How a pension is worked out if you joined the LGPS before 1 April 2014

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Example:
Sandra 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 she retires at age 65
  • A final year’s pay of £26,500 for benefits in the final salary scheme
 
Final Salary Benefits - Membership up to 31 March 2008 = 8 years
 
Annual Pension Automatic Lump Sum
8/80ths x £26,500 = £2,650
3 x 8/80ths x £26,500 = £7,950
 
 
Final Salary Benefits - Membership from 1 April 2008 to 31 March 2014 = 6 years
 
Annual Pension Automatic Lump Sum
6/60ths x £26,500 = £2,650
Nil
 
Career Average Pension - Membership from 1 April 2014 = 4 years (In main section of the 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
£6.17 (1.2%)
£520.46
2
£520.46
£25,700/49 = £524.49
£1,044.95
£10.45 (1%)
£1,055.40
3
£1,055.55
£26,000/49 = £530.61
£1,586.01
£7.93 (0.5%)
£1,593.94
4
£1,598.11
£26,500/49 = £540.82
£2,134.76
£42.70 (2%)
£2,177.46
 
Total LGPS Benefits
 
Benefit Up to 31 March 2008 1 April 2008 to 31 March 2014 1 April 2014 to 31 March 2018 Total
Annual Pension
£2,650
£2,650
£2,177.46
£7,477.46
Lump Sum
£7,950
Nil*
Nil*
£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.
 
If you transferred previous non-LGPS pension rights, or pension rights from the LGPS in Scotland or Northern Ireland, into your current membership, then the revalued amount of the pension benefits bought by the transfer will be added to the retirement benefits as calculated above.