If you have scheme membership both before and after 1 April 2014 please follow the attached link to see how your Pre April 2014 benefits are calculated. Members with Pre-2014 LGPS Membership.
Post April 2014 Calculation
Each year you are a member of the Scheme you will build up a yearly pension account. This means each year we will take your earnings and multiply them by 1/49th and this will be the amount of pension you build up for that year. This yearly pension account will then be increased each year by the Consumer Price Index up to your retirement date. We then repeat this calculation for each year you are a member of the LGPS.
A member who earned £15,000 from 1/4/2014 – 31/3/2015 will accrue 1/49th of that pay towards their pension i.e. £15,000 x 1/49 = £306.12
In the table below the member earns £15,000 in the year 2014/15. Assuming an annual pay increase of £500 and an inflation increase of 3% each year, at retirement on 31/03/2019 the pension benefits payable will be £1730.39.
|CPI Revaluation @ 3% per year|
|Year||Pensionable Pay||Pension Accrued||Plus CPI||Plus CPI||Plus CPI||Plus CPI|