Below you’ll find answers to some of the questions we get asked most often about the Local Government Pension Scheme (LGPS). If you can’t find the answer to your question below, please contact us.
How can I contact the Strathclyde Pension Fund Office?
Full contact details can be found on the contact us page of this site.
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Can I get advice from the Strathclyde Pension Fund Office?
The Strathclyde Pension Fund Office is not licensed to give financial advice, but we are willing to assist with any aspects of your pension rights.
You can find out more on the financial advice page of this site.
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Why should I be a member of the LGPS?
To protect your loved ones and to build up an income (and lump sum) for your retirement.
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How much will it cost me?
From 1 April 2009 your contribution will depend on your full time equivalent pay as shown in the table below.
Pay tranche Contribution rate paid on that tranche
Up to and including £18,000 5.50%
Above £18,000 and up to £22,000 7.25%
Above £22,000 and up to £30,000 8.50%
Above £30,000 and up to £40,000 9.50%
Above £40,000 12.00%
To find out your estimated contribution rate from 1 April 2009, click here to go to our new LGPS contribution calculator.
Your employer pays the rest of the cost of providing your benefits. This amount varies but it’s always enough to make sure your pension can be paid and will be at least 18.2% of your pay.
You get tax relief on your contributions - the tax you pay on your salary is calculated after your pension contributions are deducted.
You’ll also pay lower national insurance contributions on your earnings, as the LGPS is contracted-out of the State Second Pension Scheme (S2P).
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What does my employer pay?
Every three years, an independent expert works out how much this should be. The amount varies, but for scheme year 2010/2011 it will be at least 18.2% of your pay.
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What benefits does the LGPS offer?
- A guaranteed pension for life
- A tax free lump sum
- Death benefits for your family
- Ill-health retirement benefits
- Redundancy retirement benefits from age 55 (age 50 for members as at 6 April 2006)
- Optional retirement from age 60
- Cost of living based pension increases
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Am I able to transfer in service from a previous employer?
You may be able to transfer pension rights into the LGPS from a public sector scheme provided that you ask within 12 months of joining.
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When can I retire?
You can retire and receive your benefits in full from age 65. From age 60 you can choose to retire, but this may reduce your benefits if you do not have protection under The Rule of 85. If you are interested in flexible retirement, you will need to obtain your employer's permission.
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How are my retirement benefits calculated?
The LGPS is a final salary pension scheme. This means the payment you get is based on your final year’s pensionable pay and your total length of membership.
Up to 31 March 2009, for most people, the annual pension payment is worked out by dividing your final pay by 80 and multiplying this by your total membership.
To work out your lump sum, divide your final salary by 80, multiply this by your total membership, and then multiply the final figure by 3.
For any service after 31 March 2009, your annual pension will be worked out by dividing your final pay by 60, and you will have the option to take part of this as a lump sum.
More details can be found on the what you receive page of this site.
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What do you mean by pensionable pay?
Pensionable pay is any part of your pay from which contributions have been deducted - basic pay, bonus payments, contractual overtime, and weekend enhancement.
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What is my final year’s pensionable pay?
Final year’s pay is the pensionable pay received over the last 365 days before date of retirement.
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What happens if I have to retire early due to ill health?
If you have two years’ membership and a Strathclyde Pension Fund approved independent registered doctor certifies you’re unable to work because of ill health, you will receive your pension immediately.
For more information see the when can you retire page of this site.
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What if my employer retires me on redundancy or efficiency grounds?
If you are aged 55 (50 if you were a member as at 6 April 2006) or over and have at least two years’ total membership, you will receive your pension and lump sum immediately.
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What if I should die while still in employment?
A death grant is payable, as well as a spouse’s pension and children’s pension, where appropriate.
More details can be found on the protect your family page of this site.
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How can I improve my retirement benefits?
Benefits can be improved through:
- Purchasing additional service (or pension from 1 April 2009).
- Contributing to the additional voluntary contributions (AVC) scheme.
- Concurrent membership of the LGPS and a personal pension scheme or stakeholder pension.
For more information, see the purchasing additional benefits page of this site.
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How much additional service can I buy?
Before 1 April 2009, you could elect to set up an arrangement to purchase up to 6 years 9 months additional years of membership. Additional monthly contributions start on your birthday following the choice to buy them, and are worked out so you pay them up to the day before your 65th birthday.
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Where can I get information on the non added years additional voluntary contribution (AVC) scheme?
Our AVC scheme is administered for us by Prudential. To receive a Local Government information pack call Prudential’s Pension Connection on 0845 607 0077 or email your contact details to strathclydeavc@prudential.co.uk
You can visit the Prudential Local Government AVC pages on the web at www.pru.co.uk/localgovavc
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Can I opt out of the LGPS?
You can opt out of the scheme at any time by contacting your Personnel or Human Resources team. If you opt out on starting employment, you will need to complete an S1A, election not to join the pension scheme, form. If you want to opt out once a member of the scheme, you need to ask your employer to complete an S11, member opting out, form. It is important to seek advice before opting out of the LGPS - see the financial advice page of this site.
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Can I opt out of the LGPS and re-join at a later date?
If you opt out once, you can re-join at any time.
If you opt out of the LGPS more than once, it’s up to your employer if you can join or not. Ask your employer what their policy is.
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What am I entitled to if I leave my job or opt out of the LGPS before I am eligible for retirement benefits?
If you leave local government, or move to an employer who’s not part of the LGPS, you can’t keep paying in to the same pension. This doesn’t mean that everything you’ve paid in so far has been lost. There are several things you can do with your pension, which are outlined in the deferred member section of this site.
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What happens if I change my job?
If you change jobs but stay working in the local government or for another employer who’s part of the LGPS, you can ask to have your pension transferred to your new employer. They will not be transferred automatically. If you’re getting paid less in your new job, it might not be in your best interests to transfer your pension. Remember to consider taking financial advice.
If you leave local government completely, or choose not to transfer the pension you’ve accumulated, it will be treated as a deferred pension. See the deferring your pension page for more information.
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