Lgps pension and salary sacrifice

kevwallis

Hi guys first time post ….. I’m 35 years in the lgps main scheme, I,ve been reading up on salary sacrifices avc, I’ve been in touch with my HR and requested a meeting to discuss why the organisation doesn’t do salary sacrifices avc and can they start it …. I’m curious can the lgps main scheme be put on salary sacrifices and if not why ? 

jimi_man

Not just the LGPS but all public sector schemes. The LGPS Pension regs expressly forbid it. 

I would imagine that because it’s a public sector scheme and taxpayer funded (I know the LGPS is funded but it’s still backed by the taxpayer) it would seem to the outside world to be wrong if it implemented a method to reduce taxation when it’s those taxes that support the scheme. Just a guess. 

The_Unready

I'm in the LGPS and my council runs a pseudo salary sacrifice scheme in conjunction with AVC Wise. Does your council do something similar?

kevwallis

I work for a university, and they do neither…. I asked the question at a meeting regarding salary sacrifice on the lgps main scheme and the pru avc, there answer was …..they were unable to do the salary sacrifice on the lgps main scheme because they can not deduct regular lgps contributions via salary sacrifice as there’s no arrangement with HMRC which legally allows them to do this ….. they are currently looking into salary sacrifice pru avc, I,ve never been overly impressed with our HR. 

I love a run down on how a pseudo salary sacrifice scheme works. 

The_Unready

This is the AVC Wise website. Hopefully it'll provide the information you need:

https://www.home.avcwise.co.uk/

Actually, it may be a bone fide salary sacrifice scheme rather than a pseudo scheme.

kevwallis

Thanks The-Unready HR are currently looking into salary sacrifice pru avc with Avc wise …..it’s the main lgps scheme that I was curious about 👍

kevwallis

Jimi_man 

Not just the LGPS but all public sector schemes. The LGPS Pension regs expressly forbid it. 

thanks Jimi_man… any ideas were I would find the regs regarding this