Autumn 2000
On the right track
Survey results roll in
This year, WYPF members have taken part in one of the biggest surveys ever of Local Government Pension Scheme members. The survey has given us a very clear view of how members see the pension scheme and WYPF's service. And it seems we're on the right track!
Our survey took in all sections of WYPF's membership: contributing members, pensioners, deferred members and employers. And later in the year we'll be surveying people who could join the scheme, but have decided not to.
Surveying WYPF contributors was by far the biggest part of our survey. We sent out more than 74,000 forms in the 1999 Benefit Statement and Membership Certificate pack. And more than 10% of the forms came back. Many members used the survey to tell us how our service could be improved. The comments were very useful, and they have helped us identify some very clear areas for action.
In fact, some things we've been able to take action on already. You told us that you wanted your Benefit Statements and Membership Certificates much earlier in the year. So this year, the majority of Benefit Statements and Membership Certificates were in the post by the end of August. A full 4 months earlier than in previous years. And we'll make sure we stick to this timetable every year from now on.* (*To get your Membership Certificate and Benefits Statement in the post to you by 31 August every year your employer must give us their year end financial information by 31 May.)
Many of you commented on how clear the information we send was. But others felt we could do better. We are committed to making your pension scheme as understandable as possible. To show this commitment WYPF has signed up to the Plain English Campaign. This means we will always do our best to make sure you understand the information you get about your pension scheme.
Survey highlights
It's commonly thought that people only become interested in their pension later on in life. But with returns spread across all age groups, our survey told us that:
Members also told us that For Your Benefit is a good way to find out information about the pension scheme. And looking to the future, new technology is already being taken up:
Click here for full survey results
Preston Case – backdated membership for part-timers
European Court of Justice decision on Preston Case
In May, the European Court of Justice made a decision in an important case for pension schemes called the 'Preston Case'. The case was about employees who were kept out of pension schemes because they worked part time.
An earlier European Court case in 1995 had decided that part-timers were eligible for access to pension schemes. But UK law imposed a 2 year limit on backdating membership for people who had been kept out. The Preston Case was about whether this 2-year limit was legal under European law.
In May, the European Court decided that this time limit wasn't legal. The case prompted much speculation by the media that the decision cleared the way for people to backdate their pension cover for the period they were kept out - potentially back to 8 April 1976.
But the situation is not quite as straightforward as newspapers and television made out last May. Because the decision went against UK law, the European Court actually passed the decision back to the House of Lords to decide how UK law needs to change to take account of the European Court's decision. This may take some time. But rest assured, we'll do all we can to keep you informed. back to contents
Background to the Preston Case
Back in the 1970s, most job-related pension schemes only let full-time workers join. Now, as a general rule, pension schemes are open to virtually all employees. Important European Court cases over the years have helped open up pension schemes to more employees.
The Preston Case followed a 1995 European Court ruling that judged membership of an occupational pension scheme to be a right that should not be withheld from part-time workers. This also became a sex-discrimination issue because most part-time workers are women. A number of workers made claims in the courts for periods of part-time work undertaken before the 1995 ruling. But the courts held that UK law imposed a 2 year limitation on backdating.
Shirley Preston & others v Wolverhampton Healthcare NHS Trust and Dorothy Fletcher and others v Midland Bank challenged this two-year limit. The ECJ judgement in May held the two-year limitation to be unlawful, but handed the judgement back to the House of Lords to decide how it should be put into effect. (Really the ECJ judgement only answered the questions that the House of Lords referred to it.)
Speculation in the media has suggested that part-timers' membership could be backdated as far as 8 April 1976 when an earlier ECJ decision ruled that equal pay for men and women was enforceable under EU law. But the situation may not be as straightforward as the media has made out, because:
The ECJ ruling allows our courts (if they end up hearing any of these cases) to apply the British limitation period of 6 years on this.
What does the Preston Case mean for the Local Government Pension Scheme?
When the House of Lords has decided how UK law needs to change to take account of the European Court's decision, the Department of the Environment, Transport and the Regions (DETR) will have to decide if the legal scheme rules of the Local Government Pension Scheme need to change. It might be some time before we know what the changes will be. The changes might be particularly difficult for the Local Government Pension Scheme because people working 15 hours or more have been able to join the LGPS since 1986. And in 1991 these people were also given the option to 'buy back' service between 1974 and 1986. People working less than 15 hours have been eligible to join from 1993.
The Preston Case – Does it apply to you?
At any time while you worked for your current employer have you been kept out of the pension scheme because you worked part time? If you have, the Preston Case might apply to you.
In May the European Court of Justice made a decision in the Preston Case that may eventually give you the chance to backdate your LGPS membership for the period you were kept out.
But before that can happen, 2 other things must be settled:
Have you left your employer recently?
Or are you expecting to leave soon? If you have left recently, or you will be leaving soon, the Local Government Pension Committee of the Employers' Organisation suggests that you lodge a claim with the Employment Tribunal. You can get an Employment Tribunal claim form from your local Department of Employment Office. Claim forms are not available from WYPF.
WYPF due for review
Best Value check imminent
New rules to make local authorities run their services to 'Best Value' principles were introduced in April this year. Under Best Value, all local-authority services (like WYPF) will be tested to stringent performance principles - every 5 years.
Best Value principles focus on:
Shortly, WYPF will undergo its first five-year review under City of Bradford Metropolitan District Council's rolling review plan. A major part of Best Value is that services have to be constantly monitored against Key Performance Indicators drawn up after consultation with people who use the service.
Our recent survey has been very valuable with this and we will be monitored on:
And overall:
Year on year, we'll keep you informed about how our perform back to contents
Autumn 2000