Local Government Pension Scheme
A new look Local Government Pension Scheme (LGPS) was introduced on the 1st April 2008. The scheme remains a final salary scheme and the normal retirement date remains 65. The scheme other benefits include:-
• An accrual rate of 1/60th scheme membership.
• Death in service payment of three times pensionable pay
• Tiered ill health retirement scheme
The contribution rates for all members are based on the whole time equivalent for the post, which may include additional payments, e.g. shift allowance.
Pension Banding 1st April 2010 - 31st March 2011
||Less than £12,600
||£12,601 - £14,700
||£14,701 - £18,900
||£18,901 - £31,500
||£31,501 - £42,000
||£42,000 - £78,700
Pension Banding 1st April 2011 - 31st March 2012
Please note that these banding rates are subject to review annually and in addition as your pay increases you may automatically move to the next contribution rate.
||Less than £12,900
||£12,901 - £15,100
||£15,101 - £19,400
||£19,401 - £32,400
||£32,401 - £43,300
||£43,301 - £81,100
The implementation of the new pay and grading system may increase or decrease your salary and this may lead to a change in your contribution rate. Further information will be provided by the HR section. However, as a guide, the following information should be taken into account when assessing your contribution rate:
• If you work part time, your contribution rate will be based on the whole time equivalent for the post.
• Term time employees will be assessed on the full time equivalent term time, based on the actual weeks paid for term time only calculations.
• If you work in a second post you will be given a separate assessment of the contribution rate for the separate post.
• In order to be eligible you must have a contract of employment of 3 months or more, however if your contract is extended beyond 3 months you will be able to apply for membership and have this backdated.
Please note that any changes to your whole time equivalent salary may have an effect on your final salary. If your salary is increased your final salary will not be adversely affected but if your pay is reduced there are a number of considerations.
If you are close to retirement or leaving the Authority, you could have your final salary based on the best of the final three years, or you now have the option to base your benefits on the average of any consecutive years pay within the last 10 years of employment based on the 31st March. However there will need to be consideration on whether people split their pension records and take your current pension service based on the higher salary as a deferred pension.
Further details can be found in the All Wales Pension funds factsheet Number 3: ‘Changing your Working arrangements’. This and other details can be found on the Dyfed Pension scheme website at:http://www.dyfedpensionfund.org.uk/English/Pages/home.aspx Page last updated on March 2011
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