Payment of deferred local government pension and annual inflation increase.

traceyaj

I will be 60 on the 9th March 2024 and I am looking to take my deferred pension from around this date. I have the figures with the annual payments and the one off lump sum and just need to send back the forms. I understand that these pensions are increased from the first monday after the new tax year commences. I also understand that I would receive this increase on my monthly payment, likely to be 6.7% and this would be paid from the last day of April 2024. The pension administrators have advised me over the telephone that I would receive a 6.7% increase on the lump sum payment and this would be paid at the end of April 2024. I do not have anything in writing about  both the monthly and lump sum increases and therefore are a little bit wary of submitting the forms at this point. Does everything sound correct with this? I don't want to miss out on either increase.   i    

hyubh

traceyaj said:

I will be 60 on the 9th March 2024 and I am looking to take my deferred pension from around this date. I have the figures with the annual payments and the one off lump sum and just need to send back the forms. I understand that these pensions are increased from the first monday after the new tax year commences. I also understand that I would receive this increase on my monthly payment, likely to be 6.7% and this would be paid from the last day of April 2024. The pension administrators have advised me over the telephone that I would receive a 6.7% increase on the lump sum payment and this would be paid at the end of April 2024. I do not have anything in writing about  both the monthly and lump sum increases and therefore are a little bit wary of submitting the forms at this point. Does everything sound correct with this? I don't want to miss out on either increase.   i    

My responses in this previous thread may be relevant:

https://forums.moneysavingexpert.com/discussion/6433996/lgps-pension-question-administered-by-the-lpfa

From your wording it sounds like your LGPS administrator is hot on the 'second bites' thing I mentioned in my last response there. However it may be worth getting confirmation on that - specifically, if you drew your pension on your 60th birthday, (9th March) that you would get the pro-rata increase for that scheme year on your pre-2008, 3/80 lump sum later. (Just because 'second bites' should be done, doesn't mean it actually will without a prod.)

Turned_out_nice.

Like traceyaj that age has almost come to me.
Asked previously what to do about the lump sum, still confused about that as hearing and seeing a school mate who is only two days older (not good news) and another best mate (since school) who may have concerning news.

I now have the forms that all look fine but obviously do not take in to account this year's uplift.
My birthday is April 2nd and I will take the pension on the 9th. I know the pension will include the uplift as it will be after the uplift date but not sure about the lump sum.
Is this calculated from when I take the pension or when I am 60?

If anyone else will be affected by Alpha, the forms give an Option A (Classic etc) and Option B (includes Alpha).
In my case all figures correct and easy to decide which option.

Thanks in advance.

hyubh

Turned_out_nice. said:

Like traceyaj that age has almost come to me.
Asked previously what to do about the lump sum, still confused about that as hearing and seeing a school mate who is only two days older (not good news) and another best mate (since school) who may have concerning news.

I now have the forms that all look fine but obviously do not take in to account this year's uplift.
My birthday is April 2nd and I will take the pension on the 9th. I know the pension will include the uplift as it will be after the uplift date but not sure about the lump sum.
Is this calculated from when I take the pension or when I am 60?

If anyone else will be affected by Alpha, the forms give an Option A (Classic etc) and Option B (includes Alpha).
In my case all figures correct and easy to decide which option.

Thanks in advance.

While other things being equal I would assume Civil Service Classic lump sums work the same way, I'd suggest starting your own thread, given this one was about the LGPS.

PS - the pension would get the increase regardless of whether you took it before or after the increase date, given you're already deferred according to your previous thread. (And if you were still active, you wouldn't get it anyway given the pro-rata of the first increase due.) Of course, the increase would only apply from the increase date, however public sector pensions in payment are always a bit funky in April due to that date date never being on the first day of the month (+ GMP increase date potentially being slightly different again, for those with a GMP).