Prior to 1 April 2014, the LGPS was as a Final Salary scheme.
Calculating final salary
The calculation for the final salary part of the Scheme is Final Pay x Service x Accrual Rate = Pension Total.
Final Pay is usually the pensionable pay (or full time equivalent if you are part time) earned in the year prior to leaving the scheme, however, one of the two previous years' pay can be used if higher (and sometimes other protections may apply).
Service is how long you have been a member of the LGPS in years and days up to 31March 2014. Your service is adjusted proportionally if you worked part-time. This can also include transferring benefits from another scheme.
Accrual Rate is a fraction of your pensionable pay and is dependent on the time you were contributing to the LGPS. There were two different accrual rates at different points in time (as explained below)
There are two different final salary calculations depending on when you joined:
Membership between 1 April 2008 and 31 March 2014
For membership built up between 1 April 2008 and 31 March 2014, you receive a pension of 1/60th of your final pay for every year of membership you have built up as a pension.
Find out more information via the LGPS Member site 2008-2014.
Membership up to 31 March 2008
For membership built up to 31 March 2008 you receive a pension of 1/80th of your final pay plus an automatic lump sum of 3 times your annual pension (built up to 31 March 2008) for every year of membership you have built up.
Find out more information via the LGPS Member site pre-2008.
Example
Tom contributed to the LGPS between 1 April 2006 to 31 March 2014 and worked full time, with a final salary of £20,000 a year.
Membership up to 31 March 2008
1/80 x £20,000 x 02/000 (Years/Days) = £500
Membership between 1 April 2008 and 31 March 2014
1/60 x £20,000 x 06/000 (Years/Days) = £2,000
Total annual pension built up: £2,500
Total Automatic Lump Sum (pre-2008): £1,500
Working part-time
If you worked part-time your service is reduced accordingly.
For example, if you worked 18.5 hours per week and the whole-time equivalent hours for the job were 37 hours per week, your service will be reduced by 18.50/37.00 which is half.
How to view your final salary pension
My Wiltshire Pension will have a breakdown, located in the Your Current Pension section, that shows how much annual pension you have built up in the Final Salary scheme (if applicable) and the CARE scheme (post 1 April 2014). The automatic tax-free lump sum will also be visible for members of the scheme pre-1 April 2008.
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