NILGOSC

 

Circular 05/2005 – 1st June 2005

To: Salaries and Wages Officer                Please forward a copy of this Circular to your Human

      All Employing Authorities                   Resources Officer or Department

 

Dear Colleague

 

1.     The Local Government Pension Scheme (Amendment No.2) Regulations (Northern Ireland) 2005

The Local Government Pension Scheme (Amendment No.2) Regulations (Northern Ireland) 2005 have been made by the Department and come into operation on 1 June 2005. The Regulations contain only one amendment which is likely to have any significant impact on employers. This is, that from 1 June 2005, the qualifying period for eligibility for benefits will be three months, rather than two years, as previously.

 

Consequently, members who join the Scheme on or after 1 June 2005 will not be able to receive a refund of contributions once they have completed three months membership. If they opt out of the Scheme or leave employment within three months, unless they have transferred in pension rights, they are treated as not having been members of the Scheme in accordance with regulation 7(5). In these circumstances, employers are required to refund any contributions paid via their payroll (taking a credit in the monthly remittance to NILGOSC for any amounts which have already been paid over), adjust National Insurance contributions to “A” (Contracted-in) Rate, and advise NILGOSC in writing that membership has been cancelled (a form will be produced for this purpose in due course). Care should be taken when employing staff on temporary and short-term contracts to advise them that they will not be able to have a return of their contributions once they complete three months membership.

 

Existing members who joined the Scheme prior to 1 June 2005 retain the right to choose to have a refund of contributions for up to two years, unless they have transferred in pension rights. However, if they opt out of the Scheme or leave employment within three months of joining, contributions should be refunded through payroll as outlined above, provided there are no transferred in pension rights. In all other circumstances a Leavers’ Form LGS15 is required and the refund will be made by NILGOSC.

 

2.  Annual Returns

Thank you to all of you who have submitted your annual returns on which NILGOSC staff are now busily working. Others are reminded that annual returns were due to be submitted by 31 May 2005 and are now late. An amnesty is declared until Friday, 10 June 2005 and those authorities which submit their returns by this date will not incur administrative penalties. If you are unable to meet this deadline, please contact NILGOSC as soon as possible to explain why. Returns submitted after 10 June, without prior approval, will be subject to an administrative charge.

 

Yours sincerely

 

Lynda White

 

L M White (Mrs)

Pensions Manager