Are you aware of the 2014 LGPS changes?
Payroll people must feel that life seems to revolve around pensions at the moment due to Pension Auto Enrolment. Those in the public sector are also gearing up for further changes with LGPS 2014, Teachers’ Pension 2015 and the upcoming NHS pension changes.
New acronyms seem to be landing in our email boxes all the time – APP, CPP, EAPC, EAVC, 50/50 – it seems like pension overload! In this first of a series of updates we take a look at LGPS 2014.
So based on what is currently going through parliament, here are the LGPS 2014 basics…..
As with the existing LGPS scheme the scheme is banded based on earnings, but the earnings will be actual pensionable pay per job and not FTE figures and will now include non-contractual overtime and additional hours for part-time staff. There will still be an attribution process to take place and policy decisions will need to be made by employers to decide the timing of the re-attribution of employees.
The number of bands has also increased:
Band Pensionable pay range for an employment Contribution rate for that employment
Up to £13,500
£13,501 to £21,000
£21,001 to £34,000
£34,001 to £43,000
£43,001 to £60,000
£60,001 to £85,000
£85,001 to £100,000
£100,001 to £150,000
£150,001 or more
In addition to these bands the provision has been put in place for employees to be able to elect to pay half contributions which will be known as the 50/50 section of the scheme but employers will still pay the full contribution.
There is so much more to consider with the new LGPS 2014 and Selima is working at the forefront of these changes to help our customers. As with RTI and Pension AE, Selima will be helping customers with this new legislation and ensuring that Selima software provides a great solution to the changes.