What are the key benefits?

What are the key benefits?

Tax relief

As a member of the LGPS, you receive tax relief on the contributions that you pay. 

Flexibility to pay more or less contributions.

You can boost your pension by paying more contributions, which you would get tax relief on. You can also pay half your normal contributions in return for half your normal pension. This is known as the 50/50 section of the Scheme, but you must join the main scheme before then moving to this section. 

Retirement benefits

Once you have met the two-year qualifying period, you can retire from office and elect to take your pension. Benefits paid before your state pension age will be paid at a reduced rate. When you retire you can look forward to a pension payable for life that increases each year in line with the cost of living. You also have the option to exchange part of your pension for tax-free cash when you take it.

You can take up to 25% of the value of your pension benefits as a tax-free lump sum. For every £1 of annual pension you give up, you will receive £12 as a lump sum. The lump sum paid tax-free is restricted to a limit of £268,275 across all your UK pensions.

The Government has announced that the earliest age you can take your pension will increase from the current age 55 to 57 from April 2028. The LGPS regulations have not yet been amended to reflect this change.

Death Benefits

There is financial security for your family, with immediate life cover and a pension for your spouse, civil partner or eligible cohabiting partner and eligible children if you die in service. If you become seriously ill and you have met the two-year qualifying period, you could receive your pension straight away.