Introduction to Local Government Pension Scheme

The local government pension scheme (LGPS) is available to employees working in local government or working for other employers participating in the scheme.

It comprises these qualifying main scheme and the additional optional contribution types to which employees can also contribute:

• Main Career Average Revalued Earnings (CARE) scheme
• Includes 50/50 section
• Additional contributions
• Additional Pension Contributions (APC)
• Shared Cost Additional Pension Contributions (SCAPC)
• Additional Voluntary Contributions (AVC)
• Shared Cost Additional Voluntary Contributions (SCAVC)
• Preston Part-time Buy-Back Contributions
• Added Years
• Additional Regular Contributions (ARC)
• Additional Survivor Benefits Contributions (ASBC)
• Personal/Stakeholder Pensions (outside of LGPS)

Use the pre-statutory deductions element template to create the pension scheme, additional contribution types, and related objects. This enables you to:

• Enrol employees into the main CARE scheme (and to the temporary 50/50 section, when required).
• Maintain a balance for previous Final Salary scheme membership (for example, where it is the contribution basis for specific additional contribution types) and for calculating final salaries for employees approaching retirement.
• Select the additional contributions employees contribute into and the amount they pay.
• Calculate your LGPS contributions in accordance with the rules for each scheme or contribution type.
• Automatically recalculate contributions for employees on assumed pay absences.

Note: When defining the pension scheme, you will need to select the employer type. Employer type “Local Government” covers the following, as defined by LGPS:

"The LGPS is offered by local government employers and by other organisations that have chosen to participate in it. If you are employed by a designating body, such as a town or parish council, or by a non-local government organisation which participates in the LGPS as an admission body, you can only join if your employer nominates you for membership of the scheme. Police officers, operational firefighters and, in general, teachers and employees eligible to join another statutory pension scheme (such as the NHS Pension Scheme) are not allowed to join the LGPS."

By selecting “Local Government” as the employer type, the element template will create elements, balances, calculation value definitions, formula etc. specific to calculating the deductions for LGPS. These payroll objects will not be suitable for all public sector pensions.