LGPS 2014

Overview Activating LGPS 2014 Main & 50/50 Sections Tiered Bands: Assessment and 50/50 Section EE’s & ER’s Cumulatives Assumed Pensionable Pay (APP) Pension Contributions New: Employer’s Contribution Rate

Activating LGPS 2014 A new field (LGSCH) has been added to LGPS Pension Scheme table (T5GPBSP_SCH) to identify the relevant Public Sector Scheme Type that is applicable to a Public Sector Scheme. This field defines the additional Public Sector functionality that is available for a Pension Scheme. – LGPS has been split up into three legislative regions as each of these have separate statutory instruments covering their rules. LG__ELocal Government Pension Scheme (EN/W) LG__NLocal Government Pension Scheme (NI) LG__SLocal Government Pension Scheme (Scotland) N.B. Currently the SAP system treats the first two the same way. If you have LGPS requirements that are specific to Northern Ireland then please contact SAP as soon as possible (via a customer message). N.B. LGPS Scotland does not come into effect until April 2015

Activating LGPS 2014 T5GPBSP_SCH N.B. As soon as a scheme is defined as LG__E (or LG__N) “LGPS 2014” will be active for any pay date on or after

Main Section and 50/50 Section A new field (PSSCH) has been added to the Pensions Details infotype (0071). – This field is only available if the scheme is defined as an “LGPS” scheme in table T5GPBSP_SCH. For LGPS schemes, this field defines whether the Pension record is for the Main Section or the 50/50 Section. “ “ Main Section “L2”50/50 Section N.B. The “look and feel” of this field may be re-designed to a simple checkbox, if there is enough time. The current design is intended to allow flexibility, so that the field can be re-used for other Public Sector schemes – should the need arise in April 2015.

Main Section and 50/50 Section IT0071

Main Section and 50/50 Section An employee can only change from the Main Section to the 50/50 Section (and vice-versa) at the start of a pay period. – A new check has been implemented if the HR User tries to change, an employee’s section. The check enforces that a change must occur on the first day of the pay period. An employee cannot remain in the 50/50 Section if they are continuously on Nil Pay due to Sickness or Injury into the next pay period. – A new check has been implemented in the payroll to reject the employee if they have been continuously sick (or injured) on Nil Pay in the previous pay period and are still are on Nil Pay AND are still in the 50/50 scheme. N.B. We have allowed this check to be de-activated via a switch on T5GPBS_ALL (LGPS 5050), but this should only be used as a last resort – when payroll rejections cannot be resolved by any other means. A customer incident should be raised in this instance.

Tiered Bands No changes to GBLGP except – Assessment is based on “Actual Pay” not “FTE”. Example: EE is paid £1000 per month, but only works 50% of the time. In both and the employee is paid £12,000 in the year. For assigning a Tiered Band… In they will be banded using an Annual Salary of £24,000 In they will be banded using an Annual Salary of £12,000 N.B. For your LGPS schemes, the Wage Type Groups that identify payments made to Part Timers which will be pro- rated back up again to an ‘FTE’ amount must not contain any wage types in (i.e. T5GPBSP_PSCH-LGPW2 and T5GPBSP_PSCH-LGPW4). – Non-contractual Overtime If/how you choose to include Non-Contractual Overtime in “Actual Pay” is left up to you. But if you can include it, then you should include it! – 50/50 Section: EE’s Contribution Percentage halved PENS-PCTEE will be half the value that it would have been had the employee remained in the Main Section

EE’s and ER’s Cumulatives Employee’s Pensionable Pay (/160) – Identical to /111 except Includes Non-Contractual Overtime Dated to only start from Employer’s Pensionable Pay (/161) – Identical to /160 except Includes APP relevant wage types – APP1APP pensionable pay – APP2PP pensionable pay (i.e. a negative amount that has been replaced by APP) N.B. These wage type are generated by the new payroll function GBAPP When Paid Processing – /160: /A60 and /Z60 – /161: /A61 and /Z61 N.B. The In-flow and Out-flow is handled automatically as the last part of the new payroll function GBAPP

Assumed Pensionable Pay Assumed Pensionable Pay only becomes applicable in one of the following cases; – Sickness or Injury: Reduced or Nil Pay – Adoption, Maternity and Paternity during the APP/MPP/PPP – Reserve Forces Service Leave The Regulations state: “The relevant event [that causes APP to be applicable] is the date on which the employee drops to reduced contractual pay or nil pay due to sickness or injury, or during relevant child related leave* (i.e. ordinary maternity, paternity or adoption leave and any paid additional maternity, paternity or adoption leave), or the date the member commenced reserve forces service leave.”

APP: All applicable absence Assumed Pensionable Pay (APP) is a 3 month average of Pensionable Pay and is only ‘generated’ (i.e. it is frozen from the first day of the APP) in the pay period where the ‘relevant event’ occurred. – APP0 holds the annual rate of the APP – APP0 is only created from whole periods with pay dates in the averaging period – Non-monthlies (i.e. weekly, fortnightly, lunar, quarterly, half-yearly, annual) will use a 12 week average The annual rate of APP can be overridden in any pay period; APX0. The calculation of APP is triggered by a ‘relevant event’, but it is for information purposes only if the APP is triggered by Reserve Forces Service Leave. – Reserve Forces Service Leave absence subtype (AWART) defined in T5GPBS_ALL

APP: Sickness APP only replaces Pensionable Pay (PP) if APP is greater than PP – APP1 is the value of APP that replaces PP – APP2 is the value of PP that has been replaced by APP APP1 is pro-rated using the method defined in feature GBPPF for each AB split – APP1 = APP0 / Periods per Year (AB Split PSP) / (Whole Period PSP) APP2 is the actual values based on SxP and OxP configuration* for each AB split – APP2 = SxP + (OxP – OxP offset) * If you do not use SAP Standard SxP and OxP configuration, then you will need to use the manual override; APX2 APP1 and APP2 can be overridden in any pay period. – APX1 is used to override the total value of APP – APX2 is used to override the total value of PP replaced by APP N.B. Customers with manual solutions for Sickness can make GBAPP ignore these absences by putting and “S” in the constant LGPS EXCL defined in T5GPBS_ALL.

APP: Parental Leave APP replaces Pensionable Pay (PP) even if PP is greater than APP – APP1 is the value of APP that replaces PP – APP2 is the value of PP that has been replaced by APP APP1 is pro-rated using the method defined in feature GBPPF for each AB split – APP1 = APP0 / Periods per Year (AB Split PSP) / (Whole Period PSP) APP2 is the actual values based on SxP and OxP configuration* for each AB split – APP2 = SxP + (OxP – OxP offset) * If you do not use SAP Standard SxP and OxP configuration, then you will need to use the manual override; APX2 APP1 and APP2 can be overridden in any pay period. – APX1 is used to override the total value of APP – APX2 is used to override the total value of PP replaced by APP N.B. Customers with manual solutions for Adoption, Maternity, Paternity can make GBAPP ignore these by absences by putting and “G” “M” “P” or “T” in the constant LGPS EXCL defined in T5GPBS_ALL. (i.e. “GMPT” will stop all parental leave from being processed by GBAPP.

Pension Contributions No changes to GPENS except – EE’s and ER’s Pensionable Pay can have different values (i.e. /160 and /161) but not activate the SAP standard ER’s Pensionable Pay solution. – A new field (NOPEN_ER) has been added to T5G31 to signify that, even though the EE’s and ER’s Pensionable Pay wage types are not the same, that there is no need to do any ER’s Pensionable Pay processing.

Pension Contributions T5G31

New: Er’s Contribution Rate Go Live Date The new ER’s contribution rate solution only becomes active for pay dates on or after the go live date defined in T5GPBS_ALL. N.B. The solution is activated from April 1 st 2014 in the example given above. But this could be earlier or later depending on your own requirement.

New: Er’s Contribution Rate Feature GBLG1 This feature defines whether the new ER’s contribution rate solution is applicable to a specific pension scheme and a specific group of employees. This ER’s contribution rate solution is only active for scheme X01. The rules for scheme X01 are defined using return value “X01_”. N.B. A return value of space (i.e. “ “) can be defined by switching from the “Tree view” to the “Table view”.

New: Er’s Contribution Rate Table T5GPBSP_ER_RATE (View V_ T5GPBSP_ERRATE) N.B. The table is date-dependent. The key field “X01_” is used in the feature GBLG1 as the return value. So this table should be customised before customising feature GBLG1.