As a member of the Local Government Pension Scheme (LGPS), you get valuable life cover and financial protection for your family, from the day you join.

There are two types of benefits that the GMPF could pay if a member dies:

1. Dependant’s pension: This is a regular payment to someone dependent on you at the time of your death. For example, a spouse, registered civil partner, or, subject to certain qualifying conditions, an eligible cohabiting partner. The GMPF may also pay children who are below a certain age or who meet other criteria.

2. A lump sum death grant: This is a lump sum, usually paid to the person who you choose to nominate.

In any event, it is essential to make an expression of wish nomination to the GMPF.

The Main Section monthly contribution amount will depend on the pay band your actual pensionable pay falls into.

Pensionable pay is your pay before deductions and includes basic salary, shift allowance, bonuses, all overtime, standby allowance, Maternity Pay, Paternity Pay, Adoption Pay, and any other taxable benefit specified in your contract as being pensionable.

Your employer will makes a monthly contribution to the GMPF, as determined by the Fund’s Actuary at each triennial valuation.

The payroll system assesses the contribution rate by taking your monthly pensionable pay and multiplying by 12. This determines your salary and the pay band it falls into each month.

The salary bands increase every year, in line with inflation.

Since 1st April 2014, the LGPS became a Career Average Pension Scheme. Each year, you build up pension based on 1/49th of the pensionable pay earned in that year. So, the pay earned in each tax year, from 1st April to 31st March, divided by 49, equals the amount of pension built up in that year. The GMPF locks the pension amounts into an account for you, and will increase with inflation each year, based on the previous September’s Consumer Prices Index. On a rare occasion there is negative inflation, the pension would decrease.

If you are in the 50/50 Scheme, the GMPF divide your yearly pay by 98, to work out the amount of pension built up.

If you take a period of authorised unpaid leave for 14 days or less, you will automatically pay the normal amount of pension contributions, had you not had the deductions to your pay for the unpaid leave. This means that for periods of 14 days or less, you will build up annual pension as normal. This is also the case for the purchase of additional leave.

However, if you take a period of authorised unpaid leave for 15 days or more, you will not pay pension contributions on the deductions to your pay for any of the leave days. So, the pension built up in that tax year will be lower than if you had not taken the unpaid leave. You can buy the ‘lost’ pension relating to this type of absence, via a process called a Qualifying Additional Pension Arrangement (QAPA).

The cost is based on the normal pension contribution that you would have paid, had you not been absent, you have 1 year to apply to buy the ‘lost’ pension for the whole absence period, and you must still be an active member at the point of application.

If you take a period of unauthorised absence of any length, we will deduct your pay for the appropriate number of days and you will not build up pension on the absence period, and you will not have the option of buying the lost pension.

There are two ways of building up additional benefits:

1. Paying Additional Pension Contributions to the GMPF from your monthly salary, to buy a set amount of annual pension. To get a quote, use the link at: Ways you can top up your pension - GMPF and contact the GMPF directly to proceed.

2. Paying Additional Voluntary Contributions to the Prudential from your monthly salary.

3. Some Authorities also have a Salary Sacrifice Shared Cost Additional Voluntary Contribution, with My Money Matters, invested with the Prudential. You choose how much you want to pay each month, and the Council will make a £1 contribution also. Not only do you make a tax saving, as you do not pay income tax on the shared cost AVC amount, but you also make a saving on National Insurance, as you do not pay NI contribution at 8% on the AVC amount either.

Normal retirement date is linked to your State Pension Age. It is the date when accrued benefits will be paid in full. You can leave your job and retire as early as age 55 (age 57 from April 2028) but the GMPF will reduce your annual pension by approximately 5% per year, for every year it is claimed before your state pension age.

You can give up some of the annual pension to take a one-off tax-free lump sum, up to the maximum lump sum permitted. This is a choice you can make at the time you retire.

For a full list of reasons for retirement and the associated rules and requirements for each one, please see the GMPF’s Guide for Members Members guide - 2026 (flattened).