As an employer you are responsible for collecting the correct level of employer and employee pension contributions from your employees in the LGPS. Your are also responsible for collecting contributions in respect of:
- any Additional Pension Contributions (APC),
- Added Years,
- Additional Regular Contribution (ARC) or
- Additional Voluntary Contribution (AVC) contracts the member may be contributing to.
All collected employee contributions, with the exception of AVCs, should be paid monthly to the Pension Fund together with an appropriate amount of employers contributions. The absolute deadline for contributions to be received by the Pensions Service is the 19th of the month following collection.
Regulations dictate the circumstances in which late payover of contributions will incur interest charges. Regular late payment contributions may ultimately lead to sanctions against the employer concerned.
In addition to paying across the required contributions, you must also provide a schedule providing details of the amounts paid. This schedule is provided by LGSS Pensions.
Both late or non payment and late or no schedules are reported to the Pensions Regulator for a breach in the rules as stated in the Fund’s policy on our Governance pages.
AVCs should be directly paid to the relevant AVC provider the member has chosen. These contributions should not be sent to the Pensions Service.