Pension Policy for Staff Who Are Members of the Nilgosc Pension Scheme
PENSION BANDING POLICY FOR STAFF WHO ARE MEMBERS OF THE LOCAL GOVERNMENT PENSION SCHEME (NI)
1)Introduction
On 1 April 2015 the Local Government Pension Scheme LGPS (NI) will be updated. One of the features of the new look scheme is the requirement for members to pay different contribution rates in accordance with actual pensionable pay as determined by their Employer irrespective of full time or part time status. The new Scheme is a defined benefit, career average revalued earnings (CARE) Scheme and a member’s pension benefits are based on average earnings while a member of the Scheme. This policyspecifies how and when contribution bands will be allocated by The Education Authority.
2)Joining the Local Government Pension Scheme (NI) and Contribution Rates
Employees will be eligible to join the pension scheme, providing they are employed under a contract of employment lasting for more thanthree months. If a contract extends beyond three months then the individual would be contractually enrolled at the end of the three month period unless they subsequently opt out of the Scheme.
Employeeswho opt out of the ‘new look’ scheme and later apply to rejoin the Scheme will be admitted in accordance with criteria set out in this policy and automatic enrolment regulations if applicable.
3)Banding
The banding rates applicable will be as determined by the Department of Environment annually.
Banding will be reviewed for the first pay period each year with the band for the next year being set by the actual pensionable pay received in the previous year, calculated by the current salary (where applicable) and a full year’s pay history of variable pensionable pay.
Where a full year’s history does not exist, for a new starter or opt ins, the calculation will be the hourly contractual rate multiplied by the number of hours and then annualised. You will be able to access actual banding thresholds on the EA and NILGOSC websites ( or
Any appeal against a decision regarding an employee’s pension contribution banding, or any other decision relating to an employee’s rights or liabilities under the scheme, will be as detailed in paragraph 18.
4)Change in Employment/Material Change
Where there is a change in employment which affects the member's pensionable pay in the course of a financial year, the Education Authority will determine that a contribution rate reflecting the different pay range should be applied. The Education Authority shall inform the member of the contribution rate applicable by updating the percentage on the pay-slip.
5)Changes to Working Hours
All assessments with regard to banding are based on the actual pensionable pay for the post so reductions in working hours, changes to working patterns, flexible working, job share etc may necessitate a reassessment of the employee’s contribution band.
6)Term-time- Non Retainer Fee Members
Term-time only members will have their contribution band assessed by reference to their actual pensionable pay and not the FTE grossed up to 52 weeks.
In the event of an employee moving from a 52 week contract to a term-time contract the rate will be reassessed. The contribution rate will be calculated is as follows:-
A term-time member on a 38 week contract with less than 5 year’s service with the employer at 31 March will have his/her contribution band calculated as follows:
Hourly Rate of Pay x Weekly Hours x 43.2
A term-time member on a 40 week contract with less than 5 year’s service withthe employer at 31 March will have his/her contribution band calculated as follows:
Hourly Rate of Pay x Weekly Hours x 45.2
A term-time member on a 38 week contract with 5 or more year’s service with the employer at 31 March will have his/her contribution band calculated as follows:
Hourly Rate of Pay x Weekly Hours x 44.4
A term-time member on a 40 week contract with 5 or more year’s servicewiththeemployer at 31 Marchwill have his/her contribution band calculated as follows:
Hourly Rate of Pay x Weekly Hours x 46.4
If an employee is admitted to the Scheme outside the annual banding assessment timeframe the assessment will be based on assumed pensionable pay.
7)Retainer Fee Members
A Retainer-fee member with less than 5 years service with the employer at 31March:
Hourly Rate of Pay x Weekly Hours x 48.4
A Retainer-fee member with 5 or moreyear’s service with the employer at 31March:
Hourly Rate of Pay x Weekly Hours x 49.1
If an employee is admitted to the Scheme outside the annual banding assessment timeframe the assessment will be based on assumed pensionable pay.
8)Sessional and Casual Workers
Casual employees are not contractually admitted/automatically enrolledto the Scheme but may opt to join.
9)Multiple Job Members
Employees with more than one contract of employment have the right to choose which posts they wish to be pensionable (opt out in all or some of their employments).
Where a member has more than one contract of employment their contribution band will be assessed separately based on the actual pensionable pay of each contract or the rules governing term-time or retainer fee staff (see paragraphs 6 and 7).
10)Maternity/Paternity/Adoption and Sick Leave
Members on maternity, paternity, adoption or half/no pay/ssp sick leave who go on reduced pay during the year must continue to pay contributions on their allocated band but on the reduced amount of pensionable pay they receive. When determining a contribution rate for staff already on half pay or no pay at 31 March, the contribution rate will be based on Assumed Pensionable Pay.
Members paying Additional Regular Contributions, contributions to purchase Added Years, Additional Pensionable Contributions (APCs) or Additional Voluntary Contributions (AVCs) for life cover must continue these contributions during any periods of maternity/paternity/adoption/sick leave. The employee should contact NILGOSC directly with regard to making these payments in circumstances where they are receiving insufficient pay to cover the additional payments in order that the cover or the additional contract does not cease.
11)Career Break
Throughout the duration of a career break the employee will remain as an active member. If a member decides to buy back the ‘lost’ pension they must opt to do so within 30 days of returning to work by purchasing an APC. The employer shall pay 2/3rds of the cost up to a maximum of 36 months. Further information on purchasing APCs can be sought from NILGOSC directly and anAPC calculator is available on the NILGOSC website at
Members paying Additional Regular Contributions, contributions to purchase Added Years, Additional Pensionable Contributions (APCs) or Additional Voluntary Contributions (AVCs) for life cover must continue these contributions during any period of career break. The employee should contact NILGOSC directly with regard to making these payments in circumstances where they are receiving insufficient pay to cover the additional payments in order that the cover or the additional contract does not cease.
12)Keep in Touch Days (KIT)
Pension contributions on Keep in Touch Days (KIT) days are payable based on the pay received.
If a KIT day is taken then it is deemed to be pensionable at whatever stage of the maternity leave period it is received.
13)Overtime/Additional hours
All overtime/additional hours is included in pensionable pay.
14)Acting-Up/Secondment/Additional Responsibility Allowances
Since an acting-up/secondment/additional responsibility allowances is normally temporary, the member’s contribution rate will be adjusted during the year based on actual earnings. If the acting-up/secondment/additional responsibility allowance is to apply for the whole of the next year it will be taken into account when determining the band.
15)50/50
The Scheme has a 50/50 section where a member can elect to pay 50% of the contributions and accrue pension at 50% ie1/98th instead of 1/49th. An employee must be an active member of the full scheme prior to opting into the 50/50 section. The Education Authority will continue to make full employer’s contribution while a member is in the 50/50 scheme. An employee wishing to opt into the 50/50 scheme should complete an LGS12 which details the impact this decision has on their Scheme benefits.
A member going on to no pay sickness or injury must be moved back into the main section from the beginning of the next pay period.
A member in the 50/50 section must be automatically moved back into the main section at the Education Authority’s automatic re-enrolment date.
16)Unpaid Leave
If an employee in the Scheme has a period of authorised unpaid leave/absence no pension deductions will be taken at time of absence. In January of each year the Education Authority will identify the affected staff and notify them giving the option to purchase Additional Pension Contributions.
Additional Pension Contributions can only be purchased for active employees. If employees are intending to leave the Education Authority it is their responsibility to request the purchase ofAdditional Pension Contributions prior to their last day of service.
There is no facility to purchase Additional Pension Contributions for periods of unauthorised unpaid leave.
Members paying Additional Regular Contributions, contributions to purchase Added Years, Additional Pensionable Contributions (APCs) or Additional Voluntary Contributions (AVCs) for life cover must continue these contributions during any period of unpaid leave. The employee should contact NILGOSC directly with regard to making these payments in circumstances where they are receiving insufficient pay to cover the additional payments in order that the cover or the additional contract does not cease.
17)Industrial Action
No contributions are payable during a period where a member is absent for one or more days because of industrial action and that period will not count towards the member’s pension benefits. However, a member may elect to cover this by taking out an APC contract. There will be no employer contribution towards an APC to cover a period of lost pension due to industrial action.
Members paying Additional Regular Contributions, contributions to purchase Added Years, Additional Pensionable Contributions (APCs) or Additional Voluntary Contributions (AVCs) for life cover must continue these contributions during any period of industrial action. The employee should contact NILGOSC directly with regard to making these payments in circumstances where they are receiving insufficient pay to cover the additional payments in order that the cover or the additional contract does not cease.
18)Reassessment of Banding
The Education Authority will re-assess bandings for all members every March unless there is a material change to the contract which results in a promotion/demotion in which case an immediate reassessment will take place.
The Education Authority will not re-assess pension contribution bandings after a back-dated pay award.
A backdated pay increase due to Job Evaluation is a permanent material change which affects pensionable pay however, while the pay increase may be backdated, the revised contribution rate will not be backdated but will be changed at the next payroll date. In instances where a pay increase is backdated over previous years the contributions due on arrears will be deducted at the rate already set for the year (ie the rate the member was paying in that year).
All employees who are members of the scheme shall be informed on their payslip that the reassessment has taken place.
19)Appeals
An employee is entitled to appeal against the Education Authority’s decision with regard to contribution banding, by giving written notice, setting out the grounds for the appeal, normally within 10 working days of the decision, or as soon as is reasonably practical following receipt of the decision.
The written notice of appeal (available from the EA website),should be sent to Mrs Joanne Coleman, Human Resources, Education Authority, Southern Region, 3 Charlemont Place, The Mall, Armagh BT61 9AX.
Appeals will be dealt with by the Chief Finance Officer or his/her nominee and Head of Human Resources or his/her nominee. The employee will be invited to attend a meeting to consider the appeal. The employee will be informed of the right to be accompanied by a trade union representative or a work colleague at that meeting. Appeals will be held within 10 working days of receipt of written correspondence from the employee or as soon as possible thereafter if a suitable date can not be agreed between the parties within 10 working days.
The employee will be informed of the outcome of the meeting within 5 working days.
If the employee remains dissatisfied, he/she may refer the matter to the County Court.
20)Consultation
This policy has been the subject of consultation with the recognised trade unions representing support staff.
1 June 2015
1