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For members of the Local Government Pension Scheme in England and Wales
What happens to my LGPS pension from State Pension Age?
This news article was published on 17 Dec 2021
The way your pension increases could change when you reach State Pension Age. This will apply if you reached State Pension Age before 6 April 2016 and you have a period of LGPS membership between 6 April 1978 and 5 April 1997.
As a member of the LGPS you paid a reduced rate of National Insurance and were ‘contracted out’ of the State Earnings Related Pension Scheme for any LGPS membership between 6 April 1978 and 5 April 1997. The LGPS guarantees to pay you a pension that is at least as much as you would have received from the State Earnings Related Pension Scheme. This is known as the Guaranteed Minimum Pension or GMP. The GMP forms part of your LGPS pension, it is not paid in addition to it.
From your State Pension Age, payment of the increases to your pension may be shared between your LGPS pension fund and the Government. This is because the Government is responsible for paying part of the cost of living increases on your GMP. The GMP part of your pension will receive a full increase even if the rest of your pension is receiving a proportion of the increase because you took payment of your pension part way through the year.