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Why Join the Scheme?

We are all living longer and need to think about how we are going to fund our retirements. The LGPS makes it easy for you to save for your retirement and will provide an income based on your salary and service. 

Contributions are made direct from your pay and if you are a taxpayer you get tax relief so the cost to you is lower than you think. If you annual pay is £15,000 the actual contribution that you will see on your payslip will be £72.50 but you won't pay tax on this amount so you will save £14.50 in tax.  

If you pay into the scheme then your employer will pay in too, this is a valuable part of your overall employment package.

When you retire a pension will be paid every year for the rest of your life and it will increase each year broadly in line with inflation. At retirement you will have the option of giving up some of your pension in exchange for a tax free lump sum.

While you are a contributing member of the scheme you will be coved by 3 x salary life cover - so a tax free lump sum will be paid in the event of your death. A pension will also be payable to your spouse, civil partner or co-habiting partner for the rest of their life and a pension will also be paid to children up to the age of 18 or age 23 if in full time education.

Are there alternatives?

 There are other alternatives to an occupational scheme such as personal pension plans or stakeholder pensions but it is important to remember that your employer will not ordinarily contribute towards these, and you carry the whole cost. These plans are known as ‘defined contribution’ pensions as the amount of pension at retirement is not known and will depend on stock market investment growth and levels of contributions paid.

The Investment risk is solely undertaken by the plan-holder.

For information on your basic state pension please visit DirectGov.