In this section
Town and Parish councils
Town and parish councils can decide which individuals or positions are eligible for the Local Government Pension Scheme (LGPS). These are called designating bodies. They are able to use the LGPS as a pension scheme for their employees, but they don’t have to do so.
Employees of a designating body can only join the LGPS if their employer nominates that member of staff or their role as eligible for membership of the scheme.
There must be a majority agreement at a meeting of the council to elect to become an employer in Cheshire Pension Fund. Following this we will require a copy of the minutes of the meeting including the name, class of employees or roles of employees designated to join.
Cheshire Pension Fund operates a pooling of town and parish councils for contribution rates. Should a resolution be passed to join, we’ll provide you with details of the rate payable as a new LGPS employer. This pooled contribution rate is subject to a triennial valuation when the rate is reviewed and set for the following 3 years.
What do I need to know?
Important information from LGPS
Under the LGPS Regulations employees of a “Designating Body” such as a Parish or Town Council can only join the LGPS if their employer nominates that member of staff as eligible for membership of the Scheme.
Participating in the LGPS as an Employer requires a Parish or Town Council committing itself to future expenditure and because of that, the matter of joining must be considered at a meeting of the Council in accordance with Para 39 (1) Sch. 12 of the Local Government Act 1972 which states:
“Subject to the provisions of any enactment (including any enactment in this Act) all questions coming or arising before a local authority shall be decided by a majority of the members of the authority present and voting thereon at a meeting of the authority.”
Parish and Town Councils must therefore reach a majority agreement at a meeting of the Council and elect to become an Employer in the Cheshire Pension Fund. Also, the Council must indicate the name, class of employees or roles of employees who they nominate as permitted to join.
The Cheshire Pension Fund will require a copy of the minute of the meeting confirming the decision to permit nominated eligible employees to join the Scheme together with individual “Notification of Appointment Forms” for each new joining employee.
Please contact the Pension Fund to obtain copies of this form.
How much does it cost?
Employers’ Contributions
A Parish or Town Council in the LGPS is required to pay pension contributions to the Pension Fund. The contribution will be a percentage of pensionable pay. The Cheshire Pension Fund operates a grouping of employers for contribution rates and should a Parish or Town Council decide to pass a resolution to join, the rate payable to Cheshire Pension Fund is currently 22.1% for 2023/24 reducing to 21.5% for 2024/25 and 2025/26.
Please note that this “group” contribution is subject to a triennial valuation when the rate is reviewed and set for the following three years with the next valuation due in 2025 with the contribution rate reset from April 2026.
The Parish or Town Council must pay over both the employers and employees contributions to the Pension Fund each month and Cheshire Pension Fund will provide full details of how to do this once employers are admitted to the Fund.
Employee’s Contributions
Employees in the LGPS (known as active members) pay a rate of contribution based on their salary. Contributions are also paid on non contractual overtime and additional hours. The banding rates will increase in line with the prices index each April. The latest member contribution rates can be found here.
