It is not our policy to complete individual questionnaires. However, this page should answer most of the common queries we receive. Find full details about the LGPS on the national LGPS members website
Type of scheme
The Local Government Pension Scheme is a Statutory, Defined Benefit Scheme. It is governed by the Local Government Pension Scheme Regulations 2013, the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014 and relevant earlier regulations.
The LGPS is a registered public service pension scheme under Chapter 2 of Part 4 of the Finance Act 2004. It achieved automatic registration by virtue of Part 1 of Schedule 36 of that Act (because the scheme was, immediately before 6 April 2006, both a retirement benefits scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 and a relevant statutory scheme under section 611A of that Act). It complies with the relevant provisions of the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004.
The LGPS meets the government's standards under the automatic enrolment provisions of the Pensions Act 2008.
The scheme was formerly contracted out of the State Additional Pension and is a member of the public sector transfer club.
Scheme benefit structure
Pension and lump sum:
- Up to 31/03/2014 scheme benefits were calculated on a final salary basis.
- From 01/04/2014 scheme benefits are calculated on a career average revalued earnings (CARE) basis.
Find out more about how pension is worked out
Pension
1/80th of final salary for service up to 31/03/2008.
1/60th of final salary for service between 01/04/2008 – 31/03/2014.
1/49th of actual pay from 01/04/2014.
Automatic lump sum:
3/80th of final salary for service up to 31/03/2008
Additional lump sum
12:1 commutation rate for all ages with a 25% maximum of capital value.
0.25 x [(120 x AP) + (10 x RG)] / 7 = Max tax free cash.
AP = Annual Pension.
RG = Retirement Grant.
Retirement ages (NRA)
Service up to 31/03/2014: age 65.
Service post 01/04/2014: linked to State Pension Age.
Early retirement
Ill health retirement: at any age (subject to review from an independent medical advisor).
Redundancy or efficiency retirement from active member status: If a member who is 55 or over leaves employment on the grounds of redundancy or efficiency, the pension may be paid with or without reductions, or may be deferred, depending on the individual circumstances.
Age 55 retirement: All scheme members can take their retirement benefits from age 55 with actuarial reductions applied. Find out about early retirement
Late retirement: Some scheme members may delay their retirement after their normal pension age. Find out about late retirement
If the scheme member was a member of the LGPS prior to 1 October 2006, some or all of the benefits could be protected from an early payment reduction. This protection is reflected in all estimates and CETVs. Find out about the 85 year rule
Death Benefits
Find out about lump sum and survivors death benefits for members with deferred benefits
Find out about lump sum and survivors benefits for members with pensions in payment
Transfer information
Will the trustees offer a CETV and cash transfer within the last 12 months before normal retirement date? No, it is not possible to transfer out of the scheme within 12 months of normal retirement age.
Is it possible to complete a partial transfer of the scheme? No
Member contributions paid: Not applicable - we are a Defined Benefit Scheme
Service and Salary levels: Pensionable remuneration and service shown on transfer quote.
Revaluation and escalation rates of the scheme: CPI (Section 148 for GMP). September CPI figure is applied on the first Monday after 6th April each year.
GMP: Where the member reaches state pension age before 06/04/2016 and the pension is in payment, the pre 88 GMP is not increased and the post 88 GMP only up to a maximum of 3%. Where the member reaches state pension age on or after 06/04/2016, the scheme provides full indexation increases to the GMP.
Contracted out periods and details: Scheme contracted out up to 05/04/2016
Fee to process transfer: None, however the pension section reserves the right to charge for additional CETVs provided within 12 months. If a transfer payment request is received outside of the guarantee date, the CETV will be recalculated and paid at no charge. The value however could go up as well as down if it is outside of the guarantee date.
ID required for transfer: Copy of birth certificate or passport required.
We are not part of the Origo system which is used within the transfer out process by some pension providers.
Independent advice on transferring pension rights
If the member would like a transfer of pension rights to a pension scheme that offers flexible benefits* they will be required to take independent advice before a transfer can be paid if the total transfer value of all their Local Government Pension Scheme rights is more than £30,000
flexible benefits*
In this circumstance ‘flexible benefit’ means a transfer to any pension arrangement that offers a:
- money purchase benefit,
- cash balance benefit, or
- benefit, other than a money purchase benefit or cash balance benefit, calculated by reference to an amount available for the provision of benefits to or in respect of the member (whether the amount so available is calculated by reference to payments made by the member or any other person in respect of the member or any other factor).
General Scheme information
Is a drawdown for the plan applicable? Not applicable
Money Purchase Underpin: Not applicable
Funds invested in/funds available: Not applicable
Guaranteed Annuity Rates: Not applicable
Is the fund value different from the transfer value?: No
Charging structure: No fund or management charges applicable
Scheme funding position: Fully funded. Read the Kent Pension Fund funding strategy statement
Is the scheme in surplus, if so, is any of this surplus likely to be distributed? No
If the funds are carrying a deficit, are transfer values being reduced? No
Scheme status: Open
Scheme benefits are equalised
Guaranteed minimum pensions are currently not equalised
Copy of scheme booklet: Find scheme guides on the national LGPS website
Retirement information: Scheme members receive an annual benefit illustration each year. This provides an illustration of the pension they have built up. It does not show reductions that may apply if the member takes their pension before normal pension age.