Introduction to Local Government Pension Scheme (LGPS)

You can buy additional pension by agreeing to pay additional pension contributions (APCs). 

You choose:

• how much extra you want
• for how long
• if you want a dependent's pensions

You can:

• start buying extra at anytime
• get tax-relief on your contributions
• receive the extra pension as tax-free cash when you retire (where each £1 in pension will translate into £12 tax-free cash)
• stop paying at any time (you'll be credited with what you've paid)

APCs also mean:

• your contribution remains the same
• your pension contribution will rise with inflation every April
• your pension will be paid in full when you retire, assuming you've finished paying and haven't asked to have them paid earlier than 65
• your contributions get waived if you retire on health grounds meaning you receive full benefit

You’re guaranteed that the additional pension will be paid for 10 years. If you die before that, your next of kin will get an extra death grant.

If you leave local government service but pass away before the pension starts, the system will pay a death grant. It will be five times the value of the additional pension.

If you die while in service, we will not pay any additional pension. This is unless you chose an additional dependant's pension.

If you've chosen a dependant's pension, it can only be paid to a dependant that's recognised by the LGPS 2013 to receive a survivor's pension. They must be a legal spouse, a civil partner, a nominated co-habiting partner or an eligible child.

A partner's pension is about 37.5% of the member's additional pension. A single eligible child gets 18.75%. Otherwise, 37.5% will be divided equally among them.

Dependants' pensions are calculated based on the originally chosen amount.

You can also pay extra contributions to AEGON, the council's provider. They are limited to 50% of your monthly salary.

You invest your contributions in your chosen funds. You can use them to buy an annuity at retirement age. This is part of the larger lump sum now allowed. Or, you can use them to buy extra service in the pension scheme.