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Information for IFAs

IFA - About the Scheme

The LGPS (S) is a statutory scheme; changes to the scheme can only be made through legislation laid down by the Scottish Government. The scheme was contracted out of the earnings related part of the state scheme until 5 April 2016 and revalues GMP at the full rate. The following shows the scheme basis, accrual rates and NPA for each set of regulations with a link to the full regulations.

Regulations

LGPS(S)

Basis

Accrual

NPA

Earliest retiral without reduction

1987

Effective 1/4/1988

Final salary

Pension 1/80th

Lump sum 3/80ths

Between age 60 and 65 when notional membership amounts to 25 years

Over age 60 +25 years membership

1998

Effective 1/4/1999

Final salary

Pension 1/80th

Lump sum 3/80ths

65

Over age 60 when age and membership together adds up to 85 or more

2008

Effective

1/4/2009

Final Salary

Pension 1/60th

No automatic lump sum but can given up pension for lump sum at 12:1

65

Over age 60 when age and membership together adds up to 85 or more if in scheme before 1/12/2006, otherwise age 65.

2014

Effective

1/4/2015

CARE (but see below)

1/49th of actual pensionable pay per year

Equal to New State Pension Age.

65 unless has transitional protection if a member before 1/4/2015

Anyone who was a member on 31 March 2015 and remained a member on 1 April 2015 will have transferred to the new CARE scheme. These members retain a final salary link for their pre-1 April 2015 membership. The final salary used is the “final pay” at date of leaving the scheme. Final pay is the average pay based over a year rather than actual rate of pay on leaving and means the best in the last three years of working.

Anyone joining the scheme from 1 April 2015 joins the current scheme. The earliest retirement date for a member to retire voluntarily is age 60 if they left the scheme before 1 June 2018 and reductions may apply. Members leaving the scheme after 31 May 2018 can take payment of their pension from age 55 but a reduction will apply. You can find information of the current scheme on the home page of the Lothian Pension Fund website.

You can find a scheme booklet on our publications section. The booklet includes tables showing actuarial reduction factors which may apply to early retirements.  Please note the TV factors are the transfer commutation factors and are set by GAD, the Government Actuary's Department. They are subject to change.

The scheme is funded by employer and member contributions as well as investments. You can find information on the Funding of the scheme on the How we invest section and you can find the latest Fund Actuarial Valuation report on our publications page.