The government attempted to appeal this. The government confirmed that the difference in treatment provided by the transitional arrangements will need to be remedied across all public sector pension schemes including the LGPS.
The transitional protection is currently only applied to members in service on 1 April who were within 10 years of their normal retirement age at that date. It has hardly been used because the higher accrual rate has offset the small early retirement reduction for this age group and very few members have received a big pay increase since the new scheme came in. The remedy is that regardless of your age if you were in service before 1 April you will be eligible for the underpin test when they leave or retire.
The Government proposes to end all transitional protection from April After that date the LGPS underpin will not apply for service earned after that date. A member will only know whether they would have been better off in the final salary section in force up to Scotland , or the CARE section that replaced it for future service in the LGPS, when they retire, reach age 65 or leave service. Because of the higher accrual rate in the CARE section many if not most members will not see an improvement of their benefits.
Draft regulations will be consulted on in the autumn. The cost may be much less in the LGPS compared to other public service schemes as all members moved over to the scheme in Scotland and Northern Ireland. The current transitional protection in the LGPS has hardly been need because of the current age group that are protected, the better accrual rate in the CARE section and low pay increases for most members. However, the real cost will be different and probably lower because it assumes that staff will get 4.
The lower the pay increase the less likely the underpin will provide a higher pension. The Government paused cost share as soon as the McCloud Judgement was confirmed in the Court of Appeal so negotiated benefit improvements because of the fall in the cost of benefits at the scheme valuations LGPS Scotland did not come into force.
The Government is now attempting to put the cost of extending the transitional protection into cost share so effectively the members pay for it. Regardless of whether the McCloud costs are included in cost share the LGPS is a funded scheme and employer contributions are determined at fund level. This means any change in cost is likely to be reflected in higher employer contributions. From 1 April in England and Wales, your future pension will be calculated on an average of your future earnings, revalued for inflation, rather than just on your earnings near to retirement.
You only pay contributions on the pay you actually earn. If you have a contract of less than three months you will not be put in the scheme automatically but you do have the right to join if you want to. Check your payslip to see if you are paying in and, if not, contact your employer to see if you can join. About our website Accessibility Cookies Disclaimer Privacy policy. My Pension Online View your pension details and calculate your benefits. My Pension Online. Forms and guides Helpful documents and forms for members of the pension scheme.
Your employer may pay in too. When you join or set up the pension, you will need to decide how and where you want to invest your money. Your pension pot can go up or down because investments can go up or down. When you want to draw your benefits, you can choose from a number of options.
If you have a defined contribution pension, your pension scheme will provide you with details. You can also find out more by contacting Pension Wise , a government service from MoneyHelper.
This is the term used for schemes that invest the contributions they receive. Investment income helps to pay for the pension benefits due. The LGPS is a funded pension scheme. GMPF invests locally and around the globe to generate investment income. The value of our investments can change regularly, but the amounts of pensions we pay are not affected because the LGPS is a defined benefit pension scheme.
If more money is needed to pay all our members pensions then we may ask employers to pay more into the scheme. The main scheme is the default option and is the section you will be enrolled in when you join. Pension Modeller. Lifetime Allowance Quick Check Tool.
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