New Pensions Scheme

On 1 April 2008 a new LGPS scheme started.  A video which gives you more details can be obtained on request.

Everyone who is eligible for the scheme and is currently an active member has been moved to the new-look LGPS. The new scheme provides a pension of 1/60 of your final years pay for each year of pensionable service from 1 April 2008. You then get the option of of how much of this you want to convert to a lump sum subject to certain tax limits. Benefits gained to 31 March 2008 will continue to be based on 1/80 pension and 3/80 lump sum.

Tiered Contributions
The contributions you pay will change. The table below shows what rate most people will pay.

Band  Range             Contribution rate
1        £0-£12,000              5.5%
2        £12,001-£14,000      5.8%
3        £14,001-£18,000      5.9%
4        £18,001-£30,000      6.5%
5        £30,001-£40,000      6.8%
6        £40,001-£75,000      7.2%
7        More than £75,000    7.5%

If you are one of the people currently paying the protected 5% rate this will increase to 5.25% this year.

Your employer should be providing you with details of how this will affect you.

The Pensions Planning newsletter gives further details. See the link on the right.

Nominated Partners Pensions
Providing you are an active member after 31 March 2008 you can now nominate a co-habiting partner for a survivors pension providing you meet certain criteria. The attached form gives full details.  To make your nomination complete the form on the right and send it to the Pensions Service. If you or your partner have previously been married or in a registered civil partnership you need to take special care to make sure that you have both been free to marry/enter a registered civil partnership for at least 2 years prior to your nomination.

More Information
Several issues are still to be resolved. Once these have been everyone will be circulated with revised scheme details