The calculation of your deferred benefits depends on when you were a member of the LGPS.
Member self service
Register or log in to member self service to use the the projection calculator.
Annual pension
Your annual pension is calculated differently for these periods of membership:
- Calculation of annual pension for membership from 1 April 2014
- Calculation of annual pension for membership between 1 April 2008 and 21 March 2014
- Calculation of annual pension for membership before 1 April 2008
Lump sum
When you take your deferred benefits, you can give up some of your annual pension to make a one off tax-free lump sum. You receive £12 lump sum for each £1 of annual pension given up. You can take up to 25% of the capital value of your pension benefits as a lump sum.
Use the lump sum calculator to estimate the lump sum that you can take by exchanging some of your annual pension.
There is no automatic lump sum for pension built up after 1 April 2008. If you built up pension before 1 April 2008, you receive an automatic lump sum based on your membership before 1 April 2008. You can exchange some of your annual pension for extra lump sum.
Example of converting pension to lump sum
You have built up:
- an annual pension of £6,000 payable for the rest of his life, and
- an automatic lump sum of £750.
You choose to give up £1,000 of your annual pension for lump sum.
£1,000 x £12 = £12,000 lump sum.
You receive:
- an annual pension of £5,000 payable for the rest of your life, and
- a one off lump sum of £12,750 (£750 +£12,000).
Summary of how benefits are calculated
The table provides a summary of how your deferred benefits are calculated:
| Membership period | Annual pension | Lump sum |
|---|---|---|
| From 1 April 2014 | For each year in the main section: annual pensionable pay x 1/49 For each year in the 50/50 section: annual pensionable pay x 1/98 | Can exchange £1 pension for £12 tax free lump sum, up to 25% of the capital value of your pension. |
| Between 1 April 2008 and 31 March 2014 | Membership x Final Salary Pensionable Pay (FSPP) x 1/60 | Can exchange £1 pension for £12 tax free lump sum, up to 25% of the capital value of your pension. |
| Before 1 April 2008 | Membership x Final Salary Pensionable Pay (FSPP) x 1/80 | Automatic lump sum: Membership x Final Salary Pensionable Pay (FSPP) x 3/80 Can exchange £1 pension for £12 tax free lump sum, up to 25% of the capital value of your pension |
How your benefits keep their value
Your deferred benefits are calculated when you leave and remain in the scheme until they are due to be paid. They increase in line with the cost of living. Find out how your deferred benefits keep their value