Answers · UK 2025/26

How does the Local Government Pension Scheme (LGPS) work?

The LGPS is a career average defined benefit pension. Since 2014, you accrue 1/49th of your pensionable pay each year, revalued by CPI. Normal Pension Age is the State Pension Age (67). Employee contributions are tiered 5.5%-12.5%, with employers typically contributing 15-20%+. On £30,000 for 25 years, you earn roughly £15,306 per year.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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The Local Government Pension Scheme (LGPS) in England and Wales moved to a career average revalued earnings (CARE) structure on 1 April 2014. Under this arrangement, each year of active membership you build up a pension equal to 1/49th of your actual pensionable pay for that year. The annual slices are revalued each April in line with CPI to protect their real value. The Normal Pension Age (NPA) is linked to the State Pension Age, currently 67. You can retire from age 55 (rising to 57 in 2028) with an actuarial reduction, or take your pension early on health grounds (ill health retirement) at any age. Employee contribution tiers for 2026/27 run from 5.5% on earnings up to £17,600, rising through seven bands to 12.5% on earnings above £113,400. Employers contribute whatever is required to fund the scheme -- typically 15-20% or more, based on triennial actuarial valuations. The LGPS also provides a survivor pension of 1/160th of your pay for each year of service, paid to an eligible partner on your death. Worked example: a council worker earning £30,000 per year for 25 years accrues 1/49 x £30,000 x 25 = £15,306 per year (in today's money). At retirement you can take a tax-free lump sum by commuting pension at a 12:1 rate. The LGPS 50/50 section is available for members who want to build up benefits at half the rate (1/98th) in exchange for halved contributions -- useful for those under financial pressure. Members in the final salary pre-2014 section retain those benefits accrued to 31 March 2014. As with other public sector schemes, the McCloud remedy applies if you were an active member before April 2012.