From 1 April 2014 the LGPS has two Sections, the Main Section and a 50/50 Section. Whilst in the 50/50 Section members pay half contributions for half benefits.
Members should always be contractually enrolled or automatically enrolled/re-enrolled or opt in to the Main Section. They may then elect to move to the 50/50 Section by completing a 50/50 Option form.
The 50/50 Section is designed to be a short-term arrangement for times of financial hardship where otherwise the individual would opt out of the LGPS completely. As such, you must automatically move the member back into the Main Section:
- On your automatic enrolment/re-enrolment date (irrespective of the employee’s worker category under automatic enrolment legislation)
- If the employee goes on nil pay due to sickness and remains on nil pay at the beginning of the next pay period
A fundamental data requirement of LGPS 2014 is that you must be able to provide LGSS Pensions with Cumulative Pensionable Pay and Cumulative Employee Contributions separately per Section.
On moving to the 50/50 Section there may also be an impact on any additional contracts the member is currently paying.
You are strongly recommended to make yourself aware of the detailed employer responsibilities around Scheme Sections as outlined in the LGPS 2014 national HR and Payroll Guides available here:
LGSS Pensions has also produced a recommended testing guide for LGPS 2014 which is available from our LGPS 2014 for Employers page.