Earlier in the year there were changes in the way strain costs are calculated when running redundancy estimates and the actual final calculation depending on when the calculations were run within the year.
If you have had an estimate calculated for you by LGSS Pensions before April 2018, the retirement factors used would have been the generic factors used by other LGPS funds. Following the valuation it was decided that from 1 April 2018 all strain costs would now be calculated using scheme specific factors, which allows for a more accurate reflection of the true value of the cost to the fund. This means that if you have had a quotation run using the old factors, the actual figure upon the final calculation may differ from the original quote you received and therefore could be higher than expected.
If you have had an estimate run before April 2018 and are in the process making the member redundant and will require an actual redundancy calculation, please contact LGSS Pensions so that we can run an up to date estimate, which will give you the new strain cost.
ESS has been amended from 1 April 2018 so all estimates that you run through ESS will take into account the new factors and as such will give a true reflection of the factors being used.
If you have any questions please do not hesitate to contact LGSS Pensions