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    • FredTheFifth
    • By FredTheFifth 10th Sep 17, 5:27 PM
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    FredTheFifth
    Frozen LGPS??
    • #1
    • 10th Sep 17, 5:27 PM
    Frozen LGPS?? 10th Sep 17 at 5:27 PM
    My wife has 10 years in the LGPS but left 28 years ago. She's been told she can't draw it until she is 60. I thought it was 55. She currently claims a carers allowance for an elderly relative if that's relevant. Is she being advised correctly please?
Page 1
    • dunstonh
    • By dunstonh 10th Sep 17, 5:30 PM
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    dunstonh
    • #2
    • 10th Sep 17, 5:30 PM
    • #2
    • 10th Sep 17, 5:30 PM
    LGPS cannot be frozen. I guess you mean deferred.

    She's been told she can't draw it until she is 60. I thought it was 55.
    it is 60 in most roles.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • JoeCrystal
    • By JoeCrystal 10th Sep 17, 5:34 PM
    • 1,292 Posts
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    JoeCrystal
    • #3
    • 10th Sep 17, 5:34 PM
    • #3
    • 10th Sep 17, 5:34 PM
    A LGPS website does say this

    "If you left before 1 April 2014 you can choose to take early payment of your deferred benefits from age 60. You do not need your former employer's consent to draw your pension between age 60 and your Normal Pension Age, however, you will need your former employer's consent to draw your pension before age 60. This is a discretion and you can ask them what their policy is on this."
    • hyubh
    • By hyubh 10th Sep 17, 5:52 PM
    • 1,948 Posts
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    hyubh
    • #4
    • 10th Sep 17, 5:52 PM
    • #4
    • 10th Sep 17, 5:52 PM
    My wife has 10 years in the LGPS but left 28 years ago. She's been told she can't draw it until she is 60. I thought it was 55.
    Originally posted by FredTheFifth
    No, it's 60 because that's what the rules of the scheme at the time said.

    She currently claims a carers allowance for an elderly relative if that's relevant.
    Not particularly, unless she wants to try and get the pension paid early on compassionate grounds. If she does, she will need to apply to the employer (or successor body, if it no longer exists). It would be extremely unlikely that simply claiming carers allowance will be enough however.

    Is she being advised correctly please?
    She is.

    Why is she so desperate to take it early...? Having left 28 years ago her service predates the 85 year rule, so that makes her NRA 65 I would have thought... so a big actuarial reduction would apply.
    • FredTheFifth
    • By FredTheFifth 10th Sep 17, 8:15 PM
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    FredTheFifth
    • #5
    • 10th Sep 17, 8:15 PM
    • #5
    • 10th Sep 17, 8:15 PM
    Ok thanks all, much better understood now.
    • FredTheFifth
    • By FredTheFifth 10th Sep 17, 8:38 PM
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    FredTheFifth
    • #6
    • 10th Sep 17, 8:38 PM
    • #6
    • 10th Sep 17, 8:38 PM
    Who said she was desperate to take it, just asking.
    • Silvertabby
    • By Silvertabby 10th Sep 17, 9:04 PM
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    Silvertabby
    • #7
    • 10th Sep 17, 9:04 PM
    • #7
    • 10th Sep 17, 9:04 PM
    Unreduced from age 60.
    • hyubh
    • By hyubh 10th Sep 17, 9:28 PM
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    hyubh
    • #8
    • 10th Sep 17, 9:28 PM
    • #8
    • 10th Sep 17, 9:28 PM
    Unreduced from age 60.
    Originally posted by Silvertabby
    Not doubting it, but do you have a reference for that...?
    • Silvertabby
    • By Silvertabby 11th Sep 17, 1:31 PM
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    Silvertabby
    • #9
    • 11th Sep 17, 1:31 PM
    • #9
    • 11th Sep 17, 1:31 PM
    Good question. My answer was based on my experience of bringing many old deferred records into payment at 60.

    I've had a trawl through the regs, but suspect if it's anywhere that I can still access then it will be buried deep in the timelines.

    I'll let you know if I find it.

    In the meantime, have you been reading this:

    85 Year Rule

    If you were a member of the LGPS at anytime between 1 April 1998 and 30 September 2006, some or all of your benefits could be protected from an early payment reduction under what is called the 85 year rule. If you have 85 year rule protection this continues to apply from 1 April 2014. The only occasion where this protection does not automatically apply is if you choose to voluntarily draw your pension on or after age 55 and before age 60.
    If so, this is just part of the transitional/R85 taper arrangements with a bit of the 2014 regs thrown in (the reference to taking benefits from 55). Anyone who left before the 97 regs kicked in would have had their benefits deferred under the old rules with full R85 protections (but with 60 as the minimum payment age).

    In the case of Op's wife, her 10 years service plus 28 years deferred membership qualifies her for unreduced payment at 60.
    Last edited by Silvertabby; 11-09-2017 at 3:06 PM.
    • hyubh
    • By hyubh 11th Sep 17, 9:41 PM
    • 1,948 Posts
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    hyubh
    In the meantime, have you been reading this:

    85 Year Rule

    If you were a member of the LGPS at anytime between 1 April 1998 and 30 September 2006
    Originally posted by Silvertabby
    Yes, but the OP's wife 'left 28 years ago', so well before 1998. Was the 25 year rule that preceded the 85 year rule as generous for deferreds? Or are you saying the 85 year rule applied retrospectively...?
    • greenglide
    • By greenglide 11th Sep 17, 11:16 PM
    • 2,898 Posts
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    greenglide
    I left LGPS in 1996 and got my pension, unreduced, at 60 under the rule of 85.

    I didn't actually want it at 60 but rules is rules and deferring wasn't allowed. I had to put it into my employers AVCs under salary sacrifice instead.
    • Silvertabby
    • By Silvertabby 12th Sep 17, 12:09 PM
    • 1,807 Posts
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    Silvertabby
    “ In the meantime, have you been reading this:

    85 Year Rule

    If you were a member of the LGPS at anytime between 1 April 1998 and 30 September 2006

    Originally posted by Silvertabby
    Yes, but the OP's wife 'left 28 years ago', so well before 1998. Was the 25 year rule that preceded the 85 year rule as generous for deferreds? Or are you saying the 85 year rule applied retrospectively...? Posted by hyubh
    R85 pre-dates 1998. I still haven't put my finger on the exact date, but it looks like it may have been in right from the start in the 1920s. There was never a '25 year rule' - just R85 which means that service/deferred membership and age must total at least 85 to qualify - ie, age 60 plus 25 years service would do it, as would age 61 with 24 years service.

    LGPS R85 isn't as generous as it sounds - the original scheme normal retirement age (for both men and women) was 65, with the option of taking unreduced benefits from age 60, subject to meeting the Rule of 85. At the same time, the normal retirement age for the Civil Service was 60 - meaning unreduced benefits for ALL from that age.

    The snip which mentions service between April 1998 and September 2006 is somewhat misleading - perhaps it should have said " If you were a member of the LGPS at anytime up to and including 30 September 2006, some or all of your benefits could be protected from an early payment reduction under what is called the 85 year rule" However, anyone who joined after 1998 certainly wouldn't have enough time to accrue full R85 (if any at all) rights hence the transitional/taper arrangements.
    Last edited by Silvertabby; 15-09-2017 at 12:51 PM.
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