North East Scotland Pension Fund

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About the LGPS

LGPS

The Local Government Pension Scheme (LGPS) is open to those under the age of 75 and who have a contract of employment of at least three months. The Scheme is open to all employees of the scheduled bodies, except for those whose employment entitles them to belong to another statutory pension scheme (e.g. Police, Fire and Teachers). Employees of admitted bodies can join the scheme subject to their individual admission criteria which are out with the control of Aberdeen City Council. The Scheme is also available to Councillors.

How do I become a member?

All eligible employees are automatically entered into the LGPS unless they choose to opt out of the Scheme.

How much will I pay?

Your contributions will be a percentage of your earnings based on your rate of pay. If you are part-time, we use the full time equivalent rate - use our Pension Contribution Calculator to determine what rate you will pay.  You only pay contributions on what you actually earn.

What does my employer pay?

Your employer pays the balance of the cost of providing your benefits after taking into account investment returns. Every three years, an independent actuary calculates how much your employer should contribute to the scheme. The amount will vary, but generally the present underlying assumption is that employees contribute approximately one third of the scheme's costs and the employer contributes the remainder. However, increases or decreases in the cost of providing the scheme may, in future, need to be shared between members and employers, in accordance with guidance from Scottish Ministers.

How do I know if I am a member?

If you are a current member of the NESPF you will see pension contributions being deducted from your salary on your pay slip.

10 reasons for joining the LGPS

  • A pension based on your final pay
  • Your pension will increase in line with inflation
  • Voluntary retirement from age 60 (subject to reduction)
  • Option of tax free lump sum when you retire
  • Employer contributions share the cost 
  • Increase your pension with additional contributions
  • Ill health provisions
  • Death in service tax free lump sum of three times actual pay
  • Widow, widower, civil partner's or cohabiting partner's pension
  • Possible to retire at 55 and receive benefits immediately, with employer's consent (subject to reduction) or in full if made redundant or retired in the interests of business efficiency.

What happens if I leave?

If you change employment and have less than two years' membership, and have not transferred in other pension rights, you can receive a refund of contributions or transfer your benefits to another pension scheme.

If you change employment and have at least two years' membership in the LGPS, or have less than two years' membership but have transferred in other pension rights, the benefits you have built up can remain in the LGPS or be transferred to another pension scheme.

If you choose to leave your benefits in the LGPS, you will become a Deferred Member.

A guide to your options on leaving the Scheme can be found in our Publications Library.

Can I opt out?

The decision to stay in or opt out of the LGPS is entirely your own, but you should consider carefully before making a decision. Members of the LGPS have the security of guaranteed benefits, as well as valuable protection for their families. In addition, your employer contributes about two-thirds of the cost of your benefits; if you contribute to a personal pension plan you will have to bear the full cost yourself.

You can opt out of the LGPS at any time by completing and returning an Opt-Out form to your employer. The Opt-Out form is available from the Publications Library.

We recommend that you obtain independent financial advice before opting-out of the LGPS. You can re-join the LGPS at any time, provided at that time you have a contract of employment for at least three months and you are under 75.