The formula used to describes the rate at which you build up
pension benefits whilst a member of the LGPS (whether under the
final salary or CARE elements of the scheme). It is expressed as a
fraction (e.g. 1/60th, 1/80th, 1/49th). The lower the bottom
number, the better the pension benefit you will receive for
an equivalent amount of pensionable service.
A new type of work-based pension requirement introduced by the
Government from October 2012 onwards,. It is being introduced over
a number of years, with larger employers required to meet the new
requirements first and smaller employers phased in over the next
few years. Workers can opt out at any time, but may be subject to
re-enrolment every three years from the date the employer was first
required to comply with the new rules. An employer cannot offer
workers inducements (additional pay, holidays etc) or encourage
workers not to join or opt out of a workplace pension.
Short for Additional Voluntary Contributions. One of the ways to
increase your benefits.
This means a person of the same sex who you have formed a civil
A long term partner you live with who satisfies the necessary
In a contracted out scheme such as ours, members are taken out
of the State Second Pension (S2P), so both the members and the
employers pay less in National Insurance. This is being withdrawn
from April 2016 as the Government moves towards a new combined and
simplified State pension provision
Your benefits are worked out when you leave the Scheme, based on
the amount of membership you have built up and your pay when you
leave, in the same way as for retirement.
They are then held in the Scheme where they increase in value
every year in line with the cost of living, until they are put into
This includes your own children, adopted children, and certain
other children who depend on you financially. They must normally be
under 17, but can be as old as 23 if they carry on in full time
education. It can even cover some adult children who cannot work
because of a disability.
Normally this means the pay you received in the last year up to
leaving that you pay pension contributions on.
Gainful employment is defined in the scheme rules as any type of
paid work, for at least 30 hours a week over a period of at least
This means your legally married husband or wife. It does not
include a 'common law' husband or wife or someone you are living
with as husband or wife - but see Nominated cohabiting partner,
Membership is used to work out your benefits and is based on how
long you have been a member of the Scheme, plus any extra
membership, for example any you transfer in from another pension
Normal Pension Age is the age from which you can retire and
receive your pension in full. Your Normal Pension Age in the LGPS
is linked to your State Pension Age (with a minimum of age 65).
You can check your Normal Pension age by looking up your
current State Pension Age at www.gov.uk/calculate-state-pension.
You are part time if you work anything less than the number of
hours your employer classes as standard full time hours.
Pensionable pay is the amount of pay on which you pay
contributions. From 1 April 2014 it includes non-contractual (as
well as contractual) overtime and any additional hours worked
in excess of your contractual hours.
The Rule of 85 was abolished on 1st October 2006, although some
scheme members contributing to the LGPS before that date may have
some or all of their pension benefits protected under this
rule. It is satisfied if your age and scheme membership (in
whole years) at the date you draw your benefits add up to 85 or
more and is used, to determine the earliest point at which benefits
could be taken voluntarily from the LGPS without suffering an early
The age you can draw your State pension. Traditionally this is
65 for men and 60 for women, although it is now later for some
people. You can check your state pension age here www.gov.uk/calculate-state-pension
The workplace pension reforms came into effect in October 2012.
Phased in over a number of years from that date employers will have
to automatically enrol eligible workers into a qualifying pension
scheme which meets certain criteria and make minimum contributions
towards their retirement savings. This is popularly known as