Introduction to Guide
The purpose of this guide is to be comprehensive and informative on all the main tasks and issues that employers need to be aware of.
Although this guide is intended to be used as a reference point, rather than something to be read from start to finish, we encourage all employers to spend some time familiarising themselves with the content.
A brief summary of employer responsibilities
In order for both Scheme Employers and Wiltshire Pension Fund to minimise administrative work, as well as the need to chase missing data and prevent erroneous data from entering the system, it is vital that each employer is aware of its' responsibilities.
Daily/Weekly (or as and when required)
New Starters
- Scheduled Bodies - Inform eligible new employees that they will automatically be admitted into the scheme.
- Resolution Bodies or Admitted Bodies - Inform eligible new employees of their admission in line as required. Your statutory resolution (Resolution Bodies) or admission agreement (Admitted Bodies) should provide further details on eligibility.
- Give new LGPS members a Pension Starter Pack. These can be obtained by contacting Andrew Cunningham.
- Begin to collect contributions from the employee (based on the relevant bands) and from the employer (as instructed by the Fund).
- Complete a Starter Form and send it to us.
See section 2 for more details
Inform us of any changes - for example:
- A change in an employee's part-time percentage
- Employee name address or national insurance number
- Elections to opt-out or to opt back in
- Upaid maternity leave or any other type of unpaid leave
See section 3 for more details
Leavers, Retirements and Deaths
- Send us a completed 'Leaver Form' or 'Retirement Form
See section 4 for more details
To meet the targets set out in the Administration Strategy
- These are ongoing targets relating to the promptness and accuracy of information that you send us.
See section 8 for more details
Monthly
Contributions
- Send in a 'Monthly Contribution Return' with your payment or by email if you pay by BACs. Payment and schedule must be with us by the 19th of the month (e.g. October would be due by 19th November).
See section 6 for more details
Infrequently
Employer Discretions Policy
- Complete, update and send us a copy of your Employer Discretions Policy. This is mandatory.
See section 7 for more details
Outsourcing/TUPE Transfers
- To inform Wiltshire Pension Fund of any TUPE (or similar) transfers of staff to another organisation at the earliest possible opportunity.
See section 9 for more details
If you feel you need further information or training on any of these areas please email Andrew Cunningham or telephone 01225 713612
Pension Jargon
LGPS - The Local Government Pension Scheme
Pensionable Pay - An up to date definition of pensionable pay can be found here
Qualifying Membership - is the calendar length service in the scheme. This will be exactly the same if someone works part-time or full-time because it is the length of time that has passed between them joining the scheme and leaving the scheme.
Reckonable Membership - Actual service in the scheme used to calculate a scheme member's pension and lump sum (where applicable).
Retirement Grant - A lump sum (where applicable) made when a scheme member retires. It is usually paid into a bank account via the BACs system.
Additional Regular Contributions (ARCs) - An arrangement with us to buy additional pension in the scheme. This replaces what was formally known as Added Years. We take extra contributions from the scheme member for a contracted number of years.
Additional Voluntary Contributions (AVCs) - Members can top up their pension benefits by building up a fund of money. This can be used to buy extra pension provision at retirement. We offer an in-house scheme with Prudential.
Freestanding Additional Voluntary Contributions (FSAVCs) - These are like AVCs but the scheme member makes a private arrangement, commonly with an insurance company. The member bears all the administration costs themselves.
Deferred Benefits - A pension and lump sum (depending on circumstances) held for a scheme member who has left before retirement age. The benefits are held until retirement age and are index-linked to keep pace with inflation.
Nomination Form - This can be found in the Starter Pack and employees should be encouraged to complete it as it confirms who the scheme member would like the death grant paid to should they die in service.
Opting-out - If an employee (temporary or permanent) decided not to join or decided to leave the scheme during their employment, they can make a decision to opt-out. It is important that they do so within the first 3 months of joining to be entitled to a refund of contributions.
Variable-time Employee - An employee whose pay is calculated by reference to duties rather than the number of hours worked OR an employee whose duties only have to be performed on an occasional basis (e.g Returning Officer or Registrar).
Admission Agreement - A legal agreement which needs to be signed before a new admitted body can enter the fund.
Admitted Bodies - These are bodies that have an admission agreement with the Pension Fund to allow its' employees to join or remain in the LGPS. There are 2 kinds of admission bodies - 'Community Admission Bodies' (CABs), typically providing a public service for no financial gain and 'Transferee Admission Bodies' (TABs), typically operating a service contract with a local authority.
Since TABs are created as a result of outsourcing, they need to enter into a three way agreement between themselves, the original scheme employer and the Fund. Further details regarding Admission Bodies can be found in section 8.
Resolution Bodies - These are bodies which must specify their employees as being pensionable by passing a Statutory Resolution (typically Town and Parish Councils).
Scheduled Bodies - Are automatically eligible bodies under the LGPS Regulations, which do not need an admission agreement.
Statutory Resolution - A resolution passed by Town and Parish Councils stating that a specific employee or a group of employees may join the scheme.
Employer Discretions - Discretions that the employer has under the regulations which need to be determined and notified to the fund.
Statutory Notification - A statement sent to scheme members showing the information about their pension record held by the fund. A copy is sent to the employer to keep as a record of the member's pensionable history.
Wiltshire Pension Fund, Wiltshire Council - Bythesea Road,Trowbridge, Wiltshire, BA14 8JN.
© 2009 Wiltshire Pension Fund.