Contractual and automatic enrolment

Contractual enrolment

Most new employees are contractually enrolled into the LGPS on their first day if:

• they’re under 75 and
• have a contract for at least 3 months.

Employees must agree to join the scheme and have contributions taken from their salary. This is usually done when they accept their employment contract. So that’s why it’s known as contractual enrolment.

Employees that are contractually enrolled aren’t affected by automatic enrolment unless they choose to:

• opt out of the LGPS or
• move to the 50/50 section of the LGPS.

Employers must let employees in LGPS-eligible positions with contracts under 3 months join the scheme.

Automatic enrolment

Staff should be contractually enrolled in the LGPS based on eligibility rules, with automatic enrolment requirements applied afterwards. Employers must monitor their workforce and take action for employees not contributing to the LGPS at specified times. For example, if a member opts out, the employer must re-enrol them in the LGPS every three years if they’re eligible.

50/50 section of the LGPS

The 50/50 section of the LGPS allows members to pay lower contributions for a lower pension build-up. Members in this section will be automatically re-enrolled into the main scheme after the employer’s re-enrolment date, regardless of their job status.

Pension scheme information

Employers must register with The Pensions Regulator to confirm compliance with automatic enrolment legislation and keep records of the pension scheme used.

More details

• Pension regulator website
• LGPS regulations and guidance website
  • Automatic enrolment guide
  • Sample letters
  • Qualifying scheme certificates.