The Legal Services Commission (LSC) was abolished by The Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) and the Legal Aid Agency, an executive agency of the Ministry of Justice (MoJ) was created. All LSC employees were transferred to the new agency on 1.4.2013 and became Civil Servants; as a consequence of which they were all auto enrolled into the Premium scheme of the Principal Civil Service Pension Scheme (PCSPS). In view of which, with effect from 1.4.2013 the LSC No.4 scheme is closed to future accrual. Members have been offered the opportunity to transfer their accrued LSC benefits into the PCSPS under the terms of a bulk transfer.
Background to the Scheme
The LSC pension scheme is a Trust based 'final salary' scheme with an accrual rate of 1/80th. Benefits, payable at 60, comprise of a pension and a tax-free lump sum of 3 x pension (commutation is not possible under the rules). The scheme also provides a 50% spouse's pension for most members who are married or in a civil partnership.
As of 31 March 2013, the fund had c GBP 340m in assets and the funding position was above 90%. The approximate membership profile of the scheme is as follows:
Preserved (1) c 2 200
Pensioners c 800
Total c 3 000
(1) c 1 000 members are currently in the process of making a decision as part of the bulk transfer and may transfer their benefits to the PCSPS.
Current Service Provisions
The MoJ has a pension's team, including a Pensions Manager, dedicated to the LSC scheme. Their current role comprises:
- manage the day to day running of the scheme
- stewardship of third party contracts
- liaise with the sponsoring employer (i.e. MoJ) and the
Trustees of the scheme
- accounting and cash management, including production of
annual report and accounts, audit etc
- drafting all member communications
In addition a third party organisation currently provides the following services to support the Trustees and the in-house MoJ pension's team:
- Third party administration
- Pensioner payroll services
- Scheme Actuary
- Trustee secretariat services
- Consultancy advice
- Investment advice
Future Service Provisions
It is intended that the new contract will be in place by April 2014 with the duration linked to the frequency of actuarial valuations.
The service is to include online based access for all members, this will enable individuals to access and update their pension records. For example, it would include the option for members to see the current value of their pension benefits, have access to their payslips, and view scheme announcements.
The minimum services required by the Trustees of the LSC pension scheme are detailed below:
1) Third party administration
- transfer of all member data, including the scanning of
historic member files / scheme documentation so as to establish a single complete data source for the LSC scheme
- administration of all pension awards (including retirements, ill health and death)
- administration of any other associated functions (pension sharing on divorce, transfers, etc)
- handling of all correspondence and enquiries from preserved members, pensioner members and external bodies
- ensuring the integrity and accuracy of all member data, including record keeping.
- production of quarterly administration reports for the MoJ Pensions Manager and Trustees
- provision of scheme data, for example for triennial actuarial valuations and annual accounting purposes, etc
- ensuring compliance with the Disclosure Requirements and all other legislative requirements
2) Pensioner payroll services
- accurate and timely payment of all pension payments
- application of annual pension increases and notification to pensioners
- reconciliation of the insured annuity payments
- comply with all relevant HMRC legislation
3) Accounting and cash management
- maintenance of the scheme cashbook and accounts
- making payments to beneficiaries / external bodies / other providers
- administering the banking arrangements
- production of the Trustees' Annual Report and Accounts
- managing the annual audit of the scheme accounts
4) Actuarial services
- actuary for the scheme, as set out in the scheme rules and statutory requirements
- IAS19 annual valuation
- actuarial calculations, where not performed by the administration function
- quarterly updates on financial position for the Trustees and Employer
- performing triennial valuations
5) Consultancy
- general pensions consultancy advice
6) Trustee Support
- scheme governance and risk management
- secretariat services (including hosting Trustee meetings, drafting minutes, recording and reviewing action points)
- arranging / delivering Trustee training
7) Communications
- drafting for Trustee approval all member communications, for example producing and issuing the summary funding statement and annual report to members
Other Future Services
The Trustees are also considering the following services, which may or may not be included within any future tender.
Investment advice
- provide advice to the Trustees on their investment strategy / funding matters
- assist the Trustees in selecting and controlling the Investment Manager(s)
- draft the Trustees Statement of Investment Principles
Ongoing pension management / stewardship duties
- requirement for a named Pensions Manager to report to the Trustees on service and contract delivery assurance (in line with the service level agreements).
- liaise with the sponsoring employer of the scheme
Estimated cost excluding VAT:
Range: between 200 000 and 1 400 000 GBP

Lots

This contract is divided into lots: no