed the cost limit provisions set out in the Freedom of Information (Costs) (Jersey) Regulations 2014. Article 16 of the Freedom of Information (Jersey) Law 2011 has been applied.

D

The total value of transfers out is published on www.gov.je in the Public Employees Pensions Fund annual accounts by selecting the 'Public Employees Pension Fund' link and then selecting the 'Public service pension annual reports and newsletters' link. Article 23 of the Freedom of Information (Jersey) Law 2011 has been applied.

Government of Jersey public service pensions (gov.je)

E

A member who is leaving employment or has a deferred pension continues to have the option to transfer out 100% of their pension from the PECRS (subject to certain conditions imposed by the scheme legislation and Income Tax (Jersey) Law 1961). The option to transfer out has not been stopped.

The facility to commute 100% of a member pension has never existed, with the exception of where their pension is of small value and has a capital value of less than £19,000 for members under the age of 60 or less than £35,000 for members over the age of 60.

F

Information on the options available to scheme members including transfers out are publicly available on www.gov.je on the 'Retiring from or leaving a public service pension scheme' page. Article 23 of the Freedom of Information (Jersey) Law 2011 has therefore been applied.

Government of Jersey public service pensions (gov.je)

Article applied

Article 23 - Information accessible to applicant by other means

(1) Information is absolutely exempt information if it is reasonably available to the applicant, otherwise than under this Law, whether or not free of charge.

(2) A scheduled public authority that refuses an application for information on this ground must make reasonable efforts to inform the applicant where the applicant may obtain the information.