Element Setup

Create your additional contribution types for LGPS using the secondary Additional Pension Contributions Pre-Statutory element classification to conform to the rules and regulations applicable to each of them.

It is recommended that you create elements for these scenarios (assuming the contribution type is used in your organization):

Additional Pension Contributions: Suggested Element Combinations

Additional Contribution Type	Scenario
Added Years	Recurring percentage (of Final Pensionable Pay)
Additional Pension Contributions (APC)	Recurring to allow for periodic or lump sum payments (lump sum payments will need to be end-dated at the end of the period the lump sum was taken)
	With or without employer contributions (with employer contributions to cover shared costs)
Additional Regular Contributions (ARC)	Recurring flat amount
Additional Survivor Benefits Contributions (ASBC)	Recurring percentage (of Final Pensionable Pay)
Additional Voluntary Contributions (AVC)	Recurring flat amount or percentage of pensionable earnings
	With or without employer contributions (with employer contributions to cover shared costs)
Preston Part-time Buy-Back Contributions	Recurring flat amount

Note: As shown above, the additional pension contributions are a flat amount or a percentage of pensionable pay, so don’t use rates as the main LGPS pension scheme does. There may be cases where you need to create multiple elements for one contribution type, for example:

Create Elements

To create elements follow these steps:

1. Using the Elements task, click Create to create a new element.
2. In the Create Element window, complete the fields as shown here:
   • Primary Classification: Pre-Statutory Deductions
   • Secondary Classification: Additional Pension Contributions Pre-Statutory
   • Category: Benefit
3. If the contribution deduction can be a one-off lump sum or regular flat amount (or both), specify that it is a fixed amount deduction.
4. Pension elements are recurring. In case of a one-off lump sum payment, you need to end date the element entry at the end of the period in which the payment was taken.
5. Additional questions are available on the questionnaire to identify the type of additional pension contribution you are creating.
6. Select Local Government Pension Scheme from the list of parent pension schemes.
7. 7. Select the type of additional contribution:
   • Added Years
   • Additional Voluntary Contributions
   • Additional Pension Contributions
   • Additional Regular Contributions
   • Additional Survivor Benefit Contributions
   • Preston Part-Time Buy-Back Contributions
   • Not Applicable
8. Enter the pension provider.

After you submit the questionnaire, various objects are generated.

Additional Pension Contribution Types: Summary of Objects Created

Object Type	Name
Element	<Base Name>
	<Base Name> Calculator
	<Base Name> Distributor
	<Base Name> Employee Contributions
	<Base Name> Employer Contributions
Additional Input Values	Parent Pension Scheme (Employee Contributions element)
	LGPS Additional Pension Type (Employee Contributions element)
	Final Pensionable Pay (Employee Contributions element and if contribution type is Added Years or ASBC)
	Contribution Amount
	Contribution Percentage
	Payee
	Reference Number
Rate Table Override	LGPS Employee Pension Rates
Additional Balances	Additional Pension Contributions LGPS
	Additional Voluntary Contributions LGPS
	Additional Regular Contributions LGPS
	Added Years Contributions LGPS
	Part Time Buy Back Contributions LGPS
	Additional Survivor Benefit Contributions LGPS
	Final Pensionable Pay LGPS Added Years

Create Element Eligibility

You must define eligibility for the additional contribution type element. This enables you to add it to an employee’s Benefits and Pensions card.

Note: It isn’t necessary to define eligibility for the Employee Contribution (and Employer Contribution, if applicable) elements, as these are indirect elements.