Its officially Pension Awareness Day! In part 1 of this year’s EAPF Pension Awareness week campaign – we want you to truly understand what it means to be in a Defined Benefit (DB) pension arrangement.
We also have useful updates about changes in the Local Government Pension Scheme (LGPS), centred around making the scheme fairer. In addition, we’ve got some information about midlife planning courses we’re looking to add to our offering, as well as links to the national campaign, where you can book on to some free live pension shows.
What does it mean to be in a DB pension scheme?
There are 2 main types of occupational pension schemes: Defined Contribution (DC) and Defined Benefit (DB).
The EAPF is a fund of the LGPS, which is a DB scheme. In a DB scheme, pension is calculated using a set formula, which is based on what you earn and your period of membership. This is not affected by the contributions you and your employer pay, nor the investment performance of the EAPF.
Even though both you and your employer pay into the scheme during your employment, those payments aren’t what actually decide how much you’ll get.
If you’re in the Main section of the Scheme, the defined formula is; 1/49th of your pensionable pay for each year of membership, which is then added to your pension account. Your pension account is revalued each April, so that your pension keeps up with the cost of living. This means your pension won’t lose value over time.
In the LGPS, benefits are protected – giving you peace of mind with the promise of a guaranteed future income, each year when you retire. This guarantee is set under the Scheme’s regulations.
This is very different to a ‘defined contribution’ (DC) scheme - where the value of an individual’s benefits upon retirement depends on the contributions paid by them and their employer, and how well those savings have grown from investment returns. With these types of schemes, the final amount isn’t fixed, so it can go up or down, depending on how well markets perform.
Changes in the LGPS – making the scheme fairer
What it means for members
1. Better pension protection during unpaid child-related leave
If a period of unpaid additional maternity leave, unpaid additional adoption leave, unpaid shared parental leave or unpaid bereaved partners paternity leave started on or after 1 April 2026, members will continue to build up pension as though they were receiving their normal pay. They no longer need to buy back the pension lost during these periods. This change is intended to help reduce the gender pensions gap.
2. Short periods of authorised unpaid leave are now automatically pensionable
For authorised unpaid leave that started on or after 1 April 2026 lasting less than 15 days, pension benefits continue to build up automatically. Both employee and employer contributions that would normally have been due are paid, meaning members do not lose pension for these short absences. However, this does not apply to strike action.
3. More flexibility for longer unpaid leave
For authorised unpaid leave of 15 days or more that started on or after 1 April 2026, members can buy back lost pension through a new Qualifying Additional Pension Arrangement (QAPA). Improvements include:
- Up to 12 months to decide whether to buy back lost pension (instead of 30 days).
- Contributions based on normal pay and contribution rate.
- Employer contributions are also paid.
- The pension purchased mirrors what the member would have earned, had they remained at work.
Although these changes were announced in March, the detailed guidance needed to implement them was received later. As a result, payroll and pension processes are still being developed and employees who have taken unpaid leave since 1 April 2026 have not yet been contacted about contributions or available options. Further communications will be issued before any individual contact or deductions are made.
4. Fairer survivor pensions
Survivor pensions are now calculated more consistently regardless of gender or marital status. Some existing survivor pensions may increase, and some survivors may become entitled to a pension for the first time. In affected cases, benefits will be recalculated and pay arrears paid with interest.
5. Improved death grant provisions
The age 75 limit for paying a lump sum death grant has been removed and applies retrospectively to deaths that occurred after 1 April 2014.
In summary
For most active LGPS members, the biggest practical change is that from 1 April 2026 they receive much stronger pension protection during unpaid child-related leave and for short authorised unpaid absences, making it simpler and often less costly to maintain their pension benefits. Survivor and death benefits have also been made fairer and more inclusive.
Mid-career MOT – financial future planning
It’s never too early to start looking to the future and thinking about what you want from your retirement. That’s why we aim to help members of all ages to tune into their pension to get the most from it.
We’re looking to add a new course to our offering, called ‘Taking control of your finances’, which will be available to our members regularly throughout the year. Whilst it’s not specific to EAPF members, it is run for members of the LGPS, so the content will be relevant – it’s just some of the terminology that may vary.
This course is targeted at those aged 35-50 and won’t just touch on pensions; it’s about all aspects of your financial wellbeing. It will be jam packed with thought-provoking information to help you look at your financial picture and consider things you can do to better equip you for the future.
It will cover:
- Personal taxation – benefits and allowances (tax, NI, marriage allowance)
- Understanding your finances (budgeting, reviewing your finances, benefits)
- Reviewing your borrowing (types of borrowing, mortgage and credit card overpayments, credit scores, repaying debt)
- Savings and investments (creating a savings strategy, planning for unexpected costs, tax efficient saving, understanding investment risks)
- The value of your pension (state pension, workplace pension – the basics, tax efficiency in pension saving, your benefits and options at retirement)
All those who attend will also be given access to an interactive workbook where learnings from the course can be put into action to help you take control of your finances.
We believe this course will help members better understand their finances and expected retirement benefits. It should also make you think about whether you need to take steps to boost your pension, especially if you’re thinking about retiring before your Normal Pension Age (NPA). We often hear members say they wish they’d tuned in sooner – which is why we want to target members who are a bit younger than those approaching retirement.
Before we launch this course, we wanted to gauge your interest, so select the ‘Register your interest’ link below and we’ll send you the full details when the course is ready.
Register your interest in the Mid-life planning course
National Pension Awareness campaign and live shows
The national ‘Pension Awareness’ campaigners offer engaging and informative resources for everyone, whether you’re new to pensions or close to retirement. They also run live shows, which bring important pension topics to life.
This year’s campaign includes:
- A 6 Step Pension ‘Check-in’
- Live shows running 15 -16 September
- Free, impartial, and simple pension information
- Access to their catch up shows
- Useful articles, tools and resources
Don’t worry if you don’t manage to join the live shows, they’re being recorded and will be on their website shortly after. You can register to join them below.
Book on to a live show at pensionawarenessday.com
They use generic content and not specific to the EAPF, but useful nevertheless! And these live shows aren’t to be confused with the EAPF pension webinars, which will run through October and November.
We’ll give more details on our EAPF webinar sessions in part 3 this week!
Keep an eye out for Part 2 of our EAPF Pension Awareness Week series on 16 September!