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Beds Pension Fund > Active members > How is my pension worked out?

How is my pension worked out?

The Local Government Pension Scheme (LGPS) is a 'career average' scheme.  Every year, you build up a pension at a rate of 1/49th of the pensionable pay you received in that scheme year if you are in the main section of the scheme (if you choose to move into the 50/50 section of the scheme you will pay half the normal pension contributions and build up half the normal pension amount).  The amount of pension built up during the year is then added to your pension account and re-valued at the end of each scheme year so your pension keeps up with the cost of living.


The national website for LGPS members has a short video and an example to explain how your pension works. 


If you are a member of the Bedfordshire LGPS you can also sign up to our online service for members, My Pension Online, to use our benefit calculators. 


When you retire you will have the option to exchange part of your annual pension for a one-off tax-free lump sum.


If you joined the LGPS before 1 April 2014, your benefits for membership before 1 April 2014 were built up in the final salary scheme and are calculated differently, using your membership built up to 31 March 2014 and your final year's pay.  The national LGPS member website had more information about how benefits built up before 1 April 2014 are worked out.


The pension fund can give you an estimate of your pension benefits - please go to our estimates of benefits page for details.


If you think that your benefits built up before 1 April 2014 maybe affected by a reduction in salary, please see our guide to reductions in pay.