LGPS - Final Salary Calculation query

Neil_Graham

My wife has been employed by the local council for many years and is considering leaving very soon. She is in the LGPS and has two portions: a final salary element from her early years and a career average element from her later years. Our query is what is the final salary calculated on? We see there could be three possible answers: (a) her contractual salary on the day she leaves; (b) her actual salary for the final 12 months of employment; or (c) the actual salary from the previous full tax year. 

This question is particularly important as she had a three month career break at end of 2019 and doesn’t want to lose any pension entitlement due to the timing of her departure. Thanks in advance. (P.S. Yes we have written to the scheme administrator but don’t expect an answer this side of Christmas..!!)

Silvertabby

This only refers to the final salary bit which, despite ending in 2014, will still be calculated using the pensionable pay as at the day of leaving.  The straightforward answer is that it will be your wife's pensionable earnings in her last 365 days of service, uprated to the whole time equivalent.  However, it all depends on how your wife's LGPS treat her 3 month career break.  Depending on the nature of the break, they may use the last 365 days of actual service or they may use a previous year's pay if she qualifies for a best pay calculation( and that gives her a better result).  Only her LGPS can give her the definitive answer to this - has she tried ringing them?

Post 2014 CARE service is easy - it's just her actual salary.

Note the difference between pre and post 2014 pensionable pay.  Briefly, pre 2014 is usually contractual pay only, with extras such as overtime being non-pensionable.  Post 2014, virtually everything counts. 

Neil_Graham

Silvertabby, thanks for your answer. She went back after her career break on Dec 18, 2019.... so reading your answer I just need to make sure she doesn't leave before Dec 18, 2020!! Thanks again

Silvertabby

How old is she?  If she has any Rule of 85 protections in respect of her pre 2008 service, she will forfeit some of them if she leaves before 60.