Transcript Local Government Pension Scheme - Norfolk Association of Local

Local Government Pension
Scheme
An Overview
Type of Scheme
• Defined Benefit
• Statutory Scheme
• Contracted Out of S2P
Who can join?
• Contract for 3 months
• Under age 75
• Town & Parish Councils = Designating
Bodies: nominate individuals/employee
class/all employees
Pension Contributions
•
•
•
•
9 different bands from 5.5% to 12.5%
percentage based on actual pay
Pay bands change each April
Tax relief and (currently) reduced NI
contributions
• Employer Contributions – calculated by
Scheme Actuary
Pension Contributions
Pay bands
Contribution Rate
Actual Pensionable Pay
Up to £13,500
5.5%
£13,501 - £21,000
5.8%
£21,001 - £34,000
6.5%
£34,001 - £43,000
6.8%
£43,001 - £60,000
8.5%
£60,001 - £85,000
9.9%
£85,001 - £100,000
10.5%
£100,001 - £150,000
11.4%
More than £150,000
12.5%
How pension benefits build up
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•
•
•
•
CARE Scheme from 1 April 2014
Pension Calculated on annual basis
Scheme Year: Period 1 April to 31 March
Actual pay / 49 = Pension for Scheme Year
Scheme Years increased annually and on
cumulative basis
• Final Salary Scheme to 31 March 2014
• Final Salary link continues
Options for Active Members
• Transfer in previous pension rights
• Pay additional contributions
• Buy back lost pension
– With shared employer cost
• 50/50 section
Options on leaving the LGPS
•
•
•
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Deferred Benefits - >2 years membership
Refund of Contributions - <2 years
membership
Transfer Out
Retirement
–
–
–
–
•
Voluntary 55 – 75
Redundancy/Efficiency
Flexible Retirement
Ill Health
Death
Calculating
Pension Benefits
• 3 calculations depending on dates of
membership
• Convert pension to provide additional lump
sum
• Reduction for voluntary retirements
• No reductions for retirements with
employer’s consent
Pension Calculation
Membership up to
31 March 2008
Membership from 1
April 2008 to 31 March
2014
Membership from 1
April 2014
Annual Pension
= Membership x
Final Pay ÷ 80
Annual Pension
= Membership x Final
Pay ÷ 60
Annual Pension
= Pensionable pay for
each year ÷ 49
(half that if in 50/50
section)
+
Automatic tax-free
cash lump sum
= 3 x Annual
Pension
No automatic tax-free
cash lump sum*
+
No automatic tax-free
cash lump sum*
* Option to convert pension into tax-free cash
Contact Details
Norfolk Pension Fund
www.norfolkpensionfund.org
01603 495923
01603 222132
[email protected]
[email protected]
Lawrence House
5 St Andrews Hill
Norwich
NR2 1AD