Lgps 2014

woolly_wombat

Do any LGPS experts know what is happening with additional years purchased before 1 April 2008.

I was given to understand a few months ago that no provision was being made and that funding would be via clawback from the lump sum.

If that is the case then I am wondering whether to cancel my additional years contract.

Would anyone 'in the know' care to comment?

WW

dick_turpin

Thank you Pixieboy..it appears you may be as well placed as anyone to advise!!

dick_turpin

Pixieboy, I wonder if there is any chance the comment about 'no protection for 55-59 retirements'..could change or do you think that is cast in stone? It could seriously affect plans!

Pixieboy

I cannot see that changing, basically because of the potential for strain costs falling upon employers. At present employer consent is required to take benefits before 60 - this enables the employer to control their exposure to such capital strain costs.
Once the requirement for consent goes out of the window, without the "no protection" aspect the costs would soon mount up.
I understand that why there is no requirement to carry forward protection is that the ability to take benefits at ages 55-59 without employer consent is a new provision.
The first installment of 'proper' LGPS 2014 Regulations was published/circulated yesterday:
http://www.legislation.gov.uk/uksi/2013/2356/pdfs/uksi_20132356_en.pdf
The provision is 30(5) but the no protection aspect is not mentioned since protection would be covered by a different set of 'transitional provisions' regulations, which may be some time off yet...
Employers will have the option of waiving any reductions (30(8)), but in most cases why would they...
Not what you want to hear, I know...

seven-day-weekend

atush wrote: »

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

AFAIK you have to be age 60 to be eligible for the rule of 85. It is 60 plus your years of service.

dick_turpin

Thank you for that.
Is it known when the secretary of state will issue the guidance on actuarial reductions?

Pixieboy

seven-day-weekend:
Those that are eligible for 85 year rule protection satisfy the rule when their age (in whole years) and membership (in whole years) total 85, so it can be satisfied before age 60. It doesn't entitle someone to retire though, only determines if and by how much their benefits are reduced for early payment.

!!!!!!_turpin:
put bluntly... no. The delivery of Government Actuary's Department guidance can take time. As a rough rule of thumb though, the current guidance (England & Wales) is here http://timeline.lge.gov.uk/GAD/EW_EarlyRet_factors290312.pdf
Factors on Page 7

dick_turpin

Thank you again...I'm glad you know your way around this stuff!
Not the answers I had hoped for but it's better to know than not know.

dick_turpin

Presumably these figures will have to be finalised and announced soon for those that need to give three months notice and may wish to leave before the 2014 scheme commences in April? (not me, but others may be interested).

Pixieboy

Whilst that would be nice....
Don't wish to be too skeptical, however the original plan was that all of the legislation would be in place 12 months before the scheme commences; hasn't quite turned out that way.
The current factors should give a good enough indication for those deciding which side of April to go I would have thought... and there is obviously the issue over whether an employer would consent to payment before age 60 in any case...