How is my pension calculated?

How is my pension calculated?

Table of Contents

How is my pension calculated?

Sections of the Scheme

The LGPS is made up of two sections - the MAIN Section and the 50/50 Section.

The MAIN section is the section that scheme members are admitted to from the commencement of their employment. In that section, you pay normal contributions and receive the normal pension build up based on a 49th of your pensionable pay earned every scheme year. A scheme year runs from 1 April to 31 March.

The 50/50 section has been available since 1 April 2014. You can elect to move to this section if you wish. If you do so, you will then pay half contributions and your pension will build up based on a 98th of your pensionable pay received every scheme year. Anyone in the 50/50 section can move back to the MAIN section whenever they wish.

Regardless of the section you are in, you still receive full life assurance cover from day one of your membership.

Please note the LGPS is a Defined Benefit (DB) pension arrangement which means the benefits you build up are not based on the contributions that you or your employer pay. The benefits paid from the LGPS are defined in legislation and therefore set out in law. There are set formulae and strict regulations governing how benefits are to be calculated and paid.

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