Tax relief
As a member of the LGPS, you receive tax relief on the contributions that you pay. You also have the option to exchange part of your pension for tax-free cash when you take it.
Flexibility to pay more or less contributions
You can boost your pension by paying more contributions, which you would get tax relief on. With the 50/50 section, you can pay half your normal contributions in return for half your normal pension. The 50/50 section is designed to help members stay in the LGPS when times are financially tough.
Peace of mind
Your family enjoys financial security if you die in service, with immediate life cover and a pension for your:
- spouse
- civil partner
- eligible cohabiting partner
- eligible children
If you become seriously ill and have met the two-year qualifying period, you could receive your pension straight away.
Retirement benefits
Once you have met the two year qualifying period, you can retire from office and take your pension from age 55. We normally pay benefits you take before state pension age at a reduced rate. When you retire you can look forward to a pension payable for life that increases each year in line with the cost of living.
If you leave before retiring
If you leave the LGPS before you retire and have at least two years' membership, we will defer your pension benefits. We'll hold your benefits for you until you are ready to retire, which you can do from age 55. The government has increased the earliest age at which you can take your pension from age 55 to 57 from 6 April 2028. The LGPS regulations do not yet reflect this change.
If you leave with less than two years' membership, you may be able to claim a return of your contributions, less tax.
How we work out your benefits
1/49th of your pensionable pay is put into your pension account every year. We adjust the balance in your pension account in line with the cost of living every April. When you retire, the balance in your pension account is the annual pension payable for life.
