A strain cost calculation determines the extra cost to a pension fund when an employee retires early or receives unreduced benefits. This cost is calculated using specific formulas from local government actuaries. The extra cost is covered by additional employer contributions, which need to be paid within two weeks.
All employers can run Strain on the Fund Cost estimates using i-Connect.
There are two types of reports you can run:
- Employer – provides bulk data for all members aged 55 and over for each requested employer.
- Member – a member specific request. The member’s National Insurance number is required for this option – select which members you’d like to appear on the report.
How to request Strain Cost Quotation reports
- Click the ‘Reports’ icon on the i-Connect Dashboard.
- Select ‘generate report’ to start.
- Choose ‘Strain Cost Calculation Quotation’ report.
- Enter the calculation date (the proposed date of leaving - past present or future).
- Select either employer or member – if member, enter their national insurance number, separating individuals with a comma or a space. Select ‘add’ for each member you wish to run the report for.
- Finally select ‘request report’ / ‘request member report’.
You will then be taken to the Requested Reports screen, which lists the newly requested report and other reports you have requested. Requests may take up to 24 hours to complete and you will receive update notifications via email.