Benefits at a glance

The Local Government Pension Scheme (LGPS) for councillors in England became a closed scheme on 1 April 2014. No new councillors can join the scheme and current LGPS members may only pay in until their current term of office ends.

The LGPS is a statutory, funded pension scheme. As such it is very secure because its benefits are defined and set out in law.

Scheme benefits
  • A tax-free lump sum when you retire
  • A pension based on your career average pay
  • The ability to increase your pension by paying additional voluntary contributions
  • Voluntary retirement from age 60
  • Retirement from age 50 with your authority’s consent
  • An ill health pension from any age
  • A death in service lump sum of two times career average pay
  • A widow's, widower's or civil partner's pension
  • Children's pensions
  • Index-linked benefits to ensure that they keep pace with inflation
How much does it cost?

The contribution rate for all members of the councillors LGPS scheme is 6%.

How to work out my pension

Benefits include both a tax free lump sum and a pension for your lifetime, which will go up in line with prices once you're drawing it. Here's how we work out your benefits:

  • Annual pension: Career average pay × Membership / 80
  • One off lump sum: Career average pay × Membership / 80 × 3
Career average pay

To get this figure we we add together your pay for each year ending 31 March, increased in line with the Consumer Price Index (except for the last year). We then average this out to get your career average pay.

Bigger lump sum

Having worked out your benefits as shown here, you can boost your lump sum by giving up some pension. Every £1 of annual pension you give up adds £12 to your tax free lump sum.

Scheme guide