The Cheshire Pension Fund is part of a nationwide pension scheme called the Local Government Pension Scheme (LGPS). The pension fund administers the LGPS for the local authorities in Cheshire together with a number of other bodies in the fund such as Colleges, Leisure Organisations and Housing Trusts.
For more information the Cheshire Pension Fund scheme booklet can be downloaded from the following link:
- LGPS Scheme Booklet – concise version (PDF 181KB)
- LGPS Scheme Booklet – full version / forms (PDF 887KB)
As a member of the LGPS you belong to a scheme which provides high quality pension benefits based on your final, whole time equivalent pay and your actual scheme membership.
The information presented is based on the latest Local Government Pension Scheme Regulations issued in 2013. However, it is only a guide to the scheme and cannot override the regulations or provide a detailed interpretation of the Regulations as they will apply to you.
This section is designed to give you the basic facts about the Scheme – the features, benefits and rules that apply to you and the different circumstances you may encounter during your membership. The pension is an important part of your overall remuneration package from your employer and you will find it difficult to provide the same level of benefits at the same cost if you decide to arrange your own pension in some other way.
The main benefits of the Scheme are:
- A guaranteed pension based on 1/49th of your actual salary for each year of membership
- The option to give up some of your pension and take a lump sum
- Flexible retirement options
- Death in service cover whilst in employment
- Pension for your spouse/civil partner/cohabiting partner and dependant children.
The basic structure of the Scheme is based on a Career Average Revalued Earnings (CARE) scheme, but is calculated on 1/49th of your actual pay for each year of membership. We calculate a pension for each year you are in the scheme, and this is then added to your pension account. Each yearly pension figure is then increased in line with inflation, and when you retire all your pension pots are added together and become payable. The old Scheme membership built up prior to April 2014 is calculated on a final salary basis at 1/60th of your final pensionable pay. Scheme membership built up prior to April 2008 is also calculated on a final salary basis at 1/80th of your final pensionable pay, and includes an automatic tax free lump sum.
How were the benefits calculated before 1 April 2008?
Benefits built up before 1st April 2008 are calculated as follows:-
Annual Pension = Final Pensionable Pay x Scheme Membership / 80
Plus a lump sum equal to three times the annual pension.
This ensures that all benefits earned in the Old Scheme will maintain its value in the New Scheme.
How are the benefits built up from 1 April 2008 up to 31 March 2014?
Benefits built up from 1st April 2008 consist of a larger annual pension with no automatic lump sum and are built up as follows:-
Annual Pension = Final Pensionable Pay x Scheme Membership / 60
How are the benefits built up after 1 April 2014?
Benefits built up from 1st April 2014 will be calculated on an annual basis and added to your pension account. The end of the pension year is 31st March each year, and the benefits are calculated as follows:-
Annual Pension = Actual salary / 49
When the pension is calculated at 31st March, it is stored in your pension account and revalued every year in line with inflation. You will then start a new year which will be calculated based on the pay you receive up to 31st March. When you retire all the yearly pensions you have accrued (included pensions increase) are added together and paid to you as a pension, which continues to increase in line with inflation for as long as it is payable.
If you require any further information on the Scheme, do not hesitate to contact us either by writing, telephoning the helpline, by completing the online enquiry form or by sending an email.