Deferred LGPS Pension

dave623

Hi All,
I have recently retired early at age 40 due to long term severe ill-health. I have been awarded the full pension by my previous workplace (i.e total incapacity). However, I have a deferred LGPS pension of 3 years built up with a public sector body which I left 13 years ago. I have completely forgot about this (my memory isn't good at all) and only found out recently that I could potentially release this LGPS pension also. My question is:

1. Can I receive 2 ill-health retirement pensions at once. The one i'm receiving now isn't an LGPS one.
2. My LGPS statement at August 2012 was £600 a year pension and a £1700 lump sum. If I apply and receive Tier 1, would it be projected to my normal retirement age of 65? as I am not currently paying into it as it's a deferred benefit. If so, I guess the figures would be substantially increased?

Many Thanks & kind regards,
Dave.

xylophone

http://www.lgps.org.uk/lge/core/page.do?pageId=101769
might help?

dave623

Thanks xylophone
Thanks for the link: Deferred benefits are payable on ill health grounds at any age, without reduction, if you are no longer capable of performing the duties of your old job.
Only it doesn't say whether deferred benefits it would be projected to retirement age at 65 if tier 1 was given, confused, guess i'll have to arrange a medical with the authority I used to work for I guess.

Many thanks,
Dave.

dave623

Hi all,

I've just found the following legislation (don't know if it's an old legislation or not)

http://www.legislation.gov.uk/uksi/2007/1166/regulation/31/made

It says:
"Early payment of pension: ill-health31.—(1) Subject to paragraph (2), if a member who has left a local government employment before he is entitled to the immediate payment of retirement benefits (apart from this regulation) becomes permanently incapable of discharging efficiently the duties of that employment because of ill-health or infirmity of mind or body—
(a)he may request to receive payment of the retirement benefits immediately, whatever his age, and
(b)paragraphs (2) and (4) of regulation 20 apply.
(2) If a member does not request immediate payment under this regulation, he is entitled to receive a pension without reduction, payable from his normal retirement age."
Regulation 20 (2) says:
"(2) If the authority determine that there is no reasonable prospect of his obtaining gainful employment before his normal retirement age, his benefits are increased—
(a)as if the date on which he left local government employment were his normal retirement age; and
(b)by adding to his total membership at that date the whole of the period between that date and his actual normal retirement age."
Regulation 20 (4) says:
"(4) In the case of a member in part-time service, the period to be added under paragraph (2)(b) or (3)(b), as the case may be, is calculated in accordance with regulation 7(3) as if he had remained in such part-time service until his actual normal retirement age."

Am I right in thinking that, as I have left the employment and have a deferred pension, and if I am awarded Tier 1, then I would receive the advanced benefit to what I would achive had I been in the LGPS until the age of 65? My current pension trustees awarded me Total Incapacity without any problem with the owerwhelming evidence, but don't want to get my hopes up. Could anyone confirm that I would receive the enhancement/projection to retirement age should I receive tier 1, even though my pension is deferred?

Many thanks in advance,
Dave.

Pixieboy

Hi Dave,
Sorry to hear of your health issues.
I assume you left at some time between 1/4/1998 and 31/3/2008 and therefore this legislation applies if you were a member of the LGPS in England or Wales http://timeline.lge.gov.uk/Amended/SI20102090/pt2ch4.html#reg31
You need to contact your former LGPS employer as soon as possible to request early payment on health grounds in accordance with Regulation 31(6) of the LGPS Regulations 1997. The reason for the urgency is that, under these Regulations if you meet the criteria for payment it will be payable from the date you requested payment, rather than when you first met the criteria.
Payment would be granted if the Independent Doctor certifies you as permanently incapable of the LGPS job that you held at the point you ceased the LGPS membership that led to the award of deferred benefits.

What would be payable would be your deferred benefits at the value as at date of leaving.

If payment is granted, Pensions Increase (the cost of living increases) since leaving would be payable once you reach age 55, HOWEVER it could be payable before age 55 if you were certified by the independent doctor as permanently incapable of all regular full time employment.

There is no enhancement to benefits when deferred benefits are put into payment, and the concept of tiers does not apply either, even for those that left with deferred benefits after 31st March 2008 (albeit that they would effectively have to meet the Tier 1 or Tier 2 criteria regarding likelihood of being capable of gainful employment at some point in the future, but that's another story...).

Hope this helps.

dave623

Hi Pixieboy,

Many thanks, I guess the legislation I quoted was out of date (I thought it was too good to be true) Yes you're right, I finished employment in 2000. You're info is really helpful (if not what I wanted to hear, lol) But I will definately take your advice and contact my old employer straight away. Many thanks again for the info.

Kind Regards,
Dave.