The Local Government Pension Scheme (LGPS) now provides pension benefits for councillors and mayors (referred to as ‘elected members’) in England from 11 May 2026.
Eligibility
From 11 May 2026, the elected members will be able to opt in to the LGPS scheme provided they are under age 75.
Who is eligible?
- The mayor and deputy mayor of the West of England Combined Authority.
- Elected councillors from the four unitary councils: Bristol City, South Gloucestershire, North Somerset and Bath and North East Somerset Council.
Who is not eligible?
- Town and Parish Councillors are not eligible for membership.
Joining the scheme
Eligible elected members wishing to join the LGPS must complete an opt in election form and send this to the relevant authority. In this guidance, this authority will be known as the ‘employing’ authority (employer), although not strictly an employee.
The earliest date that a member can apply to join is 11 May 2026 and membership will commence from the first day of the next payment period following the application. Membership cannot be backdated.
Points to note:
- Elected members do not need the consent of their authority to join the LGPS.
- Contractual enrolment and automatic enrolment (including automatic re-enrolment) do not apply to elected members.
- Elected members must join the main section of the scheme before a request to move to the 50/50 section is processed.
- Prospective members should be provided opt in form and introductory guide.
50/50 Section
Elected members have the same ability to pay reduced contributions by opting to move to the 50/50 section. This can only be done after having joined the main section of the scheme.
Points to note:
Members in the 50/50 section are automatically moved back into the main section of the scheme from the beginning of the first pay period following:
- going on to no pay due to sickness or injury, provided the member remains on no pay at the start of that pay period, Or
- the employer’s automatic re-enrolment date*
*The employer’s automatic re-enrolment date is used solely as a reference date for moving members from the 50/50 section back to the main section of the scheme. This scheme does not operate as an automatic enrolment scheme, and it is not conditional on a member meeting the definition of an eligible jobholder.
All members in the 50/50 section, including elected members are moved back to the main section on the re-enrolment date, regardless of their age, earnings, or employment status. This approach reflects the fact that the 50/50 section is itself a qualifying scheme for automatic enrolment purposes.
Contributions
An elected member’s employee contribution rate is set and reviewed in the same way as for other LGPS scheme members and is based on annual pensionable pay.
Similarly, the employer contribution rate is the same for elected members as it is for other members employed by that scheme employer.
| Band | Actual pensionable pay for an employment | Main section contribution rate for that employment | 50/50 section contribution rate for that employment |
|---|---|---|---|
| 1 | Up to £18,400 | 5.5% | 2.75% |
| 2 | £18,401 to £29,000 | 5.8% | 2.9% |
| 3 | £29,001 to £47,300 | 6.5% | 3.25% |
| 4 | £47,301 to £59,800 | 6.8% | 3.4% |
| 5 | £59,801 to £84,000 | 8.5% | 4.25% |
| 6 | £84,001 to £119,100 | 9.9% | 4.95% |
| 7 | £119,101 to £140,400 | 10.5% | 5.25% |
| 8 | £140,401 to £210,700 | 11.4% | 5.7% |
| 9 | £210,701 or more | 12.5% | 6.25% |
MHCLG has confirmed there is no requirement for the scheme actuary to certify a separate rate for elected members or produce a new rates and adjustments certificate. A new employer contribution rate would only be expected where the number of elected members joining the scheme is likely to result in a significant change in liabilities, which is unlikely to be the case.
Pensionable Pay
Elected members are not normally paid a salary or wage but as office holders, they will receive allowances. Some elected mayors who have executive powers, may have a salary determined under their authority’s remuneration scheme.
The new Regulations use a separate definition of pensionable pay for elected members. For elected members, pensionable pay is the total of the following amounts paid under the authority’s approved remuneration scheme:
- basic allowances
- special responsibility allowances
- relevant allowances
- any salary paid (where applicable)
‘Relevant allowance’ means an allowance paid under a combined authority establishment order or combined county authority establishment regulations.
Travel and subsistence allowances are not pensionable.
Councillors and mayors may be appointed to and receive special allowances from authorities other than the council to which they are elected. This arises where the councils have statutory responsibilities and appoints elected members to sit on their committees or sub-committees. For the four unitary councils, examples are duties for Avon Pension Fund Pension Committee and Investments Panel.
In these instances, the authority that are paying the allowance directly to the elected member, will be responsible for meeting all LGPS employer responsibilities. This includes payment of contributions and the provision of the required data to the pension fund. If the allowance is being re-charged, then so can contributions and national insurance.
It is noted that there are councillors that receive special allowances from West of England Combined authority and potentially from the Avon Fire and Police Authority. If these allowances are paid directly to the elected members by these authorities, then this authority will be deemed as the ‘employing’ authority and therefore responsible for the scheme membership.
This means that an elected member may have more than one membership in the new scheme.
Other Pay and Contributions
AVCS and Salary Sacrifice
Elected members can pay AVCs.
However, they can only enter into a shared cost additional voluntary contribution arrangement (SCAVC) where it is a salary sacrifice SCAVC.
Where an elected member takes part in a salary-sacrifice shared cost AVC arrangement, their pensionable pay must be based on the pay they would have received had they not entered into the salary-sacrifice arrangement. This means the sacrificed amount is automatically added back when calculating pensionable pay for LGPS purposes. The employer does not need to specify the sacrificed amount as being a pensionable emolument.
The amount that an employer can contribute towards a salary sacrifice SCAVC in any period is limited to the amount of pensionable pay sacrificed in that period. ‘Period’ means such interval as used by the employer for the calculation and payment of contributions to the salary sacrifice SCAVC arrangement.
Accordingly, the employer cannot pay any additional amount to the salary sacrifice SCAVC in a period over and above the pensionable pay sacrificed in that period. The employer therefore cannot contribute anything extra to the member’s AVC.
Additional Pension Contributions (APCs)
Elected members can buy additional pension by way of paying into an APC.
In buying back lost pension by paying additional pension contributions this is now restricted to buying back pension under the new qualifying additional pension arrangements (QAPAs).
For an employer this means:
- They cannot contribute to an elected member’s APC contract to buy additional pension.
- They must contribute to an elected member’s APC to buy back lost pension where it meets the conditions for a QAPA. If the absence in respect of the QAPA lasts for more than 36 months, the employer must contribute for the first 36 months and may contribute for the remaining period.
Assumed Pensionable Pay
Assumed pensionable pay (APP) applies to elected members in broadly the same way as it does to other LGPS members. APP applies when elected members are unable to carry out the full responsibilities of their office due to sickness or injury, and they receive reduced or no pensionable pay.
The elected member pays contributions on any pensionable pay received during a period of absence when APP applies. The employer pays contributions on the amount of APP.
It also applies whilst an elected member is on reserve forces leave if they elect to remain a member of the LGPS.
Child related leave does not apply to elected members as they are not classed as employees.
Calculating APP
Allowances for councillors can be paid monthly, quarterly, or irregularly. When calculating APP, any payments that do not relate to the three complete months before:
- the period of reduced or no pensionable pay due to sickness, or
- the member commenced reserve forces leave.
should be treated as a non-regular lump sum and removed from the calculation. Any regular lump sum payments in the preceding 12 months are added back into the APP figure.
As with standard LGPS members, if the pay the member received in the three-month period is materially lower than the pay, they would normally receive, the employer has a discretion to use a higher pay in the APP calculation. The employer must have regard to the pensionable pay the member received over the previous 12 months when determining what the normal level of pensionable pay is.
Other scheme changes at a glance
Elected members are generally subject to the same regulations as other scheme members, with the following key differences:
- Elected members cannot combine deferred councillor LGPS membership with standard LGPS membership or vice versa, but in most cases can combine deferred councillor membership into their new scheme but will lose any links to final salary benefits.
- A transfer-in of final salary benefits from a different public service pension scheme will purchase CARE benefits.
- Elected members are not permitted to take flexible retirement.
- Immediate payment of pension from age 55 due to redundancy or business efficiency do not apply.
- The McCloud regulations do not apply and any transfer-in of remediable service will not be treated as such and will not receive underpin protection.
- Employers cannot award additional pension or waive early retirement reductions.
Elected members will need to be identified separately by Avon Pension Fund for these differences to be accounted for and as such, will be placed into a new Councillor Scheme. Details of the scheme and employer codes will be on the i-Connect specification.
i-Connect
Employers will need to create a separate i-Connect extract for Elected Members.
Find out about the i-Connect requirements for elected members.