Reporting the correct LGPS section and re-enrolment
Main section
You must enrol all new members into the main section of the scheme. They’ll pay contributions based on the main contribution bandings. Their pension will build up at a rate of 1/49 of their pensionable earnings. Once they’re in the main section, they can choose to move to the 50/50 section of the scheme.
50/50 section
The 50/50 section helps a member to reduce the cost of being in the LGPS without having to opt out. Whilst in the 50/50 section, members will pay half the normal rate of contributions. Their pension will build up at half the rate of build-up in the main section (1/98 of their pensionable earnings).
You must work out membership in the 50/50 section of the LGPS separately to membership in the main section. You’ll need to make sure you can report:
- pensionable earnings, and
- contributions
for the main and 50/50 sections separately. You must continue to pay employer contributions at the full rate.
Re-enrolment to the main section
The 50/50 section is designed to be for the short-term if people are finding it hard to manage their money. It means they can save less without leaving the LGPS. You must automatically move the member back into the main section:
- on your automatic enrolment/re-enrolment date
- if the employee goes on no pay due to sickness and stays on no pay at the start of the next pay period
The member can also choose to rejoin the main section at any time.
We recommend you read the LGPS HR and payroll guides on our forms and guides page.
