Lgps 2014

dick_turpin

With only about six months to go before LGPS 2014 commences, there are so many questions still unanswered. People who may want to leave before the new scheme commences and need to give three months Notice need these questions answered but we appear to be shrouded in mystery...
My questions are...
If I leave my current employment with a local authority before 55, can I draw the pension on reaching 55?
If I leave at 55 will any reductions applied be to all my pension years or only those since 2008?
Based on info currently available it seams that a 42% reduction may apply but it is not clear what that applies to.
Does anyone know when these sorts of questions will be answered?
I currently have 30+ years service and may decide to take the 'hit' if practical to do so.

jem16

!!!!!!_turpin wrote: »

People who may want to leave before the new scheme commences and need to give three months Notice need these questions answered but we appear to be shrouded in mystery...

Are you referring to leaving local authority employment or opting out of the LGPS?

My questions are...
If I leave my current employment with a local authority before 55, can I draw the pension on reaching 55?
If I leave at 55 will any reductions applied be to all my pension years or only those since 2008?
Based on info currently available it seams that a 42% reduction may apply but it is not clear what that applies to.
Does anyone know when these sorts of questions will be answered?

Does this help?

http://www.wiltshirepensionfund.org.uk/pension-reform-lgps-2014/lgps-2014-frequently-asked-questions.htm

I currently have 30+ years service and may decide to take the 'hit' if practical to do so.

Are you within 10 years of your normal retirement age for the LGPS?

dick_turpin

I'm referring to leaving local authority employment.
The link does help but it is apparent that all the decisions are not finalised yet.
I am 53.

jem16

!!!!!!_turpin wrote: »

I'm referring to leaving local authority employment

Protected early retirement may be applicable to you.


http://www.lgps.org.uk/lge/core/page.do?pageId=100801

dick_turpin

I find myself in box c in that chart....if that still applies I would expect to lose 42% of 2008 to 2015 service but retain all benefits earned before 2008.

Andy_L

!!!!!!_turpin wrote: »

If I leave my current employment with a local authority before 55, can I draw the pension on reaching 55?

only if you meet the criteria for the "rule of 85" (age + years of service >=85) and bear in mind that doing so prior to age 60 requires the (former) employers consent

atush

In two years, the op will be 55, and has 30+ years. So will be under rule of 85?

dick_turpin

when i'm 55 I will have 34 years service.

Pixieboy

Right..
Current scheme.
Meeting 85 year rule does not entitle you to retire, it only determines what, if any reductions apply to benefits if they are taken before age 65.
Taking benefits between 55 and 60 requires employers consent. If you have or would have satisfied 85 year rule before 60 this increases cost to employer of letting you take benefits, so many will not consent - times are hard...
Your employer will have a published policy on how they will exercise such discretionary decisions - ask Human Resources for a copy

Under 2014 scheme (i.e. leave 1/4/14 or later)
Anyone can leave and draw benefits from age 55 and doesn't require employer's consent BUT they will suffer the full reduction applicable relative to period from date benefits taken to age 65 for pre 1/4/2014 benefits and for post 31/3/2014 benefits to whatever their State Pension Age is (or 65 if later).
There is no 85 year rule protection applied for these 55-59 type retirements.

It is not clear whether the existing early payment reduction factors will apply, or whether fresh ones will be prepared by the Government Actuary's Department.

Hope this helps clarify things.

dick_turpin

Thank you pixieboy, are those comments re the 2014 scheme assumptions or facts? I haven't seen them written anywhere else?

Pixieboy

Well, none of the legislation is actually in place just yet... some will be shortly and the transitional provisions legislation will follow, but this is my understanding as someone 'in the business', as it were.