Changes to the Local Government Pension Scheme (LGPS) for employees in England and Wales were introduced from 1 April 2014.
If you were already paying into the LGPS on 31 March 2014, you were automatically transferred to the new Scheme on 1 April 2014.
The main differences between the 2014 and 2008 Schemes are listed below.
|LGPS 2014||LGPS 2008|
|Basis of pension||Career Average Revalued Earnings (CARE)||Final Salary|
|Revaluation Rate||Treasury Revaluation Order (CPI)||Based on Final Salary|
|Pensionable Pay||Pay includes non-contractual overtime additional hours worked||Pay excludes non-contractual overtime non-pensionable additional hours|
|Contribution rates||9 contribution bands||7 contribution bands|
|Contribution Flexibility||50/50 section||None|
|Normal Pension Age||Equal to member’s State Pension Age||Age 65|
|Earliest Voluntary Retirement Age||Age 55||Age 60|
|Vesting Period||2 years||3 months|
The Scheme also changed in 2008. If you were in the LGPS on 31 March 2008, you were automatically transferred to the new Scheme on 1 April 2008. To view a comparison of the 1997 and 2008 Schemes please click here.