This overview sets out the main features of the proposed LGPS 2014 starting from 1 April 2014.
All pensions in payment or built up before April 2014 will be protected. If you are currently a contributing scheme member your pre April 2014 pension will still be based on final salary at retirement and the current Normal Pension Age.
LGPS 2014 is proposed to be a career average scheme. You may also hear the terms ‘CARE’ or ‘Career Average Revalued Earnings’.
The proposed LGPS 2014 has an option that allows employees eligible for LGPS membership to elect to contribute less and receive less benefit in return instead of
opting out of the scheme altogether. This option will require renewal after a limited time and is not designed to replace long term membership of the full scheme.
The new LGPS is proposed to start on 1 April 2014. All pensions in payment or built up before April 2014 will be protected.
Outline of Normal, Early, Late retirement options and retirement on grounds of ill health, efficiency or redundancy.
The average member contribution to LGPS 2014 will be as it is now: 6.5%. The framework has been changed to ensure it reflects changes to the basis of contributions by:
- Basing part-time members’ contributions rates on actual
- Moving to more progressive bands after tax relief.
UNISON, Unite, GMB and the Local Government Association (LGA) joint statement on new proposals.
What the heck do all these words mean?