Election to Change Sections of the LGPS

The Local Government Pension Scheme (LGPS) allows you to save while you are working in order to enjoy a pension once you retire. It is one of the best occupational pension schemes in the UK.  The LGPS is provided by your employer who meets a large part of the cost of providing the range of secure benefits, so it is a valuable and important part of your employment package.

However, it may be that for your own personal reasons, you wish to reduce or increase your contributions to the scheme.

The LGPS has two sections: the Main Section and the 50/50 Section.

Both sections offer:

  • A pension that is secure and backed by law
  • A Career Average pension with a guaranteed level of retirement benefit
  • The option to exchange part of your pension for a tax-free lump sum on retirement
  • Voluntary retirement from age 55 (even though the scheme retirement age is State Pension Age or 65 if later)
  • An ill health pension from any age (which could be paid at an enhanced rate if ill health meant that you are incapable of gainful employment within three years of leaving)
  • Early payment of pension benefits if you are made redundant or retire on grounds of business efficiency at age 55 or over
  • The ability to take benefits from age 55 with your employer's consent if you continue in employment, but reduce your hours or grade, helping you ease into retirement (Flexible Retirement)
  • A death in service lump sum of three times your actual pay
  • Protection for your family on death, including either a widow's, widower's, civil partner's or cohabiting partner's pension as well as children's pensions
  • The index-linking of benefits to ensure they keep pace with the cost of living
  • The contributions you pay into the scheme attrat tax relief

None of these benefits are affected by a decision to move between Sections of the LGPS.

However, if you do elect to change Sections, your own pension benefit would be affected as shown below:

Main Section

A member earing £10,000 per year pays into the Main Section of the Scheme.

They pay contributions at a rate of 5.5% - this equates to a gross monthly deduction from their pay of £45.83.

If they remain a member of the Main Section for 1 year, they would build up the following amount of pension:

Pension = 1/49 x £10,000 = £204.08

 50/50 Section

A member earing £10,000 per year pays into the 50/50 Section of the Scheme.

They pay contributions at a rate of 2.75% - this equates to a gross monthly deduction from their pay of £22.92.

If they remain a member of the Main Section for 1 year, they would build up the following amount of pension:

Pension = 1/98 x £10,000 = £102.04

A member paying into the 50/50 section is not able to pay Additional Pension Contributions (APCs) except to cover authorised absence (for example Maternity Leave).

Please read the PDF DocumentNotes on Changing Sections of the Scheme (275 KB) before completing the form below:

  • Name
  • I wish to join: