Membership

Your benefits are worked out when you leave the Scheme, based on how long you have been a member and your pay when you leave.

They are then held in the Scheme where they increase in value every year in line with the cost of living, until they start to be paid. These benefits are often known as deferred benefits. Find out more about how your deferred benefits are worked out each year as at 31 March.

Each year we will provide you with a statement showing the up to date value of your deferred benefits.

What happens if I re-join the Scheme or another public service pension scheme (e.g. NHS, Teachers, Civil Service) elsewhere, at a later date?

If you re-join the LGPS you will begin to build up membership towards a new set of benefits, in addition to your existing deferred benefits.

If you are re-joining another public sector pension scheme within 5 years your deferred membership will be linked to your new membership. You will usually have the option of keeping these two sets of benefits separate and have 12 months from the date you re-join to choose to keep them separate.

What happens if I join another occupational pension scheme?

It is possible to transfer your LGPS pension to another pension arrangement. Your new scheme will 'convert' the value of your deferred benefit to purchase an additional value in the new scheme


How are my deferred benefits worked out?

Any pension built up in the scheme from 1st April 2014 will be on a Career Average Revalued Earnings (or CARE) basis. Visit 'How a CARE scheme works' to find out more.

If you have membership before 1 April 2014 your pension is worked out using your final pay and your membership.

For each employment you will have a Pension Account. This will hold the pension you are building up in the Scheme.

Your pension each year that will be added to your Pension Account will be worked out using your pensionable pay each year as at 31 March.

Each year you will build up a pension of 1/49 of your pensionable pay for that year. Each following year the pension in your Pension Account will be adjusted by the Consumer Price Index.

If you joined the Scheme for the first time on or after 1 April 2008 (but before 1 April 2014), your benefits are worked out as:

Pension = final pay x membership ÷ 60

You can take part of your pension as a tax free lump sum but you will have to give up some of your pension for this.

If you have membership before 1 April 2008, the benefits you earned before 1 April 2008 are worked out as:

Pension = final pay x membership ÷ 80
Lump sum = pension x 3

You can choose to give up some of your pension for a bigger lump sum.
If you have membership both before and after 1 April 2008 the two amounts of pension and tax free lump sum will then be added together to give you your total benefits.

What if I work part time or term time?

If you work part time or term time your pay used to work out your benefits for membership before 1 April 2014 will be your full time equivalent rate. Your membership will be proportionate based on the actual hours you worked. For membership after 1 April 2014 your pension account will be based on the actual pay from which your pension contributions were deducted.

Example of how my deferred benefits are worked out

Bob earns £20,000 a year as at April 2014.

Bob has built up 20 years membership before 1 April 2014 and will build up another 5 years membership in the Scheme before he retires.

Year Pensionable pay Pension earned Brought forward Revalued value
2014/15 £20,000 £408.16 £0 £413.06
2015/16 £20,400 £416.32 £413.06 £828.56
2016/17 £20,808 £424.65 £828.56 £1,265.75
2017/18 £21,224 £433.14 £1,265.75 £1,749.85
2018/19 £21,648 £441.80 £1,749.85 £2,246.44

The above is based on actual revaluation for 2014/15, 2015/16, 2016/17 and 2017/18 financial years.  It is assumed that his pay will increase each year by 2% throughout and cost of living will rise from 2018/19 by 2.5% each year. So the pension for the period from 1 April 2014 to 1 April 2019 is £2,246.44 a year.

Pension = final pay x membership x 1/60

Pension = £21,648 x 6 ÷ 60 = £2,164.80 a year

Pension = final pay x membership x 1/80

Pension = £21,648 x 14 ÷ 80 = £3,788.40 a year

Lump sum = £3,788.40 x 3 = £11,365.20

Pension = £8,199.64 a year (£2,246.44 + £3,788.40 + £2,164.80)

Lump sum = £11,365.20

Bob can also choose to give up some of his pension for an even bigger lump sum.

Example of how my benefits are worked out if I work part time

Sue works part time and earns £10,000 a year, as at April 2014, her full time equivalent pay is £20,000.

She has worked for 20 years before 1 April 2014 and will work for another 5 years before she retires.

Sue has always worked half the hours of a full time colleague and so her membership used to work out her retirement benefits will be 7 years before 1 April 2008 and 3 years after 1 April 2008.

Year Pensionable pay Pension earned Brought forward Revalued value
2014/15 £10,000 £204.08 £0 £206.53
2015/16 £10,200 £208.16 £206.53 £414.28
2016/17 £10,404 £212.33 £414.28 £632.88
2017/18 £10,612 £216.57 £632.88 £874.93
2018/19 £10,824 £220.90 £874.93 £1,123.22

The above is based on actual revaluation for 2014/15, 2015/16, 2016/17 and 2017/18 financial years. It is assumed that her pay will increase each year by 2% throughout and cost of living will rise from 2018/19 by 2.5% each year

So the pension for the period from 1 April 2014 to 1 April 2019 is £1,123.22 a year.

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/60

Pension = £21,648 x 3 ÷ 60 = £1,082.40 a year

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/80

Pension = £21,648 (full time equivalent) x 7 ÷ 80 = £1,894.20 a year

Lump sum = yearly pension x 3

Lump sum = £1,894.20 x 3 = £5,682.60

Pension = £4,099.82 a year (£1,123.22 + £1,894.20 + £1,082.40)

Lump sum = £5,682.60

Sue can also choose to give up some of her pension for an even bigger lump sum.

Helpful information