Eligibility of new employees into the LGPS
All employers that participate in the Wiltshire Pension our labelled under one of the following titles:
- Scheduled Bodies (e.g. Wiltshire Council, Fire, Police, Swindon Academy)
- Resolution Bodies (All town and parish councils)
- Admitted Bodies (Including community and transferee admission bodies)
Eligibility of new employees varies depending on which of these titles your employer falls under.
Scheduled Bodies
All employees with contracts of more than three months should be entered automatically into the LGPS unless they give you written confirmation that they wish to opt-out. They can do this by filling in an opt-out form.
When a new employee starts they should be given a starter pack and their employer must send us a starter form. The new member can opt out of the scheme at any time, but they will only be able to receive a refund of contributions if they do this within three months of joining.
‘Casuals’ which have no mutual obligation to work are ineligible to join as of 01/04/08, as are employees with contracts of less than three months. No mutual obligation means that neither the employer is obliged to offer a certain defined amount of work to the employee, nor is the employee obliged to accept a certain defined amount of work.
E.g. a bar tender who works in a community centre on an ‘as and when required basis’ is not eligible. There is no requirement to offer work and if he is busy he can turn down the work.
Please note: If you have been deducting contributions from someone who was ineligible since 01/04/08 you will need to refund these contributions. They will need to be informed that they have not been accruing service since that date. Please contact us before doing this.
More information about eligibility of casual employees.
Resolution Bodies
All resolution bodies must have a resolution in place stating what their eligibility criteria and admission processes are for new employees entering the LGPS.
However, the resolution cannot override the LGPS regulations, for example, they cannot allow casuals to be in the Scheme where no mutual obligation exists (see above) and they cannot allow those with a contract of less than three months to be eligible.
Examples of typical resolutions:
- The Council does not make it a condition of service for staff to join the LGPS at the start of the individual’s employment. All employees are eligible for entry into the LGPS subject to them making a positive election to become a member.
- All new employees are automatically entered into the LGPS unless they express a wish to opt out of the Scheme. If they opt out within 3 months they will be entitled to a refund of the contributions they paid. [Identical to Scheduled Bodies].
- Only employees in the post of [post name] are eligible for entry into the LGPS. Entry is automatic unless the member expresses in writing that they wish to opt out of the Scheme. If they opt out within 3 months they will be entitled to a refund of the contributions they paid.
Admitted Bodies
For admitted bodies, the eligibility criteria and admission process for new employees should largely be dictated by what their admission agreement says in the relevant clause. We normally refer to the possibilities as either being ‘open to new entrants’ or ‘closed to new entrants’.
Open to new entrants will still normally mean that approval from the employer and the Fund will be needed, without overriding the LGPS regulations (e.g. by allowing no mutual obligated casuals or those with less than a three month contract to join), and, for TUPE transfers, within the same area of employment under which the employees were transferred. Hence, in these cases the admitted body has some of the flexibility that resolution bodies have but potentially with certain restrictions as well.
However, for TUPE transfers both ‘open to new entrants’ and ‘closed to new entrants’ situations, anyone who transferred across to the new employer who was eligible to enter the LGPS at the date of transfer but who was not currently a member (normally because they had opted out without their previous employer) should be allowed to opt in to the Scheme should they make a written decision to do so.
If you need further clarification on any of the above please contact our Employer Relationship Manager andrew.cunningham@wiltshire.gov.uk or 01225 713612.
Wiltshire Pension Fund, Wiltshire Council - Bythesea Road,Trowbridge, Wiltshire, BA14 8JJ.
© 2009 Wiltshire Pension Fund.