Changes to Membership
It is essential that any change in employment conditions that will ultimately affect the calculation of a scheme member's benefits, be notified to the pension scheme administrators by completing Form LGS15B (or by completion of a different form as agreed between the employing authority and the scheme administrator).
The service standards require the employing authority to notify the scheme administrators of any contractual change within 20 working days of the effective date of the change.
The following changes should be notified to the pension administrators:
1. Change in name and/or status;
2. Change in contribution rate (see Contributions section for further information)
3. Change in contractual hours of work per week;
4. Change in contractual number of weeks worked in the year;
5. Change in home address;
6. Any period resulting in a break in service. Contributions should be deducted from the first thirty days of any period of absence. Upon returning to work, the scheme member should be given the opportunity to avoid a break in membership by paying back the "missed" contributions. The regulations state that a scheme member should make an election to pay back contributions within thirty days of returning to work. An employer discretion, and one for which a policy decision should be made, is to extend that thirty day period. The period over which the scheme member can pay back the contributions should be agreed between the employee and the employer.
7. Any period of maternity leave. During any period of paid maternity leave an employee must pay basic contributions on the actual pay received whereas the employer has to pay pension contributions on notional full pay. During any period of unpaid Ordinary Maternity Leave, an employee will be deemed to have paid basic contributions but the employer will have to pay contributions on the notional full pay. The service period counts as normal for pension purposes. During any period of unpaid Additional Maternity Leave the unpaid period will not count for pension purposes unless an employee makes an election for it to count. Such an election has to be made within 30 days of returning to work or of ceasing employment if sooner. The employer has discretion to extend this period. Where an election is made, the employee has to pay contributions based on the level of earnings being received on the day before the unpaid period began whereas the employer has to pay contributions on the notional full pay. If an employee has a period of maternity leave during the final year of employment, the final pay figure to be used for benefit calculation purposes is the amount of pay that would have been received but for the maternity leave period.
8. Any period of paternity leave - During any period of paid paternity leave, an employee must pay basic contributions on the pay actually received whereas the employer must pay contributions on the notional full pay. The service will count as normal for pension purposes. During any period of unpaid statutory paternity leave the employee will be deemed to have paid basic contributions but the employer has to pay contributions on the notional full pay. The service will count as normal for pension purposes.
9. Any period of adoption leave - During any period of paid adoption leave the employee must pay basic pension contributions on the pay actually received whereas the employer has to pay contributions on the notional full pay. During any period of unpaid Ordinary Adoption Leave, the employee will be deemed to have paid basic pension contributions but the employer has to pay contributions on the notional full pay. The service will count as normal for pension purposes. During any period of unpaid Additional Adoption Leave, the unpaid period will not count for pension purposes unless the employee makes an election for it to count. Such an election has to be made within 30 days of returning to work or of ceasing employment if sooner. The employer has discretion to extend this period. Where an election is made, the employee has to pay contributions based on the level of earnings being received on the day before the unpaid period began whereas the employer has to pay contributions on the notional full pay. If an employee has a period of adoption leave during the final year of employment, the final pay figure to be used for benefit calculation purposes is the amount of pay that would have been received but the adoption leave period.
10. Any period of absence due to a trade dispute or strike. To avoid the loss of membership for any day's strike, a scheme member can make a contribution to avoid a break in pensionable membership for the strike period. The contribution rate payable is 16% of the lost pay, being the difference between the member's actual pay (if any) and the pay that would normally have been received but for the trade dispute.
11. Jury service - contributions should continue to be deducted from any member who is called to attend jury service.
12. Reserve Forces Service Leave - where a scheme member is on reserve forces service leave he or she is deemed to have paid contributions for the period of that leave and therefore retains full scheme membership unless during the period of leave his or her reserve forces service pay equals or exceeds the pay he or she would normally have received. In such a case the member must continue to pay contributions, standard and additional if any, in order to retain full scheme membership.
IMPORTANT NOTE: In all cases where a member has a break in service but has the option to pay additional contributions in order to avoid a break in pensionable membership, the member should be supplied with a copy of Form LGS12 upon returning to work.
