Local Government Pension Scheme

How you might be affected

• Will my pension increase?

  There will be no change to your pension until you take it. This means that any adjustment for early or late payment can be taken into account when your pension fund compares your career average and final salary pensions.

  Most members are unlikely to see an increase to their pension. Where there is an increase, it is likely to be small. This is because most members build up a higher pension in the career average scheme than they would have built up in the final salary scheme.

• What do I need to do?

  You do not need to take any action. If you qualify for protection, the underpin will apply to you automatically. You do not need to make a legal claim.

  Your pension fund may need information from you to work out whether you are protected. This is more likely if you were a member of another public service pension scheme before 1 April 2012 and you did not transfer that pension to the LGPS. It is important that you read any letters from your pension fund carefully and give them the information that they ask for.

• Is the underpin more likely to affect certain members?

  Most members will not see an increase in their pension because the pension they build up in the career average scheme is better than the pension they would have built up in the final salary scheme.

  The underpin is more likely to mean an increase to your pension if:

  • your pension is adjusted because you are taking it early and your State Pension age is older than 65
  • you have a significant pay rise later in your career
  • you transfer protected pension benefits to the LGPS from another public service pension scheme and your new pay is higher than the pay you were on when you left the other scheme
  • when you leave the LGPS, you elect to use a three year average salary to work out your final pay. This would make an increase more likely only if the three year period ended before or during the remedy period.

  Even if one or more of these applies to you, there is no guarantee that the underpin will mean an increase to your pension.

• When will my pension fund check that my pension is correct?

  From 1 October 2023, your pension fund will review the records of members protected by the underpin. They have thousands of records to check and the process will take many months.

  Your pension fund will include information about the underpin in 2025 annual benefit statements for most active and deferred members. They must issue these statements by 31 August 2025. It may not be possible for your pension fund to provide underpin information in 2025 statements. This could be the case if they are waiting for information from your employer, or about a pension transfer that has been completed. If you are in this group, your pension fund will let you know by 31 August 2025. They will include underpin information in 2026 statements.

  The Government has recommended that pension funds review pensions in payment as a priority. However, the rules changes are complex and your pension fund may need further information before they can work out the pension you are now entitled to. They will need further information if you:

  • built up protected benefits in more than one public service pension scheme, or
  • were a member of the LGPS in more than one pension fund.

  Your pension fund may need more information from you if your older pension benefits have not been transferred to the LGPS. It is important that you read any letters from your pension fund carefully and give them the information that they ask for.

  If your older pension benefits have been transferred to the the LGPS, your pension fund will need more information from the administrators of the scheme you transferred from. If your pension includes a transfer, it will take your pension fund longer to check it.