1. Administering Local Government Pension Scheme for the United Kingdom
  2. Employer Rates

Employer Rates

An empty calculation value definition is predefined to store the employer contribution rate that applies to all legal employers.

This enables you to maintain the rates in accordance with the current legislation. If the rates vary by legal employer, see the topic Multiple Employer Rates.

Calculation Value Definition for Employer Rate

  • Calculation Value Definition Name: LGPS Employer Pension Rate
  • Value Definition Group: Public Sector Pension Rates
  • Calculation Type: Flat Amount

The actuarially defined employer contribution rate for a three-year period includes the primary percentage rate and a secondary rate that is either a flat rate monetary value or an additional percentage rate. If one rate applies to all legal employers, enter these rates:

  • If both the primary and secondary rate are a percentage rate, enter the combined percentage rate into the LGPS Employer Pension Rate calculation value definition. For example, if the primary rate is 14.3% and the secondary rate is 4.1%, enter 18.4 in the calculation value definition
  • If the primary rate is a percentage but the secondary rate is a flat rate monetary value, enter the primary percentage rate into the LGPS Employer Pension Rate calculation value definition. You can pay the flat rate monetary value using Accounts Payable at a time that suits your business requirements.

Update this calculation value definition as needed to ensure the percentage is in accordance with legislative changes.

When entering the new pension year rows, end date the old rows to 31 March YYYY, and the new rows will be effective from 01 April YYYY. To recalculate pension contributions prior to the current year, you must enter the historical rates.