LGPS and State Pension

jamie7121

Hi all, i have a LGPS and am heading for State Pension at the end of the year. Can someone tell me how they affect each other? I cant get any relevant info on the SP site and would appreciate some advice on what happens when i draw my pension. Also on the SP forms i dont see any category on LGPS so do they automatically know about it or do i declare it? I am not well versed so have patience

xylophone

You will draw your state pension in the existing scheme so see

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

https://shareweb.kent.gov.uk/Documents/council-and-democracy/pensions/LGPS/guide-effect-state-pension-LGPS.pdf

Your own authority should produce a similar booklet?

jem16

jamie7121 wrote: »

Hi all, i have a LGPS and am heading for State Pension at the end of the year. Can someone tell me how they affect each other?

They don't affect each other in any way other than your taxable position and the way part of your pension increases each year.

I cant get any relevant info on the SP site and would appreciate some advice on what happens when i draw my pension.

The main thing you have to consider is tax and your tax code. The state pension is taxable but it is paid gross. Any tax due would be taken via your LGPS pension by altering the tax code. So it is important to advise HMRC that you will be receiving a state pension and how much it will be so that they can give you a correct tax code.

What will you get from each pension?

Also on the SP forms i dont see any category on LGPS so do they automatically know about it or do i declare it?

You don't need to mention any other pension as it's not relevant.

atush

The only affect they have on each other is tax (as you will be getting both at the same time, you will be over your PA). You may need to make sure that HMRC knows about your occupational scheme. Theya re taken separately, so you would not see a space on the form.

The LGPS being contracted out, will have lowered the s2p and serps part of your SP.

Do you have a forecast?

Do you have an existing AVC? If you had one before april last year, it can be taken as tax free cash, leaving your DB pension intact. If you dont, and you dont have an automatic LS, then I would suggest not taking a commuted LS.

What I would say, if lump sums and your DB pension and savings are enough to live on, you might want to defer your state pension a year or 2 for the 10% uplift each year will buy you?

jem16

atush wrote: »

Do you have an existing AVC? If you had one before april last year, it can be taken as tax free cash, leaving your DB pension intact. If you dont, and you dont have an automatic LS, then I would suggest not taking a commuted LS.

It sounds like the OP is already in receipt of the LGPS pension so the above would not apply here.

jamie7121

Thanks for the info. I have already been drawing on the LGPS as i was retired early through ill health. Also i have emigrated to NZ and will eventually transfer my SP to the NZ Superannuation if i can.

xylophone

You had not mentioned that you have retired to New Zealand - have you seen


https://www.gov.uk/state-pension-if-you-retire-abroad/how-to-claim

but in respect of the GMP when retiring abroad see p8 and 9

http://www.sypensions.org.uk/LinkClick.aspx?fileticket=2-y59rWXR7A%3D&tabid=299&language=en-GB

and read the booklet from your own old authority.




http://www.financialmigration.co.nz/uk-pensions-2/state-pensions-in-new-zealand/

jamie7121

I have been in NZ since 2007 and reach retirement age in December. I was unsure of procedure and how the LGPS would be affected if at all by the SP. I have been advised from here to apply for my SP and then apply for Superannuation here and the SP gets paid to the NZ gvt and then i get the Super. At least i think think thats right. I also cant remember exact dates of employment, some i can and some i cant, and a few periods of unemployment between jobs. Does that matter when i fill in the SP forms?

xylophone

You might wish to read the final link in my post above - it seems relevant to your situation.

You should also get hold of the booklet from your own old authority that corresponds to the one from South Yorks referenced above.

jamie7121

Yes i dont qualify for Super as i have not lived here for 10 years, only 8. So i have to apply for SP and take it from there thats what im unsure of.

xylophone

So i have to apply for SP and take it from there thats what im unsure of.

You might wish to apply for a state pension statement.

https://www.gov.uk/state-pension-statement

See also link above on retiring abroad.