How is my LGPS pension calculated?

you are saving for an income in retirement that is payable for life
the annual pension that you build up is based on a set formula and not based on your or your employer's contribution amount
for members who have previous LGPS pension up to 31 March 2014, that proportion of your pension is calculated based on a Final Salary scheme using the leaving salary for the job (or potentially a later job, if the jobs are aggregated together)

Career Average Revalued Earnings (CARE) scheme

The amount of annual pension that you build up, from 1 April 2014, is known as a Career Average Revalued Earnings (CARE) scheme.

Your CARE pension is built up annually (1 April - 31 March) and calculates an annual pension using the formula:

Tom earns £25,000 in a year. His annual pension is calculated as follows:

£25,000 x 1/49 = £510.20 per annum

Inflation is added each scheme year (1 April - 31 March)

The table below is an example:

Start Date	End Date	Opening Balance	Pensionable Pay	Pension Accrued	Closing Balance	Inflation	Total Annual Pension
01/04/2021	15/02/2022	£1,034.22	£25,000.00	£510.20	£1,544.42	3.1	£1,592.29
01/04/2020	31/03/2021	£518.87	£25,000.00	£510.20	£1,029.07	0.5	£1,034.22
01/04/2019	31/03/2020	£0.00	£25,000.00	£510.20	£510.20	1.70	£518.87

This pension is paid each year from Normal Retirement Age (your State Pension Age) until date of death.

Your annual pension is increased each year in line with Cost of Living (CPI) inflation.

Log on to your My Wiltshire Pension online account to see how your LGPS pension has been calculated under the 'Your Current Pension' section.

There is a CARE pension table that shows how your annual pension has been building up each scheme year, including inflation.