Membership

This is the period we have used to work out your benefits.

If you were part-time during your membership we have scaled that period down in proportion to the hours you worked.

For Example

Mr A has paid into the pension scheme for 20 years and has always worked 25 hours per week. His membership is calculated as follows:

If you are a man and you were ever married during your membership, we have reduced any membership you had before 1st April 1972 to 89% of its normal length. Any future changes to your marital status will not affect this. If you paid extra contributions to avoid all or part of this reduction, we have taken this into account. However, if you retired, other than because of ill-health, before you finished buying all your pre 1st April 1972 membership, any part you have not paid for counts at 89%.

Final Pay

This is the pensionable pay figure we have used to work out your benefits.

It is usually the pay you have paid pension contributions on in your final year of membership. However, if you have been on reduced pay or no pay because of sickness we have used your normal full pay.

We have converted any part-time pay into the whole-time equivalent.

For Example

We have worked out your basic pension by multiplying 1/80th of your final pay by your membership up to and including 31^st March 2008. We have multiplied 1/60^th of your final pay by your membership from 1^st April 2008 to calculate this part of your basic pension.

For Example

If you were over 45 when you first joined the LGPS and you elected to buy or you have been awarded extra membership prior to 6 April 2006, we have worked this part of your pension out by multiplying 1/60th of your final pay by your extra membership. This 'sixtieths' calculation gives more pension than the former 'eightieths' calculation but you won't get any lump sum retirement grant based on your extra membership. Extra membership does not include membership you have bought under the buy-back scheme for part-timers or by transferring AVCs.

If you have chosen to give up some pension for extra retirement grant, your statement shows the decrease in your pension and the increase in your retirement grant.

Guaranteed minimum pension - Under the Pension Schemes Act 1993 we have to pay certain minimum amounts of pension. If, at state pensionable age, your pension falls short of that minimum, we will increase it to bring it up to the minimum level.

Surviving Partner Pension

If you are married, in a registered civil partnership, or have a nominated cohabiting partner the spouse's/civil partner’s/cohabiting partner’s pension shown on your statement is the pension we will pay each year to your partner if you die first and your partner is eligible to receive a pension when you die. However, only the deceased scheme member’s total membership from 6 April 1988 is used in the calculation unless, in the case of a widower’s pension, the deceased scheme member had opted for membership before this date to count for widower’s pension purposes.

If you marry after leaving the LGPS your spouse's pension will normally be less than the amount shown on your statement. In this case a widow’s pension is normally 1/160^th of her husband’s pension based on his LGPS membership after 5th April 1978 and a widower’s pension is normally 1/160^th of his wife’s pension based on her membership after 5th April 1988.

A civil partner’s pension is based on your total membership after 5 April 1988 and a cohabiting partner pension is also based on your total membership after 5 April 1988.

Lump Sum Retirement Grant

We have worked out your retirement grant by multiplying 3/80ths of your final pay by your membership up to and including 31^st March 2008. There is no automatic lump sum for membership in the Scheme from 1^st April 2008.

For Example

Mr A has 13 years 187 days service and has a final pay of £14,664.00. His retirement grant is based on
service up to 31^st March 2008 (10 years 187 days):

Reduction for early retirement

We may have reduced your benefits if we are paying them before normal retirement date, but not if we are paying them because of ill-health or redundancy or on efficiency or compassionate grounds.

However, if you are a man we cannot reduce your pension to less than one eightieth of your final pay multiplied by your membership from 17 May 1990 to 30 April 1995. If you are a woman we cannot reduce your pension to less than one eightieth of your final pay multiplied by your membership from 6 April 1978 to 30 April 1995. We call this minimum pension 'requisite pension'. If your reduced pension is less than this, we have increased it and shown your increased, requisite pension on your statement.

If you have used Additional Voluntary Contributions (AVCs) to buy some extra membership we may have reduced that extra membership if you retired early.