Before April 2014, the LGPS was a final‑salary pension scheme, meaning the pension earned before that date is based on the member's final pay when they leave.
Even though the scheme changed to CARE in 2014, any pre‑2014 membership still uses final pay, provided membership with the same employer is continuous.
Sometimes an employee's pay goes down. If that happens, this can affect the pension they built up before 2014. However, they may be able to protect the value of their pre‑2014 final‑salary benefits.
When pay protection may apply
A reduction or restriction in pensionable pay may be protected if it happens because the member:
- moves to a lower‑graded job with the same employer
- has pay changed due to an equal‑pay adjustment
- is affected by a job‑evaluation outcome
- has changes to their contract that reduce or stop pensionable payments
- is subject to limits on future pay increases that could reduce their final pension
Protection does not apply if the reduction follows:
- a temporary pay increase
- flexible retirement
The protection the member gets
The member can choose to use an earlier period of pay to calculate their 'final pay' if:
- you, the employer, confirm the reduction qualifies
- the member leaves the LGPS within 10 years of that reduction
This choice is called a Regulation 10 election.
What the member can choose
The member can ask for their final pay to:
- be based on any three consecutive years of pensionable pay
- be from the last 13 years of their membership
- use whole‑time equivalent pay rates
This choice protects the value of their pre‑2014 final salary benefits even if current pay is lower.
The member must make a written election to Pension Services at least 1 month before leaving the scheme or job.
