Local Government Pension Scheme
The Local Government Pension Scheme (LGPS) is the main pension scheme for our staff (in non-teaching post) and most employees will be contractually enrolled at the start of employment, unless you choose to opt-out.
It is a Career Average Revalued Earnings (CARE) scheme - you build up a pension at a rate of 1/49th of the amount of pensionable pay you received in that scheme year. The amount of pension built up during the scheme year is then added to your pension account and revalued at the end of each scheme year, so your pension keeps up with the cost of living.
Full details of the LGPS can be found on the Kent Pension Fund website
Kent Pension Fund issue quarterly updates to employers in March, June, September and December.
These contain important information, and we strongly advise you to read these (you will need a password to access the employer area of the website - please see below).
Pension Pulse
Kent Pension Fund issue a newsletter to contributing members of the LGPS twice a year, in March and August. The newsletter is called Pension Pulse.
It provides updates of any changes to local government pensions and general information that you may find useful.
Read the latest Pension Pulse newsletter
MyPension online
MyPension Online is an online secure facility for members of the LGPS in Kent. It is separate from the Kent Pension Fund website. To use MyPension Online, you need to create an account with a personal email address.
Once you have created your account, you can:
- Read a summary of your pension account.
- Change your address.
- Change your expression of wish for payment of death grant lump sum (also known as nominations).
- Read, save or print your annual benefit statement.
- calculate projections for:
- voluntary retirement from age 55
- your deferred pension if you left the scheme.
Find out how to create an account or log in to MyPension Online
You pay, we pay
What you pay into your pension will depend on which pay band you are in and is based on the actual pay you earn. The pay bands are increased on 1 April each year in line with the cost of living.
The contribution rate you pay will be shown on your April payslip each year and again each time it changes. Should you feel the contribution rate is incorrect please see the appeals process.
View the latest pay bands and contribution rates
The employer’s contribution rate does not affect the pension that the members build up. The employer’s contributions pay the balance of the cost of providing members benefits. This is after taking into account investment returns.
Automatic enrolment
Auto enrolment is a government initiative to ensure working people have an opportunity to contribute to a workplace pension scheme.
The government introduced automatic enrolment legislation to encourage people to save for their retirement. This legislation requires all employers to enrol their workers into a workplace pension scheme.
Important information for employers
Kent Pension Fund website login and password
If you forget either of these please e-mail retirements@kent.gov.uk with your school name and the name of your payroll provider.
Retirement (including flexible retirement)
Retirement is when you decide you no longer want to continue working. Paying into a pension scheme whilst you are working will provide you with an income in retirement. Being a member of the LGPS also provides protection for your family - a lump sum death grant and survivors pension for your spouse, civil partner, eligible cohabiting partner and/or eligible children.
You need to have two years membership (may include transfer from previous pensions) of the LGPS to be eligible for pension benefits. (This is known as Vesting period).
Retirement - Normal Retirement Age (NPA)
Your NPA is the same as your State Pension Age (SPA) or age 65 if later. If you are a member of the LGPS retiring at NPA, providing you have met the two-year vesting period, you will receive pension benefits without any reduction. You can, however, defer drawing your benefits but you must draw them by age 75.
Early Voluntary Retirement (age 55+)
You can retire from age 55 without employers’ consent, providing you have met the two year vesting period, but your pension benefits will normally be reduced to take account for their early payment and the fact your pension will be paid for longer. How much they are reduced by depends on how early you draw them. The reduction is calculated in accordance with guidance issued by the Government Actuary's Department (GAD)
Find out how much your pension will be reduced by taking it early
Flexible Retirement (from age 55)
Flexible retirement gives you the opportunity to access your pension whilst still working by reducing your hours and/or grade. Permission is required by your manager, headteacher, chair of governors and you must reduce your salary so that your new income (salary plus pension) is less than you currently earn.
Early Retirement - Ill Health Grounds
If you leave work due to illness you may be able to receive immediate payment of your benefits. You will need to have met the two year vesting period and an Independent Occupational Health Physician must be satisfied that you will be permanently unable to do your own job until your normal pension age and that you are not immediately capable of undertaking gainful employment.
Early Retirement - Redundancy from age 55
If you are made redundant and are age 55 or over you must take your retirement benefits.