LPP/LPFA pension

Virtual_Chrissy_Wissy

Hi
in my previous career in academia I worked at a polytechnic in London for 3 years ending at the end of 1990 and paid into a LPFA "SERPS" type scheme, administered now by LPP. I have just turned 60 and, having entered the Civil Service in 2014, I fully intend to work until I am (at the time of writing) 67 due to the poor salary. LPP have informed me that I have to take the benefits at 60 as I joined the scheme before 1998. The current values are an annual pension of around £1,000 and a total retirement grant of around £3,000 (astronomical figures I know ). I am assuming I have to reply to them stating in the pension options form that I agree to take the annual pension now but no lump sum/grant at this stage or do all pension benefits come into play now? It appears that I also have to fill in their "member retirement form" in which I have to give them details of my other pensions that I would take on my retirement date as I have to estimate the % distribution of the lifetime allowance (even though this one makes up around 2%).

Many thanks in advance

xylophone

in my previous career in academia I worked at a polytechnic in London for 3 years ending at the end of 1990 and paid into a LPFA "SERPS" type scheme, administered now by LPP. You mean that you have a deferred Defined Benefit pension  which was part of the Local Government Pension Scheme? This Scheme was "contracted out" of SERPS.

Your Normal Pension Age in this Scheme was 60 and you have been advised that you are now eligible to take your benefits.

https://www.wmpfonline.com/deferredretirement

If you left the LGPS before 1 April 1998

Your deferred pension benefits are normally payable in full at your Normal Retirement Date (NRD). Your Normal Retirement Date is different to the Normal Pension Age for members who left on or after 1 April 1998. Your Normal Retirement Date is:

• age 60, if by that age you would have built up 25 years membership if you had remained in the scheme until then, or

• the date you would have achieved 25 years membership if you had remained in the scheme, if that date falls between your 60th and 65th birthday, or

• age 65 if, by that age, you would not have had built up 25 years membership if you had remained in the scheme until then.

  You do not have an option to defer payment of your benefits beyond your Normal Retirement Date i.e. you have to take payment of your benefits at that date if they are not already in payment.

https://www.wmpfonline.com/deferredretirement

 Presumably the £1000 a year is taxable income while the £3000 is a tax free Pension Commencement Lump Sum?

As you state that your salary is not generous you may find the small monthly pension a useful supplement but perhaps you could use it to make  additional voluntary contributions to your CS pension and benefit from the tax relief?

Have you obtained a state pension forecast?

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