LGPS Latest also need advice.

phil1959

In my previous posts I had applied for flexible retirement these were the figures I was given. Looking unlikely as employer (my department) does not want to pick up the capital cost , I have asked to be given an update today.

Option B Flexible Retirement figures
Pension £4811 ( includes a reduction of 13.89% for early payment)
lump sum £32076 ( includes a reduction of 2.43 for early payment)
this does not include the CARE scheme from 2014 this is not worth much

Pension have now given new figures if I leave employment end of the year these would include the CARE I believe.

Pension £4714.31 (Includes a reduction of 16.28% for early payment)
Lump Sum £31428.67 (Includes a reduction of 4.77% for early payment)

I may just leave, but there may still be a option of working just 2 days a week not on Flexible retirement just reducing my hours.

If I did this would I lose out on my pension I understand that my contribution to Care scheme would be lower, But would my pre 2014 LGPS scheme still be worked out at my full time final salary.

thank you.

maz

Silvertabby

I may just leave, but there may still be a option of working just 2 days a week not on Flexible retirement just reducing my hours.

If I did this would I lose out on my pension I understand that my contribution to Care scheme would be lower, But would my pre 2014 LGPS scheme still be worked out at my full time final salary. Posted by phil1959

Yes - your pre 2014 benefits will still be calculated on your whole time equivalent salary, so no worries there. Dropping your hours will mean that your CARE pension will grow more slowly but, of course, the longer you don't draw your pension, the lower the early retirement penalties will be.

phil1959

Thank you Silvertabby for your reply, after a discussion they would like me to have flexible retirement but it is the capital cost as they cant replace against my hours, they are going to challenge the capital cost after speaking to our finance department.

But if I just leave the difference in the figures are not that much different. Would there still be a capital cost and who would pick this up.

maz

Silvertabby

You're welcome.

I can't see how they can challenge the capital cost - it's part of the flexible retirement regulations.

If you left of your own accord, then there would be no capital costs as you would be taking a (further) reduced pension.