How are my deferred benefits worked out?

Any pension built up in the scheme from 1st April 2015 will be on a Career Average Revalued Earnings (or CARE) basis.

If you have membership before 1 April 2015, your pension is worked out using your final pay and your membership.

For service from 1st April 2015:

For each employment you will have a Pension Account. This will hold the pension you are building up in the Scheme.

Your pension each year that will be added to your Pension Account will be worked out using your pensionable pay each year as at 31 March.

Each year you will build up a pension of 1/49 of your pensionable pay for that year. Each following year the pension in your Pension Account will be adjusted by the Consumer Price Index.

For Service from 1st April 2009 to 31st March 2015:

If you joined the Scheme for the first time on or after 1 April 2009, your benefits are worked out as:

Pension = final pay x membership ÷ 60

You can take part of your pension as a tax-free lump sum, but you will have to give up some of your pension for this.

For Service before 1st April 2009:

If you have membership before 1 April 2009, the benefits you earned before 1 April 2009 are worked out as:

Pension = final pay x membership ÷ 80

Lump sum = pension x 3

You can choose to give up some of your pension for a bigger lump sum.

If you have membership both before and after 1 April 2009 the two amounts of pension and tax-free lump sum will then be added together to give you your total final salary benefits.

What if I work part time or term time?

If you work part time or term time your pay used to work out your benefits for membership before 1 April 2015 will be your full time equivalent rate. Your membership will be proportionate based on the actual hours you worked. For membership after 1 April 2015 your pension account will be based on the actual pay from which your pension contributions were deducted.

Example of how deferred benefits are worked out

Bob earns £20,000 a year in April 2015.

Bob has built up 20 years membership before 1 April 2015 and will build up another 6 years membership in the Scheme before he retires.

For membership from 1 April 2015:

Year	Pensionable pay	Pension earned	Brought forward	Revalued value
2015/16	£20,000	£408.16	£0	£407.76
2016/17	£20,400	£416.32	£407.76	£832.32
2017/18	£20,808	£424.65	£832.321	£1,294.68
2018/19	£21,224	£433.14	£1,294.68	£1,769.30
2019/20	£21,648	£441.80	£1,769.30	£2,248.68
2020/21	£22,081	£450.63	£2,248.68	£2,699.31

The above is based on actual revaluation for financial years between 2015/16 and 2019/20. It is assumed that his pay will increase each year by 2% throughout.

So the pension for the period from 1 April 2015 to 1 April 2021 is £2,699.31 a year.

For the membership between 1 April 2009 and 31 March 2015:

Pension = final pay x membership x 1/60

Pension = £22,081 x 6 ÷ 60 = £2,208.10 a year

For membership before 1 April 2009:

Pension = final pay x membership x 1/80

Pension = £22,081 x 14 ÷ 80 = £3,864.18 a year

Lump sum = £3,864.18 x 3 = £11,592.53

So Bob's total benefit will be:

Pension = £8,771.59 a year (£2,699.31 + £3,864.18 + £2,208.10)

Lump sum = £11,592.53

Bob can also choose to give up some of his pension for an even bigger lump sum.

Example of how benefits are worked out if you work part time

Sue works part time and earns £10,000 a year, in April 2015, her full-time equivalent pay is £20,000.

She has worked for 20 years before 1 April 2015 and will work for another 6 years before she retires.

Sue has always worked half the hours of a full-time colleague and so her membership used to work out her retirement benefits will be 7 years before 1 April 2009 and 3 years after 1 April 2009.

For membership from 1 April 2015:

Year	Pensionable pay	Pension earned	Brought forward	Revalued value
2015/16	£10,000	£204.08	£0	£203.88
2016/17	£10,200	£208.16	£203.88	£416.16
2017/18	£10,404	£212.33	£416.16	£647.34
2018/19	£10,612	£216.57	£647.34	£884.65
2019/20	£10,824	£220.90	£884.65	£1,124.34
2020/21	£11,040	£225.31	£1,124.34	£1,349.65

The above is based on actual revaluation for financial years between 2015/16 and 2019/20 financial years. It is assumed that her pay will increase each year by 2% throughout.

So, the pension for the period from 1 April 2015 to 1 April 2021 is £1,349.65 a year.

For the membership between 1 April 2009 and 31 March 2015:

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/60

Pension = £22,081 x 3 ÷ 60 = £1,104.05 a year

For the membership before 1 April 2009:

Pension = final pay (full time equivalent) x membership (proportionate to part time hours) x 1/80

Pension = £22,081 (full time equivalent) x 7 ÷ 80 = £1,932.09 a year

Lump sum = yearly pension x 3

Lump sum = £1,932.09 x 3 = £5,796.26

So, Sue's total benefit will be:

Pension = £4,385.78 a year (£1,349.65 + £1,932.09 + £1,104.05)

Lump sum = £5,796.26

Helpful Information

LGPS
Accessing your benefits
Scheme Benefits

LGPS

Visit the LGPS Website

Accessing your benefits

Visit the Accessing your benefits section for information on requesting payment of your benefits and getting an estimate online.

Accessing Your Benefits

Scheme Benefits

Visit the How your pension works section.

Accessing Your Benefits

How are my deferred benefits worked out?

For service from 1st April 2015:

For Service from 1st April 2009 to 31st March 2015:

For Service before 1st April 2009:

What if I work part time or term time?

Example of how deferred benefits are worked out

For membership from 1 April 2015:

For the membership between 1 April 2009 and 31 March 2015:

For membership before 1 April 2009:

So Bob's total benefit will be:

Example of how benefits are worked out if you work part time

For membership from 1 April 2015:

For the membership between 1 April 2009 and 31 March 2015:

For the membership before 1 April 2009:

So, Sue's total benefit will be:

Helpful Information

LGPS

Accessing your benefits

Scheme Benefits

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