Building a pension
Since 1st April 2014 you will accrue pensionable benefits in a different way, and although the scheme remains a defined benefit scheme and will continue to be worked out using a set formula.
Your pensionable pay is based upon what you pay pension contributions on, and shall be your actual pensionable earnings.
- For each year in the new scheme, you will build up a pension based on the pensionable pay in that year.
- For each scheme year that you are a member, a pension equal to a 1/49th of your pensionable pay will be added to your pension account.
- Inflation will be added annually to ensure that your pension account keeps up with the cost of living (CPI).
What is included in your CARE pay?
Everything that was pensionable prior to 31/03/2014 has remained pensionable into the CARE scheme. However, all overtime is now pensionable and will be included in the CARE pensionable pay.
LGPS Website Pension Account Modeller
By clicking on the LGPS 2014 logo below, you shall be forwarded to a pension account modeller. This will provide you with an estimate of how much pension you may build in the future and a detailed outline of how they are accrued over time.
The modeller allows you to play around with various figures to see what pension benefits you would be building over the years by inputting various pay details and retirement dates.
How do I use the modeller?
Drag the slider to choose the pay figure you wish to use. This will be the actual amount you would expect to earn in a scheme year (1 April to 31 March), including pay for all overtime and excess hours worked.
Drag the slider to choose an inflation figure (between 0% and 5%). This is an assumed figure only. The figure that will be used to work out your benefits in the future will depend on the Consumer Prices Index (CPI) measure of inflation each year.
Drag the slider to choose an assumed pay increase in the future (between 0% and 5%). This is to help illustrate how possible future pay increases might impact on your pension in the LGPS.
Years in LGPS
Select the number of years you expect to be in the new LGPS from April 2014 (minimum is 2 years - because that is the vesting period or period of time you need to build up a pension in the new scheme, the maximum you can input is 50 years - however there is no limit to the number of years you could have in the Scheme except that you can only remain in the scheme up to your 75th birthday).
Select 'Yes' if you wish to see the impact of being in the 50/50 section for the number of years you selected in 'years in LGPS'.