lgps.org.uk Joining Procedure England : Local Government Pension Scheme

Organization : Local Government Pension Scheme
Type of Facility : Joining Procedure
Location : London
Country: England, United Kingdom

Website : http://www.lgps.org.uk/lge/core/page.do?pageId=100340

LGPS Joining Procedure

The LGPS is a valuable part of the pay and reward package for employees working in local government or working for other employers participating in the Scheme, and for some councillors. It is often viewed as one of the most valuable financial rewards of the job.

Related : Leicestershire County Council Pension Fund View Payslip P60 Online : www.statusin.org/26215.html

You can look forward to your retirement with the LGPS which gives you:
Secure benefits :
the scheme provides you with a secure future income, independent of share prices and stock market fluctuations.

At a low cost to you :
with tax-efficient savings and lower National Insurance contributions for most people under state pension age.

And your employer pays in too :
the scheme is provided by your employer who meets the balance of the cost of providing your benefits in the LGPS.

In Thinking of Joining you can find out about:
** Joining the LGPS: who can join, and how to join.
** Cost of membership: how much it costs you, and the benefits you could receive in return.
** Alternatives to the LGPS

Employees in England and Wales:
To be eligible to join the LGPS you need to be under age 75 and work for an employer that offers membership of the Scheme.

If you start a job in which you are eligible for membership of the LGPS you will be brought into the scheme, unless your contract of employment is for less than 3 months in which case you can opt to join by completing an application form.

If you are brought into the scheme you have the right to opt out. You cannot complete an opt out form until you have started your employment.

On joining the LGPS relevant records will be set up and an official notification of your membership of the LGPS will be sent to you. You should check your pay slip to make sure that pension contributions are being deducted.

You can look forward to your retirement with the LGPS which gives you:
A secure pension :
the benefits you get when you retire are based on the length of your membership in the scheme and your final years pay. The pension you build up during your employment keeps pace with your pay rises. And after you retire, your pension keeps pace with cost of living increases.

Tax-free cash:
you have the option to exchange part of your pension for some tax-free cash on your retirement.

Peace of mind :
your family enjoys financial security, with immediate life cover and a pension for your husband, wife, civil partner or nominated co-habiting partner and children, in the event of your death and, if you ever become seriously ill, you could receive immediate ill-health benefits.

Early retirement :
you can choose to retire from age 60 and receive your benefits immediately, although they may be reduced for early payment. It’s also possible to retire from age 55 and receive your benefits immediately, provided you have your employer’s consent or you are made redundant or retired in the interests of business efficiency.

Flexible retirement:
if you reduce your hours or move to a less senior position at or after age 55 you can, provided your employer agrees, draw some or all of the benefits you have built up – helping you ease into retirement – although your benefits may be reduced for early payment.

Options to pay extra :
you can boost your pension by paying more contributions. You get tax relief on these, too.

Cost of membership – Employees in England and Wales:
You currently pay between 5.5% and 7.5% of the pay you recieve for your contractual hours. The rate you pay depends on which pay band you fall into.

If you work part-time your rate will be based on the whole-time pay rate for your job, although you will only pay contributions on the pay you actually earn.

The band ranges will be increased each April in line with the cost of living.

If you have no contractual hours of employment, contributions are deducted on all the pay you receive (up to the full-time hours for the job).

The real cost is usually even less because pension contributions attract tax relief and National Insurance contributions are normally lower for most people under state pension age.

Your employer pays the balance of the cost of providing your benefits in the LGPS. Every three years an independent review is undertaken to calculate how much your employer should contribute to the scheme.