The Local Government Pension Scheme changed on 1 April 2014 and there are a number of important changes members of the scheme need to be aware of:
- The scheme is moving from “Final Salary” to “Career Average”. This means that for membership up to 31 March 2014, your pension benefits will continue to be based on your pensionable pay (i.e. final salary) over the final 12 months to your last day of service.
For membership from 01 April 2014 it is worked out on a career average basis. This means you build up a pension based on your salary each year which is then revalued rather than being based on the final year’s pensionable pay.
- The accrual rate is changing from 1/60th to 1/49th. This is an improvement for scheme members as each year you build up a pension that’s equal to a 49th of your actual pay.
- Contribution rates are changing for some staff, if you earn over £43,000 you will be paying a higher level of contributions. All your earnings including overtime, allowances etc. are included in that calculation.
- There is a new 50/50 option. You can choose to pay half contribution in return for half the benefits (but you are still entitled to the full level of any death benefits that may become due to your next of kin/estate).
- The normal pension age (NPA) will be linked to the state pension age – minimum age 65. If you retire before NPA the pension will be reduced. If you retire after NPA the pension will be increased.
All current LGPS members will automatically be in the new scheme from 01 April 2014. All the benefits you’ve built up prior to that date are fully protected. For further information you can also visit the LGPS member website.
If you have any questions about your LGPS pension please contact the Pensions team whose contact details are shown below:
7 Newington Barrow Way
Contact telephone numbers:
020 7527 2993 Surname A to D
020 7527 2409 Surname E to K
020 7527 4492 Surname L to Q
020 7527 2167 Surname R to S
020 7527 2800 Surname T to Z
The council maintains a pension fund to finance the scheme benefits built up by scheme members, and is required by the LGPS regulations to publish statements setting out its policies on investment of the fund assets and also on its strategy for achieving full funding. You can find these statements and policies under 'Useful documents' below.
Islington Pension Fund
The Islington Pension Fund (an Excel spreadsheet) is also available below, under Useful Documents.