Contributing to the LGPS means that:
- 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:
- Pension = Accrual Rate x (multiplied by) Pensionable Pay
- The current Accrual Rate for LGPS is 1/49th
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|
This pension is paid each year from Normal Retirement Age (your State Pension Age) until date of death.
Increasing with Inflation
Your annual pension is increased each year in line with Cost of Living (CPI) inflation.
How to view your pension benefits
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.