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RETIREMENT BENEFITS FOR COUNCILLOR MEMBERS
You can retire and receive your LGPS benefits in full once you have attained age 65. The Scheme also makes provisions for the early payment of your LGPS benefits.
The State Pension Age is 65 for men and 60 for women. However, from the year 2020, the Government will have equalised the State Pension Age for both men and women at 65. The increase in the State Pension Age for women will be phased in gradually from the year 2010. The State Pension Age will be increased further from 65 to 68 between 2024 and 2046.
What will I receive from the LGPS when I retire?
When you retire, you will receive a pension and a tax-free lump sum from the LGPS. At State Pension Age you will also receive the basic flat-rate State Pension if you have paid sufficient National Insurance contributions during your working life.
How will my pension be calculated?
The two main factors used to calculate your retirement pension are:
- your total membership in the Scheme, AND
- your career average pay
For each year of your total membership you receive an annual pension based on 1/80th of your career average pay.
How will my lump sum be calculated?
The lump sum automatically paid on retirement is three times your annual pension and is tax-free. Like your pension, it is based on your career average pay and your total membership.
The calculation for the lump sum is 3/80ths of your career average pay for every year of total membership. When you draw your benefits you will be able to exchange some of your pension to receive a bigger tax-free lump sum.
 Example: Councillor Johns
Retiring at 65
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Councillor Johns retires on his 65th birthday with 30 years 204 days membership of the Scheme. His career average pay is £16,200
Total Membership = 30 Years 204 Days
Career Average Pay = £16,200 |
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Councillor Johns' Benefits |
| 1/80 x 30 204/365 x £16,200 |
| = £6,188.18 Annual Pension |
| 3/80 x 30 204/365 x £16,200 |
| = £18,564.53 Lump Sum |
How will my pension be paid?
Monthly pension payments will be made direct into your bank or building society account. Similar arrangements can also be made to pay your pension into your account should you move abroad. Further information regarding payment of pensions is provided on retirement.
Will my pension increase?
After age 55, members’ pensions in payment will be increased each year in line with the Retail Prices Index. If you retire before age 55, the accumulated effect of inflation since you retired will be added to your pension when you reach age 55.
