Local Government Pension Scheme (LGPS) changes effective 1st April 2014
Questions and Answers
What is my pension contribution rate from 1st April 2014? (2014/15)
Actual Pensionable Pay / Gross ContributionUp to £13,500 / 5.5%
£13,501 - £21,000 / 5.8%
£21,001 - £34,000 / 6.5%
£34,001 - £43,000 / 6.8%
£43,001 - £60,000 / 8.5%
£60,001 - £85,000 / 9.9%
£85,001 - £100,000 / 10.5%
£100,001 - £150,000 / 11.4%
More than £150,000 / 12.5%
How can I check my pension contribution rate from 1st April 2014?
The new contribution rates are shown on the main page, or access them via the LGPS 2014 website:
Your pension contribution rate will be shown on your payslip (e.g. ‘P 5.8%’ with P standing for ‘Pension’) with effect from April 2014. However, please note that, if you have more than one post, the contribution rate for each post will be shown. If you have different rates the highest rate will apply to the post for which you are paid the greater salary. If you are still unsure which contribution rate applies to which post, contact Employment Services at the contact details below.
Paylips can be accessed via MyView:
You can also use the LGPS 2014 Contribution Calculator to work out what your monthly contribution will be:
I do not have access to MyView so how can I check my contribution rate?
You are able to access MyView from any computer. From a non-work computer, you need to use this link:
Alternatively, you can access MyView from any Customer First Points which are located around the County, or on your mobile phone. Contact the Employment Services team if you would like assistance with accessing MyView.
I am a Casual worker – how will my pension contribution rate be worked out?
It will be based on the pay you have received for the previous 3 months (if you haven’t been paid every month in the previous 3 months we will calculate an average based on the payments you have received).
What do I do if I think the contribution rate is wrong?
You should contact Employment Services to discuss your situation.
If, following this, you are still dissatisfied with any decision relating to your rights or liabilities under the LGPS, you should refer your complaint in writing to the Head of Treasury & Pensions, Shropshire Council, Shirehall, Abbey Foregate, Shrewsbury, SY2 6ND, within 6 months of the date you were informed of the decision you disagree with. Standard forms and guidelines are available from the Pension Team for this purpose.
My pay has changed - when will my contribution rate change?
If there is any material change to your contract, i.e. change in grade or hours, the banding will be reviewed. Reviews will also be done on a 6 monthly basis to pick up any changes due to additional hours worked. Any changes in contribution rate will be shown on your payslip following the change.
How will the changes affect me?
The LGPS have provided some useful examples which will help you to see how the changes might affect you: .
You can continue to see how your pension benefits build up via your pension’s Annual Benefits Statement. If you were in the scheme on 31st March 2014, you will receive an Annual Benefit Statement later this year from the Pensions team for all service up until that date. No CARE scheme information can be provided in this year’s statement. Benefits Statements from 2015 will show past Final Salary benefits and CARE pension account information.
How will the new 50/50 section scheme work?
It is anticipated that the 50/50 section will be a short term solution, to assist with personal financial management. It means you can opt to pay half pension contributions for a period of time, whilst the employer will still pay 100% contribution. You will build up half the benefit whilst retaining full value of additional scheme benefits such as death in service lump sum and ill health cover.
You can opt into and out of the 50/50 section as often as you wish. The regulations state that you must be a member of the main scheme before opting to the 50/50 section. Any option to join the 50/50 section received after payroll cut-off date will be actioned from the 1st of the following month.
To elect to join the 50/50 section, you will need to complete a form available from HR Employment Services or via
You will be automatically transferred into the main scheme at your employer’s automatic re-enrolment date (for Shropshire Council staff this is 1st February 2016). You would then need to opt back into the 50/50 section if you wished to.
What about my pension that has accrued prior to 1st April 2014?
All benefits built up before April 2014 will continue to be based on your final year’s pay when you leave the scheme, as these benefits were built up in the final salary scheme. That means that all the membership you built up to 31st March 2014 will be based on your final salary when you leave.
Your Normal Pension Age is also protected. This means that the benefits you have built up before 1st April 2014 retain their Normal Pension Age under final salary scheme rules, which for almost all members is age 65.
What contributions will I pay whilst I’m on maternity/paternity/adoption leave? Contributions are payable on the amount that you receive when you move to a period of reduced contractual pay or nil pay during relevant child related leave (i.e. ordinary maternity, ordinary paternity or ordinary adoption leave and any paid additional maternity, additional paternity or additional adoption leave). No contributions are paid during periods of unpaid additional maternity, unpaid additional paternity or unpaid additional adoption leave which are available at the end of relevant child related leave.
Can I make up the missing contributions from periods of unpaid additional maternity/paternity and adoption leave?
If you decide to take a period of unpaid additional maternity leave or unpaid additional adoption leave (usually from week 39 to week 52), or unpaid additional paternity leave, you will not build up pension benefits. You can elect to cover the period of pension “lost” by taking out a Shared Cost Additional Pension Contribution (SCAPC) contract.
Where a SCAPC contract is taken out, the cost is shared 1/3rd to the employee and 2/3rds to the employer, provided that you make an election to buy the “lost” pension within 30 days of returning to work. You can find out more about APCs by contacting the Pensions team (details below).
How is my pension affected when I am on sick leave?
If you are on sick leave, the amount of pension you build up will not be affected.
When you are in receipt of full sick pay, your pension builds up as normal using the pensionable pay you receive. If you have a period of reduced pay or no pay due to sickness, then your pension is worked out using an average of your usual pensionable pay (before the reduction in pay took place).
If you are in the 50/50 section and you reduce to no pay, you will be transferred back into the main scheme with effect from the first pay period after going onto no pay.
How can I top up my pension?
There are two ways of making additional pension savings to increase your pension. These are:
- Additional Pension Contributions (APCs) – where you pay additional contributions to buy an additional amount of pension in the scheme, and
- Additional Voluntary Contributions (AVCs) – AVCs allow you to pay more to build up extra savings for your retirement.
When can I access my pension if I am made redundant?
There is no change to the old scheme rules as to when you can receive your pension if you are made redundant or retire on efficiency grounds.
Can I still take Flexible Retirement?
Yes, the scheme still allows flexible retirement. This is where, with your employer’s consent, you can reduce your hours and/or your pay grade when aged 55 or over and draw some or all of your pension (provided you have met the 2 years’ vesting period in the Scheme) whilst remaining in work.
Does the death in service benefit change?
No. If you die in service whilst an active member of theLGPS, the scheme will still provide a lump sum payment of three times your annual pensionable pay. The scheme continues to provide cover for your family in the event of your death, with pensions for your dependants including spouses, civil partners, eligible cohabiting partners, and eligible children. These benefits are not affected if you are a member of the 50/50 section.
Pensions team (for LGPS queries)
tel: 01743 252130
email:
Website:
HR Employment Services (for payroll related queries)
tel: 01743 252190
email:
For information (including videos), visit which is a national site for LGPS members dealing with the changes to the scheme from 1st April 2014 or the Fund’s own website:
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