FOR EMPLOYERS

ENTERING OR EXITING THE FUND

The employers who can join the Local Government Pension Scheme (LGPS) are defined in Schedule 2 (parts 1-4) of the LGPS Regulations 2013. These are broadly separated into ‘Scheduled’ and ‘Admission’ bodies.

Scheduled bodies have a legal obligation to participate as an employer in the LGPS. Examples of scheduled bodies include local authorities, academies, and higher education bodies.

Admission bodies are employers that can choose to participate in the LGPS (such as charities or social housing associations) or that participate because they provide outsourced services to a scheduled body.

For further information, please get in touch using the details on our Contact Us page.

An employer ceases participation when it no longer has any employees building up pension benefits in the LPFA pension fund. When this happens, the LGPS regulations might require an ‘exit payment’ to be made by the employer.

LPFA’s Funding Strategy Statement sets out LPFA’s policy on employer cessations and exit payments. 

Employers should get in touch with us if they think it is likely that they will cease participation in the near future.

Employers should also get in touch with us if they are considering no longer offering LGPS benefits to new employees, as this will make cessation unavoidable over the long term.

If you would like to understand more about the implications of ceasing participation in the LPFA, then please get in touch using the details on our Contact Us page.



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