Skip to content

Reasons for joining

The Local Government Pension Scheme (LGPS) is a secure pension scheme. It is defined and set out in law and the benefits are guaranteed with no investment risk.

If you leave before retirement you can transfer your pension rights to another scheme or leave your benefits in the LGPS. Benefits you leave in the scheme will continue to increase with the cost of living until they are payable at normal pension age.

Benefits of the LGPS are:

  • Life cover
    Should you die whilst a member of the scheme, 3 times your actual annual pensionable pay will be payable. This benefit is available from your first day of membership and no medical is required. Find out about death in service
  • Tax relief
    If you earn enough to pay tax, your pension contributions attract tax relief at the time they are deducted from your pay.
  • No hidden fees or charges
    You simply contribute a percentage of your pay.
  • Your employer contributes
    The scheme is provided by your employer who contributes towards the cost of providing your benefits. Find out about what your employer pays
  • A secure pension
    The pension you build up during your membership keeps pace with your pay rises and, after you retire, your pension keeps pace with cost of living increases.
  • Tax-free cash
    You have the option to exchange some of your pension for a tax-free lump sum on your retirement. Find out about converting your pension to a lump sum
  • Protection for your loved ones
    Your family is provided for in the event of your death with a pension for your spouse, civil partner or eligible cohabiting partner and eligible children (subject to certain criteria).
  • Protection for you
    If you become seriously ill, you could receive immediate ill-health benefits at any age. Find out about ill health retirement
  • Options to pay reduced contributions
    In times of financial hardship you can opt into the 50/50 section which allows you to pay half your contributions for half the benefits. Find out about the 50/50 section
  • Options to pay extra
    You can boost your pension by paying extra contributions. You get tax relief on these contributions, too. Find out about increasing your benefits
  • Early retirement
    The LGPS normal retirement age is your State Pension age (SPa) when full benefits are payable. You can choose to retire from age 55 but your benefits may be reduced to take account of being paid earlier. If your employer makes you redundant or retires you on the grounds of business efficiency after age 55, the benefits you have built up to the date you leave are payable immediately without reductions. Find out about retirement and taking your pension
  • Flexible retirement
    If you reduce your hours or move to a less senior position after age 55 you can, provided your employer agrees, take the benefits you have built up - helping you ease into retirement - although your benefits may be reduced for early payment. Find out about flexible retirement

Reasons to start paying into a pension scheme now

  • To provide now, whilst you have an income, for later.
  • You pay smaller amounts but over a longer period to provide the pension you will need to continue the quality of life you want.
  • You will live on just the State Pension if you do not provide an additional income to top this up.
  • We are all living longer and could need to provide for ourselves for many years after retiring.