LGPS Flexible Retirement Pack

saucer

I have 2 issues related to this on behalf my wife. I suspect that it may need someone with specialist knowledge of the LGPS  (Silvertabby ) but any thoughts would be most welcome. 

I’ve had previous questions/threads as Mrs Saucer has moved towards LGPS flexible retirement. She now has the pack and is nearly ready to choose her final options for AVCs and annual pension. The AVCs are now all sorted (thanks for previous help). 

The issues are:
1. The early retirement reduction factors that are used seem to be wrong and based on the government factors that were in use pre 2023 (published 2019). Are we misunderstanding something or is this likely to be an error on the part of the scheme? It would seem to be a very significant thing to get wrong in calculating a final annual pension, hence my wondering if we are wrong. E.g. for 5 year reduction they seem to be using the old penalty of 22.2% reduction rather than 20.9% that is on the LGPS website. 
2. There is no option on the forms to just take the final salary/2008 part of the pension. It seems to imply it’s all or nothing for the the various components of the annual pension. This seems to contradict the guidance which says that the final salary part can be taken and the CARE bit left until later. Again are we/l misunderstanding?

Sorry for the long thread. My wife will call them on Monday but I thought it would be good to have any  thoughts from someone who understands this better than us. 

Many thanks 

saucer

Forgive me giving this another try. 

Main priority is to ask if anyone knows whether the LGPS pension needs to be taken all at the same time? Can the fully protected pre-2008 part be taken at 60 and the rest left until full retirement? Thanks

Sarahspangles

I know that it’s not possible outside a flexible retirement scenario. The board is busy because of the looming deadline for State Pension voluntary contributions so you may need to use the @ function to catch the attention of a poster like @Silvertabby

saucer

Thank you Sarah, very helpful. My wife is indeed doing flexible retirement . What has confused us is that the options on the pack don’t allow the option of taking only the unreduced pre 2008 component. 

Silvertabby

Sorry - been taking advantage of the good gardening weather!  

Yes, in the case of flexible retirement, the scheme rules allow the member to take unreduced pre 2008 benefits only, leaving post 2008 accruals to be taken when no/lesser reductions apply.  BUT.  Flexi retirement is very much an employer discretion, and I can't rule out the employer insisting that ALL benefits must be taken as at the date of the flexi retirement.  The only way to check this will be to ring them tomorrow, I'm afraid.

The early retirement factors do look wrong.  Did you account for only 2008 to 2014 (NRA 65) being reduced for 5 years, but 2014 to date of leaving (NRA SPA/67) being reduced by 7 years?

I'm really guessing here, I'm afraid, as I don't have access to your wife's employer discretions options, or the actual LGPS calculation - but my gut feeling is that someone has picked up the wrong/outdated letter on the system.  The only way to find out for sure (both questions) will be to ring them tomorrow.  

Hope you get this sorted out.

saucer

Thank you very much (again) Silvertabby. It may well be that WYPS insist on taking all the benefits at the same time. We did check regarding using post 2008 reductions based on 65 and 67. Your advice regarding employer discretion is particularly helpful