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Reductions in pay

The LGPS is a career average scheme, so both contributions and benefits are tied into your pay each year. This means that a future reduction in pay cannot ‘harm’ the career average benefits you’ve already built up.

Benefits before April 2014

But if you were in the scheme before April 2014, these will still be worked out using the old final salary rules. This means that if you have had a reduction in pay, or get one in future, this could still 'harm' the final salary part of your benefits.

There are two main options which may help, and briefly these are:

Use actual final pay: because we base your final salary benefits on the 'best of the last 3 years' pay', this may help if the pay cut is fairly close to the date you leave.

Use an earlier pay figure: this is an option if you leave within 10 years of the date of the pay cut, and allows you to ask us to base your final salary benefits on any three year block (ending with a 31 March) out of your final 13 years.

Pension choices following a reduction in pay booklet

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