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Local Governement Pension Scheme Advice

Alex_the_lad
Posts: 57 Forumite
Hi Guys! I wonder if anyone could offer me some advice on the followiing:
Baiscally until April 2006 I was a Local Goverment officer having worked for my local council for 6 years and paying into the LGPS all that time. I had to give up work in April 06 to become carer to my chronically ill father (and to deal with a health proplem of my own).
Essentially I want to cash in my pension as the cash is going to provide some much needed relief to some financial shortfall that me and also my father are facing (I know I should be looking long term - but it' a little difficult at the moment) I've been in touch with my local LGPS administrator and been told that the rules have changed and that I'm not able to cash my pension in.
Could anyone offer some clarification on what the rules are (the administrator wasn't helpful) and if there is anything I can do to cash in the pension contributions?
Many thanks in advance.
Baiscally until April 2006 I was a Local Goverment officer having worked for my local council for 6 years and paying into the LGPS all that time. I had to give up work in April 06 to become carer to my chronically ill father (and to deal with a health proplem of my own).
Essentially I want to cash in my pension as the cash is going to provide some much needed relief to some financial shortfall that me and also my father are facing (I know I should be looking long term - but it' a little difficult at the moment) I've been in touch with my local LGPS administrator and been told that the rules have changed and that I'm not able to cash my pension in.
Could anyone offer some clarification on what the rules are (the administrator wasn't helpful) and if there is anything I can do to cash in the pension contributions?
Many thanks in advance.
0
Comments
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Essentially I want to cash in my pension
You cannot.I've been in touch with my local LGPS administrator and been told that the rules have changed and that I'm not able to cash my pension in.
Rules have changed in some areas in April 06 but the ability to fully encash your pension hasn't changed. You couldn't do it before and you cannot do it now.
Only if you are aged 50 or over (or 55 from 2010) can you get access to some of the pension if the trustees allow it. If they do, then expect a hefty penalty. You wont have a lump sum from all of it either. Just an equivalent of 25% of the calculated value.
It wouldnt be fair on taxpayers to let you have the pension early.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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