How is my pension calculated?

As of 1 April 2014 your pension builds up in a new way.

The LGPS 2014 remains a defined benefit scheme from April 2014. A defined benefit scheme means that your pension will continue to be worked out using a set formula.

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However, from 1 April 2014 that formula will be different because the Scheme changes from a final salary scheme to a career average scheme:

  • For each year in the new scheme, 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).

Our Jargon Buster may help with pensions terminology.