Employer Charging Policy

Ensuring compliance with the LGPS and Disclosure of Information regulations is the responsibility of the Fund and employers even where the employer's payroll payroll service is outsourced.

The Fund and employers will ensure that all functions and tasks are carried out to agreed standards.

The Fund will monitor performance against the PAS on an ongoing basis and will liaise with employers in relation to any concerns. The Fund reports its own performance to the Pension Fund Committee (PFC) on a quarterly basis against internal key performance indicators. Employers' performance measured against the standards set out in the PAS will also be reported to the PFC. The Fund also monitors and reports on data quality in line with the Pension Regulator’s General Code of Practice.

The following shows the regulatory timescales for providing information and notifications to the Fund.

New starters 

• Within one month of starting employment.

Change in member's details

• Within six weeks of the event.

Leavers

• Within six weeks of the date of leaving.

Advanced Notification of Retirement (ADNOT form)

• As early as possible but at least 30 days before the last day of employment.

Retirements

• No later than one month following retirement.

Disclosure Regulations require that when a retirement takes place before Normal Pension Age (NPA) the NYPF must receive the leaver details no later than one month after the date of retirement. Where a retirement takes place on or after NPA, the NYPF must receive the leaver details no more than 20 days after the date of retirement.

Death in Service

• Within three working days of the employer being notified of the death of the member.

Contributions

• In addition, employers must make both employee and employer contributions to the Fund, in accordance with the Rates and Adjustment Certificate. All monies due to the Fund in respect of employees and employers contributions must be cleared in the Fund’s bank account by the 19th of the month (or the last working day before the 19th where the 19th is not a working day) following the month the contributions relate to. Under the regulations all payments made to the Fund must be accompanied by a statement. The employer must email a monthly return to pension.contributions@northyorks.gov.uk, in advance of their payment. This includes employers who provide monthly administration data via i-Connect.

The Fund’s policy is to chase outstanding information on a regular basis as follows:

• Original request issued.
• The first chaser will be issued 10 working days after the date of the original request.
• A further two chasers will be issued 10 working days apart.
• The case will then be escalated to the Pension Management Team who will issue a final chaser which will clarify the regulatory requirements including potentially reporting the employer to the Pensions Regulator.
• If no response is received within 10 working days the Pensions Employer Relationship Manager will make contact to discuss an improvement plan.

The Fund will issue employers with contribution spreadsheets at the start of each financial year which set out when the payments and accompanying information is due, in line with the PAS. The Fund’s policy is to chase any late payments or accompanying documentation.

Where employers fail to fulfil their obligations, charges may be levied as detailed in section 4. Whether or not charges are levied is at the discretion of the Fund. Charges are more likely to be levied on larger employers who repeatedly fail to meet their obligations.

An invoice will be issued to employers detailing any additional costs, including interest, in accordance with the charging scale set out in this policy. The charges reflect the time and resources used in resolving the issues. If the Fund has concerns about any employer failing to meet their obligations, the PFC will be informed.

The frequency of employers failing to meet their obligations will be monitored and where significant issues are identified, the Fund will contact the employer concerned and offer support and guidance. Working collaboratively with the Fund the employer will be expected to identify and agree the following:

• Training requirements
• A robust and measurable improvement plan.
• Regular contact with the Fund to provide progress updates against the data improvement plan.
• Clear milestones
• Accountabilities
• Appropriate internal monitoring
• Timescales

If poor performance continues which affects the Fund’s ability to perform its statutory functions, or the employer is not taking steps to improve its performance, the Fund will be required to report the employer to the Pensions Regulator.

If an employer fails to pay any amount due to the Fund within 30 days (other than monthly contributions, see section 4.0) a daily interest charge of 1% above the Bank of England base rate will be payable for each day the payment is overdue. This charge will only apply when payment is overdue by one month or more.

The Fund reserves the right to suspend charging for all or specific employers, if deemed appropriate, e.g. during a pandemic or where the application of charges would cause undue financial hardship.

Starter information

• Chase for missing information where one request has already been made; £5.00 per record, per chase. Code C1.
• Chase for missing information or incorrect information to be corrected where one request has already been made; £5.00 per record, per chase.  Code C2.

Employer estimate

• Chase for missing information or incorrect information to be corrected where one request has already been made; £5.00 per record, per chase. Code C13.

Advanced Notification of Retirement (ADNOT)

• Chase for missing form where one request has already been made; £5.00 per record, per chase.  Code C5.
• Chase for missing information or incorrect information to be corrected where one request has already been made; £5.00 per record, per chase. Code C6.

Death in service

• Chase for missing final pay information (leaver form or i-Connect) where one request has already been made; £10.00 per record, per chase.  Code C7.
• Chase for missing information or incorrect information to be corrected where one request has already been made; £5.00 per record, per chase. Code C8.

Leaver information

• Chase for missing final leaver information (leaver form or i-Connect) where one request has already been made; £10.00 per record, per chase. Code C3.
• Chase for missing information or incorrect information to be corrected where one request has already been made; £5.00 per record, per chase.  Code C4.

Employer authorisation (ill health and redundancy/efficiency)

• Request for missing employer authorisation; £10.00 per record, per chase. Code C9.
• Request for missing cost codes (NYC only); £10.00 per record, per chase. Code C10.

Data

• Post information: chase for missing or incorrect information where one request has already been made e.g. hours, service etc. £5.00 per record, per chase. Code C11.
• Pay information: chase for missing or incorrect information where one request has already been made. £5.00 per record, per chase. Code C12.

i-Connect

• Failure to use i-Connect to submit monthly data (charged by the number of pensionable members held on the Fund’s database). £5.00 per record charged at year end.
• Failure to submit monthly data by the agreed deadline. A charge will apply for each full month the file is delayed beyond  its due date.

Number of pensionable members
1 to 99: £50.00 per file
100 to 999: £100.00 per file
1,000 to 1,999: £200.00 per file
2,000 to 4,999: £300.00 per file
5,000 to 9,999: £400.00 per file
10,000 or more: £500.00 per file

Year End

• Failure to submit year end file by 30th April (charged by the number of pensionable members held on the NYPF database). *The below charges will apply for each full month the file is delayed beyond 30th April.

1 to 99: £50.00 per file
100 to 999: £100.00 per file
1,000 to 1,999: £200.00 per file
2,000 to 4,999: £300.00 per file
5,000 to 9,999: £400.00 per file
10,000 or more: £500.00 per file

• The following charges will also apply.

Incorrect file formatting: £5.00 per record
Missing or incorrect data: £5.00 per record
Reason for pay changes outside of tolerances not given: £5.00 per record
Missing starter and leaver information:£5.00 per record

Subsequent chasers will be charged at £2.50 per chase, per record.

If an employer annual return is received by 30th April and the return is accepted, no charge will apply.
If the annual return is received by 30th April and the return is rejected but subsequently re-submitted and accepted within two weeks, no charge will apply.

Monthly contributions
The following charges will apply for each full month the file is delayed beyond it’s due date.

• Charge for late payment: £100 per file plus a daily interest surcharge for the period the payment is outstanding of 1% above the bank base rate.
• Charge for late submission of supporting documentation: £100 per file.

Accounting

• IAS19/FRS102 valuations: Professional fees recharged where late information is provided by the employer. Cost will be notified prior to work starting.

Actuarial & legal advice

• Actuarial & legal advice for admission bodies and academy conversions: Professional fees recharged. Cost will be notified prior to work starting.

Technical Advice

• Ad hoc technical advice, (where recharging is deemed appropriate because the advice is not of general benefit to the Fund overall): Professional fees recharged. Cost will be notified prior to work starting.

*