Pensions IWC

Current Members

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 2018 are as follows:

 Band Actual pensionable Pay Contribution rate
1 Up to £14,100 5.5%
 2 £14,101 to £22,000 5.8%
 3 £22,001 to £35,700 6.5%`
 4 £35,701 to £45,200 6.8%
 5 £45,201 to £63,100 8.5%
 6 £63,101 to 89,400 9.9%
 7 £89,401 to £105,200 10.5%
8 £105,201 to £157,800 11.4%
9 £157,801 or more 12.5%

 

More information on the Scheme can be found at:

 

Online calculators:

 

Further information is available on our Forms and Leaflets web page.