March 2014 - LGPS 2014 - Main Provisions of the new scheme
The information below shows the main provisions of the new Local Government Pension Scheme (LGPS 2014) from 1 April 2014 compared with those of the LGPS 2008 Scheme.
Basis of Pension
In the LGPS 2014 scheme:
Career Average Revalued Earnings (CARE)
In the LGPS 2008 scheme:
Final Salary
Accrual Rate
In the LGPS 2014 scheme:
1/49th
In the LGPS 2008 scheme:
1/60th
Revaluation Rate
In the LGPS 2014 scheme:
Consumer Prices Index (CPI)
In the LGPS 2008 scheme:
Based on Final Salary
Revaluation Rate
In the LGPS 2014 scheme:
Consumer Prices Index (CPI)
In the LGPS 2008 scheme:
Based on Final Salary
Pensionable Pay
In the LGPS 2014 scheme:
Pay including non-contractual overtime and additional hours
In the LGPS 2008 scheme:
Pay excluding non-contractual overtime and non-pensionable additional hours
Employee Contribution Rates
In the LGPS 2014 scheme:
| Pay Band(£) | Rate |
|---|---|
| Up to 13,500 | 5.5% |
| 13,501-21,000 | 5.8% |
| 21,001-34,000 | 6.5% |
| 34,001-43,000 | 6.8% |
| 43,001-60,000 | 8.5% |
| 60,001-85,000 | 9.9% |
| 85,001-100,000 | 10.5% |
| 100,001-150,000 | 11.4% |
| Over 150,000 | 12.5% |
In the LGPS 2008 scheme:
| Pay Band(£) | Rate |
|---|---|
| Up to 13,700 | 5.5% |
| 13,571-16,100 | 5.8% |
| 16,101-20,800 | 5.9% |
| 20,801-34,700 | 6.5% |
| 34,701-46,500 | 6.8% |
| 46,501-87,100 | 7.2% |
| Over 87,100 | 7.5% |
Contribution Flexibility
In the LGPS 2014 scheme:
Yes, members can pay 50% contributions for 50% of the pension benefit
In the LGPS 2008 scheme:
No
Normal Pension Age
In the LGPS 2014 scheme:
Equal to the individual member's State Pension Age
In the LGPS 2008 scheme:
65
Lump Sum Trade Off
In the LGPS 2014 scheme:
Trade £1 of pension for £12 lump sum
In the LGPS 2008 scheme:
Trade £1 of pension for £12 lump sum
Death in Service Lump Sum
In the LGPS 2014 scheme:
3 x Pensionable Pay
In the LGPS 2008 scheme:
3 x Pensionable Pay
Death in Service Survivor Benefits
In the LGPS 2014 scheme:
1/160th accrual based on Tier 1 ill health pension enhancement
In the LGPS 2008 scheme:
1/160th accrual based on Tier 1 ill health pension enhancement
Ill Health Provision
In the LGPS 2014 scheme:
- Tier 1 - Immediate payment with service enhanced to Normal Pension Age
- Tier 2 - Immediate payment with 25% service enhancement to Normal Pension Age
- Tier 3 - Temporary payment of pension for up to 3 years
In the LGPS 2008 scheme:
- Tier 1 - Immediate payment with service enhanced to Normal Pension Age (65)
- Tier 2 - Immediate payment with 25% service enhancement to Normal Pension Age (65)
- Tier 3 - Temporary payment of pension for up to 3 years
Indexation of Pension in Payment
In the LGPS 2014 scheme:
CPI
In the LGPS 2008 scheme:
CPI (RPI for pre-2011 increases)
Vesting Period
In the LGPS 2014 scheme:
2 years
In the LGPS 2008 scheme:
3 months
Further information can be found on the LGPS Members Site.