LGPS - BUYING EXTRA PENSION

Maria2512

Hi,

If i was to buy extra LGPS pension of 2k (A surplus after AVC TFLS) will the amount of £132.98 from the LGPS calculator be a monthly or annual amount? I am taking VR aged 59, will that make a difference to the figure?

Thanks

ArtyJ931

That would be the annual amount added to your pension.

ArtyJ931

Sorry ignore me - I got confused. I await the response from others who are less confused!

Maria2512

@ArtyJ931 Thanks, that makes sense

Kernowshep

Depending on what you mean (without checking the actual numbers / assuming your figures are correct).

I assume it'll either be the £2k p.a. reduced by about 20% (to £132.98 pcm) because you are taking it before the usual LGPS retirement age, or £2k buys you £132.98 p.a. (it won't be pcm, that would be too good to be true).

More info here: https://www.lgpsmember.org/your-pension/planning/taking-your-pension/

Redundancy or business efficiency

If you:

-lose your job because of redundancy or business efficiency

-have met the two-year qualifying period, and

-are age 55 or over

your LGPS benefits must be paid to you immediately.

If you leave after your Normal Pension Age, your benefits will be increased.

If you are under your Normal Pension Age, your main LGPS benefits will not be reduced for early payment. However, if you have bought any additional pension, this will be reduced because of early payment. This applies to any additional pension paid for by:

Additional Pension Contributions (APCs)

Shared Cost Additional Pension Contributions (SCAPCs), or

Additional Regular Contributions (ARCs).

The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028.

P.S. I'd absolutely love to be made redundant from the LGPS soon after the age of 55/57!

Silvertabby

Extra pension bought by AVC funds isn't reduced for early payment in the same way as main scheme benefits or APCs, but the factors are age related. ie, £XK AVCs will buy more additional pension at 66 than 59.