Superannuation Schemes (Hansard, 3 December 1997)

§ Mr. Milburn

Responsibility for this matter has been delegated to the National Health Service Pensions Agency under its Chief Executive, Mr. A. F. Cowan. I have asked him to reply to my hon. Friend.

257W

Letter from A. F. Cowan to Mr. John Heppell, dated 3 December 1997: The Secretary of State has asked me to reply to your recent Parliamentary Questions, as their substance falls within my area of responsibility. The answers to each question are set out below. I am afraid they are not all in the precise format you have requested. I also need to place them into the broader context of College of Education Transfers.

Background When NHS staff were moved to Colleges of Education it was agreed that the most favourable available transfer of pension rights should be given. For those transferring to the Universities Superannuation Scheme (USS) a bulk transfer arrangement was agreed. Bulk transfers are more favourable than individual transfers because their transfer value is based upon movement in wages rather than prices. By its nature, however, a bulk transfer is not finalised until every case has been calculated. There have been many delays; while some of these have been unavoidable some were the result of poor performance by this Agency. With the benefit of hindsight we would have treated them differently. The bulk transfer of funds has not yet been completed; however the individuals pension entitlements are secured because the liabilities are accepted in full by the USS. To underpin this, significant payments on account have been made by the NHS Scheme to fund these liabilities. We are hoping, with the co-operation of the USS and their actuaries to be in a position within the next few weeks to be able to make the final payment to complete the transfers. For those NHS staff who were transferring to the Teachers Superannuation Scheme (TSS) different arrangements were agreed, amounting to a 1:1 transfer of service. This involves no transfer of funds because both Schemes are notionally funded by the Exchequer. However the detailed work to complete the transfers has been undertaken on a case by case basis. To our knowledge all but a few of the 2.864 cases have been cleared. Against this background the answers to your questions are as follows: What assessment has the Secretary of State made of the impact on requests for early retirement resulting fro the delays in processing requests for transfer from the NHS Superannuation Scheme to:

(a) the USS; and
(b) the TSS.

While there have been significant delays in finalising the bulk transfer payment to the USS, the pensions entitlements of the individuals concerned have been safeguarded between the USS and the NHS Pension Scheme. The Schemes are not aware of any direct impact that the delay in finalising the bulk transfer payment has had on transactions involving early retirements. In administering early retirements from the TSS, where a transfer was outstanding, both schemes have given such cases priority treatment conclusion. Again, the Schemes are not aware of any retirees who have been adversely affected by delays in the transfer process. What is the average time limit for processing a transfer from the NHS Superannuation Scheme to:

(a) the USS;
(b) the TSS.

The Agency only maintains figures for average clearance times for all transfers casework. We cannot distinguish between individual Schemes. Normal transfers go through two stages—provisional, covering an estimate and members option process; and final, which culminates either in a payment reflecting the capitalised value of the pension entitlement or confirmation of the service being transferred. The average times to clear, in working days over the past two years are:

	Provisional	Final
1996–97	60	37
1997–98	68	47

258WA statement on the staffing levels necessary to process applications for transfers from the NHS Superannuation Scheme to:

(a) the USS;
(b) the TSS;

To avoid delays to applicantsAll operational work is processed within the Agency by multi-skilled teams dealing with all aspects of the Scheme, not just transfers. In 1996–97 the equivalent of some 21 full-time staff were deployed on transfer cases, 22 in 1997–98. However at any one time the Agency can deploy many more staff than this, if it would help a particular situation. The delays in finalising the USS and TSS special exercises have not been attributable to staffing levels, but more to their complexity and difficulties with data. The TSS exercise is nearly completed. The USS exercise is expected to be completed by 31 December 1997.How many requests for transfer from the NHS Superannuation Scheme to:

(a) the USS;
(b) the TSS;

have been subject to a delay of:

(i) 3 months;
(ii) 6 months;
(iii) 1 year;
(iv) 18 months;
(v) 2 years.

The USS bulk transfer was planned to be completed by the Schemes and their actuaries by May 1997. I should point out that this recognises that the completion date has had to be reschedules to reflect each new college merger as it came within the ambit of the overall bulk transfer. The last such merger took place in November 1996. I am afraid the Agency does not hold separate clearance data about individual TSS cases related to the College of Education transfers.How many cases involving miscalculations in the amounts involved in transfers from the NHS Superannuation Scheme to:

(a) the USS;
(b) the TSS;

have led to:

(i) overpayment;
(ii) court orders;
(iii) referral to the Ombudsman.

The USS transfers are covered by a bulk payment and this has not yet been finalised. The individual TSS cases do not involve transfers of amounts because the Schemes are both notionally funded by the exchequer. We are not aware that any transfer transaction has led to an overpayment, court orders or referrals to the Ombudsman.How many requests for transfer from the NHS Superannuation Scheme to the USS involve staff currently employed at:

(a) Nottingham;
(b) Trent Universities;

and how many have been subject to delays of:

(i) 3 months;
(ii) 6 months;
(iii) 1 year;
(iv) 18 months;
(v) 2 years.

Staff at Mid Trent College merged with Nottingham University and transfer data about the 189 staff transferring to the University of Nottingham was released to USS just over 3 months later than planned. A query for one member of staff remains outstanding. Staff at North Trent College merged with Sheffield University and transfer data about the 198 staff transferring to the University of Sheffield was released to USS some 9 months later than originally planned. We are not aware of any outstanding queries relating to these cases.