Set Up Main Pension Scheme Element

As all new members join the main CARE scheme and existing members transferred to it after 1 April 2014, only a main scheme element is required.

Note: The necessary balances are created to support any calculations that are dependent on final salary for members who had previous enrolment in the final salary scheme.

Create an Element for the Main Pension Scheme:

1. Using the Elements task, click Create.
2. In the Create Element window, complete the fields with these values:
   • Primary Classifications: Pre-Statutory Deductions
   • Secondary Classifications: Pension Plan Pre-Statutory
   • Category: Benefit
3. Click Continue.
4. Select 'Percentage Deduction' for employee and employer contribution rules and enter any rate.
   Note: This will ignore the value definition and predefined LGPS value definitions will be applied.
5. No pension caps are predefined. You must define these, if required.
6. Ignore the question on Additional Contribution Rules.
7. Select 'Yes' to the question, Is this a Qualifying Pension Scheme?
8. When you select 'Yes', an additional question is displayed about the employer type, where you select Local Government.
9. You can then select the normal retirement age for the scheme, in this case, State Pension Age.

After you submit the questionnaire, various objects are generated.

Summary of Objects Created

Object Type	Name
Element	<Base Name>
	<Base Name> Calculator
	<Base Name> Distributor
	<Base Name> Employee Contributions
	<Base Name> Employer Contributions
Rate Table Override	LGPS Employee Pension Rates
	LGPS Employer Pension Rate
Additional Input Values	Permanent Pensionable Pay (Employee and Employer Contributions elements)
	Employee Contributions CEC1 (Employee Contributions element)
	Employee Contributions CEC2 (Employee Contributions element)
	Pensionable Pay CPP1 (Employee Contributions element)
	Pensionable Pay CPP2 (Employee Contributions element)
	Final Pensionable Pay (Employee Contributions element)
	Assumed Pensionable Pay (Employee and Employer Contributions elements)
	Annualized Permanent Pensionable Pay (Employee Contribution element)
	Calculation Rate Frequency
	Calculated Pensionable Pay
Additional Balances	Employee Contributions CEC1
	Employee Contributions CEC2
	Pensionable Pay CPP1
	Pensionable Pay CPP2
	Final Pensionable Pay
	Permanent Pensionable Pay
	Assumed Pensionable Pay
	Calculated Pensionable Pay
Additional Value Definition	<Base Name> Normal Retirement Age
	<Base Name> Employer Type for Pension
Additional Data Capture on Card	Member of 50/50 Section
Formulas	<Base Name> Pension Calculator
	<Base Name> Pension Distributor

Note:

• The calculated pensionable pay balance is a delivered balance used by the payroll process to calculate the annualized permanent pensionable pay when the calculation rate frequency is either quarterly or semi-annual.
• To use a frequency other than the default of monthly, you will need to create a new element. This will ensure that the necessary objects, such as element input values and balances, are available.

Once the element is created, a formula is generated with the rules specific to the scheme being created. The formula includes:

• The calculation of employee and employer calculation rates.
• Switching employer contributions to use assumed pensionable pay when assumed pay absences apply.

Other global objects may be created, including balances that are created for all pre-statutory deductions, such as eligible compensation, and also additional calculation value definitions that aren’t specific to LGPS. Those aren’t listed here.