The LGPS (Scotland) is a statutory defined benefit scheme; changes to the scheme can only be made through legislation laid down by the Scottish Government. The scheme was contracted out of the earnings related part of the state scheme until 5 April 2016 and revalues GMP at the full rate. The following shows the scheme basis, accrual rates and NPA for each set of regulations with a link to the full regulations.
Earliest retiral without reduction
Lump sum 3/80ths
Between age 60 and 65 when notional membership amounts to 25 years
60 or over +25 years membership
Lump sum 3/80ths
Over age 60 when age and membership together adds up to 85 or more
No automatic lump sum but can given up pension for lump sum at 12:1
Over age 60 when age and membership together adds up to 85 or more if in scheme before 1/12/2006, otherwise age 65.
CARE (but see below)
1/49th of actual pensionable pay per year
Equal to New State Pension Age.
65 unless has transitional protection if a member before 1/4/2015
Anyone who was a member on 31 March 2015 and remained a member on 1 April 2015 will have transferred to the new Career Average Revalued Earnings (CARE) scheme. Such members retain a final salary link for their pre-1 April 2015 membership. The final salary used is the "final pensionable pay" at date of leaving the scheme. Final pensionable pay is the average pay based over a year rather than actual rate of pay on leaving and means the best in the last three years of working.
Anyone joining the scheme from 1 April 2015 joins the current scheme. The earliest retirement date for a member to retire voluntarily is age 60 if they left the scheme before 1 June 2018 and reductions may apply. Members leaving the scheme after 31 May 2018 can take payment of their pension from age 55 but a reduction will apply. You can find information on the current scheme in our Guide to the LGPS. The booklet includes tables showing actuarial reduction factors which may apply to early retirements.
The scheme is funded by employer and member contributions as well as investments. You can find information on the Funding of the scheme and our Actuarial valuation in our Reports section.