How are deferred benefits worked out?

Deferred benefits are based on your membership and your final pay on leaving.

Your membership normally includes:

Your membership could be different to your actual calendar length membership of the LGPS. For example:

If you worked part-time, although the calendar length of your membership is used to decide if you are eligible for a benefit, your membership is reduced to its whole-time equivalent length to calculate the amount of your retirement benefits. For example, if you work half time for 10 years, your benefits would be calculated on 5 years membership. If your hours have changed during your membership of the Scheme, your benefits will be calculated to reflect the changes. If you do not have any contractual hours, your membership for each year in the LGPS will be calculated on average weekly hours worked during each year.

Your final pay is generally the pay you paid LGPS contributions on in

Your final pay is based on your full-time equivalent rate of pay.

Annual Pension Calculation

Membership up to 31 March 2008

1/80 x final pay x period of membership


Membership from 1 April 2008

1/60 x final pay x period of membership

Tax Free Cash Lump Sum

Membership up to 31 March 2008

Automatic tax-free cash lump sum

3/80 x final pay x period of membership

Membership from 1 April 2008

No automatic lump sum but current regulations allow you to draw a tax-free lump sum by giving up some of your pension. Each £1 of pension you give up will buy £12 of lump sum. We will supply you with more information when you reach retirement.