Not a member of the Local Government Pension Scheme (LGPS)?
You should think very carefully before giving up Scheme membership. If you decide other pension arrangements offer better value for money or for some other reason are more suitable, you should tell your employer. If you are "told" that the alternatives are better, you should ask for confirmation in writing.

what's in it for me? >>>

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Why should you join the Local Government Pension Scheme (LGPS)
The Scheme is an important and valuable benefit for the staff working in local government (or an associated employer). As a member, you get an excellent package of pension benefits, fully protected against inflation and guaranteed by the government. Most informed opinion recognises that people will nearly always be better off if they belong to their employer's occupational pension scheme. The Scheme has the full support of Local Government Trade Unions and professional bodies. Benefits are guaranteed and are based on your pay and membership of the Scheme. You do not pay administration costs ~ the cost of administration is met by your employer.

Pension benefits can be transferred into and out of the Scheme, but if you change jobs within local government (or an associated employer) your membership will continue.

You can increase your contributions to get increased benefits, if you are not potentially going to achieve the maximum allowed under Inland Revenue Rules.

increasing your pension benefits >>>

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What does it cost?
The scheme contribution rate is around 6% of gross pay;

But the real cost is normally around 3½% because

• you get tax relief on your contributions, and
• you pay a lower rate of National Insurance contributions because you are contracted out of the State Second Pensions (S2P).

The benefits of the Local Government Pension Scheme are valuable, independent Actuaries have assessed them as being worth around 20% of your overall pay. Your employer and the Government pay the extra, if required, to meet the total cost of the benefits you will receive.

You can compare the benefits and cost of Scheme membership by looking at the following, this will give you some information about the alternatives.

You should think very carefully before giving up Scheme membership. If you decide other pension arrangements offer better value for money or for some other reason are more suitable, you should tell your employer. If you are "told" that the alternatives are better, you should ask for confirmation in writing.

The essential thing to remember is that you should make your pension arrangements as early as possible in your working life. Delay will make it more expensive to ensure adequate arrangements later.

For further information on the Local Government Pension Scheme ~ ask your employer for details, or contact the West Midlands Pension Fund direct.