As an employer, you’ll know the importance of having contingency plans in place to cover unexpected events and costs that are beyond your control.
One event that can’t be anticipated is the death or early retirement through illness of an employee.
To protect you from the risks associated with paying additional costs in such situations, the Hertfordshire Pension Fund (the Fund) is introducing a new self-insurance approach, to be implemented by the Fund’s actuary, Barnett Waddingham. This will replace the cover currently provided by Legal & General (L&G).
Self-insurance works by creating a pool of assets to target specific risks that you, as an employer, can’t control – such as those mentioned above.
This approach is funded by setting aside some of the contributions you’re already making to the Fund as an employer, so there will be no extra cost.
This will come into effect on 1 April 2026, and all employers in the Fund will automatically be covered from that date onwards, unless you let us know that you wish to opt-out. However, with self-insurance offering employers so many benefits, we’re confident you will welcome the cover this provides.
Please note, this is not an insurance policy. The new self-insurance approach is funded through contributions already due from and paid by employers.
You won’t need to go through a long claims process to receive your money. Instead, this will be dealt with directly within the Fund.
Any excess premiums paid will be returned to you, which is not the case with other providers, such as L&G.
All of the risks that are currently covered by other providers will be covered by our new self-insurance approach.
Before the new self-insurance approach comes into place on 1 April 2026, you’ll have the chance to attend our dedicated forum on the 27 November, where you’ll hear directly from industry experts about the details of self-insurance and other important updates within the Fund. The main topic of the forum will cover the whole Fund results, we will then talk through the new self-insurance approach. To sign up for this forum click the button below.
We’ll also be running 1-2-1 employer surgeries if you wish to discuss individual employer results in more detail. If you’d like to attend one of our 1-2-1 employer surgeries on 27 November please email the Fund at HertsFundEmployers@hertfordshire.gov.uk by 20 November to book your slot.
The Fund does not believe opting out of this approach is of any benefit to employers. However, if you do not wish to be covered by our new self-insurance approach, please fill in and submit this form. Please ensure you maintain cover between now and 1 April 2026.
We want this to be a simple transition for employers, so if you’re happy to be covered under the new self-insurance approach, it will come into effect automatically on 1 April 2026 and the current cover you have with L&G will terminate at midnight 31 March 2026. All that will be required from you as an employer will be to submit the usual membership data as at 31 March 2026. This data will be used to prepare your finalised accounts instead of renewals accounts, you will be contacted by your current provider with more information when the transition takes place.
Please note, when your current policy terminates, so will access to the Employee Assistance Programme (EAP), you can find out more about alternative options at the upcoming employer forum.
In the meantime, you will be covered by your existing insurance policy until the new self-insurance approach comes into effect on 1 April 2026, unless your policy expires before 31 March then we recommend that you extend current arrangements to 31 March 2026.
If you have any questions about your remaining period of cover or the policy termination you can contact the Fund’s Ill-Health Liability Insurance (IHLI) team on 0121 210 4356 or at IHLI@hymans.co.uk.
A chance to learn more about the self-insurance approach from the Fund actuary.
Date by which you must opt-out if you do not wish to be covered by the new approach.
The new approach comes into effect.
A one-pager about self-insurance and why the Fund has chosen this approach.
We’ve put together answers to common questions to help you through this change. Make this website your go-to for information and we will keep it updated regularly as things evolve.
The Fund is introducing the new self-insurance approach as it’s a cost-effective way to cover our employers from costs arising from paying unexpected benefits to members.
Self-insurance protects and stabilises the funding position of employers while also removing risk of employers failing under the strain of unaffordable costs arising from ill-health retirement with no insurance in place.
This won’t impact the rates employers are paying already. Cover is provided by pooling assets from contributions already being paid by employers.
Please inform us if you wish to opt-out of this new self-insurance approach, you can do this by following the instructions detailed in the ‘How to opt-out’ section above.
If you decide to opt-out of the new self-insurance approach, you won’t have access to any of the benefits mentioned on this website. As an employer you will be responsible for the administration and operation of ill-health retirement and death in service insurance after 1 April 2026 and you may need to pay a higher premium to external providers as a result.
We encourage you to attend our dedicated forum on 27 November, where you’ll find out, in more detail about self-insurance and why this approach has been selected as the best option for Fund employers. You’ll also have the opportunity to ask questions before deciding if you wish to opt-out or not.
If you currently have an existing insurance policy in place with L&G you will remain covered for the cost of providing ill-health and death in service benefits until 31 March 2026, unless your policy expires before 31 March then we recommend that you extend current arrangements to 31 March 2026. After this our new self-insurance approach will come into effect automatically from 1 April 2026. Your current policy will then be terminated and you will be covered under the Fund’s new self-insurance approach.
If you have any questions about your policy termination, you can contact the Fund’s IHLI team on 0121 210 4356 or at IHLI@hymans.co.uk
With the introduction of our new self-insurance approach, any cover you have with L&G will terminate, this also means you’ll no longer have access to the EAP provided. You can find out more about options available to you at the employer forum on the 27 November. Please sign up here.
You don’t need to do anything. If you have insurance in place with L&G you will remain covered until midnight on 31 March 2026, unless your policy expires before 31 March then we recommend that you extend current arrangements to 31 March 2026. Our new self-insurance approach comes into effect on 1 April 2026.
You’ll be able to ask questions at our forum on the 27 November where we will cover the whole Fund results, and talk through the new self-insurance approach. There will also be an option to book a time slot for 1-2-1 employer surgeries just after with our Fund Actuary to discuss the new self-insurance approach in more detail. To sign up to the forum, click here.
You can find more information in the documents on this website.
If you have any questions about your remaining period of cover or the policy termination, you can contact the Fund’s IHLI team on 0121 210 4356 or at IHLI@hymans.co.uk
Alternatively, if you’d like to speak to one of the team at Hertfordshire Pension Fund, please get in touch using the details below.
