LGPS Update February 2014

I recently attended a Seminar at UNISON on the Local Government Pension Scheme.

As a member of the scheme and a Branch Officer I felt that for my own benefit and those of our members I should be aware of the changes to the scheme as I, myself, did not fully understand the consequences.

The formulae:-

For service before April 2008:


  • Pensionable service (in years and days) x1/80 of final pay
  • Plus an additional cash lump sum of x3 the pension

For service between April 2008 and March 2014:


  • Pensionable service x1/60 th of FINAL Pay
  • No additional lump sum!

For service after April 2014:


It is a CARE scheme

  • “ CARE” stands for Career Average Revalued Earnings.
  • Your pension will continue to build up as a proportion of your pensionable pay-
  • It will be 1/49th for each year in the LGPS 2014

Instead of calculating your pension with reference to your final pay on retirement, the LGPS 2014 use the average of your annual earnings over your membership of the scheme after April 2014

Each year’s earnings are then increased by inflation (CPI) from the year it is earned up to the year of retirement.

When you retire your pension will be calculated differently depending on when you entered the scheme!

If you entered service (and the scheme) before April 2008 your pension will be calculated using the 3 formulae listed above.

If you entered the scheme between April 2008 and April 2014 your pension will be calculated using the 2 formulae listed.

The rule of 85 still applies!

If you retire early, your age and years service is calculated and if it come to 85 or more then your pension is protected. Eg age 60 and 25 years service added together equals 85 therefore your pension is protected ie you will get your full entitlement.

BUT before the age of 60 a member can only retire with the employers consent!

If you have any pension queries or worries please contact the UNISON office for advice.

You can contact me at: george.beattie@unisonwalthamforest.org.uk


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