Local Government Pension Scheme – clarification for Academies and Free Schools

DfE have asked us to make Academies aware that the Secretaries of State for Education and for Communities and Local Government have written to local authorities and Local Government Pension (LGPS) Funds clarifying Ministers’ views of how Academies should be treated within the scheme.

Many Academies make similar employer contributions as they did as maintained schools but some are being charged higher employer contributions than before. DfE officials have been working with officials from DCLG, who lead on LGPS policy, as well as representatives from the Local Government Association (LGA) to resolve the issue.

The Secretaries of State have written to local authorities and LGPS pension funds setting out their preferred approach that where an Academy wishes to be pooled with the local authority for LGPS pension purposes, rather than being treated as a standalone employer within the fund, the fund should allow this to happen. This would mean the Academy continuing to pay the same employer contributions as it did as a maintained school. DfE is developing detailed guidance with DCLG and LGA to be available early in the new year.

Academies may also want to be aware of a technical consultation on changes to the LGPS Miscellaneous Regulations which has been launched by DCLG. Attention is drawn to Regulation 42 which proposes that Academies belonging to the same multi-Academy arrangement but situated in different local authority areas should fall within the LGPS fund relevant to their geographic location. We would encourage any Academy with an interest in this to take part in the consultation which ends on 27 February 2012.

If you wish to comment on any aspect of the DCLG consultation, you can access the consultation online.

The two Regulation change documents are dated 5.12.2011 “Draft LGPS (Misc) Regulations 2012” and “Cover Letter”. We would encourage Academies with an interest in this to take part in the consultation.

Information for:

  • Everyone
 

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