Local Government Pension Scheme (LGPS)

If your position is a Grade 1 to 5 and you have a contract exceeding 3 months duration, you will be contractually enrolled into the LGPS scheme from the first day of your contract. If your contract is less than 3 months, entry into the scheme will commence when your contract is extended beyond the 3 months duration but would not be backdated.

Casual contracts will only be entered if you meet the criteria as an eligible job holder for auto enrolment. You will be contacted if you trigger auto enrolment.

LGPS is a defined benefit pension scheme.

For pension benefits built up before 31 March 2014, you get a proportion of your pay for every year and day that you are a member of the scheme.

For pension accrued before 31 March 2008, the proportion is an 80th of your whole-time equivalent pay.

For any pension built up after 1 April 2008, it is an improved 60th rate.

However, from 1 April 2014 that formula is different because the Scheme changed from a final salary scheme to a career average scheme:

• For each year in the new scheme, you will build up a pension based on your actual pensionable pay in that year.
• For each scheme year that you are a member after 1st April 2014, a pension equal to a 49th of your pensionable pay will be added to your pension account.
• For each year that passes, the amount of pension that is building up is revalued in line with inflation.  This could be an increase or a decrease, depending on the Consumer Prices Index.

Example after 1 April 2014 - Earnings £18,000 pension as 1/49th = £367.35 per annum.

So, if you stayed in the scheme for 10 years and your pay remained the same your pension per annum when you reach the normal pension age would be £3,673.50 (10 years at £367.35). Note: The scheme does allow for cost-of-living increases to this, so this value could be slightly more.

There is no automatic lump sum at retirement, but you will be given the option of converting some of your annual pension into a lump sum.

In the LGPS the employee's contribution rates are based on your actual earnings, including all overtime. As an employer the University currently pays 24.8%.

You will receive tax relief on your contributions. 

You can request to join a scheme by emailing payroll@mailbox.lboro.ac.uk. Your email must be from your own email address and must contain the following statement: "I confirm I personally submitted this notice to join a workplace pension scheme." Once received you will be enrolled from the next available payroll run - the Team will contact you to advise when you will be entered into a scheme.

The scheme you will be entered into will depend on your grade.

If you do not want to be in the scheme, you will need to complete a form to “opt out”. Visit the Leicestershire County Council website for a form or call the scheme for a form on 0116 305 4000. 

Completed forms should be returned to the Payroll Team at the University. Electronic/scanned copies are fine provided they are sent from your own email address.

If the opt out form is returned to us within 3 months of your enrolment date into the scheme any deducted contributions will be refunded, you via payroll on the next available pay run. 

After 3 months the university can no longer refund contributions but if you have built up less than 2 years membership in the scheme you would still be able to claim a refund from the scheme directly.

Should you opt out/leave LGPS after 3 months we will inform Leicestershire County Council’s Pension Department (within 4 weeks of your last pension deduction) and they will contact you directly with details of your built-up benefits and options regarding them.

These options will be to take a refund of your contributions from the council (only if you have built up less than 2 years membership in the scheme), Transfer your benefits to another pension scheme or to leave your benefits with them as deferred pension (only available if you have built up more than 2 years membership in the scheme). This means that the pension benefits are kept on ‘hold’ until you reach retirement age and can claim them. They will receive annual cost of living increases and you will receive an updated benefit statement each year.

Transfers are only permitted from other LGPS service or Public Sector Pensions. Transfer requests must be completed within 12 months of joining the scheme by entering the information onto the Transfer form available from the scheme’s online member service. If you decide that you wish to consider a transfer after 12 months or are uncertain if your previous scheme is eligible for a transfer then, you will need to contact County Hall directly to see if they will allow the transfer.

Yes, you can pay extra to increase your benefits. There are two options: paying Additional Pension Contributions (APCs) or by paying into an Additional Voluntary Contribution (AVC) plan.

Additional Pension Contributions (APCs)

You can purchase a fixed amount of extra annual pension from the scheme directly by making payments under an Additional Pension Contribution (APC) arrangement. You can arrange with the scheme to pay a fixed amount extra each month or make one off extra payments. Note that the cost to purchase extra benefits like this increases the closer you are to retirement age, there is a limit to the amount of extra pension you can purchase via this method and your dependant benefits will not be increased.

Additional Voluntary Contributions (AVCs)

A more flexible way to boost your retirement income is to pay into an Additional Voluntary Contribution (AVC) plan. To arrange this, you would need to contact Prudential, Leicestershire County Council’s in-house AVC provider. Any extra contributions you choose to pay will be invested by Prudential (hopefully to increase in value) and at retirement you would be able to claim these funds as a tax-free lump sum (with in some limits set by HMRC) or convert them into extra annual pension. 
You will receive tax relief on any additional contributions paid.

For more information, please see Additional Contributions Information.

The LGPS Scheme has 2 parts the Main Scheme and the 50/50 Scheme.

When you start you will be enrolled into the Main Scheme, where you will pay normal contributions and get the normal pension build up (your pay divided by 49).

The 50/50 Scheme allows you to pay half the normal contributions, but you will only build up half the normal pension (your pay divided by 98). It is designed to be a short-term option when times are financially tough. 

Regardless of the section you are in, you get full life cover, and any death grant is unaffected.
To move over to the 50/50 Scheme, you would need to complete and send to us a copy of the 50/50 Option Form (which can be found if you navigate to the Can I pay less section on the LGPS website).

Note the University will be required to re-enrol you back into the Main Scheme as part of our statutory re-enrolment process (which happens every 3 years) or if you take unpaid leave. If you wished to continue in the 50/50 Scheme at that point, you would need to make another election in writing to re-join the 50/50 Scheme.

The scheme produces annual benefits information, which is accessible via your online account. You will need to register at Leicestershire County Council Pension website. If you do not have access to a computer or require a paper statement, please contact the county council directly.

If you are commencing a new role that moves you from grade 5 to grade 6 or above, you will be entered into USS. However, if you are a member of the LGPS scheme and this is the first time you will be in a position that is eligible for USS (grade 6 or above), you have an option to remain in the LGPS scheme providing that you meet the following criteria:

• You were active members of the Local Government Pension Scheme (LGPS) immediately before the position change.
• You have not held a grade 6 (or above) position at the University.
• You have not been a member or opted out of the USS pension scheme previously.

If you wish to remain in the LGPS, you will need to contact payroll@mailbox.lboro.ac.uk and complete an application form before the start of your new position.

Note

• This election can be made only once, and that it remains binding for as long as you remain in employment with Loughborough University.
• You will not be permitted to join USS in the future whilst employed at Loughborough University.

We cannot give financial advice, but the links below give further information about the schemes. Applications cannot be accepted after your new position has commenced (unless the grade change has been backdated and USS contribution have not yet been deducted).

USS New Joiner Information

LGPS Scheme Information

You may need to take time away from work during your career. Special rules apply to protect your LGPS pension if you are on sick leave or child-related leave.

Sick leave

If you are off work due to sickness or injury, your pay might go down or you may receive no pay. If this happens, a notional pay figure is used to work out your pension to make sure you do not lose out. This notional pay is called your Assumed Pensionable Pay.
You will continue to pay your basic LGPS contributions on any pay that you receive while you are off sick. If you are on unpaid sick leave, you will not pay any contributions.

Child related leave

Relevant child-related leave in the LGPS means:

• Ordinary maternity or adoption leave – normally the first 26 weeks.
• Paid additional maternity or adoption leave – normally week 27 to week 39.
• Paid shared parental leave.
• Paternity leave.
• Paid parental bereavement leave.

During a period of relevant child-related leave, your pension is usually worked out using your Assumed Pensionable Pay. Assumed Pensionable Pay is a notional figure that is used to make sure your pension is not affected by the pay reduction. You would continue to build up a pension in the LGPS as if you were working normally and receiving normal pay.

Any period of unpaid additional maternity, adoption, or unpaid shared parental leave will not count for pension purposes unless you pay extra pension contributions to buy back the pension you have ‘lost’. The extra contributions are known as Additional Pension Contributions or APCs. If you are interested in buying back the pension lost, you will need to complete an APC quote request form to obtain cost details from the County Council’s Pension Section. If buying back lost pension after returning to work the university will pay 2/3rd of the cost. Further information can be found at: LGPS - I am having some time off work.

If you are leaving employment, we will notify the scheme within 4 weeks of your last payment from the University. The scheme will then contact you directly at your home address with your options.

If you have less than two years membership and have not completed a transfer in from another pension, you will be offered a refund from the scheme, minus any deductions for tax that should have been paid.

If you have more than 2 years’ service, you will have a deferred membership. This means the pension is kept ‘on hold’ in the Leicestershire scheme until you reach retirement age. This will apply to you if you have been a member of the LGPS for 2 years more or have transferred in any pension from another scheme. Your benefits will receive a cost of living increase each year and the council will send you a new benefits statement each year to advise you of the increase.

You will therefore always need to let the Leicestershire County Council Pension Team know if you change your address. You will be contacted at retirement age and offered the benefits.

You can claim your pension benefits in full of your normal pension age. This is linked to your state pension age (but with a minimum of age 65). 

However, you can choose to retire and draw your pension early provided you have built up at least 2 years membership from age 55 (57 from April 2028) or leave your benefits with the scheme up until age 75. If you claim your benefits early, they will be reduced and similarly they will be increased if claimed later than your normal pension age.

Note any benefits built up before 1 April 2014 may have a different protected pension age. This means that they would not be reduced if claimed after this age. Further information can be found on the LGPS taking your pension page.

The benefit projection modellers on the Online Service will allow you to estimate your future pension benefits.

Within the Benefit Projectors section, you can view:   

• Deferred Benefits - Calculate how much your pension would be worth if you were to leave this active employment or the pension scheme before your normal pension age.
• Voluntary Retirement - Calculate how much your pension would be worth if you were to voluntarily retire. You can also alter the amount of pension or lump sum.

If you are considering a date in the next 12 months, you can ask the scheme for a quote to be sent to you.

Yes. There is a facility for an employer to allow a member to receive their pension without leaving that employment, by authorising flexible retirement. In order to qualify for flexible retirement, a member must reduce their hours by a minimum of 20% or reduce their grade.

The University must agree to your taking flexible retirement due to the affect that reducing your hours it may have upon your role/department and because in some cases LGPS will charge an employer cost to allow this.

To investigate this option, you would need to contact your Line Manager/HR. HR will then complete an FR1 form to start the process, request details of any employer costs and a quotation for you. Once you receive the estimate if you still with to proceed advise HR and they will help you with the university application process. 

If approved, then after claiming your benefits you could choose to remain in the scheme and continue paying pension contributions to build up further benefits or stop paying contributions.

If you are over age 55, you will be able to access your pension immediately and unreduced, as long as you have been in the pension scheme more than 2 years.  If you are under 55, then it will be frozen in the pension fund, and you will be offered it at age 60.

As the university has no fixed retirement date all you need to do is hand in your notice giving your reason for leaving as retirement. You need to give at least your normal notice period but can give more if you wish. The HR Team will then inform us, and we will inform County’s Pension department.

If you are about to retire you can also access a retirement process PDF from the Leicestershire County Council LGPS webpage. This PDF explains Leicestershire County Council’s Pension Section’s retirement process and when you can expect to receive your payments.

Your family enjoys financial security, with immediate life cover and a pension for your spouse, civil partner or eligible cohabiting partner and eligible children in the event of your death in service or if you die after leaving having met the 2-year qualifying period.  By completing the Death Grant Expression of Wish section on the membership form you can specify who you would like any lump sum payment to be paid to.

For further information, see what benefits will be paid if I die?

If you ever become seriously ill and you have met the 2-year qualifying period, you could receive immediate ill health benefits. If you wish to investigate ill health retirement you would need to be referred to the University’s Occupational Health Team for assessment.   If you are permanently incapable of returning to work due to illness/injury you and your manager, in consultation with your HR Partner, may wish for ill health retirement (IHR) to be considered.

Further information about the University’s ill health retirement process.

The Leicestershire County Council LGPS website.

Here you can also register for the online member service. Once you have registered for this you will be able to access details of your pension benefits online. You can also use the service to investigate a transfer in, register your beneficiaries for the Death grant/life cover benefits of the scheme, access retirement modellers and check that the scheme have your correct contact details.