Thinking of joining
The scheme is an important and valuable benefit for the staff working in local government (or an associated employer).
As a member, you get an excellent package of pension benefits, fully protected against inflation and guaranteed by the government.
Most informed opinion recognises that people will nearly always be better off if they belong to their employer's occupational pension scheme. The scheme has the full support of local government trades unions and professional bodies.
What the scheme provides
- a retirement pension based on your service and pay at retirement for
- a tax free lump sum (at a level you can determine)
- "Life Assurance" of three years' pay while you are a contributing member of the scheme
- pensions for your spouse/civil partner/a nominated dependent and children if you die
- benefits if you have to retire because of ill-health after three months membership
- improved benefits if you are made redundant at or after age 55
- a ten year guarantee of your pension at the point you retire
Benefits are guaranteed and are based on your pay and membership of the scheme. You do not pay administration costs - the cost of administration is met by your employer.
Pension benefits can be transferred into and out of the scheme, but if you change jobs within local government (or an associated employer) your membership will continue.
You can increase your contributions to get increased benefits, if you are not potentially going to achieve the maximum allowed under Inland Revenue Rules.
The amount you pay
The scheme contribution rate is variable depending on the amount that you are paid.
The current bands (based on your full time equivalent pay) can be found at LGPS member website.
The benefits of the local government pension scheme are valuable. Independent actuaries have assessed them as being worth around 23% of your overall pay. Your employer and the government pay the extra, if required, to meet the total cost of the benefits you will receive.
You can compare the benefits and cost of scheme membership by looking at the following. This will give you some information about the alternatives.
You should think very carefully before giving up scheme membership. If you decide other pension arrangements offer better value for money or for some other reason are more suitable, you should tell your employer. If you are "told" that the alternatives are better, you should ask for confirmation in writing.
Page last updated: 22 September 2017