WEST MIDLANDS PENSION FUND

How your pension benefits are calculated

Your LGPS benefits are made up of:

  • an annual pension
  • the option to exchange part of your pension for a tax-free lump-sum paid when you draw your pension benefits.

The scheme rules have changed over the years, which means different parts of your pension are calculated in different ways.

Please follow the links below for more information:

Note for members who joined the scheme before 1 April 2014 and work term-time (contracted weeks) only

Pension benefits built up before 1 April 2014 are calculated using your full-time equivalent pay, proportioned down to reflect your annual contractual weeks worked.

The number of working weeks within a year is usually 52.14 weeks; however, if you work less than this due to the nature of your job role (e.g. you may work during term-time in a school), then:

  • your service will be credited at the full year rate (pro-rata if you work part time), and-
  • your full-time equivalent salary will be proportioned down to reflect the annual contractual weeks worked.  

This ensures that you receive the correct amount of pension in line with your earnings.