Local Government Pension Scheme?

joe2cool

Hi Just received details of a pension which was with a local council the lump sum on retiring based on membership of 17/187 years & days & final pay of £17539.66 is £11518.51 & an annual pension of £3839.50 It was with a superannuation scheme for the first 13 yrs then other similar schemes for other years.
Just wondering if this was fair & if there was any way of checking? Seemingly I have 6mths if I have a complaint.

Appreciate any help

Thx

Ian_W

Using an old "steam calculator" it looks right to me for a 1/80th of pay per years service scheme which I assume the LGPS is/was. Workings out are:
17539 x 17.5 years/ 80 = £3836.66
Lump sum on an 80ths scheme is usually 3x annual pension, so
£3836.66 x 3 = £11509.97

Recent changes have allowed retirees in these schemes the option of surrendering some of the annual pension for a larger lump sum. Don't know if that applies to deferred pensions though - but if you would be interested in doing this it might be worth enquiring with the paying authority.

joe2cool

OK appreciate your help I didn't know you could do that.
I take you'll be watching the match

Ian_W

joe2cool wrote: »

OK appreciate your help I didn't know you could do that.
I take you'll be watching the match

Yup - and shouting at that useless winker Giggs if he picks him!
Although if he scores he'll be a "great player, good servant, blah, blah ..."
Who said footy fans are fickle!

joe2cool

looking forward to it :beer:

scrivette

Ian_W wrote: »

Using an old "steam calculator" it looks right to me for a 1/80th of pay per years service scheme which I assume the LGPS is/was. Workings out are:
17539 x 17.5 years/ 80 = £3836.66
Lump sum on an 80ths scheme is usually 3x annual pension, so
£3836.66 x 3 = £11509.97

Recent changes have allowed retirees in these schemes the option of surrendering some of the annual pension for a larger lump sum. Don't know if that applies to deferred pensions though - but if you would be interested in doing this it might be worth enquiring with the paying authority.

This is correct. You may exchange some of your pension to increase your lump sum at a rate of £1 annual pension for £12 lump sum. I have double checked the figures and they are correct.

Your deferred pension is increased each April in line with the Retail Price Index.

Hope this helps!

joe2cool

Appreciate your help, thx again guys....have a great W/E

treliac

scrivette wrote: »

This is correct. You may exchange some of your pension to increase your lump sum at a rate of £1 annual pension for £12 lump sum. I have double checked the figures and they are correct.

Pension benefits built up before 1st April 08 include an automatic lump sum of 3 times that pension.

Only benefits built up after 1st April 08 give an option to take a bigger pension or to give up some pension in favour of a lump sum.

joe2cool

So the figures are wrong it should be 3x ?

Ian_W

joe2cool wrote: »

So the figures are wrong it should be 3x ?

No joe, the figure is right because it IS 3x the pension.

£3,839.50 annual pension x 3 = £11,518.51 lump sum.

treliac was clarifying the point that your lump sum is a set figure and you can't increase it by surrendering some of your annual pension as this applied only to benefits accrued after April 08. Stands to reason as the paying authority would have informed had this option existed.

Converting any of your new found wealth to Rubles BTW? :cool:

CAE

I assume that the benefits referred to by the OP relate to membership in the LGPS prior to 1st April 2008. When those benefits come into payment there will be an option to give up part of the pension to provide a higher lump sum at the rate of £12 for each £ of pension given up. (subject to HMRC limits, which are currently set at a maximum of 25% of the value of your pension pot. The pension pot is basically 20 x pension plus lump sum, but the pension pot varies as pension is given up).

This option applies to all pension benefits, not just those accrued after 1st April 2008.

Hope this helps