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Jargon buster

  • Abatement

    This refers to the amount by which a member's pension may be reduced upon re-commencing employment eligible for membership of the LGPS.
  • Accrual rate

    The rate at which a scheme member's benefits build up for each year and part year of scheme membership.

    The accrual rate was 1/80th pension and 3/80ths lump sum for membership before 1 April 2009.

    It was 1/60th pension and no automatic lump sum from 1 April 2009 to 31 March 2015.

    From 1 April 2015 it is 1/49th and no automatic lump sum, and is based (not on final pensionable pay but) on career average revalued earnings.


    AA  Annual Allowance
    ACT  Advance Corporation Tax

    APC Additional Pension Contribution
    AVC Additional Voluntary Contribution
    ARC  Additional Regular Contribution
    BCE  Benefit Crystallisation Event
    CA  Certified Amount

    CARE Career Average Revalued Earnings (the LGPS can be described as a career revalued actual pension scheme)  

    CAY  Compensatory Added Years
    CEP  Contributions Equivalent Premium
    CETV  Cash Equivalent Transfer Value
    CLG  Communities and Local Government
    COD  Contracted Out Deduction
    COEG  Contracted-Out Employments Group
    COMBS  Contracted-Out Mixed Benefit Scheme
    COMPS  Contracted-Out Money Purchase Scheme
    COSRS  Contracted-Out Salary Related Scheme
    DWP  Department of Work & Pensions
    ECON  Employers Contracting-Out Number
    FSAVC  Free Standing Additional Voluntary Contribution
    FURBS  Funded Unapproved Retirement Benefits Scheme
    GAD  Government Actuary's Department
    GMP  Guaranteed Minimum Pension
    HMRC  Her Majesty's Revenue & Customs
    IDRP  Internal Disputes Resolution Procedure
    IFA  Inter-fund Adjustment
    ILA  Individual Lifetime Allowance
    LAC  Lifetime Allowance Charge
    LAEF  Lifetime Allowance Enhancement Factor
    LGE  Local Government Employers
    LGPC  Local Government Pensions Committee
    LGPS  Local Government Pension Scheme

    LTA Lifetime Allowance
    NAPF  National Association of Pension Funds (now PLSA)
    NRA  Normal Retirement Age
    NRD  Normal Retirement Date
    PI  Pensions Increase
    PIA  Pension Input Amount
    PIP  Pension Input Period

    PLSA Pensions and Lifetime Savings Association
    RPI  Retail Prices Index
    S2P State Second Pension
    SCAVC  Shared Cost Additional Voluntary Contribution Scheme
    SCON  Scheme Contracting-Out Number
    SERPS  State Earnings Related Pension Scheme
    SIP  Statement of Investment Principles
    SLA  Standard Lifetime Allowance
    SPA  State Pension Age
    TPAS  The Pensions Advisory Service (formerly OPAS)
    TV Transfer Value

  • Actuarial reduction (also called percentage reduction)

    The amount(s) by which a pension or lump sum is reduced if taken before normal pension age.

  • Additional voluntary contributions (AVCs)

    Payments made within certain HM Revenue & Customs limits to an approved provider (normally an assurance company) in order to provide additional benefits to those payable from the LGPS.

  • Administering authority

    An administering authority runs a pension fund. Employers pay contributions to the administering authority, who then invest those contributions so there's enough to pay people's pensions from it.

    Glasgow City Council is our administering authority.

  • Annual allowance

    If the value of your pension benefits increases by more than the annual allowance in one year, you may have to pay income tax. Most members won't be affected by this. If you link up previous LGPS service, make large AVCs, receive a pay rise of £10,000+ or are a very high earner, you may be affected. In 2013 /14 the annual allowance was £50,000. It has been £40,000 from 2014/15 and tapering applies from 2016 / 2017 for high earners.