Below you’ll find answers to some of the questions we get asked most often. 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.
Back to top
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.
Members of the Local Government Pension Scheme are eligible for free, independent financial advice. You can find out more on the independent financial advice page of this site.
Back to top
Why should I be a member of the pension scheme?
By being a member you will be building up an income for your retirement and you can also have a tax free lump sum when you retire.
Back to top
How much will it cost me?
The cost of membership of the scheme is 6% of your pay until 31 March 2009. Thereafter the cost to you will depend on your full time equivalent salary at the previous 31 March.
You receive tax relief on your contributions - they are deducted from your pay before any taxes are.
As the Local Government Pension Scheme is contracted-out of the State Second Pension Scheme (S2P) you pay a reduced rate of National Insurance.
Back to top
What does my employer pay?
Your employer pays the balance of the cost of providing your benefits after taking into account investment returns. Every three years, an independent expert works out how much this should be.
The amount varies, but generally you pay one third of the total cost and your employer pays the remaining two thirds.
Back to top
What benefits does the scheme 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 50 (age 55 in the new LGPS except for members as at 6 April 2006)
- Optional retirement from age 60
- Cost of living based pension increases
Back to top
Am I able to transfer in service from a previous employer?
You may be able to transfer pension rights into the Local Government Pension Scheme (LGPS) from:
- a previous LGPS fund
- a previous employer’s pension scheme (including an overseas occupational pension scheme)
- a self-employed pension plan
- a “buy-out” policy
- a personal pension plan
- a stakeholder pension scheme.
Back to top
When can I retire?
You can retire and receive your benefits in full from age 65.
Back to top
How are my retirement benefits calculated?
The Local Government Pension Scheme 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.
Back to top
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.
Back to top
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.
Back to top
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.
Back to top
What if my employer retires me on redundancy or efficiency grounds?
If you are aged 50 (this will rise to 55 in the new LGPS unless 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.
Back to top
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.
Back to top
How can I improve my retirement benefits?
Benefit 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 Local Government Pension Scheme and a personal pension scheme or stakeholder pension.
For more information, see the purchasing additional benefits page of this site.
Back to top
How much additional service can I buy?
Before the introduction of the new LGPS on 1 April 2009, you can 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.
Back to top
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
Back to top
Can I opt out of the Local Government Pension Scheme?
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 form. If you want to opt out once a member of the scheme, you need to complete an S11 form. It is important to seek advice before opting out of the scheme - see the independent financial advice page of this site.
Back to top
Can I opt out of the Local Government Pension Scheme 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 scheme more than once, it’s up to your employer if you can join or not. Ask your employer what their policy is.
Back to top
What am I entitled to if I leave my job or opt out of the scheme before I am eligible for retirement benefits?
If you leave local government, or move to an employer who’s not part of the Local Government Pension Scheme, 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.
Back to top
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 Local Government Pension Scheme (LGPS), then 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 that as a member of the LGPS you can get free, independent 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.
Back to top