Pre 01/04/2014 Membership – Final Salary Scheme
If a member joined the LGPS before 1 April 2014, they will have membership in the final salary scheme, and this is calculated in terms of calendar length, and prorated for part-time service. The ‘Final Salary’ scheme includes all earnings up to 31/03/2014, split into two different tranches of membership:
- Service prior to 01/04/2008, a benefits accrual rate of 1/80th is applied and the member receives an automatic lump sum of three times their annual benefits.
- Service 01/04/2008 – 31/03/2014, a benefits accrual rate of 1/60th is applied, but there is no automatic lump sum.
Career Average Revalued Earnings (CARE) scheme became effective from 1st April 2014 and replaced the final salary scheme. In this scheme, member benefits are directly linked to their actual pay.
- The accrual rate is 1/49th and each year the accrual rate is applied to each members’ actual earnings, and the amount is banked. Each year, on 1st April, pension pots are revalued in line with inflation.
- The accrual rate becomes 1/98th if the member has elected to be in the 50/50 section of the LGPS. The 50/50 section gives you the option of paying half the standard rate of contributions in return for half the amount of pension, while still retaining your full ill-health and life cover.
The guidance documents provide further information about regulations and calculations of these benefits. If you have any further questions, please email firstname.lastname@example.org