Reporting Pensions newsletter
Your quarterly newsletter containing statutory pension information.
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Issue: Spring 2025
Change in contributions rates
Both you and your employer pay contributions to pay for your LGPS pension. How much you pay depends on how much you earn. You will pay between 5.5% and 12.5% of your pensionable pay.
Every April your employer will decide your contribution rate. If you have more than
one job, your employer will set your contribution rate separately for each job.
If your pay changes throughout the year, your employer may decide to review your contribution rate at that time, rather than wait until the following April.
Your Payroll contact will be able to tell you how and when your contribution rate may change during the year.
You also have the choice to pay half your normal contribution rate and build up half your normal pension whilst retaining full life and ill-health cover. This is called the 50/50 section of the LGPS. If you would like to investigate this, please speak to your Payroll contact.
The table below shows the pay bands and contribution rates that apply from April 2025:
| Actual pensionable pay | Main section contribution rate | 50/50 section contribution rate |
|---|---|---|
| Up to £17,800 | 5.50% | 2.75% |
| £17,801 to £28,000 | 5.80% | 2.90% |
| £28,001 to £45,600 | 6.50% | 3.25% |
| £45,001 to £57,700 | 6.80% | 3.40% |
| £57,701 to £81,000 | 8.50% | 4.25% |
| £81,001 to £114,800 | 9.90% | 4.95% |
| £114,801 to £135,300 | 10.50% | 5.25% |
| £135,301 to £203,000 | 11.40% | 5.70% |
| £203,001 or more | 12.50% | 6.25% |
LGPS in the news
You may have seen in the media that we have recently received a letter from the Government in response to the Fit for the Future consultation, which is a proposed package of reforms to strengthen the management of LGPS investments. The letter makes some recommendations on the future of our investments here in Oxfordshire.
We are assessing the implications of this letter and are working closely with our partner funds in the Brunel Pensions Partnership. Your LGPS pension benefits remain secure and are unaffected.
Legal & General AVCs
If you pay Additional Voluntary Contributions to Legal and General, there is now an app which you can download, making your AVCs easier to manage. The app is:
- Safe and secure – Use fingerprint, face or PIN technology to log in securely.
- Easy to use – Check your valuation, contributions and investments in just a few taps.
- On the go – Instant access to your pension, whenever and wherever you need it.
How to get started:
Register for an online account to get started. You can do this at the same time as setting up the app – just follow these simple steps:
- Download the app by visiting the App Store or Google Play and searching for ‘Legal & General’.
- Log in or register for an online account.
- Set up your PIN and any security features. For more information about Legal and General AVCs visit https://www.legalandgeneral.com/workplace/_avc/oxfordshire/
For more information about your other options to pay extra into the LGPS visit https://www.lgps member.org/your-pension/paying-in/paying-more/
The LGPS and market conditions
The Local Government Pension Scheme is a defined benefit arrangement which means it is a secure and reliable pension regardless of market fluctuations. Unlike defined contribution plans, where your pension depends on investment performance, the LGPS guarantees a specific pension benefit at retirement because your pension is calculated based on your salary and your years of service.
The stability of the LGPS comes from the way it is funded and managed. The Fund and your employer are responsible for ensuring that there are always sufficient funds to meet future pension obligations. The fund is professionally managed to minimise risk and ensure steady growth even during market downturns, and there a Fund “health check” (called a valuation) carried out every three years to make sure that all members will receive their promised benefits in the future.
Your LGPS pension is secure regardless of national or global economic conditions and is unaffected by the ups and downs of the market.
Change to minimum pension age
Under the current rules, the LGPS cannot pay pension benefits to members until they reach the age of 55, except on ill health grounds.
The UK Government has announced that the earliest age you can take your pension will increase from age 55 to 57 with effect from 6 April 2028. This does not apply if you have to take your pension early due to ill health.
It is possible you could be protected from this increase if
- you joined the LGPS before 4 November 2021 and/or
- you transferred a previous pension into the LGPS
if certain conditions are met.
However, the UK Government (who makes the LGPS rules) has not yet confirmed who will qualify for protection. Watch this space for more information.
Annual increase to your LGPS pension
How much pension you build up in the LGPS is based on your pay. 1/49th of your pensionable pay (or 1/98th if you are in the 50/50 Section) is put into your pension account every year and at the end of each year, your pension account is adjusted in line with the cost of living.
The rate of this adjustment is currently linked to the Consumer Prices Index (CPI) based on the previous September. The September 2024 CPI rate was 1.7%, so your pension account was increased by 1.7% on 1 April 2025. If you have more than one job, you will have a separate pension account for each employment. Head over to https://www.lgpsmember.org/your-pension/the-essentials/ for more information and to watch our Pensions Made Simple video.
You can also see check up on how your pension is growing by logging into your secure online pension account at https://oxfordshire.pensiondetails.co.uk
Pensions dashboard
You may have heard talk or seen information in the media about a new Pension Dashboard that the government is planning to launch.
All pension schemes in the UK with more than 100 members, including the LGPS, must connect to a dashboard. This will mean that you will be able to view all your pension information, including your State Pension, securely, online and in one place.
It will also mean that you can see pension pots that you may have lost contact with or forgotten about.
Public sector schemes like the LGPS must connect by 31 October 2025 but go-live for members will be later than this, the date has not yet been confirmed.
Do you need to do anything?
There is nothing for you to do. At the moment, employers and pension teams are working to make sure that member data is up-to-date and correct, and that the technology is all in place. Just make sure you let us know if you change your home or email address.
Useful links
National LGPS members website - www.lgpsmember.org
Detailed scheme member guide Oxfordshire Pension Fund - www.oxfordshire.gov.uk/pensions
Legal and General – top up your pension Fund -www.legalandgeneral.com/oxfordshirepensionfund/
Advisory services
Money Helper - https://www.moneyhelper.org.uk/en
The Pensions Regulator - www.thepensionsregulator.gov.uk/
State pension planning and forecasts - https://www.yourpension.gov.uk/
Be ‘scamsmart’ – find out more on how scammers work and get advice on the FCA’s website https://www.fc t/how-avoid- pension-scams