The LGPS 2014 is a defined benefit scheme. A defined benefit scheme means that your pension will continue to be worked out using a set formula.
However, from 1 April 2014 that formula is different because the Scheme changed from a final salary scheme to a career average scheme:
- For each year in the new scheme from April 2014, you will build up a pension based on your pensionable pay in that year.
- For each scheme year that you are a member, a pension equal to a 49th of your pensionable pay will be added to your pension account.
- Inflation increases will be added to ensure that your pension account keeps up with the cost of living, which we currently base on Consumer Prices Index (CPI).
- Example of how a pension is worked out from 1 April 2014
- LGPS member website including a pension modeller
- If you have been in the scheme since before 1 April 2014 your benefits up to 31 March 2014 will still be calculated based on your final pensionable pay. Visit the 'How was my pension calculated before 1 April 2014?' page for details.