Members
The Local Government Pension Scheme (LGPS) is a valuable part of the pay and reward package for employees working in local government or working for other employers participating in the scheme.
As a member of the LGPS, you receive tax relief on the contributions that you pay plus you have the option when you draw your pension to exchange part of it for tax-free cash.
The LGPS is a great way to save for your future. You build up a pension from the day you join the Scheme and once you've been paying in for 2 years your benefits include:
- A pension based on your pay and period of membership. Every scheme year (1 April to 31 March) an amount equal to a 49th of your pay in that year is added to your pension account.
- A pension that increases each year in line with the consumer price rises.
- Enhanced pension if you have to stop work permanently because of ill health.
- Life Assurance cover of three times your care pay from the first day you join the Scheme.
Both you and your employer pay contributions to pay for your LGPS pension. How much you pay depends on how much you earn. Islington Council's payroll team will assess employees’ pensionable earnings each pay period (monthly) to determine which band an employee is placed, in accordance with the council’s Employee Contribution Banding Policy.
Employee Contribution Banding policy
To place employees in the correct banding for LGPS pension deductions, we have set out the following guidelines.
- The payroll team will assess employees’ pensionable earnings each pay period (monthly) to determine which band an employee is placed in. The payroll team will then apply that banding to ensure the employee’s contribution rate reflects the correct banding. This means an employees’ contribution band could change depending on their pensionable pay that pay period.
- Part-time employees actual pensionable pay will be used rather than their full-time equivalent salary.
- Any reductions in pensionable pay due to sickness, child-related leave, reserve forces service leave or other absence from work will be disregarded when assessing / reviewing the appropriate band.
- Any lump sums or retrospective payments covering more than one pay period, or any payments not paid every pay period will be excluded from the banding assessment.
- LGPS amends the bandings annually at 1 April and the payroll team will update the employee payroll each year to reflect the latest change.
How to increase your pension benefits
The LGPS provides valuable benefits for you and your family. As a member of the LGPS there are two ways of increasing your pension benefits in addition to the benefits you are already building up. These are additional pension contributions (APCs) and additional voluntary contributions (AVCs)
Additional pension contributions (APCs)
If you are in the main section of the LGPS, you can pay APCs to increase your pension at retirement or to cover lost pension due to authorised unpaid leave. The APCs you make will buy you an additional amount of extra pension in retirement. You can choose to pay for the extra pension by spreading the payment of the APCs over a number of complete years or by paying a lump sum.
Additional voluntary contributions (AVCs)
When you save AVCs, you build up a pot of money which is invested and used to provide additional income to your LGPS benefits. Islington Council's current AVC provider is Prudential.
New Shared Cost AVC scheme
Islington Council has partnered with My Money Matters, to offer a new Shared Cost AVC scheme for current council employees who pay into the LGPS.
This is a cost-efficient way to top up your pension pot, providing flexibility, security and value. One of the main benefits of topping up your pension via the council's AVC scheme is that you will make savings in income tax and National Insurance contributions on the money paid into your pension pot. You’ll also have the option to amend your contribution amount as and when you need to.
To find out more, visit the My Money Matters website.
Deferred members
If you leave your job before retirement or stop paying contributions to Islington Council Pension Fund (ICPF) before your normal pension age (NPA), the pension you have accrued may give you a deferred benefit entitlement in ICPF.
Your deferred benefit is made up of an annual pension payable for life. In additional, for members with pensionable service prior to 1st April 2008 an automatic tax free lump sum.
You can choose to take early payment of your deferred benefits subject to reductions from age 55. You do not need your former employer’s consent to take your pension before your NPA, as long as you have left the employment from which the benefit relates.
Exceptions
You won’t be entitled to a deferred benefit if you:
-
were a member for less than 2 years (or less than 3 months if you left between 1 April 2004 and 31 March 2014)
-
and don’t hold any other LGPS benefits in England or Wales.
Instead, you’ll usually be entitled to a refund of your contributions, less any deductions for Tax and National Insurance. If you would like to know more please contact the Pensions Office.
For more information, email pensions@islington.gov.uk
| Surname | Phone |
|---|---|
| A -G |
020 7527 2028 020 7527 2993 |
| H - M |
020 7527 2849 020 7527 2409 |
| N - P |
020 7527 4492 020 7527 2710 |
| Q - Z |
020 7527 2320 020 7527 2167 |
More information about the Local Government Pension Scheme is available on the LGPS members website. This includes a wide range of information about what benefits are available to you if you are a member and when they become payable.