Local government pension scheme

[Runaround50]

Just about to ring the pensions department, but can anyone help?

I've been enrolled in a LGPS for just 3 years.
My monthly pension contributions are £73.

However, it states that 1/49 of my annual pensionable salary, is what is paid into the pot at the end of each financial year. My £73 per month x 12 is more than 1/49 of my annual pensionable salary, so where does the rest of the money go ( or am I missing something fundamental?)

I work in a school.

Thanks.

It also - correct me if I’m wrong - will pay out earlier if you become ill/disabled

Yes there are three tiers of ill health retirement, depending on severity of illness. The top tier will enhance your pension up to your normal retirement age as if you had carried on working.

It comes with Life Assurance too, so that if you were to die before you retired, a lump sum of x 3 of your salary would be paid to your family. Please log onto your pension portal and find the Death in Service nomination form and make your wishes known as to who would like the money to go to. You can choose more than one person.

As PP, it is an excellent scheme.

It's excellent - pretty much the only thing about my job that's keeping me there rn .

@JamMakingWannaBe Just looked at that form.
I have nominated my two children, 50% each.
Is that the correct form you mean?

I had this same confusion - and had the same thought of - I've paid in way more than this why is my pot so low ?!

They explained to me that I am paying to be part of it & that the amount I get out would be forever rather than having a pot that would run out.

So each of your children would receive 1.5x your annual pensionable pay.

Do you have a husband/partner? Would they be able to afford to bring up your children without your income?

It's entirely your personal choice, but if you have a DH/DP I would suggest leaving some of the lump sum to them too.

@JamMakingWannaBe Yes I have a partner. We cohabit. I've submitted a new form, so that he is the sole beneficiary. Also filled out the cohabitation form. The children are provided for, from other funds.

Thanks 👍

Just so you are aware. For your partner to be entitled to a pension (not the death grant) he will need to provide several pieces of evidence should you pass away such as council tax bills, bank statements etc going back at least 2 years

@Polkadotties yes all paperwork is in order.
Financially interdependent, cohabiting for 15 years, not lived with anyone else.

it’s one of the best and like you, pretty much the only reason that at 52 with 31 years in it, I’m still there!

I joined the scheme just 2 years ago but I’m very pleased with what my investment has given me so far. It’s by far the best pension scheme I have ever been in. I’m currently negotiating a large pay rise which if goes my way will mean I’m able to contribute more into pension which will be great as my DH is older than me so will be wanting to retire earlier than me so hopefully by the time that comes I will have enough in my pot to retire too.

You will get that 1/49th every year after retirement until you die. So 'number of years worked' × '1/49th of salary' potentially paid to you for 30+ years.