The current Local Government Pension Scheme (LGPS) will be changing as of 1st April 2014. All pensions in payment or built up before April 2014 will be protected. If you are currently in receipt of a pension or have left with a deferred pension these changes do not affect you. If you are currently a contributing scheme member your pre-April 2014 pension will still be based on final salary when you leave and the current Normal Pension Age.
Costs are being contained and the LGPS provides better value for money than any other pension provision available and significantly cheaper than private sector comparators. This could result in lower payment for some workers.
From April 2014 there is a new contributions banding table, the rate of contributions you pay will be based on your actual pensionable pay and if you get paid non-contractual overtime you will also pay contributions on this pensionable pay. In the new scheme there are 9 different contribution banding rates between 5.5% and 12.5%.
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Posted: 27th November 2013