Upcoming telephone line downtime – 24 September
Please be advised that our telephone lines will be unavailable from 12:30pm on the afternoon of 24 September due to a scheduled staff training event. We appreciate your understanding.
Guidance about Academy status and how to become a scheme employer.
An Academy may be required to include details of its pension liabilities as part of their annual accounts. This may be in the format of an IAS19 or FRS102 report but the Academy would need to contact their auditors for further clarification.
In accordance with Local Government Pension Scheme (LGPS) regulations, if a scheme member aged 55 or over is retired early by their employer or is made redundant by their employer, the scheme member becomes entitled to the immediate release of their accrued pension benefits.
In many cases this means that benefits are paid out of the Pension Fund in advance of the member's normal retirement date and therefore for a longer period than anticipated. The employer is required to make a payment to the Pension Fund (known as a capital cost or strain cost) in order to compensate the Pension Fund for having to pay benefits for longer than expected. It is worth noting that an employer should always request estimates for employees being retired early.
We have produced a briefing note containing further information about employer costs.
As a academy you may consider ways in which you might deliver certain services differently e.g. cleaning, catering etc. This may involve transferring some of your employees to an independent service provider who operates in the private sector.
It is highly likely that your non-teaching staff will be members of the Local Government Pension Scheme (LGPS) and so you will need to consider the pension implications of transferring LGPS members to a ‘private company’.
We have produced a briefing note containing further information about the actions you will need to take with regard to your employees’ pension rights prior to any transfer of their employment.