On other websites…

• The Pension Service
• Independent Financial Advisers

Information for new members

Why should I join the pension scheme?

The scheme is an important and valuable benefit for staff. It is very secure because its benefits are defined in law and are fully protected against inflation. It also has the full support of local government trade unions and professional bodies.

Experts say that most people will be better off if they belong to their employer’s occupational pension scheme rather than making other arrangements such as personal pensions or stakeholder pensions.

If you want more information about pensions and planning for retirement see the Government’s Pension Service website.

What benefits do I get?

The scheme provides an excellent package of benefits. These include:

• a guaranteed pension based on one-sixtieth (1/60th) of your final pay for each year you have been a member
• the opportunity to exchange some of your pension for a one-off, tax free cash payment
• redundancy cover from age 55
• a pension if you have to retire early because of ill health
• a death-in-service lump sum of three times your final salary
• widow’s or widower’s pensions
• children’s pensions
• the opportunity to increase your pension by making extra payments
• the opportunity to transfer pension benefits into and out of the scheme.

These are just a few of the benefits available. Full details of all benefits can be found in the Employee guide.

How much will it cost me?

Your contribution rate depends on how much you're paid but it will be between 5.5 and 7.5% of your pensionable pay. The rate you pay depends on which pay band you fall into.

If you work part-time, your rate will be based on the whole time pay rate for your job, although you will only pay contributions on the pay you actually earn.

Contribution rates for 2008/2009

Band	Whole-time equivalent pay (annual pensionable pay)	Contribution rate
1	Up to £12,000	5.5%
2	More than £12,000 and up to £14,000	5.8%
3	More than £14,000 and up to £18,000	5.9%
4	More than £18,000 and up to £30,000	6.5%
5	More than £30,000 and up to £40,000	6.8%
6	More than £40,000 and up to £75,000	7.2%
7	More than £75,000	7.5%

The pay band ranges will be increased each April in line with the cost of living.

As a member of the LGPS, your contributions will attract tax relief at the time they are deducted from your pay and you will be contracted out of the State Second Pension scheme (S2P). Whilst you are a member of the LGPS you will, prior to State Pension Age, pay reduced National Insurance contributions.

Your employer also pays into the scheme on your behalf. They pay the balance of the cost of providing your benefits in the LGPS.

How do I join the scheme?

The scheme is open to staff who work for East Sussex County Council and other participating employers. You will automatically become a member from the date you start work if:

• you are aged under 75, and
• you hold a contract of employment that's for at least three months.

If you do not want to join the scheme you can opt out.

Some people may not get automatic membership, for example if they have previously opted out of the scheme. Please check the Employee guide for further details.

If you do not automatically become a member, you can join by completing the membership questionnaire:

• Form − membership questionnaire (LGPS-1)

Members of the scheme should indicate who they would like benefits paid to in the event of their death:

• Form − expression of wish (DG-1)

How do I opt out of joining?

You should think carefully before opting out of the pension scheme and take advice on alternative arrangements. To find a financial adviser regulated by the Financial Services Authority you can search the directory of independent financial advisers.

If you decide not to join the scheme you must complete the membership questionnaire, indicating your choice in Part B:

• Form − membership questionnaire (LGPS-1)