(help) work pension

robertnewsam

COUNCIL/OTHER PENSION SCHEMES

My wife has a very small pension from a county council and when she retires she will receive about £800 per annum. She requested that she should be eligible to get her pension as a lump sum due to her pension being so small it would cost more to administrate it. My wife request was refused stating she only get her pension early as their policy was early requests must pass a certain criteria which she did not meet, even though she has stopped work due to caring for me and they have never heard of any loophole existing. I know there is/was a loophole that you can do this as I done it a few years ago as when I was starting to become ill and changing jobs/work rolls money was tight. Bearing in mind this are the councils pension team/providers correct or is there any way my wife could get a lump for her complete pension without getting an annuity. Thanks for your help and assistance. Robert Newsam

jhp

Try posting on the Pension Board where the pension experts hang out,for a better response.

See: http://forums.moneysavingexpert.com/forumdisplay.php?f=19

mallymal

In my day job I write literature for one of the council pension funds - so your wife's will follow the same rules (LGPS, local govt pension scheme).

If she's 60, she can draw it as of right (but maybe with a % penalty for drawing it before the schemes normal retirement age of 65... yes men & women!!)

If she's 55-59, she can only draw it with her (ex?) employer's permission, and this is very unlikely as it will cost them in terms of THEIR payments into the scheme.

The "compassionate grounds because she looks after you" argument may carry some weight, but dont count on it.

Re taking it as a lump sum, the rules are a mess on this... I think since 2008, the rules havnt allowed it.

What she should be able to do though when she does draw it, is take the standard package (pension AND lump sum) or take a reduced pension, and a BIGGER lump sum. (£1 off yearly pension gives £12 lump sum). And since the lump sum is tax free, many folks like this option.

Hope this helps... I would send an email or lettter to the relevent Fund and get answers in writing if you havent already.

good luck