How is my LGPS pension calculated?
1/49th of your pensionable pay is put into your pension account every year. Assumed pensionable pay is used if your pay has been reduced for certain reasons. At the end of each year, your pension account is adjusted in line with the cost of living.
How much is a local government pension?
What do I pay? Your contribution rate depends on how much you are paid but it will be between 5.5% and 7.5% of your pay. The rate you pay depends on which pay band you fall into. The pay band ranges are reviewed each April in line with the cost of living.
Can I view my LGPS pension online?
Whether you’re an active, deferred or pensioner member, ‘my pension online’ can help you manage your Buckinghamshire LGPS pension benefits. With ‘my pension online’ you can: update your contact details and make sure you never lose track of your pension.
Can I take 25% of my local government pension?
When you take your pension your pension fund will ask you if you want to give up some of your pension for lump sum. The maximum tax-free lump sum is generally 25% of the capital value of your pension benefits.
How do you calculate your pensionable salary?
Basic pay is the most common method of calculation for defined contribution pensions. In this method, pensionable earnings = the employee’s basic salary before any bonuses, overtime or commission.
How can I increase my LGPS pension?
There are two ways you can pay extra contributions in the LGPS. You can pay Additional Pension Contributions, Additional Voluntary Contributions or both. You can also pay extra outside of the LGPS to increase your retirement income.
Are Local Government Pensions any good?
The Local Government Pension Scheme is often viewed as one of the most valuable financial rewards of your job providing you with a secure, Government backed, guaranteed income, when you retire.
When can I access my local government pension?
Overview. You can take your LGPS pension at any time from age 55 to 75, as long as you have met the two-year vesting period. You must take your pension by age 75. If your employer agrees, you can even take your pension without leaving your job – this is called flexible retirement.
What is the 85% rule?
The rule of 85 says that workers can retire with full pension benefits if their age and years of service add up to 85 or more. So if you’re 60 years old and you’ve been working at the same company for 25 years then technically, you could be eligible for full pension benefits if you choose to retire early.
What is the LGPS 85 year rule?
If you were a member of the LGPS at any time between 1 April 1998 and 30 September 2006, you may be protected under the 85-year rule. You satisfy the 85-year rule when your age and length of LGPS membership add up to 85. Your age and Scheme membership are both measured in full years for this purpose.
What is the local government pension scheme (LGPS)?
The LGPS is administered locally for participating employers through 99 regional pension funds. Visit the LGPS website at www.lgps.org.uk to find out how to contact your pension fund administrator, or ask your employer.
How do I join the local government pension scheme?
The LGPS is administered locally for participating employers through 99 regional pension funds. Visit the LGPS website at www.lgps.org.uk to find out how to contact your pension fund administrator, or ask your employer. If working for an admitted body* you have to apply to join the LGPS, entry to which is at the discretion of your employer.
How does my employer decide the percentage of my pension contributions?
Your employer decides the percentage based on how much you earn. If you earn enough to pay tax, you will receive tax relief on the contributions – this means the real cost is less than the amount you see on your payslip.
Can councillor members of the LGPS use the calculator?
Councillor members of the LGPS are not covered by this calculator and should not use it. Who can join the scheme?