Ihr & lgps

Cobwebs

Hello again,

After over a year my application to take my pension under ill-health has been accepted. I'm now a little confused with my options.

I started paying into the pension in 1998 (roughly) and left my job in 2010. I am under 55 and have been given only two options, to take a lump sum and have my pension paid weekly, or, take a larger lump sum and have a smaller weekly amount. My pension is with East Sussex County Council, I have been on their website www. eastsussexpensionfund.org/ and I can't see any mention of things like buying an annuity. I spoke with them on the phone and they said that I can't take the whole amount and that the above options were the only ones available to me. Is this correct? it seems a bit restricted, is it because it's a LGPS pension?

Thanks in advance.

greenglide

The LGPS is a Defined Benefit pension scheme.

There is no "pot" there is no "annuity". It is designed to pay a pension, increasing with inflation, for the rest of your (any any partner's) life. Why would you want an annuity?

If you have a life expectancy of less than a year you can usually access the money tax free as a lump sum.

You "could" try moving the benefit to another provider as a "Cash Equivalent Transfer" but this can be complex and may not be a "good idea".

xylophone

You had a deferred Defined Benefits pension. http://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/workplace-pension-schemes/defined-benefit-final-salary-schemes

Had the pension come into payment at Scheme Pension Age, you would have been offered the same options.

Unless you have reason to believe that you have a short life expectancy, or an immediate need/use for the higher lump sum, the higher pension might be the better option- it will be index linked in payment.

http://www.lgps.org.uk/lge/core/page.do?pageId=101544

atush

And take the larger income if you have no great need for the larger lump sum

Cobwebs

That's simplified it, thankyou all.

FatherAbraham

greenglide wrote: »

The LGPS is a Defined Benefit pension scheme.

There is no "pot" there is no "annuity". It is designed to pay a pension, increasing with inflation, for the rest of your (any any partner's) life. Why would you want an annuity?

That's a funny way of looking at it.

The pension provided by the LGPS is an annuity -- an income paid to beneficiaries until death (or attainment of independent majority, in the case of dependent children).

Warmest regards,
FA