Additional Voluntary Contributions (AVCs)

These are extra payments to increase your future benefits. You can also pay AVCs to provide additional life cover. All local government pension funds have an AVC arrangement in which you can invest money through an AVC provider, often an insurance company or building society. AVCs are deducted directly from your pay and attract tax relief.

Admission Body

An admission body is an employer that chooses to participate in the scheme under an admission agreement. These tend to be employers such as charities and contractors.

Automatic Enrolment Date

This is the earlier of:

  • the day you reach age 22 provided you're earning more than £10,000 a year in the job, or
  • the beginning of the pay period in which you first earn more than £10,000 in the job, on an annualised basis, provided you're aged 22 or more and under state pension age at that time.
Civil Partnership

A Civil Partnership is a relationship between two people (civil partners) which is formed when they register as civil partners of each other.

Club Transfer Rules

Club transfer rules allow certain occupational pension schemes, mainly public service pension schemes, to calculate transfers on a special terms. See the section transferring in for more information.

Consumer Price Index (CPI)

The consumer price index (CPI) is the official measure of inflation of consumer prices in the United Kingdom. This is currently the measure used to adjust your pension account at the end of every scheme year when you are an active member of the scheme and after you have ceased to be an active member. The adjustment ensures your pension keeps up with the cost of living.

Contracted Out

The LGPS was contracted out of the State Earning Related Pension Scheme (SERPS) and the State Second Pension (S2P) from 6 April 1978 to 5 April 2016. This meant that most people (up to their State Pension age) paid reduced National Insurance contributions for this period.

Designating Body

Designating bodies are bodies which can designate employees for access to the scheme. Employees of town and parish councils, voluntary schools, foundation schools, foundation special schools, federated schools, technical institutes, Transport for London, and the Children and Family Court Advisory and Support Service, among others, can be designated for membership of the scheme.

Final Pay

This is usually the pay in respect of your final year of scheme membership on which you paid contributions, or one of the previous two years if this is higher, and includes your normal pay, contractual shift allowance, bonus, contractual overtime (but not non-contractual overtime), maternity pay, paternity pay, adoption pay, and any other taxable benefit specified in your contract as being pensionable.

Normal Pension Age

Normal Pension Age is linked to your State Pension Age for benefits built up from April 2014 (but with a minimum of age 65) and is the age at which you can take the pension you have built up in full. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it's being paid earlier. If you take it later than your Normal Pension Age it's increased because it's being paid later.

Public Service Pension Scheme

A public service pension scheme includes a pension scheme covering civil servants, the judiciary, the armed forces, any scheme in England, Wales or Scotland covering local government workers, or teachers, or health service workers, or fire and rescue workers or members of the police forces; or membership of a new public body pension scheme.

Scheme Year

The scheme year runs from 1 April to 31 March each year.

State Pension Age

This is the earliest age you can receive the state basic pension. State Pension Age is currently age 65 for men. State Pension Age for women is currently being increased to be equalised with that for men and will reach 65 by November 2018. The State Pension Age will then increase to 66 for both men and women from December 2018 to October 2020. Under current legislation the State Pension Age is due to rise to 67 between 2026 and 2028 and to 68 between 2044 and 2046. However, the government has announced plans to link rises in the State Pension Age above age 67 to increases in life expectancy. You can use the Government's State Pension Age calculator to find out your state pension age.