On 1 April 2014 the Local Government Pension Scheme (LGPS) became a career average scheme, that means each year in the new scheme your pension is worked out based on your pensionable pay in that year. That pension is then added to your Pension Account. Also for every job you have you will have a separate Pension Account.
At the end of each Scheme Year the amount in your Pension Account will be adjusted in line with the cost of living (currently the rate of the Consumer Prices Index (CPI) - to ensure it keeps its value).
This is all very different from the way your pension built up before April 2014. To help you understand how Pension Accounts work, there is an interactive Pension Account Modeller available.
Pension Account Modeller
The Pension Account Modeller is to help you understand how pension accounts work. This Modeller only shows how a pension builds up from April 2014.
The Modeller allows you to input pensionable pay details, assumed inflation and assumed pay increases to see how the value of an LGPS pension builds over the number of years you choose. You can also choose to see how opting for the new '50/50 section' would impact on the benefits built up in a pension account.
The Modeller is not designed to provide you with an estimate of benefits.
It shows how a pension will be worked out in the LGPS from 1 April 2014 onwards.
It is important that you read the 'Disclaimer' below before you use the Modeller.
The Local Government Pension Scheme (LGPS) is changing for employees in England and Wales from 1 April 2014. This Modeller has been produced for illustrative purposes only to show how a pension account works from April 2014.
The figures shown do not include the value of any reduction if your pension is paid before your Normal Pension Age or any increase if it was to be paid later than your Normal Pension Age. Your Normal Pension Age for pension built up from April 2014 is linked to your State Pension Age.
The information in this Modeller is for general information purposes only and does not cover individual personal circumstances. It does not cover councillor members of the LGPS. In the event of any dispute as to eligibility for membership of, or benefits due under the LGPS the appropriate legislation will prevail. The information in this Modeller does not provide any contractual or statutory rights and does not override existing legislation.
For an individual estimate of your benefits in the scheme contact your local Pension Fund from April 2014.