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The new State Pension and NI changes

Q & A for LGPS members

A new single tier, flat rate State Pension came into force on 6 April 2016, for anyone who will reach State Pension age on or after this date. The new State Pension should help people better understand what they will get so that they can plan for their retirement. It has replaced the previous system which was based around a basic and an additional State Pension.

During your membership of the LGPS before April 2016, you were 'contracted out' of the additional State Pension, so at that time you paid less in National Insurance.

But contracting out has now ended, so going forward you have to pay standard National Insurance contributions (unless you are over State Pension age or you are paying the Married Woman's / Widow's Reduced Rate of National Insurance contributions).

Remember, if you are eligible for the new State Pension you probably won't get the full amount – that's because you paid lower National Insurance in previous years.

You will, of course, continue to be entitled to your LGPS benefits. These will continue to be a very important part of your income in retirement, providing an excellent range of benefits including benefits for your loved ones.

The Q & A that follows has been produced to help LGPS members understand what the changes to the State Pension will mean for them.

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