We are currently in the full thrust of schools converting to Academies. The process is becoming more streamlind as time passes but there is still one trap out there for any unsuspecting converts.

And that is the LGPS. 

By converting the new Academy becomes a separate employer for LGPS purposes and is dealt with as a sepaate entity to the Local Education Authority.

We are currently in the full thrust of schools converting to Academies. The process is becoming more streamlind as time passes but there is still one trap out there for any unsuspecting converts.

And that is the LGPS. 

By converting the new Academy becomes a separate employer for LGPS purposes and is dealt with as a sepaate entity to the Local Education Authority.

In practice this means that on conversion an Academy is expected to stand on its own two feet for pension purposes. With that position comes the need to actuarially review each schools funding. Employer contribution rates, that were previously balanced across a whole authority, will now be focussed in a single Academy.

In practice we have seen increases in employers contribution as high as 3% but we have also seen them fall too. Increasing your staff costs overnight by 3% is a significant extra cost that you need to be aware of very quickly for budgeting purposes.

The key is to be aware of the need to actuarially review the pension at an early stage and to contact the Pension Authority as soon as possible to disucss the actuarial valuation.