We recommend you update your browser to ensure a safe and engaging experience on our website.

Pension Scheme

As a new employee you will automatically become a member of the Local Government Pension Scheme (LGPS). Whether you’re full-time or part-time, you’ll pay a percentage of your actual pensionable pay into your pension each month. Please view the LGPS Pension Banding Table for 2020/21 (.pdf).

The good news is that we will also be contributing towards your pension.

You will be advised of your contribution rate in your employment contract and should contact the HR Support Team if you have any queries.

The contribution rates are reviewed regularly and changed from time-to-time and as a result there may be an automatic increase or decrease in your pension banding.  Your pension banding may also increase as a result of a pay increase including any incremental pay rises.    

You should have received an employee guide on the LGPS summarising the benefits of the pension scheme. Further details are available on the Dyfed Pension fund website.

The government has introduced a law designed to help people save more for their retirement.  It requires all employers to enrol workers into a work place pension scheme if they;

  • Are not already in one in respect of an employment, i.e. if you have previously opted out of our pension schemes;
  • Earn over £10,000 a year (or pro-rata per pay period) in that employment;
  • Are aged 22 or over; and
  • Are under State Pension Age.

The workplace pension scheme we provide is the Local Government Pension Scheme (LGPS) or the Teachers’ Pension Scheme (TPS) and both are qualifying pension schemes.

Joining the LGPS or TPS is one of the best ways to plan for your retirement, as it has an excellent range of benefits.

Please go to the Dyfed Pension Fund or Teachers’ Pension website for further information.

Joining the Local Government Pension Scheme (LGPS) is one of the best ways to plan for your retirement, as it has an excellent range of benefits, that includes:

  • A guaranteed index linked income payable for your lifetime from your retirement.
  • Added Life Cover from day one, as a tax-free death grant equal to 3 times your assumed pensionable pay is payable in accordance with your expression of wish, if you were to die while an active member of the scheme, and unlike other forms of life assurance, there’s no medical examination.
  • Survivor Benefits; payable to a spouse, registered civil partner or eligible co-habiting partner and any eligible children you may have, in the event of your death.
  • An option to convert pension to tax-free cash when you retire. For every £1 of pension that you give up you will receive £12 tax free cash (subject to certain HMRC limits).
  • A reduction in the amount of tax you pay, as contributions are taken from your gross pay before the deduction of income tax.
  • Your Employer making a substantial contribution to funding your retirement, something that they would be unlikely to do with any other personal arrangement.
  • No administrative fees being payable, as there may be with a personal pension; you simply pay a percentage of your pay.
  • No investment risk as the LGPS is a defined benefit scheme that’s regulated by statute, therefore you will get a guaranteed level of benefits when you retire.
  • Ill-health protection; if you were to become ill and unable to work your benefits may come into payment, and may also be enhanced (subject to a medical examination by the Fund Doctor).
  • Flexibility to retire from age 55 to 75.
  • An option to increase your benefits by purchasing additional pension or investing in Additional Voluntary Contributions (AVC).

In order to buy back lost pension for a period of unpaid leave (unpaid hours or days) you will need complete an online form via the Local Government Pension Scheme website at: http://www.lgps2014.org/.  

Before accessing the website you will need to know the value of your lost pensionable pay for your period of authorised unpaid leave. You will be able to view this on your payslip when the deduction is taken.  

Please note that you will need to complete all of the following details on the online calculator:

  • Gender - It is important this is completed correctly as the cost factors are gender specific
  • Date of birth - You must be between 16 and 74 to be in the LGPS. Enter a date in the format dd mm yyyy
  • Lost pensionable pay - Please enter the total pensionable pay ‘lost’ during your absence. This will be shown on your payslip and keep a copy for your confirmation.
  • Reason for absence - Please select from the valid reasons for absence shown. The reason must be confirmed. For industrial action please click on “trade dispute” from the drop down menu or for authorised unpaid leave click on ‘authorised unpaid leave’. If your reason for absence is not shown you cannot use this option but should use the extra pension option instead.
  • Section during absence - Click on ‘main section’ from drop down menu (unless you have made an election to contribute under the 50/50 Section of the Scheme)
  • Last day of absence – Please enter the date of the last day of the period of absence. This must be after 31st March 2014.
  • 30 day override box - Only tick this box if you are making an election to buy lost pension for authorised unpaid leave or unpaid additional child related leave more than 30 days after you have returned to work and your employer has given written agreement to extend the period that they are willing to contribute towards the cost (for elections made within 30 days of returning to work, the employer must contribute 2/3rds of the cost of buying back the lost pension.
  • Method of payment – Please select the method of payment you wish to use either regular or lump sum deduction from payroll or by lump sum direct to your pension provider on receipt of an invoice. Please check with Dyfed Pension Fund for the minimum amount for regular deductions to avoid your application being rejected. If you select lump sum deduction and the amount cannot not be reasonably deducted in your next pay period your application may be turned down.
  • Years - If you have selected regular deductions in method of payment please enter the number of years you wish to make payments over.
  • Pay frequency - If you have selected regular deductions in method of payment please enter the frequency of your pay which will also be the frequency of your payments. If you wish to recalculate using lump sum deduction please reset this field to blank by selecting ‘_’.
  • Full name - Please enter your full name
  • National Insurance Number - Please enter a valid national insurance number in the format aa123456aa
  • Employer - Please enter the name of your employer (Either Carmarthenshire County Council or if you are employed locally by a the name of the school)
  • Payroll Number – Use this and your job title to uniquely identify this post from any others you have.
  • Job Title – If you wish to purchase lost pension against multiple posts you will need to complete an application for each post
  • Email - Enter your email address in a valid format (optional).

Finally click on ‘Get results’ to calculate the cost of purchasing lost pension. Once you have completed the above on the online form and if you wish to proceed to purchase the lost pension. You will need to download the form by ticking the ‘Application’ box which confirms that the information entered is correct and that you have read and understood the terms and conditions for your additional pension applications.

Click on ‘Print application’ button on the bottom right hand side of the page.  This will transfer the details that you have entered into a pdf document. Please sign the declaration on this form and email or post it directly to:

E-mail: crpayroll@carmarthenshire.gov.uk
Payroll Section, Corporate Services Department, Building 14, St David’s Park, Job’s Well Road, Carmarthen, SA31 3HB.

Please read our Discretionaty Policy in respect of our Employer Discretions under the Local Government Pension Scheme (LGPS).  These discretions may be reviewed, due to changes to the LGPS regulations or by us and do not give any contractual rights.

You can also view the Dyfed Pension Fund Administering Authority discretions on their website

If you wish to opt out of LGPS membership an Opt Out Form is available from Dyfed Pension Fund website. Alternatively contact Dyfed Pension Fund, County Hall, Carmarthen SA31 1JP.

If you wish to opt out of the TPS membership an Opt Out form is available from the TPS website.

If you are a teacher you will automatically become a member of the Teachers’ Pension Scheme (TPS). You will be advised on the appropriate contribution rate on your employment contract and you contact the HR Support Team if you have any queries.

The good news is that we will also be contributing towards your pension.

Whether you’re full-time or part-time teacher, you’ll pay a percentage of your gross salary into your pension each month.

You can view the current TPS pension contribution rates for 2016/17 on the TPS website.

The contribution rates are reviewed regularly and changed from time-to-time and as a result there may be an automatic increase or decrease in your pension banding.  Your pension banding may also increase as a result of a pay increase including any incremental pay rises.    

Further information on the benefits of joining the TPS can also be found on the TPS website.

The Government has introduced a cap on the amount of money a public sector employer can pay when an employee leaves their employment. It is called the public sector exit cap, or £95k cap. It applies to employees leaving public sector employments from 4 November 2020.

In addition, the Government has recently consulted on a number of changes including:

  • limiting the amount of discretionary compensation, or severance pay, your employer can pay you, and
  • deducting any statutory redundancy pay from the amount your employer can pay to the pension fund on your behalf. If you are aged 55 or over and you are made redundant, or leave due to business efficiency, your employer normally pays towards the cost of you receiving your pension early.

We do not know if and when the Government will go ahead with these changes – they are only proposals at the moment.

If you are a member of the LGPS and want more information please view the member FAQs here.

 

 

Page updated: 09/03/2020 17:12:01