If you join the Local Government Pension Scheme (LGPS) after 31 March 2008  you will become a member of the New Look 2008 LGPS. The benefits accrued will be calculated using the New Look 2008 LGPS regulations and will provide the following benefits:-

• pension calculated at 1/60th of your final year's pay.

• The option to receive a tax-free lump sum by commuting, or swapping, £1.00 of your annual pension for £12.00 of lump sum.  You are allowed to receive up to 25% of the capital value of your pension pot when you retire.

If you were paying into the Local Government Pension Scheme (LGPS) on 31st March 2008 and were automatically transferred to the New Look 2008 LGPS, the membership you have built up before 1st April 2008 has been 'banked’ and will be used to provide pension benefits based on the 1997 Regulations accrual rates.

Main features of the New Look LGPS

• Some casual employees will not be eligible to remain in the scheme or those members with a contract of less than 3 months.

• The new scheme provides a pension of 1/60th of final pay for each year of membership in the scheme from 1st April 2008.

• Scheme members will have the flexible option to take a bigger lump sum (up to a maximum tax free lump sum of 25% of the capital value of accrued benefit rights at the date of retirement). This is achieved by commuting some of your pension. For each £1.00 of pension you give up a tax free lump sum of £12.00 will be paid.

• Benefits will be calculated on the best one of the last three years' whole time equivalent pay, but scheme members who downgrade (other than as a result of flexible retirement) can choose to have benefits calculated on the average of the best three consecutive years' pay in the last ten years of service (ending on a 31st March).

• There will be a normal retirement age of 65 for the release of unreduced benefits, but with the right to take pension from age 60 or, with employer's consent, from age 55 (or from age 50 for existing members opting to draw benefits with employer consent before 31st March 2010).

• Employees can be in the Scheme beyond age 65, but benefits must be drawn before age 75. Benefits drawn after age 65 will be actuarially increased to reflect the fact that they are being paid after the normal retirement age of 65.

• Immediate benefits will be paid on redundancy / efficiency from age 55 (or from age 50 for existing members leaving before 31 March 2010).

• There will be a three tier ill health retirement package where employment is terminated because of permanent ill health and there is reduced likelihood of obtaining gainful employment, providing a higher enhancement of benefits where the member has no reasonable prospect of obtaining gainful employment before age 65, and a lower enhancement of benefits where the member is unlikely to obtain gainful employment in a reasonable time but is likely to do so before age 65. Furthermore, a member who leaves  employment as a 3rd tier member will be entitled to their annual accrued benefits payable as a pension for such time as the member does not obtain gainful employment, or until the employer stops payments following a review. There are protections for existing Scheme members who will be aged 45 or over on 31st March 2008, to ensure they receive no less than they would have done under the 1997 Regulations.

• Flexible retirement with employer consent, under specific circumstances, will be permitted from age 55, allowing scheme members to draw some or all of their benefits while still continuing to work (or from age 50 for existing members opting to draw benefits on flexible retirement with employer consent before 31st March 2010).

• The death in service tax free lump sum will be increased from 2 to 3 times pay.

• The post retirement lump sum paid on death before age 75 will be increased from 5 to 10 times pension less pension already paid.

• Survivor benefits will be payable for life to spouses, civil partners and nominated cohabiting partners at a 1/160th accrual rate i.e. 1/160th of the deceased scheme member's final pay for each year of membership in the scheme (although civil partners and nominated co-habiting partners pensions are expected to be based on post 5th April 1988 membership only).

• Survivor benefits will be payable to children with the amount depending on the number of children and whether or not a spouse’s, civil partner’s or nominated co-habiting partner’s pension is payable.

• Employee contribution rates are banded according to the whole time equivalent pay at the end of the previous year. Details of the current contribution rate bands can be found on the Cost of membership page.

• Scheme members will be able to buy extra scheme pension in steps of £250 up to a maximum of £5,000 or pay Additional Voluntary Contributions (AVCs).

• Employers will be able to award up to 10 years extra membership and / or grant extra pension up to a maximum of £5,000.