The workplace pension scheme we offer is the Local Government Pension Scheme (LGPS). As you are not currently a member of the LGPS and have now met one of the above criteria in your post as [enter name of post – if the person meets the criteria in more than one post with the employer, enter the titles of all the posts in which the person meets the criteria], I am writing to let you know that you have the right to join the scheme if you want to in that post / those posts*. [Select as appropriate] If you have more than one post with us, you can choose in which posts you wish to join the scheme. What would joining the pension scheme mean for you? Each time you are paid both you and we would pay money into the Local Government Pension Scheme to provide you with pension benefits when you retire. If you pay tax, you will automatically receive tax relief on those contributions and on any extra contributions you choose to pay to the LGPS. As a member of the scheme you would be required to contribute the percentage of your salary as set out in the table below [Delete either the England and Wales table and Note, or the Scotland table and Note]. The employer’s contribution to the scheme would be determined at each triennial valuation of the Pension Fund by the Fund’s appointed actuary. England and Wales – employee contribution tables for Annual pensionable pay Employee Contribution rate Up to £ 5.5% £ to £ 5.8% £ to £,700 6.5% £,701 to £ 6.8% £ to £ 8.5% £ to £ 9.9% £ to £,200 10.5% £,201 to £ 11.4% £ or more 12.5% Note: The annual pensionable pay bands will be increased annually in line with the cost of living. The contribution rates will be reviewed periodically and may change in the future. Scotland – employee contribution tables for
The right to voluntarily retire from age 55 (even though the scheme’s normal pension age is the same as your State pension age but with a minimum of age 65) [or, in Scotland, “The right to voluntarily retire from age 60, even though the scheme’s normal pension age is 65. You can even retire from as early as age 55, provided your employer agrees”.] Flexible retirement from age 55 if you reduce your hours, or move to a less senior position. Provided your employer agrees, you can draw some or all of your benefits – helping you ease into your retirement. If you choose to voluntarily retire before your normal pension age, or take flexible retirement before then, your benefits would normally be reduced to account for them being paid for longer. You can even stay in the LGPS if you carry on working beyond your normal pension age, although you have to draw your benefits by age 75. Benefits drawn after your normal pension age will be paid at an increased rate. There is also: Life cover from the moment you join, with a lump sum of 3 years’ pay being paid if you die in service. Cover for your family, with a pension for your spouse, registered civil partner or eligible cohabiting partner and for eligible children if you die in service or die after leaving with a pension entitlement. On retirement: You would get a pension for life that increases with the cost of living, and You can exchange part of your annual pension for a one off tax-free cash payment. What’s more: It's a defined benefit scheme, which means your benefits are based on your pensionable pay and the number of years you have been a member of the scheme and are not dependent on share prices and stock market fluctuations. Once a year you would get a statement indicating how much your pension has built up so far and how much you might get when you reach retirement age. As a member of the scheme you could, if you wish, increase your pension benefits by paying Additional Voluntary Contributions (AVCs) or Additional Pension Contributions (APCs).