The timeline on this page explains your responsibilities as an employer and when you need to take action. Remember that you are responsible for returning forms accurately completed and on time.
New employee hired
In most situations, new employees of Local Government Pension Scheme employers automatically join the scheme. If you are an admitted body, resolution body, or the employee is casual or has previously opted out of the scheme, check the employer’s guide for more information.
- Immediately check that the new employee is happy to join the scheme. You should provide the scheme summary explaining the benefits.
- With the employee’s official acceptance of offer letter, send a copy of form S1A - giving them the chance to opt out of the scheme.
- If they don’t opt out immediately return form S1 - particulars of new employee joining the scheme.
New employee induction
You should now explain how the scheme affects the new employee. In most cases they will pay 6% of their pay to the scheme until 31 March 2009. Thereafter they will pay a percentage determined by their full time equivalent salary at the previous 31 March.
Show the new employee the employee member section of this site. This will explain the basic benefits of the scheme.
Every year
Every year, employees will receive a statement of benefits. This explains how much scheme benefits they have built up so far and how much they would receive at their normal retirement date. By referring to A Guide to the Local Government Pension Scheme you can help your employees work out how much they will be due under different circumstances.
Any changes?
If any of the following change, you must notify us using the correct form immediately.
• change of name (including by marriage)
• amendment to incorrect date of birth
• amendment to National Insurance number
• change of contractual hours (particularly for part-time employees)
• opting out of the scheme
• periods of absence, authorised or unauthorised, including industrial action
• termination of membership or employment, with final pay details
• change in contribution rate (in special circumstances - refer to the employer’s guide)
It is also worth noting that pension contributions must be collected in respect of arrears of pay arising from retrospective pay awards or re-gradings. Where arrears of pay are being paid to a former employee, the SPFO must be notified of the revised details. If the arrears are paid within 6 weeks of the termination date, national insurance contributions will be due at the contracted out rate, whereas if the arrears are paid more than 6 weeks after the termination date national insurance at the non-contracted out rate will be due.
More information
You can download an employer’s guide to the Local Government Pension Scheme, with full details of your responsibilities, to print out and read when you want. If you would rather receive a copy by post, contact us.