Social Housing Pension Scheme (SHPS) future service contributions

Actions that need to be taken

Any employers with employees earning DB pensions in SHPS must:

• Decide what benefits to offer in the future.
  This is particularly true for any employer offering membership of the CARE 120ths section – SHPS has confirmed that it will be suspending that section for at least the next three years.
• Decide how the reduction in contributions will be split between the employer and the individual.
  There is no ‘default’, so employers must make an active decision. Given the scale of the change in cost, it may not simply be a case of maintaining past practice.
• Inform/consult with members as appropriate and inform TPT by 31 January 2025.
  If you are making changes that require employee consultation, it may be too late to start the process and meet the 31 January deadline. In these cases, you may need to take a ‘holding’ decision; do what you can do without consultation, before making a more informed decision at a later date after completing the necessary consultation.

Want to find out more?

LCP’s specialist team can help with all aspects of your pension strategy.  If you’d like to discuss how we can help, please do get in touch.