Local Government Pension Scheme

Find out about Public Sector Pensions Review.

The LGPS is a final salary, defined benefits pension scheme. Highlighted below are the main benefits of the scheme, and why it’s in your interests to be a member of the pension scheme.

It’s never too early, or too late, to start planning for your future. Thinking about your income in retirement is one of the most important decisions you’ll make so it’s imperative that you make the right choices as early as possible.

Taking out a pension is a big decision. It is vital that your pension works for you, adapting and growing for your own situation. It must be flexible enough to meet your future needs while being secure. It is never too early to plan for your retirement, and if you put off making a decision, it may be difficult to catch up later.

The LGPS - Scheme Highlights

With membership of the LGPS, you can look forward to your retirement with confidence. Why? Well see some of the benefits highlighted below…

• It’s secure – and it’s a defined benefit scheme. This means that the benefits you get when you retire are based on your membership in the scheme and your final year’s pay on leaving. If you are part time it will be your full time equivalent pay that is used.
• It also keeps pace with your pay. Contributions you pay during your career provide you with retirement benefits based on your pay in the year you leave. This means the pension you build up during your employment keeps pace with your pay rises.
• And after retirement, your pension is guaranteed to increase with inflation, keeping pace with the cost of living.
• And finally, the scheme is provided by your employer who pays a large part of the cost. This makes it an extremely valuable part of your employment package.

The LGPS is one of the best ways you can plan for your retirement, with an excellent range of benefits. And it’s a modern scheme that reflects the needs of a modern workforce, whether you work full or part time.

Key benefits

• Although the scheme’s normal pension age is 65, you can choose to retire and draw your benefits from age 60.  If you are over age 55 years, and elect to reduce your hours or move to a less senior position you can, if your employer consents, flexibly retire. This means that you can access your pension benefits whilst remaining in employment, helping you to ease in to retirement. However, if you choose to retire before 65, or take flexible retirement before then, your benefits would normally be reduced to account for them being paid for longer.
• If you become unable to work because of serious illness, you could receive immediate ill health benefits…
• And, if you are over age 55 years (age 50 years if you were a contributing member of the pension scheme before 6 April 2006) and you are made redundant, or your employer retires you for business efficiency reasons, your benefits are paid straight away.    
• Life cover starts from the moment you join. A lump sum, equivalent to 3 years’ pay if you die in service, is payable to your nominated beneficiaries. And there’s cover for your family too, with a pension for your husband, wife, civil partner or nominated co-habiting partner, and for eligible children should you die.