The LGPS is a valuable part of the pay and rewards package of employees who are entitled to join the Scheme. You can take control by choosing to pay more or less into your pension. The LGPS protects you and your dependants with a range of benefits. You can find out more about the key features of the LGPS in this section.
What is a pension? 01:31
The importance of saving for later life, how you join the LGPS and your employer pays in too
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Highlights of the LGPS
A secure pension
Your pension is worked out every year and added to your pension account. Each year, 1/49th of your pensionable pay is put into your pension account. At the end of the year the total amount of pension in your account is adjusted in line with changes in the cost of living.
As a member of the LGPS, you receive tax relief on the contributions that you pay. You also have the option to exchange part of your pension for tax-free cash when you take it.
Flexibility to pay more or less contributions
You can boost your pension by paying more contributions, which you would get tax relief on. You can also pay half your normal contributions in return for half your normal pension. This is known as the 50/50 section of the Scheme. It is designed to help members stay in the LGPS when times are financially tough.
Peace of mind
Your family enjoys financial security, with immediate life cover and a pension for your spouse, civil partner or eligible cohabiting partner and eligible children in the event of your death in service. If you become seriously ill and you’ve met the two year vesting period, you could receive your pension straight away.
Freedom to choose when to take your pension
Your pension is usually payable from your Normal Pension Age which is linked to your State Pension age. You can choose to retire and take your pension at any time between age 55 and 75. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it’s being paid earlier. If you take it later than your Normal Pension Age it will be increased because it’s being paid later.
Redundancy and efficiency retirement
If you are made redundant or retired in the interests of business efficiency when you are 55 or over (or, in some cases, 50 or over), you will receive immediate payment of the pension you have built up – providing you have met the two year vesting period. Any additional pension you have bought would be reduced if you are under your Normal Pension Age when you retire.
Flexible retirement helps you ease into retirement. If you reduce your working hours or move to a less senior position, you may be able to take some or all of the benefits you have built up. You may wish to consider flexible retirement if:
- you are 55 or over
- you have met the two year vesting period
- your employer agrees.
Your benefits may be reduced for early payment if you retire flexibly before your Normal Pension Age.
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