LGPS help !!!!

Fubbly

If you meet the rule of 85 at age 57, voluntarily retire and take your pension straight away, you will still benefit as the pre-2008 service pension will only be subject to a three year actuarial reduction (perhaps 15%) - much smaller than those not meeting the rule.

Happier_Me

Hi Fubbly, hopefully Silvertabby will be along to clarify, but I'm fairly certain the 85 rule does not apply at all until you reach 60, so the actuarial reduction on the pre 2008 pension will be greater than 3 years.

Johnnyboy11

Happier_Me wrote: »

Hi Fubbly, hopefully Silvertabby will be along to clarify, but I'm fairly certain the 85 rule does not apply at all until you reach 60, so the actuarial reduction on the pre 2008 pension will be greater than 3 years.

I'm with Fubbly on this one. My understanding is that R85 protections would still apply, but not to the pre-60 years, providing you meet R85 on or before the day you voluntarily retire early.

This is an important point for me, as I meet R85 at age 56 and plan to start a deferred LGPS then, hopefully with only a 4 year actuarial reduction.


There's a R85 calculator here (Strathclyde Pension Fund): https://www.spfo.org.uk/index.aspx?articleid=22388

stephen160

I am 55 would like to go part time for the last 5 years, what impact would that have on my pension. ie would they base my final earnings on half pay to calculated my final salary? thanks

Silvertabby

Guys - be careful re taking benefits before 60 and expecting R85. Employer discretion normally means that your employer (even if you have left) may have to throw a lump sum into the pension fund on your behalf. Please check before making any hard and fast decisions !

If you choose to voluntarily draw your pension on or after age 55 and before age 60 and you have rule of 85 protections, these will not automatically apply. Your employer can choose to allow the rule of 85 to apply. This is a discretion and you can ask your employer what their policy is on this matter. If you choose to voluntarily draw your pension on or after age 55 and before age 60 and your employer does not choose to allow the rule of 85 to apply, your benefits are reduced.

Silvertabby

“ Silvertabby I am just looking into "top-up LGPS" and this comes out as APC's - is this what you are referring to ? With a total value of £7026 per annum of pension ?
Originally posted by earlybirdsunshine

Are you looking at the APC calculator on your member website? If so, this only applies to buying APC before retirement, not from your AVC fund.

You can't DIY your possible pension from your AVC fund because it is calculated as more of a transfer in - and other factors apply.

Silvertabby

stephen160 wrote: »

I am 55 would like to go part time for the last 5 years, what impact would that have on my pension. ie would they base my final earnings on half pay to calculated my final salary? thanks

If you have any pre 2014 service, then the old rules final salary link will apply - and your pensionable pay for this purpose will be what you would have earned had you been full time.

Post 2014 (CARE), however, will use your actual salary.

Johnnyboy11

Silvertabby wrote: »

Guys - be careful re taking benefits before 60 and expecting R85. Employer discretion normally means that your employer (even if you have left) may have to throw a lump sum into the pension fund on your behalf. Please check before making any hard and fast decisions !

This seems at odds with the above calculator, which concludes:
yes no no (& yes to >85)

Benefits up to 31 March 2008 will be reduced for any period retirement is earlier than age 60.
Benefits after 31 March 2008 will be reduced if taken before the NPA that applies to them.

Silvertabby

Johnnyboy11 wrote: »

This seems at odds with the above calculator, which concludes:
yes no no (& yes to >85)

Benefits up to 31 March 2008 will be reduced for any period retirement is earlier than age 60.
Benefits after 31 March 2008 will be reduced if taken before the NPA that applies to them.

Scottish LGPS rules often differ from English / Welsh rules. This may be one of them - but I would still check !

When did you leave as, in view of your age, you will only have R85 protections in respect of your pre 2008 service. Worse possible case would be that you take a full 5 year hit from your pre 2008 benefits, and a 9 year hit on respect of your post 2008 service (I'm assuming that you don't have any post 2014 service?)

CampingCathy

Silvertabby wrote: »

Guys - be careful re taking benefits before 60 and expecting R85. Employer discretion normally means that your employer (even if you have left) may have to throw a lump sum into the pension fund on your behalf. Please check before making any hard and fast decisions !

FWIW my experience accords with SilverTabby's advice. I finished work at 59 to provide/ support end of life care for my mother. My LA would not agree to the R85 protection, and would have implemented a reduction.

So I lived on my savings until I was 60 and took my unreduced pension then