Changes to the local government pension scheme

Published by Jill Insley on 29 October 2013.
Last updated on 29 October 2013

Houses of Parliament

The Local Government pension is the only scheme to implement changes in April 2014.The existing scheme is final salary and has an accrual rate of 1/60th of final salary for people who joined after 31 March 2008, and 1/80th (for those joining before April 2008). The new career average scheme will accrue benefits at a rate of 1/49th of each year's pensionable earnings.

The normal pension age for the new scheme remains the same at 65 for the time being, although it will rise in line the state pension.

Although members' average contribution rate remains 6.5%, the average hides changes for those in different earnings bands. Those earning lower amounts – up to £21,000 a year – will contribute the same percentage or slightly less than before. Those earning more will face rises, with the highest earners – on more than £150,000 a year – will see their contributions soar up to 12.5%.

Despite these increases, the reforms will reduce the average value of pension benefits by more than one third from 22% to 14% of the scheme member's salary, according to Pensions Policy Institute figures.

For examples of how the forthcoming changes will affect individual members, visit

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At the moment you are permitted to take your pension at 55 at a reduced rate are there any changes expected to this