Reporting Pensions

Your quarterly newsletter containing statutory pension information.

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Issue: Spring 2024

Responsible Investment Policy Consultation 

Officers of the Oxfordshire Pension Fund have written a draft Responsible Investment policy which outlines the main investment beliefs and priorities for the fund to invest in a responsible way. 

This draft policy is based on the feedback we received from the 4000 responses to the Responsible Investment member survey, which took place in November 2023. We have also considered the results of an assessment of the key sustainability risks that the fund faces, for example the potential impact of climate change on investment returns. 

The draft policy was approved by the Pension Committee in March 2024, and we are now asking for your views on the policy before it goes to Pension Committee in June 2024 for final sign-off. 

The survey closes on Sunday 19 May 2024 at 5pm.

Please take the time to read the draft policy and then fill out the survey to give us your views.

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 Change in contributions rate 

The rate of contributions you will pay towards your LGPS pension is based on how much you are paid. 

When you join the Scheme, and every April afterwards, your employer will decide your contribution rate. If you have more than one job your contribution rate will be decided 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. 

Here are the pay bands and contribution rates that apply from April 2024

  Your actual pensionable pay Main section contribution rate 50/50 section contribution rate
  Up to £17,600 5.50% 2.75%
  £17,601 to £27,600 5.80% 2.90%
  £27,601 to £44,900 6.50% 3.25%
  £44,901 to £56,800 6.80% 3.40%
  £56,801 to £79,700 8.50% 4.25%
  £79,701 to £112,900 9.90% 4.95%
  £112,901 to £133,100 10.50% 5.25%
  £133,101 to £199,700 11.40% 5.70%
  £199,701 or more 12.50% 6.25%

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Retiring early

You might be thinking about whether you can afford to retire early. If you choose to retire and take your LGPS benefits before your normal pension age (NPA) then the benefits will normally be reduced because your pension will be paid for longer. The earlier you retire, the bigger the reduction. The minimum age that you can take your pension is currently 55, although this is changing to 57 in 2028. The current early retirement reductions can be found online at https://www.lgpsmember.org/your-pension/planning/%20taking-your-pension/ 

You can also use the benefit calculators on My Oxfordshire Pension to find out how much you might get if you choose to take your benefits earlier than your NPA. 

We recommend that you take independent financial advice if you need help with planning for your retirement. 

Remember, you need to give Pension Services 3 months’ notice of your intention to retire.

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WASPI Court Ruling 

The Women Against State Pension Inequality (WASPI) ruling has confirmed women affected by the rise in State Pension Age, made in 2010, may be owed compensation. 

The LGPS will not be affected by the WASPI ruling, as the retirement age for these schemes has always been the same for both men and women. Any payouts that may be due to the women affected will be made by the Government and not the LGPS.

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The Pensions Manager retires… 

Our long-serving Administration Manager, Sally Fox, has closed her Excel spreadsheets for the last time and has left Pension Services for a well-deserved retirement. Sally has been an invaluable asset to the pensions team since 2002 and she will be greatly missed. 

We are currently in the process of recruiting Sally's successor, and we will let you know when we have made an appointment.

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Are you a member retiring with an AVC? 

Oxfordshire Pension Fund changed AVC provider to Legal and General late last year. As a result, some of our processes are changing to accommodate L&G’s systems. There may be a small delay in paying lump sums from AVC funds on retirement. We are working with L&G to minimise the impact on our members. 

This does not affect any retirement payments from the Oxfordshire Pension Fund, so the current retirement time scales remain the same for main scheme benefits.

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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 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 2023 CPI rate was 6.7%, so your pension account was increased by 6.7% on 1 April 2024. 

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.

Reporting Pensions - Spring 2024 (.pdf format 232.59 KB)

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