The Local Government Pension Scheme in Cheshire
The Cheshire Pension Fund is part of a nationwide pension scheme called the Local Government Pension Scheme (LGPS). The pension fund administers the LGPS for the local authorities in Cheshire together with a number of other bodies in the fund such as Colleges, Leisure Organisations and Housing Trusts.
As a member of the LGPS you belong to a scheme which provides high quality pension benefits based on your final, whole time equivalent pay and your actual scheme membership.
The LGPS has recently undergone major changes similar to the other public sector schemes and these changes came into effect from 1 April 2008. We are still awaiting some final details from the Government about the operation of the Scheme. If you require any further information on the Scheme, do not hesitate to contact us either by writing, telephoning the helpline or by sending an email (Contact Details).
The information presented is based on the latest Local Government Pension Scheme Regulations issued in 2007 and 2008. However, it is only a guide to those regulations, so cannot be overrided and neither can it provide a detailed interpretation of the Regulations as they will apply to you.
For Members with Pre-2008 LGPS Membership
Employees
This section is designed to give you the basic facts about the Scheme - the features, benefits and rules that apply to you and the different circumstances you may encounter during your membership. The pension is an important part of your overall remuneration package from your employer and you will find it difficult to provide the same level of benefits at the same cost if you decide to arrange your own pension in some other way.
The main benefits of the Scheme are:
- A guaranteed pension based on 1/60th of your final pay for each year of membership
- The option to give up some of your pension and take a lump sum
- Flexible retirement options
- Death in service cover whilst in employment
- Pension for your spouse/civil partner/cohabiting partner and dependant children.
New Scheme Structure
The basic structure of the Scheme, is based on a final salary set up, but is calculated on 1/60th of the final salary for each year or membership. The old Scheme membership built up prior to April 2008 is calculated on 1/80th and includes an automatic tax free lump sum.
How were the benefits calculated in the Old Scheme?
Benefits built up before 1st April 2008 are calculated as follows:-
Pension = Final Pensionable Pay x Scheme Membership / 80
Plus a lump sum of three times the annual pension.
This ensures that all benefits earned in the Old Scheme will maintain its value in the New Scheme.
How the benefits are built up in the New Scheme?
Benefits built up from 1st April 2008 will consist of a larger annual pension with no automatic lump sum and are built up as follows:-
Pension = Final Pensionable Pay x Scheme Membership / 60
The Scheme is contracted out of the State Second Pension (S2P) and this means that you pay lower National Insurance contributions and if you are a taxpayer, you also receive tax relief on your pensions contributions.
In addition to the basic state pension, your benefits will in general be provided by either the additional state pension called the S2P, a personal pension provided by various institutions such as banks, building societies. Select this section to find out more about each of these options.
You can join the LGPS if you work for one of the local authorities in Cheshire or are part of another organisation that is allowed membership of the LGPS. Select this section to find out more about costs of membership, transfers from other pension schemes and opting out.
There maybe times when you are not at work or are unable to work. Select this section to find out more about absences arising from sick leave, unpaid leave, maternity leave, parental care and industrial dispute.
If you are leaving your current job you have several options on what to do with your accrued Scheme benefits. The options depend on how long you have been a Scheme member and whether or not you transferred membership from another pension. Select this option to find out more about refunds of contributions, transfers out and preserving your benefits.
The normal retirement age in the LGPS is 65 for both men and women. You have the option to retire at age 60, but if you do not have 25 year's Scheme membership your benefits will be reduced. Select this section to find out more about the circumstances where you may be able to retire earlier or later and details of how your retirement benefits are calculated.
Member with service prior to 1 April 2008 please follow this link for information on how your benefits will be calculated. Pre April 08 Service
Pensions are paid to married spouses / civil partners / co-habiting partners and dependant children in the event of your death while you are a Scheme member. Select this section to find out more about death grants, dependants' pensions and pension sharing on divorce.
Under the Civil Partnerships Act 2004 a same sex couple can now obtain legal recognition of thier relationship by notifying their intention to register a Civil Partnership. From the 5th December 2005 Civil Partnerships have been recognised in the LGPS Regulations.
The main impact of this change on the LGPS will be to extend the provision of the spouse's pensions / and of pensions on divorce settlements currently applicable to married Scheme members, to include members who have registered Civil Partnership.
The regulations now provide survivor benefits for same sex partners based on membership earned in the Scheme after 5th April 1988.
There are a number of options available for you to increase your benefits, however, HM Revenue & Customs imposes restrictions on how much of your pay you can spend on your pension. Select this section to find out more about the options available and restrictions imposed by HM Revenue & Customs.
Select this opton to view further information on personal pension schemes.
Select this option to view the frequently asked questions about the Scheme and your Annual Benefit Statement.
When things go wrong.
There are times when Scheme members, employers and the administering authority may find themselves in disagreement about a pension issue. The first approach in such situations is for those involved to talk to each other to reach resolution. However, should this not prove possible, the County Council has established an Internal Disputes Resolution Procedure (IDRP).
If you wish to see the full Local Government Pension Scheme Regulations please select the link below.
Further Information - Useful Publications
Active Members Newsletter - November 2008
New Scheme Booklet - 2008
Question and Answers - New Scheme 2008
New Look Pension Scheme 2008 Poster
Pension Changes Newsletter (August 2007)
DCLG Pensions Newsletter (August 2007)
Please note the Regulations which have already been made, could be amended in the future. These will be added to the Website as they are confirmed. |