A proposed way forward for reform of the Local Government Pension Scheme has been agreed.

More information can be found on the Local Government Employers website

Pensions and tax

From 1 April 2012, the contribution bands on which members’ contributions are based will change.

Here are the new bands:

If your pay changes after April 2012

The rate you will pay from April will be based on your annual earnings (converted to whole-time equivalent if you work part-time). If a change in your pay occurs, after April, which results in you moving into a different earnings band, the decision to amend the rate of contribution you will pay rests with your employer.

On 26 October 2011, HM Treasury revised its guidance on the discount rate used to calculate the cash equivalent transfer value of public sector pensions. This meant that we could not provide and transfer calculations because we had to wait for information from the Government Actuary’s Department.

We have received some of the information we need, and can provide some transfer calculations. Unfortunately, the information is not complete so we cannot provide everything we would like to. Where we can, we are working through requests received over the last few months. For the moment, although we may be able to provide a transfer value or transfer of pension, there are likely to be delays.

We appreciate your patience whilst we wait to receive the information we need to complete transfers work. Please check this website for updates.

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A brief guide to the Local Government Pension Scheme (LGPS)

From 1 April 2012, the contribution bands on which members’ contributions are based will change.

Here are the new bands:

If your pay changes after April 2012

The rate you will pay from April will be based on your annual earnings (converted to whole-time equivalent if you work part-time). If a change in your pay occurs, after April, which results in you moving into a different earnings band, the decision to amend the rate of contribution you will pay rests with your employer.

Word version  140kb

PDF version  68kb

From 1 April 2012, the contribution earnings bands on which members’ contributions are based have changed.

The rate you will pay from April will be based on your annual earnings (converted to whole-time equivalent if you work part-time). If a change in your pay occurs, after April, which results in you moving into a different earnings band, the decision to amend the rate of contribution you will pay rests with your employer.

If the answer is no, please use this form to nominate someone to receive the death grant . This grant will be paid to your estate if you do not make a nomination.

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On 26 October 2011, HM Treasury published a revised guidance note on the discount rate used to calculate the cash equivalent transfer value of public sector pensions. The revision was necessary following the government’s announcement in June 2010 that the consumer prices index would be used to uplift state benefits and public sector pensions, rather than the retail prices index as had previously been used.

The immediate effect of this new guidance note is to invalidate all the current actuarial factors issued by the Government Actuary’s Department (GAD). This means it is not possible to run the following calculations:

• Cash equivalent transfer values in the LGPS, Fire and Police pension schemes
• Transfers in from private pension schemes to the LGPS, Fire and Police pension schemes
• Added years in the Police and Fire pension schemes
• CPD in the Fire pension scheme

We do not know when GAD will issue new actuarial factors, but it has been indicated that it will not be until at least January 2012.  

We will keep members informed via the latest news on our webpages.

Please note that this does not affect the calculation of retirement benefits, transfers in from other public sector schemes within 12 months of joining or transfers between LGPS funds.

2010/11 Hampshire Pension Fund annual reports and accounts

Hampshire Pension Fund leaflet

The Government has released new information regarding the future of public sector pension schemes, which can be found on the HM Treasury site.

HM Treasury website

This presentation explains the Local Government Pension Scheme implications for employees facing redundancy or re-deployment and can be used by employers as part of a re-structuring exercise. We have recently updated the presentation.

Retirement leaflet

On 26 October 2011, HM Treasury published a revised guidance note on the discount rate used to calculate the cash equivalent transfer value of public sector pensions. The revision was necessary following the government’s announcement in June 2010 that the consumer prices index would be used to uplift state benefits and public sector pensions, rather than the retail prices index as had previously been used.

The immediate effect of this new guidance note is to invalidate all the current actuarial factors issued by the Government Actuary’s Department (GAD). This means it is not possible to run the following calculations:

• Cash equivalent transfer values in the LGPS, Fire and Police pension schemes
• Transfers in from private pension schemes to the LGPS, Fire and Police pension schemes
• Added years in the Police and Fire pension schemes
• CPD in the Fire pension scheme

We will keep members informed via the latest news on our webpages.

Please note that this does not affect the calculation of retirement benefits, transfers in from other public sector schemes within 12 months of joining or transfers between LGPS funds.

The Government has released new information regarding the future of public sector pension schemes, which can be found on the HM Treasury site.

HM Treasury website

You can find more information here