Pensions for councillors

The LGPS for councillors is a defined benefit Career Average Revalued Earnings (CARE) scheme and is guaranteed by law. The calculation of your pension is based on the time you have been a member of the scheme and your average allowances during your period of membership as a councillor.

Below is a brief overview of the key elements of the Scheme for councillors in England and in Wales.

Councillors in England

Access to the LGPS for councillors in England was closed from 1 April 2014 to 10 May 2026. The key elements of the councillors’ pensions section from 11 May 2026 are as below:

 

·         Joining the scheme – Councillors of principal local authorities, elected mayors and deputy mayors and London Assembly members can elect to join the LGPS. If you make an election to join, you will be admitted from the beginning of the next pay period. To elect to join the scheme, contact us.

 

·         Benefits – Your benefits build up on a career average basis at 1/49^th of your allowances for each year of your scheme membership. At retirement you have the option of taking some of your pension as a one-off lump sum. For every £12 you take as lump sum, you give up £1 in annual pension.

 

·         Contributions – As a member, you pay contributions to the Scheme on your basic allowance and any special responsibility allowances. Contribution rates are banded based on your actual allowances and the current contributions rates can be found here. If you wish, you can reduce your contributions by using the 50/50 section.

 

·         Retirement benefits – If you leave the LGPS with at least two years’ membership, you will be entitled to a pension when you retire. Your normal pension age is the same as your State Pension Age (which you can find here). You can retire between the ages of *55 and 75, and your pension will be paid at a reduced rate for early retirement or at a higher rate for late retirement.

 

·         Other benefits – There are ill-health pension options if you are unwell and cannot continue in your position. If you die, a death grant and a survivor’s pension may be payable.

 

·         Transferring benefits – Whilst you are not allowed to join up other employee LGPS memberships you have with your councillors’ LGPS pension, you can join up multiple periods of LGPS councillor membership with each other. When you leave the scheme, you can choose to transfer your pension to another scheme as long as you meet certain legal criteria.

 

As a councillor member of the Scheme your employer cannot buy you additional pension, and you cannot have your pension put into payment early on redundancy grounds, as councillors cannot be made redundant.

*The government has announce that the normal minimum pension age will increase to age 57 from 6 April 2028. The details of how this will work for the LGPS are still to be confirmed - however the government has proposed that people who were LGPS members before 4 November 2021 will remain able to take their pension from age 55 after the changes are made.

Councillors in Wales

·         Joining the scheme – Councillors of Welsh councils can elect to join the LGPS if the council’s scheme of allowances permits this. If you make an election to join, you will be admitted from the beginning of the next pay period. To elect to join the scheme, contact us.

·         Benefits - Your benefits build up on a career average basis at 1/80^th of your pay for each year of your scheme membership. At retirement you will be entitled to a tax-free lump sum. Your lump sum will be three times your annual rate of pension.

·         Contributions – As a member, you pay 6% contributions to the Scheme on your basic allowance and any special responsibility allowances.

·         Retirement benefits – If you leave the LGPS with at least three months’ membership, you will be entitled to a pension when you retire. Your normal pension age is 65. You can retire between the ages of *55 and 75, and your pension will be paid at a reduced rate for early retirement or at a higher rate for late retirement.

·         Other benefits – There are ill-health pension options if you are unwell and cannot continue in your position. If you die, a death grant and a survivor’s pension may be payable.

·         Transferring benefits – Whilst you are not allowed to join up employee LGPS memberships you have with your councillors’ LGPS pension, you can join up multiple periods of LGPS councillor membership with each other. When you leave the scheme, you can choose to transfer your pension to another scheme as long as you meet certain legal criteria.