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Local Government Pension Scheme LGPS (NI) 2015

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The key features of the Scheme are outlined below:

  • From April 2015 the Scheme is based on a career average revalued earnings (CARE) model, instead of final salary
  • The pension accrual rate increases from 1/60 to 1/49
  • The annual revaluation rate is linked to the Consumer Price Index
  • The normal pension age for the CARE scheme is now the same as the member’s state pension age (minimum of age 65) meaning that it will be different for everyone
  • The pay bands for member contributions are now based on actual earnings rather than the whole-time equivalent pensionable pay.  Therefore a part-time member who earns £15,000 per year will pay 5.5%. The new pay bands for 2020/21 are:
  •  Pensionable Pay

    Contribution Rate

    £0 - £15,000
    £15,001 - £22,900
    £22,901 - £38,300
    £38,301 - £46,400 6.8%
    £46,401 - £91,900 8.5% 
    More than £91,900 10.5%

  • Members must now have two years membership to be eligible for a pension.  Refunds will be available for those leaving the Scheme with less than two years membership.
  • The amount of additional pension that an employer can award to an active member is increased to £7,127 (2020/21).  This limit will then increase each year in line with pension increase orders.
  • The exchange of annual pension for lump sum rate remains at 12:1 i.e. £12 of lump sum for every £1 of pension given up
  • There are no changes to survivors’ benefits
  • Ill-health benefits continue to be a two tier system
  • There will be no changes to how AVCs will operate in the new Scheme.  This means that you can take up to 100% of your AVC fund as a tax-free lump sum at retirement (subject to tax limits) and AVC contributions will continue to be restricted to 50% of your pensionable pay.

    To view the regulations visit our Document Library