In the Local Government Pension Scheme (LGPS) there are two sections of the Scheme, the main section and the 50/50 section. When an employee joins the LGPS you should automatically put them in the main section where they pay normal pension contributions in return for normal pension build up.
50/50 Section in the CARE Scheme
Once an employee is a member of the LGPS they can elect in writing to move to the 50/50 section. In the 50/50 section an employee pays half their normal contributions for half the pension. This flexibility may be useful during times of financial hardship as it allows an employee to remain in the Scheme rather than opting out.
- An employee wishing to move to the 50/50 section should complete a 50/50 election form.
- If an employee has multiple jobs they can opt for the 50/50 section in one, some or all of the jobs. They must provide details of the job(s) in which they want to move to the 50/50 section on the election form.
- Complete the employer section of the 50/50 election form and send a copy to the North Yorkshire Pension Fund (NYPF).
- The move to 50/50 can only take effect at the start of a new payroll period, a member cannot move mid month.
- i-Connect user: Update the employee on the next i-Connect return to show they have moved to the 50/50 section.
- Not an i-Connect user: Show the relevant sections of the Scheme on the year end return (this may be both 50/50 and main).
An employee must be moved back into the main section at the re-enrolment date, or if they go onto nil pay through sickness or ordinary child related absence. They can opt back into the 50/50 section at any time. For employees in the 50/50 section the employer still pays the full employer contribution rate.
Moving back to the Main Section
An employee can move back into the main section at any time. An employee must be moved back into the main section at the employer’s re-enrolment date and also if they go onto nil pay through sickness or ordinary child related absence. They can opt back into the 50/50 section at any time.
- An employee wishing to move to the main section should complete a main scheme election form.
- If an employee has multiple jobs they can move back into the main section in one, some or all of the jobs. They must provide details on the election form of the job(s) in which they want to move back to the main section.
- Complete the employer section of the election form and send a copy to the NYPF.
- The move back to the main section can only take effect at the start of a new payroll period, a member cannot move mid month.
- i-Connect user: Update the employee on the next i-Connect return to show they have moved to the main section.
- Not an i-Connect user: Show the relevant sections of the Scheme on the year end return (this may be both 50/50 and main).