Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Changes in employment

These pages are for employer use only. Member information can be found on the home page.

What constitutes a change in employment?

Since the Scheme rules changed in April 2014 there is an increased complexity in how a pension service transfers. It has become necessary to re-assess the way a transfer of post is treated by the Fund. These are instances when an employee leaves one role and starts another role the next day with the same Employer and has pre 1 April 2014 final salary service.

When a member leaves a post and starts another the next day the Fund is treating this as a post number change and keeping the pension service record continuous regardless of whether their pay has increased or decreased. Through iConnect, the post number change will be identified from the extract and the member’s record kept as continuous.

If you, the employer, decide that the change does constitute a ‘new employment’, then the member is treated as a new member, records are initially kept separate and the options regarding linking membership are provided to the member. If you decide the post change should be treated as a ‘new employment’ the normal pensions PEN007 leavers form should be completed for the post left.

Members with pre 2014 final salary service, who have a change of post only, not employment and their ongoing post is on a lower salary do have the option to use regulation 10 (under the 2008 regulations) if they meet the criteria. Regulation 10 does require thirteen years pensionable pays calculating if the employee leaves the pension scheme within ten years of the drop in salary.

More information