- Calculation of Benefits
- Pensions Increase
- Pension Transfers
- Payment of Deferred Benefits
- Benefit Reductions
- Pension Conversion
- Early Retirement
- Annual Allowance
- Death of a Deferred Pensioner
- Pension Sharing on Divorce or Dissolution of Civil Partnership
- Annual Benefit Statements
- Pensions Literature
- Pensions Forms
- Useful Links
- Contact Us
Calculation of Benefits
Your pension benefits are based on your final salary (which is otherwise known as your pensionable pay) and also how many years membership you have accrued in the pension scheme. Full-time LGPS members accrue pension membership on a day for day basis, so 1 calendar day equals 1 day pensionable membership.
Part-time or term-time LGPS members accrue membership on a pro-rated basis. The amount of hours you work per week and the amount of weeks you work per year determines how many days pensionable membership you will be credited with during each calendar year that you work.
Example of part-timer: Anita works 18.5 hours per week which is exactly half-time hours. This means that each calendar year that she works, Anita will accrue 6 months LGPS membership.
Example of term-timer: Gary works 37 hours per week for 44 weeks per year. Although he works full-time, he only accrues 309 days for each calendar year that he works term-time:-
44 weeks / 52 weeks x 37 hours = 31.31 hours over 52 weeks
31.31 hours / 37 hours x 365 days = 309 days
Benefits that you have accrued up to 31 March 2008 is based on 80ths and any benefits built up since 1 April 2008 is based on 60ths.
An example of how your benefits will be calculated is shown below:-
1/80 x final pensionable pay x membership up to 31/03/2008
1/60 x final pensionable pay x membership from 01/04/2008
You will only receive a lump sum at retirement if you have accrued membership in the LGPS before 1 April 2008. The tax free lump sum is calculated as follows:
3/80 x final pensionable pay x membership up to 31/03/2008