Employer roles and responsibilities

The following outlines the role and responsibilities of all Employers in the Fund and the performance standards Employers are expected to meet to enable the Fund to deliver an efficient, quality and value for money service. The Employer role is divided in to two key areas: 

  • Scheme membership and employer administration
  • Scheme governance and administration

Scheme membership and employer administration

This section details the function which relate to the administration in respect of individual scheme members benefits.

 

Employer responsibility Action required by employer Timescale for Employer to act 
New starter  Notify the Fund of new starters to the LGPS. Within 4 weeks of member joining or such shorter periods as required by autoenrolment obligations.
Employee contributions  Arrange for the correct deduction of employee contributions from a member’s pensionable pay.  Immediately on joining the scheme, opting in or a change in circumstances.
Employee contribution rate Ensure the correct employee contribution rate is applied. Immediately on commencing scheme membership and in line with the Employers’ policy on banding changes and, as a minimum, in each April payroll thereafter.
Change of Personal Circumstances Notify the Fund of any material changes in employees’ circumstances (e.g. marital or civil partnership status) using the method stipulated by the Fund. Within 4 weeks of notification by the scheme member of a change in circumstances
Members Leave of Absence Notify the Fund of leaves of absence (industrial dispute, child related leave, authorised absence and unauthorised absence) Notify member of options regarding any unpaid authorised absence (APC to cover breaks) Inform the pension fund of APP for relevant periods of absence

Monthly via monthly contribution submission

On a monthly basis via CARE return
Additional Pension Contributions (APC’s). Commence / Cease deduction of additional pension contribution or amend such deductions, as appropriate

Month following election to pay additional pension contributions.
Additional Voluntary Contributions (AVC’s) Arrange for deduction of AVC’s and payment over of contributions to AVC provider(s)

Commence deduction of AVC’s in the month following the month of election.

Pay over contributions to the AVC provider (s) by the nineteenth of the month following the month of deduction.
Member Leaves Employment Notify the Fund when the member leaves employment including an accurate assessment of final pay using the method stipulated by the Fund.

By the end of the next month after the date of leaving
Member due to Retire. Notify the Fund when a member is due to retire including an accurate assessment of pay and confirmation of reason for leaving using the method stipulated by the Fund.

As soon as practicable and, where possible, before the retirement date.
Death of a Member Notify the Fund of the death of a scheme member using the method stipulated by the Fund.

As soon as practicable, but within 10 working days of being notified of the death.
Internal Dispute Resolution Procedure (IDRP) Appoint person for Stage 1 of the IDRP and provide full details to the Fund.

Within 30 days of becoming a scheme Employer or following the resignation of the current adjudicator.

Scheme governance and administration

Employer responsibilityAction required by employerTimescale for employer to act
Nominated person Confirm a nominated person to receive information from the Fund and to take responsibility for disseminating it within the organisation. Within 30 days of Employer joining the Fund or change to nominated representative.
Pensions discretions Formulate and publish policies in relation to all areas where the employer may exercise a discretion within the LGPS (including providing a copy of the policy document to the Fund). To be kept under review and a revised statement published within one month of any changes and no later than 6 months after being informed by the Fund of any relevant changes.
Enquiries Respond to enquiries from the Fund. Within 10 days from receipt of enquiry.
Employee and employer pension contributions Remit Employer and employee contributions to the Fund and provide schedule of payments in the format stipulated by the Fund. Cleared Funds to be received by 19th calendar day of the month after deduction.
Employer contribution Implement changes to Employer contribution rate as instructed by the Fund. At date specified on the actuarial advice received by the Fund.
Year-end information Provide accurate year-end information required by the Fund in the format stipulated in the instructions issued by the Fund By 30th April following the year-end.
Information Distribute any information provided by the Fund to scheme members/potential scheme members. Within 10 days of receipt.
Website Refer new /prospective scheme members to the Fund’s website. Within 10 days of commencement of employment or change in contractual conditions.
Contracting services Notify the Fund if contracting out services which will involve a TUPE transfer of staff to another organisation. At the time of deciding to tender so that pension costs can be included in the tender decision-making process.
Admission agreement Work with the Fund to arrange for an admission agreement to be put in place when contracting out a service and assist in ensuring it is complied with. Admission Agreement to be put in place no later than date of contract. Notify Pension Fund if terms of Admission Agreement are not being met.
Admission agreement (potential cessation) Notify the Fund if the employer ceases to admit new scheme members or is considering terminating membership of the Fund. As soon as the decision is made, so that the Fund can assess the impact and instruct the actuary to carry out calculations, if applicable.
Retirement costs (strain) Make additional Fund payments in relation to early payment of benefits from flexible retirement, redundancy or business efficiency retirement or where a member retires early with Employers’ consent. Within 30 days of receipt of invoice from the Fund.
Additional costs Make payment of additional costs to the Fund associated with noncompliance with performance standards of the scheme Employer. Within 30 days of receipt of invoice from the Fund.
Breaches Respond to enquiries from the Fund relating to Breaches of the Law. Within 5 days of the request.
Invoices Prompt payment of invoices issued by the Fund for specific services provided. Within 30 days of receipt of invoice from the Fund.

For more information, please contact us.

 

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