LGPS Pensionable Pay Calculation - Solution for Non-Recurring Payments
Use the delivered functionality to calculate the correct Pensionable Pay for employees with mid period absences and receiving nonrecurring pensionable payments during work time.
With the new balances you are able to determine the monthly value of Pensionable Pay which isn't prorated:
- <element name> LGPS APP Regular Earnings - To store recurring payments part of the normal salary and therefore part of Permanent Pensionable Pay
- <element name> LGPS APP Irregular Earnings - To store nonrecurring payments earned during the non-absence part period, not part of the Permanent Pensionable Pay
For periods with mid-period absences and nonrecurring payments given to the working period, a different calculation of the LGPS employer contribution takes place. It is based on the Pensionable Pay for part of the working time and the prorated Assumed Pensionable Pay.
The usage of the balances and calculation rules are as follows:
| Case | Employee | Employer |
|---|---|---|
|
Regular Months without Absences |
EE Tier based on Permanent Pensionable Pay and applied on Eligible Compensation |
ER fixed % applied on Eligible Comp |
|
Months with Mid Period Absences |
EE Tier based on Permanent Pensionable Pay and applied on Eligible Compensation |
ER fixed % applied on sum of Prorated LGPS Regular Earnings + LGPS Irregular Earnings + prorated Assumed Pensionable Pay |
|
Months with Full Period APP Absences |
EE Tier based on Permanent Pensionable Pay and applied on Eligible Compensation |
ER fixed % applied on Assumed Pensionable Pay |
Ensure legislative compliance.
Steps to Enable
To enable this feature:
- Create a new Main Pension Scheme element (see set up steps in OHC: Administering Local Government Pension Scheme for the United Kingdom)
- With this element creation, two new balances will be created:
- <element name> LGPS APP Regular Earnings
- <element name> LGPS APP Irregular Earnings
- Feed these balances with regular or irregular earning elements which will be used to calculate the Pensionable Pay correctly for periods with nonrecurring payments given to the non-absence period (working time).