Local Government Pension Scheme (LGPS)
The scheme is open to new and current employees of Dumfries and Galloway Council and certain employers who are admitted to the scheme.
Coronavirus (COVID-19) update
Will you have enough to live on in retirement? The Retirement Living Standards , based on independent research by Loughborough University, have been developed to help us to picture what kind of lifestyle we could have in retirement. The standards show you what life in retirement looks like at three different levels, and what a range of common goods and services would cost for each level. Please take time to read this information and consider your own circumstances, especially if you are not currently a member of the LGPS, are thinking you should pay more towards a pension or are considering transferring out of the LGPS.
Employees will automatically join the Scheme from their start date, provided they have a contract of employment of more than three months. You can opt in or out of the scheme at any time:
Pension Statement 2018
LGPS is an important part of your employment package and is a great way to save for the future. It provides a range of benefits:
- a secure pension when you retire, you pay pension contributions and your employer does too
- your pension is worked out each year with inflation added, so it keeps up with the cost of living
- the scheme is flexible, you can choose to pay less or more
- you receive tax relief on your pension contributions
- you have the option when you draw your pension to exchange part of it for tax free cash
- you can draw your benefits anytime between the age of 55 and 75.
- immediate life cover, ill health protection
- pension payable to dependents including spouses, civil partners, eligible cohabiting partners and children
Further information is available on each of the benefits from the scheme:
Member contribution rates are based on what you earn. You build up a pension at a rate of 1/49th of the amount of pay you received in that scheme year.
Reducing your contributions
You can reduce your pension contributions up to half through the 50/50 contribution option. This means you will only be building up half of your normal pension.
Increasing your contributions
If you want to increase your pension there are tax efficient ways to do this through Additional Voluntary Contributions (AVCs) and Additional Pension Contributions (APCs)
- Find out more on Additional Voluntary Contributions - An APC contract of 1 year or more will be refused if you do not submit the appropriate medical certificate with your application.
- Find out more on Additional Pensions Contributions
You can contact the Pensions team for further information on the AVC options and providers:
- Call 01387 273855
- Email Pensions@dumgal.gov.uk
85 Year Rule
If you are an existing member covered by transitional protection following the removal of the Rule of 85, retiring before your Normal Pension Age will entail a slightly more complicated calculation of benefits as it did when the LGPS 2009 was introduced. To have Rule of 85 protection you must have been a member of the LGPS on 30 November 2006.
You can leave employment and take your pension at any age on or after your 55th birthday but your benefits may be reduced. See the section entitled Local Government Pension Scheme and Retirement for further details.
Death Grant & Nominations
This is a tax free lump sum payable to a nominated individual upon your death and it is equal to three times your actual pensionable pay.
LGPS Latest News
June 2019 - Important Scheme Changes
The Key Changes:
- Member contributions cannot be made on or after the day prior to a member's 75th birthday.
- Where a member is on authorised leave for a continuous period of less than 31 days (other than through illness or injury) and has reduced pay or nil pay, then on their return they must pay their member contributions based on the pay they would have received but for the absence.
- All deferred members who have attained age 55 can elect to have their benefits paid out with immediate effect provided they are no longer in the employment which gave rise to the benefit. An individual with deferred benefits but now in a different local government employment would be able to access their benefits). Benefits taken prior to the normal scheme pension age will be subject to an early payment reduction.
- If a member retires on ill health grounds and prior to being retired has suffered a drop in pay from having worked reduced hours due to illness, then in calculating scheme benefits, no account is to be taken of the reduction in pay. This provision is effective from 1st April 2015.
- One of the conditions for paying a pension to a surviving partner has been relaxed. Previously, at the time of his/her death, a member had to have been legally free to marry/form a civil partnership for a period of at least 2 years. Now, the member only needs to have been free to marry/form a civil partnership at the time of his/her death.
Other conditions however continue to apply (e.g. the member and partner must have been living together as a married couple/civil partners for at least 2 years and have
been financially interdependent or the partner dependant on the member).
The full list of changes are contained in the Local Government Pension Scheme (Miscellaneous Amendments) (Scotland) Regulations 2019 (S.S.I. 2019/161).
This update is for information purposes only and does not override the statutory terms of the Scheme regulations.
General Data Protection Regulation (GDPR)
The Dumfries and Galloway Local Government Pension Scheme is a Data Controller under the General Data Protection Regulations. This means we store, hold and manage your ersonal data in line with statutory requirements to enable us to provide you with pension administration services. To enable us to carry out our statutory duty; we are required to share your information with certain bodies and do so in limited circumstances. This includes the Local Government Association where we share your National Insurance number in line with our security obligations and the principles outlined in the Information Commissioner Office's (ICO's) Data Sharing Code of Practice. As this sharing is necessary to comply with the law; consent need not be sought and members are unable to object to the sharing taking place.
Pre LGPS 2015 pension scheme
If you were a member of the LGPS before April 2015, different regulations will apply to your pension.
The Local Government Pension Scheme (Scotland) Regulations 2018 requires us to prepare, publish and review a communication policy.
You can contact the Pension Team for further guidance or to arrange independent financial advice through our providers:
- Email firstname.lastname@example.org
- Call 01387 273855
- Write to Pensions, Monreith House, Crichton Business Park, Dumfries, DG1 4ZZ
Your chance for feedback
Customer Service is very important to us. If you have recently been in contact with the Pensions Section we are keen to have your feedback on the service you received. Please take a few minutes to complete our survey.