Working out your benefits in the LGPS
Working out your LGPS benefits depends on when you built up your service in the scheme.
|From 1 April 2014 onwards
||Every year you will build up a pension at a rate of 1/49th of the amount of
pensionable pay you received in that scheme year if you are in the main section of
the scheme (or half this rate of build up for any period you have elected to be in the 50/50 section of the scheme).
This pension is then added to your pension account and revalued at the end of each scheme year so your pension keeps
up with the cost of living.
Up to 31 March 2014
Final Salary Scheme (two different calculations)
• From 1 April 2008 to 31 March 2014
You receive a pension of 1/60th of your final pay. There is no automatic lump sum for membership built up after March 2008, but you
do have the option to exchange some of your pension for a tax-free lump sum.
• Up to 31 March 2008
You receive a pension of 1/80th of your final pay plus an automatic tax-free lump sum of 3 times your pension.
For benefits built up from 1 April 2014 your pensionable pay is the amount of pay on which you pay your normal pension contributions.
However if during the scheme year you had been on leave on reduced contractual pay or no pay due to sickness or injury, or had been on
relevant child related leave or reserve forces service leave then, for the period of that leave, your pension is worked out based on your assumed pensionable pay.
Final Pensionable Pay
The definition of final salary pay for benefits built up before 1 April 2014 remains the same as before the
scheme changed from a final salary to a career average scheme on 1 April 2014.
Final salary pay is usually the pay in respect of (i.e. due for) the final year of scheme membership on
which you paid contributions, or one of the previous 2 years if this is higher. The main differences to
the pay used for career average benefits include:
• If you are working part-time when you leave the LGPS, or
worked part-time at some point during your last year of membership, your final salary pay is the whole-time pay that
you would have received if you had worked whole-time.
• It does not include non-contractual overtime.
There are further protections for final salary pay if your pay is reduced due to a period of sickness, if you are on maternity, paternity or adoption leave or if you pay is reduced or increases to your pay are restricted.
Remember, if your benefits are combined with your new active pension account and they buy an amount of earned pension in the career average scheme, any final salary benefits you had built up will no longer be worked out using the final salary calculations. Instead they will be treated as career average benefits.