Receiving a Local Government Pension Scheme

What's on my first payslip?

It takes time to set up a payroll payment so we may not be able to pay you in the first payroll run after your LGPS pension start date. If this is the case, we will pay any arrears due to you on the next payroll run after you have been set up on our payroll system. 

Your first payslip will show you:

• the gross amount (all the pension you are due since your retirement date) on the left-hand side, 
• any tax deductions on the right-hand side, 
• the net amount payable (the pension you are owed less any tax due) at the bottom. 

Why have I received less this month?

This could be due to a recent tax code change. If you would like to query the tax code that we hold for you, please contact HMRC directly on 0300 200 3300.

What if I am not receiving my State pension?

Please notify us if you have decided to defer taking your State pension or you are in prison, then we can ensure that we paying you the correct annual increases. 

What if I take another job?

Normally you do not need to inform Pension Services about your new job. There are two exceptions:

1) A tier 3 ill health pension is stopped if you take up "gainful" employment, so your pension may be affected if you return to work. Therefore, you must inform the employer who awarded you the ill health pension if you start any new employment. They will let you know whether your pension payments should stop.

Gainful employment is paid employment for at least 30 hours a week for a period of at least a year.

2 ) If you start a new job where you are eligible to join the LGPS and you were awarded Compensatory Added Years (CAY) by your former employer, which paid with your LGPS pension or as a separate pension, there may be an abatement or clawback of these added years. This depends on whether your total service exceeds the amount permitted. If you have CAY and start a new job in the LGPS, you should Pension Services for advice.

In the past, the pension of some members was reduced (abated) when they started a new employment. If your pension is abated, and you don't have Compensatory Added Years or a tier 3 ill health pension, please contact Pension Services. 

What is GMP rectification?

Before 1 April 2016, the LGPS was 'contracted out' of the State Second Pension (S2P). This meant that members of the LGPS did not contribute to S2P and therefore paid lower National insurance contributions. The LGPS had to ensure the pension paid to a member was at least as much as they would have received under S2P. This minimum level was known as Guaranteed Minimum Pensions (GMP).

When the new State pension was introduced in April 2016, the ability to contract out ended.

Before this time, pension schemes such as the LGPS, would check ("reconcile") a member's contracting out record with HM Revenue and Customs (HMRC) at or close to retirement. This allowed the scheme to confirm that their records of contracting out and the GMP agreed with the records held by HMRC. Any discrepancies were investigated and resolved to ensure that a member received the correct GMP.

With the end of contracting out, HMRC announced the proposed closure of its reconciliation service. Pension schemes were advised to make plans to reconcile the contracting out data for all their members before the service closed. This would then enable them to correct ("rectify") any errors.

This exercise is nearing an end and we will be writing out to members' who pension benefits are affected as a result of the reconciliation.

Please note:

• we will not recover historical overpayments of pension resulting from GMP rectification,
• however, we will backdate any underpayments.