The changes are extensive and, in some cases, the details are still to be confirmed. However there is an LGPS 2014 leaflet which outlines the key points of the new scheme, and a 2014 scheme website dedicated to explaining what the new arrangements will mean for you.
Some of the principle changes are:
- The move from a ‘Final Salary’ scheme to a Career Average Revalued Scheme
- Normal pension age is moving from 65 to your State Pension Age
- Staff on salaries above £43,000 will pay higher contributions
- The pension accrual rate is improving from a 1/60th calculation to a 1/49th calculation
- Pension will now be deducted on almost every item of pay, including casual overtime
Not everything is changing, however, and it is important to note that all of your benefits built up in the scheme to 31 March 2014 are protected. A presentation on the changes (given at the March 2014 staff briefing sessions) is available to view below.