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?

How much you pay is based on how much you earn. From 1 April 2015, if you are part time your contributions will be based on what you actually earn not your full time equivalent. You can use our Pension Contribution Calculator to determine what your contribution rate is.  You only pay contributions on what you actually earn.

What does my employer pay?

Your employer pays around twice what you pay to cover the cost of providing your benefits.  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

  • Your pension is underwritten by Government, making it guaranteed by law
  • A pension based on your career average pay
  • A pension payable for life when you retire that will increase in line with inflation
  • Voluntary retirement from age 60 (subject to reduction)
  • Option of a tax free lump sum when you retire
  • Your employer pays in too, covering 2/3rds of the cost 
  • Option to pay more or less - you can boost your pension by paying more or if times are tough, you can reduce your contributions
  • Ill health, flexible and redundancy and efficiency retirements available too
  • Death in service tax free lump sum of three times actual pay and pensions payable to your dependents
  • 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.