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RetiredLGPS moves to better 60ths rate
In the new-look LGPS you will build up a pension of 1/60th of your final pay for each year and day of your membership after 1 April 2008.
If you would like a lump sum as well as your pension when your benefits are paid you can swap some of your pension for a lump sum.
The example (below) shows that a 1/60th build up rate in the new-look scheme is better than the 1/80th pension and compulsory 3/80ths lump sum that today's scheme provides.
The example is a member retiring at age 65 with 20 years' membership earning
final pay of £20,000.
| Example | |
| Under the old scheme | |
| Pension 1/80 x £20 000 x 20 years | £5 000 |
| Automatic lump sum 3/80 x £20 000 x 20 years | £15 000 |
| Under the new scheme | |
| Pension (no automatic lump sum) 1/60 x £20 000 x 20 years | £6 666 |
| If you give up £1,666 of this pension for an optional lump sum, you get instead: | |
| Pension | £5 000 |
| Lump sum | £19 992 |
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