The Local Government Pension Scheme (LGPS) is one of the largest public sector pension schemes in the UK. It's a nationwide pension scheme for people working in local government or working for other types of employer participating in the scheme.

In Scotland, the LGPS is administered by 11 local pension funds.

LGPS rules

The current 2018 scheme regulations were made under the Public Service Pension Schemes Act 2013. Changes to scheme rules are discussed at national level by employee and employer representatives but can only be amended with the approval of the Scottish Parliament. Your pension fund will keep you informed of any changes that are made.

The LGPS is a registered public service pension scheme under Chapter 2 of Part 4 of the Finance Act 2004. This means, for example, that you receive tax relief on your contributions. The LGPS also meets the government's standards under the automatic enrolment provisions of the Pensions Act 2008.

Key features of the scheme

The Local Government Pension Scheme (LGPS) is a valuable part of the pay and reward package for people working in local government or for the other employers participating in the scheme. It provides:

  • the opportunity to earn pension entitlement equal to 1/49th of your pensionable pay each year which is then adjusted annually for inflation
  • flexibility to pay additional contributions to boost your pension or  to pay half your normal contributions in return for half your normal pension
  • tax relief on all your pension contributions
  • the option to exchange part of your pension for a tax-free lump sum at retirement
  • valuable cover for your dependents if you die in service or if you die after completing the two year qualifying period
  • access to early retirement options (once you've completed the two year qualifying period) if you're unable to work due to ill health
  • immediate access to your benefits if you're made redundant or retired in the interests of business efficiency at or after age 55, provided you've been in the scheme for at least two years
  • access to some or all of the benefits you've already built up, if you reduce your hours or move to a less senior position at or after age 55, as long as you've been in the scheme for at least 2 years (although your benefits may be reduced for early payment).

To find out more contact your scheme administrator who will be able to advise on your own particular circumstances.