The Local Government Pension Scheme (LGPS) has changed from a final salary scheme to a Career Average Revalued Earnings (CARE) scheme. If you are paying into the LGPS you will automatically be brought into the new scheme. Listed below is a summary of the new scheme:
The LGPS 2014 is a Career Average Revalued Earnings Scheme (CARE) with guaranteed defined benefits.
You will get valuable life cover, with a lump sum of 3 years pay if you die in service as well as cover for your family with pensions for dependants if you die.
Ill-health cover for you, should you be unable to work due to ill-health
You continue to receive tax relief on contributions to the LGPS as well as paying reduced National Insurance contributions.
You can give up some of your pension to get a tax free cash lump sum when you draw your benefits.
Your employer will continue to contribute to the scheme. On average they contribute twice as much as you do to ensure you get an excellent pension when you retire.
There are 9 rates ranging from 5.5% to 12.5% in the main section of scheme.
The amount you pay depends on your actual rate of pensionable pay. Your employer will decide the rate that you pay. This means if you are part-time you only pay contributions on your actual earnings.
You also have greater flexibility about the contributions you pay, with the 50/50 section option to pay less contributions and receive reduced benefits.
You can also elect to pay more contributions to buy extra pension, known as Additional Pension Contributions ( APCs) and you continue to have the option to take out an AVC (Additional Voluntary Contributions).
Contributions rates that apply from 1 April 2020 are as follows:
||Actual pensionable Pay
||Up to £14,600
||£14,601 to £22,800
||£22,801 to £37,100
||£37,101 to £46,900
||£46,901 to £65,600
||£65,601 to 93,000
||£93,001 to £109,500
||£109,501 to £164,200
||£164,201 or more
More information on the Scheme can be found at:
Further information is available on our Forms and Leaflets web page.