Scheme information

Active members

The Local Government Pension Scheme (LGPS) is a valuable part of your employment package. It provides you with a secure future income at a low cost, and it’s paid by you and your employer.

With 4.6 million members, the Local Government Pension Scheme is one of the largest public sector pension schemes in the UK. It is run locally for participating employers through 99 regional pension funds. The LGPS changed on 1 April 2014. It is now a career average scheme.  A career average scheme means that benefits you build up are worked out using your pay each scheme year rather than your final salary.

Our LGPS guide provides more details.

Joining the scheme

Here are a few things you need to know about joining the scheme:

  • You need to be under 75 and work for the council.
  • When you start work, you will be automatically brought into the scheme unless your contract is shorter than 3 months. In this case, you can opt to join by completing an application form.
  • If you are brought into the scheme, you have the right to opt out.

If you qualify for automatic entry and wish to remain in the LGPS you are still required to complete the LGPS membership form.

If you qualify for automatic entry and do not wish to remain in the LGPS, you can opt out by completing the opt out form for active members.

Cost of membership

You will pay between 5.5% and 12.5% of your pensionable pay, plus any non-contractual overtime you receive from the council. The rate you pay depends on which pay band you fall into.

If you join the 50/50 scheme, you will pay half your normal contribution rate for the period you are in the 50 / 50 scheme. For more information on the 50/50 scheme, see our more information for pension scheme members page

Contribution table for 2019/2020

If your actual pensionable pay is: Contribution rate (main section) Contribution rate (50/50 section)
Up to £14,400 5.5% 2.75%
£14,401 to £22,500 5.8% 2.9%
£22,501 to £36,500 6.5% 3.25%
£36,501 to £46,200 6.8% 3.4%
£46,201 to £64,600 8.5% 4.25%
£64,601 to £91,500 9.9% 4.95%
£91,501 to £107,700 10.5% 5.25%
£107,701 to £161,500 11.4% 5.7%
£161,501 or more 12.5% 6.25%

Useful information:

  • The band ranges will increase every April in line with the cost of living.
  • The real cost is usually even less because pension contributions attract tax relief.
  • We pay the balance of the cost of providing your benefits in the LGPS.
  • Every three years there is an independent review to calculate how much the council should contribute to the scheme.
  • Every April, the council will decide your appropriate rate of contributions per job by matching your actual pensionable pay (including non-contractual overtime) to the appropriate band in the contributions table.
  • We also pay into the scheme for you.

To calculate how much the scheme will cost you based on your current pay, use the LGPS calculator.

The benefits

There are many benefits of joining the LGPS:

  • A secure pension at retirement – the benefits you receive when you retire are based on the length of membership in the scheme and your average pay throughout your career. The pension you build up during your employment keeps pace with your pay-rises. After you retire, your pension keeps pace with increases to the cost of living.
  • Tax-free cash – you have the option to exchange part of your pension for a lumps sum of tax-free cash on your retirement.
  • Peace of mind – your family enjoys financial security, with immediate life cover and a pension for your husband, wife, civil partner or cohabiting partner, and children in the event of your death. If you become seriously ill you could also receive immediate ill-health benefits.
  • Early retirement – you can choose to retire from the age of 55 and receive your benefits immediately, although they may be reduced for early payment. It’s also possible to retire from age 55 and receive your benefits immediately if you are made redundant or you have retired in the interests of business efficiency.
  • Flexible retirement – if you reduce your hours or move to a less senior position at or after the age of 55, you can draw all of the benefits you have built up, provided your employer agrees. This can help ease you into retirement, although your benefits may be reduced for early payment.

LGPS (2014) benefits at a glance:

Basis of pension Career Average Revalued Earnings (CARE)
Accrual rate 1/49th
Revaluation rate Consumer Price Index (CPI)
Pensionable pay Pay including non-contractual overtime and additional hours
Employee contribution rate 5.5% – 12.5% based on pensionable pay
Contribution flexibility Members can pay 50% contributions for 50% of the pension benefit
Normal pension age Equal to the member’s State Pension Age
Lump sum trade off Trade £1 of pension for £12 lump Sum
Death in service lump sum 3 x pensionable pay
Death in service survivor 1/160th accrual based on Tier1 ill health pension enhancement

The Annual Benefit Statements (ABS)

Each year before the 31st August you will receive an ABS for each post that you hold within the pension fund. It is therefore important to ensure that we hold your current address. This statement will highlight how much you have built up in the pension scheme up to the 31st March of that financial year and how much you will receive at your normal retirement age.

If you are thinking of retiring (within the next financial year), contact us for an estimate, which will be calculated specifically to the date you request, this is because, the annual benefit statement is calculated un-reduced, however, if you are planning to retire before this date, % reductions may apply.

You can use lump sum calculator below to provide you with an estimate of how much lump sum you can take, up to the maximum, and how this affects your yearly pension. Please note, the calculator does not take into account in-house AVCs.

If your retirement is a number of years away, you may wish to use the retirement estimate modeller on your Member Self-Service (MSS) tool.

Transfers in

You have 12 months from joining the LGPS to opt to transfer pension rights.

You can:

  • transfer previous LGPS pensions
  • transfer from another pension scheme
  • transfer from your personal or stakeholder pension
  • transfer AVCs

You cannot transfer a pension credit into the LGPS. A pension credit is a share of an ex-spouse or ex-civil partner’s pension benefits, as awarded by a court under a Pension Sharing Order following a divorce or dissolution of a civil partnership

Complete and return the transfer authorisation form, which enables us to approach your former pension employers. For more information, see the LGPS’s guide to transferring pensions.

Divorce

In the event of divorce you may need to request information of your benefits in the LGPS. The Court may request specific information about your LGPS benefits for divorce/dissolution purposes. You should contact us as soon as possible to request a Cash Equivalent Transfer Value (CETV) estimate of your pension rights.

A CETV quotation is normally free, however there may be a cost if you or the court requires it at short notice. View our information sheet to find out more.

Deferred members

As you are a member with deferred benefits, you will have been provided with details of the value of your deferred benefits when you left. You will also receive an annual statement of your deferred benefits, so you can see how their value increases every year.

When you retire, You will also receive:

  • an annual pension, payable throughout your retirement
  • if applicable, a one-off tax-free lump sum, payable on your retirement
  • life cover and financial protection for your family

Transfers

You have the option to either leave your ‘deferred pension’ with the London Borough of Enfield Pension Fund until it is due for payment at your retirement date, or you can look into transferring it to a new pension provider.

If you are interested in looking into the possibility of transferring to a new pension provider, you will need to request the new scheme to write to request details of your deferred pension entitlement, they will, in turn, then let you know, how much this will purchase in their scheme.

Please also see:

Change of address

It is extremely important that we keep our records up to date so that we can tell you about any changes to the pension scheme. This also helps prevent pension payments from being suspended. The form you can email us changes about is change of address.

Divorce

In the event of divorce you may need to request information of your benefits in the LGPS. The Court may request specific information about your LGPS benefits for divorce/dissolution purposes. You should contact us as soon as possible to request a Cash Equivalent Transfer Value (CETV) estimate of your pension rights.

A CETV quotation is normally free, however there may be a cost if you or the court requires it at short notice. View our information sheet to find out more.

Pensioners

Your LGPS pension is paid into your bank account every month. The Enfield Council Payroll Service administers the payroll on behalf of the pension fund.

In April each year you will receive a Payroll and Pension Newsletter which will notify you of the pay dates in the year ahead. The newsletter also contains useful information about any budget changes which may affect the amount of tax deducted from your pension.

Your pension will increase annually in line with the Consumer Prices Index (CPI). Details of the pension increases will also be available in the annual newsletter.

Payslips will not be issued to you every month. They are distributed as below:

  • March payslip – at the end of March you receive a payslip showing the total pension paid and any tax deducted for the whole financial year. These figures will also appear on your P60, which is sent to you by 31 May each year.
  • April payslip – along with any tax code changes, your April payslip will also show, where appropriate, any Pension Increase from 6 April. This would mean that a proportion of your April pension is at the old rate and a proportion at the new rate.
  • May payslip – if applicable, this payslip will show the new rate of your pension for a whole month following the Pension Increase. This will normally be the last payslip you receive until the following March.

We will only issue a monthly payslip if there is a variation to your net monthly pension of at least £1 when compared with your May payslip.

Changes to your personal details

It is extremely important that we keep our records up to date so that we can tell you about any changes to the pension scheme. This also helps prevent pension payments from being suspended.

If any of your personal details change, contact the payroll and pensions team. We cannot accept such changes over the phone. We have different email addresses, depending on your surname:

The forms you can email are:

Moving overseas after retirement

We can continue to pay your pension to either a UK bank/building society, or directly overseas via Western Union, if you contact us with your new details.

Tax

Her Majesty’s Revenue & Customs (HMRC) works out how much income tax you should pay and provides us with the tax code to be applied to your pension. You will need to speak directly to HMRC if you have any queries on this. You can contact them on 0300 200 3300. You will need your National Insurance number.

Divorce

In the event of divorce you may need to request information of your benefits in the LGPS. The Court may request specific information about your LGPS benefits for divorce/dissolution purposes. You should contact us as soon as possible to request a Cash Equivalent Transfer Value (CETV) estimate of your pension rights.

A CETV quotation is normally free, however there may be a cost if you or the court requires it at short notice. View our information sheet to find out more.

Other useful contacts

  • For any queries relating to Pension Increases or GMP rates, contact the pensions team
  • For information relating to your State Pension, contact The Pension Service on 0345 60 60 265
  • For information on your Teachers Pension, contact Teachers Pensions on 0845 60 66 166
  • For information relating to tax, contact HM Revenue and Customs on 0300 200 3300. HM Revenue & Customs enquiries you may be asked to quote the council’s PAYE reference number. This is 120/B32. It may also be helpful to have your National Insurance number when you call.