Your pension account
1/49th of your pensionable pay is put into your pension account every year. Your pensionable pay includes the pay you ‘lost’ during a short period of unpaid absence you took with permission. A short period of absence is one that lasts 14 days or less, and started on 1 April 2026 or later. Assumed pensionable pay is used if your pay has been reduced for certain other reasons.
The balance in your pension account at the end of each year is adjusted in the following April in line with the cost of living. If you have more than one job you will have a separate pension account for each employment.
Let’s look at the pension account of a member who joined the Scheme on 1 April 2014. The member had pensionable pay of £24,500 in the first year and a pay rise of 1% in the next two years.
| Scheme year | Opening balance | Build up in Scheme year (pay ÷ build up rate = pension) | Total account 31 March | Cost of living adjustment | Total pension |
|---|---|---|---|---|---|
| 2014-15 | £0.00 | £24,500 ÷ 49 = £500.00 | £500.00 | 1.2% | £506.00 |
| 2015-16 | £506.00 | £24,745 ÷ 49 = £505.00 | £1,011.00 | -0.1% | £1,009.99 |
| 2016-17 | £1,009.99 | £24,992.45 ÷ 49 = £510.05 | £1,520.04 | 1% | £1,535.24 |
The member’s pension account will continue to build up in the same way every year. You can find a list of the cost of living adjustments that have applied each year in the Frequently asked questions section.
If you are buying extra pension by paying Additional Pension Contributions, Shared Cost Additional Pension Contributions or paying into a Qualifying Additional Pension Arrangement (QAPA), the amount you buy each year is added to your pension account.
If you join the 50/50 section of the LGPS, you would pay half your normal contributions for half the normal pension build-up. Each year you are in the 50/50 section, 1/98th of your pay is put into your pension account instead of 1/49th. See the Paying less section for more information about the 50/50 section.