How benefits are worked out if you have membership from before 31 March 2008 onwards

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Example:

Simon joined the LGPS on 1 April 2000 and has:
 
  • a total of 8 years membership up to 31 March 2008
  • a total of 6 years membership from 1 April 2008 to 31 March 2014
  • a total of 4 years membership from 1 April 2014 until he retires at age 65
  • A final year’s pay of £26,500 for benefits in the final salary scheme
 
 

Final Salary Benefits - Membership from 1 April 2000 to 31 March 2008 = 8 years

(Pension) (Automatic Lump Sum)
8 years x £26,500/80 = £2,650 £2,650 x 3 = £7,950
   
   

Final Salary Benefits - Membership from 1 April 2008 to 31 March 2014 = 6 years

(Pension) (Automatic Lump Sum)
6 years  x £26,500/60 = £2,650 Nil
 
 

Career Average Pension - Membership from April 2014 to date of leaving (In main section of LGPS throughout)

 
Year
Opening Balance
Pension built up in that year
Total
at 31 March
Cost of Living
Updated
Total Amount
1 £0 £25,200/49 = £514.29 £514.29 £10.28 (2%) £524.57
2 £524.57 £25,700/49 = £524.49 £1,049.06 £10.49 (1%) £1,059.55
3 £1,059.55 £26,000/49 = £530.61 £1,590.16 £7.95 (0.5%) £1,598.11
4 £1,598.11 £26,500/49 = £540.82 £2,138.93 £42.78 (2%) £2,181.71
 

Simon's total LGPS benefits are:

 
 
(Up to
31 March 2008)
(1 April 2008
to 31 March 2014)
(1 April 2014
to date of leaving)
Total
Pension £2,650 £2,650 £2,181.71 £7,481.71
Lump Sum
£7,950
(Automatic)
No Automatic Lump Sum* No Automatic Lump Sum* £7,950
 
*You can exchange some pension to get a tax-free cash lump sum. For every £1 of pension you give up you will get £12 of tax-free lump sum (subject to HM Revenue and Customs limits). There is an automatic lump sum payable for membership up to 31 March 2008.