Section 11 - Making changes to a member’s pension record

A change in personal details, or employment, could affect how the administrators calculate a member’s benefit so we need to know any changes straight away.

Southwark Pension Services need to know about the following changes:

• Full time equivalent salary;
• Pensionable Pay;
• Hours worked;
• Weeks worked;
• Service breaks;
• Name; and
• Job title.

You will need to complete the appropriate form and provide a copy to Southwark Pension Services by post using their address.

Please complete a change of details form to confirm the date of change and the new contractual hours worked per week. Make sure the member’s new working hours as a percentage of whole-time and the contractual weeks are shown. For example:

• Hours worked: 18.50 / 37.00 = 50%
• Weeks worked: 39 / 52.143 = 74.7943%

This would then equate to 50% of 74.7943% = 37.3972% of full-time.

The hours shown on the form must only be contractual hours - other hours worked, such as non-contractual overtime, should not be included.

Local Government Pension Scheme (LGPS) benefits built up before 1 April 2014 are based on membership (service) and full-time equivalent pay. The service side of the equation is reduced in proportion for any periods of part-time employment. For example; if a member working full-time (37 hours per week) drops to 18.5 hours per week (18.5 ÷ 37 = 0.50), future service will only count at half of its calendar length as they are now working half the hours.

Whilst the CARE pension earned from service from 1 April 2014, is based on actual earnings, the actual and full-time equivalent hours are also needed in case any members may benefit from a calculation called the ‘Underpin’ – if required, this calculation will be done by Southwark Pension Services using the data you have provided. Please complete a change of details form to confirm the date of change and new pay details.

If a member takes an agreed period of unpaid leave because of additional maternity, paternity or adoption leave, industrial action, or sabbatical, you are responsible for completing the appropriate absence form, and for notifying Southwark Pension Services of the start of and the return from the unpaid leave:

• Notification of unpaid absence form; or
• Notification of return form unpaid leave form.

During the period of unpaid leave, the member will not be accruing any pension benefits, as no contributions are being paid by either the member or the employer. However, the member can opt to buy back the ‘lost pension’ by applying to pay additional pension contributions (APCs).

If the authorised unpaid absence is child related, and the member chooses to apply for an APC within 30 days of returning to work, you as the employer must pay two-thirds of the cost of the lost pension, called a Shared Cost Additional Pension Contract (SCAPC). You can read more in Section 23 - Members buying lost LGPS pension.

Once the additional contributions have been set up by your payroll department, you will need to provide a copy of the member’s completed APC application form, if applicable, to Southwark Pension Services.

In certain circumstances it may be possible for you as the employer, to notify Southwark Pension Services in advance of a reduction in salary by submitting a completed notification of absence form. The member should pay contributions on any actual pay received, but the employer should pay contributions on the full Assumed Pensionable Pay (APP).

You must report the APP amount to Southwark Pension Services each month on your Contribution Returns (HK221), as this will be used to calculate pension benefits for the member.

Read Section 24 - Assumed Pensionable Pay (APP) for more. You may also find the Payroll Guide.

Please tell us about any name changes straight away so the member’s record can be updated. The member can also inform us of any change in writing or by email.