New Clerk's pension

Question

We have recently employed a new Clerk following the retirement of the previous one. No one on the current Council has much understanding of pension schemes. So I would like some advice:

1. Does the Council decide the pension provider or can the Clerk decide?

2. I'm sure I read somewhere that the Council decides how much they as employer contributes but worried there might be some rules somewhere.

3. The previous Clerk was in Nest, the new one, was previously in LGPS. I've heard this is very expensive.
Any advice would be gratefully received.

Answer 1

Tough Call.  The LGPS is very expensive but then an extremely strong carrot to retain a Clerk (defined benefits) . As A Clerk you feel that the Council values you if your on the LGPS ( I have been here 8 years in a part time role) - Nest is a cheaper alternative . However you do not have to pay the minimum in to Nest but you could agree to pay in a higher amount.

Depending on your Council and your Spinal Point the cost may not be as high as you expect. I am in the Essex LGPS and the Council puts in 23% to my 5% - I then do an additional top up to buy extra years.

Obviously that's from a Clerks View.

Answer 2

As said, the LGPS is indeed an expensive option for a small council - but another positive is that it's transferable between other councils that take part in it.

In my case (part time Clerk) I didn't want to ask for LGPS as it was prohibitively expensive in my opinion especially for smaller councils, and my rate is above the hourly rate I might get elsewhere anyway. My council pays into an existing personal pension that I had and matches my contributions up to 5% (similar to conditions I had previously when otherwise employed). They did pay the bare minimum previously but I presented a comparison with LGPS and other councils and they happily upped it to that level.

Answer 3

As others have said - something like NEST is cheaper than the LGPS. I suggest you have a look at your local LGPS - each county does one. Read the rules carefully, and contribution rates quoted. One sting in the tail, is that if you only have one members of staff (the Clerk:-) then there can be ramifications if they leave the scheme early and draw the pension and the council may face a charge to cover the pension. (At least that was my understanding a few years ago when we went into it in great detail).

Answer 4

One thing to check is the resolution that was passed for the previous clerk.  In my case, my council resolved to allow the Clerk and all future employees to join the scheme (subject to them be eligible).  You might find similar...

Answer 5

Thank you everyone for your comments. They have been very helpful.