Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Topping up your State Pension

Posted on by Admin-2

If you paid into the LGPS, between 6 April 1978 and 5 April 2016 the amount of new State Pension you receive will be reduced in respect of this period, to reflect the fact that you and your employer paid a lower rate of National Insurance (NI) during this period as the LGPS was a ‘contracted out’ scheme.

‘Contracting out’ was where members of approved pensions schemes such as the LGPS previously paid a lower percentage of NI as they were ‘contracted out’ of the earnings related part of the old State Pension (S2P) and just paid towards the Basic State Pension, as they had pension provision in the LGPS.

Many members in the LGPS will still have time to build up the NI service required to qualify for the full New State Pension in the future. However, if you have gaps in your NI record you may be able to pay voluntary Class 3 NICs to fill them, and so increase your State Pension.

A leaflet has been developed to provide information to members who are considering topping up their State Pension. The leaflet is available on the LGPS Regulations and Guidance website at the following address: http://www.lgpsregs.org/index.php/guides/employees-guides

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