Benefits of the LGPS

The LGPS is one of the most generous pension schemes in the UK. The LGPS is a salary-related, defined benefit scheme and will not be affected by stock market changes or performance of investments.

 
 

Key benefits include:

  •  A secure pension – worked out every scheme year and added to your pension account. Your pension account is revalued each year to allow for inflation and to keep up with the cost of living

  •  Tax-free cash – you have the option when you draw your pension to exchange part of it for some tax-free lump sum cash. 

  •  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 and, if you ever become seriously ill and you've been in the scheme for 2 years, you could receive immediate ill health benefits. See the 'Protection for your family'tab

  • Freedom to choose when to take your pension – you do not need to have reached your Normal Pension Age in order to take your pension as, once you've been in the scheme for 2 years, you can choose to retire and draw your pension at any time from ages 55 - 75 (these may be reduced if paid earlier than your Normal Pension Age, or increased if paid after).

  •  Flexibility to pay more or less contributions – you have the option in the LGPS to pay half your normal contributions in return for half your normal pension. This is known as the 50/50 section of the scheme and is designed to help members stay in the scheme when times are financially tough. You can also boost your pension by paying more contributions, which you would get tax relief on. Please see the 'LGPS 2014' tab for further information.

 

Did you know that your employer also contributes to your pension?

Key benefits include:

  • Contributions from the employer;
  • Secure pension on retirement;
  • Protection for your loved ones via ill health cover;
  • The ability to nominate co-habiting partners to receive a pension - you do not need to be married;
  • Death cover up to 3x your salary;
  • Ability to translate some of your pension into a tax free lump sum on retirement;
  • No hidden costs or charges - your contributions are based on the amount you earn; and
  • The value of your pension is increased with inflation, meaning it keeps up to date with the cost of living
  • Joining the LGPS comes at a low-cost to you, with tax-efficient savings and lower national insurance contributions for most people under the state pension age.


I'm too young to be thinking about a pension, right?

The short answer is no. The LGPS is based partly on length of service so the earlier you start the more years you can build up in a pension fund.

As well as the longer term benefits of security in retirement there is also a range of benefits for NOW.......TODAY. By being in the pension scheme you can protect yourself and your loved ones from financial insecurity if unfortunate events happen in your life. These include: 

  • A lump sum Death Grant of 3 x your pensionable pay which may be payable to your beneficiary.

  • Pension for your spouse, civil partner or eligible cohabiting partner and eligible children in the event of your death

  • Ill-health protection