What is a Local Government Pension Plan worth?

w00519772

I contributed to the local government pension scheme for 3 years and four months. My final salary was: £32,000. How can I calculate what this pension plan is worth? I am looking for a mathematical formula.

I am a long way off retirement. I am just interested to know what it is worth.

hyubh

w00519772 wrote: »

I contributed to the local government pension scheme for 3 years and four months. My final salary was: £32,000. How can I calculate what this pension plan is worth? I am looking for a mathematical formula.

I am a long way off retirement. I am just interested to know what it is worth.

On leaving you should have received a statement of deferred/preserved benefits, and every year thereafter an annual deferred benefit statement. If you haven't been, get in touch with the administrators, ask for the copies you missed, and update them with your current address details (they may also have an online facility nowadays - ask if they do, and if so, how to register).

That said, if the service was all before April 2008 the pension is 1/80 final salary (full time equivalent) + 3/80 lump sum; if the service was all after March 2008 the pension is 1/60 final salary and no standard lump sum; and if was straddling April 2008, then it would be part and part. Since you left it will have been increasing by CPI (specifically, the September figure applied the following April). It will continue to increase by 'official pensions increase' until the liability from the pension fund's point of view is extinguished.

PS - I originally answered not taking the question literally. Edited to not be so obtuse!

PPS - that said, if by 'worth' you were thinking of a transfer value rather than pension amount, then the link I gave originally does contain documents with the 'mathematical formulae' currently used: http://www.lgpsregs.org/index.php/dclg-publications/dclg-stat-guidance

Kynthia

If you're wanting to know how much you'll get approximately per annum then the scheme guide for whatever scheme you were in at the time will give you a formula you can use. However it would give you the value when you left and you'd need to index it up to today's value.

Or you could apply to the administrators for a quote.

GunJack

in it's simplest form, if it was the DB scheme, it'll be something like 1/80 x 32,000 pension plus lump sum of 3x pension, index-linked from when you left to normal pension age. I'm sure with more details, silvertabby or someone else can advise more accurately. As for a CETV, how big's a butter mountain??

System

Hi

SExSY + SExSY
...80.........60


Prior to 01/04/08 the formula was (and still is)

SE is ServicE 00/000 year and days 03/120 converted to a 6 place decimal

120/365 = 0.328767 + 3 = 3.328767 years

Divide by the scheme, which was 80 ths is 0.041609.

(at this point move the decimal point if you want to by 2 places and it gives the percentage amount 4.1609% of your salary)

x SY now multiply by your SalarY £32,000 and you get £1331.51, which is index linked to RPI/CPI as appropriate.

For the 60 ths scheme adjust accordingly.

A cell in LibreOffice might look like this....

=SUM(((120/365) +3) * 32000.00) /80

or this...

=SUM(((120/365) +3) * 32000.00) /60


With better start and end dates for the service period it may be that it spanned the schemes, and the years and days need to be adjusted.

Silvertabby

As above for pre and post 2008 service - but if you left on or after 1 April 2014 then you've got to factor in career average service at 1/49th.

If you have only recently left, then there's time for you to get a deferred benefit statement. After that, you'll get an annual benefit statement either on paper or by on-line access.

If you left some time ago but haven't received any information - have you changed address and not informed your LGPS provider?

Just a thought - are you asking for the current value of your pension, or are you after a transfer valuation? If it's the latter, you'll only get that by asking your LGPS as the conversion factors can and do change.