Pension if Lawfully Dismissed

Yagesmash678

Hi everyone, 

Just wondered if I'm dismissed lawfully from a local government job what would happen to my pension? Would I be allowed to take back all of my contributions?

Thanks

JoeCrystal

It depends; if you paid into your LGPS for over two years, it will be deferred until you reach the relevant pension age. If before, then you may get a refund (after paying taxes). However, due to how generous the employer's contributions are, the transfer value would be much higher but would need to be transferred into a different pension scheme.

However, your employer can confiscate your pension if you commit severe misconduct or a negligent act or omission. But as I understand it, the test is very high in that respect and is only used in exceptional circumstances.

Universidad

JoeCrystal said:

your employer can confiscate your pension if you commit severe misconduct or a negligent act or omission. But as I understand it, the test is very high in that respect and is only used in exceptional circumstances.

The test is indeed high, as set out in the LGPS regulations.

In brief, you'd have to have committed an offence that was directly relevant to your job, resulted in you leaving your job, and then the scheme admins would need to apply for a certificate from the secretary of state to certify that the offence was either gravely injurious to the State, or liable to lead to a serious loss of confidence in the public service.

This is to avoid embarassing situations like Lucy Letby getting her pick at the prison canteen for thirty years. It's not there to claw money back from people jumping turnstiles at the train station.

Silvertabby

Universidad said:

JoeCrystal said:

your employer can confiscate your pension if you commit severe misconduct or a negligent act or omission. But as I understand it, the test is very high in that respect and is only used in exceptional circumstances.

The test is indeed high, as set out in the LGPS regulations.

In brief, you'd have to have committed an offence that was directly relevant to your job, resulted in you leaving your job, and then the scheme admins would need to apply for a certificate from the secretary of state to certify that the offence was either gravely injurious to the State, or liable to lead to a serious loss of confidence in the public service.

This is to avoid embarassing situations like Lucy Letby getting her pick at the prison canteen for thirty years. It's not there to claw money back from people jumping turnstiles at the train station.

Never known it happen during my 20 years.

Not even the road guy who was convicted of theft of council materials after knocking on doors and saying 'I've got some left over tarmac - do your drive for cash in hand'.

His employer wanted to confiscate his pension rights under the 'serious loss of confidence in the public service' clause, but his offence wasn't deemed to be serious enough.

Andy_L

Universidad said:

JoeCrystal said:

your employer can confiscate your pension if you commit severe misconduct or a negligent act or omission. But as I understand it, the test is very high in that respect and is only used in exceptional circumstances.

The test is indeed high, as set out in the LGPS regulations.

In brief, you'd have to have committed an offence that was directly relevant to your job, resulted in you leaving your job, and then the scheme admins would need to apply for a certificate from the secretary of state to certify that the offence was either gravely injurious to the State, or liable to lead to a serious loss of confidence in the public service.

This is to avoid embarassing situations like Lucy Letby getting her pick at the prison canteen for thirty years. It's not there to claw money back from people jumping turnstiles at the train station.

The CS, police & military schemes also have the option to take it if you are sentenced for 2(?)+ years for an offence under the official secrets act.

Case law has also established that the part of the pension that represents the employees contributions & any contracted out NI cannot be taken

Universidad

Andy_L said:

The CS, police & military schemes also have the option to take it if you are sentenced for 2(?)+ years for an offence under the official secrets act.

It's 10+ years for the CS, can't speak for the others. And, as you say, this only applies to the Official Secrets Act.

I presume that's to avoid the embarassing situation where a convicted criminal is getting paid benefits by the very government they sold out to a hostile state.

The rules about other offences relevant to the job are similar to LGPS.