Information for existing members
Frequently asked questions
On this page, below:
How much pension will I get?
For each year you have built up in the scheme to 31 March 2008, you will receive a pension of one-eightieth (1/80) of your final year’s pay, plus, an automatic tax-free lump sum of three times your pension.
For each year you build up from April 2008, your pension will be at the increased rate of one-sixtieth (1/60) of your final year’s pay. There will be no automatic lump sum, but you do have the option to get a tax-free lump sum in exchange for some of your pension.
For example…
If your salary at the time you retire is £20,000 and you have eight years membership to 31 March 2008, and 24 years membership after then your benefits would be calculated as below:
First we calculate your benefits on your eight years service up to 31 March 2008:
Eight-eightieths (8/80) of your final year’s pay of £20,000 gives you an annual pension of £2,000.
You would also receive an automatic tax-free lump sum of three times your pension for your membership prior to 1 April 2008, so £2,000 x 3 = £6,000 lump sum.
Now we calculate your benefits for your 24 years service from 1 April 2008:
Twenty-four-sixieths (24/60) of your final year’s pay of £20,000 gives you an annual pension of £8,000.
There is no automatic lump sum for your membership from 1 April 2008.
This gives you a total annual pension of £10,000. That is, £2,000 for the pre-April 2008 membership, plus £8,000 for the post-April 2008 membership. And you would receive the lump sum of £6,000.
You also have the option to take up to 25% of your total pension benefit as a tax free lump sum, with £12 lump sum for each £1 of annual pension given up.
Can I transfer other pension benefits into the scheme?
Yes. If you have already been paying into the Local Government Pension Scheme or another pension scheme, you can transfer the benefits you have built up. Normally you must do this within 12 months of joining the scheme.
Let us know of previous pensions you would like to transfer into the Local Government Pension Scheme by completing Parts C or D the membership questionnaire:
Further information about transferring benefits is included in the Employee guide. You may also want to read the Combining periods of membership document for further advice.
How do I increase my contributions?
You can pay extra to increase your retirement benefits. You can do this either by paying additional contributions to buy extra LGPS pension, by making payments to the scheme’s Additional Voluntary Contributions (AVC) arrangement, or by making payments to a personal pension, stakeholder pension or Free-standing AVC scheme of your own choice.
Can I retire early?
For most people the retirement age is 65 and this is when you would normally expect to receive your pension. However, you could retire early and get your pension in the following situations:
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you are aged 60 or over and take early retirement
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you are suffering from permanent ill health and are unable to continue working
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you are aged 55 or over and are made redundant
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you are aged 55 or over and take voluntary early retirement with your employer’s consent.
If you are an active member of the scheme immediately prior to 1 April 2008 and you retire before 31 March 2010, you have a protected earliest retirement age of 50.
More information is available in the ‘Early Retirement’ section of the Employee guide.
Can I leave the scheme before I retire?
Yes. You can choose to leave the scheme at any time. To do so you must complete Part B of the membership questionnaire:
If you leave your job your membership of the scheme will end. At this point you can ask for a refund of contributions, transfer your pension to another scheme, or leave the benefits you have built up and take them when you retire as a deferred pension. Complete the following form to show us what you would like to do:
Full details of these options are available in the Employee guide.
What happens if I have to retire because of ill health?
If you have to retire early because of ill health you will get your pension and lump sum immediately. But you must have at least three months’ membership in the scheme and have evidence of your health condition from a doctor.
More details of how your pension will be calculated are available in the
Employee guide.
How are my family protected under the scheme?
If you die before you retire, the following benefits are available to your family:
- a lump sum death grant of three times your final pay
- a widow’s or widower’s pension
- children’s pensions.
If you die after you have retired, similar benefits are available to your family, although the lump sum death grant is calculated in a different way. Full details are in the Employee guide.
Members of the scheme should indicate who they would like benefits paid to in the event of their death:
To make a claim for a widow’s, widower’s or children’s pension you must complete the following form:
Can my partner benefit even though we're not married?
Provided you were a member of the Local Government Pension Scheme on or after 1 April 2008, you can nominate a cohabiting partner to benefit after your death.
What happens if I go on maternity, paternity or adoption leave?
You have to continue paying pension contributions on the actual pay you are receiving while on leave. Benefits will continue to build up as if you were working normally on full pay. More details can be found in the guide to Maternity, paternity and adoption leave.
If you are on unpaid leave, you must tell us if you want to continue paying contributions:
Do I still contribute if I am on unpaid leave of absence?
You have to pay contributions for the first 30 days you are on unpaid leave of absence. After that you must tell us whether you want to continue paying contributions to maintain your full pension benefits, or not to pay any more until you return to work:
What happens if I go on strike?
If you are involved in a trade dispute and go on strike, the time you are absent from work may not count as a period of membership of the pension scheme. However, you may be able to reinstate a lost period of membership. More details can be found in our guide Absence due to a trade dispute.
You can also use a form to let us know if you wish to pay pension contributions to cover a period of strike absence.
Can I get help understanding my annual benefit statement?
Members of the pension scheme receive an annual benefit statement. For an explanation of what the sections on the statement refer to and how the illustrations are calculated, read our document Information about your Annual Benefit Statement.
