Watch that Pay Slip!
All Local Government Members on SJC terms please remember: (particularly if you are a current member of the Local Government (or similar) pension scheme)
Due to the introduction of the NEW State Pension, all members of workplace pension schemes like the LGPS, who formerly paid 1.4% less of their pay to National insurance (a rebate for being part of a "contracted out" scheme) will have lost that reduction as of 6th April 2016.
This reduction was for pay earned between around £8000 to £40000 per year. So, those of us who are members of the LGPS will see our take home pay reduced as that 1.4% rise in NIC is applied.
For those earning above around £20000, it will wipe out the 1% pay award for 2016/2017 and appear as an overall cut in take home pay.
The State Pension changes also ruled that those of us who were "contracted out" will not qualify for the Maximum amount if retiring immediately due to the "reduced" contributions we made in the past. This may, of course, be recovered over a few more years working and paying the full NIC.
This has no impact on the quite separate rights and benefits of the LGPS itself.
Hopefully this will make some sense of the changes but you can find out more at the Tayside Pension Fund Newsletter and more general LGPS advice from the Scottish LGPS website or The Scottish Public Pensions Agency or by speaking to your local pension team.