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Support Staff Pay Award from 01/04/2023 - LGPS Implications - 28/12/2023

IMPORTANT UPDATE ON BACKDATED NJC (SUPPORT STAFF) PAY AND POTENTIAL IMPACT ON PENSION CONTRIBUTIONS (LGPS) – backdated to 1 April 2023

We have previously issued LGA guidance on how the backdated support staff pay award will affect those employees on universal credit and the actions those employees should take, if they are affected.

In addition to this guidance, it is crucial to be aware of another significant, but often overlooked, change specifically concerning their pension contributions to the Local Government Pension Scheme (LGPS).

As staff members experience an increase in their salary, which may result in a shift from one pension band to another, there is a potential for an adjustment in their pension contributions. This means that some members of the support staff could find themselves contributing more to the LGPS.

It is important to note that any change in pension contributions, triggered by a shift in pension bands, will be applied retrospectively from 1st April 2023. Therefore, a portion of the backdated pay increase may be offset by an increase in pension contributions.

We understand that this additional consideration may raise questions, and we encourage affected employees to review their pay slips and to contact the LGPS if they have any queries.

For your convenience, the table below provides a breakdown of pension contributions to the LGPS: