Local Authority and Independent Schools which are granted Academy status are required to offer their non-teaching staff membership of the LGPS (Local Government Pension Scheme), under the terms of their Funding Agreement with the Secretary of State for Education. The new Academy will become a separate Scheme Employer under the LGPS Regulations, which are laws approved by Parliament.

The Department for Education issued a briefing note for schools in August 2010 which lays out the pensions implications of becoming an Academy. This emphasises that the school should contact the pensions Administering Authority at the earliest possible stage. Avon Pension Fund administers the LGPS in the Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire areas.

Avon Pension Fund will need to instruct the Fund Actuary to calculate an Employer Contribution Rate for the new Academy. The cost of the actuarial calculation must be met by the school which is seeking Academy status and approximate costs can be supplied on request. Local Authority schools should note that the actuarial calculation will take into account any past service deficit in respect of the pensionable service of the staff transferring to the new Academy.

How to proceed – the ‘LGPS40 - New Academy Details Form’ and ‘LGPS41 - Academy Status Member Data Form’ must be completed and returned to Avon Pension Fund at the earliest possible stage, so that the Fund Actuary can calculate an Employer Contribution Rate. It will take the Fund Actuary approximately 6 to 8 weeks to complete the calculations.

Training of Academy officers - Avon Pension Fund will provide the Human Resources, Finance and Payroll staff of the new Academy with an overview of the role of a Scheme Employer as a pensions administrator; and also training on the completion of statutory returns to the Fund. Background information can be found in the short guide for front-line HR & Payroll staff