Introduction
You are enrolled into the local government pension scheme if you are:
- under 75
- not eligible for another public sector pension scheme like the teachers pension scheme or NHS pension scheme.
Pension contributions
Both you and the council pay contributions towards your pension. The amount you contribute is a percentage based on your annual salary.
For example, if you receive £27,500 you will pay 5.8% of your salary into your pension pot.
Pension schemes
The local government pension scheme is a defined benefit CARE scheme. Prior to 1 April 2014, it was a defined benefit final salary scheme.
CARE scheme (1 April 2014 onwards)
CARE stands for Career Average Revalued Earnings. As a council employee you are contractually enrolled into this scheme and make contributions to it.
Your pension benefits are based upon the annual (revalued) contributions you make each year.
Final salary scheme (Up to 31 March 2014)
If you were a member of the local government pension scheme prior to 1 April 2014, some of your pension benefits will be based on your final salary.
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Protection of pension benefits
If you have local government pension scheme benefits built up before April 2014 in the final salary scheme and your pay is reduced, for example due to job evaluation or restructure, protections are in place.
This protection means that if you leave the scheme within 10 years of the reduction, you can choose to have your final pay calculated as the best average of three consecutive years in the 13 year before you leave (adjusted for inflation).
When protection does not apply
This protection does not apply if:
- you are temporarily on a higher salary, for example due to a honorarium, and your salary is reduced at the end of that period
- your pay is reduced due to flexible retirement.