LGPS Options

Maria2512

Hi,

I am taking Voluntary redundancy on 30th June from my local authority.

When will the Pension section contact me or do I have to get in touch with them?

Anyone know what sort of options they will offer me? I have an AVC as well.

Thanks

Marcon

How old are you and do you have at least two years of LGPS membership?

Maria2512

age 59 l, 25 years service

daveyjp

These are questions best answered via the website of the LGPS you are a member of. I would however make contact to let them know. Have you had your pension figures?

AVCs can be dealt with in a number of different ways, but again you need to read the website as different rules apply to different types of AVCs based on providers, when contributions started etc. One issue is if you contribute to your AVC up until your last pay day you may have delay in doing anything until your AVC account is reconciled as it takes a while for money to be passed from employer to AVC provider to then be invested.

You should be able to see how long from your AVC account and compare the investment date with your pay day.

You then need to decide what to do with your AVC lump sum.

Maria2512

ok thanks for the input. I will contact my pension section and take it from there

Silvertabby

Step 1 will be for your employer to advise your LGPS that you are being made redundant from (date). They should also supply your estimated final pay figures. I would suggest that you check that that has been done first, as your LGPS can't do anything without it.

Once they have received your retirement date and final pay figures your LGPS will supply you with all your options, including your AVCs. If you need your benefits paying as soon as possible after your retirement date, you may wish to consider cancelling your AVC payments at least one month before your exit date. This will give your AVC provider time to confirm receipt of your last payment and to disinvest your funds. Note even if you opt to take all of your AVCs as tax free cash, your AVC provider won't make the payment direct to you - it will be paid to your LGPS, who will use the total fund in their calculations.

daveyjp

Silvertabby will advise, but if this feels to you like a rushed decision if can afford to defer your LGPS payout for a few months it may be worthwhile.

This will give you time to get all your ducks in a row, especially your AVC decision if you haven't yet thought about it. Its not a decision to be rushed and getting any advice can take time.

There is another wrinkle to consider. The local government pay increase for 2026/27 hasn't been agreed, the 3.3% offer has been rejected by unions, so negotiations continue. GMB are balloting members whether to accept or reject, other unions are likely to do similar.

.Any pay increase will therefore not be reflected in any figures you are given. As soon as the pay award is agreed you need to request an uplift to your pension payout.

Silvertabby

Redundancy pension payments can't be deferred - they have to be taken from the date of leaving.

SarahB16

https://forums.moneysavingexpert.com/discussion/comment/81999352#Comment_81999352

May I enquire please @Silvertabby in the situation where a person has annual leave remaining what date is calculated for the date of leaving and then redundancy? Let's say a person has 15 days' annual leave remaining so their last date is 3 weeks' earlier (due to the annual leave) for redundancy purposes would the date of leaving be c. 3 weeks' earlier?

Edited to tag Silvertabby

Lemon_dr1zzle

Your date of leaving is your actual last contracted day of employment.

Silvertabby

....and so will be after your 3 weeks contractural leave.