Active members
Introduction
This section gives you information about the Local Government Pension Scheme (LGPS) and will include answers to some of the questions you may have, such as who is eligible to join the LGPS, what benefits are provided by the scheme and when will your benefits become payable.Automatic entry to the scheme is available to most new employees under age 75, unless:
- you are an employees of an admitted body, where you have to be nominated by your employer
- it is clear that the employment is for less than three months.
The LGPS is also available to all councillors and elected mayors of an English county council or district council, who can join the LGPS if they are under the age 75. More information is available on the councillor members page.
Benefits provided by the scheme
The Local Government Pension scheme provides the following excellent range of cost effective pension benefits:A secure pension
The scheme provides you with a secure future income, independent of share prices and stock market fluctuations. Your pension will also receive annual cost of living increases.
Tax-free lump sum
All membership built up before 1st April 2008 will be ‘banked’ and used to provide an automatic tax free lump.
There is no automatic tax free lump sum for service built up after 31st March 2008, however, you will be given the opportunity to give up part of your pension in return for a tax free lump sum.
Low cost
Most people enjoy tax-efficient savings and lower National Insurance contributions.
Employer contribution
Your employer pays whatever amount is necessary to ensure that your benefits are properly funded.
Peace of mind
Your family enjoys financial security with life cover and a pension for your husband, wife, civil partner , nominated cohabiting partner and children, in the event of your death while contributing. If you ever become seriously ill, you could receive immediate ill-health benefits.
Early retirement
You can choose to retire from age 60 and receive your benefits immediately, although they may be reduced for early payment. It’s also possible to retire from age 55 and receive your benefits immediately, either with your employer's consent or if you are made redundant or retired in the interests of efficiency.
Flexible retirement for employees
From age 55, you could reduce your hours or move to a less senior position and, if your employer consents, draw your benefits – helping you ease into retirement, although your benefits may be reduced for early payment. Flexible retirement does not apply to councillors.
Options to pay extra
You can boost your pension by paying extra pension contributions to purchase additional pension. You get tax relief on these too.
Life Cover and Family Protection
There are a range of benefits payable to your spouse, registered civil partner, cohabiting partner and dependant children if you die in service, whilst a member of the LGPS.