Why has the Payroll System changed?
Changing our payroll system has allowed us to create an integrated process for the administration and payment of pensions using the same software. This will make us more efficient and cost effective in processing your pension payments as well as save taxpayers money.
Why have I received two payslips with information on rather than all the information on one?
These payments should always have been treated separately as they are paid from different sources. Your LGPS pension is paid by the pension Fund whilst the other payments are paid by your employer and either relate to current active employment or benefits from the Teachers’ Pension Scheme. We have taken the opportunity to correct this position when we move to the new payroll system. This effects the following members:
Group 1: Members receiving Compensatory Added Years related to the Teachers’ Pension Scheme in addition to their LGPS benefits
Group 2: Members receiving LGPS benefits whilst also having active employment
This will affect how your tax code is applied to your earnings. Tax codes can only be applied to one set of earnings unless we receive specific instructions from the Tax Office to treat your tax code differently.
If you are in group 1, your tax code will be applied to your main LGPS benefits and your Compensatory Added Years payment will be taxed at the basic rate.
If you are in group 2, your tax code will be applied to your earnings from your active employment and your LGPS benefits will be taxed at the basic rate.
If you wish to change how your tax code is applied to your earnings, please contact your tax office on 0300 200 3300 or alternatively visit the HMRC website, quoting your new PAYE reference found on your latest payslip.
Why does my P60 have two sets of taxable pay and tax paid on it?
The change of payroll system in October resulted in a change to the PAYE tax reference, and so your P60 may show two sets of taxable pay and tax paid figures as well as a total figure. Any earnings between April and September 2016 will appear on your P60 as figures from a “previous employment” (centre of the page) whilst any earnings from October 2016 to March 2017 will appear on your P60 as figures from “this employment” (right of the page).
If you need to complete a tax return for the 2016/17 tax year, you will need to use both the figures from the previous employment (centre of the page) in addition to the figures from this employment (right of the page).
The P60 advises you not to do so as in most circumstances the previous employment figures would be on a P45 and you would include those figures instead. P45s were not issued when we changed the PAYE scheme as from our perspective and yours, your pension had not changed, so for this year you will need to use the full figures from your P60.
Why have I received a payslip in October and there has been no change in my money?
We have issued a payslip in October to show that there has been a change in the Payroll System we use to make these payments. Within the notes section of your payslip we have included details for the pension Fund website where you can find more information.
You will continue to receive Payslips, annually, in March, April and May, as well as any time there has been a variance in the money you receive of more than £5 or a change in your tax code.
According to my payslip I no longer receive GMP payments?
You still receive these payments as part of your pension; however, they are no longer illustrated separately but instead are included as part of either your Basic Pension as part of your Pension Increase payment (Basic Pension PI).
Will the new Payroll system affect the way in which I receive my Pension each month?
There should be no change to the date in which payments are made, these will still be paid:
Northamptonshire Pension Fund: 25th of each month
Cambridgeshire Pension Fund: Last working day of the month
Firefighters’ Pension Scheme (FO1 – advance): First working day of the month for Advance Payroll
Firefighters’ Pension Scheme (FO2 – arrears): Last working day of the month for Arrears Payroll
Teachers’ Compensation Scheme (Northamptonshire): 25th of each month
Teachers’ Compensation Scheme (Cambridgeshire): Last working day of the month
in line with the previous schedules. The payment schedules can be found on our website here.
The Tax code used is not correct, who do I need to speak to rectify this?
Tax Codes are dealt with by HMRC and therefore you would need to contact your tax office.
LGSS Pensions are advised of the Tax Code to be used and are unable to make any alterations unless we are informed to do so directly from HMRC Tax Office. Your relevant tax office can be contacted by calling 0300 200 3300 or alternatively visit the HMRC website, quoting your new PAYE reference found on your latest payslip.
Why has my child received a letter requesting a National Insurance number when they are under the age 16?
Due to the change in payroll system we have sent a bulk communication to all records without a National Insurance number attached. Unfortunately due to how the system works we are unable to separate dependent children receiving a child’s pension who are under 16, and would not have a national insurance number, and as a result these members will have received a letter. Please accept our apologies for any confusion this may have caused and discard the letter.
Why have I got a different/New Payroll reference?
You have received a new payroll reference as a result of the change in Payroll system. This will be the payroll reference that you will use going forward and quote in relation to any queries that you have regarding your pension payments.
I have elements which show the word UNFUNDED on my payslip, what does this mean?
This refers to an element which makes up your total pension payment. The Unfunded refers to a payment which is made by another authority outside of the Pension Fund, for example Teachers Pension compensatory added year payments etc.
Why have I been deducted 50p for “Pennies from Heaven”?
This is a voluntary deduction that you have previously signed up for. As part of the Pennies from Heaven scheme, your pay is rounded down to the nearest pound and the pennies are donated to charity on your behalf. This is usually a variable deduction depending on how many “pennies” you are paid in each month.
The new payroll system cannot administer variable deductions in the same way and therefore we had to set a fixed rate for this deduction. It was decided to set this at 50p which represents the median deduction that was being paid by members of the scheme.
If you are unhappy with this new arrangement, you can opt out of the Pennies from Heaven scheme by making a request in writing or by e-mailing to LGSS Pensions.