Is a Local Government Pension Scheme Right For You

local government pension scheme

Administration is carried out via a network of local government pension schemes including the West Midlands Pension Plan and the Greater Manchester Pension Fund. All these plans are administrated by a national body called the National Benefits Council. All UK local authorities are legally bound to comply with certain benefits set out in this legislation. The main features of the scheme are as follows:


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All employees receive the same kind of pension at each retirement age. This can either be an individualized, or a fixed rate, monthly pay. Depending on the type of pension that a local government employee receives, he can choose between a benefit that matches his earnings or that of another employee of the local authority who has a similar profile.

Contribution limits

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There are various contributions options available under the LGPS. The various contributing options depend on the type of pension a local employer offers. In addition, the level of contributions to a pension scheme also differs between large and small business employers.

Provider choices

A major feature that sets apart this pension scheme from other ones is the wide variety of choices that an employee can make when enrolling. Large and small local authorities have significantly different choices, while larger companies have more freedom to select their own providers. The types of providers are as follows:

Teachers. Teachers are covered under the pension scheme of the local authority. This covers both permanent and contractual teachers, but not teaching professionals like education experts or school administrators. The local authorities offer two types of pensions to these kinds of teachers: the central fund and the local fund.

Police Officers And Firefighters

A limited number of schemes to cover the services of these highly trained professionals. In the UK, police officers and firefighters are covered by a central fund provided by the government. In local authorities, the fund is administered by a local government officer.

Providers Of Local Public Services

In local government, the local authority usually provides its employees with a limited pension, which is paid on a monthly basis. A large number of employers in such bodies also provide their employees with a supplement to these pensions. These supplements are based on factors like the locality, size of the local authority, the economy, and many more. A few employers go out of their way to give local government employees a lifetime free choice of choosing a suitable lifetime annuity.

Summing Up

The deductions. Unlike many other pension plans, the NGHP does not limit the number of contributions that you can make to your pension fund. This means that you can take advantage of the best pensions available without worrying about how much money you’ll have left over after retirement. The local government pension scheme is well-managed and provides both low and high-quality pensions; therefore, if you are thinking of investing your money into a pension scheme in your local area, this could be one of the best options for you.

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