Hampshire Pension Services

Administering the Local Government Pension Scheme, Police and Fire schemes

Scheme benefits

Hand catching coins

What else should I know?

  • The LGPS is a statutory scheme with benefits set out in law making it very secure.
  • Its regulations are issued by the Department for Communities and Local Government (DCLG).
  • The benefits you build up in the LGPS are guaranteed and don’t depend on the investment performance of the scheme


What are the scheme benefits?

  • A choice of tax free lump sum when you retire - subject to maximums
  • An annual pension on retirement based on pension you build up
  • The ability to pay 50% of your contributions for 50% of the pension benefits
  • The ability to increase your pension by paying extra contributions
  • Voluntary retirement from age 55, subject to reductions
  • An ill health pension from any age (subject to qualifying service for a period of two years)
  • A death in service lump sum of three times your pensionable pay
  • A widow’s, widower’s, civil partner’s or co-habiting partner's pension in the event of death
  • Children’s pensions for eligible children in the event of death

How is my pension calculated?

From 1 April 2014 the scheme has changed from a final salary scheme to a career average scheme.

  • For every year you are in the new scheme, you will build up a pension based on your pensionable pay in that year.
  • For each scheme year that you are a member, a pension equal to a 49th of your pensionable pay will be added to your pension account.
  • Inflation increases will be added to ensure that your pension account keeps up with the cost of living.

For example:

Ben is in the main section of the scheme from 01 April 2014 to 31 March 2015 and earned £24,500 in that year.

Scheme Year


Section of the scheme


Rate of build up


Pensionable Pay


Amount of pension built up

£500 (i.e. £24,500 divided by 49)

So at the end of the scheme year, £500 is added to Ben’s pension account.  However, to ensure that the pension keeps its value, the total pension account will be adjusted in line with the cost of living (CPI – Consumer Price Index).  If inflation was say 3%, Ben’s total pension account would be increased on 1 April 2015 to £515.

If Ben had been in the 50/50 section for the year ending 31st March 2015, the pension benefits he would have built up would have been half the amounts shown above.

Pension benefits prior to 1 April 2014

As the scheme regulations changed on 1 April 2014, pension benefits built up before this date will be calculated differently.

What information will I receive about my pension?

You will receive an annual benefit statement each year giving you a summary of your benefits to date.

Producing a summary of your benefits involves a lot of work as we have to get accurate information from your employer. If you need a statement of your benefits and think your annual benefit statement is not suitable then please let us know.