LGPS and flexible retirement

bripat

Any advice would be helpful as I've only just started to look at my LGPS. I'm 63 very soon in good health but did have a heart bypass 12 yrs ago ( so seeing anything after +75 not likely) been in LGPS for 27yrs so I guess I should be ok for the rule 85?. I also have a small avc with the Prudential of around £27k .I had a look online at my amount and it shows a pension of about 15k per yr and a £20k tax free lump sum. It also shows a pension of 10k per year but with a 68k lump sum I'm guessing that will be taxed? . Like I said I've only just started looking and i have filled in so forms for flexible retirement at work ( work should be okay about dropping to 3or 4 days a week) . 

Dazed_and_C0nfused

Why do you think a TFLS/PCLS would be taxed?

Silvertabby

Your R85 protections only apply to your pre 2008 benefits.  Your benefits from 1 April 2008 to 31 March 2014 will be reduced for payment before 65, and your benefits from 1 April 2014 will be reduced for payment before SPA.

QrizB

bripat said:

I had a look online at my amount and it shows a pension of about 15k per yr and a £20k tax free lump sum. It also shows a pension of 10k per year but with a 68k lump sum I'm guessing that will be taxed?

In both cases the lump sum is tax-free and the pension is taxable.

LGPS normally has a 12:1 commutation rate so giving up £5k pa of pension would buy an additional £60k of lump sum. I'm not sure why you are ony getting an extra £48k, unless you've been very approximate with your annual pension figures!

bripat

QrizB said:

bripat said:

I had a look online at my amount and it shows a pension of about 15k per yr and a £20k tax free lump sum. It also shows a pension of 10k per year but with a 68k lump sum I'm guessing that will be taxed?

In both cases the lump sum is tax-free and the pension is taxable.

LGPS normally has a 12:1 commutation rate so giving up £5k pa of pension would buy an additional £60k of lump sum. I'm not sure why you are ony getting an extra £48k, unless you've been very approximate with your annual pension figures!

QrizB said:

bripat said:

I had a look online at my amount and it shows a pension of about 15k per yr and a £20k tax free lump sum. It also shows a pension of 10k per year but with a 68k lump sum I'm guessing that will be taxed?

In both cases the lump sum is tax-free and the pension is taxable.

LGPS normally has a 12:1 commutation rate so giving up £5k pa of pension would buy an additional £60k of lump sum. I'm not sure why you are ony getting an extra £48k, unless you've been very approximate with your annual pension figures!

Yes I need to check again as I did about 3 dates to retire  Jan 2024  / 2025 and so I will double check the amounts as am away on holiday abroad at the moment so will check tomorrow.i am guessing that the figures the lg pension are giving me are with the rule 85 ?. As I said this is all a bit too much trying to get my head around it , I will have a meeting set up with east riding pension as soon as my work give the go-ahead to drop my hrs for the flexible retirement, thanks for helping as I'm a bit lost at the moment with all the numbers and rules.

bripat

Just checked my figures for my (retirement date) in march 2027 and this shows basic pension of £17,255 with a standard lump sum of £19,509 the maximum conversion is minimum pension at £12,138 and a maximum lump some of £ 80,920 but this is for when I should get my state pension.as I'm going to go down the flexible retirement in a few months do I put in that date to get my final figures?

Silvertabby

Yes - just put your flexi retirement date into the on-line calculator.  As you are over 60 your employer won't need to make a strain payment, which is sometimes a stumbling block with flexi retirement before 60 when the employee has R85 protections. 

Just a point, but what do you do?  I'm not saying that this will apply in your case, but let's just say that I've seen office worker flexi retirees drop their hours to 4 days but still be required to do the equivalent of 5 days work, because the alternatives are not acceptable.......  ie, give the extra work to other workers for no extra pay, or recruit someone to just work one day.