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

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Example:

Here is an example of how benefits are worked out if you have membership from before 31 March 2008 onwards.
 
 

Final Salary Benefits - Membership up to 31 March 2008 = 8 years

(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

(Pension) (Automatic Lump Sum)
6/60th years  x £26,500 = £2,650.00 Nil
 
 

Career Average Pension - 4 years membership from April 2014 (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 £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 are:

 
(Up to
31 March 2008)
(1 April 2008
to 31 March 2014)
(1 April 2014
to 31 March 2018)
Total
Pension £2,650 £2,650 £2,177.46 £7,477.46
Lump Sum £7,950 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.
 
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.