Planning Your Retirement - THE LOCAL GOVERNMENT PENSION ...

LGPSRetirementBenefitsYour LGPS retirementbenefits are made up of:• An annual pensionpaid monthly, and• An automatic tax-freelump sum paid onretirement. (Onlyautomatic for memberswith membershipbefore 1 April 2008)The two main factors usedto calculate your retirementbenefits are:• Your membership inthe Scheme, and• Your final payNew-look SchemeIntroduced 1 April 2008On 1 April 2008 a new-look LGPSwas introduced and all memberswho were paying into the Schemeon 31 March 2008 automaticallybecame members under the newScheme and had the benefits inrespect of their membership before1 April 2008, banked, based onthe rules under the old Scheme’.For each year of old Scheme’membership your retirementbenefits will be based on 1/80 thof your final pay – so if you had40 years membership up to31 March 2008 you would get40/80 th or one half of your finalyears pay as an annual pension,plus an automatic lump sumof three times your pension atretirement. (See page 13 for waysto increase your tax free lump sum).For each year of new Scheme’membership, your retirementbenefits will be based on 1/60 thof your final pay – so if you have6 years membership from1 April 2008, you will get 6/60 thor one tenth of your final years payas an annual pension. Althoughthere is no automatic lump sum,you can elect to give up part of yourpension to increase your tax-freecash at retirement. (See page 13).7