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A Simple Guide to the Local Government Pension Scheme PDF logo 2869kb

A History of the Local Government Pension Scheme - Changes in membership & benefits 1922 - 1995

1922 - Local authorities with 50 or more employees could adopt the Scheme

  • Membership was voluntary and the contribution rate was 5%
  • Pension only based on 1/60th of the average of the last 5 years pay for each year of membership
  • No lump sum or spouses pension
  • 1937 - Compulsory membership for administrative staff

  • Contribution rate increased to 6% for new members from 1 April 1939
  • 1939 - Manual workers able to join if the local authority passed a resolution

    1954 - Introduced changes to benefits (retrospective to 1950)

  • Widow’s pensions and lump sums introduced
  • Pension now based on 1/80th of the average of the last 3 years pay for each year of membership
  • Lump sum for women & single men based on 3/80ths of the average of the last 3 years pay for each year of membership
  • Lump sum for married men based on 1/80th of the average of the last 3 years pay for each year of membership
  • Widow’s pension based on one third of the husband’s pension
  • Member’s subject to the 60th pension could elect for the new benefits
  • 1973 - Compulsory membership for manual workers introduced

    1974 - Introduced changes to benefits (retrospective to 1972)

  • Lump sum for women & single men based on 3/80ths of the best of the last 3 years pay for each year of membership
  • Pension now based on 1/80th of the best of the last 3 years pay for each year of membership
  • Lump sum for married men based on 1/80th for each year of membership before 1 April 1972 and 3/80ths for each year of membership after 1 April 1972 of the best of the last 3 years pay
  • Widow’s pension based on one half of the husband’s pension
  • Children’s pensions introduced
  • Member’s subject to the 60th pension could elect for the new benefits
  • Membership compulsory for whole-time and term-time (30+ hours and 45+ weeks per year) employees
  • 1987 - Part-time employees (15 - 30 hours) and term-time (less than 45 weeks per year) could opt into the Scheme (retrospective to 1986)

    1988 - Compulsory membership abolished, new members have to elect to join

    1990 - Whole-time employees automatically entered into the Scheme unless they opt out

  • Term-time and part-time employees still have to opt in
  • 1993 - Part-time employees (up to 15 hours) can now opt into the Scheme.

    1995 - Scheme membership is now automatic for all new employees except casual employees. Casual employees can elect to join

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