Hampshire Pension Services

Administering the Local Government Pension Scheme, Police and Fire schemes

Contributions and benefits

Since the 1 April 2008 your pay contributions are based on your pay banding. Your employer will tell you which pay banding you are on. You also benefit from reduced tax and NI contributions, which means that joining the scheme costs less than you think!  

The new rates for 2012/13 have been released and will apply from 1 April 2012.

Band Whole - time equivalent pay band (2012/13) Contribution rate
1 Up to £13,500 5.5%
2 £13,501 to £15,800 5.8%
3 £15,801 to £20,400 5.9%
4 £20,401 to £34,000 6.5%
5 £34,001 to £45,500 6.8%
6 £45,501 to £85,300 7.2%
7 More than £85,300 7.5%

 

As the scheme regulations changed on the 1 April 2008, there are two formulae for calculating your pension if you have services prior to this date.

For service after 1 April 2008

Your pension is calculated by using a simple formula:

Annual pension

Your final pay ÷ 60 x the number of years you have been in the scheme.

Lump sum

There is no longer an automatic lump sum. Instead you can commute (or give up) £1 of pension for £12 of lump sum.

For service prior to 1 April 2008

Your pension is calculated by using a simple formula:

Annual pension

Your final pay ÷ 80 x the number of years you have been in the scheme.

Lump sum

Your final pay ÷ 80 x 3 x the number of years you have been in the scheme.

Relevant for service prior to and after 1 April 2008

If you work part time, the number of years that count in your pension calculations are pro-rated.

  • if you work 10 years half time, this will count as five years service.

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

 

Useful links

 

You may be able to transfer pension rights into the Local Government Pension Scheme (LGPS) from:

  • a previous LGPS fund
  • a previous employer's pension scheme (including an overseas occupational pension scheme)
  • a self-employed pension plan
  • a 'buy-out' policy
  • a personal pension plan
  • a stakeholder pension scheme

You may not transfer benefits into the LGPS which are derived from a pension credit or from previous membership in the LGPS as a councillor or mayor. Pension credit refers to benefits granted to a spouse by a court under a Pension Sharing Order or by a qualifying agreement in Scotland following a divorce or annulment of marriage.

Arranging a transfer

The transfer of your benefits needs to be completed within 12 months of you joining the Hampshire Pension Fund, otherwise the terms will worsen or you may not be able to transfer at all.

The transfer process is described in detail in the Pension Transfer Booklet which your employer should provide you with when you join the LGPS. If you do not have this booklet you should request a copy from your employer. Alternatively you can access a PDF copy from our Forms page.