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  • FIRST POST
    • Lyns181013
    • By Lyns181013 4th Oct 17, 9:27 AM
    • 3Posts
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    Lyns181013
    Pension release advice
    • #1
    • 4th Oct 17, 9:27 AM
    Pension release advice 4th Oct 17 at 9:27 AM
    Hi
    My husband turned 55 in april 2017 and applied to release a lump sum of his pension from his previous employed which is a LGPS. hey declined his request on financial grounds (cuts to services etc). Can they legally do this and is it worth appealing?
Page 1
    • dunstonh
    • By dunstonh 4th Oct 17, 9:57 AM
    • 89,955 Posts
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    dunstonh
    • #2
    • 4th Oct 17, 9:57 AM
    • #2
    • 4th Oct 17, 9:57 AM
    Can they legally do this and is it worth appealing?
    Yes they can.

    You cannot just take lump sums from the LGPS. It would require the pension to be commenced and early retirement and commencement is subject to approval. If he is still working and an active member then its likely they would refuse if they do not have the staff to replace him.
    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.
    • Lyns181013
    • By Lyns181013 4th Oct 17, 10:05 AM
    • 3 Posts
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    Lyns181013
    • #3
    • 4th Oct 17, 10:05 AM
    • #3
    • 4th Oct 17, 10:05 AM
    he is no longer employed by them hasnt been since 2009
    • LHW99
    • By LHW99 4th Oct 17, 10:11 AM
    • 999 Posts
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    LHW99
    • #4
    • 4th Oct 17, 10:11 AM
    • #4
    • 4th Oct 17, 10:11 AM
    Then he would be looking at taking the pension early which would have a heavy reduction, even if it was allowed.
    • dunstonh
    • By dunstonh 4th Oct 17, 10:12 AM
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    dunstonh
    • #5
    • 4th Oct 17, 10:12 AM
    • #5
    • 4th Oct 17, 10:12 AM
    he is no longer employed by them hasnt been since 2009
    Originally posted by Lyns181013
    They can still refuse as it comes at a cost to them. Does he have a compelling reason to start the pension that early?
    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.
    • Lyns181013
    • By Lyns181013 4th Oct 17, 10:18 AM
    • 3 Posts
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    Lyns181013
    • #6
    • 4th Oct 17, 10:18 AM
    • #6
    • 4th Oct 17, 10:18 AM
    our financial situation - i think a better plan would be to transfer to another scheme that will allow the release - thanks
    • Silvertabby
    • By Silvertabby 4th Oct 17, 10:49 AM
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    Silvertabby
    • #7
    • 4th Oct 17, 10:49 AM
    • #7
    • 4th Oct 17, 10:49 AM
    As OP's husband left the LGPS before 2014, the earliest he can access his pension of his own accord is 60.

    Earlier access would be subject to either ill health (any age) or on compassionate grounds (55+). Both would have to be investigated/approved by the employer, but only compassionate grounds could result in a costs charge.

    I've never known a compassionate application on 'financial situation' be approved.

    OP - your husband can ask for a CETV (cash equivalent transfer value) with a view to transferring his benefits to a private pension fund/SIPP but think long and hard before taking such a drastic step. You've no doubt seen other posts on these boards from people who have been offered transfer values of 30 or even 40 times the annual pension - but he won't get anywhere near that from the LGPS. He will also have to find an IFA willing to 'recommend' the transfer, which won't be easy.
    Last edited by Silvertabby; 04-10-2017 at 6:28 PM.
    • dunstonh
    • By dunstonh 4th Oct 17, 12:19 PM
    • 89,955 Posts
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    dunstonh
    • #8
    • 4th Oct 17, 12:19 PM
    • #8
    • 4th Oct 17, 12:19 PM
    The regulatory position on using a pension to clear debts is that it should generally be an option of last resort. All alternative options should be considered first. Including going into debt management.

    If you are at an age where future credit is not really going to be an issue then going into a managed debt solution with some write offs can be a far better solution then raiding your pension.
    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.
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